Sinopec Sabic Tianjin restarts PP plant

MOSCOW (MRC) -- Sinopec Sabic Tianjin has resumed operations at its Polypropylene (PP) plant following a brief maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company has planned to restart the plant on March 14, 2019. The plant was shut on March 7, 2019.

Located in Tianjin city, China, the plant has a production capacity 450,000 mt/year.

As MRC wrote before, Sinopec Sabic Tianjin Petrochemical Co. (SSTPC) started up a 1-million-t/y ethylene cracker in Tianjin, China, in 2010, and in 2012 it began construction on a new 260,000-t/y polycarbonate plant at Tianjin, which began operations in 2015.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Braskem, the largest petrochemical producer in the Americas and the world's leading biopolymers producer, closed 2018 with record-high cash flow of RD7.1 billion, which is 187% higher than in the previous year, said Marketscreener.

The result was supported by the positive variation in operating working capital, the depreciation in the Brazilian real against the U.S. dollar, the lower tax expenses abroad and the lower interest expenses. Net sales revenue also grew in the period, by 18% on the prior-year period, from R$49.3 billion in 2017 to RD58 billion in 2018. Braskem's EBITDA fell 8%, from RD12.3 billion to RD11.3 billion in 2018. The company posted net income of RD2.87 billion in the year, down 30% on the net income reported in 2017, of RD4.1 billion. The Company's Management is proposing to the Annual Shareholders' Meeting to be held on April 16th, 2019 the distribution of dividends in the amount of RD2.670 million for fiscal year 2018, equivalent to 100% of the net income attributable to shareholders.

'We demonstrated solidity and resilience and delivered consistent results in a year marked by narrowing international spreads in our industry and in which we had to deal with various non-recurring events that adversely affected our operations around the world: the truck drivers' strike in Brazil, the severe winter in the United States, the instability in feedstock supply in certain markets caused, for example, by the low level of the Rhine River in Europe and the incident at the chlor-alkali plant in Alagoas,' explained Fernando Musa, Braskem CEO. 'We are ready to surmount the challenges of the world economy,' he added.

The operating and commercial highlights of 2018 include the higher resin demand (polyethylene, polypropylene and PVC) in Brazil of 5.2 million tons, up 2.4% from 2017, which is explained by stronger economic growth spurred by demand from the agrochemical, cosmetics, pharmaceutical and food packaging industries. In this scenario, the highlight was the PVC market, which grew 1.4% after four straight years of contraction.

Braskem's crackers in Brazil operated at a capacity utilization rate of 91% in 2018, down 3 p.p. from 2017, mainly due to the truck drivers' strike and the plant outages in the Northeast at the start of the year. In this scenario, resin sales came to 3.4 million tons, down 2% from 2017, while sales of key chemicals increased 1% to 2.9 million tons. In 2018, resin exports were 1.3 million tons and exports of key chemicals were 571,000 tons, down 14% and 31% from 2017, respectively. In the year, the units in Brazil and exports posted EBITDA of USD1.96 billion (RD6.98 billion), which represents 61% of the Company's consolidated EBITDA from all segments.

In the United States, PP demand grew 3.1% compared to 2017, with the highlight the caps and oriented films segments, which are widely used in food packaging. In the European market, PP demand decreased compared to 2017, accompanying the region's weak economic performance, especially in countries such as Germany and Italy. Braskem's plants in the United States and Europe operated at a capacity utilization rate of 87%, down 11 p.p. from 2017, mainly due to the plant outages in the United States, the scheduled shutdown of the unit in Oyster Creek, Texas for 50 days and the inbound logistics constraints on propylene supply to the plants in Europe explained by low river levels. Polypropylene sales decreased 9% compared to 2017, to 1.9 million tons. In the year, the units in the United States and Europe posted EBITDA of USD608 million (R$2.208 billion), representing 19% of the Company's consolidated EBITDA.

In Mexico, the polyethylene (PE) plants operated at an average capacity utilization rate of 77%, down 11 p.p. from 2017, due to the lower supply of ethane in the period and the scheduled shutdown conducted in May. As a result, PE sales decreased 18% from 2017, to 799,000 tons, 67% of which was sold in Mexico's domestic market. In the year, the Mexico unit posted EBITDA of USD617 million (RD2.251 billion), representing 20% of the Company's consolidated EBITDA.
MRC

MOSCOW (MRC) -- Nghi Son Refinery & Petrochemical has restarted its Polypropylene (PP) unit following an unplanned outage, as per Apic-online.

A Polymerupdate source in Vietnam informed that the company has resumed operations at the unit on March 11, 2019. The unit was taken off-line on March 3, 2019 owing to technical issues.

Located at Nghi son, Vietnam, the PP unit has a production capacity of 400,000 mt/year.

As MRC reported earlier, in November 2018, Vietnam’s Nghi Son oil refinery officially began commercial production following months of tests. Commercial production had begun from Nov. 14, Nghi Son Refinery and Petrochemical LLC said in a statement, while a source at the refinery told Reuters the refinery was operating smoothly.

The USD9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.
MRC

MOSCOW (MRC) -- Andres Manuel Lopez Obrador denied a delay to a flagship refinery project after the deputy finance minister was quoted as saying USD2.5 billion for its construction will be moved to state oil firm Pemex, said Hydrocarbonprocessing.

The planned investment for the Dos Bocas refinery “can go to exploration and production” for Pemex, Arturo Herrera told the Financial Times in an interview during a trip to London for meetings with investors. However, Lopez Obrador stood by his plan to build the refinery within three years, saying the tender could be unveiled next week. In answer to a question about whether the $2.5 billion would be spent this year on the refinery, said "Yes."

The president’s plans to fast-track construction of the new refinery in Tabasco, his home state, have concerned investors that it would take away much-needed resources from Pemex, which is creaking under USD106 billion of debt. His energy minister, Rocio Nahle, said she understood Herrera’s budget concerns but said the project was on track.

“The faster we do this project, the cheaper it will be,” she said on Mexican radio. The conflicting statements appeared to confuse investors. Mexico’s benchmark stock index reversed gains and weakened 0.7 percent after Lopez Obrador’s rebuttal of Herrera’s comments, while the peso pared gains.

“Contradictions within the federal government do not help financial markets,” said James Salazar, an economist at bank CI Banco. The government is under growing pressure to dispel doubts Pemex can successfully manage more than USD16 billion of debt payments due by the end of next year, halt the firm’s extended oil output slide and avert a threatened credit rating downgrade to "junk."

Finance minister Carlos Urzua said last week the government would announce new measures to support the ailing company, after unveiling a USD3.9 billion bailout in February that failed to impress ratings agencies. Herrera said the government was in talks with the International Monetary Fund and other multilateral organizations about structuring a fresh capital injection for Pemex, though he noted that those discussions were technical and no borrowing was involved, according to the Financial Times.

Lopez Obrador said it was very likely the government would make an announcement about tenders for the refinery on March 18, a national holiday that celebrates the 1938 nationalization of Mexico’s oil industry. He also predicted Pemex would reverse its output decline by next year, with “new wells” coming on line by December under a production plan that allows Pemex to hire service companies to help explore mature fields.

He repeated that the refinery would cost between USD6 billion and USD8 billion, and said that work for now was focused on preparing the ground at the refinery site and readying the framework for the tender.

The refinery has already hit obstacles after the proposed construction site was cleared of protected mangrove without the correct environmental permits. The government has yet to present an environmental impact assessment for the wildlife-rich site.

Herrera said the tender framework was being prepared but said the finance ministry needed to see a solid financial plan before releasing funds.
MRC

MOSCOW (MRC) -- The polypropylene unit at ZapSibNeftekhim, a deep hydrocarbon conversion plant under construction, is 99.8% complete, said the company.

Construction and installation works on the process unit are over, and commissioning is underway. In particular, systems are undergoing functional testing and safety systems are being checked for proper performance.

During commissioning, the unit produced a pilot batch of polypropylene granules from third-party feedstock. The technology enables production of all polypropylene types that enjoy demand in all market segments.

"We have only produced several tonnes of polypropylene as part of a test run," comments Andrei Germashev, Head of Production at ZapSibNeftekhim. "However, it confirms that the facility with the total capacity of 500 ktpa is ready for operation."

After the launch of ZapSibNeftekhim, polypropylene production at SIBUR’s facilities in Tobolsk (including the existing polymer production facility of SIBUR Tobolsk) will total 1 mtpa. This represents the biggest production capacity in Russia and one of the largest in the world.

ZapSibNeftekhim's polypropylene will be used to manufacture a wide range of polymer goods, from medical products and personal hygiene items to geotextiles, hot water supply pipes, containers and packaging.

Overall, ZapSibNeftekhim will play an important role in substituting 85–95% (depending on the product) of current polymer imports – mainly from China and Europe.
MRC