Hengyi Petrochemical inks crude oil supply, products distribution deals with local companies

MOSCOW (MRC) -- Hengyi Industries Sdn Bhd, a joint petrochemical venture between China and Brunei, on Wednesday inked commercial agreements with Brunei Shell Petroleum Company (BSP) and Brunei Shell Marketing Company (BSM) for the supply of crude oil to Hengyi and selling of fuel products in Brunei market, said Xinhuanet.

Hengyi Industries is a joint venture between China's Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government's Strategic Development Capital Fund. They own 70 percent and 30 percent of the shares respectively.

Farida Talib, BSP's commercial director, said in her speech at the signing ceremony that the new commercial agreements would allow for improvements within the domestic oil and gas value chain with BSP supplying crude oil to Hengyi's oil refinery and petrochemical project at Pulau Muara Besar (PMB), a 955-hectare industrial park on an island at the Brunei Bay.

Hengyi in return will supply refined fuel products to BSM for distribution to the local market. BSM said this will meet domestic product demand, support downstream retail and industrial development in Brunei and enable significant associated economic benefits.

Chen Liancai, CEO of Hengyi Industries, also highlighted that the agreements serve another milestone for Hengyi Industries' petrochemical project.

Chen said that Hengyi will purchase part of its needed crude oil from BSP, and supply petroleum products to BSM including gasoline, diesel and jet oil. Hengyi will also work closely with BSJV (Brunei Shell Joint Ventures) companies to ensure smooth transition and supply of petroleum products to the domestic market from the current refinery to its new refinery at PMB.

As MRC informed earlier, in September Hengyi Industries produced qualified petrochemical (PC) products at its new refinery and petrochemical complex at Pulau Muara Besar in Brunei. The project includes a 160,000 barrels/d crude oil refinery, a 1 M tonnes/y aromatics facility and a 500,000 tonnes/y benzene unit.

Hengyi Petrochemicals is targeting to start up its new 1.5m tonne/year PX unit in late October.

Paraxylene is a raw material for the synthesis of terephthalic acid (TFA) - an intermediate for the production of polyethylene terephthalate (PET).

As per ICIS-MRC PRice Report, Plant of New Polymers Senege, one of the Russian producers of PET chips, shut production of polyethylene terephthalate (PET) for scheduled repairs on 1 October. According to a source in the company, the shutdown will take about a month. The exact date of the completion of the turnaround was not reported. Senege cut the spot prices to the level of Rb87,000-89,000/tonne CPT Moscow, including VAT this week. Spot prices of PET from the producer in September were at the level of Rb87,000-89,000/tonne CPT Moscow, including VAT.

Hengyi Industries is a joint venture of Zhejiang Hengyi Group (70%) and Damai Holdings, a subsidiary of the Brunei government's Strategic Development Capital Fund (30%).
MRC

MOSCOW (MRC) -- Philippine Propylene Inc. (PPI) has extended the maintenance at its polypropylene (PP) unit at Mariveles in Bataan province to October 15, reported NCT with reference to sources close to the company.

The company experienced an unplanned outage in mid-September due to a technical issue and had earlier planned to restart the plant last week.

The unit has an initial capacity of 160,000/tons/year which could be increased 225,000 tons/year, according to the company website.

Meanwhile, as MRC informed before, another Philippines producer - JG Summit - has started maintenance at its PP and polyethylene (PE) units at Batangas. The company produces 190,000 tons/year of PP and 325,000 tons/year of high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) at its facilities. The plants will be offline for two months from October to the end of November.

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.
MRC

MOSOCW (MRC) -- Poland’s pipeline operator PERN expects that its system will be completely cleared of contaminated Russian oil by July 2020, reported Reuters with reference to its Chief Executive Igor Wasilewski's statement.

Buyers including Polish state-run refiners PKN Orlen and Lotos discovered in April that supplies of Russian crude had been contaminated with organic chloride, a chemical used in oil recovery that can damage refining equipment.

PERN halted Russian oil imports via the Druzhba pipeline after the contamination was detected. Flows were partially restarted in June.

"A few weeks ago I was an optimist and I thought that removing the chlorided oil from the system would take half a year," Wasilewski told reporters.

"Now I know that PKN Orlen and Lotos are checking how their refineries behave and carefully blending the Russian oil. I think that we will finally get rid of this oil from PERN’s stores in July 2020 at the earliest."

As MRC wrote previously, in September 2019, Honeywell announced that PKN ORLEN licensed the UOP MaxEne™ process, which can increase production of ethylene and aromatics and improve the flexibility of gasoline production. The project, for the PKN ORLEN facility in Plock, Poland, currently is in the basic engineering stage. Honeywell UOP, a leading provider of technologies for the oil and gas industry, first commercialized the UOP MaxEne process in 2013. The process enables refiners and petrochemical producers to direct molecules within the naphtha feed to the processes that deliver the greatest value and improve yields of fuels and petrochemicals.

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.

PKN Orlen is a major Polish oil refiner and petrol retailer. The company is a significant European publicly traded firm with major operations in Poland, Czech Republic, Germany, and the Baltic States. It currently (2015) ranks 353, with a revenue of over USD33.8 billion.
MRC

MOSCOW (MRC) -- Arkema has successfully brought on stream a new production line for ultra-high performance polyamide 12 powders at the Mont plant in France, according to the company's press release.

The Group thus increases its global capacity by over 50% to support the increase in demand for fast-growing niche industrial applications, in particular in the coatings, personal care, composites and 3D printing markets.

This investment of some EUR20 million in specialty polyamide powders at Mont in France will contribute to the Group’s strategy to accelerate its development in advanced materials.

Arkema’s specialty polyamide 12 powders are marketed under the brand name Orgasol.

They are known for their exceptionally narrow particle size distribution and their outstanding toughness.
They are often used in high performance formulations for the coatings and personal care markets, as well as in advanced composite materials for the aerospace market.

Thanks to their stability and recyclability, they are also extensively used in the fast-growing 3D printing market.

"The Mont site has a long, proven legacy in the production of specialty powders. With this new production capacity, we continue to actively support our customers’ continued growth in cutting edge applications, notably in high performance coatings, composites and 3D printing," - said Erwoan Pezron, Global President, Technical Polymers Business Line.

As MRC reported before, in late January 2017, Arkema announced a project for the sale to INEOS of its 50% stake in Oxochimie. Arkema produced oxo alcohols on the Lavera site (France) in a 50/50 manufacturing joint venture with INEOS. These products were used in part for the production of the group’s acrylic esters in Europe. And in early March 2017, Arkema completed the sale to INEOS of its 50% stake in Oxochimie, their oxo alcohols manufacturing joint venture, and of the associated business.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

MOSCOW (MRC) - Plant of New Polymers Senege, one of the Russian producers of PET chips, shut production of polyethylene terephthalate (PET) for scheduled repairs on 1 October, according to the ICIS-MRC Price Report.

According to a source in the company, the shutdown will take about a month. The exact date of the completion of the turnaround was not reported.

Senege cut the spot prices to the level of Rb87,000-89,000/tonne CPT Moscow, including VAT this week. Spot prices of PET from the producer in September were at the level of Rb87,000-89,000/tonne CPT Moscow, including VAT.

Senege (part of the Europlast group) is one of four Russian food PET plants. The total capacity of the plant is 100,000 tonnes/year.
MRC