Indian Oil to boost Panipat refinery capacity by two thirds

MOSCOW (MRC) - Indian Oil Corp Ltd plans to increase the capacity of its Panipat refinery by two thirds to 500,000 bpd at a cost of USD3.64 billion, the country's largest refiner said on Wednesday, said Hydrocarbonprocessing.

India is increasing refining capacity to keep pace with the expected growth in fuel demand as Prime Minister Narendra Modi seeks to boost the manufacturing sector.

The energy-hungry nation's refinery capacity has more-than-doubled since the start of the millennium to about 5 MMbpd.

"Another step towards meeting our rapidly growing energy demand," Oil Minister Dharmendra Pradhan said in a tweet, referring to the planned increase in capacity at Panipat.

Indian Oil didn't give a timeline for the expansion. The company, along with its subsidiary Chennai Petroleum Corp Ltd , has a total installed refining capacity of 1.6 MMbpd, according to government data.
MRC

Azelis to distribute hot-cast elastomers from Huntsman in France and Benelux

MOSCOW (MRC) -- The polyurethanes division of Huntsman has appointed Azelis as official distributor of Huntsman Tecnoelastomeri’s Tecnothane products in France and Benelux, as per GV.

Tecnothane hot-cast engineering elastomers are an advanced portfolio of polyurethane-based products from Huntsman Tecnoelastomeri, a specialist systems house based in Italy. Providing good chemical resistance and mechanical, dynamical performance, the products are said to be the ideal material for the manufacture of robust wheels, seals, rollers, pads and other technical parts, that are needed for heavy-duty industrial applications.

Huntsman and Azelis are long-term partners. The two companies started working together in 1993 and the latest supply agreement builds on an existing arrangement. Azelis already distributes core products from Huntsman’s Suprasec MDI product range across most of Europe.

Patrick Hanselaer, Commercial Market Manager Coatings & PU at Azelis, said: "We are delighted to increase our cooperation with Huntsman and look forward to forging a close working relationship with the team at Huntsman Tecnoelastomeri. Our existing knowledge of Huntsman’s operations, and our established distribution network, will enable us to quickly extend the promotion and supply of Tecnothane hot-cast elastomers. We are excited to provide our customers across France and Benelux with access to a family of innovative engineering elastomers plus expert advice on their application across a wide range of industries."

Luca Fanti, Global Techno-Commercial Manager at Huntsman Tecnoelastomeri, said: "At Huntsman Tecnoelastomeri we have a very successful business model in place, which we are looking to replicate around the world. We already have a strong foothold in Europe and a solid customer base for our Tecnothane elastomers. Signing a distribution deal with Azelis will enable us to consolidate this position while looking for new opportunities. We look forward to working with the team at Azelis and extending a long-standing cooperation that has proved productive over the years."

As MRC reported earlier, in April 2015, Azelis qA appointed by Evonik Industries as distributor for the Aerosil and Sipernat ranges of silica products to the Food, Personal Care, and Pharma Industries in Denmark, Sweden, Norway, and Iceland.

Azelis Chemicals is a leading European distributor of speciality and commodity chemicals, with a comprehensive portfolio of innovative products for high-tech solutions. The company source high quality products from leading global manufacturers, supporting customers in diverse markets including chemical producers and pharmaceuticals, I&I/household and cleaning, lubricants/metal working fluids, paper, agrochemicals, textile and leather, water treatment, building, wood preservation, agriculture & horticulture, electronics and salts.
MRC

Lotte Chemical to invest USD47.1 million to ramp up PIA production

MOSCOW (MRC) -- Lotte Chemical Corp. will invest KRW 50 billion (USD 47.1 million) to add production facilities for high value-added purified isophthalic acid (PIA), a move that is expected to nearly double the PIA output of the Korean company to cement its world’s top rank in the field, as per GV.

Lotte Chemical said on Monday (15 Jan 2018) its board approved the KRW 50 billion investment plan to ramp up its production facilities for PIA in Ulsan, South Gyeongsang Province.

PIA is the raw material of polyethylene terephthalate (PET) bottles and unsaturated resins. Only seven makers across the world can currently produce it, and the Korean producer has dominated the global market since 2014.

Following the addition, Lotte Chemical’s PIA production capacity is expected to jump from 460,000 t/y to 840,000 t/y. The added facilities will also house facilities that can manufacture purified terephthalic acid, a company official said, adding that an increase in output of the two high-value added products would help the company improve profitability and price competitiveness. The company aims to complete its construction by the second half of next year.

As MRC wrote before, in May 2016, Lotte Chemical Corp. has finalized the takeover of Samsung Group’s chemical units.The company said that it paid for money to acquire Samsung SDI Chemical on Apr. 29 and completed the acquisition of Samsung Group’s chemical businesses in about six months after the announcement of "Big Deal" in October 2015. Samsung Fine Chemicals, which was completely taken over by Lotte in Feb., changed its name to Lotte Fine Chemical, while SDI Chemical, which completed the acquisition process on the 29th, changed its name to Lotte Advanced Materials through the general meeting of stockholders.

Established in 1976, Lotte Chemical has been solidifyng its position by localizing cutting-edge petrochemical technologies. Among the high-quality products produced by Lotte Chemical through its efficient processes are ethylene, HDPE, LDPE, LLDPE, PP, functional resin, EG, SM, PIA, PET, etc. Lotte Chemical’s products are being distributed to 152 countries around the world. With the acquisition of Pakistan’s PTA in 2009, Artenius in the UK in 2010 and Titan Chemical Corp., Lotte Chemical is now able to efficiently supply excellent products to an increasing number of countries. The company is further accelerating its efforts to strengthen its global competitiveness by establishing overseas branches in Hong Kong, Russia, and USA, along with the sales corporation in China for active sales activities both in domestic and abroad.
MRC

SIBUR appoints Karisalov as CEO

MOSCOW (MRC) -- SIBUR has updated its Articles of Association and now has two single-member executive bodies, namely Chairman of the Management Board of SIBUR Holding and CEO of SIBUR. This decision results from the previously initiated processes seeking to separate strategic management from operational to further enhance management efficiency, as per company's press-release.

The Chairman of the Management Board of SIBUR Holding is in charge of overall management of SIBUR Holding and overseeing its strategic processes. The CEO of SIBUR is responsible for the Company's ongoing development and is the chair of the Management Board of SIBUR. This management system is designed to facilitate SIBUR’s development strategy implementation in the most balanced way.

Dmitry Konov remains the Chairman of the Management Board of SIBUR Holding. Mikhail Karisalov, previously Chief Operating Officer of SIBUR, was appointed as the Company’s CEO and Chairman of the Management Board.

Mikhail Karisalov was born on 11 June 1973 in Leningrad. He graduated from the Russian Presidential Academy of Civil Service (currently, Russian Presidential Academy of National Economy and Public Administration); also from Tyumen State Oil and Gas University. Since 2003, Mr Karisalov held various positions in SIBUR such as Advisor to President, Procurement Director, Head of Logistics and Capital Construction, CEO of SiburTyumenGaz (SIBUR Group).

2006–2011: Vice-President – Head of Hydrocarbon Feedstock Department of SIBUR.

Since June 2007: Member of the Management Board of SIBUR Holding.

Since November 2009: Member of the Management Board of SIBUR. 2009–2012: concurrently CEO of Tobolsk-Polymer (SIBUR Group).

Since January 2012: Deputy Chairman of the Management Board – Executive Director of SIBUR, the management company of SIBUR Holding.

Since 2016: Chief Operating Officer of SIBUR.
MRC

The price rise of Russian SPVC continues in February

MOSCOW (MRC) -- Negotiations over February shipments of suspension polyvinyl chloride (SPVC) began in Russia between producers and converters last week. All producers announced a Rb1,000-2,000/tonne price reduction from January, according to ICIS-MRC Price report.

The growth of prices for suspension PVC in the Russian market began in January, and local producers also announced price increases for February deliveries. A serious increase in exports in December - January helped Russian producers to balance the domestic market in a low season.

PVC prices began grow dynamically In foreign markets in December, which affected the Russian market recently.
At the same time, the current appreciation of the rouble against the dollar does not save the situation for converters. Deals for February deliveries were discussed at Rb1,000-2,000/tonnes higher than the level in January.

PVC prices began to rise in Asia in December, and the upward trend continued in January. PVC prices from Chinese producers, the main importers of PVC in Russia, exceeded USD900/tonne, DAP Moscow in the end of January. That even in the current strengthening of the rouble against the dollar does not make the prices of Chinese PVC comparable to the price of Russian producers.

Demand for PVC from Russian consumers has traditionally been very low in January-February due to the seasonal factor, but this year producers have been more prepared for this scenario, having significantly increased exports (PVC exports in December exceeded 21,000 tonnes). Some producers increased PVC prices in January by Rb1,000/tonnes.

Many converters complained that, if they accept the price rise in February, they will have to raise prices for finished products, while demand for finished products leaves much to be desired. But they realised that there is no alternative to the Russian PVC, even taking into account the increase in prices.

Some producers do not rule out further growth in PVC prices in March, including due to the situation in the PVC market in Asia.

Overall, deals for January shipments were done in the range of Rb63,500-65,000/tonne CPT Moscow, including VAT, for K=65/67 and for volumes up to 500 tonnes. Negotiations over prices for resin with K70 started from Rb63,500/tonne CPT Moscow, including VAT, and higher. Prices for PVC with K58 were on average up by Rb1,000/tonnes than PVC with K70.
MRC