Honeywell helps BASF turn hazardous waste into clean energy at world largest chemical complex

MOSCOW (MRC) -- Honeywell Process Solutions (HPS) has announced that BASF has opened a state-of-the-art control room equipped with Honeywell Experion technology at its waste incineration complex in Ludwigshafen, Germany, reported Hydrocarbonprocessing.

The control room was officially inaugurated on November 28, 2017, by Dr. Uwe Liebelt, president, BASF European Site and Verbund Management, and Vimal Kapur, president of HPS.

Honeywell re-designed the plant's control room with BASF's Industrie 4.0 initiative in mind. Virtualization technology delivers consolidated plant information to operators via eight large-screen Experion Orion Consoles, which also embed traditionally separate Microsoft Office desktop applications alongside the distributed control system one. Two Experion Collaboration Stations enable BASF to run production meetings more efficiently by using real-time data and online documents.

As part of Honeywell's Experion Process Knowledge System, 29 C300 Controllers and 20,000 I/O modules facilitate plant-wide monitoring, improve safety and fire protection, and increase reliability. In addition, a new MediluX lighting system in the control room improves visual conditions for operators day and night, reducing eye strain and fatigue.
"This strategic project is a prime example of how Industrie 4.0 is transforming industrial operations," Kapur said. "Previously, BASF operators had to gather and piece together data to form a high-level view. Now, critical information is digitally consolidated and streamed onto central displays, transforming efficiency, productivity and decision-making."

The plant's six incinerators process hazardous waste that cannot be reused or recycled and convert it into steam and electrical power. The clean, reusable energy is channeled back into BASF's production processes, helping the company save resources and reduce emissions.

"Thanks to excellent cooperation with Honeywell, our 60-year-old plant now has one of the most modern control rooms in the world," said Dr. Karin Flore, head of waste incineration, BASF.

The incineration plant serves more than 200 BASF production facilities within the company's flagship,10-square-kilometer production site as well as facilities outside the BASF complex. The reliability of the plant is critical to BASF's wider production operations because any standstill could potentially affect the world's largest chemical complex as a whole.

We remind that, as MRC wrote previously, within the next five years, BASF plans to invest globally more than EUR200 million in its plastic additives business, approximately half of which in Asia, focusing on capacity expansions and operational excellence. Plastic additives improve product properties such as scratch resistance or light stability, and optimize plastics manufacturing processes. As the leading global supplier of plastic additives with manufacturing assets in all regions, BASF is a major partner to the plastics industry.

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

Oil holds near 2014 high, supported by threat of Nigeria attack

MOSCOW (MRC) - Oil held steady above USD69 a barrel on Thursday, supported by falling inventories of crude and threats of an attack on Nigeria's petroleum industry, although a reported rise in U.S. fuel supplies weighed, said Hydrocarbonprocessing.

Crude is within sight of its highest since December 2014, supported by supply cuts led by the Organization of the Petroleum Exporting Countries and concern that unrest in producer nations such as Nigeria could further curb output.

Militant group Niger Delta Avengers threatened to attack Nigeria's oil sector in the next few days, potentially hampering supplies in Africa's largest exporter. "The impact of such a threat, if carried out, would be significant on the global supply and demand balance," said Tamas Varga of oil broker PVM. "The market is still sensitive to geopolitical developments."

Brent crude, the global benchmark, had slipped 7 cents to USD69.31 by 0943 GMT. On Monday it hit USD70.37, the highest since December 2014. U.S. crude was up 2 cents at USD63.99 and reached its highest since December 2014 on Tuesday. A supply report from the American Petroleum Institute on Wednesday presented a mixed picture, with inventories of gasoline and diesel rising and crude stocks falling. The U.S. government's weekly supply data is due on Thursday. Brent has risen from USD61 a barrel in early December and some analysts say the rally may be about to run out of steam.

"The upside is now limited for oil prices," said Fawad Razaqzada, market analyst at brokerage Forex.com. "U.S. oil producers will ramp up production in the coming months." The U.S. Energy Information Administration (EIA) said on Tuesday it expects U.S. oil output to continue to rise in February with production from shale increasing by 111,000 bpd. The agency previously said U.S. output could reach 10 MMbpd in February and 11 MMbpd in 2019. Even so, traders said prices were unlikely to fall far due to the OPEC-led curbs and the risk of further disruptions.
MRC

HDPE production in Russia grew 10% in 2017

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) decreased in January-December 2017 by 10% year on year to 898,000 tonnes. All Russian producers reduced their output, with Kazanorgsitez being the exception, according to MRC's ScanPlast report.

December production of HDPE in Russia increased to 73,700 tonnes, whereas a month earlier this figure did not exceed 63,700 tonnes. Gazprom neftekhim Salavat and Stavrolen increased PE production. Overall HDPE production reached 898,000 tonnes in 2017, compared to 1,000,000 tonnes a year earlier. Only Kazanorgsintez increased its production, whereas other producers reduced their output because of different reasons.

The structure of HDPE production by plants looked the following way over the stated period.


Russia's December HDPE production at Kazanorgsintez increased to 47,500 tonnes from 46,500 tonnes a month earlier. The Kazan plant's overall HDPE production was 507,700 tonnes in January-December 2017, up by 4% year on year.

Stavrolen last month increased the production of HDPE for long-term preventive maintenance, but did not reach 100% of capacity utilisation. December HDPE production grew to 17,700 tonnes, compared with 8,700 tonnes in November. The plant's HDPE output reached 232,600 tonnes in 2017, down by 14% year on year.

Gazprom neftekhim Salavat decreased capacity utilisation in December, producing about 8,500 tonnes of HDPE against 7,700 tonnes in November (the producer shut the plant for a week long maintenances in November). Overall HDPE production at the Bashkir plant reached 92,200 tonnes in January-December 2017, down by 15% year on year. This year's low production was caused by a long shutdown for maintenance in July-August.

Nizhnekamskneftekhim switched over to production of linear PE in the early November. Thus, only 65,600 tonnes of HDPE were produced in 2017, whereas in 2016 this figure was 135,600 tonnes. Such a noticeable reduction in the output was caused by an increase in the share of linear low density polyethylene (LLDPE) in the total production.


MRC

Ukraine cut the duty on EPS from Europe

MOSCOW (MRC) - Ukraine reduced import duty on European expandable polystyrene (EPS) by 1.6%, according to the ICIS-MRC Price Report, citing data from the Ministry of Economic Development of Ukraine.

Special import duty for the import of goods from the European Union are applied in the framework of free trade between Ukraine and the EU. The Association Agreement between Ukraine and the EU entered into force in full on 1 September, 2017, and its trading part is effective from 1 January, 2016.

According to the document, the import duty on EPS was reduced from 6.5% to 0% during the transitional period of 3 years. In 2017, the rate was at the level of 3.25%. VAT for this group of goods remains unchanged at 20%. To date, EPS is not produced on the territory of Ukraine.

EPS imports decreased by 3% to 29,800 tonnes in January-November 2017 against 30,600 tonnes in the same period last year.

The share of EPS produced by Sibur-Khimprom in the domestic market of Ukraine for eleven months was 54%.
Traders accounted for about 58% of the total import shipments to the country.
MRC

Shell OKs first UK North Sea project in six years

MOSCOW (MRC) - Royal Dutch Shell gave the green light on Monday for an expansion of the Penguins oil and gas field in the UK North Sea, its first major new project in the ageing basin in six years, as per Hydrocarbonprocessing.

Shell said the development, which includes the construction of a floating production, storage and offloading (FPSO) vessel, reaffirmed the Anglo-Dutch company's commitment to the region after it sold around half of its assets there last year. "Penguins demonstrates the importance of Shell's North Sea assets to the company's upstream portfolio," said Andy Brown, director of Shell's oil and gas production, known as upstream.

The FPSO is expected to produce up to 45,000 barrels of oil equivalent per day (boe/d). The Shell-operated Penguins redevelopment is the first major project Shell has announced since 2012, when it made a final investment decision for the Fram field in the central North Sea.

The project will generate a profit even with oil prices below $40 a barrel, Shell said in a statement, making it competitive against other offshore basins and most of North America's shale production. We struggled to make it economic until the last couple of years when we closely worked with supply to redefine and redesign the development to reduce costs," Steve Phimister, head of Shell Upstream in the UK and Ireland, told Reuters.

After Penguins, Shell is expected to decide on a number of new projects in the central North Sea in the next year or two, Phimister said. Shell gave no details on the cost of the project, which analysts at Bernstein last September estimated would be up to USD2.5 billion.

Production in the UK North Sea has steadily declined since the late 1990s but has seen a modest recovery in recent years thanks to a number of new projects, including the BP-operated Quad 204 field in the western Shetlands last year, in which Shell holds a 55 percent stake. Operators have drastically reduced operating costs as a sharp drop in oil prices since 2014 forced companies to become more efficient and service providers to slash costs. Shell's production is currently around 135,000 boe/d in the UK North Sea after completing the sale of a USD3 billion package of assets to private-equity-backed Chrysaor last November, Phimister said. The company intends to maintain its production at this level into 2030, he added.
MRC