Braskem Idesa inaugurates Ethylene XXI complex, targeting Mexican market

MOSCOW (MRC) -- Braskem Idesa, the 75-25 joint venture of Braskem and Idesa (Mexico City), have inaugurated the Ethylene XXI complex at Nanchital, part of the Coatzacoalcos petrochemical hub in the southern Mexican state of Veracruz, said Chemweek.

The USD5.2-billion dollar project took some five years to complete. The 1.05-million m.t./year cracker is already feeding the complex’s two high-density polyethylene (HDPE) plants, which have capacities of 400,000 m.t./year and 350,000 m.t./year, each unit based on Ineos technology. The third PE unit has capacity for 300,000 m.t./year of low-density polyethylene (LDPE), using LyondellBasell technology, and is in the process of ramping up.

"The HDPE plants were started up in April, with the LDPE started up in June, and while they are not currently running at 100% they have been tested and they can run at 100% and over," Grupo Idesa CEO Jose Luis Uriegas.

The jv expects its 2016 PE production to be about 50-60% of the the total capacity.

A 20-year agreement with Petroleos Mexicanos (Pemex) covers feedstock supplies to the complex’s ethane cracker via a 130-kilometer pipeline. The long-term supply agreement gives priority to, and guarantees the complex access to the feedstock it requires to produce ethylene and polyethylene (PE). The site has about 3,500 m.t. of ethane storage capacity.

About USD6 million has been invested in the complex’s logistics platform. The domestic market can be served by train or truck to small and medium-size clients. Exports to the United States can take several routes: To the West Coast by train via Nuevo Laredo or Piedras Negras, and to destinations on the East Coast by boat. The presence of standardized train tracks throughout North America make rail a convenient transport method, and product can be delivered to clients throughout North America, Braskem Idesa says. Meanwhile, exports to the rest of the world can be shipped out via the Port of Veracruz in containers. Access to the Pacific export routes can be made via the Port of Salinas Cruz.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).

MRC

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into Ukraine grew in the first five months of 2016 by 38% year on year, totalling 48,400 tonnes. Propylene copolymers accounted for the greatest increase in supply, according to MRC DataScope report.

May PP imports into Ukraine decreased to 9,100 tonnes from 12,000 tonnes a month earlier, propylene homopolymer (homopolymer PP) accounted for the largest fall in shipments. Overall imports of propylene polymers grew to 48,400 tonnes in January-May 2016 from 35,200 tonnes a year earlier. Statistical propylene copolymer (PP-random) accounted for the greatest increase in imports, thus, local pipes producers raised their consumption by several-fold.

The supply structure by PP grades looked the following way over the stated period.

Last month's imports of homopolymer PP to the Ukrainian market dropped to 6,800 tonnes, whereas this figure was 9,300 tonnes a month earlier. Local companies reduced their purchasing of injection moulding PP by several times. Overall imports of homopolymer PP rose to 37,300 tonnes over the first five months of the year, compared to 25,700 tonnes a year earlier. This significant increase in imports was not supported by demand, there has been oversupply in the market for a long time, which put a major pressure on prices.

May imports of the propylene block copolymers (PP-block) were slightly over 900 tonnes, compared to 1,100 tonnes a month earlier, Ukrainian companies reduced their purchasing of pipe grade PP-block. 4,600 tonnes of PP-block were imported from January to May 2016, whereas this figure was 3,200 tonnes a year earlier.

Last month's imports of PP-random to Ukraine dropped to 1,100 tonnes from 1,500 tonnes in April, local converters reduced their purchasing of film grade PP in foreign markets. Overall imports of PP-random exceeded 5,600 tonnes in January-May 2016, whereas this figure was 3,600 tonnes a year earlier .

Overall imports of other propylene copolymers totalled 819 tonnes over the stated period.

MRC

MOSCOW (MRC) - Production of polyethylene (PE) in Russia increased to 694,300 tonne in first five months of this year, up 4% year on year, compared to the same period of 2015. The greatest increase in supply occurred for high density polyethylene (HDPE), according to MRC ScanPlast.

May PE production in Russia exceeded 137,600 tonnes, while in April it was about 128,000 tonnes. The increase in production mainly resulted from the restart of low density polyethylene (LDPE) production at Kazanorgsintez after scheduled maintenance works. Total PE production in Russia reached 694,300 tonnes in January-May 2016 against 666,000 tonnes year on year. Russia's production of high density polyethylene (HDPE) increased significantly over the reported period, while low density polyethylene (LDPE) output declined.

Structure of PE production over the reported period looked as follows.

Russian HDPE producers practically kept the April level of capacity utilisation in May, having produced 87,300 tonnes. Total HDPE production in the country increased to about 418,000 tonnes in January-May 2016, up 12% year on year.

May output of LDPE decreased to 50,300 tonnes in the five months of the year compared with 40,800 tonnes in April because of the restart of Kazanorgsintez after scheduled maintenances. Total LDPE production in Russia was 253,600 tonnes in January-May 2016 against 280,000 tonnes year on year. One of the main reasons for the reduction in output was the forced shutdown of Angarsk ZP since mid-February because of equipment failure at ethylene production.
Production of linear low density polyethylene (LLDPE) reached 22,600 tonnes in January - May of this year compared with 13,600 tonnes year on year.


MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) has restarted its linear low density polyethylene (LLDPE) plant, as per Apic-online.

A Polymerupdate source in the Thailand informed that the company has resumed operations at the plant last weekend. The plant was taken off-stream on June 1, 2016 owing to shortage of feedstock ethylene.

Located at Map Ta Phut in Thailand, the LLDPE plant has a production capacity of 400,000 mt/year.

As MRC informed before, PTTGC had already shut down its LLDPE plant in Thailand for a turnaround from early March to 3 April 2016.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Cryogenmash company, included in Gazprombank Group, will develop and deliver a nitrogen unit for the construction project of SOCAR Polymer company’s plants for the production of polypropylene and high density polyethylene, Gazprombank said June 17.

The corresponding agreement was signed by Rovnag Abdullayev, president of the Azerbaijani State Oil Company (SOCAR) and Andrey Akimov, chairman of board of Gazprombank as part of the St. Petersburg International Economic Forum.

The unit will meet SOCAR Polymer’s needs for high-purity nitrogen gas during the project implementation. "Signing of this agreement is an example of strategic partnership and cooperation between Gazprombank Group and SOCAR Group," Abdullayev said.

According to the message, the unit is based on the most advanced technical and engineering solutions in the industry, which are reducing the capital costs and ensuring more cost-effective modes of operation compared to the equipment of the leading foreign companies.

SOCAR Polymer project is implemented in the Sumgayit Chemical Industrial Park. The polypropylene production plant will be commissioned in the first quarter of 2018, and the polyethylene plant – in the third quarter of 2018. At the initial stage, the plants will produce 120,000 tons of polyethylene and 180,000 tons of polypropylene and the total capacity may reach 570,000 tons by 2021.

Thirty percent of the plant’s output will be sent to domestic market, while 70 percent – for export to Turkey, Europe and CIS countries, according to project estimates.

As MRC MRC informed earlier, SOCAR signed an agreement with Russiaп Gazprombank on providing a loan facility for construction of SOCAR Polymer polypropylene and high-density polyethylene plants in Azerbaijan. The investment committee of Gazprombank has approved a USD489 loan facility for SOCAR Polymer with 10-year term.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.
MRC