Ukrainian imports of PP in Q1 remained at the level of 2017

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled 28,400 tonnes in the first three months of the year, which was practically equal to the level in the same time a year earlier. The decrease in demand for homopolymer PP was offset by the growth in demand for propylene copolymers, according to MRC DataScope.

March PP imports into Ukraine rose to 9,700 tonnes, compared with 8,900 tonnes in February; the main increase accounted for the supply of propylene copolymers. Overall imports of propylene polymers reached 28,400 tonnes in January-February 2018, which is practically the same as in Q1 2017. Demand grew only for propylene copolymers, with PP random copolymer accounting for the greatest increase.

The structure of PP imports by grades looked the following way over the stated period.

March imports of homopolymer PP to the Ukrainian market dropped to 6,200 tonnes from 6,500 tonnes a month earlier. Homopolymer PP raffia grade from Saudi Arabia accounted for the main decrease. Overall shipments of homopolymer PP reached 20,200 tonnes in the first three months of 2018, down by 9% year on year.

March imports of PP block copolymers into the country increased to 1,300 tonnes, compared with 1,100 tonnes in February. Demand for injection moulding propylene copolymers improved from local companies. About 3,300 tonnes of PP block copolymers were imported over the stated period, whereas this figure was slightly over 2,900 tonnes a year earlier.

March imports of PP random copolymers reached 2,000 tonnes versus 1,200 tonnes a month earlier, demand for PP increased from pipes and injection moulding products producers. Overall imports of PP random copolymer reached 4,400 tonnes in January-March 2018, whereas this figure was 2,800 tonnes a year earlier.

Overall imports of other propylene copolymers were about 580 tonnes over the stated period.


MRC

MOSCOW (MRC) -- McDermott International, Inc. and CB&I announced that, following the closing of the combination, the combined company intends to retain the name McDermott, according to Hydrocarbonprocessing.

"The name McDermott provides a strong foundation for the combined company and a platform on which we can build our future together," said McDermott President and Chief Executive Officer David Dickson, who will continue to lead the combined company. "We are known today as a company that delivers excellence in project execution in a cost-efficient delivery structure for the global energy industry. Together, McDermott and CB&I will have the integrated technology, engineering expertise, unmatched experience and global reach to design and build the energy infrastructure of the future."

CB&I’s industry-leading business that provides proprietary process technology licenses, associated engineering services, catalysts and engineered products will use the Lummus brand name. Lummus also offers process planning, project development services and a comprehensive program of aftermarket support primarily for the petrochemical and refining industries. The Lummus business will be housed with the combined company’s leading edge initiatives, including McDermott’s "Digital Twin” software platform Gemini XDTM, under the umbrella of McDermott Technology.

CB&I’s world-renowned tank business will also keep its current branding. CB&I has the most extensive global experience of any storage tank construction company in the industry, having built in excess of 46,000 storage structures in more than 100 countries on all seven continents.

The combination is expected to close in May 2018. It remains subject to customary conditions, including approval by McDermott’s and CB&I’s stockholders and other closing conditions.

As MRC informed before, Clariant, a world leader in specialty chemicals, has been 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.The Dongguan plant will be one of the largest single-train dehydrogenation units in the world. Clariant's technology partner CB&I will base the plant's design on its Catofin catalytic dehydrogenation technology, which uses Clariant's tailor-made Catofin catalyst and Heat Generating Material (HGM).
MRC

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) announced it is establishing a new trading unit within its Marketing, Sales and Trading Directorate, as per Hydrocarbonprocessing.

The unit will introduce and manage non-speculative trading to further maximize value from every barrel of crude oil and refined product that is produced and marketed by the company.

As ADNOC accelerates delivery of its 2030 strategy, the trading unit will capitalize on the size and scale of the company’s crude oil and refined products portfolio, the flexibility within ADNOC’s refining system, and will leverage synergies and integration opportunities across its downstream value chain.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: "As ADNOC grows and expands its upstream and downstream businesses, we will produce more products, and in turn, our Marketing, Sales and Trading function will play an even more critical role. Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations.

“By utilizing the flexibility in our downstream production facilities, accessing market opportunities and optimizing our supply chain, particularly to key growth markets, we aim to capture more value further along the value chain. Proactively managing our crude oil and refined product flows across key geographies, combined with the optionality provided by our first-class assets and geographic location, will allow us to constantly optimize our operations, capture market opportunities, and secure the highest value."

ADNOC will set out the roadmap for its downstream growth strategy when it hosts its Downstream Investment Forum, in Abu Dhabi next month, at which it will also provide details of co-investment opportunities across its downstream value chain for new and existing partners.

"Looking out over the next two decades, we anticipate the sharpest growth within the energy sector will be petrochemicals, with demand forecast to climb 150 percent by 2040," H.E. Dr. Al Jaber said. "To capitalize on this opportunity and make ADNOC more resilient against possible price volatility, our goal is to become a major global downstream player, creating a strong pull for our products, combined with the flexibility to respond quickly to shifting market needs."

As MRC wrote previously, ADNOC plans to almost triple its petrochemical production to an annual 11.4 MMt by 2025 from 4.5 MMt at present, group chief executive Sultan Al Jaber said in November 2016.

ADNOC's petrochemicals are produced by Abu Dhabi Polymers Co (Borouge), which makes polyolefin, and Ruwais Fertilizer Industries (Fertil), which produces urea and ammonia fertilisers.
MRC

MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed the purchase of Demilec, one of North America's leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems, as per Hydrocarbonprocessing.

Huntsman acquired the business from an affiliate of Sun Capital Partners, Inc., for USD350 million, subject to customary working capital adjustments, in an all-cash transaction which was funded from available liquidity.

The acquisition of Demilec is aligned with Huntsman's stated strategy to grow its downstream polyurethanes business and leverage its global platform to expand Demilec's portfolio of SPF formulations into international markets. The acquisition will generate substantial synergies as a result of Huntsman's ability to pull through significant volumes of lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.

Demilec has annual revenues of approximately USD170 million and two manufacturing facilities located in Arlington, Texas and Boisbriand, Quebec where it produces a full suite of MDI based SPF formulations which it markets directly to applicators as well as through distributors. Demilec specializes in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content that are eco-friendly, bio-preferred and reduce energy consumption through highly efficient insulation properties.

Peter Huntsman, Chairman, President and CEO commented on the acquisition: "This is a great fit for our downstream growth strategy. We are excited to have Demilec become part of our growing Polyurethanes business. We expect to integrate the business fully by the end of this year when we expect to enjoy integrated SPF EBITDA margins greater than 25%."

Tony Hankins, President of Huntsman's Polyurethanes division, added: "Our approach to integration will ensure that the Demilec team remains focused on meeting the needs of their customers while benefiting from access to Huntsman's raw material supply, innovation capabilities and established global network."

As MRC informed before, in mid-March 2018, Huntsman Corporation announced the acquisition of Demilec, one of North America’s leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners, Inc.

Huntsman – international chemical company, which occupies a leading position in the production of polyurethane catalysts, epoxy adhesives, epoxy powder coating, aerospace composite materials, electrical insulating materials, textile chemicals, polyetheramines, carbonates of ethylene and propylene, and maleic anhydride.
MRC

MOSCOW (MRC) - Chinese private chemical producer Hengli Group has won state approval to import 400 Mbpd crude oil, the largest quota ever for a private refiner, as it challenges the country's smaller independent plants in an oversupplied Chinese fuel market, as per Reuters.

The group's listed unit Hengli Petrochemical said in an exchange filing late on Thursday that the National Development and Reform Commission (NDRC), the state economic planner, had approved the quota. The firm aims to start trial runs in October at a newly built refinery in the northeastern port city of Dalian that will be among the five biggest refineries in China.

"We will start using our quota this year," said a senior Hengli official, who declined to be identified because he was authorized to speak to the media. "We hope to get enough allowances for the refinery to start trial operations in October."

Another private chemical firm, Zhejiang Ronsheng Group, is also expected to start operating a new 400 Mbpd refinery in the eastern city of Zhoushan later this year.

The additional production capacity in China is likely to add to pressure on the country's small, independent, or "teapot", refineries, which are vulnerable to increased competition because of their modest output. Many "teapot" refineries produce less than 100 Mbpd. "Hengli's world-class scale, sophisticated refinery configuration that favors high-end petrochemicals and its location means it will be a killer competitor to teapots," said Harry Liu.

With the government stepping up scrutiny over their tax and environmental practices, Liu predicted some of the smaller of the independents close in the next two years as a result of the competition.

Hengli started as a small chemical fiber maker and operates a 6.6 million tonnes per year plant making purified terephthalic acid (PTA), the world's largest. PTA is a feedstock for producing polyester.

Although the NDRC grants approval for quotas, the Commerce Ministry determines how much of a quota can be put to use. "For next year, we are confident of getting 20 million tonnes of allowances from the government," the senior Hengli official said.

He said the refinery's two crude distillation units (CDU) are designed to process 30 percent of Saudi Arabia's Arab Medium crude, 60 percent of Saudi Heavy and 10 percent Qatar Marine crude. The company has recently applied for a quota to export fuel oil.
MRC