Advanced Petrochemical runs Jubail PDH, PP units at lower rates due to oil attack

MOSCOW (MRC) -- Saudi Arabia's Advanced Petrochemical Company is running its 500,000 mt/year propane dehydrogenation unit and a polypropylene unit of 450,000 mt/year, at its Jubail complex at 40% capacity, due to the Saudi oil attack that happened on Saturday which reduced the company's supply of feedstock, reported S&P Global with reference to the company's statement Monday.

The company is currently working to evaluate the financial impact, according to the statement.

Drone attacks on Saudi Aramco's Abqaiq processing facility and the Khurais field on Saturday morning have led to production cuts of around 5.7 million b/d or half of the company's production capacity, according to the kingdom's Minister of Energy, Prince Abdulaziz bin Salman.

Advanced Petrochemical accounts for about 5% of the Middle East's propylene and PP capacities.

As MRC informed earlier, on 29 January 2015, Advanced Petrochemical Company announced the signing of long-term off-take agreements for the sale of PP with Mitsubishi Corporation of Japan (150,000 metric ton per annum) and Domo Investment Group of Belgium (100,000 metric ton per annum), to be effective from January 1, 2019 for a period of ten years after the expiry of the previous off-take agreements.

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.

Advanced Petrochemical Company (before Advanced Polypropylene) is a Saudi Joint Stock Company, established in October 2005. The company was initially launched by National Polypropylene Limited, jointly owned by Mr. Khalifa Al Mulhim, the chief executive officer of Advanced, and Mr. Monther Laheeq, who negotiated all the main deals related to the project, either before or after the establishment of Advanced Petrochemical. Currently, National Polypropylene Limited controls 7.9% of Advanced Petrochemical. Advanced Petrochemical started the construction of its plants in May 2005. The company produces 455,000 tons per year of propylene and 450,000 tons per year of polypropylene from its production facility located in Jubail Industrial City, in the Eastern coast of the Kingdom of Saudi Arabia.
MRC

MOSCOW (MRC) -- Three Saudi petrochemical producers announced a serious reduction in feedstock supplies in the wake of drone attacks on Saudi Arabia’s largest oil processing plants on the night of September 14, reported NCT.

Thus, Kayan Petrochemical’s feedstock supplies to its plants have been halved due to the attack, the company said in a news release.

The Saudi company owns a 350,000 tons/year polypropylene (PP) unit, as well as low density polyethylene (LDPE) and high density polyethylene (HDPE) plants each with 300,000 tons/year capacity.

As MRC informed before, in February 2015, Saudi Arabia’s Oil Ministry allocated an additional 10m cbf/d (2.8m cbm) of ethane to Saudi Kayan Petrochemical Co (Al Jubail / Saudi Arabia) to enable an expansion of capacity at its Al Jubail complex. Thus, the company has widened its ethylene production by 93,000 t/y and its ethylene oxide capacity by 61,000 t/y since the second quarter of 2017.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, 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.

Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic).
MRC

MOSCOW (MRC) -- Saudi Arabia's Sadara Basic Services Company has cut run rates at 350,000 mt/year low density polyethylene (LDPE) and 750,000 mt/year of high density/linear low density polyethylene (HDPE/LLDPE) swing units, in Jubail by 16%, due to the Saudi oil facility attack that happened on Saturday which reduced the company's supply of feedstock, reported S&P Global with reference to the company's statement on Monday.

The company is currently working to evaluate the financial impact, according to the statement.

Drone attacks on Saudi Aramco's Abqaiq processing facility and the Khurais field on Saturday morning have led to production cuts of around 5.7 million b/d or half of the company's production capacity, according to the kingdom's Minister of Energy, Prince Abdulaziz bin Salman.

As MRC wrote previously, in December 2015, Saudi Arabia's Sadara Basic Services, fully owned by Sadara Chemical, started at its polyethylene (PE) plant in Jubail Industrial City II. The plant is designed to produce 375,000 metric tons per year of products used in specialty applications, such as the manufacture of food-grade plastics, industrial and consumer packaging and health and hygiene films.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased.

Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical .
MRC

MOSCOW (MRC) -- Saudi Arabia's National Industrialization Company, or Tasnee, has announced a curtailment of feedstock to petrochemical affiliates in varying proportions by an average of 41% due to the attacks on key Saudi Aramco facilities on Saturday, reported S&P Global with reference to the company's statement.

Tasnee owns a majority stake in Saudi Polyolefins Company and Saudi Ethylene and Polyethylene Company.
SPC has a 455,000 mt/year propylene and the 450,000 mt/year polypropylene (PP) factory.

SEPC has a 1 million mt/year ethylene unit, a 285,000 mt/year propylene unit and a 400,000 mt/year of high density polyethylene plant (HDPE), as well as a 400,000 mt/year low density polyethylene unit (LDPE).

As MRC informed before, in 2018, Tasnee conducted maintenance at its PP plant in Al-Jubail from 10 February to late February. Located at Al-Jubail in Saudi Arabia, the plant has a production capacity of 720,000 mt/year.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, 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.

Headquartered in Riyadh, Tasnee is primarily engaged in petrochemical, chemical and industrial projects. The
company produces petrochemical products, including polypropylene, polyethylene and acrylic acid, as well as other downstream petrochemical products.
MRC

MOSCOW (MRC) -- East China's monoethylene glycol inventories at main ports tumbled almost 100,000 mt week on week to around 793,000 mt Thursday, surprising the market by returning to the normal range not seen since January, before a supply glut pushed stocks to record highs above 1.4 million mt in April, reported S&P Global.

The sudden plunge has caught many participants by surprise as stocks had widely been expected to remain above 1 million mt for the rest of the year, and appears to have been triggered by MEG production cuts in Asia in response to poor profit margins -- which kicked in just before demand in the region perked up.

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 decreased in July 2019 by 4% year on year. 428,790 tonnes of PET were processed in Russia over January-July 2019. Russia's PET production was 44,430 tonnes in July.
MRC