Hengli Petrochemical to lead global PTA additions by 2023

MOSCOW (MRC) -- Hengli Petrochemical (Dalian) Co. Ltd. is expected to lead the global planned and announced purified terephthalic acid (PTA) capacity additions during the period 2019 to 2023, contributing around 22% of the global growth by 2023, according to GlobalData,

Hengli Petrochemical (Dalian) Co. Ltd. is expected to add a capacity of 5.00 million tonnes per annum (mtpa) from two planned projects by 2023.

Dayanand Kharade, Oil and Gas Analyst at GlobalData, says: “Hengli Petrochemical Dalian PTA Plant’ and an expansion project ‘Hengli Petrochemical Dalian PTA Plant Expansion’ will account for the company’s entire capacity additions, each with a capacity of 2.50 mtpa. They are expected to start operations by 2023."

As MRC informed earlier, Hengli Petrochemical has taken off-stream its No. 1 purified terephthalic acid (PTA) plant for a turnaround. 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.

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

Gazprom Neft and ADNOC conclude a framework agreement on strategic cooperation in oil and gas

MOSCOW (MRC) -- Gazprom Neft and the Abu Dhabi National Oil Company (ADNOC) have entered into a Framework Agreement on Strategic Cooperation, said the company.

The companies will explore opportunities for implementing joint projects in the upstream and downstream sectors, as well as in information technologies, artificial intelligence, and other areas.

The document was signed by Vladislav Baryshnikov, Deputy CEO, International Business Development and a member of the Management Board, Gazprom Neft, and Abdulmunim Saif Al Kindy, Executive Director, Upstream Directorate, ADNOC.

Under this agreement the partners will study opportunities for collaboration in sour-gas exploration and production, developing enhanced oil and gas recovery strategies, and developing innovative technologies for investigating carbonate reservoirs.

The Agreement creates a platform for potential collaboration in developing production-analytical systems in hydrocarbon exploration, production, logistics, processing and sales. The parties will also assess opportunities for joint projects in geological prospecting and oil- and gas-field development, including at concessions within the Emirate of Abu Dhabi. In addition to this, further areas for potential technological cooperation include developing management systems, information technologies and artificial intelligence (AI).

As MRC reported earlier, in March 2019, Borealis and ADNOC signed Memorandum of Understanding to explore strategic opportunities in the polyolefin industry. Under the terms of the agreement, Borealis and ADNOC will jointly explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.

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.

ADNOC is one of the world’s leading diversified energy and petrochemicals groups, with a daily output of about three million barrels of oil and 10.5 billion cubic feet of natural gas. With 14 specialist subsidiary and joint venture companies, ADNOC is a primary catalyst for the UAE’s growth and diversification.

MRC

ADNOC wants Italian ENI and Austrian OMV to take stake in refinery expansion

MOSCOW (MRC) -- Abu Dhabi National Oil Company’s (ADNOC) wants to partner Italy’s Eni and Austria’s OMV for expansion of refining capacity to 1.5 million barrels per day, reported Reuters with reference to a company executive's statement.

ADNOC has a total refining capacity of 922,000 barrels per day (bpd) including a 85,000 bpd refinery near the Abu Dhabi city.

The state energy company plans to double its refining capacity and triple petrochemicals output potential by 2025, as it focuses more on downstream expansion to capture new growth markets.

As MRC wrote before, a USD3.1 billion project to introduce crude processing flexibility, at ADNOC owned Ruwais oil refinery, was announced in February 2018. Known as the Crude Flexibility Project (CFP), the announcement was another significant step forward as ADNOC accelerates delivery of its Downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, 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.
MRC

Ineos Styrolution GPPS imports to Russia rose significantly in September

MOSCOW (MRC) -- Ineos Styrolution's general purpose polystyrene (GPPS) imports into Russia increased in September by 4 times year on year to 1,500 tonnes, according to ICIS-MRC Price report.

This figure was 340 tonnes in September 2018.

Ineos Styrolution is the largest GPPS supplier to Russia.

European material accounted for 47% of the total GPPS shipments onver the stated period versus 40% in September 2018.

Styrolution's GPPS shipments to the Russian market more than doubled in the first three quarters of 2019, totalling 9,900 tonnes, compared to 4,200 tonnes a year earlier.
MRC

Sabic to invest in methanol plant in Russian Far East

MOSCOW (MRC) -- Sabic (Saudi Basic Industries Corporation) has signed a preliminary agreement with the state-controlled Russian Direct Investment Fund and Moscow-based ESN Group for a potential investment in a methanol plant in the Russian Far East, as the Middle East’s biggest petrochemicals producer looks to expand its international footprint, reported Kemicalinfo.

The agreement, part of a broad range of pacts signed during the visit of Russian President Vladimir Putin to Saudi Arabia on Monday, will explore the option to build and operate a methanol plant with a capacity of a 2 million tonnes per annum in Russia’s Amur region.

Yousef Al-Benyan, SABIC vice chairman and CEO, commented: "This is an important milestone in our global growth strategy. Russia is important to our global expansion plans, which have been formulated around competitive feedstock and our capacity to innovate and plan strategically. We plan to maintain our strategic partnership with the Russian market by continuing to focus on meeting customer needs, increasing our key customer base, and growing our commercial operation, in addition to enhancing our presence in the Russian market and maintain our leading position as a key methanol supplier."

In January, Sabic signed a preliminary agreement with South Louisiana Methanol to explore the possibility of developing a chemicals plant in the US to profit from the surging North American shale gas production.

It also increased its stake in Arrazi Methanol Company after purchasing Japan Saudi Arabia Methanol Company’s 50 per cent interest for USD150 million in December.

Investment in the downstream segment of the energy value chain has become a priority for Middle East oil producers, as they hope to earn revenues from the sale of higher value products.

As MRC wrote before, SABIC took off-stream its SABIC Olefins 4 cracker owing to technical issues on May 10, 2019. Further details on duration of the shutdown could not be ascertained. Located in beek, the Netherlands, the cracker has an ethylene production capacity of 690,000 mt/year and a propylene production capacity of 360,000 mt/year.

Besides, in the first week of September 2019, SABIC Europe, an affiliate of SABIC, started maintenance work at its cracker No.3 at Geleen site in the Netherlands. The planned maintenance is slated to last around 2 months. The company operates two steam crackers in Geleen which are capable of producing 1,250,000 tons/year of ethylene and 675,000 tons/year of propylene in total.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, 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.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC