Unipetrol to shut down the steam cracker unit at Litvínov for a month

MOSCOW (MRC) -- At the beginning of September, Unipetrol will start the planned shutdown of its steam cracker unit at Litvinov, as per the company's press release.

It will also suspend operation of two polyethylene units and one polypropylene unit. From to September 3 to 30, Unipetrol will suspend operation of the entire petrochemical complex to carry out maintenance and upgrades. The total cost will reach CZK 180 million, half of which is intended for new investment projects.

"The construction of a new boiler house for the steam cracker unit has reached the stage when we need to provide a connection to the existing steam cracker technology. This implementation of so-called linking points is the most important task of the planned technological shutdown. We will use this necessary shutdown to perform maintenance on and modernize all the production units in the petrochemical production section," explained Lubos Bernard, Head of Steam-Cracker Unit Production Team at the Unipetrol Group.

Besides implementing the linking points for the new steam cracker boiler house, a new operator interface in the control room will be installed, several pipeline routes will be changed, and regular cleaning of the technological equipment will be carried out during the shutdown of the petrochemical section. The most important part of the shutdown of the polyethylene and polypropylene units will involve installing a so-called intelligent shutdown system, which in the event of a power outage will ensure a controlled shutdown of major electrical equipment. Installing this system to oversee the new PE3 polyethylene unit will further enhance safety in the petrochemical section.

Shutdown of the steam cracker unit at Litvinov will also affect Spolana Neratovice, which connects to the chemical plant at Litvinov via an ethylene pipeline. Even there, however, they will use this shutdown and partial reduction in production to carry out regular maintenance and modernization of their technology.

The gradual suspension of production begins on August 28. Complete production shutdown is scheduled for September 3. Termination of the shutdown and subsequent gradual restart of the production units is scheduled for September 25 to October 2. "We expect individual production units to reach full capacity during the first week of October," informed Lubos Bernard.

The shutdown of the petrochemical complex will not cause any increase in road traffic near the Litvinov plant. Shutdown and restart of the production units will be accompanied by burning off production at the flare stack (flaring). "We apologize for the temporary light and sound effects that accompany flaring. They are necessary for the safe interruption of production and safety for the population in surrounding towns and villages," said Lubos Bernard.

The refinery and petrochemical group Unipetrol are the Czech Republic’s only crude oil importer and are an important producer of fuels, plastics and fertilizers and the owner of the Benzina filling station network – the largest network in the Czech Republic with 406 stations. Crude oil is brought to the Czech Republic from Russia via the Druzhba pipeline. From Azerbaijan, Kazakhstan, the Arabian peninsula and Africa, oil flows through the IKL pipeline (Ingolstadt – Kralupy nad Vltavou – Litvinov) which flows from the TAL oil pipeline from Trieste, Italy. Oil is then processed in the Czech Republic at the Unipetrol Group’s two refineries – Kralupy nad Vltavou and Zaluzi u Litvinova, where related petrochemical products are also produced. The total volume of oil supplies to the Czech Republic reaches eight million tonnes per year, of which about two thirds are processed at the Litvinov Refinery.
MRC

MOSCOW (Market Report) -- Nizhnekamskneftekhim increases its September polystyrene (PS) prices by Rb5,000/tonne, according to ICIS-MRC's Price report with reference to market sources.

Market participants expected higher prices of Russian high impact polystyrene (HIPS) and general purpose polystyrene (GPPS), following a sharp increase in the dollar and euro exchange rates against the rouble in August. Higher styrene monomer (SM) prices in Europe also put pressure on prices in the domestic market.

Overall, August prices of Nizhekamskneftekhim's GPPS were at Rb108,000-114,000/tonne CPT Moscow, including VAT, whereas HIPS prices were at Rb111,000-114,000/tonne CPT Moscow, including VAT.

Next month's prices of Gazprom neftekhim Salavat's PS are expected to be adjusted similarly to prices of Nizhnekamskneftekhim's material. August prices of Gazprom neftekhim Salavat's GPPS were in the range of Rb104,000-107,000/tonne CPT Moscow, including VAT, whereas HIPS prices were in the range of Rb108 000-110 000/tonne CPT Moscow, including VAT.

Penoplex announced in mid-August that its September GPPS prices of Stairovit grade would grow by Rb5,000-7,000/tonne.
MRC

MOSCOW (Market Report) -- Ufaorgsintez (petrochemical asset of Bashneft, which is part of Rosneft) plans to shut down its low density polyethylene (LDPE) and polypropylene (PP) production capacities for maintenance in September. The outage will be long, according to ICIS-MRC Price report.

The plant's customers said the plant's production capacities are scheduled to be taken off-stream for a turnaround in several stages from 1 September. The outage will be quite long and its each stage will last for about 30 days.

Thus, the plant's production of 108 grade LDPE is scheduled to be shut for almost a one-month maintenance on 1 September, whereas the second part of the plant's production capacities (158 and 153 grades), as well as its PP production, will be taken off-stream on 19 September. Ufaorgsintez's overall LDPE and PP production capacities are about 90,000 and 120,000 tonnes per year, respectively.

As already reported, Kazanorgsintez also plans to shut down some of its LDPE production capacities (108 and 115 grades) for almost a one-month turnaround on 26 September.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low density polyethylene, polypropylene, over 30 types of petrochemical products and over 25 items of consumer products. Ufaorgsintez's net profit was Rb5.41 billion in 2017, down by 7% year on year.
MRC

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 74,000 tonnes in the first seven months of the year, up 9% year on year. Demand for all PP grades increased, as per MRC DataScope.

July PP imports into Ukraine rose to 13,200 tonnes, compared with 10,800 tonnes in June; the main increase accounted for the supply of homopolymer PP. Overall imports of propylene polymers reached 74,000 tonnes in January-July 2018, compared to 67,700 tonnes a year earlier. Demand for all PP grades increased, but PP block copolymers accounted for the greatest growth.

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

July imports of homopolymers of propylene to the Belarusian market rose to 10,200 tonnes against 8,000 tonnes a month earlier, local companies increased the volume of purchases of homopolymer PP raffia. Overall shipments of homopolymer PP reached 54,700 tonnes in the first seven months of 2018 versus 51,600 tonnes a year earlier. Last month's imports of block propylene copolymers (PP block copolymers) were 1,300 tonnes, compared to 1,200 tonnes in June. Demand for injection moulding propylene copolymers improved from local companies.

Imports of PP block copolymers into the country were about 7,700 tonnes in January-July, compared with about 7,500 tonnes year on year.
July imports of of statistical copolymers of propylene (PP random copolymers) did not exceed 1,500 tonnes versus 1,300 tonnes a month earlier, demand for PP subsided from film products producers. Overall imports of PP random copolymer exceeded 10,200 tonnes in January-July 2018, whereas this figure was 7,400 tonnes a year earlier.

Overall imports of other propylene copolymers totalled slightly over 1,300 tonnes over the stated period.

MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 28% in the first seven months of this year, compared to the same period in 2017 and reached about 43,700 tonnes. The main reason is the growth of own production volumes, according to MRC DataScope.

Last month's SPVC imports to the Ukrainian market dropped to 4,900 tonnes from 5,900 tonnes in June, with US resin accounting for the main decrease. Overall SPVC imports totalled 43,700 tonnes in January-July 2018, compared to 60,700 tonnes a year earlier, while the supply of PVC from the US, contrary to the general trend, has grown. The main reason for the drop in imports was the increase in production at Karpatneftekhim.

Structure of PVC imports into Ukraine over the reported period was as follows.
Last month's imports of US SPVC shrank to 2,500 tonnes from 3,500 tonnes in June. Thus, imports of US resin totalled 28,600 tonnes in the first seven months of 2018, compared to 25,100 tonnes a year earlier. February-March accounted for the peak of imports.

July imports of European PVC into Ukraine were 2,400 tonnes, which equalled the June figure. Total imports of European PVC into Ukraine were about 13,800 tonnes in the first seven months of the year, compared with 24,100 tonnes year on year.
MRC