China to build new ethylene complexes in petrochemical wave

MOSCOW (MRC) - China, the world's top chemicals consumer, is building and planning a total of 13 ethylene complexes between now and 2023, in the biggest wave of petrochemical expansions in its history, according to Hydrocarbonprocessing.

China is allowing greater access by global majors and local independents to its massive chemicals market to feed plastics, coatings and adhesives to the fast-growing consumer electronics and automotive sectors, as well as polyesters for clothing.

As MRC reported earlier, in May 2018, China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China. Several linked derivative units had also started up and the remaining units will start up progressively over the next few weeks. These new units were constructed by CNOOC and are owned and operated by the existing CNOOC and Shell Petrochemical Company (CSPC) joint venture.

The new ethylene cracker increases ethylene capacity at the complex by around 1.2 million tonnes per year, more than doubling the capacity of the complex, and benefits from a deep integration with adjacent CNOOC refineries. The new facility will also include a styrene monomer and propylene oxide (SMPO) plant, which will be the largest in China when it begins operations.
MRC

EPA approves emergency fuel waiver for North Carolina and South Carolina

MOSCOW (MRC) -- In preparation for Hurricane Florence, US Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler approved emergency fuel waiver requests made this afternoon on behalf of North Carolina Governor Roy Cooper and South Carolina Governor Henry McMaster, as per Hydrocarbonprocessing.

Acting Administrator Wheeler quickly determined that extreme and unusual fuel supply circumstances exist in portions of North Carolina and South Carolina as a result of the approaching hurricane, and has granted a temporary waiver to help ensure that an adequate supply of gasoline is available in the affected areas until normal supply to the region can be restored.

EPA has waived the federal Reid vapor pressure requirements for fuel sold in designated areas in North Carolina and South Carolina to minimize problems with the supply of gasoline. This waiver will continue through September 15, 2018, which is the end of the summer fuel season in these designated areas. EPA has also waived the prohibition on the blending of reformulated gasoline blendstock for oxygenated blending with other gasoline blendstock or oxygenate. This waiver of the comingling prohibition is effective through October 1, 2018.

The Clear Air Act allows EPA Acting Administrator Andrew Wheeler, in consultation with US Department of Energy (DOE) Secretary Rick Perry, to waive certain fuel requirements to address shortages that could occur as a result of a hurricane.

As required by law, EPA and DOE evaluated the situation and determined that granting a short-term waiver was consistent with the public interest. EPA and DOE are continuing to actively monitor the fuel supply situation resulting from Hurricane Florence, and will act expeditiously if extreme and unusual supply circumstances exist in other areas.

To mitigate any impacts on air quality, the Clean Air Act provides strict criteria for when fuels waivers may be granted, and requires that waivers be limited as much as possible in terms of their geographic scope and duration.
MRC

LDPE unit brought on-stream by Sinopec Maoming

MOSCOW (MRC) -- Sinopec Maoming Petrochemical has restarted its No. 1 low density polyethylene (LDPE) unit following a brief maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company has resumed operations at the unit over the weekend. The unit was shut for a maintenance turnaround on August 30, 2018.

Located at Guangdong in China, the No. 1 unit has a production capacity of 120,000 mt/year.

As MRC wrote earlier, Sinopec Maoming Petrochemical shut its No. 2 LDPE unit for a brief maintenance on July 14, 2018. It resumed production on July 19, 2018. Located at Guangdong in China, the No. 2 unit has a production capacity of 280,000 mt/year.

China Petroleum & Chemical Corporation, or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. It is listed in Hong Kong and also trades in Shanghai and New York . Sinopec is the worlds fifth biggest company by revenue.
MRC

Qatargas agrees on 22-year LNG supply deal with China

MOSCOW (MRC) - Qatargas said on Monday it had agreed on a 22-year deal with PetroChina International Co, a unit of PetroChina Co, to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) annually, as the nation stepped up efforts to combat air pollution, as per Hydrocarbonprocessing.

The Qatari state-owned company will supply LNG from the Qatargas 2 project - a venture between Qatar Petroleum, Exxon Mobil Corp and Total - to receiving terminals across China, with the first cargo to be delivered this month.

The deal allows flexibility in delivering LNG to Chinese terminals including those in Dalian, Jiangsu, Tangshan and Shenzhen, using the Qatargas fleet of 70 conventional, Q-Flex and Q-Max vessels, the company said.

China requires LNG for its push to replace coal with cleaner burning natural gas, a way to reduce air pollution. After Beijing started the programme last year, China has overtaken South Korea as the world's second-biggest buyer of LNG.

China's LNG imports may surge 70 percent to 65 million tonnes by 2020, according to consultancy SIA Energy. Last year, China imported a record 38.1 million tonnes, 46 percent more than the previous year.

Meanwhile Qatar, the world's biggest LNG producer, is seeking buyers for a planned expansion of its output.
MRC

EU antitrust regulators raided Clariant, Celanese, others

MOSCOW (MRC) -- EU antitrust regulators raided several ethylene purchasing companies in May, including Swiss chemicals maker Clariant and U.S. rival Celanese, over concerns the firms may have participated in a cartel, as per Reuters.

Clariant confirmed the EU investigation while Celanese said some of its units were being investigated. Ethylene is used to make various chemical and plastic products.

The European Commission said on Wednesday the raids occurred on May 16 in several European Union countries. It did not name the companies involved.

"The companies concerned may have violated EU antitrust rules that prohibit cartels and restrictive business practices," the EU competition enforcer said in a statement.

Companies face fines up to 10 percent of their global turnover for breaching EU antitrust rules.
MRC