CNPC pulls out from USD4.8 bil Iranian gas project

MOSCOW (MRC) -- China's CNPC has pulled out from Iran's USD4.8 billion South Pars gas project, Iran's oil minister said on Sunday, after France's Total abandoned the deal last year amid looming US sanctions on Tehran, reported S&P Global.

Iran's Petropars will now develop the Phase 11 of the gas project, which was signed in 2017. CNPC was supposed to take Total's 50.1% stake in the project on top of its initial 30% share.

"The phase 11 of South Pars gas field has been decided. Petropars alone will continue development of this phase," Bijan Zanganeh was quoted as saying by the ministry's Shana news service.

"Yes, it has stepped aside," Zanganeh said when asked if the Chinese company had pulled out of the project.

Total left the project last year as the US re-imposed sanctions on Iran after Washington pulled out from a nuclear deal with Tehran.

The project is aimed initially at meeting domestic gas demand, with potential for exports in later years. Production capacity is forecast at around 2 Bcf/d of gas, coming on stream in 2021. When fully operating, the scheme is also expected to deliver around 70,000 b/d of condensate.

Zanganeh said that the Iranian contractor will install the first jacket in phase 11 by March in addition to a platform with gas extraction capacity of 500 MMcf/d.

When asked why Iran had not abandoned the CNPC deal after Total's pull-out, Zanganeh said: "We wanted to attract foreign investment for this phase. In addition, the pressure boosting platform was important for us and Petropars was due to learn the job alongside these companies."

Iran shares the giant offshore South Pars gas field with Qatar, where it is called the North Field.

As MRC wrote previously, in October 2018, CNPC started operating an expanded refinery in northern China with an annual processing capacity of 10 million tonnes (200,000 barrels per day). CNPC also added a refined fuel pipeline connecting Fushun and Jinzhou, both in northeast Liaoning province, and a separate pipeline linking Jinzhou with central Chinese city of Zhengzhou. The state firm operates two refineries in Jinzhou.

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.
MRC

Sipchem chairman Abdulaziz Al-Zamil dies

MOSCOW (MRC) -- Eng Abdulaziz Al-Zamil, chairman and non-executive member of Sahara International Petrochemical Company (Sipchem) and chairman of Zamil Group Holding Company, passed away on 6 October 2019, ConstructionWeek reported.

Sipchem is listed on the Saudi exchange, Tadawul. In a filing to Tadawul, Sipchem said that "updates on the appointment of a new chairman will be announced later."

Zamil Group was founded almost 95 years ago by Abdulaziz Al-Zamil's father, Abdullah Al-Hamad Al Zamil. The company's board comprises 12 Al-Zamil brothers, according to the company website. Zamil Group operates in the construction, chemicals, marine & offshore, and real estate sectors, among others.

Sipchem, originally named the Saudi International Petrochemical Company, was founded in 1999 by Zamil Group. In 2006, Zamil Group founded Sahara Petrochemical Company, which merged with Sipchem in May 2019.

As MRC wrote before, in early April 2019, Sahara Petrochemicals announced that its current CEO, Salah Mohammed Bahmdan, will head up the new group that will be formed from its merger with Saudi International Petrochemical (Sipchem). The companies disclosed last December that they had agreed to a merger of equals in a move they estimate to yield synergies of up to 225 million Saudi riyal, or USD60 million, by the end of the third year after completion.

We also remind that on July 26, 2014, Sipchem commenced trial runs at a new ethylene vinyl acetate (EVA)/low density polyethylene (LDPE) swing plant in Saudi Arabia. Located in Jubail, the plant has a production capacity of 200,000 mt/year.

According to MRC's DataScope report, July EVA imports to Russia increased by 4% year on year to 3,490 tonnes from 3,350 tonnes in July 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-July 2019 by 14, 3% year on year to 22,440 tonnes (26,170 tonnes in the first seven months of 2018).

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound in 2013.
MRC

Shell promotes Australia head to run global conventional oil, gas unit

MOSCOW (MRC) -- Royal Dutch Shell has promoted its current Australia chief, Zoe Yujnovich, to the role of executive vice president for conventional oil and gas from Jan. 1, based in the group’s headquarters in The Hague, reported Reuters with reference to Shell Australia's statement.

In her new role, Yujnovich will report to Shell’s upstream director and be responsible for delivering growth across 18 countries, including Kazakhstan, Nigeria, Oman, the UK and Iraq.

Yujnovich, an Australian, joined Shell in Canada in 2014 from the mining industry and since February 2017 has run its Australian business, which accounts for about a quarter of the group’s invested capital.

She oversaw the completion of Shell’s first floating liquefied natural gas (LNG) project, Prelude, which finally shipped its first LNG cargo in June this year after overcoming a number of start-up problems.

The current head of eastern Australian operations, Tony Nunan, has been promoted to succeed Yujnovich as country chair for Australia, Shell Australia said.

"(Australia) is integral to our global strategy to lead in LNG and move into power to provide more and cleaner energy ... in the decades ahead," Yujnovich said in a statement.

As MRC informed before, operations were stable on 13 September at Royal Dutch Shell Plc’s 340,000 barrel-per-day (bpd) joint-venture refinery in Deer Park, Texas, after the upper Houston Ship Channel was closed by protesters from Greenpeace USA. The Deer Park refinery is a 50-50 joint-venture between Shell and Mexico’s national oil company Petroleos Mexicanos (Pemex). Shell is the managing partner of the joint-venture. Shell has three crackers at Deer Park site with a combined ethylene capacity of 1,67 mln per year and petrochemical plants.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Clariant to expand MA catalysts production in China

MOSCOW (MRC) -- Clariant, a focused and innovative specialty chemical company, today announced it will significantly expand the capacity of its catalysts production facility in Panjin, Liaoning province, Northeast China, said the company.

A double-digit CHF million investment will further optimize the existing facility and enable the creation of a new state-of-the-art production line for Clariant’s SynDane maleic anhydride (MA) catalyst.

"This investment supports Clariant’s strategy of focusing on its core high-value specialty businesses to intensify growth. Asia-Pacific, and especially China, is a main growth market and therefore it is vital that we continue to enhance our presence and customer proximity," said Hans Bohnen, Clariant's Chief Operating Officer.

The ambitious project will allow Clariant to enable its customers to meet the dynamically growing global demand for MA, as production is expected to jump from 1.75 million tons in 2018 to 2.07 million tons in 2022[1]. MA is a fundamental component of polymers and coatings used in the construction, automotive, marine, and energy industries.

Stefan Heuser, Senior Vice President & General Manager Business Unit Catalysts at Clariant, commented on the development: “With a high-performance MA catalyst range and extensive R&D investment, Clariant is well positioned to support MA producers globally. The expansion of our catalyst production in Panjin will further strengthen our leading role in this market."

Clariant’s SynDane catalysts are optimized for cost-efficient MA production via selective oxidation of n-butane in fixed-bed tubular reactors. Thanks to their innovative microstructure and chemical composition, they offer superior yield, selectivity and operating stability. This greatly reduces the formation of by-products (such as acrylic acid and acetic acid) as well as their downstream polymerization, thus minimizing downtime for equipment.

Since 2007, Clariant has produced SynDane MA catalysts at the Panjin plant as a joint venture with North Huajin Chemical Industries Group Corporation, one of China’s leading petrochemical companies. The sophisticated production site in Panjin engages more than 140 employees in manufacturing catalysts and adsorbents for the production of butane-based maleic anhydride, ammonia, hydrogen, and methanol, as well as other applications.

MA is a fundamental component of polymers and coatings used in the construction, automotive, marine, and energy industries.
MRC

MFG Chemical renews certifications at chemical facilities

MOSCOW (MRC) -- MFG Chemical, a global leader in specialty and custom chemical manufacturing has successfully renewed its ISO 9001:2015 Certifications at each of its three Dalton, Georgia facilities, reported Hydrocarbonprocessing.

MFG was one of the first chemical companies to achieve ISO 9001: 2015 certification in October of 2016, and has now been audited and certified four times.

ISO 9001 is the international standard that specifies requirements for a quality management system (QMS). Organizations use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements. ISO 9001 is based on the plan-to-check-act methodology and provides a process-oriented approach to documentation and reviewing the activities. As part of the ISO9001:2015 certification process, MFG Chemical engaged in a rigorous audit of its business processes, as well as its product quality environments. By maintaining this level of certification MFG Chemical demonstrates a quality management system and continuous improvement of its products and services.

MFG President & CEO Keith Arnold, commented, "We are proud to have our Dalton plants certified for the fourth time, and we plan to achieve the same ISO 9001: 2015 Certification at our recently upgraded Pasadena, Texas plant."
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