Azerbaijan invites German companies to project of high-density polyethylene plant for SOCAR Polymer

MOSCOW (MRC) -- The State Oil Company of Azerbaijan (SOCAR) is selecting the general contractor for the construction of a high-density polyethylene plant for SOCAR Polymer and invites German companies to take part in relevant tender procedures, said Fineko.abc.

At the Azerbaijani-German Business Forum in Baku SOCAR representative informed that the EPC contract (engineering, procurement & construction) on the SOCAR Polymer polypropylene plant is being fulfilled by Maire Tecnimont (Italy). As for the second plant, designed for production of high-density polyethylene, the EPC contract has not been awarded yet and the selection of candidates is underway.

The construction of the high density polyethylene plant is scheduled to start in 2016 and be completed by mid-2018.

Speech is of the enterprise with annual capacity of 120,000 tons of high density polyethylene.

SOCAR chemical sub-company Azerkimya’s representative Fazil Yusif has stated that construction of both plants within the framework of SOCAR Polymer will enable to increase the export potential of Azerbaijan.

SOCAR raised a loan from Russia’s Gazprombank in the amount of USD489 million for financing the construction of SOCAR Polymer plants for production of polypropylene and high density polyethylene.

The loan financing is given for 10 years and will cover 60% of the total project cost, and the remaining 40% will be financed by the SOCAR Polymer shareholders. The commissioning of the polypropylene plant with an annual capacity of 180,000 tons is scheduled for the end of 2017.

The polypropylene plant will be put into operation in 2018. Out of the total production of these enterprises, 30-40% will be directed to the domestic market (full coverage of needs), the rest will be exported.

As MRC informed earlier, SOCAR subsidiary Azerikimya Production Union (PU) has entered two units into operation at its ethylene and polyethylene (PE) plant in Sumgait, north of Baku. The company commissioned a 87,600-tonne/year (tpy) unit for the desulfurization of liquefied gas and a 120,000-tpy installation for the hydrogenation of butylene-butadiene fractions.

SOCAR Polymer was established by the State Oil Company of Azerbaijan, the equity capital of which is $100 million. Since late 2013 SOCAR has owned 51% shares of this company, while 49% are owned by Pasha Holding, Gilan Holding and Azersun Holding.
MRC

Tongsuh Petrochemical restarted ACN plant in South Korea

MOSCOW (MRC) -- Tongsuh Petrochemical has brought on-stream its No.3 acrylonitrile (ACN) plant following a maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the company has resumed operations at its plant during last week. The plant was shut for maintenance in mid-October 2015.

Located in Ulsan, South Korea, the plant has a production capacity of 245,000 mt/year.

As MRC informed before, Tongsuh Petrochemical began commercial production of a new line at its ACN plant in January 2013. Tongsuh added line No.4 at its Ulsan based ACN plant, which will have a production capacity of 245,000 tons per year. Tongsuh had an ACN capacity of 315,000 tons per annum and with the addition of the new ACN line in 2013 reached 560,000 tons per year.

Tongsuh Petrochemical Corp., Ltd. manufactures acrylonitrile, ethylene diamine tetraacetic acid, and ammonium sulfate. The company also offers related derivatives and co-products, such as sodium cyanide, EDTA, acrylamide, and acetonitrile. The company was founded in 1969 and is based in Ulsan, South Korea. Tongsuh Petrochemical Corp., Ltd. operates as a subsidiary of Asahi Kasei Corporation.
MRC

Genomatica and Braskem produce single step butadiene through biological process

MOSCOW (MRC) -- A group of scientists at Genomatica and Braskem have announced that they have produced butadiene through a direct, bio-based process in a lab, said Chemicals-technology.

The companies have been producing butadiene in lab scale since June 2015 at Genomatica's innovation centre in San Diego and Campinas. In 2013, both Genomatica and Braskem joined to develop a commercial process for on-purpose production of butadiene from renewable feedstocks.

During the course of their programme, the team at Genomatica and Braskem has successfully developed a microorganism that consumes sugar and converts it to butadiene at lab scale, in two-litre fermenters. Genomatica has been able to recognise 60 possible biological pathways with which a microorganism can make butadiene, theoretically.

"Our joint team has made good use of Genomatica's integrated bioengineering platform to quickly hit a key milestone." The programme further helps to boost intellectual knowledge of Braskem and Genomatica.

Genomatica R&D senior vice-president Nelson Barton said: "Our joint team has made good use of Genomatica's integrated bioengineering platform, including its computational techniques and high-throughput cloning and screening, to quickly hit a key milestone.

"Our 'rational' approach to strain design should enable faster, more predictable scale-up and better economics as we advance the programme."

Butadiene is a used in the production of rubber for tires, electrical appliances, footwear, plastics, asphalt, building materials, and latex and a renewable butadiene expects to lower carbon footprint in the industrial output.

In July, Genomatica partnered with American company Cargill to develop renewable chemicals for industrial applications.

With the partnership, both the companies are expected to produce a cost-effective source of carbohydrate feedstocks, as well as co-location support services to chemical producers, distributors and users.

As MRC informed earlier, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

Westlake Chemical Corporation announces quarterly dividend

MOSCOW (MRC) -- -- The Board of Directors of Westlake Chemical Corporation declared on November 20, 2015, a dividend of USD0.1815 per share. The dividend will be payable on December 18, 2015, to stockholders of record on December 4, 2015, said the company on its site.

This is the 45th successive quarterly dividend that Westlake has declared since completing its initial public offering in August 2004.

As MRC informed earlier, Technip has been awarded a contract by Westlake Chemical to provide detailed engineering and procurement services to expand the recovery section of Westlake’s Petro 1 ethylene plant at its complex in Sulphur, Louisiana.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC suspension and specialty resins and PVC building products including pipe and specialty components, windows, fence, deck and film.
MRC

Russia downplays threat of Saudi crude sales to Eastern Europe’s refiners

MOSCOW (MRC) -- Russian officials said Saudi Arabia won't be able to maintain the discounted crude prices offered to refiners in Eastern Europe as the nation toned down its criticism of oil shipments from the biggest OPEC producer, as per Hydrocarbonprocessing.

Saudi Arabia has priced its oil at a six-year low for Europe after starting to ship crude to traditional Russian markets, such as Poland.

The discounted crude "is a temporary situation and it won't work for a long period," Nikolay Tokarev, CEO of Russia’s state-run oil pipeline operator, Transneft, said in an interview on Friday.

Oil executives in Russia, which ships almost 70% of its crude to Europe, last month criticized Saudi Arabia’s strategy even before it dropped its December price for the northwest of the continent to lowest since February 2009. Still, while the Russian central bank warned last week that increased competition from the Middle East may create economic risks, Energy Minister Alexander Novak was more sanguine on Friday.

"If more or less one oil cargo is added or drops off, there’s no need to turn it into a sensation," Novak told reporters in Moscow.

We remind that, as MRC wrote previously, in March 2015, US oil and gas major ExxonMobil asked the Russian government to reimburse taxes worth "several billion roubles" it says it overpaid on a project in the far east of Russia.
MRC