JG Summit lets Fluor EPCM contract for Filipino PC complex expansion

MOSCOW (MRC) -- JG Summit has awarded Fluor an engineering, procurement and construction management (EPCM) contract for a petrochemical complex expansion in Batangas City, the Philippines, as per Apic-online.

The project will increase JG Summit's ethylene production by 160,000 t/y and propylene production by 50,000 t/y. Also included in the project are new and expanded downstream units. Completion is expected by the end of 2020.

Under the contract, for which a value was not disclosed, Fluor will be responsible for the utilities, offsites and infrastructure scope of work.

"JG Summit is the sole cracker operator in the Philippines and we are pleased to support their expansion program," noted Ken Choudhary, president of Fluor's Energy & Chemicals business for the Asia-Pacific region.

JG Summit announced earlier this year, as MRC informed before, that it was planning to invest USD700-million in five new petrochemical projects in the Philippines, which includes a new butadiene extraction plant, an aromatics unit, an expansion of its existing naphtha cracker and polypropylene facility, and a new bimodal polyethylene unit. Operations are scheduled to start by 2021.
MRC

MOSCOW (MRC) - The US Environmental Protection Agency (EPA) has backed off a series of proposed changes to the nation’s biofuels policy after a massive backlash from corn-state lawmakers worried the moves would undercut ethanol demand, according to a letter from the agency to lawmakers seen by Reuters.

The letter could end uncertainty about the future of the U.S. Renewable Fuel Standard under the administration of President Donald Trump that has roiled commodity and energy markets for months. The program, which requires refineries to blend increasing amounts of ethanol and other biofuels into the nation’s fuel supply every year, appeared on the verge of a massive overhaul.

EPA Administrator Scott Pruitt said in the letter dated Oct. 19 that the agency will keep renewable fuel volume mandates for next year at or above proposed levels, reversing a previous move to open the door to cuts. He said the EPA would not pursue another idea floated by EPA leadership that would have allowed exported ethanol to be counted toward those volume quotas.

Pruitt also said the EPA did not believe a proposal to shift the biofuels blending obligation away from refiners was appropriate. That plan is backed by representatives of a handful of independent refining companies. Those ideas would have eased the burden on some in the refining industry, who have argued that biofuels compete with petroleum, and that the blending responsibility costs them hundreds of millions of dollars a year.

But Midwestern lawmakers, including Republicans Charles Grassley and Joni Ernst, had vocally opposed all those ideas, calling them a betrayal of the administration’s promises to support the corn belt. They were concerned the moves would undercut domestic demand for ethanol, a key industry in the region that has supported corn growers.

In Pruitt’s letter, he said the EPA was prepared to work with Congress to examine the possibility of a waiver that would allow the sale of E15 gasoline, containing 15 percent ethanol, year-round - something currently not permitted during the summer due to concerns about smog.

Renewable Fuels Association President and CEO Bob Dinneen said in a response to the letter on Friday morning that the U.S. ethanol industry was “grateful for Administrator Pruitt’s epiphany on the road to the RFS.”
MRC

MOSCOW (MRC) -- Italian oil and gas group Eni is keen to strengthen ties with Russia's Rosneft and could forge a partnership in the liquefied natural gas (LNG) sector, reported Reters with reference to its chairwoman.

In May this year, Eni extended a cooperation agreement with Rosneft to explore the Russian Barents Sea and the Black Sea, and consider further opportunities together.

"We are discussing a series of projects ... and are talking for a possible partnership in LNG," Emma Marcegaglia said at an energy conference.

Eni, which in recent years has uncovered around 115 Tcf of gas in Mozambique and Egypt, said earlier this year it was looking to develop its LNG business worldwide.

The state-controlled major recently sold a 30% stake in its giant Zohr gas field in Egypt to Rosneft and the Russian energy giant has an option to buy a further 5%.

Speaking at the same conference, Rosneft CEO Igor Sechin said the Russian company was happy with its investment in Zohr.

"We are looking positively at the matter to realize this option," he said.

Sechin said Rosneft would start drilling activity with Eni, and Italian oil service group Saipem, in the Black Sea at the end of December.

Eni has three licences with Rosneft in the Black Sea and Barents Sea.

As MRC wrote before, in May 2017, Rosneft and Eni S.p.A. entered into a Cooperation extension agreement in the areas of upstream, refining, marketing and trading during the visit of an Italian delegation to Russia. The Agreement provides for the development of cooperation between Rosneft and Eni in Russia and abroad in the following areas: exploration and production of hydrocarbons, refining, trading, logistics, marketing and sales, petrochemicals, technology and innovation. The document reinforced the previous agreements between the two companies, specifically in offshore to drill exploration wells as part of joint projects in the Black and Barents seas.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus increased to about 63,800 tonnes in first eight months of this year, up 5.1% year on year, compared to the same period of 2016. Demand for all PP grades increased, as per MRC DataScope.

August PP imports into Belarus increased to 9,600 tonnes from 7,700 tonnes a month earlier, local companies cut their purchasing of propylene copolymers in Russia. Total PP imports into the country reached 63,800 tonnes in January - August, compared with 60,600 tonnes year on year. Demand for all PP grades increased, but propylene copolymer accounted for the greatest growth.

The structure of PP imports by grades looked the following way over the stated period.

August imports of homopolymer PP to the Belarusian market decreased to 5,600 tonnes from 6,000 tonnes a month earlier, shipments of injection moulding homopolymer PP decreased. Total imports of homopolymer PP into Belarus were 42,700 tonnes in the first eight months of this year, compared with 41,200 tonnes year on year. The key suppliers of homopolymer PP were Russian producers, with their share in the total supply around 88%.

August imports of propylene copolymers into Belarus grew to 4,000 tonnes against 1,700 tonnes a month earlier, the local companies increased procurement of PP random copolymers in Russia. Thus, overall imports of propylene copolymers reached 21,000 tonnes in January-August 2017, whereas this figure was 19,400 tonnes a year earlier.
MRC

MOSCOW (MRC) -- Clariant has announced the signing of a joint venture contract with Tiangang Auxiliary Co., Ltd., a privately owned producer of UV light stabilisers in China. According to Clariant, the two companies plan to invest a multi-million CHF amount to establish a new production facility for process and light stabiliser additives in the Cangzhou National Coastal-Port Economy and Technology Development Zone, Hebei province, China, as per GV.

"The partnership with Tiangang is another successful step toward strengthening Clariant’s position in China. It provides us with a stronger local footprint to better position our innovative solutions in the growing Asia region, especially in China. Furthermore, by cooperating with a leading Chinese company like Tiangang, we can exchange best practices and valuable market insights in order to deliver ever-more tailored solutions to our customers," said Christian Kohlpaintner, Clariant's Executive Committee Member residing in China.

China is one of the key markets for process and light stabilisers, which include the Nylostab S-EED chemistry from Clariant. Production is scheduled to come on stream in the first half of 2019. The JV also plans to expand its offering of solutions for the automotive industry in the future.

Commenting on the joint venture, Stephan Lynen, Head of Clariant BU Additives, said: "The production joint venture with Tiangang significantly strengthens our ability to serve the strongly growing demand for high-end additives solutions in Asia. Having local production with a well established and trusted partner improves proximity to our customers and to our raw material suppliers. This will enable us to accelerate response times and shorten supply lead times."

Gang Liu, Vice President, Tiangang commented: "Established in 1991, Tiangang has been a trusted supplier for the polymer industry with a complete range of light stabiliser products and solutions. By partnering with Clariant, a world-leading innovative pioneer in additives development, we look forward to combining the rich technology and production knowledge of both companies to provide the best value-adding solutions and products to the polymer industry with world-class quality and services."

The joint venture with Tiangang is the latest move to expand the local footprint of Clariant’s Additives business in China. It follows the announcement in May 2017 of an investment in Zhenjiang, China, which will create a production facility for AddWorks, synergistic additive solutions and Ceridust, micronised waxes serving the plastics, coatings and inks industries. It is scheduled to come on stream in the second half of 2018.

As MRC informed earlier, in March 2017, Clariant was awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The project includes the license and engineering design of the unit, which is to be built in Dongguan City, Guangdong Province, China. The Dongguan plant will be one of the largest single-train dehydrogenation units in the world. Clariant's technology partner CB&I will base the plant's design on its Catofin® catalytic dehydrogenation technology, which uses Clariant's tailor-made Catofin catalyst and Heat Generating Material (HGM).

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC