Hengli Petrochemical shuts No.1 PTA in Dalian for maintenance

MOSCOW (MRC) -- Hengli Petrochemical has taken off-stream its No. 1 purified terephthalic acid (PTA) plant for a turnaround, as per Apic-online.

A Polymerupdate source in China informed that the company has halted operations at the plant on October 7, 2019. The plant is likely to remain under maintenance for around two weeks.

Located in Dalian, China, the No. 1 PTA plant has a production capacity of 2.2 million mt/year.

As MRC informed before, in 2018, Hengli Petrochemical restarted operations at its no.1 PTA plant at Dalian on August 14, following a planned maintenance turnaround. The plant was taken off-stream on August 1, 2018.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.
MRC

Aruba ends contract with Citgo to operate island refinery

MOSCOW (MRC) -- Aruba reached an agreement with U.S. based Citgo Petroleum Corp. to end its contract to refurbish and operate the island’s refinery, said Reuters, citing a statement from the island’s prime minister.

The Caribbean nation plans to pursue outside candidates to take over the 209,000 barrel per day refinery, said Prime Minister Evelyn Wever-Croes. The refinery has been idled due to U.S. sanctions on Citgo’s parent Venezuelan state oil firm PDVSA.

Aruba had awarded CITGO a 25-year lease in 2016 to operate the refinery, which had been shut down and converted into a refined products terminal four years earlier by previous owner Valero. The refinery had been expected to restart in 2020.

As it was written earlier, in May 2019, Citgo restrted larger reformer at its US Corpus Christi 52,000 bbl/day refinery with capacity 225,000 benzene; 180,000 toluene tonnes/year.

Benzene is a feedstock for the production of styrene monomer (SM), which, in its turn, is a feedstock for manufacturing polystyrene (PS).

As MRC MRC's ScanPlast report, Russian plants reduced their output of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) in August 2019 by 19% year on year to 27,280 tonnes. This figure was at 33,5400 tonnes in August 2018. Russia's August GPPS and HIPS production decreased by 15% from July 2019. PS production slightly increased in the Russian market in January-August 2019. Thus, the increase was 1% year on year: 251,690 tonnes versus 248,150 tonnes a year earlier.
MRC

LyondellBasell announces construction of new small-scale molecular recycling facility

MOSCOW (MRC) -- LyondellBasell has announced that it is building a new small-scale pilot facility at its Ferrara, Italy site moving another step closer to converting post-consumer plastic waste into new plastics on a commercial scale, as per the company's press release.

The company selected its Ferrara site for the pilot facility due to its long history of research and development, including catalyst development.

Through its collaboration with the Karlsruhe Institute of Technology (KIT), LyondellBasell's proprietary molecular recycling technology, known as MoReTec, has shown that use of a catalyst in the pyrolysis process, or the structural breakdown of plastic waste into molecules, is faster and more energy efficient than traditional chemical recycling.

"We have advanced our chemical recycling capabilities over the last 15 months, and through research and testing we are studying a number of LyondellBasell proprietary catalyst options," said Jim Seward, LyondellBasell Senior Vice President of Research & Development, Technology and Sustainability. "In addition to continuing the development of our catalyst options, our investment in a small-scale pilot facility will help us to advance MoReTec technology towards commercial scale in our quest to achieving a true circular economy."

LyondellBasell's MoReTec technology has the goal to convert typically difficult to recycle plastic waste such as multi-layer films, returning them to their molecular state to be used as feedstock to produce new plastic for all applications including food contact and healthcare items. While MoReTec is based on chemical recycling, it also includes a proprietary catalyst-based approach.

LyondellBasell believes this approach has significant potential due to its lower energy use and faster chemical conversion process which uses less heat.

In the coming months, LyondellBasell will continue its construction of its pilot facility at Ferrara, while also focusing on the interaction of various waste types on the molecular recycling process, catalyst selection, and process conditions.

The development of molecular recycling is just one of the three ways LyondellBasell is advancing sustainable solutions as it relates to plastic waste. LyondellBasell is also actively involved in mechanical recycling through its Quality Circular Polymers (QCP) joint venture with SUEZ, which converts post-consumer plastic waste into new plastic pellets that are used in applications ranging from electrical appliances, washing detergent bottles and suitcases. Additionally, LyondellBasell has produced new bioplastics from 100% renewable raw materials such as cooking and vegetable oil waste, which can be used to create items such as food packaging, toys and furniture.

As MRC informed previously, LyondellBasell has just sarted up a new, fifth production line at its polypropylene compounding plant in Knapsack, Germany capable of producing 25 kt/yr. With this, capacity of the Knapsack facility is over 200 kt/yr, making the site "the world’s largest polypropylene compounding facility".

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

EQUATE Group announces commercial production of ethylene glycol at MEGlobal Oyster Creek site

MOSCOW (MRC) -- EQUATE Group has announced the official start-up of the MEGlobal Oyster Creek site’s commercial production of fibre-grade, on-spec monoethylene glycol (MEG), accoridng to Refining&Petrochemicals.

The plant has a nameplate capacity of 750,000 metric tonnes per annum (mtpa) of ethylene glycol and access to shipping routes to customers around the world.

The new plant will be operated by MEGlobal Americas Inc., a subsidiary of EQUATE Petrochemical Company and is the group’s first manufacturing facility in the United States. It will produce monoethylene and diethylene glycol, products used in a number of market applications, including polyester fibres, polyethylene terephthalate (PET) bottles and packaging, anti-freeze and coolants, paints, resins, deicing fluids, heat transfer fluids and construction materials.

From safety to schedule to cost control, the MEGlobal Oyster Creek site epitomises our commitment to operational excellence and efficiency in order to serve the growing customer need for ethylene glycol across the globe.Dr Ramesh Ramachandran, president and CEO of EQUATE, said: "The successful execution of this project demonstrates EQUATE’s ability to leverage its best-in-class practices across the globe. From safety to schedule to cost control, the MEGlobal Oyster Creek site epitomises our commitment to operational excellence and efficiency in order to serve the growing customer need for ethylene glycol across the globe."

"The new facility is the first major investment by a Kuwait-based company on the US Gulf Coast. It built on the long-standing relationship between Kuwaiti partner, Petrochemical Industries Company (PIC) in Kuwait and US partner, Dow Inc., a relationship that was forged during the liberation of Kuwait. That relationship led to the formation of the EQUATE Petrochemical Company, a joint venture between Dow and PIC (42.5% ownership each) as well as Boubyan Petrochemicals Co. (BPC) with 9% ownership, and Qurain Petrochemical Industries Co. (QPIC) with 6% ownership."

The new Oyster Creek MEGlobal plant is an expansion of the company’s ethylene glycol business in order to meet fast-growing global demand.EQUATE’s executive vice president, Naser Al-Dousari, said: "The new Oyster Creek MEGlobal plant is an expansion of the company’s ethylene glycol business in order to meet fast-growing global demand. It greatly enhances our global presence and falls under our continuous plans to maximise value as a leading ethylene glycol producer and supplier."

The MEGlobal Oyster Creek plant is leveraging the US shale gas advantage by utilising ethylene from the Dow Oyster Creek facility. The site has also licensed Dow’s METEOR technology for its processes.

The project achieved several milestones in its construction, including more than 3.5 million consecutive safe work hours. It created 55 new full-time and 25-35 contract jobs. It employed almost 2,000 construction workers during project’s peak and will contribute approximately USD24mn per year to the local economy.

As MRC informed before, MEGlobal inaugurated its 750,000-metric ton/year ethylene glycol (EG) unit at Oyster Creek, Texas on 10 Septmber, 2019. The plant was in final start-up stages and was expected to produce on-spec product within 30 days.

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.

MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG). Established in July 2004, the company is a joint venture between The Dow Chemical Company and Petrochemical Industries Company of Kuwait and is headquartered in Dubai, United Arab Emirates. With approximately 200 employees worldwide, MEGlobal serves customers around the world, and has production facilities in Fort Saskatchewan and Prentiss, Alberta, Canada.
MRC

Shortage of GPPS and HIPS remained in Russian PS market in October

MOSCOW (MRC) -- A shortage of Russian general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) has remained in the Russian market, according to ICIS-MRC Price report.

October is traditionally a season of stronger demand for polystyrene (PS) and finished products in Russia.

Large-sized buyers are generally provided with material according to their needs, whereas small-sized customers often have to reserve free quantities for delivery to be done in two weeks.

Meantime, Penoplex and Gazprom neftekhim Salavat producers did not have free PS quantities.

As reported earlier, Russian plants reduced their GPPS and HIPS output in August 2019 by 19% year on year to 27,280 tonnes. This figure was at 33,5400 tonnes in August 2018.
MRC