Dangote Industries drives global propylene capacity additions

MOSCOW (MRC) -- In Asia, China has 33 planned and announced propylene plants, with a total capacity of about 11.0mtpa by 2026, said Hydrocarbons-technology.

Capital expenditure (capex) for these plants is USD7.33bn. Major capacity additions will be from Oriental Energy Co Ltd. In the Middle East, Iran has 14 planned and announced propylene plants, expected to start operations with total capacity of about 2.8mtpa by 2026. Capex for these plants totals USD2.71bn over the next nine years. Major capacity additions will be from The National Petrochemical Co.

The US has three planned and announced propylene plants, with a capacity of about 1.2mtpa over the next nine years, and plans to spend $0.90bn. Major capacity additions will be from Formosa Plastics Group.

In the Former Soviet Union (FSU), most propylene capacity additions are in Russia, with capacity of about 1.6mtpa by 2026. Capex for these plants totals USD1.66bn by 2026. Sibur Holding is the top company accounting for the major capacity additions in Russia.

In South America, Brazil and Bolivia together plan to spend USD1.10bn and add capacity of 1.2mtpa, expected to come onstream by 2026. In Africa, Nigeria plans to spend USD1.64bn and add capacity of about 1.7mtpa, expected to come onstream by 2026.

In Europe, the major propylene capacity additions are from Belgium, with planned and announced capacity additions of about 0.7mtpa by 2026. Capex for these plants totals USD0.71bn.

Dangote Group, Oriental Energy Co Ltd, and Formosa Plastics Group are the top three companies by planned capacity additions globally over the next nine years.

Lyondell Basell Industries NV, Exxon Mobil Corp, and Formosa Plastics Group are the top global producers of propylene, with capacities of 3.9mtpa, 3.4mtpa, and 2.9mtpa, respectively, in 2017.
MRC

MOSCOW (MRC) -- Asia, the Middle East, and North America are the top regions contributing to capacity additions in the next nine years, said Hydrocarbons-technology.

Asia has 594 planned and announced plants, of which China has 257 with a total capacity of 118.1mtpa by 2026. Capital expenditure (capex) for these plants in China is estimated to total $89.5bn by 2026. China Petrochemical Corp, Hengli Petrochemical (Dalian) Co, and Zhejiang Rongsheng Holding Group Co are the top three companies accounting for the major capacity additions in China.

In the Middle East, the majority of capacity additions are in Iran, with planned and announced capacity additions of about 59.7mtpa by 2026. Capex for these plants totals USD49.8bn by 2026. National Petrochemical Co, Sepehr Makran Iran, and Sepehr Energy Corp are the top companies accounting for the major capacity additions in Iran.

The US has 109 planned and announced petrochemical plants, adding capacity of about 63.1mtpa by 2026. The capex for these plants is $64.8bn by 2026. Major capacity additions will be from IGP Methanol LLC and NW Innovation Works.

In the Former Soviet Union (FSU), the majority of capacity additions are in Russia, with planned and announced capacity additions of about 25.9mtpa by 2026. Capex for these plants totals USD33.8bn by 2026. Sibur Holding and Rosneft Oil Co are the top companies accounting for the major capacity additions in Russia.
MRC

MOSCOW (MRC) -- BP and Lotte have agreed on a major expansion of production capacity at their joint venture Lotte BP Chemical Company Limited facility in Ulsan, South Korea, said Hydrocarbonprocessing.

The expansion is expected to add 100,000 tonnes a year (tpa) of acetic acid capacity by May 2019 through debottlenecking, and to double the current 200,000 tpa vinyl acetate monomer (VAM) capacity with the addition of a second VAM plant by the end of 2020. The new expansion will bring total production capacity of the site to over 1 million tpa.

Nigel Dunn, BP petrochemicals vice president for acetyls, said: "This project demonstrates our ability to execute low capital cost debottlenecks to meet customer needs. Building on the long-standing success of our partnership with Lotte, this expansion will allow us to continue to meet Korea’s growing demand for these key petrochemicals."

Soo-Young Huh, vice chairman of Lotte, said: "We are pleased with the successful launch of this project, based on the track record of manufacturing excellence of Lotte BP and expect it to strengthen the partnership between BP and Lotte."

The expected investment of USD175 million will be funded by the joint venture.
MRC

MOSCOW (MRC) -- Wood Group has received a contract from Adnoc Refining to deliver pre-front-end engineering and design (pre-FEED) services for a new refinery proposed to be built in Ruwais, Abu Dhabi, UAE, said Hydrocarbons-technology.

The new refinery will have a capacity of 600,000bpd of crude oil and be designed to have full conversion capability. It will also support integration with the existing petrochemicals infrastructure in Ruwais.

The latest contract represents a key milestone as Adnoc expedites the delivery of its AED165bn (USD45bn) expansionary downstream strategy.

"This is a major milestone in the future growth plans of Adnoc Refining."

Adnoc Refining CEO Jasem Ali Al Sayegh said: “Today marks a significant step towards fulfilling Adnoc’s strategy of developing the largest integrated refinery and petrochemicals complex in the world. We are delighted to partner with Wood and to have their global expertise available to us. This is a major milestone in the future growth plans of Adnoc Refining."

The USD8m contract also requires Wood to provide licensor selection, site master plan development, the scope of work for the FEED phase, as well as an engineering, procurement and construction (EPC) schedule and cost estimate.

Wood Group Specialist Technical Solutions CEO Bob MacDonald said: "This pre-FEED award allows us to partner with ADNOC in developing a world-scale state-of-the-art facility – a flagship development for the UAE.

"This contract also enables us to expand our footprint in the Middle East and supports our commitment to developing and enhancing local engineering capabilities in Abu Dhabi."

Last May, Adnoc unveiled plans to add a 600,000bpd refinery at Ruwais. By 2025, the total refining capacity at Ruwais is planned to be increased to 1.5Mbpd.
MRC

MOSCOW (MRC) -- Wintershall DEA, the planned oil and gas joint venture between BASF and LetterOne, will cut almost one out of four jobs once the merger is approved and completed some time during the first half of the year, said Reuters.

Around 1,000 full-time positions, out of a pro-forma total of 4,200, will be eliminated in a “socially compatible manner,” BASF’s Wintershall unit said in a statement on Thursday.

About 800 of the job cuts will be in Germany and about 200 in Norway, it added.
MRC