BASF declares force majeure for MDI production in Chongqing

MOSCOW (MRC) -- BASF has declared force majeure for its methylene diphenyl diisocyanate (MDI) production in Chongqing, China, on 12 December 2017, due to a supply shortage of natural gas at its syngas supplier, as per GV.

According to the company, the supplier has not yet provided a timeline for restart of the syngas. BASF said it will inform customers of the MDI plant restart as soon as syngas supply resumes.

As MRC informed before, in early 2017, BASF completed a capacity increase of its MDI production facilities at the company's Verbund site in Antwerp, Belgium. The capacity increase brings the annual production of MDI in Antwerp from 560,000 metric tons per year to 650,000 metric tons per year.

MDI is an important component for polyurethanes – an extremely versatile plastics material. It contributes to improved insulation, provides lighter materials for cars, and helps save energy in buildings.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Mexichem announced that its joint venture, Petroquimica Mexicana de Vinilo (PMV), a co-investment with PPQ Cadena Productiva, a subsidiary of Pemex Etileno (PPQC), and of Mexichem’s Vinyl Business Group, has decided not to rebuild its Vinyl Monochloride (VCM) production capacity, said Refiningandpetrochemicals.

Therefore, the joint venture’s VCM production, and the assets and liabilities associated with ethylene production and auxiliary services associated with VCM and ethylene will be classified as discontinued operations in Mexichem’s financial statements for the years 2015, 2016 and 2017.

The discontinued operation will not have an impact in PMV’s cash balance or cash flow (See Annex1). It is important to mention that Mexichem, PPQC and Pemex Etileno will continue to evaluate the possibility of investing in the future, jointly or separately, through PMV or another vehicle, in businesses related to the existing ones or in other types of businesses.

It is publicly known that on April 20, 2016 there was an explosion in the VCM plant of the Pajaritos Petrochemical Complex where two of the three plants are located, the VCM plant and the ethylene plant; as well as auxiliary services, such as energy generation and production, steam sales and water treatment. The VCM plant (Clorados III) was the one damaged. The chlorine and caustic soda production plant is located at a separate site.

This represents the exit of PMV from the VCM and ethylene businesses in Mexico, but not the chlorine-soda business, whose plant will continue to be operated by PMV, and therefore the alliance between the PPQC subsidiary of PEMEX Ethylene and Mexichem will remain in place.

PMV’s decision to exit the VCM and Ethylene businesses does not impact Mexichem’s guidance for EBITDA growth for 2017, which is expected to be between 20% and 25% above the $884 million reported in 2016.
MRC

MOSCOW (MRC) — Iraq has given foreign energy companies a month to signal their interest in building a new export pipeline from the Kirkuk oilfields in the north of the country, as per Reuters.

The new pipeline will replace an old and severely damaged section of the Kirkuk-Ceyhan pipeline. It will start from oilfields near Kirkuk and extend to the Fish-Khabur border area with Turkey. Iraq's oil ministry set Jan. 24 as the deadline for companies to submit letters of interest in building the new pipeline, the ministry said in a statement.

The 350-km pipeline which will have the capacity to transport more than 1 MMbpd and will be run under an investment model known as "build-operate-transfer," oil ministry spokesman Asim Jihad said.

Under the project terms, the interested companies or consortia should also build a gas pipeline, pumping stations and facilities for crude storage.

Jihad said interested companies must pay the project costs and can then recover them after operating the project for an agreed period of time. Exports from oilfields in Kirkuk have been on hold since Iraqi government forces took control of them from the Kurds last month in retaliation for a Kurdish referendum on independence which was widely opposed by Turkey, Iran and Western powers.

Kurdistan has built another pipeline for Kirkuk exports to the Turkish Mediterranean port of Ceyhan after the old Kirkuk pipeline belonging to the federal government had been damaged by Islamic State militants.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced its new dedicated 3D Printing business to meet the demand of the fast-changing Additive Manufacturing market for premium and customized 3D printer filaments, said the producer on its site.

Additive Manufacturing (AM) is growing at a rapid pace globally, with over 28% average annual growth for each of the last 7 years, and generating a total of $6.063 billion in sales in 2016 (Wohlers Report 20171). Additive Manufacturing has moved from a niche technology to an industry where unique products are produced, for example today over 90% of the plastic shells for in-the-ear hearing aids are manufactured using AM (Wohlers Report 2017). Products manufactured using AM are often complex end-use parts such as air ducts, drones, lights, and parts for manufacturing equipment. These products can be enhanced with tailored high quality and ready-to-print materials that also withstand the wear and tear of prolonged usage.

The new Clariant 3D Printing business leverages the company's numerous years of experience in tailoring polymers for a broad range of end market applications with pigments, additives and masterbatches, to provide high-grade, 3D printer filaments and specially made solutions. Clariant 3D prints and tests all of its materials to ensure printability and the required consistent high quality. Extensive material, application and production expertise allows Clariant to work closely with customers on polymer, additive and colorant selection to address typical end-use conditions such as weathering (sunlight, UV exposure), flame retardancy and electrical properties. In addition to tailored materials, a portfolio of high quality standard material will also be offered. The 3D printing materials are manufactured by Clariant and are available in flexible lot sizes to meet the specific needs of customers.

"At Clariant we have all the capabilities to produce high-grade ready-to-print 3D printer filaments," said Richard Haldimann, Head of New Business Development of Clariant. "We are experienced in delivering specialized and tailored solutions to customers via our Plastics & Coatings businesses. The existing Clariant production infrastructure provides the 3D Printing business with a global footprint to offer desired 3D printer filaments across the world."

As MRC reported earlier, 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

MOSCOW (MRC) — China exported no oil products to North Korea in November, Chinese customs data showed, apparently going above and beyond sanctions imposed earlier this year by the United Nations in a bid to limit petroleum shipments to the isolated country, as per Reuters.

Tensions have flared anew over North Korea's ongoing nuclear and missile programs, pursued in defiance of years of U.N. resolutions. Last week, the U.N. Security Council imposed new caps on trade with North Korea, including limiting oil product shipments to just 500,000 bbl/yr. Beijing also imported no iron ore, coal or lead from North Korea in November, the second full month of the latest trade sanctions imposed by U.N.

China, the main source of North Korea's fuel, did not export any gasoline, jet fuel, diesel or fuel oil to its isolated neighbor last month, data from the General Administration of Customs showed on Tuesday. November was the second straight month China exported no diesel or gasoline to North Korea. The last time China's jet fuel shipments to Pyongyang were at zero was in February 2015.

"This is a natural outcome of the tightening of the various sanctions against North Korea," said Cai Jian, an expert on North Korea at Fudan University in Shanghai. The tightening "reflects China's stance", he said. Chinese Foreign Ministry spokeswoman Hua Chunying said she didn't know any details about the oil products export situation.

"As a principle, China has consistently fully, correctly, conscientiously and strictly enforced relevant U.N. Security Council resolutions on North Korea. We have already established a set of effective operating mechanisms and methods," she said at a regular briefing on Tuesday, without elaborating.

Since June, state-run China National Petroleum Corp (CNPC) has suspended sales of gasoline and diesel to North Korea, concerned that it would not get paid for its goods, Reuters previously reported. Beijing's move to turn off the taps completely is rare.

In March 2003, China suspended oil supplies to North Korea for three days after Pyongyang fired a missile into waters between the Korean Peninsula and Japan. It is unknown if China still sells crude oil to Pyongyang. Beijing has not disclosed its crude exports to North Korea for several years.

Industry sources say China still supplies about 520 Mt, or 3.8 MMbbl, of crude a year to North Korea via an aging pipeline. That is a little more than 10,000 bpd, and worth about USD200 MM a year at current prices.

North Korea also sources some of its oil from Russia. Chinese exports of corn to North Korean in November also slumped, down 82% from a year earlier to 100 t, the lowest since January. Exports of rice plunged 64% to 672 t, the lowest since March.
MRC