MOL announced force majeure on PP supply in Tiszaujvaros

MOSCOW (MRC) - MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, on 23 September announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary), said Nctww.

No details were disclosed regarding the reason or the duration of the force majeure. This enterprise with a capacity of 50,000 tonnes/year was closed for unscheduled repairs on 20 September for unknown reasons.

According to the company’s website, MOL’s total PP production capacity is 535,000 tonnes/year.

According to MRC's ScanPlast report, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

MOL Hungarian Oil and Gas PLC is an integrated oil and gas company. The Company produces crude oil, petroleum products, bitumens, lubricants and natural gas. MOL owns and operates refineries, oil and gas pipelines, service stations, and natural gas storage facilities.
MRC

SIBUR and Netkanika sign cooperation agreement

MOSCOW (MRC) -- SIBUR and Netkanika signed a strategic cooperation agreement aimed at facilitating the export of polypropylene nonwoven materials produced by Netkanika from SIBUR’s polypropylene, said the company.

In February 2019, SIBUR and the Russian Export Center (REC) launched Export Accelerator, a joint educational initiative to enhance client export potential and expertise in foreign economic affairs. The participants completed their training with individual product export and foreign market expansion cases, learning to roll out and scale up their export initiatives going forward. The participants included eleven SIBUR's clients in polymer processing that seek to boost overseas sales or show strong potential for entering international markets.

SIBUR produces a wide range of polypropylene grades, including feedstock for nonwovens finding application in hygiene and healthcare, such as baby and adult hygiene products and medical goods for body and skin contact uses.

"SIBUR consistently cultivates the demand for modern polymer products. The agreement with Netkanika will foster the export of high-quality polypropylene nonwoven materials to the markets outside Russia and the Customs Union,” said Sergey Komyshan, member of SIBUR’s Management Board and Executive Director.

"Our nonwovens for body and skin contact application are produced with the highest quality feedstock,” said Andrey Zimin, General Manager of Netkanika LLC. “The new strategic agreement between Netkanika and SIBUR is sure to kick-start Netkanika’s export sales."

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

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

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
MRC

Bilfinger awarded seven-year ExxonMobil maintenance contract

MOSCOW (MRC) -- Bilfinger UK has secured a seven-year contract with ExxonMobil Chemical to provide preventative maintenance at its Fife Ethylene Plant (FEP), said Hydrocarbonengineering.

The multi-million-pound agreement will see Bilfinger become the embedded provider of maintenance services at the Mossmorran facility and the Braefoot Bay tanker terminal on the Forth.

It is estimated that the contract – part of ExxonMobil’s ?20 million annual maintenance spend at the facility – will see the engineering provider deploy up to 100 000 man-hours annually on inspection programmes as well as mechanical, process and infrastructure maintenance.

Bilfinger, which has a base in Grangemouth, has taken over from the incumbent provider with approximately 55 personnel transferring under TUPE arrangements.

Phill Maurer, Managing Director at Bilfinger UK, said: “This seven-year agreement is testament to the strong relationship we’ve formed with ExxonMobil and is a significant addition to our portfolio of support partnerships at major facilities across the UK."

"Our experience and breadth of expertise means we’re ideally placed to deliver a well-managed maintenance strategy focused on achieving the best possible outcome for ExxonMobil. We look forward to welcoming our new Fife colleagues to Bilfinger."

Jacob McAlister, Plant Manager of the Fife Ethylene Plant, said: “Preventative maintenance is key to the safe and reliable operations at FEP. ExxonMobil’s Fife Ethylene Plant operates under the most demanding of engineering standards and it is vital that we chose a contractor with the knowledge, expertise and innovative solutions to ensure these are met the first time, every time."

“Many contract personnel have worked with us for a long time and have extensive knowledge of the plant. We are delighted they will transfer over to the new supplier and continue their relationship within FEP."

The FEP contract extends the existing relationship between ExxonMobil and Bilfinger, which also provides specialist services to the ExxonMobil facility in Fawley, Hampshire.

FEP began operations in 1984 and produces over 800 000 tpy of ethylene. A major employer in the area for more than 30 years, over 270 employees and core contractors work at FEP with more than 60%s living within ten miles of the plant.

As MRC informed earlier, Bilfinger has been chosen as maintenance partner for a EUR60 million contract by SABIC UK Petrochemicals Limited to carry out a range of services across facilities on its Teesside site.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption was 1,081,100 tonnes in the first half of 2019, up by 8% year on year. Deliveries of all PE grades increased. Meanwhile, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Shenhua Xinjiang resumed production at its PP unit in China after turnaround

MOSCOW (MRC) -- Shenhua Xinjiang Mining Co has brought on-stream its polypropylene (PP) unit following a maintenance turnaround, according to Apic-online.

A Polymerupdate source informed that, the company has resumed operations at the unit on September 24, 2019. The plant was shut for maintenance in mid-August, 2019.

Located at Xinjiang, China, the PP unit has a production capacity of 450,000 mt/year.

The company also operates the low density polyethylene (LDPE) unit at the same site. This plant's production capacity is 270,000 mt/year.

As MRC wrote before, last year, the company conducted maintenance works at LDPE unit in Xinjiang from 4 to 28 August.

According to MRC's ScanPlast report, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

Shenhua Group Corporation Limited was a Chinese state-owned mining and energy company. Shenhua Group was founded in October 1995 under the auspices of the State Council of the People's Republic of China. It was the largest coal-producing company in China.
MRC

BASF expanding production capacity for NPG

MOSCOW (MRC) -- BASF has increased the manufacturing capacity for neopentyl glycol (NPG) at its headquarters facility in Ludwigshafen, Germany, and is set to further boost capacity of the chemical intermediate globally, said the company.

Production capacity at Ludwigshafen, said BASF in a statement 26 Sept, has been raised by 10 kilotonnes per annum (ktpa), bringing the company’s total NPG production volumes to 215ktpa globally.

In addition, the German chemicals supplier is expecting to increase its NPG production in Nanjing, China, by 40ktpa as of 2020.

With a manufacturing footprint in Ludwigshafen, Germany; Freeport, Maine, US; as well as in Nanjing and Jilin in China, BASF is claimed to be one of the world's leading NPG manufacturers.

"The production expansion in Ludwigshafen underlines our clear commitment to continuously support the growth of our European customers," said Michael Britt, SVP acids and diols in BASF's intermediates division.

Neopentyl glycol is an organic chemical intermediate, used as a building block for the synthesis of polyesters, paints, lubricants, and plasticisers.

When used in the manufacture of polyesters, it enhances the product’s ability to remain stable when exposed to heat, light, and water.

As MRC informed earlier, that BASF last week resumed No 1 naphtha cracker after maintenance turnaround in Ludwigshafen, Germany.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 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.

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