Chevron Phillips ethane cracker at Cedar Bayou hits milestone

MOSCOW (MRC) -- Chevron Phillips Chemical Company LP has announced that its world-scale ethane cracker at Cedar Bayou in Baytown, Texas successfully achieved the major milestone of mechanical completion, as per Hydrocarbonprocessing.

The unit is now undergoing a series of rigorous commissioning activities, system checks and final certifications to ensure a safe and reliable start-up, and consistent, on-spec production.

Once operational, the unit is expected to produce at least 1.5 MMmt of product annually. At peak construction, approximately 5,000 workers were employed on this project, helping to spawn additional economic activity across the region.

The new ethane cracker will produce valuable product for the company's ethylene business and feedstock for its ethylene derivatives businesses. The polyethylene (PE) fleet now includes the two new PE units at Old Ocean, Texas, which were also part of the US Gulf Coast petrochemical project (USGC PP).

These units started up in September 2017 and play a critical role in Chevron Phillips Chemical's strategic expansion to meet the growing global demand for PE. These units can produce a wide variety of high quality Marlex polyethylene resins ranging from metallocene LLDPE film to bi-modal film and pipe products, displaying the wide capability of Chevron Phillips chemical Company's proprietary MarTech technology.

In addition to the cracker and PE units, the company has purchased nearly 3,000 newly built rail cars and constructed a state-of-the-art storage-in-transition facility to ship polyethylene via rail to customers both domestically and to ports for export around the globe.

As MRC reported earlier, in June 2017, Chevron Phillips Chemical announced it had successfully completed a low viscosity polyalphaolefins (PAO) capacity expansion at its Cedar Bayou plant in Baytown, Texas. The 20% capacity expansion enables the company to meet the increasing demand for lubricants in automotive and industrial applications. Chevron Phillips Chemical develops and produces PAOs, marketed under the brand name Synfluid PAO, which are used for a variety of applications including engine oils, gear oils and greases.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. With a net income of USD21.42 billion in 2013, Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.

Phillips 66 is a diversified energy manufacturing and logistics company with a portfolio of integrated businesses: Midstream, Chemicals, Refining, and Marketing and Specialties. The company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, its master limited partnership, is an integral part of the portfolio.
MRC

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) and the OCP Group of Morocco (OCP) have announced the signing of a long-term sales agreement whereby ADNOC will supply OCP with granulated sulfur, as per Hydrocarbonprocessing.

Under the agreement, ADNOC, the world’s largest exporter of sulfur, will steadily supply OCP, the largest worldwide sulfur importer, until 2025. The two parties agreed to consider a gradual increase of the contracted annual volumes. ADNOC exported more than 2 MMmt of granulated sulfur to Morocco in 2016.

Significant synergies exist between ADNOC and OCP, allowing the two companies to explore various opportunities for a larger cooperation.

As a by-product of its sour gas operations, ADNOC and partners produce more than 6 MMtpy of sulfur, exporting it to customers from its state-of-the-art sulfur handling facilities in Ruwais. The amount of sulfur available for export will increase over the next decade as ADNOC and partners brings new sour gas projects on line, as part of its plans to achieve gas self-sufficiency by 2030.

As MRC wrote before, in May 2017, ADNOC and OMV signed an agreement, which ment that ADNOC will work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses. The memorandum of understanding, signed in the presence of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and the Austrian chancellor Christian Kern, covers cooperation on new downstream projects, refining operations, refinery-petrochemical integration and optimisation, and technical and maintenance support.
MRC

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MRC staff.

mrcplast.com

MOSCOW (MRC) - Production of polypropylene (PP) in Russia grew to about 1.273 mln tonne in first eleven months of this year, up 2% year on year, compared to the same period of 2016. The greatest increase in production was shown by SIBUR Tobolsk and Tomskneftekhim, according to MRC ScanPlast.

November PP production in the country grew to 115,300 tonnes, compared with 108,000 tonnes in October; Ufaorgsintez, Tomskneftekhim and Nizhnekamskneftekhim increased their capacity utilisation. In general, in January-November PP production in the Russian Federation approached the level of 1.273 mln tonnes against 1.251 mln tonnes a year earlier, the greatest increase in production showed SIBUR Tobolsk and Tomskneftekhim, while Neftekhimiya, Stavrolen and Nizhnekamskneftekhim lowered production indicators.

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

The largest producer of PP in Russia - SIBUR Tobolsk in November produced about 45,900 tonnes against 46,900 tonnes a month earlier.
SIBUR Tobolsk's PP production exceeded 463,900 tonnes in January-November 2017, up 12% year on year. Such a major increase in the output was caused by the absence of the plant's shutdown for a scheduled maintenance this year.

Nizhnekamskneftekhim increased capacity utilisation in November, total polypropylene production had grew to 18,000 tonnes against 14,200 tonnes in October. The producer's PP production in January-November decreased by 3% from last year's level to 193,300 tonnes.

Poliom (GC Titan) in the last couple of months has seriously limited the capacity utilization, following the results of the last month the production of polypropylene amounted to about 12,600 tonnes against 13,400 tonnes in October. The decrease in production volumes was a result of to the shutdown for preventive maintenance and the work on capacity expansion. Total PP production at the plant over the reported period was about 187,000 tonnes, up 1% year on year.

Tomskneftekhim increased production volumes in November, and the final production of propylene polymers was 12,100 tonnes against 11,400 tonnes in October. Total PP production at Tomskneftekhim over the reported period reached 128,600 tonnes, compared with 117,700 tonnes year on year.

November PP production at Ufaorgsintez increased to about 11,200 tonnes from 10,400 tonnes a month earlier. The producer's PP output at Ufaorgsintez increased to 113,500 tonnes in January-November 2017 compared with 111,700 tonnes year on year.

Neftekhimiya (Kapotnya) decreased capacity utilisation in October, total polypropylene production had decreased to 8,100 tonnes against 10,600 tonnes in October. The producer's PP output in the eleven months of the year reached 94,900 tonnes, up 20% year on year. A low indicator of the current year was a result of a long scheduled maintenance works in March-April.

Stavrolen (LUKOIL) last month worked with a reduced capacity utilisation, the final figure for the production of propylene polymers was 7,300 tonnes against just over 1,000 tonnes in October (the producer in October worked only a few days due to a stop for long repairs) . Overall PP production at the plant reached 92,300 tonnes in January-November, down 11% year on year.


MRC

MOSCOW (MRC) -- Sinopec to double capacity of the Neopentylglycol (NPG) production line at its Yangzi refinery from 40,000 tpy to 80,000 tpy, the company said on Monday, reported Reuters.

Expanded production line will start operation in 2020.

NPG is used as a raw material to produce paints and lubricants.

As MRC informed previously, China's Sinopec group, parent of Sinopec Corp, will invest USD29.05 billion to upgrade four refining bases between 2016 and 2020 to produce higher-quality fuels. Sinopec's upgrades come as China, the world's second-biggest oil consumer, is embracing more stringent fuel standards in its battle against pollution and suffering an overall glut in refining capacity. After the upgrades, the total refining capacity of the four refining sites will reach 130 MMtpy, or 2.6 MMbpd, while ethylene capacity will reach 9 MMtpy
MRC