CPC Corp unable to find land to set up Rs 45,300 crore petrochemicals project in Paradip

MOSCOW (MRC) -- Taiwanese investor CPC Corporation isn't finding land for setting up its Rs 45,300 crore petrochemicals project in Paradip eight months after Odisha wooed the company at a much-publicised investor summit, as reported by Plastemart with reference to Business Standard.

A delegation drawn from the Taiwan Petrochemical Alliance led by Lee Shun-Chin, president of CPC Corporation, had surveyed the proposed site of the petrochemicals project at Paradip in August 2018. The corporation's officials also held talks with the authorities of the Paradip Port Trust (PPT). Before visiting the site, the delegation had negotiations with Dharmendra Pradhan, minister for petroleum and natural gas. The successful operations of the projects proposed by CPC Corporation were contingent on a consistent supply of feedstock by Indian Oil Corporation's (IOC) refinery unit at Paradip.

Later, CPC followed up with an investment intent at the second edition of Make in Odisha conclave held in November 2018. CPC was the second biggest investor at the biennial conclave after West Bengal-based Haldia Petrochemicals which pledged Rs 70,000 crore. But nearly eight months into the showpiece investment summit, CPC's planned project is in disarray. Land, the key component for installing the petrochemicals plant is unavailable, at Paradip.

"There is hardly any land available for CPC or other prospective investors in and around Paradip. Land acquired for the mega Posco project is to be transferred to JSW Steel. Besides, IOC has come up with a fresh proposal, seeking a land parcel of 4000 acres of land adjacent to its crude oil refinery at Paradip", said a government official in the know. Another source familiar with the development said, "CPC has not evinced interest since their initial interest. We are ready to provide them land at an alternative location if they are still keen on investment".

As MRC informed earlier, CPC Corporation's all crackers in Linyuan have a combined capacity of 1.08 million mt/year of ethylene as well as 500,000 mt/year of propylene.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC

MOSCOW (MRC) -- LyondellBasell's second quarter profits fell nearly 40% from the previous year as the petrochemical industry contends with lower prices, plentiful supplies and tariffs, as per the company's press release.

Earnings were at USD1 bln in Q2, down from nearly USD1.7 bln during the same period in 2018. Second quarter revenues fell 12% to about USD9 bln from USD10.2 bln a year earlier.

Meanwhile, the company's EBITDA was USD1.6 billion in the second quarter, an increase of 11% over the first quarter 2019.

The company increased our quarterly dividend to USD1.05 per share, the eleventh increase over the past 8 years. The issued dividends totaled USD388 million.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Russia's production of polyethylene (PE) totalled 1,085,600 tonnes in the first seven months of 2019, up by 1% year on year. At the same time, the output of exclusively linear low density polyethylene (LLDPE) increased, according to MRC's ScanPlast report.

July total PE production in Russia was 146,300 tonnes versus 167,200 tonnes a month earlier, lower production was caused by shutdowns for maintenance at Angarsk Polymers Plant and Gazprom neftekhim Salavat. Thus, overall PE output reached 1,085,600 tonnes in January-July 2019, compared to 1,071,200 tonnes a year earlier. LLDPE production increased significantly, whereas production of low density polyethylene (LDPE) and high density polyethylene (HDPE) showed a minimal decrease.

The PE production structure by grades looked the following way over the stated period.

Last month's HDPE output was 78,100 tonnes, which was virtually corresponded to the June figure. Overall HDPE production exceeded 564,500 tonnes in the first seven months of 2019, down by 1% year on year.

July LDPE output dropped to 49,300 tonnes from 57,000 tonnes a month earlier, the reduction in production was caused by the scheduled shutdowns for maintenance at the Angarsk and Salavat plants. Overall LDPE production reached 380,800 tonnes over the stated period, down by 1% year on year.

Last month's LLDPE output fell to 18,900 tonnes from 31,900 tonnes, Kazanorgsintez suspended its LLDPE production in July. The two plants' overall LLDPE production was 140,300 tonnes in January-July 2019, up by 23% year on year.

MRC

MOSCOW (MRC) -- Russia's overall production of polypropylene (PP) rose in the first seven months of 2019 by 3.1% year on year to 854,700 tonnes. Only one producers out of seven reduced the capacity utilisation, according to MRC ScanPlast.

Russia's PP production in July remained practically at the June level at about 122,700 tonnes. Russia's overall PP production reached 854,700 tonnes in January-July 2019, compared to 829,000 tonnes a year earlier. Only Poliom reduced production volume, and the largest increase in output was shown by NPP Neftekhimiya.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk reduced its capacity utilisation in July, its total production fell to 37,600 tonnes from 50,400 tonnes a month earlier. The Tobolsk plant's total PP production reached 287,000 tonnes in the first seven months of 2019, up by 5% year on year.

Poliom (Titan Group) last month produced about 18,900 tonnes of polypropylene, compared with 18,200 tonnes in June. Total PP production at the plant over the reported period was about 127,100 tonnes, down 1% year on year.

Nizhnekamskneftekhim produced 18,800 tonnes of propylene polymers in July versus 18,500 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer exceeded 124,700 tonnes in the first seven months of 2019, compared to 123,600 tonnes a year earlier.

Tomskneftekhim last month produced slightly more than 12,000 tonnes against 12,400 tonnes a month earlier. Total PP production by the producer increased to 86,800 tonnes in January-July 2019, up 4% year on year.

July PP production at Ufaorgsintez reached about 11,800 tonnes from 11,800 tonnes a month earlier. The Ufa plant's overall output of polymer reached 78,400 tonnes in January-July 2019, up 1% year on year.

NPP Neftekhimiya (Kapotnya) produced about 12,200 tonnes last month, compared to 9,600 tonnes in June. The plant's overall PP output reached 83,200 tonnes over the stated period, up by 7% year on year.

Stavrolen (LUKOIL) increased its capacity utilisation in July, the total production of propylene polymers was 11,400 tonnes versus 10,900 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers increased in the first seven months of 2019 to 67,500 tonnes from 64,300 tonnes a year earlier.

MRC

MOSCOW (MRC) -- BASF has launched its Creation Center in Shanghai, China, bringing customers and BASF experts together to transform conceptual ideas into creative solutions, as per the company's press release.

The Creation Center in Shanghai, China was opened by Andy Postlethwaite (right), Senior Vice President, Performance Materials Asia Pacific, BASF, and Alexandre Dreyer, Leader Creation Center, Asia Pacific, BASF.

At the Creation Centers, equipped with world-class workshop facilities and interactive material showcases, BASF provides resources to discover, understand, and create new and improved products and solutions with BASF materials. Customers can explore innovative material solutions, use interactive digital tools such as a tablet device that enable them to learn about the materials, and participate in ideation and material consultancy workshops. Together with BASF experts, they can seamlessly collaborate from design development to advanced simulations through computer-aided engineering (CAE) through to advanced prototyping. In Asia, BASF also operates Creation Centers in Mumbai, India, and Yokohama, Japan.

As MRC wrote before, German chemicals giant BASF has warned profit would fall well below forecasts for the second quarter and full year, blaming a global economic slowdown and trade war between the United States and China.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC