PlasChem Park in Saudi Arabia witnesses steady investor interest

MOSCOW (MRC) -- Sadara Chemical Company (Sadara) has signed an agreement to supply SADIG-ILCO, a new Saudi-German joint venture focused on the manufacture of a wide range of specialty chemicals, with ethylene oxide (EO) and propylene oxide (PO), according to GV.

Under the terms of the supply agreement, SADIG-ILCO’s new PlasChem Park facility will offtake EO and PO from Sadara through the EO and PO pipelines that are being established by Sadara. Using these products as feedstock, the company will manufacture a range of specialty chemicals, some of which will be produced for the first time in the Kingdom of Saudi Arabia. This will further enable the production of market-ready products in several areas, including coatings and adhesives, personal care products and many other industrial applications.

Commenting on the supply agreement, Mohammad Alazzaz, Director of Value Park for Sadara, highlighted the investment opportunities available with the new value chains being produced by the Sadara Chemical Complex, saying, "With Sadara’s products now in the local, regional and global markets, we are able to show investors definitively that the Kingdom is an attractive destination for new and exciting downstream manufacturing opportunities. The specialty chemicals that SADIG-ILCO will produce locally will replace imports and encourage development of new downstream specialty industries. I am pleased to see that Sadara’s investment in the EO and PO pipelines for PlasChem Park by Sadara, coupled with other Kingdom and PlasChem Park specific incentives, have already helped to attract a number of EO and PO investors."

Eng. Ahmad Alubaid, Managing Director, SADIG Industries, highlighted that, "The project is in line with Saudi Vision 2030 and we are thankful for the supportive role of the Ministry of Energy, Industry and Mineral Resources. In addition, we appreciate and thank Sadara for aligning with the vision of developing downstream industries. The EO/PO project is part of SADIG Industries’ growth strategy, and will bring technical know-how to manufacture specialty chemicals in the Kingdom and create quality long-term stable job opportunities. The EO/PO project is part of our third generation project line-up, with an investment of approximately USD 40 million. It forms a key part of a number of projects we are currently working on with a total investment of approximately USD 300 million through which we aim to create more than 300 direct quality jobs. We envision that the project will introduce new chemicals that will enable further downstream industries in the Kingdom and will add value to the local economy and the country’s export portfolio."

Dr. Corvin Volkholz, Technical Director, ILCO, added, "We believe diversification to the existing chemical market in the Kingdom will open new opportunities for further expansion of the Kingdom’s specialty chemicals industry. SADIG-ILCO will allow us to tap the region’s growing demand and expand into Saudi Arabia, as well as the other regional markets. By combining our downstream manufacturing experience and technical expertise with Sadara’s specialty chemicals value chain, we will be able to bring many new and exciting products to the Kingdom."

PlasChem Park is a 12 sq km industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries. PlasChem Park is a key element differentiating Sadara from other petrochemical, chemical and plastics manufacturing projects in Saudi Arabia. It is uniquely positioned to enable and support downstream opportunities in many market segments, including the Hydrocarbon Resin Cluster, Ethylene Oxide/Propylene Oxide (EO/PO) Cluster, Polyurethane Cluster and a Plastics Cluster. These clusters are designed to attract diversified investments into PlasChem Park for downstream applications such as the production of oil and gas chemicals, construction materials, auto components, animal feed, paints and coatings, as well as home and personal care products. There are currently two downstream investments operating in Jubail Industrial City II and several existing investors in the PlasChem Park will conclude their planned project engineering activities by early 2018 with ground-breaking activities set to take place in the third quarter of 2018.
MRC

Total, Borealis, NOVA Chemicals sign a petrochemical JV for US Gulf Coast

MOSCOW (MRC) – Total S.A., Borealis AG and NOVA Chemicals Corporation announced that affiliates of the three companies have signed definitive agreements to form a joint venture in petrochemicals on the U.S. Gulf Coast, as per Hydrocarbonprocessing.

The joint venture – in which Total will own 50% and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50% – will commence subject to customary closing conditions, including receipt of regulatory approvals.

The joint venture will include: the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas
Total’s existing polyethylene 400 kt/y (880 m lb) facility in Bayport, Texas a new 625 kt/y (1.35 b lb) Borstar polyethylene unit at Total’s Bayport, Texas, site, following a decision on the outcome of an acceptable EPC contract.

As announced in March 2017, the new USD1.7 billion ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF existing steam cracker. The project, which is scheduled to start up in 2020, will create around 1,500 jobs during peak engineering and construction activity.

“This agreement is a key milestone for this integrated petrochemicals project. This joint venture is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost U.S. gas,” said Bernard Pinatel, President, Refining & Chemicals, Total. “We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing U.S. and global market for polyethylene."

"The JV with Total and NOVA Chemicals is a key project in advancing our global growth. Not only are we convinced of the excellent cost-economics of this integrated brownfield investment project, but we are also excited to bring our unique product grades based on our Borstar technology to the North American market," said Borealis CEO Mark Garrett.

“A key component of NOVA Chemicals’ growth strategy is to expand beyond our traditionally Canadian footprint by extending our presence in the U.S. Gulf Coast,” stated NOVA Chemicals CEO, Todd Karran. “Partnering with Total and Borealis will allow us to better serve our customers throughout the Americas by delivering a broader slate of products that help make everyday life healthier, easier and safer."
MRC

PVC production in Russia rose by 14% in January

MOSCOW (MRC) - Russia's unmixed polyvinyl chloride (PVC) production reached 89,800 tonnes in January 2018, up 14% compared with the same time a year earlier. All producers showed a significant increase in production, according to MRC ScanPlast report.

January production of unmixed PVC in Russia grew to 89,800 tonnes, compared with 78,900 tonnes in January 2017 and 85,700 tonnes in December 2017. All producers increased capacity utilisation but the main increase showed SayanskKhimPlast and RusVinyl. Total PVC production in Russia reached 906,200 tonnes in 2017.

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


RusVinyl (joint venture of SIBUR and SolVin) produced about 31,200 tonnes of PVC in January, with about 2,800 tonnes of which accounted for emulsion polyvinyl chloride (EPVC), compared to 25,300 tonnes in January 2017 and 29,700 a month earlier. The overall PVC production at RusVinyl in 2017 totalled 312,700 tonnes.

SayanskKhimPlast last month kept sufficiently high level of capacity utilisation, with January PVC production reached 27,100 tonnes, while last year's January and December level reached 22,900 tonnes and 24,800 tonnes, respectively. Total PVC production at SayanskKhimPlast in 2017 was 263,500 tonnes.

Bashkir Soda Company produced about 23,300 tonnes of SPVC in January, compared with 22,700 tonnes in January 2017 and 22,100 tonnes in December 2017. Total SPVC production at Bashkir Soda Company in 2017 was 243,000 tonnes.

Kaustik (Volgograd) in January slightly decreased production, reaching about 8,200 tonnes in SPVC, compared with 8,000 tonnes in January 2017 and 8,100 tonnes in December 2017. Total PVC production at Kaustik (Volgograd) in 2017 reached 87,000 tonnes.


MRC

BP view to 2021: five things to know

MOSCOW (MRC) -- With its full-year results for 2017, BP turns investors' attention to the future, with a reminder of its priorities in the years ahead, according to Hydrocarbonprocessing.

The strategy remains the same: pursuing advantaged oil and gas - be it low cost or higher margin, market-led growth in the downstream, and venturing and low carbon opportunities, all underpinned by safe and reliable operations.

Here are five things to know about BP's plans out to 2021:

1. Whether in 2018 or 2021, safe, reliable and efficient operations remain at the core of BP’s business. The focus on systematic, disciplined and process-driven operations will be constant. Results from 2017 revealed a continued reduction in the overall number of process safety incidents, while personal safety data showed that the frequency of recordable injuries remained below BP’s five-year average.

2. BP expects to add 900,000 bpd from new major projects by 2021, with 35% higher margins on average than its 2015 portfolio. This growth will come from its list of quality upstream projects in advantaged oil basins and gas regions, with developments selected for their lower costs or higher margins.

3. BP’s downstream businesses - including its refineries, petrochemicals operations and fuels marketing and lubricants brands - expect to deliver more than a USD3 billion increase in earnings between 2016 and 2021. More than two-thirds of this growth should come from BP’s marketing businesses, with the remainder from manufacturing.

4. BP is also preparing for a lower carbon future. Activities across the business reflect the commitment to help advance the energy transition, through a strategy and investment choices that are flexible to many different scenarios.

5. The business will keep its focus on returns for shareholders. With disciplined cost and capital spending and a simpler, more efficient organization, BP is already delivering what it outlined in the five-year plan announced in 2017.

As MRC informed previously, British oil and gas company BP will increase investment in the United States after the lowering of tax rates under President Donald Trump, Chief Executive Bob Dudley said in February 2018.
MRC

Clariant launches Telasperse PVC pigment preparations for plasticized and non-plasticized PVC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has added an important new family to its range of colorants for plastics, with the introduction of Telasperse PVC for plasticized and non-plasticized PVC, as per the company's press release.

The new family currently comprises seven colours - one blue, three reds and three yellows - as well as two blacks and a white. More colors will be added in the coming months.

Until now, plasticized PVC compounders and processors have had a limited choice of global suppliers of high quality pigment preparations. The entry of Clariant into this important market will provide a welcome addition to their options.

Telasperse PVC products are free-flowing, dust-free powder pigment preparations, fully dispersed with approximately 40-50% organic pigment. If requested, they can also be supplied in pellet form. They are based on a PVC containing a non-phthalate plasticizer; the stabilization is lead-free.

"With Telasperse PVC pigment preparations, we are opening up new opportunities for PVC compounders and customers manufacturing such products as films and sheets," says Philippe Lazerme, Head of Strategic Marketing Plastics at Clariant BU Pigments. The preparations are also suitable for cables, profiles, and flooring.

"The new pigment preparations keep processing costs low with their ease of incorporation into PVC and their high pigment concentration, while their dust-free form makes them safe to process," Stefan Wannemacher, Head of Technical Marketing at Clariant BU Pigments, adds. "Quality of the pigments is consistently high, ensuring excellent reproducibility in finished products. Especially important for film makers, the excellent dispersion of the pigment yields smooth surface appearance, free of specks, while their high chroma ensures a brilliant shade."

Depending on the size of the business, Clariant can offer specific shades based on existing colorants, and also provide in-depth service, technical advice and support, Lazerme points out.

Selected products in the Telasperse PVC range are suitable for food-contact applications and for toys; they have wide regulatory compliance, including RoHS, EN71-3, 94/62/EG, AP89 (I), and EU 10/2011. Although developed specifically for plasticized PVC, Telasperse PVC can also be used in some rigid PVC formulations.

As MRC informed before, in March 2017, 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.

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