Reliance set to start new 2.2 mil mt/year paraxylene plant in October 2016

MOSCOW (MRC) -- Reliance Industries Ltd. plans to start its new 2.2 million mt/year paraxylene (PX) plant at Jamnagar in October 2016, a source close to the company said late Wednesday, confirming that the project was on schedule as announced earlier this year, reported Apic-online.

RIL has been buying PX for its new PTA plants at Dahej, which have a combined capacity of 2.24 million mt/year, but with the new PX plant starting up, the company is likely to turn into an exporter.

It is expected to ship out up to 1 million mt/year of PX.

Both the new PTA plants at Dahej started producing in 2015

As MRC informed previously, in April 2015, RIL successfully put into operation two plants in Dahej, Gujarat, India. The first is a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. This is one of the largest bottle-grade PET resin capacity at a single location globally, and consolidates Reliance’s position as a leading PET resin producer with a global capacity of 1.15 MMTPA, the company said. PET resin from the new capacity would find application in packaging for water, carbonated soft drinks, pharmaceuticals and other food and beverages.

The second facility is a new purified terephthalic acid (PTA) plant that provides a capacity of 1,150 KTA. With the commissioning of this plant, also built with Invista technology, Reliance’s total PTA capacity will increase to 3.2 MMTPA, and its global capacity share will rise to 4%.

Paraxylene, the key feedstock for the PTA plant, is sourced from Reliance’s Jamnagar refinery. The PTA plant is also forward integrated with the 650 KTA PET plant in the same complex, lowering operating costs and capturing full chain margins.

Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India, and is one of the world's largest producers of polymers (polypropylene, polyethylene and polyvinyl chloride). Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail and telecommunications. Reliance is the second most profitable company in India, the second-largest publicly traded company in India by market capitalization and the second largest company in India as measured by revenue after the government-controlled Indian Oil Corporation.
MRC

MOSCOW (MRC) -- Oil and gas giant Saudi Aramco may reduce its stake in a proposed USD5.5 B refinery project in Indonesia, said Gulfnews.

Aramco has asked to cut its share of the project to upgrade a refinery in Cilacap in the province of Central Java to 30% from 45%, interim energy minister Luhut Pandjaitan told reporters. Such a move could be a setback to President Joko Widodo's plans to overhaul the creaking energy infrastructure in Southeast Asia's largest economy.

Pandjaitan added that state energy company Pertamina , which is jointly developing the facility, would likely absorb the difference. "Aramco's progress has been rather slow. We want to chase this, not just talk. We want something concrete now," he said.

Indonesia hopes to formalize a joint venture and other details of the partnership between Aramco and Pertamina during a visit from Saudi King Salman bin Abdulaziz to the archipelago in October. "We will finalize this as best we can first, and we hope this will have a positive impact for everyone, primarily the Indonesian public," Pertamina spokeswoman Wianda Pusponegoro told Reuters, referring to the partnership with Aramco.

However, Pusponegoro noted that the company had not received official notification of any Aramco proposal to reduce its proposed stake. Forecasting growing crude oil demand, Aramco has been looking to invest further in Indonesia's refining and petrochemicals sector, part of broader expansion plans in China, India, Vietnam and the US.

The Cilacap upgrade is expected to increase the refinery's crude processing capacity to 370 Mbpd from 348 Mbpd at present, and is targeted for completion by the end of 2022.

As MRC informed earlier, Saudi Aramco announced that its downstream investments would exceed USD100 billion over the next decade, as global demand for oil rises by a quarter in the next 25 years.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Phillips 66 shut a gasoline-making reformer unit at its 260 Mbpd Westlake, Louisiana refinery earlier this month, and advanced planned work on the unit, said Reuters, citing two sources familiar with the work.

The unit is slated to return to return to service in mid-September, the sources said. The reformer has the ability to process 34 Mbpd of crude.

The plant is still on schedule to shut a coker unit in March, they said.

As MRC informed before, Phillips 66 and Chevron Phillips Chemical are teaming up with the Sweeny Independent School District in Texas to help fund the creation of a petrochemical academy.

Phillips 66 is an American multinational energy company headquartered in Westchase, Houston, Texas. It debuted as an independent energy company when ConocoPhillips spun off its downstream assets and midstream assets. Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals.
MRC

MOSCOW (MRC) -- Berry Plastics Group Inc said it would buy AEP Industries Inc (AEPI.O), which makes stretch wraps and can liners, in a deal valued at USD765 million, including debt, to expand its presence in North America, said Reuters.

Based on Berry Plastics' close on Aug. 23, AEP shareholders will receive either USD110 in cash or 2.5011 shares of Berry Plastics for each AEP share. The offer represents a premium of 42.9 percent to AEP's Wednesday close.

Upon closing of the stock and cash deal, AEP shareholders will own about 5 percent of Berry Plastics on a fully diluted basis, the plastic packaging products maker said on Thursday. AEP's long-term debt stood at USD209.7 million as of April 30.

"AEP, together with Berry's Engineered Materials Division, creates an impressive packaging film producer serving the North American market," Berry Plastics Chief Executive Jon Rich said. Berry Plastics, which makes duct tapes, spray adhesives and food wrap films, said it will fund the cash component of the deal with existing cash and a new term loan.

In July, Berry Plastics offered to buy Avintiv Inc, which makes materials used in products ranging from diapers to disinfectant wipes, for about $2.45 billion in cash from Blackstone Group LP.

Montvale, New Jersey-based AEP's flexible plastic packaging products are used in the consumer, industrial and agricultural markets. The deal, which is expected to be completed in December, will add to Berry Plastics' adjusted net income and adjusted free cash flow.

As MRC informed earlier, Berry Plastics Group Inc. is closing a consumer packaging manufacturing site in Dunkirk, N.Y., a move that will put more than 50 people out of work in the coming months.

Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered specialty materials delivering high-quality customized solutions to our customers. The Company’s world headquarters is located in Evansville, Indiana, with pro forma net sales of USD6.7 billion in fiscal 2015 and is listed on the New York Stock Exchange under the ticker symbol BERY.
MRC

MOSCOW (MRC) -- Technip announced that it has signed an exclusive cooperation agreement with BTG BioLiquids B.V. (BTL) to provide EPC(1) services for its modular pyrolysis plants, said the company on its site.

The plants will be based on BTL’s Fast Pyrolysis Oil(2) (FPO) technology which converts biomass to oil through a rapid pyrolysis process.

The agreement combines Technip’s global strength in technology, engineering, procurement and construction with BTL’s experience in the design and commercial operation of one of the world’s first FPO production facilities. Using clean wood as feedstock, the facility has been in operation since 2015 in The Netherlands. Uses of FPO include heat, power, transport fuels and potential bio-based chemicals.

Technip and BTL will also collaborate in the development of commercial uses for FPO as renewable fuel and petrochemical feedstock.

The agreement will be managed by Technip’s operating center in Zoetermeer, The Netherlands, which has significant technology and EPC experience. The center is part of Technip Stone & Webster Process Technology, which looks after Technip’s expanding portfolio of onshore process technologies in petrochemicals, refining, hydrogen and syngas, polymers and gas monetization.

Stan Knez, President, Technip Stone & Webster Process Technology, stated: "This partnership with BTL will enable Technip to take our development further in a market which is of strategic importance to many of our clients. It will also allow us to better respond to future “green” projects, linking biomass with the petrochemical and refining industries."

Gerhard Muggen, Managing Director of BTL, stated: "This agreement will allow our technology company to launch its global roll-out. The strong combination of Technip and BTL will now start to offer turnkey pyrolysis plants and services to industrial companies seeking to develop new bio-sourced applications and anticipate the transition to a bio-based economy."

Minister Henk Kamp of Economic Affairs, The Netherlands, added: "This partnership is another step towards a more sustainable refinery sector. I encourage businesses to increase the share of renewables in their energy consumption. That is why the TKI(3) for chemicals has been involved in the preparation and realisation of this technology that uses biomass as a sustainable resource. The collaboration between Technip and BTL will allow this promising technology to be developed further on a global scale."

As MRC informed earlier, Technip posted a 9.2 percent lower second-quarter revenue due to the oil and gas industry downturn. Technip’s adjusted revenue stood at 2.81 billion euros (USD3.12 billion) in the second quarter of 2016, as compared to 3.1 billion euros in the same period the year before.

MRC