Naphtha cracker to be shut by Keiyo Ethylene

MOSCOW (MRC) -- Keiyo Ethylene is in plans to take its naphtha cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the cracker is planned to be shut in May-June 2018. The exact date and duration of the planned shutdown could not be ascertained.

Located at Ichihara in Chiba prefecture of Japan, the cracker has a production capacity of 740,000 mt/year.

As MRC informed before, another major Japanese petrochemical producer - Idemitsu Kosan - resumed operations at its cracker in Japan in late October 2017. The cracker was taken off-line for maintenance on September 22, 2017. Located at Chiba in Japan, the cracker has an ethylene production capacity of 375,000 mt/year.

Founded in 1991, Keiyo Ethylene Co. Ltd. produces and sells petrochemical products. The Company produces ethylene, propylene, and other petrochemical products.
MRC

As Saudi Arabia limits US crude shipments, Iraq steps in

MOSCOW (MRC) — Saudi Arabia's efforts to reduce a worldwide crude supply glut by cutting shipments to the United States means others are now filling in, most notably Iraq, in a trend that is set to accelerate in coming months, as per Reuters.

Over the summer, normally one of the busiest periods for crude shipments, US imports of crude from Iraq rose by 41% from a year ago, while similar shipments from Saudi Arabia have dropped by 22%. That trend has continued, with ClipperData showing Iraqi shipments to the nation's largest refinery in October surpassed Saudi Arabia's for the first time in more than 30 yr.

It shows how Saudi Arabia's leading role in reducing world supply has also cost it market share in the world's largest oil consumer, as its share of US imports has fallen to the lowest level since 1985. Imports have increased from OPEC members Iraq and Nigeria, along with Canada, and refiners are relying more on rising US shale production.

"For every barrel (the Saudis) don't produce they're losing market share," said Sandy Fielden, director of research, commodities and energy at Morningstar. "Refiners go to an alternate in that situation and obviously the Iraqis took advantage."

Saudi Arabia cut shipments to the United States beginning in June, as part of the ongoing effort by the Organization of Petroleum Exporting Countries to cut supply. OPEC, along with non-member nations including Russia, agreed in late 2016 to cut world output by 1.8 MMbpd. Representatives of OPEC countries will meet at the end of the month to consider extending cuts.

Between June and August of this year, according to US Energy Information Administration data, Iraq exported an average of 600,000 bbl of oil daily to the United States, compared with 426,600 bpd a year ago. Saudi Arabia's shipments dropped to an average of 850,000 a day from 1.09 MMbpd last year, according to US energy data. At its peak in 1991, Saudi Arabia supplied the United States with 29% of its crude.

Shipments from Iraq to Motiva Enterprises LLC's Port Arthur, Texas refinery are up by almost 35% in the six months through October, according to Matt Smith, director of commodity research at ClipperData. The Texas refinery, the largest in the United States and owned by Saudi Aramco, did not respond to a request for comment.

"For October, we've seen that Iraqi crude deliveries have surpassed Saudi deliveries for the first time since 1985," Smith said. Official US data on refiner-level imports currently only extends through August. Those cuts to US supply are set to accelerate; on Thursday, the Saudi Arabian energy ministry told Reuters that December crude exports to the United States will be more than 10% lower than November levels.

Reduced supply has helped raised crude prices, with Brent crossing USD64/bbl last week, a two-and-a-half-year high. While Saudi Arabia has decreased exports to the US Gulf 16%, exports to the West Coast fell just 8% from last summer, as the Saudis face competition from producers in Latin America.

Saudi Arabia "cut imports to Motiva, while they cut less to the others," said Fareed Mohamedi, chief economist at Maryland-based Rapidan Energy Group. "They're willing to sacrifice to themselves, but their refinery went out to buy other crude which also helped tighten up the market."

Even if Saudi imports remained at that summer average of 850,000 bpd, that would equal just 11% of overall US crude imports, the lowest percentage since 1985, according to EIA data. In addition, US production has risen by 430,000 bpd this year through August, EIA data shows. Fielden said while the shale threat means OPEC will extend production cuts, the shipping figures suggest disagreement on supply to the United States.

"This example between Iraq and Saudi is, I think, destined to be an ongoing situation," he said.
MRC

Indian Oil Corp starts crude oil trading through Singapore subsidiary

MOSCOW (MRC) — India’s top refiner Indian Oil Corp began trading crude oil through its Singapore unit, buying a million barrels of Nigerian oil Akpo, the state-run company’s head of finance AK Sharma said, as per Reuters.

IOCL Singapore Pvt Ltd has bought the parcel from Total for Dec. 8–17 loading, he said. "We have got a very good deal," Sharma told Reuters, adding the cargo will be co-loaded with a million barrels of Angola’s Girassol oil, which the refiner has procured under a term deal.

Sharma declined to give any details on price. IOCL Singapore currently has two officers and, Sharma said, the company will gradually increase its workforce in line with transactions from the city state.
MRC

Pyrowave and INEOS Styrolution announce partnership to recycle North American post-consumer PS

MOSCOW (MRC) -- Pyrowave and INEOS Styrolution America LLC, the American subsidiary of the global leader in styrenics, announce a strategic partnership to support Pyrowave’s North American polystyrene recycling project, as per INEOS Styrolution press-release.

The objective of this project is to demonstrate the recyclability of post-consumer polystyrene packaging using Pyrowave’s innovative Catalytic Microwave Depolymerization (CMD) technology. This consortium project will be represented with various actors from the value chain of the polystyrene industry, and INEOS is the first manufacturer to join the consortium.

"We are very excited to collaborate with Pyrowave in this project. At INEOS Styrolution, we are committed to exploring ways towards a circular economy. Polystyrene is a too valuable material to end up in landfills," said Ricardo Cuetos, VP Standard Products, INEOS Styrolution America LLC. "Pyrowave’s North American project is a significant component in our efforts to recycle polystyrene taking advantage of innovative technologies," he adds.

Pyrowave’s principal advantage is the modularity of its technology, which is intended to be installed and operated in existing sorting facilities, similar to other recycling equipment. Also, its unique microwave technology is the first of its kind at commercial scale and generates particular high yields of monomers with a very low energy consumption. Pyrowave spent three years exploring the technology on post-consumer polystyrene waste, and now, Pyrowave is operating a full scale machine in Montreal, Canada. Pyrowave’s next phase is to deploy units in the field and demonstrate its business model with a strong consortium of industry leaders, representing the value chain.

"We are extremely pleased to announce the support of INEOS Styrolution in the project as it shows strong leadership from the polystyrene industry that wants to improve the life cycle of polymer products", says Jocelyn Doucet, CEO of Pyrowave. "We believe that plastics are meant to stay in our modern world and to continue delivering broad span benefits during their use phase. However, this must include end-of-life-solutions. We believe the future of plastic is circular. Our technology combined with the support of the industry will help improve our world’s resource efficiency for the good of future generations," adds Jocelyn Doucet.

NEOS Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 85 years of experience, INEOS Styrolution helps its customers succeed by offering the best possible solution, designed to give them a competitive edge in their markets. The company provides styrenic applications for many everyday products across a broad range of industries, including Automotive, Electronics, Household, Construction, Healthcare, Packaging and Toys/ Sports/ Leisure. In 2016, sales were at 4.5 billion euros. INEOS Styrolution employs approximately 3,200 people and operates 16 production sites in nine countries.
MRC

PVC imports to Belarus rose by 38% in first nine months of 2017

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus grew in January-September 2017 by 38% year on year, totalling 25,500 tonnes, according to MRC's DataScope report.

According to the statistical committee of the Republic of Belarus, local converters slightly reduced their purchasing of PVC in September, total imports were 3,200 tonnes, compared to 3,500 tonnes a month earlier.

Thus, PVC imports rose in the first nine months of 2017 to 25,500 tonnes from 18,500 tonnes in January-September 2016, with local windows producers accounting for the main increase in demand.
Russian producers were the key suppliers of resin to Belarus. They accounted for about 85% of the Belarusian market in January-September 2017. Producers from Germany with the share of about 12% were the second largest suppliers.

MRC