Fluor completes citral facility for Basf Petronas Chemicals

MOSCOW (MRC) -- Fluor Corp. has achieved mechanical completion on a citral facility and associated infrastructure for BASF Petronas Chemicals in Kuantan, Malaysia, said Fluor on its site.

As part of the Integrated Aroma Ingredients Complex, Fluor performed front-end engineering and design, engineering, procurement and construction management on the citral facility and its associated infrastructure. The facility will produce citral, among other aroma ingredients, to meet the growing demand for citral-based products in the flavor and fragrance industry. Fluor is also executing the engineering, procurement and construction management for a downstream L-menthol unit. Aroma_Complex_approvedRamp-up of the downstream L-menthol unit is expected in 2017.

During construction, Fluor managed a workforce of nearly 2,200 craft workers, comprised of 10 different nationalities. With the concurrent construction of the citral facility and menthol unit, the project achieved an accelerated 24-month construction schedule and navigated multiple critical process tower lifts in a compact working environment.

The meticulous preparation of all parties, including Fluor and BASF Petronas Chemicals, ensured the flawless delivery of the T-5000 tower (photo) to the site.

Implementing a strong health, safety and environment culture at the site, the projects achieved more than 8 million work hours without a lost-time incident and received the Malaysian Occupational Safety and Health Practitioner’s Association Gold Award for excellence in occupational safety and health.

BASF Petronas Chemicals is a Malaysian-based joint venture between BASF and Petronas Chemicals Group.

As MRC informed earlier, BASF intends to acquire Henkel professional European Building Material Business.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of more than EUR70 billion in 2015.
MRC

MOSCOW (MRC) -- The global biobased construction polymers market size was USD11.87 bln in 2015. Rising concern towards petrochemical products coupled with increasing adoption of renewable products is expected to propel the market for biobased construction polymers until 2024, as per Plastemart with reference to Grand View Research.

A major source of green-house gas emissions is associated with fossil fuel usage across various industrial operating facilities. Growing concern towards carbon dioxide footprint in large scale manufacturing units has urged the industry to shift towards biobased polymers.

Increasing R&D to develop eco-friendly renewable products has increased the use of bio based polymers in the construction industry. High production costs and less developed global supply value chain are expected to hinder bio based construction polymers. Global bio based product demand is not entirely capitalized to realize the economies of scale and market is less developed to compete with well-established petroleum based product.

A recent breakthrough in technology has shifted focus towards manufacturing bio based polymers from bacterial fermentation. The technology involves synthesizing monomers from renewable sources that include fatty acids, cellulose, and starch.

The favorable regulatory scenario in various countries and initiatives by regional governments in support of biopolymers are expected to have a positive impact on market growth over the forecast period.

Government regulations such as Lead Market Initiative (UK) and BioPreferred (U.S.) favor the use of bio based raw material for polymer production. Major polymer manufacturers are shifting their focus towards developing sustainable technologies and are collaborating with various individual bi based technology firms in order to manufacture bio based polymers.

Polyurethane dominated the global demand and accounted for over 26% of the total volume in 2015. The product segment is expected to grow at a CAGR of 10.2% over the next eight years. Application of biobased polyurethanes as insulation in the building and construction industry is a significant opportunity for the market particularly in the US and Europe.

Bio based epoxies market is estimated to witness moderate growth over the next few years on account of its wide range of applications in the construction industry such as in paints & coatings, adhesives, and in wood & concrete repair.

Polylactic acid (PLA) and Polyhydroxyalkanoates (PHA) are expected to witness the fastest growth in the bio based polymer industry owing to increasing use and numerous advantages over other products. PLA is a bio-derived monomer used as a suspending agent, foam, pore-forming agent, binder and coating adhesive in the construction industry.

PHA produced from microorganism is used as a coating, viscosifier, and pore-forming agent. The other bio based polymers produced worldwide include Polytrimethylene terephthalate (PTT) and Polybutylene succinate (PBS).

Major applications include pipe and insulation. The pipe was the largest application segment and accounted for over 37% of the global demand in 2015. The construction industry has been a major consumer of plastics with their applications ranging mainly from pipe fittings & insulation.

Use of plastics compounding is also increasing in pipes and fittings segments supported by their reduced cost structures, long life span, corrosion resistance and light weight.Typical applications where bio based construction polymers are used include window and door profiles, pipes and guttering, cement, flooring, glazing, sealants and adhesives, insulation, building panels and roofing.

The growing trend of using bio based polymer in profiles used in bridge engineering for all composite structures is anticipated to propel the market growth over the forecast period. Profile application is expected to witness the fastest growth at a CAGR of 10.6% over the next eight years. Other construction applications include bridge bearings, FRP bridge section, glazing sealant, concrete molds, concrete jointing, cladding panel, and floorings anchor fixings.

The major demand is expected from emerging markets of Asia Pacific and South America. Countries such as China, India and Brazil are anticipated to witness high growth owing to increasing infrastructure activities and favorable bio
based product political framework.

Moderate growth is expected from matured markets such as North America and Europe. Countries such as U.S. and U.K. are expected to lose their market share to Asia Pacific countries owing to less infrastructural activities taking place in these regions.

Major companies include SK Chemicals, BASF SE, Evonik Industries, Mitsubishi Gas Chemical, Nature Works LLC, Bio-On, Toyobo, DuPont de Nemours, Teijin Plastics and PolyOne. Other players include Tate & Lyle, Hiusan Biosciences, Kaneka TEPHA, Synbra and Metabolix.

As MRC informed before, the bio-based polyethylene (PE) market is estimated to grow to USD751.9 mln by 2019 at a CAGR 12.3%, as per MicroMarket Monitor.
MRC

MOSCOW (MRC) -- Ineos UK E&P Holdings has entered into its first, five-year, reserve-based lending facility (RBL Facility) of GBP220 million (USD294M), as per OffshoreEnergyToday.

Ineos said on Wednesday that the facility has been secured on attractive terms on the back of the recently-acquired assets from DEA UK and Fairfield Energy.

To remind, Ineos bought interests in the Breagh and Clipper South gas fields in the Southern North Sea in October last year from a UK subsidiary of DEA Deutsche Erdoel AG. Ineos also acquired additional 25% interest in the Clipper South field from Fairfield, also in October 2015.

The company explained that the facility will enable repayment of part of its equity financing for the acquisitions of DEA UK and Fairfield Energy and will facilitate future development expenditures.

Geir Tuft, Ineos Breagh CEO, said: "Ineos is a new entrant to the North Sea and this first step into the oil and gas backed lending market demonstrates support for both our strategic vision and our ambitious plans for the future."

"This first RBL facility is a landmark for INEOS and validates the quality of the assets we acquired in 2015. It is seen as a catalyst to develop future projects and continue to pursue opportunities in the North Sea."

The facility has been arranged by HSBC and Lloyds with participation from Barclays, Deutsche Bank, Goldman Sachs and Bank of Montreal.

We remind that, as MRC informed before, in October 2014, Ineos Upstream Limited signed an agreement with Reach Coal Seam Gas Limited (Reach CSG) to acquire an 80% interest in Petroleum Exploration and Development Licence (PEDL) 162, in the Midland Valley of Scotland. This licence area of 400 km2 is next to PEDL 133, in which Ineos already owns a 51% stake of the shale layer. As part of the deal, Ineos will be the operator of the licence, and will fund the initial appraisal activity (consisting of 2 vertical science wells and 100 km2 of 3D seismic).

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Global LCP demand was 46.1 kilo tons in 2013 and is expected to reach 81.7 kilo tons by 2020, growing at a CAGR of 8.6% from 2014 to 2020, as per Plastemart with reference to Hexa Reports.

Global liquid crystal polymers (LCP) market is expected to reach USD 1.23 billion by 2020. Shift in trend towards miniaturization of electrical components such as surface mount device and connectors is expected to drive global LCP market.

Growing demand for lightweight, high performance materials from automotive industry in order to improve fuel efficiency is also expected to have a positive influence on the market growth. Lower welding strength and warpage associated with LCP is expected to remain a key challenge for market participants.

Electrical & electronics emerged as the leading application segment and accounted for 81.5% of total market volume in 2013. Growing engineering resins demand for manufacturing ultra-thin electrical components is expected to remain a key driving factor for this segment.

LCP is favored over other engineering resins such as polyphenylene sulfide (PPS), nylon 46 and polyphthalamide (PPA) which has further propelled market growth. Electrical & electronics is also expected to witness the highest growth rate of 8.9% over the forecast period. LCP demand from automotive industry is expected to grow at an estimated CAGR of 7.3% from 2014 to 2020. Shift in trend towards adoption of lightweight, high performance materials from automotive industry particularly in the U.S. and Europe is expected to drive this segment.

As MRC wrote before, LCP's market is projected to register a CAGR of 6% between 2015 and 2020 to reach USD1.2 bln by 2020, as per ReportLinker. LCPs are chemically aromatic co-polyesters. But they differ from the engineering plastics PET and PBT most notably in their molecular structure. They are known for their high temperature resistance, excellent mechanical properties, good solvent resistance and low water absorption compared to other heat-resistant polymers. They have good electrical insulation properties, low flammability and a low coefficient of thermal expansion.
MRC

MOSCOW (MRC) -- South Korea-based Daelim Industrial is likely to shut its high density polyethylene (HDPE) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in November 2016 and it is likely to remain off-stream for around 15-20 days. The exact date of the shutdown could not be confirmed.

Located in Yeosu, South Korea, the plant has a production capacity of 270,000 mt/year.

As MRC informed previously, South Korea-based Daelim's petrochemical business division is planning to invest KRW74bn (USD67m) to expand its highly reactive polybutene plant located at Yeosu National Industrial Complex. The investment will help the company expand annual output of its existing Yeosu plant from 65,000t to 100,000t by November 2016. Following expansion, the company will be able to produce 185,000t of polybutene per year, including the polybutene plant's annual production output of 85,000t of general-purpose polybutene.

Daelim Industrial was established in 1939, and its E&C (Engineering & Construction) and Petrochemical Groups are the main lead of the Daelim Business Conglomerate (Chaebol). The fields covered by Daelim Industrial as one of the top EPC Company in Asia to the Middle East include gas, petroleum refining, chemical and petrochemical, power and energy plants, building and housing, civil works, and industrial facilities. Daelim Group has 17 subsidiary companies under its umbrella which includes Daelim Industrial (Construction Division), Daelim Industrial (Petrochemical Division), etc.
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