Total and Sonatrach launch engineering studies for petrochemical project in Algeria

MOSCOW (MRC) -- As part of the comprehensive partnership announced in 2017, Total has signed an agreement with Sonatrach to launch the engineering studies for a petrochemical project in Arzew, western Algeria, as per the company's press release.

The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tons per year. The project represents an investment of around USD1.4 billion by the two partners (Sonatrach 51%, Total 49%), who are planning to start the front-end engineering and design (FEED) this summer, subject to approval by the relevant Algerian regulatory authorities. The facility will valorize propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly. It will supply in priority the local and Mediterranean demand and Total will be responsible for the commercialization of the rest of the production in Europe, where it will leverage its market expertise to the benefit of both partners.

"This project in Algeria illustrates our petrochemical growth strategy which consists of expanding our activities from competitively advantaged feedstock, especially derived from gas, to take advantage of the growing global plastics demand. This polypropylene project complements our other projects announced recently in the United States, in the Middle-East and in Asia, which are primarily focused on polyethylene” commented Patrick Pouyanne, Chairman and Chief Executive Officer of Total. "It is also an opportunity to strengthen our cooperation with Sonatrach, by moving beyond our long-standing exploration and production relationship to invest in the downstream together."
MRC

MOSCOW (MRC) -- The Clinton Complex of LyondellBasell, one of the world's largest plastics, chemicals and refining companies, celebrated its 50th anniversary commemorating the plant's rich history and the strong economic impact the plant has had on Clinton, IA, as per Hydrocarbonprocessing.

"I am so proud of the men and women who have come through the doors here, who have built careers and raised generations of families in this community," said Bob Patel, chief executive officer of LyondellBasell. "I want to thank all of the staff, past and present, who have made today possible and my gratitude to the city of Clinton, the great state of Iowa and the leaders here today that have supported common sense policies that allow businesses to grow and thrive."

The Clinton Chamber of Commerce kicked off the event with a ribbon cutting ceremony recognizing the investment LyondellBasell recently made into a centralized operations center. The nearly $50 million operations center features a state-of-the-art control room, maintenance shops and testing laboratory with the most cutting-edge equipment in the industry.

"In addition to employing hundreds of Iowans and engaging and investing considerably in their community, LyondellBasell's impact extends beyond Clinton to the entire state of Iowa," said Iowa Governor Kim Reynolds. "For fifty years, they've been a solid contributor to our economy's billion-dollar manufacturing industry, and I'm confident Iowa can depend on them to continue to advance the products and packaging the entire world relies on every day."

Over five decades, the Clinton Complex has invested extensively in the economic growth of the Clintoncommunity with expansions that have more than tripled the original planned production from 380 million pounds to 1200 million pounds per-year with their most recent expansion of 100 MM pounds increase in capacity.
MRC

MOSCOW (MRC) -- SABIC and ExxonMobil said that they have created a new joint venture to advance development of the Gulf Coast Growth Ventures project, a 1.8 million tonne ethane cracker currently planned for construction in San Patricio County, Texas, as per Hydrocarbonprocessing.

The facility will also include a monoethylene glycol unit and two polyethylene units.

"We are very pleased to announce the creation of what is now planned to be the third joint venture between our two companies," said SABIC vice chairman and CEO Yousef Al-Benyan. "We look forward to the next phase of the project, which supports not only our goals for global diversification, but also supports Saudi Vision 2030. In addition, we are proud of the role the project will play in enhancing the economic profile of San Patricio County, Texas," Al-Benyan stated.

SABIC is the operating partner for two long-standing joint ventures with ExxonMobil in the Kingdom of Saudi Arabia, Kemya in Jubail and Yanpet in Yanbu.

Creation of the new joint venture represents a key milestone that allows the two companies to continue advancing the project, which is expected to create 600 new, permanent jobs, about 3,500 indirect and induced jobs during operations, as well as 6,000 construction jobs during the peak of construction.

"The new joint venture expands our long relationship with SABIC and builds on the success of several other joint projects," said John Verity, president of the ExxonMobil Chemical Company. "The project will create value not only for both of our companies, but for the surrounding communities through the creation of jobs and economic growth. We appreciate the support we’re receiving, and look forward to continuing our conversations with San Patricio County residents and businesses as we progress."

Construction of the project, announced in 2016, is pending completion of the environmental permitting process. The plant is expected to be operational in the 2021-2022 timeframe.

We remind that, as MRC informed before, in response to customer needs, in February 2018, SABIC announced projects in Asia and the Netherlands designed to increase global capacity for two of its high-performance engineering thermoplastic materials, Ultem and Noryl resins. The planned new production facility in Singapore is expected to go online in the first half of 2021. The company also plans to recommission operations at its Bergen op Zoom PPE resin plant in the Netherlands by the end of 2019 to produce polyphenylene ether (PPE), the base resin for its line of Noryl resins and oligomers.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- PetroChina Daqing Petrochemical has shut its No.1 high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant for a maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company has commenced maintenance at the plant on May 10, 2018. The exact duration of shutdown could not be ascertained.

Located in Heilongjiang, China, the No.1 HDPE/LLDPE swing plant has a production capacity of 250,000 mt/year.

As MRC wrote before, on 8 March 2018, PetroChina Daqing Petrochemical restarted operations at its LLDPE plant following a brief maintenance. The plant was taken off-stream for maintenance on March 5, 2018. Located in Daqing, China, the plant has a LLDPE production capacity of 60,000 mt/year.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) grew in the first four months of 2018 by 6% year on year to 322,200 tonnes. All producers increased their output, according to MRC's ScanPlast report.

Some Russian producers reduced their capacity utilisation in April, the total output of unmixed PVC was 75,400 tonnes versus 81,500 tonnes a month earlier. Overall PVC production reached 322,200 tonnes in January-April 2018, compared to 302,600 tonnes a year earlier. All plants raised their production, with SayanskKhimPlast accounting for the greatest increase in the output.

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

RusVinyl (joint venture of SIBUR and SolVin) produced 20,900 tonnes of PVC in April, with 1,700 tonnes accounting for emulsion polyvinyl chloride (EPVC), compared to 30,800 tonnes a month earlier. The Nizhny Novgorod producer shut down its production for a scheduled turnaround in the third decade of April. The maintenance was finished in early May. Thus, RusVinyl's overall production of resin reached 105,500 tonnes in the first four months of 2018 versus 102,600 tonnes a year earlier.

SayanskKhimPlast increased its capacity utilisation last month, the plant's production of suspension polyvinyl chloride (SPVC) reached 24,300 tonnes, whereas this figure was 19,800 tonnes in March. The Sayansk plant managed to produce 96,200 tonnes of resin in the first four months of the year, compared to 83,500 tonnes a year earlier.

Bashkir Soda Company (BSC) produced 22,300 tonnes of SPVC in April, whereas 22,900 tonnes were produced in March. The Bashkir plant's overall production of resin was 89,100 tonnes in January-April 2018, up by 3% year on year.

Kaustik (Volgograd) slightly reduced its production last month, the plant's overall SPVC output was 7,900 tonnes versus 8,000 tonnes in March. The plant's overall production of resin reached 31,400 tonnes over the stated period versus 30,300 tonnes a year earlier.

MRC