Angarsk Polymer Plant shut its PE production

MOSCOW (MRC) -- Angarsk Polymer Plant (part of Rosneft) has shut down its low density polyethylene (LDPE) production for a scheduled maintenance, according to the ICIS-MRC Price report.

The plant's customers said Angarsk Polymer Plant took off-stream its LDPE production capacities for the scheduled turnaround on 2 July. The outage will not be long and will last approximately until 10 August. The plant's annual production capacity is 80,000 tonnes.

This is the second shutdown for maintenance at Russian LDPE plants in July. As it was reported earlier, Gazprom neftekhim Salavat shut down its LDPE production for a turnaround on 1 July. The outage lasted for 30 days. The plant's annual production capacity is 45,000 tonnes.

Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) is the only petrochemical full-cycle plant in Eastern Siberia. The bulk of the produced ethylene is used by the plant for the production of LDPE, styrene monomer (SM) and polystyrene (PS). Straight-run gasoline and hydrocarbon gases, mainly produced by OAO Angarskaya NHK, are the feedstocks for the plant.
MRC

MOSCOW (MRC) -- Argentina’s biodiesel industry is at risk after the European Union threatened to impose tariffs on imports from the South American country, following accusations that the nation unfairly subsidized its biofuel sector, reported Reuters.

The threat of tariffs has halted Argentine biofuel sales to the EU, industry sources told Reuters, adding that imposing a tax would leave 85 percent of the country’s biofuel exports without a viable market and may force suppliers to close shop.

Boasting major producers like Cargill and Bunge, Argentina is a leader in biodiesel exports. But the sector has suffered trade sanctions in the past after being accused of illegally benefiting from subsidized soybeans.

"It is very likely that Europe could apply anti-subsidy sanctions in two or three months. In that scenario, there is a high probability that production lines would stop," said Claudio Molina, Executive Director of the Argentina Association of Biofuels and Hydrogen.

The industry had previously avoided EU sanctions by redirecting its biodiesel shipments to other markets. But the sector, which recorded 1.2 billion dollars in revenue last year, can no longer redirect exports to the United States.

In late 2017, Washington imposed tariffs and stopped Argentine biodiesel imports after similar accusations of subsidies and “dumping."

The EU’s threat has already put a damper on sales to Europe, trimming Argentina’s biodiesel exports to no more than 700,000 tons this year, down from 1.65 million tons shipped in 2017, according to Argentina’s Chamber of Biofuels (CARBIO).

"Europe is a threat to us," CARBIO President Luis Zubizarreta said, adding that biodiesel plants can barely operate without the European market.

The EU’s investigation into the alleged subsidies began four months after it lost a case at the World Trade Organization in which it accused Argentina of dumping. Following the WTO ruling, the EU revoked duties that had blocked Argentine biodiesel imports to Europe for three years.

"It’s a bad situation since the chances that we will recover those external markets is low," said an industry source who asked not to be named.

In May, the Argentine government raised export taxes on biodiesel to 15 percent from 8 percent. The increase may also prove to hurt the industry, according to Zubizarreta.

The investigation could drag on for over a year, and sources say the EU is expected to levy provisional rates on biodiesel in the second half of 2018, contributing to a pessimistic outlook for the industry. Molina believes increasing domestic consumption may be the industry’s best option.

Argentine law currently mandates fuel providers use a 10 percent mixture of biodiesel in all diesel fuel sold to the public. The country used 1.17 million tons of biofuel last year, according to government data.

Increasing that mix to 12 percent while also using more biodiesel in power plants, public transport, and agricultural machinery could cover up to half of Argentina’s annual production capabilities of 4.4 million tonnes within three years, Molina said.

However, plans to raise mix quotas for publicly consumed biodiesel do not yet exist, a government source told Reuters.

"Sustaining the industry with an internal market of 1.1 million tonnes is practically impossible. If we do not have new export markets, we are just around the corner from starting to shut down production lines," said a source at a biodiesel exporting firm who wished to remain anonymous.
MRC

MOSCOW (MRC) -- A fire broke out at one of Kemaman Bitumen Company’s six crude oil tanks Thursday evening in the Teluk Kalong Industrial area, according to Hydrocarbonprocessing with reference to local news outlets.

The fire quickly spread to a second and third tank as fire crews worked to contain the fire, which left one person severely injured.

NST reports Rosli Muhamad, 42, sustained burns to his face and right hand.

"We believe the victim was carrying out maintenance work near the site of the incident," Terengganu Fire and Rescue Department director Azlimin Mat Noor said. "We are investigating the cause of the fire and damages sustained."

Noor said the first tank contained 4,800 liters of oil, the second 1,580 and the third 13,679 liters.

The company’s CEO Sanjay Groove said the fire was expected to be cleared within 48 hours.

Kemaman Bitumen Company Sdn Bhd (KBC) is a subsidiary of the Tipco Asphalt Group of Companies. KBC’s refinery in south-east Asia is designed to process heavy Naphthenic Crude Oils.
MRC

MOSCOW (MRC) - Asian oil refiners are racing to secure crude supplies in anticipation of an escalating trade war between the United States and China, and as Washington plans tough sanctions against Iran aimed at shutting the country out of oil markets, as per Hydrocarbonprocessing.

As part of a wave of retaliation for Friday's U.S. tariffs, China has threatened a 25 percent duty on imports of U.S. crude. Meanwhile, Washington's new sanctions against Tehran are due to kick in from November.

That double whammy is prompting Asian refiners to move swiftly, with South Korea leading the way. Under pressure from Washington, Seoul has halted all orders of Iranian oil, according to sources, even as it braces from spillover effects from the U.S.-China tit-for-tat on trade.

"As South Korea's economy heavily relies on trade, it won't be good for South Korea if the global economic slowdown happens because of a trade dispute between U.S and China," said Lee Dal-seok, senior researcher at the Korea Energy Economic Institute (KEEI).

In China, state media slammed U.S. President Donald Trump's government as a "gang of hoodlums", with officials vowing retaliation. Standing in the line of fire are U.S. crude supplies to China, which have surged from virtually zero before 2017 to 400,000 barrels per day (bpd) in July.

Although just 5 percent of China's overall crude imports, these supplies are worth USD1 billion a month at current prices - a figure that seems certain to fall should a duty be implemented.

U.S. crude oil is not on the list of 545 products the Chinese government has said it would immediately retaliate with in response to American duties.

However, crude oil is listed as a U.S. product that will receive an import tariff at an unspecified later date.

While no date has been set, industry participants expect the tariff to be levied. "The Chinese have to do the tit-for-tat, they have to retaliate," said John Driscoll, director of consultancy JTD Energy, adding that cutting U.S. crude imports was a means "of retaliating (against) the U.S. in a very substantial way".
MRC

MOSCOW (MRC) -- The research group headed by Prof. Weimin Yang from Sinopec Shanghai Research Institute of Petrochemical Technology (Sinopec SRIPT) has successfully synthesized a novel structured zeolite SCM-14 (SINOPEC Composite Material 14), as per Hydrocarbonprocessing.

Its framework type code SOR has been approved by the Structure Commission of International Zeolite Association (IZA-SC) on May 15th, 2018.

As an important class of functional material, zeolite is widely used in chemical processes like ion exchange, adsorption/separation, and catalysis. The innovation and industrialization of novel zeolites have led to the leaping development of many chemical technologies.

Currently, Yang’s group has developed a series of SCM-n (n=1~21) zeolites named after SINOPEC based on more than 2000 experiments carried out in the last 5 years. SCM-14, one of the SCM-n zeolite, is a new and thermally stable zeolite possessing a unique 3D framework structure of 12-, 8- and 8-ring channel system. Its structure was determined by a combination of electron diffraction and powder X-ray diffraction through close cooperation between Yang’s group and Dr. Junliang Sun, a research fellow from Stockholm University/Peking University. The zeolite SCM-14 shows application potentials in catalysis and adsorption.

The group from SRIPT is now carrying out an in-depth study on the adsorption and catalysis properties of SCM-14, hoping to accelerate the pace of industrialization of SCM-14 in a bid to innovate a new petrochemical technology in the coming future.
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