Mitsubishi Chemical eyes maintenance at Kashima cracker

MOSCOW (MRC) -- Mitsubishi Chemical is in plans to shut its naphtha cracker for a maintenance turnaround, according to Apic-online.

A Polymerupdate source in Japan informed that the company is likely to undertake planned turnaround at the cracker in early-May, 2018. The cracker is expected to remain under maintenance for a period of around two months.

Located at Kashima in Japan, the cracker has an ethylene production capacity of 540,000 mt/year and a propylene capacity of 260,000 mt/year.

As MRC informed before, in July 2016, Mitsubishi Chemical Holdings unveiled plans to sell its PTA business, the primary raw material used to manufacture various polyester products and polyethylene terephthalate (PET), in India and China amid profitability concerns with oversupply of the acid, mainly from China.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

Phillips 66 expects late 2019 investment decision on ethane cracker

MOSCOW (MRC) -- Phillips 66 expects a final investment decision on building an ethane cracker on the US Gulf Coast by joint-venture Chevron Phillips Chemical Co by late 2019, Phillips 66 Chief Executive Greg Garland said, reported Hydrocarbonprocessing.

Chevron Phillips, a petrochemical joint venture between Chevron Corp and Phillips 66, recently started up a 1.5-million-ton-per-year ethane cracker at its Baytown, Texas, plant and is considering adding a second similar sized unit along the Gulf Coast.

"It seems like appropriate timing to us in terms of (a final investment decision) in late '19 and really get started in earnest in '20 and '21 in the construction," Garland said during a conference call with Wall Street analysts to discuss first-quarter earnings.

As MRC informed before, other companies are also considering new plants in what is shaping out to be another wave of new projects in the US. Meanwhile, Chevron Phillips Chemical is in the midst of commissioning a 1.5m tonne/year ethane cracker at Cedar Bayou, Texas.
MRC

Russian PVC prices will rise by Rb2,500/tonne or more in May

MOSCOW (MRC) -- Negotiations on May shipments of suspension polyvinyl chloride (SPVC) began in Russia on last Wednesday, 25 April. Producers unanimously intend to achieve an increase in prices of Rb2,500/tonne or more, according to the ICIS-MRC Price Report.

April was quite difficult for PVC converters. On the one hand, PVC prices have significantly increased since the beginning of the year, while the prices for finished products have not risen. On the other hand, due to bad weather conditions, some of the converters reported a weaker demand for finished products in March, and April did not bring an improvement in the situation with demand for finished products.

Nevertheless, taking into account the devaluation of the rouble and the growth in the cost of raw materials, producers intended to increase SPVC prices by Rb2,500-3,000/tonne in comparison with the level of April. PVC supply is sufficient in the market, despite the shutdown of the largest producer; RusVinyl has shut its capacities for two-week turnaround at the weekend. The plant's annual production capacity is 330,000 tonnes.

Other producers also limited supply in the domestic market, but they are not critical for the market balance. Chinese producers have significantly reduced their export acetylene PVC prices in the second half of March.

Devaluation of the rouble against the dollar made the purchase of PVC in China unprofitable in April, even taking into account the future rise in price of Russian PVC in May. Some large converters said they have sufficient PVC stock from the purchases in the past months, and in this connection they were not in a hurry to negotiate the Russian supplies of Russian PVC.

Negotiations on May prices for resin with K70 started from Rb68,000/tonne CPT Moscow, including VAT, and reached Rb72,000/tonne CPT Moscow, including VAT. Deals on April prices for PVC with K70 started from Rb68,000/tonne CPT Moscow, including VAT, and reached Rb73,000/tonne CPT Moscow, including VAT.
MRC

Iran, China ink Major petrochemical deal

MOSCOW (MRC) -- Iran’s National Petrochemical Company (NPC) and the China Petroleum and Chemical Industry Federation (CPCIF) signed a memorandum of understanding (MoU) for construction of a petrochemical park in Iran by Chinese companies, as per Hydrocarbonprocessing.

NPC CEO Reza Norouzzadeh and Chairman of CPCIF Li Shousheng signed the document in Tehran.

Speaking about the deal, NPC Director in Investment Hossein Alimorad said it was signed subsequent to an agreement between the presidents of Iran and China back in 2015 for bolstering bilateral relations in the energy section, especially in the petrochemical industry.

He said, based on the MOU, the NPC and China’s NDRC will pursue enhancement of petrochemical relations between the two countries and the project will be constructed after precise considerations by the two sides.

NPC, as the sole custodian of development of the petrochemical industry in Iran, will provide the paramount land for construction of the park by Chinese companies, added Alimorad.
MRC

Jacobs selected by ENCINA for new BTX Plant in Wyoming

MOSCOW (MRC) -- Jacobs Engineering Group Inc. received a contract from ENCINA Chemicals, LLC to provide operations readiness (OR) support services for its new benzene toluene xylene (BTX) processing plant in Gillette, Wyoming, as per Hydrocarbonprocessing.

As part of the front-end loading (FEL 2) phase, Jacobs will evaluate operability, maintainability, layout, operations and maintenance (O&M) guidelines; provide O&M input for the hazard and operability study (HAZOP); and define the size, required capabilities and cost of the O&M workforce.

ENCINA's new processing plant will create BTX with high-value aromatic hydrocarbons containing benzene, toluene and xylene. Also known as hydrogenated pyrolysis gasoline or pygas, these aromatics are extracted for further processing. When commissioned in the summer of 2020, this petrochemical plant will feature a scalable design of 200 to 400 total petroleum hydrocarbon (TPH) and produce approximately 50,000 to 100,000 tons of BTX per year.

"Our advanced Jacobs Operations Readiness and Design for Reliability processes will be implemented on ENCINA's new BTX plant to support the scalability requirements of this facility," said Jacobs Construction, Maintenance and Turnarounds Senior Vice President and General Manager Stephen Hillier. "From initial operability to ongoing maintenance, the safety of the operations and maintenance workforce will be a key focus of Jacobs and ENCINA as we work together on this project."
MRC