PTTGC to take off-stream HDPE plant in Thailand for maintenance

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is in plans to shut its high density polyethylene (HDPE) plant in mid-July 2017, according to Apic-online.

A Polymerupdate source in the Thailand informed that the company is likely shut the plant on July 17, 2017 for a maintenance turnaround. The plant is expected to remain off-line for a period of around 15 days.

Located at Map Ta Phut in Thailand, the HDPE plant has a production capacity of 300,000 mt/year.

As MRC informed before, in late May 2016, PTTGC took off-stream this plant for a two-week scheduled turnaround. Initially, the company planned to shut the HDPE plant in early June, but then decided to start maintenance a week earlier.

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) — Following announcements at the Saudi-US CEO Forum earlier this week, Motiva Enterprises LLC confirms it has embarked on a growth journey to become the safest and most profitable downstream business in the US, said Hydrocarbonprocessing.

As a wholly owned affiliate of Saudi Aramco, Motiva is expected to be the primary focus of an estimated USD18-B growth effort throughout the Americas and is exploring opportunities to increase refining capacity, branch into chemicals, and expand its commercial operations, marketing and branded presence over the next 5 yr.

"With the joint venture separation behind us, there is a real sense of self-sufficiency at Motiva," said Dan Romasko, Motiva’s president and CEO. "Our employees have embraced the changing culture, which has turned Motiva into a more agile organization. We have given employees added responsibility, but at the same time empowered them to make decisions and be accountable for our results."

The growth strategy follows a concerted effort to transform the performance of Motiva. Since 2014, Motiva has improved safety and reliability performance by nearly 50%. Additionally, the company expanded its headquarters in Houston, Texas and repatriated offshore back-office functions to a third-party service provider in Tulsa, Okla.

Motiva also recently completed an expansion of the Port Arthur Refinery’s largest hydrocracking unit and diesel hydrotreater, resulting in a 30% increase in capacity. An ongoing project with Northstar Terminals LLC to build a new marine terminal and related facilities at the Port of Port Arthur is expected to be complete in July 2017.

Motiva Enterprises LLC refines, distributes, and markets fuels in the Eastern, Southern, and Gulf Coast regions of the United States. It offers base oils, which are used to manufacture finished lubricants such as modern motor oils and industrial lubricants. The company also provides terminaling services for gasoline, distillate, jet, and bio-fuel products, which are further transported via tanker trucks, pipelines, railcars, and marine vessels.
MRC

MOSCOW (MRC) — China will eventually allow private companies to invest in the country's oil and gas storage, the government said in a blueprint document for its energy sector that mainly underscored earlier pledges on reforming heavily monopolized oil and gas industries, said Reuters.

Beijing has previously said it would take steps such as pushing to open upstream oil and gas exploration to private companies, help split natural gas sales from gas pipeline operations and lift the output of higher quality oil products.

That comes as China pushes to overhaul state-owned enterprises, including with the introduction of so-called mixed ownership of state firms, as part of the most far-reaching reforms of its sprawling and inefficient state sector in two decades.

"We are expecting specific measures (on energy sector reform) to follow after the State Council releases this overarching guide," said Lin Boqiang, an academic specialized in energy at Xiamen University. "(But) this is the first time that China said it would encourage private capital in oil and gas storage facilities."

In the document released late on Sunday, the State Council said it would aim to ramp up government investment in the country's oil storage facilitates, while also allowing non-state firms to operate storage. It did not give further details.

China has been building underground caverns capable of holding a substantial chunk of its expanded strategic oil reserves by 2020, as it looks for new storage methods away from expensive and exposed above-ground tanks in crowded coastal regions.

The blueprint document also said the State Council would set up a "management system" to regulate crude import licenses. The rest of the paper mainly repeated earlier government plans on reforming the energy sector.
MRC

MOSCOW (MRC) -- The Cabinet Committee on Economic Affairs (CCEA) has approved a restructuring plan for loss making and sick Central Public Sector Enterprise Hindustan Organic Chemicals Ltd. (HOCL), a under the Department of Chemicals and Petrochemicals, reported ANINews.

The company, having units at Rasayani (Maharashtra) and Kochi (Kerala), has been making continuous cash losses since 2011-12, resulting in an acute shortage of working capital.

Most of its plants have remained shut for the last few years. It has not been able to pay regular salary and statutory dues to its employees since February, 2015.

The restructuring plan involves closing down the operations of all the non-viable plants at Rasayani unit of HOCL except the Di-Nitrogen Tetroxide (N2O4) plant which is to be transferred to ISRO on 'as is where is' basis, with about 20 acres of land and employees associated with the plant. The N2O4 plant is of strategic importance as it is the only indigenous source of N2O4 which is used as liquid rocket propellant by ISRO in the space launch vehicles.

The financial implications of the plan is Rs. 1008.67 crore (cash) which is to be met partly from sale of 442 acres HOCL land at Rasayani to Bharat Petroleum Corporation Ltd. (Rs.618.80 crore) and the balance (Rs.365.26 crore) through bridge loan from the government.

The funds will be used to liquidate the various liabilities of the company, including payment of outstanding salary and statutory dues of employees and repayment of government guaranteed bonds of Rs.250 crore due for redemption in Aug.-Sept. 2017.

The bridge loan amount, along with other government liabilities of the company, is proposed to be repaid to the government from the disposal of remaining unencumbered land and other assets of Rasayani unit.

The implementation of the restructuring plan will enable HOCL to close down the operations of non-viable plants at Rasayani unit, while transferring the strategically important N2O4 plant to ISRO to ensure continuity of manufacture and supply of N2O4 for ISRO's space programme. Interest and welfare of employees will be addressed by payment of all their outstanding salary dues.

Disposal of land assets, initially through sale of 442 acres to BPCL and subsequently of the remaining unencumbered land, will unlock the land assets for being redeployed for economically productive investments and thereby creating new employment generation opportunities.

As MRC informed earlier, in 2016, state-run Hindustan Petroleum Corp. Ltd. (HPCL) received environmental clearance from Indian officials to expand its Visakhapatnam refinery in Andhra Pradesh from 8.33 MMtpy to 15.0 MMtpy.
MRC

MOSCOW (MRC) -- The global chemical company Oxea has concluded an upgrade of its carboxylic acids production facility in Oberhausen, Germany. As a result, Oxea has enhanced the production output of short-chain fatty acids (SCFAs), such as propionic acid, butyric acid, and isobutyric acid, said the producer on its website.

Oxea manufactures butyric and propionic acid in Animal Feed (AF) quality. These products are used as building blocks for feed materials that are free from antibiotic growth promoters, so called AGP-free feed. SCFAs from the upgraded unit in Oberhausen are handled under GMP+ B2 (Good Manufacturing Practice) and have received HACCP (Hazard Analysis Critical Control Point) certification to address requirements primarily in the animal feed sector.

"The recent investment substantially increases global supply reliability for our customers. It enables additional units to produce our short chain fatty acids, and significantly improves the overall output of acids across our multisite, multi-products acids platform," said Dr. Oliver Borgmeier, Vice President Operations Derivatives Europe & China at Oxea.

"This upgrade at our Oberhausen site is just the first step towards further enhancement of our carboxylic acid capabilities in the short- and mid-term. We will further strengthen Oxea’s comprehensive carboxylic acids portfolio across all products and markets, which also include lubricants and synthetic fluids, ingredients for personal care applications, and paint and coating additives," said Cristobal Ascencio, Executive Vice President Derivatives.

Oxea is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavorings and fragrances, printing inks and plastics.
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