PE production in Russia rose by 1% in first ten months of 2017

MOSCOW (MRC) -- Russia's production of polyethylene (PE) grew by 1% year on year in the first ten months of 2017 to 1,407,600 tonnes. The linear low density polyethylene (LLDPE) segment accounted for the greatest increase in the output, according to MRC's ScanPlast report.


October overall PE production decreased to 105,500 tonnes, whereas this figure reached 122,600 tonnes a month earlier, with high density polyethylene (HDPE) accounting for the main decrease in the output. Overall PE production reached 1,407,600 tonnes in January-October 2017, compared to 1,400,000 tonnes a year earlier. Output of low density polyethylene (LDPE) and LLDPE increased, whereas HDPE production decreased.

The structure of PE output by grades looked the following way over the stated period.


October HDPE production fell to 46,400 tonnes from 66,500 tonnes a month earlier, the largest producers - Kazanorgsintez and Stavrolen - shut their production capacities for maintenance in September. Russian plants' overall HDPE output reached 760,600 tonnes in January-October 2017, down by 8% year on year.

Last month's overall LDPE production rose to 59,100 tonnes from 48,900 tonnes in September; two producers - Tomskneftekhim and Angarsk Polymers Plants - simultaneously increased their output. Overall LDPE production exceeded 540,000 tonnes over the stated period, up by 5% year on year.

Nizhnekamskneftekhim, Russia's only LLDPE producer, significantly increased its output this year, its LLDPE production was about 107,000 tonnes in the first ten months of 2017, whereas this figure did not exceed 57,700 tonnes a year earlier.

MRC

Fire out at ExxonMobil refinery in Beaumont, no injuries

MOSCOW (MRC) -- ExxonMobil has put out a fire that broke out in a crude unit and there were no injuries, according to information an ExxonMobil spokeswoman provided to KFDM News.

The fire was reported at about 6 a.m. in a crude unit on the south side of the Beaumont refinery, according to Ashley Alemayehu with ExxonMobil.

She says ExxonMobil handled the fire with its own fire crew and quickly put out the flames.

Initial air quality monitoring shows no off-site impact, said Alemayehu.

Jefferson County Emergency Management Coordinator Greg Fountain says ExxonMobil contacted the county to inform it of the fire.

Statement from ExxonMobil/Ashley Alemayehu: "As many of you are aware, a fire occurred this morning at approximately 6 am at the ExxonMobil Beaumont refinery. Onsite responders quickly extinguished the fire, and there were no injuries. I understand our shift team posted a voluntary shelter as a precaution, but our initial air quality monitoring are below detectable limits. The voluntary shelter-in-place was promptly lifted. We apologize for any inconvenience and concern this incident may have caused. An investigation will be conducted to determine the cause of this incident."

As MRC wrote previously, there was a fire at the ExxonMobil Chemical plant in Beaumont, Texas, in late March, 2015. The fire in a propylene unit forced the company to shut down the entire chemical plant.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Clariant and Tiangang celebrate first milestone in new production JV for light & process stabilizers in China

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, and Tiangang Auxiliary Co., Ltd., a privately owned producer and leading supplier of light stabilizers in China, has kicked-off their new production joint venture with the go-ahead to purchase a site within the Cangzhou National Coastal-Port Economy and Technology Development Zone, Hebei province, as per the company's press release.

Clariant is a leading supplier of light stabilizer solutions and highly-regarded for its advanced technologies for Plastics & Coatings, such as the innovative HALS technology Hostavin NOW. Clariant and Tiangang intend to build a world-class production facility for the joint manufacture of process and light stabilizers at the location, to support growing local demand for high-end solutions from the region’s expanding industries. Production at the new site is scheduled to come on stream in the first half of 2019. The JV will initially focus on textile-related stabilizers and solutions for the automotive industry.

The assignment of the land for the production plant within the Cangzhou National Coastal-Port Economy & Technology Development Zone was officially confirmed on November 20 by Zhang Guo Dong, Standing Committee Member of Cangzhou Municipal Party Committee of the CPC, Chief Director of the Administrative Committee of Cangzhou Bohai New Area, Li Huafeng, Deputy Secretary of Party Committee, Cangzhou National Coastal-Port Economy and Technology Development Zone, Director of Administrative Committee, and Yu Zengzhou, Deputy Director of Administrative Committee, when meeting with representatives from Clariant and Beijing Tiangang.

Secretary Zhang Guo Dong commented: "With the signing of Clariant's project, Bohai New Area has made another great breakthrough in the introduction of foreign advanced technology. All departments of Bohai New Area are committed to actively providing enterprises with any support they need during the construction of their projects." In addition, Mr. Zhang hopes that the area could explore more opportunities with Clariant based on the existing cooperation so as to introduce more foreign advanced technologies into the area. Zhang is looking forward to completion of the preliminary work and to welcoming Clariant to the area.

Stephan Lynen, Head of Clariant BU Additives, said: "The demand for high-end additives solutions is growing strongly in China. With the merger control clearance successfully confirmed in October, we are pleased to complete this next important step with our trusted partners towards establishing local production that will accelerate response times, shorten supply lead times and deliver tailored solutions to our customers in the growing Asia region, especially in China."

As MRC informed before, 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.

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

Petronas sees stronger 2017 earnings

MOSCOW (MRC) -- Malaysian state energy firm Petroliam Nasional Berhad, or Petronas, has forecast higher full-year earnings for 2017, after posting a 64% jump in third-quarter profit on improved oil prices, reported Reuters.

A higher profit would be the second straight year of improved earnings at Petronas, reversing a two-year profit slump with the help of a modest recovery in oil prices and cost-cutting measures.

"Petronas expects the group's overall year-end performance to be better than last year," the company said, indicating an improved view of the energy market since August, when it expected its annual performance to be "fair".

Petronas Chief Executive Wan Zulkiflee Wan Ariffin said the group remained committed to boosting efficiency across its operations.

"We intend to enhance our efforts to take advantage of the current recovery in oil prices for Petronas to close the year strongly," he said.

Petronas, like other oil majors, has taken a hit from lower oil prices. Brent crude has fallen sharply since 2014, though it has somewhat recovered this year, trading near a two-year high on Thursday.

The firm has focused on cutting costs amid expectations that the low oil price environment will continue. Last year the company said it would cut spending by up to 50 billion ringgit (USD12.2 B) over the next four years.

Petronas is a key contributor to government coffers: its dividends last year accounted for 7.5% of total government revenue. It is one of the country's largest employers with a workforce of over 50,000.

As MRC wrote before, Malaysia's state oil firm Petroliam Nasional Berhad said in January 2017 its new USD27 billion refining and petrochemical complex project in the southeast Asian country is on track for start-up in 2019. Sources familiar with the matter told then Reuters that Saudi Aramco had shelved its plans for a partnership with the company on the Refinery and Petrochemical Integrated Development (RAPID) project.

Petronas plans to build a C6-based metallocene linear LDPE plant and a low density polyethylene (LDPE)/ethylene vinyl acetate (EVA) swing plant at its greenfield integrated refinery and petrochemical complex in southern Johor state by mid-2019. The proposed metallocene LLDPE will have a capacity of 350,000 tpa, while the LDPE/EVA will have a capacity of about 150,000 tpa. The two plants are part of Petronas' planned Refinery and Petrochemical Integrated Development project in Pengerang at Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

Grace licenses polypropylene process technology to KIPIC, Sinochem

MOSCOW (MRC) -- W. R. Grace & Co., a supplier of polyolefin catalyst technology and polypropylene (PP) process technology, has contracted to license its UNIPOL PP process technology to Kuwait Integrated Petroleum Industries Company (KIPIC) for the integrated petrochemical complex at its Al-Zour refinery and Sinochem Quanzhou Petrochemical Co., Ltd. for a 1-MMtpy ethylene cracker and refinery expansion project at its facility in Quanzhou, Fujian province, China, according to Hydrocarbonprocessing.

Expected to open in 2023, the KIPIC complex is designed to produce 940 ktpy of PP, including high-end homopolymer, random copolymer and impact copolymer thermoplastic resins. KIPIC is a subsidiary of Kuwait Petroleum Corporation (KPC), Kuwait’s national oil company. A long-time Grace customer, KPC previously licensed UNIPOL PP Process Technology for an affiliate’s JV.

Sinochem’s 350-ktpy line is expected to begin operations in 2020 to produce high-end impact copolymers. The Quanzhou operation is a subsidiary of Sinochem Group of Beijing, one of China’s four state oil companies and its leading chemical service provider. Sinochem Quanzhou previously licensed UNIPOL PP Process Technology in 2009 for a 200-ktpy line in Quanzhou that started up in 2014.

The project represents the 26th UNIPOL PP Process Technology reactor lines licensed in China. With this license, the total design capacity of UNIPOL PP lines in China will exceed 8,000 ktpy.

Grace's all gas-phase UNIPOL PP Process Technology provides the most advanced and broadest range of homopolymers, random copolymers, and impact copolymers in the industry.

As MRC wrote earlier, in July 2016, BASF closed the previously announced transaction to divest its global Polyolefin Catalysts business to W. R. Grace & Co. Earlier, W.R. Grace acquired Dow's Unipol PP process licensing and related catalyst business for USD510 million in 2013.
MRC