PP production in Russia grew 2% in 2017

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to about 1.4 mln tonnes in 2017, up 2% compared to 2016.
The greatest increase in production was shown by SIBUR Tobolsk and Tomskneftekhim, according to MRC ScanPlast.

December PP production in the country grew to 126,800 tonnes, compared with 115,300 tonnes in November; SIBUR Tobolsk and Stavrolen increased their capacity utilisation. In general, in January-December PP production in the Russian Federation exceeded the level of 1.4 mln tonnes against 1.377 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 December produced about 46,600 tonnes against 45,900 tonnes a month earlier.
SIBUR Tobolsk's PP production exceeded 510,500 tonnes in January-December 2017, up 10% 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 decreased capacity utilisation in December, total polypropylene production had decreased to 16,900 tonnes against 18,000 tonnes in November. The producer's PP production in January-December decreased by 3% from last year's level to 210,200 tonnes.

Poliom (Titan Group) also last month increased the capacity utilisation after the problems in November; December PP output was about 18,400 tonnes against 12,600 tonnes a month earlier. Total PP production at the plant over the reported period was about 205,300 tonnes, up 1% year on year.

Tomskneftekhim in December produced about 12,900 tonnes of polypropylene to 12,100 tonnes in November. Total PP production at Tomskneftekhim over the reported period reached 141,500 tonnes, compared with 129,900 tonnes year on year.

December PP production at Ufaorgsintez decreased to about 11,000 tonnes from 11,200 tonnes a month earlier. The producer's PP output decreased to 124,500 tonnes in January-December 2017 compared with 123,100 tonnes year on year.

Neftekhimiya (Kapotnya) decreased capacity utilisation in December, total polypropylene production had increased to 12,200 tonnes against 8,100 tonnes in November. The producer's PP output in 2017 reached 107,100 tonnes, down 17% year on year. A low indicator of the current year was a result of a long scheduled maintenance works in March-April.

Stavrolen (Lukoil) also kept production volumes in December at the lower level, and the final production of propylene polymers was 8,700 tonnes. Overall PP production at the plant reached 101,000 tonnes in January-December, down 10% year on year.


MRC

MOSCOW (MRC) -- India needs investment to the tune of 300 billion dollars in the next 10 years to double its oil refining capacity, reported Hydrocarbonprocessing with reference to Union Petroleum Minister Dharmendra Pradhan's statement.

"Oil refining capacity in the country stands at over 247 million ton at present and demand for petro products, which is rising rapidly, will touch 600 million ton by the year 2040," Pradhan said.

Noting that the country has built a robust refining and petrochemicals sector over the years, the minister said several brownfield projects are already in the pipeline for creating capacities of around 142 million tons.

Pradhan said two major greenfield projects are all set to be launched to add 69 million ton of new refining capacities soon. The Barmer Refinery in Rajasthan will be of 9 mtpa, while the West Coast Refinery and Petrochemicals will create 60 million ton capacity. To achieve the target of 600 million ton capacity, it is necessary to add over 20 million ton almost every year, he said.

Emphasizing the need for a state-of-the-art refining and petrochemical industry, he said it is necessary to concentrate on research and development in the public sector.
MRC

MOSCOW (MRC) -- DuPont has contracted Toyobo to manufacture DuPont Apexa biodegradable polymers, developed by DuPont Industrial Biosciences, using Toyobo's aluminum-based GS Catalyst, as per GV.

Toyobo plans to produce the biopolymers at its Iwakuni production center in Yamaguchi Prefecture, Japan, starting 2018. In addition, the partners have agreed to jointly promote the use of Apexa globally.

"Compared with conventional degradable plastics such as polylactic acids and polybutylene succinate, DuPont Apexa excels in durability and heat-resistance," Toyobo noted.

"It has good processability and practicability, close to those of polyethylene terephthalate plastics," it added.

As MRC informed earlier, on 31 August 2017, Dow Chemical Co and DuPont successfully completed their planned USD130 billion merger to form DowDuPont. Dow and DuPont announced the merger in December 2015.
MRC

MOSCOW (MRC) - Crude oil exports by Iraq state-oil marketer SOMO ran at an average rate of 3.5 MMbpd in January, an Iraqi oil official said on Monday in Baghdad, said Hydrocarbonprocessing.

With two more days left in January, the average of the month could top December's 3.535 MMbpd record, SOMO's acting director general Alaa al-Yasiri told reporters. Total exports for the country should be higher as SOMO does not control oil sales from the northern semi-autonomous Kurdistan region, estimated at more than 200,000 bpd.

"SOMO's recent export rate increase is not due to higher production, but to a drop in local consumption," he said. It was not immediately clear why consumption had fallen.

Exports could increase further as Iraq plans to start exports next week from the northern Kirkuk oilfield to Iran, using tanker trucks, he said.

Trucking crude to Iran's Kermanshah refinery will come under a swap agreement announced last month by the two countries to allow a resumption of oil exports from Kirkuk. Iraq and Iran have agreed to swap up to 60,000 barrels per day of crude produced from Kirkuk for Iranian oil to be delivered to southern Iraq.

Kirkuk crude sales have been halted since Iraqi forces took back control of the fields from the Kurds in October. Kurdish forces took control of Kirkuk in 2014, when the Iraqi army collapsed in the face of Islamic State. The Kurdish move prevented the militants from seizing the region's oilfields.

Iraq and Iran are also planning to build a pipeline to carry the oil from Kirkuk to avoid having to truck the crude, Luaibi said last month. The planned pipeline could replace the existing export route from Kirkuk via Turkey and the Mediterranean.

With an output of 4.4 MMbpd in December, Iraq is the second-largest producer of the Organization of Petroleum Exporting Countries (OPEC), after Saudi Arabia. The country is producing below its maximum capacity of nearly 5 MMbpd in implementation an agreement between OPEC and other exporters including Russia to curtail global supply in order to support oil prices.
MRC

MOSCOW (MRC) - Pumping on Colombia's southern Transandino pipeline was halted on Sunday after a bomb attack by the ELN rebels spilled crude into a river, state-run oil company Ecopetrol and the military said, as per Hydrocarbonprocessing.

The National Liberation Army (ELN) is in the midst of a renewed offensive against the military and oil infrastructure, after the end of a months-long ceasefire amid peace talks to end more than 53 years of war.

The attack, which occurred late on Saturday in Mallama municipality in Narino province, has not affected exports or crude production at fields in the southern jungle zone along the border with Ecuador, Ecopetrol said.

The 109-mile Transandino has the capacity to transport 85,000 barrels of crude per day.

The ELN, which has some 2,000 fighters, has killed two police officers and one soldier in attacks since the ceasefire ended on Jan. 9. The group on Saturday kidnapped an Ecopetrol contractor repairing damage to the Cano-Limon pipeline, also bombed by the ELN, the army said.

President Juan Manuel Santos has recalled the head of the government's negotiating team at the peace talks in Quito back to Bogota to discuss the future of talks.
MRC