Indorama Lake Charles steam cracker startup pushed to 2020

MOSCOW (MRC) -- Although Indorama’s Lake Charles steam cracker was mechanically complete in May, the plant likely won’t fully start up until January 2020, reported 1012IndustryReport.

In its latest quarterly earnings relase last week, the company said the availability of cheap spot ethylene amid other cracker startups reduced the pressure to ramp up its own unit.

Indorama bought the cracker from Occidental Chemical in 2015 and launched an extensive revamp to increase its capacity to the current level from 370,000 mt/year. OxyChem had shut the cracker in 2001. Originally planned for commissioning in late 2017, the refurbished cracker - jointly owned by IVP (76%) and Singapore-based Indorama Corp. (24%) - is designed to process both ethane and propane feedstock from US shale to produce about ethylene and propylene.

The cracker’s output "has not been commercialized due mainly to implementation of technical improvements discovered during the testing phase, since spot ethylene availability at a low cost can meet our captive needs," the company said. "We foresee startup of this facility on a permanent basis starting January 2020."

As MRC wrote previously, in May 2019, IVL announced that its indirect subsidiary Indorama Ventures Olefins in Westlake, LA, a manufacturer of Ethylene from Ethane with an annual capacity of 440,000 MT, achieved mechanical completion and is undergoing trial runs. IVOL has stabilized the production of on-spec Ethylene and its byproducts at 5 of its 7 furnaces and will ramp up gradually during the course of 2Q19.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017. The company is listed in the Dow Jones Sustainability Index (DJSI).
MRC

MOSCOW (MRC) - INOVYN, one of the largest manufacturers of polyvinyl chloride (PVC) in the world, resumed production of caustic and chlorine in Tavaux (France) after a scheduled maintenance works, said Polymerupdate.

The plant with a capacity of 403,000 tonnes/year of caustic soda and 360,000 tonnes/year chlorine was closed on 21 September and resumed production on 29 September because of partial maintenance shutdown.

Earlier it was reported, said in April 2019, INOVYN also shut down this site for a scheduled maintenances.

As MRC reported earlier, INOVYN started maintenance works at its polyvinyl chloride (PVC) plant at its Jemeppe Site, Belgium. The Jemeppe site is one of the largest PVC production capacities in Europe with 420,000 tons/year of material supplied to key sectors including building, automotive and piping.

As per MRC' ScaPlast, calculated consumption of caustic soda in Russia reached 676,300 tonnes in January-August 2019, down 2% year on year (660,600 tonnes). Imports of caustic soda for eight months of 2019 increased by 13% to 16,000 tonnes, while in 2018 this figure was at 14,200 tonnes.

Headquartered in London, INOVYN has pro-forma sales of more than EUR3 billion, with 4,300 employees and assets across 14 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the Joint Venture is equally split between the partners.
MRC

MOSCOW (MRC)--LyondellBasell announced that Michael McMurray has been appointed executive vice president and chief financial officer (CFO), effective Nov. 5, 2019, said the company.

McMurray joins LyondellBasell following a nearly 11-year career at Owens Corning where he served as vice president, Investor Relations and treasurer; vice president, Finance for the Building Materials Group; and, for the past seven years, as chief financial officer. Prior to Owens Corning, McMurray spent 21 years in various positions of increasing responsibility with Royal Dutch Shell including as vice president, Shell Capital; global treasurer for Shell Chemicals; and Americas Finance manager for the Lubricants business.

McMurray sits on the board of directors for Flowserve, a global pumps and valves manufacturer. Mr. McMurray earned a bachelor's degree in Business Administration from Trinity University in San Antonio, Texas and an MBA from Tulane University in New Orleans, Louisiana.

As MRC informed earlier, LyondellBasell has arted up a new, fifth production line at its polypropylene compounding plant in Knapsack, Germany capable of producing 25 kt/yr. With this, capacity of the Knapsack facility is over 200 kt/yr, making the site "the world’s largest polypropylene compounding facility".

In late September 2019, LyondellBasell declared a force majeure on PP supplies from its Carrington, UK facility. The news could not be confirmed directly by the company while the reason for the force majeure was not disclosed at the time of press. LyondellBasell’s Carrington plant is able to produce 210,000 tons/year of PP.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 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, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- MEGlobal plans to start shipments of commercial production from its new 750,000-metric ton/year ethylene glycol (EG) unit at Oyster Creek, Texas, to international markets by late November 2019, reported S&P Global.

The plant was inaugurated on 10 September 2019 and was in its final start-up stages and expected to produce on-spec product within 30 days.

The plant, Equate’s first in the United States, has capacity for 700,000 metric tons/year of monoethylene glycol (MEG) and 50,000 metric tons/year of diethylene glycol (DEG). Total investment was USD2 billion, including a capital contribution to Dow that secured ethylene feedstock supply at producer economics.

EG demand continues to grow at more than 5%/year led by polyethylene terephthalate (PET) and polyester fiber, which combined account for roughly 85% of MEG demand.

Equate and MEGlobal also have EG production in Alberta, Canada as well as Kuwait. The global production footprint is an advantage given recent trade tensions. US EG exports to China are challenged by 25% tariffs but MEGlobal can export US production to Latin America and India while Canadian and Kuwait product will target China.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, Russia's estimated PET consumption reached 62,540 tonnes in August 2019, up 9% year on year. The estimated consumption of PET in the Russian market increased in January-August 2019 to 493,240 tonnes, up by 12% year on year.

MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG). Established in July 2004, the company is a joint venture between The Dow Chemical Company and Petrochemical Industries Company of Kuwait and is headquartered in Dubai, United Arab Emirates. With approximately 200 employees worldwide, MEGlobal serves customers around the world, and has production facilities in Fort Saskatchewan and Prentiss, Alberta, Canada.
MRC

MOSCOW (MRC) -- Indorama Ventures' ethylene oxide/monoethylene glycol operation in Clear Lake, Texas, has resumed full rates after a September fire at another company's facility interrupted the provision of utility services, reported S&P Global with reference to a source familiar with company operations.

"The fire was not in the EO/EG unit and did no damage to our plant," the source said in an email late Thursday. "We are currently at full operating rates."

The September 21 fire damaged a carbon monoxide unit at Celanese's Clear Lake complex, prompting a shutdown of the company's 1.7 million mt/year fairway methanol unit as well as 300,000 mt/year vinyl acetate monomer (VAM) and 1.3 million mt/year acetic acid units. Celanese announced earlier this week the methanol unit had restarted, and the company aimed to restart the VAM and AA units in October.

The fire's interruption of utility service affected Indorama's nearby Clear Lake facility, temporarily disrupting output until such service was restored at the Celanese complex. An Indorama spokesman was not immediately available for comment Friday.

The cause of the Celanese fire is under investigation, and no injuries were reported.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, New Polymers Senege, one of the Russian producers of PET chips, shut production at its polyethylene terephthalate (PET) plant for scheduled maintenance on 1 October. The plant's source said the shutdown would last for about one month. The exact date of the completion of the turnaround was not disclosed.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 19,000 employees worldwide and consolidated revenue of USD 10.7 billion in 2018. The company is listed in the Dow Jones Sustainability Index (DJSI).
MRC