Curacao refinery runs slow as PDVSA port backlog starts to ease

MOSCOW (MRC) -- The 335,000-barrel-per-day Isla refinery operated by Venezuela’s state-run PDVSA in Curacao is working at minimum capacity while awaiting new crude shipments and as a tanker backlog in the country’s ports began to ease, four sources close to the facility told Reuters.

PDVSA’s operations this year have been mired by problems ranging from fast-declining crude production and poor refining due to a lack of equipment to obstacles for exporting oil amid port congestion and financial sanctions.

Only a few units at the Curacao refinery have been operating during U.S. producer ConocoPhillips’ moves to seize PDVSA’s inventories, cargoes and facilities following a USD2 billion arbitration award by the International Chamber of Commerce in April.

No shipments of Venezuelan oil have been sent to Isla since late April and none were planned this month, according to PDVSA internal trade documents seen by Reuters.

But new crude cargoes could be received by Isla through ship-to-ship, or STS, transfers that would add to its existing inventories and be processed in the coming weeks, the sources said.

"PDVSA has promised the refinery that a new cargo of crude will be delivered. It’s an agreement the parties have already reached," one of the sources said.

PDVSA did not respond to a request for comment.

The Aframax tanker Europride, loaded with Venezuelan crude, is about to sail to Curacao, according to Reuters vessel tracking data and a source from a shipping firm working with PDVSA.

It was not clear how much crude Isla is processing, but most units are out of service due to planned maintenance that started in the first quarter, the sources said. The refinery was to fully restart last month.

PDVSA began using seaborne transfers earlier this month to ease a bottleneck of tankers around its main oil ports that has affected crude exports to customers from the United States to China.

As of June 18, 75 tankers were idled in and around Venezuela’s two largest oil ports, Jose and the Paraguana Refining Center, 20 percent of which were waiting to load crude and refined products for export, according to Reuters data.

The delays affect about 17 million barrels for export, compared with over 24 million barrels earlier this month, indicating a slight easing in the port congestion that had raised the prospect of a force majeure declaration by Venezuela if barrels were not shipped.

PDVSA early this month requested customers not send new tankers to Venezuelan terminals until those already in line were loaded. The decision reduced the number of vessels waiting. Customers not receiving June contracted volumes expect to be compensated in the following months, according to traders.
MRC

TechnipFMC to license KEM ONE Suspension PVC technology

MOSCOW (MRC) -- TechnipFMC announced that it has signed an exclusive cooperation agreement with KEM ONE, Europe’s third-largest producer of polyvinyl chloride (PVC), to support the marketing and licensing of KEM ONE’s Suspension PolyVinyl Chloride (S-PVC) technology, as per Hydrocarbonprocessing.

PVC is a common plastic used in the construction of pipes, doors, windows, cable insulation and signage.
S-PVC is obtained through the polymerization of vinyl chloride monomer in dispersed water. In the last 10 years, KEM ONE has the largest market share in licensing of S-PVC in terms of capacity.

"We are delighted by the signature of this agreement with today’s leading PVC licensor and are pleased to propose to our clients a global portfolio of high quality technologies for the vinyls chain," Stan Knez, Senior Vice President Onshore Process Technology for TechnipFMC said.

TechnipFMC’s operating center in Lyon, France, a center of excellence for polyolefins, chemicals, petrochemicals and bio-sourced products, is managing the agreement and will support KEM ONE’s licensing efforts and prepare the Process Design Packages.

TechnipFMC Process Technology is a global network of centers which look after the company’s expanding portfolio of onshore process technologies in petrochemicals, refining, hydrogen and syngas, polymers and gas monetization.

Kem One, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s third-largest producer of PVC with revenues in excess of one billion euros, Kem One continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC

Clariant breaks ground on JV production in Cangzhou, China

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, and Beijing Tiangang Auxiliary Co., Ltd. (Tiangang), today conducted a groundbreaking ceremony in Cangzhou (China), just over 200 km south of Beijing, as per the company's press release.

The ceremony marked the start of the construction of a world-class production facility for stabilizers for plastics and textiles that will form the heart of the joint venture between both parties. The event was marked by a special event with representatives from both companies, as well as local officials.

The joint venture between Clariant and Tiangang was established in September 2017, and combines the technology and production knowledge of both companies to provide even better process and light stabilizers for various growing industries in China, including automotive and textiles. China is a key market for Clariant high-end process and light stabilizers, which include the state-of-the-art Nylostab S-EED chemistry – invented by the company – a unique multifunctional hindered amine light stabilizer, or HALS. Tiangang, which was founded in 1991, is already an important manufacturer of light stabilizers and UV absorbers, with two plants in China backward integrated with production of key intermediates.

During the ceremony, Clariant Global Business Unit Head of Additives, Stephan Lynen, said: "This new facility enables the successful implementation of our joint venture, and we are excited about the improved proximity to customers and raw material suppliers." Mr. Gang Liu, Deputy General Manager of Tiangang announced: "We look forward to the facility coming on-stream in the first half of 2019 and start serving the growing demand for high-end additives solutions in Asia even faster. The Cangzhou National Coastal-Port Economy & Technology Development Zone is an ideal production base for additives, with very good access to necessary raw materials and other support."

The ground-breaking took place just one day after Clariant officially opened wholly-owned plants for Ceridust® micronized waxes and AddWorks® synergistic additive solutions in Zhenjiang, 1250 km further south. Lynen added that "Clariant is committed to sustainable growth in China and therefore continues to invest across the country to increase its local production capability and competitiveness. I am proud to announce these two instances of the Business Unit Additives making progress on this expansion strategy in such short succession and look forward to leveraging this new capacity towards achieving sales growth supported by new and sustainable developments."

As MRC informed earlier, Clariant announced the official opening of two new, fully-owned additives facilities at its site in Zhenjiang, China. This completes a multi-million CHF investment originally announced last year and puts Clariant’s Additives business in China on track to further expand its offering of customized, high-end solutions for the plastics, coatings & ink industries.

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

JXTG Nippon Oil restarts ethylene cracker

MOSCOW (MRC) -- JXTG Nippon Oil & Energy has resumed operations at its cracker following an unplanned shutdown, as per Apic-online.

A Polymerupdate source in Japan informed that the company has brought on-stream its cracker on June 17, 2018. The cracker was taken off-line in end-May 2018 owing to Furnace issues.

Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 540,000 mt/year.

As MRC wrote before, seven naphtha crackers in Japan are expected to be shut in 2018 for scheduled maintenance, industry and company sources said in early 2018.

Thus, Mitsubishi Chemical shut its 539 Mtpy naphtha cracker from May 9 to July 3, followed by a scheduled restart on July 4, a company spokesman said. Other ethylene manufacturers operating crackers include oil refiner JXTG Nippon Oil & Energy, and Osaka Petrochemical Industries Ltd, a wholly owned unit of Mitsui Chemicals.
MRC

BASF opens new construction chemicals manufacturing plant in Myanmar

MOSCOW (MRC) -- BASF has opened its first construction chemicals manufacturing plant in East Dagon Township, Myanmar, as per Chemicals-technology.

The new facility will be used for producing tailor-made concrete admixtures to meet increasing demand for the construction chemicals in Myanmar.

BASF Asia-Pacific construction chemicals senior vice-president Dr Hicham Abel said: "Myanmar is one of the fastest growing markets in the Asia-Pacific, and is important for BASF.

"We are proud to open our first manufacturing facility in Yangon, Myanmar’s largest city and its business centre, to support the rapid urbanisation and industrialisation of Myanmar. "The new plant will enable us to stay close to our customers and offer solutions that meet the growing demands for residential construction, and industrial and infrastructure developments."

BASF’s new plant features production units, warehousing facilities and a laboratory for quality control purpose.

"Myanmar is one of the fastest growing markets in the Asia-Pacific, and is important for BASF."
The chemical company produces standard and custom-made performance admixtures, including MasterEase, MasterGlenium, MasterRheobuild, MasterPozzolith and MasterKure under the Master Builders Solutions brand.

BASF Thailand and responsible for Cambodia, Laos, Myanmar and Vietnam managing director Petrus Ng said: "The opening of the new plant in East Dagon Township marks another milestone for us as we expand our manufacturing footprint in a new market and support the rapid growth of Myanmar’s construction industry with durable and energy-efficient products."

With this new plant, BASF expects to become one of the largest local producers of construction chemicals in Myanmar.

The plant is located 25km from Yangon downtown, and lies in close proximity to Thilawa Sea Port, Yangon Sea Port, and Yangon International Airport.

Its location enables the company to receive raw materials, as well as deliver to customers across the country.


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