Lotte Titan completes maintenance at No.1 LLDPE unit

MOSCOW (MRC) -- PT Lotte Titan Nusantara Indonesia, part of Lotte Group, has brought on-stream its No.1 Linear Low Density Polyethylene (LLDPE) unit at Cilegon, as per Apic-online.

A Polymerupdate source in Indonesia informed that the company has resumed operations at its unit early this week. The unit was shut on September 11, 2017 owing to shortage of feedstock.

Located in Cilegon, Indonesia, the No. 1 unit plant has a production capacity of 125,000 mt/year.

As MRC reporeted earlier, Lotte Chemical Titan, a local petrochemical unit of South Korean conglomerate Lotte Group, plans to start construction of a USD4 bln naphtha cracker plant in Indonesia next year. The project, which has been delayed for three years due to land acquisition problems, will help Indonesia reduce expensive chemical imports. The plant will have a capacity to produce 1 million tons of ethylene and 600,000 tons of propylene annually.

The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.
MRC

MOSCOW (MRC) -- ExxonMobil announced an enhanced program to reduce methane emissions from its production and midstream facilities across the United States, said the company on its website.

The program, which builds on the company’s longstanding commitment to emissions reduction, prioritizes actions at sites operated by subsidiary XTO Energy and includes efforts to develop and deploy new, more efficient technologies to detect and reduce facility emissions.

"We are implementing an enhanced leak detection and repair program across our production and midstream sites to continually reduce methane emissions, and are also evaluating opportunities to upgrade facilities and improve efficiency at both current and future sites," said XTO president Sara Ortwein. “Our comprehensive initiative is underscored by a technology research and testing effort, and includes personnel training, equipment phase out and facility design improvements."

The program includes a commitment to phase out high-bleed pneumatic devices over three years, extensive personnel training, research, and facility design improvements for new operations.

XTO recently completed a pilot project in the Midland Basin that tested new low-emission designs that use compressed air instead of natural gas to operate pneumatic equipment that helps regulate conditions such as level, flow, pressure and temperature. The results successfully demonstrated the feasibility of using similar designs for new and existing central tank batteries and satellites, to reduce the potential for methane emissions.

XTO’s efforts also include research conducted with ExxonMobil Upstream Research Company and third-party equipment manufacturers to continue development of more efficient, state-of-the-art equipment to detect, quantify and reduce emissions at production sites. These research efforts build on an extensive portfolio of more than two dozen existing methane research projects and pilots already under way.

Earlier this year, ExxonMobil, National Oceanic and Atmospheric Administration, and others evaluated the use of aircraft-mounted leak detection surveys to guide equipment repair, and continue to assess the use of satellite, aircraft, unmanned aerial vehicles, and mobile and ground-based technologies to refine the company’s methane monitoring.

"Combining our field experience with the research capabilities at ExxonMobil upstream research provides us with unique insights as we look to develop and deploy new, more efficient technologies," Ortwein said.

As part of the company’s efforts to better understand the magnitude and characteristics of oil and gas industry-related methane emissions, ExxonMobil participated in studies conducted by the University of Texas and Environmental Defense Fund.

ExxonMobil remains active in ongoing methane research, including participation in a methane measurement reconciliation study with the Department of Energy’s National Renewable Energy Laboratory, and in supporting research currently underway at Harvard, the University of Texas Energy Initiative, and Stanford University’s Natural Gas Initiative.
MRC

MOSCOW (MRC) - Production of polyethylene (PE) in Russia reached about 1179,500 tonnes in first eight months of this year, up 6% year on year, compared to the same period of 2016. The largest increase in PP production was recorded in linear low density polyethylene (LLDPE) sector, according to MRC ScanPlast.

August Russia's PE production decreased to 136,200 tonnes, while a month earlier it was 144,300 tonnes, with the main decrease in accounted for low density polyethylene (LDPE). Overall PE production reached 1179,500 tonnes in the first eight months of the year, compared to 1117,900 tonnes a year earlier. The production of LDPE and LLDPE increased, while the output of high density polyethylene (HDPE) decreased.

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

Russia's August HDPE production increased to 74,400 tonnes from 72,900 tonnes a month earlier. In general, total volume of HDPE output by Russian plants reached 647,700 tonnes in January-August, down 4% than in 2016.

August LDPE production in the country decreased to 46,100 tonnes, compared with 52,800 tonnes in July; all three producers decreased production volumes: Tomskneftekhim, Ufaorgsintez and Kazanorgsintez. Overall LDPE production in the country exceeded 432,100 tonnes over the stated period, up by 10% year on year.

The only producer of linear polyethylene in Russia - Nizhnekamskneftekhim this year, significantly increased output, the final figure for LLDPE production for eight months was about 100,000 tonnes, while a year earlier this figure did not exceed 49,000 tonnes.


MRC

MOSCOW (MRC) -- Lanxess intends to increase its operating margin to 14-18% from 2021. This target is to be achieved by further diversification and strict portfolio management, as per GV.

Chemtura synergies and high-yielding organic growth projects are expected to be key drivers for profitability. Furthermore a group-wide digitalization initiative has been launched. The Cologne-based speciality chemicals company announced these and other strategic details at a Media Day on the 5 September 2017.

Lanxess intends to further improve its stability and profitability over the next years. From 2021, the operating margin - measured in terms of EBITDA pre exceptionals - is expected to be between 14% and 18%. In fiscal 2016 the margin was at 12.9 %. At the same time, the Group is to become even more stable, with less volatility in the operating result. In terms of volume, Lanxess intends to consistently grow above global gross domestic product.

"Lanxess is back on solid footing and has embarked on a profitable growth path. In the coming years, we intend to reach our full potential and transform Lanxess into an even stronger company with a highly balanced and stable platform, increased profitability and, last but not least, a company team-culture based on dedication and motivation," says Matthias Zachert, CEO of Lanxess AG.

The Group will only include business operations in its portfolio that can achieve leading market positions and generate attractive margins sustainably. Organic investments - around EUR 400 million between 2016 and 2020 - involve projects that generate an average return on capital employed (ROCE) of 20% on average. In comparison, GroupROCE was 6.9% for fiscal 2016. In addition, Lanxess is pursuing even greater regional and industry-based balancing to further reduce the effects of market volatilities. This includes an increased share of sales in growth markets such as Asia and North America and an expanded presence in attractive customer industries such as electrical/electronics or energy with innovative product applications.

The company expects about EUR 100 million in annual cost savings by 2020 stemming from the acquisition of Chemtura. Cost savings for fiscal 2017 are already expected to amount to approx. EUR 25 million. An estimated EUR 140 million in associated one-time costs will be incurred for this. Approximately half of the expected EUR 100 million in synergies are attributable to production and procurement. The combined purchase volume of both companies for raw materials of about EUR 2.5 billion can be reduced by harmonizing supply contracts and increasing backward integration. Additional savings can be realized in the area of transportation and logistics. Around 30 % of all synergies can be achieved in administration, primarily in North America. A further 20% of the synergies are expected to come from streamlining global marketing and sales structures.

Lanxess has established a department with an initial 30 experts for a group-wide digitalization initiative. Key areas of the initiative include the digitalization of the value chain, the use of big data, the development of digital business models and embedding digital expertise among employees.

As MRC reported earlier, in January 2016, Lanxess AG started up a second production line for high-performance plastics compounding at its facility in Gastonia, N.C. The new line represents an investment of about USD15 million and doubles the site’s annual production capacity from 20,000 to 40,000 metric tons. In the plant, the basic polymers nylon and polybutylene terephthalate (PBT) are mixed and refined with special additives and glass fiber, according to client requirements, to make the high-performance plastic product lines Durethan and Pocan. They are used primarily in the auto industry to manufacture lighter-weight plastic components that can replace metal parts in vehicles.

Lanxess is a leading specialty chemicals company with about 16,600 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) — Chevron Corp's Vice Chairman Mike Wirth will become chief executive next February, replacing the retiring John Watson, said Hydrocarbonprocessing.

The transition brings an executive with experience in the cost-cutting world of refining to the top spot at one of the world's largest oil and natural gas companies. Reuters reported the change of leadership last month, citing a source close to the matter.

Wirth, an engineer by training, has worked at Chevron since 1982 and previously ran the company's pipeline and chemicals and refining businesses.

Wirth "has the right business experience and leadership qualities to extend the company’s success, and the board has full confidence in his ability to do so," Ronald Sugar, Chevron's lead director, said in a statement. Wirth, 56, will also become chairman of the board.

Watson, who will not hit the company's mandatory retirement age of 65 for another 4 yr, sees the change as an opportunity to hand over the reins of a growing enterprise to Wirth, the source told Reuters last month.

"I have been blessed to have had the extraordinary opportunity to lead Chevron, and I will miss my daily interactions with our dedicated employees around the world," Watson said in a statement on Thursday.

Last year, Watson earned $24.6 MM in pay, share options and bonuses, up from USD22 MM in 2015. Wirth was paid USD9.1 MM last year, up from USD8.1 MM in 2015.

Shares of Chevron rose slightly after the opening bell on Thursday to $117.49.
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