HDPE production in Russia decreased by 5% in Jan-Feb 2017

MOSCOW (MRC) - Production of high density polyethylene (HDPE) in Russia decreased and exceeded 154,900 tonne in the first two months of 2017, down 5% year on year. Gazprom neftekhim Salavat and Nizhnekamskneftekhim showed a significant decrease in production, according to MRC ScanPlast report.

February HDPE production in Russia was 70,400 tonnes, while in January it was about 84,500 tonnes. The decrease in production volumes was a result of the reorientation of Nizhnekamskneftekhim to the production of linear polyethylene at the end of January. Overall HDPE production exceeded 154,900 tonnes in January-February 2017, compared to 162,200 tonnes a year earlier. The increase in production at the facilities of Kazanorgsintez and Stavrolen did not help to compensate the reduction in output at other enterprises.

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

Russia's February HDPE production at Kazanorgsintez decreased to 39,500 tonnes from 41,500 tonnes a month earlier. Overall HDPE production at Kazanorgsintez reached 81,000 tonnes in January-February 2017, compared to 79,700 tonnes a year earlier.

Stavrolen produced about 22,400 tonnes of HDPE in February, while in January it was produced about 25,700 tonnes. The producer's HDPE output in Jan-Feb reached 40,100 tonnes, up 10% year on year.

Gazprom neftekhim Salavat produced 8,500 tonnes of HDPE in February, compared with 6,600 tonnes in January. Total HDPE production at the plant reached 15,100 tonnes in January-February 2017, down 24% year on year.

Nizhnekamskneftekhim switched to LLDPE C4 production in the second decade of January. Total PP production at the plant in incomplete January was about 10,700 tonnes.


MRC

MOSCOW (MRC) - Production of polypropylene (PP) in Russia decreased to 234,300 tonne in first two months of this year, down 2% year on year, compared to the same period of 2016. But not all companies have shown negative results, according to MRC ScanPlast.

February PP production in the country decreased to 108,700 tonnes, compared with 125,700 tonnes in January. Several producers decreased capacity utilisation. Total PP production in Russia reached 234,300 tonnes in Jan-Feb 2017 against 239,200 tonnes, an increase showed Stavrolen, Ufaorgsintez and Poliom.

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

The largest producer of PP in Russia - SIBUR Tobolsk in February produced about 34,800 tonnes against 46,400 tonnes a month earlier. Total PP production at SIBUR Tobolsk in Jan-Feb reached 81,200 tonnes.

February production at Poliom were about 16,800 tonnes, while a month earlier this figure was 18,600 tonnes. Total PP production at the plant in Jan-Feb was about 35,400 tonnes.

February PP production at Ufaorgsintez decreased to 10,300 tonnes from 10,800 tonnes a month earlier. The producer's PP output at Ufaorgsintez increased to 21,100 tonnes in January-February 2017 compared with 20,100 tonnes year on year.

Stavrolen (LUKOIL) last month increased capacity utilisation, total polypropylene production had increased to 10,100 tonnes against 9,500 tonnes in January. Overall PP production at the plant reached 19,600 tonnes in January-February, up 4% year on year.

February PP production at Nizhnekamskneftekhim decreased to 16,900 tonnes from 18,700 tonnes a month earlier. The producer's PP output decreased to 35,700 tonnes in January-February 2017 compared with 36,100 tonnes year on year.

Tomskneftekhim increased capacity utilisation in February and produced 11,200 tonnes (given the shorter month), while in January this figure was 11,900 tonnes. Total PP production at Tomskneftekhim over the reported period exceeded 23,200 tonnes, compared with 23,600 tonnes year on year.

Neftekhimiya (Kapotnya) last month produced about 8,600 tonnes of PP, compared with 9,600 tonnes in January. The producer's PP output in Jan-Feb reached 18,200 tonnes, down 16% year on year.


MRC

MOSCOW (MRC) -- Huntsman Corporation announced a plan to close the white end finishing and packaging operation of its titanium dioxide (TiO2) manufacturing facility based in Calais, France, during the third quarter 2017, said Reuters.

The announced plan follows the 2015 closure of the black end manufacturing operations and would result in the closure of the entire facility. 108 positions on the site will be affected.

The plan to close the Calais white end is structured to allow completion of any remaining obligations to any third parties and regulators.

Simon Turner, President of Huntsman Pigments and Additives division, commented: "The planned closure of the Calais facility further optimizes our manufacturing network and will increase our recently announced business improvement program by USD15 million to a total annual benefit of USD90 million. Our priority is to communicate with our Calais employees and their representative groups, along with local community leaders, to ensure that the planned closure is safely and effectively managed."

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately USD10 billion.
MRC

MOSCOW (MRC) -- Honeywell UOP announced that the Diamond Green Diesel facility in Norco, La., will expand its annual production capacity of renewable diesel from 10,000 bpd to 18,000 bpd, using Honeywell UOP's Ecofining process technology, said Hydrocarbonprocessing.

Diamond Green Diesel, which is owned by Valero Energy Corp. and Darling Ingredients Inc., is the largest commercial advanced biofuel facility in the United States. The company plans to complete the expansion in the second quarter of 2018.

"The expansion of the Diamond Green Diesel facility is a testament to the viability and growth potential of renewable fuels," said Dave Cepla, senior director of Honeywell UOP's Renewable Energy and Chemicals business. "The technology and commercial potential of the Ecofining process have been proven, and the best evidence is the company's decision to invest in expanded production capacity."

The Diamond Green Diesel facility converts inedible oils and other waste feedstocks to produce Honeywell Green Diesel, a high-quality renewable fuel. Unlike biodiesel, renewable diesel produced using the Ecofining process is chemically identical to petroleum-based diesel and can be used as a drop-in replacement in vehicles with no modifications. It also features up to an 80% lifecycle reduction in greenhouse gas emissions compared with diesel from petroleum.

Fuel produced at the facility is qualified as "Biomass-Based Diesel," an Advanced Biofuel under the US Environmental Protection Agency's Renewable Fuel Standard, which requires a minimum volume of transportation fuels sold in the US to contain renewable fuel as a way to reduce greenhouse gas emissions.

Honeywell UOP jointly developed the Ecofining process with Eni SpA. It converts non-edible natural oils and animal fats to Honeywell Green Diesel, which offers improved performance over biodiesel and petroleum-based diesel. It features a cetane value of 80, compared with a cetane range of 40 to 60 found in diesel at the pump today.

As MRC informed earlier, Honeywell announced that Jiangsu Sailboat Petrochemical Company, Ltd. started its UOP Advanced Methanol-to-Olefins (MTO) unit during a 10-day test to confirm successful operation.
MRC

MOSCOW (MRC) -- CB&I announced it has been awarded a contract valued at approximately USD460 million by NefteGazIndustriya, LLC, through project developer China National Chemical Engineering Co., for the Afipsky Oil Refinery Expansion Project in Krasnodar, Russia, said the company on its site.

The project was included in CB&I's backlog in the third quarter of 2016. The scope of work includes detailed engineering, procurement services, construction management services and commissioning services of multiple process units, including a 2.5 MMtpy hydrocracker unit licensed by Chevron Lummus Global, a JV between CB&I and Chevron.

CB&I previously announced awards for the technology license and FEED contract for multiple process units, as well as detailed engineering, procurement, fabrication and supply of a steam methane reformer for a large-scale hydrogen plant, hydrocracking heaters and Breech-Lock exchangers.

"CB&I is pleased to extend our relationship with NefteGazIndustriya and appreciate their confidence in our integrated capabilities," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "The Afipsky refinery modernization is significant for NefteGazIndustriya and building this high-conversion unit will allow it to become one of the most modern and competitive refineries in Russia."

As MRC informed earlier, CB&I announced it has been awarded a contract by Naftna Industrija Srbije (NIS) for the engineering, procurement and construction management of a delayed coker unit in Pancevo, Serbia.
MRC