Air Liquide Q3 revenue rises by 3.5%

MOSCOW (MRC) -- The French industrial gas giant said group revenue totalled EUR5.5bn, up 3.5% on a comparable basis and in spite of a softening economic environment, Gas & Services posted robust comparable sales growth up 3.5%, said Gasworld.

In Engineering & Construction, sales to third-party customers were stable compared with the second quarter, with resources mainly attributed to internal Large Industries and Electronics projects.

Within its Large Industries business, Air Liquide highlighted the signature of three long-term contracts in Q3, in the US Gulf Coast with Methanex, in Canada with Shell Chemicals and in the Philippines with Pilipinas Shell.

Global Markets & Technologies continued its strong development with growth of 29.7%.

Commenting on the Q3 results, Benoit Potier, Chairman and CEO of Air Liquide, said, “Growth was driven by all Gas & Services activities, which represent 96% of the Group’s sales, as well as our Global Markets & Technologies business. Positive currency and significant scope impacts offset lower energy prices."

As MRC informed earlier, Air Liquide signs new long term contract with Kazakhstan Petrochemical Industries (KPI) to build, own and operate a new nitrogen unit in the growing chemical basin of Karabatan, close to the Atyrau refinery.

As MRC informed earlier, Air Liquide in 2018 signed a new long-term agreement with LyondellBasell, one of the world’s largest plastics, chemicals and refining companies, to supply oxygen to LyondellBasell’s new large-scale petrochemical plant which will be constructed in Channelview, Texas. LyondellBasell’s new propylene oxide/tertiary butyl alcohol plant (PO/TBA), is expected to be the largest of its kind plant in the world when completed.

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

Negri Bossi up for sale

MOSCOW (MRC) --Italian plastics machinery maker Negri Bossi SpA is for sale, said Plasticsnews.

A European machinery executive who has knowledge of the deal confirmed the information with Plastics News Oct. 20, the fifth day of the K trade show.

"They did the due diligence, so there is somebody that is interested to buy the company," the source said.

The source could not disclose who the potential buyer is but said eight buyers were narrowed down to four, following due diligence. The source said the deal is probably "very close" to closing but could not say when it would be finalized.

Milan-based Negri Bossi has changed hands before.

In 2014, Italian plastics equipment major Sacmi Group sold Negri Bossi to Kingsbury Corp., a machinery firm based in Rush, N.Y. AuSable Capital Partners LLC of Santa Monica, Calif., also bought a stake in the company.

Negri Bossi makes injection molding machines up to 7,000 metric tons. It also supplies the Sytrama-brand of part removal robots.

As MRC infomed earlier, the Italian injection molding machine manufacturer has invested EUR 2 million to update its plant in Cologno, Italy, awaiting market recovery. In the mean time, production has begun in India at one of the group plants.
MRC

Eastman begins commercial operations of new chem recycling tech


MOSCOW (MRC)--Eastman has begun commercial operations of an innovative chemical recycling technology – called "carbon renewal technology" (CRT) - at its chemicals production hub in Kingsport, Tennessee, said the company.

With CRT, waste plastic feedstocks are broken down to the molecular level and then used as building blocks, which are indistinguishable from virgin material, to produce products used in Eastman markets - including textiles, cosmetics and personal care, and ophthalmics markets, the company said.

To enable CRT, Eastman modified the front end of its acetyls and cellulosics production processes at Kingsport to accept waste plastic. Eastman’s recycled materials will be certified under the International Sustainability & Carbon Certification (ISCC).

Costa added that Eastman will work across the value chain – with customers, potential feedstock suppliers, product manufacturers, brands, non-governmental organisations and others – to implement large-scale circular solutions for recycling waste plastics.

CRT is one of Eastman’s chemical recycling projects. The company is also working on an “advanced circular recycling technology”, which will use methanol to break down waste polyethylene terephthalate (PET) into monoethylene glycol (MEG) and dimethyl terephthalate (DMT).

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.

Eastman is a global advanced materials and specialty additives company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries and had 2018 revenues of approximately USD10 billion.
MRC

Cost of giant Saudi Aramco refinery project to rise

MOSCOW (MRC) -- India’s planned giant refinery and petrochemical project, which is being built with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), will cost more than the originally planned USD45 billion, reported Reuters with reference to India’s oil minister.

The 1.2 million barrels-per-day (bpd) giant coastal project is part of India’s plans to raise its refining capacity by 77% to 8.8 million bpd by 2030. It is being built at Roha, around 100 km (62 miles) south of Mumbai.

"The primary plan was around USD45 billion, it will be more than that," Dharmendra Pradhan told reporters at the World Energy Congress in Abu Dhabi, declining to say by how much.

Sources told Reuters last month that India had increased the cost estimate of the project by more than 36% after protests by farmers forced its relocation.

The project is expected to cost $60 billion, sources told Reuters at the time, but is still expected to be commissioned in 2025.

Pradhan confirmed the commissioning date and said other issues are progressing, without elaborating.

Global oil producers are vying to gain entry into India to establish a stable outlet for their output and to earn profit from the South Asian nation’s strong gasoline and petrochemical demand prospects due to the rising disposable income of its 1.3 billion population.

As MRC wrote before, in eary October, 2019, Saudi Aramco announced that it would supply agreed grades and volumes to India’s Reliance Industries in October after the world’s top oil exporter had to provide alternate heavier grader due to drone attacks on its oil installations.

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 Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

Phillips 66 third-quarter earnings fall 49%

MOSCOW (MRC) -- Phillips 66 announces third-quarter 2019 earnings of USD712 million, compared with USD1.4 billion in the second quarter of 2019. Excluding special items of USD690 million in the third quarter, primarily impairments related to the company's investment in DCP Midstream, LLC, adjusted earnings were USD1.4 billion, compared with second-quarter adjusted earnings of USD1.4 billion, said the company.

In its chemicals segment, which reflects Phillips 66’s equity investment in Chevron Phillips Chemical (CPChem), Q3 pre-tax income fell to USD227m from USD275m in Q2 due to a USD42m reduction to equity earnings from a lower-of-cost-or-market inventory adjustment.

CPChem’s olefins and polyolefins (O&P) business contributed USD251m of adjusted pre-tax income in Q3, compared with USD260m in Q2. The USD9m decrease mainly reflects lower margins, partially offset by higher sales volumes. Global O&P utilisation was 97% in Q3.

CPChem’s specialties, aromatics and styrenics (SA&S) business contributed Q3 adjusted pre-tax income of $36m, in line with Q2. In Q3 2018, total chemical segment earnings were USD263m. The company did not comment on the year-on-year decline.

Phillips 66 noted that in chemicals, CPChem and Qatar Petroleum are jointly pursuing a petrochemical project on the US Gulf Coast – the "US Gulf Coast II Petrochemical Project" – which is expected to include a 2m tonne/year ethylene cracker and two high-density polyethylene (HDPE) units, each with capacity of 1m tonnes/year. A final investment decision is expected no later than 2021, with targeted startup in 2024.

CPChem and Qatar Petroleum are also pursuing the development of a petrochemicals project in Qatar with a 1.9m tonne/year ethylene cracker and two high-density polyethylene derivative units with a combined capacity of 1.7m tonne/year. Pending final investment decision, the Qatar project is expected to startup in late 2025, Phillips 66 said.

As MRC informed earlier, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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