Nan Ya to run 2-EH unit at full capacity by end of March

MOSCOW (MRC) -- Taiwan's Nan Ya Plastics (part of Formosa Petrochemical) aims to run its 2-ethyl hexanol unit at full capacity by the end of March after the plant restarted March 10, as per Apic-online.

The 2-EH unit is located at Mailiao and has a production capacity of 205,000 mt/year.

The unit was shut down unexpectedly February 12 due to a technical issue, with a total production loss of 12,000 mt."We are only running at 80% of our operating rate at the moment, but we will reach full output capacity by end-March," said a company source.

Nan Ya Plastics is the largest 2-EH producer in Taiwan.

As MRC informed before, on 19 March, 2018, Formosa Petrochemical Corp (FPCC) undertook an emergency shutdown at its No. 1 cracker in Mailiao owing to technical issues. The plant remained off-line for around one day. Located at Mailiao in Taiwan, the No. 1 cracker has an ethylene production capacity of 700,000 mt/year, propylene production capacity of 350,000 mt/year and butadiene production capacity of 109,000 mt/year.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company"s chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Qatar Petrochemical Company has undertaken an unplanned shutdown at its linear low density polyethylene (LLDPE) plant, as per Apic-online.

A Polymerupdate source in Qatar informed that the company has halted operations at the plant last week. The plant is slated to remain off-line for around 30 days.

Located at Mesaieed Industrial City, Qatar, the LLDPE plant has a capacity of 600,000 mt/year.

As MRC reported earlier, in February 2017, Qatar Petroleum announced a plan to integrate the activities of Qatar Vinyl Company (QVC), which is part of Mesaieed Petrochemical, into Qatar Petrochemical Company (QAPCO), which is part of Industries Qatar, through a service agreement arrangement. The result will be a single company, QAPCO, operating the facilities of both companies.

Qatar Petrochemical Company (QAPCO) is a Qatar-based company established in 1974 and is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%). The company is currently one of the largest producers of low density polyethylene (LDPE) in the region. In addition to LDPE, QAPCO also produces linear low density polyethylene (LLDPE), ethylene, and sulfur, which it sells to over 4500 industry customers in 145 countries through its extensive global marketing network.
MRC

MOSCOW (MRC) -- India’s Reliance Industries, operator of the world’s biggest refining complex, has turned to selling fuels to Venezuela from India and Europe to circumvent sanctions that bar US-based companies from dealing with state-run PDVSA, reported Reuters with reference to trading sources and Refinitiv Eikon data.

Reliance had been supplying alkylate, diluent naphtha, and other fuel to Venezuela though its US-based subsidiary before Washington in late January imposed sanctions aimed at curbing the OPEC member’s oil exports and ousting Socialist President Nicolas Maduro.

At least three vessels chartered by the Indian conglomerate supplied refined products to Venezuela in recent weeks, and another vessel carrying gasoil is expected to set sail to the South American nation as well, according to the sources and data.

Reliance, an Indian conglomerate controlled by billionaire Mukesh Ambani, has significant exposure to the financial system of the United States, where it operates subsidiaries linked to its oil and telecom businesses, among others.

The Indian market is crucial for Venezuela’s economy because it has historically been the second-largest cash-paying customer for the OPEC country’s crude, behind the United States.

Additional sanctions against Venezuela are possible in the future, as US President Donald Trump’s administration has not yet tried to prevent companies based outside the United States from buying Venezuelan oil, a strategy known as "secondary sanctions."

Refinitiv Eikon trade data shows that Reliance shipped alkylate, a component for motor gasoline, to Venezuela on vessels Torm Mary and Torm Anabel in recent weeks. Those originated in India and passed through the Suez Canal.

It also shipped a gasoline cargo using tanker Torm Troilus to Venezuela and is preparing to send 35,000 tonnes of gasoil in a vessel called Vukovar to the South American nation.

"Reliance is also supplying some products from its Rotterdam storage," a source familiar with Reliance’s operation said.

Reliance did not respond to emails seeking comment. PDVSA did not reply to a request for comment.

In a statement last week, Reliance said its US unit has completely stopped all business with PDVSA. Reliance also halted all supply of diluents including heavy naphtha to Venezuela and does not plan to resume such sales until sanctions are lifted, according to the release.

Venezuela has overall imported some 160,000 barrels per day of fuel and diluents for its extra heavy oil output since the U.S. measures were imposed, according to PDVSA and Refinitiv data, below levels prior to the sanctions but still enough to supply gas stations and power plants.

Reliance is among the biggest buyers of Venezuelan oil, although the company has recently said it has not increased crude purchases from Venezuela. In 2012, Reliance signed a 15-year deal to buy between 300,000 to 400,000 bpd of heavy crude from PDVSA.

Ship tracking data obtained by Reuters showed that Reliance’s average purchases from Venezuela were less than 300,000 bpd in 2018 and in the first two months of this year.

Venezuela has suspended its oil exports to India, its main cash market, Azerbaijan’s energy ministry said on Tuesday, citing Manuel Quevedo, Venezuela’s oil minister and PDVSA president. Quevedo met with the Azeri minister of Industry and Energy Parviz Shahbazov in Baku.

But Venezuela’s crude exports to India have not stopped. A very large crude carrier (VLCC) is anchored off Venezuela’s Jose port waiting to load oil bound for India, and at least six other vessels of the same size are underway to India’s Sikka and Vadinar ports, according to the Refinitiv data.

PDVSA’s second largest customer in India is Nayara Energy , partially owned by Russian energy firm Rosneft , one of PDVSA’s primary allies.

As MRC informed before, in February 2016, RIL was awarded a contract worth Rs. 100 crore to Petron Engineering Construction Ltd for its linear low density polyethylene (LLDPE) plant in Gujarat. The LLDPE plant is part of RIL's J-3 project in Jamnagar in the western Indian state of Gujarat. The J-3 project boasts of a petroleum refinery and allied petrochemical plants for the production of plastics and fibre intermediates.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Jiangsu Sailboat has selected Honeywell UOP's C3 Oleflex technology for the production of on-purpose propylene at its existing facility in Lianyungang City, Jiangsu Province, China, as per Apic-online.

The plant will be expanded to produce 700,000 t/y of polymer-grade propylene, which will further help China meet its growing demand for plastics.

"As demand for propylene derivatives for consumer products in China continues to rise, UOP's Oleflex technology provides greater energy and cost efficiency than other propane dehydrogenation technologies," noted Bryan Glover, vice president and general manager of Honeywell UOP's Process Technology and Equipment business.

As MRC informed before, in March 2018, Honeywell announced that Jiangsu Sailboat Petrochemical Company, Ltd. had accepted a new methanol-to-olefins (MTO) unit provided by Honeywell UOP, and that the plant was operating and had met all guarantees. With a production capacity of 833,000 metric tons per year, the unit is the largest single-train MTO unit in the world. Honeywell UOP, which pioneered MTO technology, started its first MTO unit for China's Wison Clean Energy in 2013.
MRC

MOSCOW (MRC) -- Russia's output of chemical products rose in February 2019 by 1.5% year on year. However, production of basic chemicals increased only by 0.9% in the first two months of 2019, according to Rosstat's data.

According to the Federal Service of State Statistics, last month's output of basic chemicals grew by 1.5% year on year. Production of many products decreased last month.

Thus, 242 ,000 tonnes of ethylene were produced in February, compared to 275,000 tonnes a month earlier. Overall, 517,000 tonnes of this olefin were produced in January-February 2019, down by 0.5% year on year.

Last month's output of benzene were 119,000 tonnes versus 122,000 tonnes in January. Overall production of this product reached 241,000 tonnes in the first two months of 2019, down by 4.9% year on year.

February output of sodium hydroxide (caustic soda) was 101,000 tonnes (100% of the basic substance) versus 110,000 tonnes in January. Overall production of caustic soda dropped to 211,000 tonnes over the stated period from 217,000 tonnes a year earlier.

Last month's output of mineral fertilizers was 1,887,000 tonnes (in terms of 100% nutrients) versus 2,078,000 tonnes in January. Overall, Russian plants produced 3,965,000 tonnes of fertilizers in January-February 2019, up by 2.9% year on year.
MRC