BASF advances capacity expansion at Antwerp complex

MOSCOW (MRC) -- BASF SE is moving forward with its previously announced plan to expand production capacity of ethylene oxide (EO) and EO derivatives at subsidiary BASF Antwerpen NV’s Verbund manufacturing site in Antwerp, Belgium, reported Oil&Gal Journal.

At a total investment amounting to more than EUR500 million, the expansion will add a second large EO plant at the site to increase production capacity by about 400,000 tonnes/year, as well as involve additional investments in various installations for EO derivatives, including nonionic surfactants, glycol ethers for automotive applications, and other alkoxylates, BASF said.

Phased start-up of the expansion is scheduled for 2022, according to the operator.

The expansions come as part of BASF’s plan to further strengthen its backward integration into EO to support continued growth of its customers in downstream markets.

In Europe, BASF - the largest producer of EO derivatives in the region - operates EO plants with a combined capacity of 845,000 tonnes/year in Antwerp and Ludwigshafen in Rhineland-Palatinate, Germany.

As MRC informed before, in early September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices. SIBUR held a design session on sustainable development in the petrochemical industry. At the event, BASF shared details on its new sustainability strategy and its integration into the company's overall strategy. The participants were also presented with the company's methods of environmental impact assessment and approach to the circular economy, which embraces opportunities for chemical recycling of plastics, such as the ChemCycling project. With chemical recycling, fossil resources for chemical production can be replaced with recycled material from plastic waste.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- SK Advanced has undertaken an emergency shutdown at its propane dehydrogenation (PDH) plant at Ulsan, as per Apic-online.

A Polymerupdate source in South Korea informed that the company has halted operations at the unit on November 16, 2019 owing to a technical issue. The unit is expected to be brought on-stream on November 20, 2019.

Located in Ulsan, South Korea, the plant has a propylene production capacity of 600,000 mt/year.

The company last conducted maintenance works at this unit from 20 November to mid-December 2017.

As MRC informed earlier, Advanced Petrochemical Company was running its 500,000 mt/year propane dehydrogenation unit and a polypropylene (PP) unit of 450,000 mt/year, at its Jubail complex at 40% capacity, due to the Saudi oil attack that happened on 14 September, 2019, which reduced the company's supply of feedstock.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

SK Advanced, a joint venture of South Korea's largest LPG supplier SK Gas and Advanced Petrochemical Company (APC) of Saudi Arabia.
MRC

MOSCOW (MRC) - Imports of injection moulding PET chips in Russia increased by 14% in the first ten months of the year compared with the same period a year ago and reached 106,000 tonnes, as per MRC DataScope.

The same indicator in January-October 2019 amounted to 92,700 tonnes. The share of bottle grade PET imports from China amounted to 90% compared to 86% for the same period last year.

The share of Chinese material was 92% (5,800 tonnes) in October versus 89% (4,400 tonnes) a month earlier. In October last year, the share of Chinese material in total imports amounted to 81% (5,700 tonnes).

Last month, the producer Jiangsu Sanfangxiang had the largest volume of supplies to the Russian market - 3,170 tonnes of injection moulding PET chips.

The top 5 Chinese suppliers this year are as follows: Jiangsu Sanfangxiang supplied 37,200 tonnes of injection moulding PET chips, Yisheng - 21,600 tonnes, Wankai - 13,500 tonnes, Sinopec - 13,300 tonnes, Indorama - 8,500 tonnes.

MRC

MOSCOW (MRC) -- The board of directors of Lotte Chemical, based in Seoul, agreed on a scheduled merger between two Korean-Japanese Lotte subsidiaries. Lotte Advanced Materials will merge into Lotte Chemical once the merger takes place, as per Kemicalinfo.

Following a shareholder meeting in November, the merger is anticipated to be complete by January 2020.

Lotte Chemical’s dissenting shareholders may submit veto privileges in September. The merger will be scrapped if a combined stake of more than 20 percent is represented by opposing stakeholders. The majority shareholders of Lotte Chemical include 23.24 percent of Lotte Corp., 20 percent of Lotte Property & Development and 9.3 percent of Lotte Holdings. The rest of Lotte Chemicals’ 42.59 percent is owned by minority shareholders.

The disclosure came weeks after Samsung SDI bought the remaining 10 percent stake for 279.5 billion won (USD231 million) from Lotte Chemical, which already held a 90 percent stake in Lotte Ad-vanced Materials.

Formerly a chemical material making operation of Samsung SDI, Lotte Advanced Materials got its new name after a Samsung SDI split-off and Lotte’s acquisition for 2.3 trillion in 2016. Lotte Advanced Chemicals is based in the coastal city of Yeosu, South Jeolla Province. Both Lotte Chemical and Lotte Advanced Materials have presence in plastic polymer market. Lotte Chemical produces polyethylene and polypropylene, while Lotte Advanced Materials makes acrylonitrile butadiene styrene and polycarbonate.

As MRC wrote previously, Lotte Chemical Corp commenced commerical operations at its US ethane cracker in Louisiana in May, 2019. With the commencement of the plant, the South Korean company hopes to boost its cost competitiveness by diversifying away from mainly naphtha as a feedstock to make ethylene, a key ingredient for petrochemical products. Lotte Chemical’s US ethane cracker is a joint venture with Axiall Corp, which is now merged with Westlake Corp. Lotte owns an 88 percent in the plant, while Westlake Corp holds the remainder.

South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.
MRC

MOSCOW (MRC) -- US refiner HollyFrontier Corp said it would build a biodiesel plant in New Mexico to lower costs related to blending renewable fuels and announced a USD1 billion share buyback program, as per Hydrocarbonprocessing.

Oil companies, including refiners, have to blend increasing amounts of renewable fuels with their petroleum products or purchase credits, known as Renewable Identification Numbers (RINs), to meet US biofuel requirements.

The company’s RIN costs totaled USD184 million in 2018.

HollyFrontier plans to build the plant at its Artesia refinery to process soybean oil and other feedstocks into biodiesel, with production capacity of about 125 million gallons a year.

The plant, along with rail infrastructure and storage tanks, is expected to cost USD350 million and will be funded with cash on hand.

The project, which is expected to be completed in the first quarter of 2022, will generate an internal rate of return of between 20% and 30%, the company said.

The buyback replaces all existing share repurchase authorizations, of which there was about USD281 million remaining, the company said.

HollyFrontier had on Friday said it would bring in its former Chief Executive Officer Michael Jennings to replace George Damiris, who will retire at the end of the year.

As MRC informed before, a fire at HollyFrontier Corp’s 39,330 barrel-per-day (bpd) Woods Cross, Utah, refinery was extinguished by noon MST(1900 GMT), on 13 January 2019. HollyFrontier spokesman Craig Biery said then all employees and contractors were accounted for and safe at the refinery 10 miles (16 km) north of Salt Lake City.
MRC