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

PE imports to Russia up by 18% in Jan-Sep 2019

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into Russia reached 543,000 tonnes in the first nine months of 2019, up by 18% year on year. High density polyethylene (HDPE) accounted for the greatest increase in imports, according to MRC's DataScope report.


Russian companies raised their PE imports in September, the total figure was 70,400 tonnes versus 67,800 tonnes a months earlier. Shipments of low density polyethylene (LDPE) from Europe and linear low density polyethylene (LLDPE) from the USA increased. Thus, overall PE imports to Russia totalled about 543,000 tonnes in January-September 2019, compared to 460,200 tonnes a year earlier. HDPE imports increased by almost 1.5 times, whereas imports of LLDPE and other ethylene copolymers decreased.

Overall, the structure of PE imports by grades looked the following way over the stated period.


Last month's HDPE imports dropped to 34,500 tonnes from 35,900 tonnes in August, Russian companies reduced their PE shipments from Uzbekistan. Overall HDPE shipments totalled 266,900 tonnes in the first nine months of 2019, compared to 181,600 tonnes a year earlier, with pipe grade and film grade HDPE accounting for the greatest increase in imports.

September LLDPE imports rose to 15,400 tonnes from 13,100 tonnes a month earlier, with LLDPE imports from the USA showing a significant rise. Overall LLDPE imports reached 127,100 tonnes over the stated period, down by 7% year on year.

Last month's LDPE imports grew to 12,000 tonnes from 10,700 tonnes a month earlier, with Russian companies having raised their purchasing in Europe. Overall LDPE imports reached 78,500 tonnes in January-September 2019, up by 16% year on year.

September imports of ethylene-vinyl-acetate (EVA) and other ethylene polymers were 8,500 tonnes versus 8,100 tonnes a month earlier. Overall imports of ethylene copolymers reached 70,600 tonnes in the first nine months of 2019, whereas this figure was 74,100 tonnes a year earlier.

MRC

Imports of injection moulding of PET into Russia tripled in September

MOSCOW (MRC) - Imports of injection moulded PET chips to the Russian market in September decreased by 70% compared to September 2018 and amounted to 5,000 tonnes (excluding supplies from Belarus), according to MRC DataScope.

Imports reached 8,910 tonnes in September of this year, up 44% year on year. Nevertheless, the total volume of imports of bottle grade PET grew by 10% to 111,000 tonnes in January-September of this year against 101,000 tonnes in the same period last year.

Every year, demand for injection moulding PET chips has been falling since September. Some producers shut their capacities for maintenances at this time. The price of the material also falls during this period.
Earlier it was reported that the Senege New Polymers Plant stopped the production of polyethylene terephthalate (PET) for scheduled maintenance works 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 last week.
MRC

SOCAR Energoresource sells vacuum gasoil

MOSCOW (MRC) -- SOCAR Energoresource LLC has sold to Socar Trading up to 1.865 million tonnes of vacuum gasoil through a tender, industry sources told Reuters.

The deal is for vacuum gasoil originating from the Antipinsky refinery for delivery between Oct. 1, 2019, and Sept. 30, 2020, via Baltic ports.

SOCAR Energoresource does not comment on its trading activity.

As MRC informed before, SOCAR Turkey Energy, which is a subsidiary of the State Oil Company of Azerbaijan (SOCAR), plans to lay the foundation of the Mercury petrochemical complex in Turkey in H1-2020. The plant will be located in Aliaga district, next to the Petkim petrochemical complex and the STAR refinery. With the commissioning of this plant, Turkey will settle the matter with the import of purified terephthalic acid (PTA).

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.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.
MRC