Prices of film grade HDPE fell significantly in Russia in mid-May

MOSCOW (MRC) -- Prices of film grade polyethylene (PE) went down significantly in the Russian high density polyethylene (HDPE) market in mid-May. Supply of film grade HDPE also grew greatly in the market, as per ICIS-MRC Price report.

Market participants said prices of film grade HDPE had slumped in the market since 15 May. Polyethylene (PE) prices dropped by Rb2,000-5,000/tonne from early May. At the same time, supply of PE by Russian producers increased significantly.

Large imports of cheap material shipped from Central Asia, particularly, from Uzbekistan (Uz-Kor Gas Chemical's PE), was one of the factors of a major price reduction of Russian film grade PE. This PE has begun to be actively shipped to the Russian market since the beginning of last year and occupied its niche. In early May, offer prices for Uzbek film grade HDPE reached Rb87,000-87,500/tonne FCA, including VAT, in the central part of Russia and in the Urals.

Some market participants said a major increase in supply, particularly, from Nizhnekamskneftekhim, was the second factor for lower PE prices. The Nizhnekamsk producer resumed its HDPE production this month, whereas it manufactured exclusively linear low density polyethylene (PE) since mid-January.

Under the pressure of all these factors, prices of Russian film HDPE of most suppliers fell to Rb88,000-90,500/tonne FCA, including VAT, depending on the region.
MRC

MOSCOW (MRC) — Chinese defense conglomerate China North Industries Group Corp (Norinco) has signed a framework agreement with state-run oil company Saudi Aramco to build a refinery and chemicals complex in northeast China, said Reuters.

The planned projects—including a 300-Mbpd refinery and an ethylene complex with an annual capacity of 1 MMt—are to be built at an estimated cost of 69.5 B yuan (USD10.09 B).

The framework pact, which follows a memorandum of understanding (MoU) in March, marks one of the high-profile agreements signed during China's Belt and Road Forum, the first summit under President Xi Jinping's ambitious plan to promote global trade and investment.

The investment would boost Aramco's presence in China's massive refining industry, adding to its 25% stake in the Fujian refinery in southeast China operated by state refiner Sinopec Corp.

Norinco, the state defense giant that also runs oil and gas businesses, won regulatory approval in 2015 to build the refinery and petrochemicals complex in Panjin, Liaoning province.

Industry analysts have cast doubt over the feasibility of adding a large plant in the region, which traditionally has surplus refining capacity and is far from the main consuming regions.
MRC

MOSCOW (MRC) -- CB&I has been awarded a contract by PT Petrokimia Butadiene Indonesia (PBI), a Chandra Asri Petrochemical Group company, for the license and engineering design of three proprietary technologies in West Java, Indonesia, said the company on its website.

The scope of work includes the license and engineering design of a CDMtbe unit, a Butene-1 recovery unit and a BASF SELOP selective hydrogenation unit as part of an expansion of PBI's petrochemicals facilities.

"This multi-technology contract underlines the confidence PBI has in our technology portfolio and further establishes our presence and leadership in the region," said Philip K. Asherman, CB&I's President and CEO.

CB&I is a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world while maintaining a relentless focus on safety and an uncompromising standard of quality.
MRC

MOSCOW (MRC) -- State-owned Hindustan Petroleum Corporation Ltd (HPCL) and its partner Lakshmi N Mittal will invest about USD3 bln in setting up a petrochemical complex at the Bhatinda refinery in Punjab, according to Plastemart.

HPCL-Mittal Energy Ltd (HMEL), a joint venture between HPCL and Mittal Energy Investments Pvt Ltd, Singapore, plans to set up an up to 1.2 mln ton naphtha cracker, expandable to 1.7 mt.

As MRC informed before, in August 2015, HPCL shelved a plan to build a refinery in Andhra Pradesh, although it went go ahead with a proposed petrochemical unit. The company’s oil refinery at Visakhapatnam is being expanded to almost double, obviating the need to add capacity in the state at present.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC

MOSCOW (MRC) -- LyondellBasell has broken ground on the first commercial Hyperzone polyethylene (PE) plant at its La Porte, Texas complex, said the company on its website.

The plant will be capable of producing 500 metric tpy of high-density polyethylene (HDPE) and will employ LyondellBasell's new proprietary Hyperzone PE technology that provides enhanced material performance. Startup of the plant is planned for 2019.

Hyperzone PE technology enables customers to produce cost-effective, light weight plastics that are strong, durable and widely recyclable. The new Hyperzone PE technology also enables the production of a broad spectrum of HDPE products in one single plant, whereas previous technologies require multiple plants.

The company plans to make the Hyperzone process technology available for licensing in the future. The technology took years to advance to commercialization and was a product of LyondellBasell's global research and development teams in Ferrara, Italy; Frankfurt, Germany; Cincinnati, Ohio; and Houston, Texas.

The company chose to build the new plant at its existing La Porte complex because of its proximity to price-advantaged US feedstocks and the transportation infrastructure needed to ship product to markets across the globe. The project will create up to 1,000 jobs at the peak of construction and 75 permanent positions.

The La Porte complex is one of LyondellBasell's largest manufacturing facilities, spanning approximately 550 acres. The complex has two docks on the Houston Ship Channel and truck and rail transportation capabilities. Once the Hyperzone PE plant is complete, the La Porte complex will more than double its annual PE capacity to 900 metric Mtpy. LyondellBasell produces a total of 3 metric MMtpy of HDPE, including its share of capacity through joint venture facilities. The company is a leading worldwide producer of all forms of PE with an annual capacity of 5 metric MMtpy.

The Hyperzone PE plant is part of LyondellBasell's plan for USD3 B–USD5 B of investments along the US Gulf Coast. The company recently completed work on ethylene expansion projects at its La Porte, Channelview and Corpus Christi sites in Texas. Additionally, development of a world-scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing, and a final PO/TBA investment decision is expected in the second half of 2017.
MRC