Ufaorgsintez resumed PP production

MOSCOW (MRC) - Ufaorgsintez (UOS, Bashneft's petrochemical asset) has resumed operation of part of its PP production facilities after stopping for scheduled maintenance works, according to ICIS-MRC Price Report.

The plant's customers said Ufaorgsintez fully resumed its PP production after the scheduled maintenance on Monday, 30 September. The outage was short and lasted 12 days. The plant's PP capacity is 120,000 tonnes/year.

It is also worth noting that this is the third Russian producer, which in September shut its facilities for turnaround and resumed production after the maintenance works. In the previous two weeks, Tomskneftekhim and Poliom resumed their work after the shutdowns.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.
MRC

Iran building oil pipeline to terminal outside Gulf

MOSCOW (MRC) -- Iran is building a USD1.8 billion oil pipeline to its port of Jask outside the mouth of the Gulf, the country’s oil minister said, as part of plans to protect its exports against potential problems in the region and to boost shipments of Caspian oil, said Hydrocarbonprocessing.

Iran has been planning since at least 2012 to set up the terminal on the Gulf of Oman, just outside the Strait of Hormuz.

Tehran has threatened to block the vital Gulf oil shipping route during its standoff with the United States, after Washington last year withdrew from Iran’s 2015 nuclear deal with world powers and reimposed sanctions, including on Tehran’s vital oil exports.

“The project would transform the region as various oil storage facilities, export jetties, wave breakers and single buoy mooring systems would be built in Jask,” Oil Minister Bijan Zangeneh said on the ministry’s Twitter account.

Zangeneh added that two refineries, as well as petrochemical facilities, were also planned in the region.

“Zangeneh said the country was building a USD1.8 billion oil pipeline project from Goreh to Jask Port, of which $700 million alone would be spent on developing the port,” the ministry tweeted.

Industry sources told Reuters that Iranian crude exports had dropped in June to 300,000 barrels per day (bpd) or less after Washington tightened sanctions on the country’s oil exports in May. In April 2018 exports stood at more than 2.5 million bpd.
MRC

Sonatrach, Turkish partner sign contracts for USD1.4-billion PDH, PP complex in Turkey

MOSCOW (MRC) -- The national hydrocarbons company Sonatrach officialized the launch of its huge petrochemical plant project in Adana, Turkey, with its partner, Ronesans, at an investment cost of USD1.4 billion, that will be financed by 70% through bank loans and 30% by the project shareholders, said Plasticsnewseurope.

A statement from Sonatrach, which copy was received by Echorouk, said it signed, Thursday, through its subsidiary Sonatrach Petroleum Investment Corp. (SPIC) and the Turkish company CPEY of Ronesans in Istanbul, a series of contracts to launch engineering studies for a petrochemical complex to produce propylene and polypropylene (PP-PDH), which will be completed in the Turkish region of Seyhan in the southern province of Adana.

The statement explained that the parties had launched on August,19, 2019, a joint venture company under Turkish law, as the company’s capital is estimated at 34% for the Algerian party and 66% for the Turkish party.
The large project’s company will undertake the design, engineering, construction and utilization of a production capacity of 450,000 tons per year of polypropylene in Turkey’s Seyhan industrial zone for petrochemical development.

The project will allow Sonatrach to secure an Algerian propane gas market for a long period up to 2040 with an estimated amount of 540,000 tons per year and to generate financial returns as a 34% shareholder in the project.

As it was informed earlier, Sonatrach's petrochemicals joint venture with Total has selected Honeywell UOP's C3 Oleflex technology for its proposed 565,000 tonne/year polymer-grade propylene project in Arzew, Algeria. The catalytic dehydrogenation technology converts propane into propylene.

Propylene is a feedstock for producing polyprolypele (PP).

According to MRC's ScanPlast report, Russia's 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.
MRC

Huntsman completes purchase of remaining 50% in German MA joint venture

MOSCOW (MRC) -- Huntsman Corporationannounced that it has completed the previously announced acquisition of the remaining 50% interest in the Sasol-Huntsman maleic anhydride joint venture from Sasol, said the company.

Huntsman now owns 100% of the entity with manufacturing assets located in Moers, Germany, and the capacity to produce 230 million pounds annually of maleic anhydride. Huntsman paid Sasol approximately USD100 million, which includes acquired cash net of any debt and is subject to customary post-closing adjustments.

Peter Huntsman, Chairman, President and CEO, commented: "Closing on the acquisition of the remaining interest in our maleic German joint venture provides us with the flexibility to fully integrate our European business into our worldwide footprint, thereby better servicing our global customer base in key markets such as construction and coatings. This fits well into our core strategy to expand our portfolio of businesses with higher, more stable margins and strong free cash flow."

Monte Edlund, President of Huntsman’s Performance Products division, added: "We are very pleased and excited to assume full control of this excellent business and asset. By fully integrating the Moers, Germany, plant with our existing maleic anhydride business, we will be able to improve our service and offering into key markets such as resins in construction, watercraft, transportation vehicles, and sporting goods, as well as into applications such as food acidulants, oilfield chemicals, and engine oil additives."

The deal was announced in July 2019.

As it was informed earlier, SIBUR intends to produce up to 45,000 tonnes/y of maleic anhydride, a key ingredient in paints and coatings, at its plant in Tobolsk, Siberia. Russia's market for decorative paint and coatings stood at about 877,300 tones, while the industrial paint and coating materials market was estimated at 416,700 tonnes, presenting 32.3% of the overall Russian market.

MA is mostly used in the manufacture of unsaturated polyesters resins (UPRs) used in the production of boat hulls, bathroom fixtures, automobiles, tanks and pipes. Other outlets include 1,4- butanediol (BDO), tetrahydrofuran (THF) and gamma-butyrolactone (GBL).

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than USD9 billion.
MRC

INEOS Phenol breaks ground at its world scale Cumene investment at Marl, Germany

MOSCOW (MRC) -- INEOS Phenol has broken ground at its world scale cumene investment in Marl, Germany, said the company.

The new state-of-the-art 750 000 t unit is scheduled to be completed in 2021. Its location will help optimise the efficiency of the plant by integrating raw materials from the refinery and cracker complex. The site also benefits from the Marl harbour waterway connection.

The ceremony was attended by Economy Minister Andreas Pinkwart and local politicians, as well as customers and business partners of INEOS.

INEOS Phenol is the world’s largest producer of phenol and acetone and the largest consumer of cumene as an essential raw material. The construction of the plant will support customer’s ambitions and secure the supply of raw material to the INEOS phenol and acetone plants located in Gladbeck and Antwerp for decades to come.

At the ceremony, Andy Currie, Director of INEOS Capital, said: “INEOS Phenol has been a strong contributor to the INEOS Group for nearly 20 years. The investment here, at Marl in a world scale cumene unit will help underpin the continued success of this business for many more years to come."

Hans Casier, CEO of INEOS Phenol, added: “We are very pleased to be making this important feedstock investment in our European business. It shows a clear commitment by INEOS to its business, customers and suppliers. Our customers should be confident that we are investing in our business to meet their long-term business needs."

Minister Pinkwart said: “The chemical industry is the driver of innovation, it provides essential basics and is imperative for coping with tasks ahead. This new plant will be a fine example of the industry's innovative strength. Today's ground-breaking ceremony is also a sign for the unique ‘Verbund’ structure of our chemical industry in North Rhine-Westphalia. The ‘Verbund’ makes an important contribution to the attractiveness of chemistry in the northern Ruhr area and to the increasing competitiveness of our industry."

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to ICIS-MRC Price report, July imports of PC granules and compounds to Russia, excluding deliveries from Belarus, were 2,3400 tonnes, compared to 1,840 tonnes a month earlier and 1,070 tonnes in July 2018. Last month's imports of PC granules, excluding Belarusian shipments, were 1,940 tonnes (extrusion grade PC - 1,290 tonnes, injection moulding PC - 580 tonnes, blow moulding PC - 80 tonnes) versus 790 tonnes in July 2018. In June 2019, imports of PC granules reached 1,350 tonnes. Shipments of PC granules, excluding imports of Sabic material from Belarus, rose in January-July 2019 by 87% year on year to 9,140 tonnes from 4,890 tonnes a year earlier.
MRC