Fire destroyed 11 petrochemical storage tanks before extinguished - official

MOSCOW (MRC) -- A fire at a Mitsui & Co petrochemical storage site outside Houston, TX destroyed 11 massive storage tanks before it was extinguished early Wednesday, Intercontinental Terminals Co officials said, as per Hydrocarbonprocessing.

The company, a subsidiary of Mitsui & Co, has not yet determined what caused the blaze, but officials said at a briefing Wednesday that investigations by local officials have begun.

The fire began on Sunday when a leaking tank containing volatile naphtha, a fuel used in the production of gasoline, ignited and flames quickly spread to other tanks, ITC said. By Tuesday morning, the fire had ignited 12 of 15 tanks.

The tanks each hold up to 80,000 barrels, or 3.3 million gallons, of volatile liquid fuels, making the fire difficult to extinguish. There were no employees or firefighters injured since the blaze began, an ITC spokesman said on Tuesday.

State and federal monitors said air quality was safe, but environmental groups disagreed and said they would conduct their own monitoring.
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MOSCOW (MRC) -- China's announcement Friday that April 1 will be the implementation date for value-added tax cuts aimed at stimulating manufacturing activity and lowering input costs for companies drew a positive response from commodities market players, as per Hydrocarbonprocessing.

Beijing unveiled stimulus policies on March 5 including VAT cuts in manufacturing to 13% from 16%, and for transportation and construction sectors to 9% from 10%.In general market sources were optimistic after the announcement, saying it increased certainty around Beijing's stimulus measures, although some traders said the impact had already been factored into benchmark prices.

In addition, some noted that there could be a negative impact on prompt cargo sales and stockpiling this month.

"Overall, the widely expected stimulus programs announced by Premier Li will help improve the business environment and boost demand of oil products, particularly gasoline and diesel, and car sales in China," Kang Wu, head of S&P Global Analytics Asia, said.

The thermal coal market will benefit from a VAT cut of 3 percentage points to 13% as it will help lower costs for end-users like power plants, with China aiming to reduce electricity prices for industrial usage by 10%, traders said.

"Tax is included in our costs, so now seaborne coal traders will also be able to lower their offers to Chinese buyers after the reduction," a Singapore-based coal trader said.

VAT cuts for manufacturing could boost Chinese demand for steel and raw materials, although incremental demand growth for steel wouldn't show until the second half of 2019, according to executives at Chinese steel mills and Australian iron ore companies.

Manufacturing accounts for roughly 29% of Chinese GDP, according to the National Bureau of Statistics, and around 30% of the country's steel consumption.

Iron ore seaborne cargoes are expected to be more competitive in the short term, sources said. The new VAT will apply to iron ore cargoes arriving in China from April, and end-users are deferring some seaborne purchases to April arrival to cut costs.

"Considering current flat price levels, it means imported iron ore prices will go down by Yuan 20/wmt, or $2.6/dmt, in April," a procurement source in Hebei province said. "Mills with no urgent needs would prefer to wait until April for restocking."

"Seaborne shipments for March arrival would be more difficult to sell after this news," a Singapore-based trader said.

In other metals markets, traders said the tax cut would bring down domestic ferromolybdenum prices closer to international price levels.

Most petroleum products like crude oil, gasoline, gasoil, naphtha, jet fuel and fuel oil will see the VAT reduced to 13% from 16%. VAT for LPG and natural gas will be cut from 10% to 9%.

The VAT cut will also marginally lower fuel costs for retail customers, with gasoline prices dropping to around Yuan 7.8/liter from Yuan 8/liter, a refining source in southern China said.

In petrochemicals, while the VAT cuts could boost butadiene exports from China in the longer run, the immediate impact was muted.
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MOSCOW (MRC) -- SABIC is celebrating a major milestone for its ground-breaking Digital Composites Manufacturing line. The company, in collaboration with Airborne and powered by Siemens and Kuka technologies, has successfully completed the pilot phase of the world’s first automated digital system for rapid, large-scale laminate manufacturing using SABIC’s continuous fiber-reinforced thermoplastic composite tape, as per the company's press release.

Plans for the new system were originally announced at JEC World 2018 and today, SABIC and Airborne are beginning the transition to full-scale production, which is slated for the end of 2019. To preview this unique system, SABIC is presenting a 360-degree virtual reality experience called "Innovations of Scale" at its JEC World stand.

The new automated digital manufacturing system was built at Airborne’s facility in The Netherlands and is capable of producing four thermoplastic composite laminates every 60 seconds, totaling up to 1.5 million parts annually. Potential applications include cases and covers for consumer electronics, aircraft inserts, automotive components and sports goods.

"Composites offer amazing properties found in no other materials such as extreme strength and ultra-low weight for diverse applications, ranging from wind turbine blades to sporting goods," said Gino Francato, Global Business Leader, Advanced Composites, SABIC. "Until now, however, their adoption has been restricted because of time-consuming, inefficient and expensive processes. By focusing on new materials and manufacturing automation to overcome these hurdles, the industry will make tremendous strides; and it is precisely efforts such as our collaboration with Airborne that are helping to make the industrialization of composites a reality."

"The good thing about this collaboration is that we work closely together with SABIC, so the material development, automation technology development and the product development go hand in hand", said Arno van Mourik, Chief Executive Officer of Airborne. "With such a holistic approach we can create real breakthroughs in cost efficiency for mass volume applications."

Industrialization of laminate production using the new Digital Composite Manufacturing line will enable customers in diverse industries to mass-produce high performance thermoplastic composite parts, gaining advantages of faster speed, higher efficiency and lower costs. To allow JEC World visitors to experience first-hand the line’s automated conversion process, SABIC is leveraging virtual reality technology to put visitors inside the manufacturing facility. The immersive experience called "Innovations of Scale" features a 2-meter screen with touch capabilities and Dolby Surround Sound. Visitors to the stand can interact with the display by touching 10 different points on the screen - representing different features of the new automated digital manufacturing system - to learn more.

The Digital Composites Manufacturing line uses cutting-edge digital technologies, including robotics, to enable mass customization of flat laminates while reducing cycle times and cost. The highly sophisticated, fully digital system can run multiple laminate sizes simultaneously. Adaptive process controls allow settings to be modified almost immediately. Machine learning and artificial intelligence will be used to achieve continuous yield improvements over time, maximize quality and repurpose irregular parts to minimize scrap.

To support and enhance these capabilities, SABIC will offer customers a range of services including simulation-based part and laminate design assistance and guidance on hybrid molding processes in order to streamline the switch to composites. The company can customize its composite tapes and laminate products to meet customer requirements. Importantly, SABIC can leverage its wealth of experience in injection molding to help customers mitigate warpage, a common issue, by making modifications to part design, materials selection, and processing.

JEC World 2019 is running from March 12 to 14 in Paris, France. SABIC management and technical experts are available throughout the show to answer questions and share insights on the company’s portfolio of advanced composite materials and technical capabilities.

As MRC wrote before, in November 2017, plastics-maker Sabic introduced new materials for customers producing LED automotive lighting parts. LEXAN HF4010SR resin is one of the new offerings. This polycarbonate (PC) material can make it possible for customers to develop complex headlight bezels with enhanced aesthetics. Sabic also added new grades to its existing LEXAN XHT resin line, which can offer improved flow at high temperatures compared to other high-heat polycarbonate materials available today.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
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MOSCOW (MRC) -- Saudi Aramco is planning to build a gas plant in Jafurah next year to produce various products, chief executive officer Amin Nasser said during the Al-Ahsa Investment Forum, said the company.

"The new facility is part of Saudi Aramco’s plan to produce 3 billion cubic feet of unconventional gas daily in the next decade," Nasser added.

"Al-Ahsa region has big volumes of shale gas, which are highly promising quantities and economically feasible as they contain a high rate of liquids. Activities to develop these reserves are ongoing," he further noted.

In 2014, the world’s largest oil exporter said Jafurah basin holds unconventional hydrocarbon resources.

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MOSCOW (MRC) -- INEOS set to acquire Cristals North American Titanium Dioxide Business from Tronox for USD700 million, said company.

Jim Ratcliffe, INEOS Chairman said, "This is a great opportunity for INEOS to enter the pigments market and become the second largest producer of titanium dioxide in the key North American market."

INEOS Enterprises has today announced that it has signed an agreement to acquire The North American business of National Titanium Dioxide Company Limited (Cristal) from Tronox Limited for USD700 million. Cristal’s North American business includes two-plants located at the Ashtabula Ohio (US) complex. The deal forms the proposed remedy package submitted to the US Federal Trade Commission (FTC) by Tronox ahead of its proposed acquisition of Cristal’s global titanium dioxide business.

The proposed sale of the North American business to INEOS, has received support from Cristal and Tronox’s North American customers and will make INEOS the second largest producer of this essential product in the country. The wider transaction and remedy proposal is subject to clearance by the Federal Trade Commission (FTC).

Ashley Reed, CEO of INEOS Enterprises said, “This is a great opportunity for INEOS to enter the pigments market, by acquiring a competitive business, with excellent people and assets. INEOS has a strong track record of manufacturing excellence, running its businesses safely and reliably and working closely with customers to meet their growth aspirations."

Titanium dioxide is a white pigment found in a wide range of applications from paints and varnishes as well as paper and plastics. It is the most widely used white pigment because of its brightness. Pigment applications include printing inks, fibres, rubber, cosmetic products, glass and ceramics. The global titanium dioxide market is highly competitive, with players competing based on price, quality or product, technical service, and the availability of high-performance pigments.
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