Thai Polyethylene to take off-stream HDPE unit in Thailand

MOSCOW (MRC) -- Thai Polyethylene Co, a subsidiary of Siam Cement Group, is in plans to shut its high density polyethylene (HDPE) unit owing to economic fundamentals, reported Apic-online.

A Polymerupdate source in Thailand informed that the unit will be taken off-stream on November 21, 2019. It is expected to remain off-stream for around 20-30 days.

Located in Map Ta Phut, Thailand, the unit has a production capacity of 220,000 mt/year.

As MRC wrote before, on June 28, 2017, Thai Polyethylene took off-stream its No. 4 HDPE plant in Thailand for 15 days owing to tehcnical issues. Located at Map Tha Phut in Thailand, the unit has a production capacity of 400,000 mt/year.

According to MRC's ScanPlast report, Russia's September estimated HDPE consumption fell to 70,570 tonnes from 108,320 tonnes a month earlier. Russian producers reduced their output due to maintenance works, whereas imports were high partially because of an increase in US shipments. The estimated HDPE consumption totalled 862,170 tonnes in January-September 2019, up by 7% year on year. HDPE imports increased by 47%, whereas production dropped by 5% due to a long period of maintenance works at three production capacities.

SCG Chemicals is a subsidiary of SCG and is one of SCG’s 3 core businesses consisting of Chemicals, Paper and Cement-Building Materials. SCG embarked upon the chemicals business in 1989. At present, SCG Chemicals manufactures and supplies a full range of petrochemical products ranging from upstream petrochemicals such as Olefins, intermediate petrochemicals such as Styrene Monomer, PTA, and MMA, to downstream petrochemicals such as Polyethylene, Polypropylene, Polyvinyl Chloride, and Polystyrene resins. SCG Chemicals is now one of the largest integrated petrochemical companies in Thailand and a key industry leader in the Asia-Pacific region.
MRC

Daelim Industrial wins 535 bln-won plant order

MOSCOW (MRC) -- Daelim Industrial Co., a major construction firm in South Korea, said Wednesday it has won a 535.4 billion won (USD462 million) order to build a petrochemical plant in South Korea, reported Yonhap News Agency.

Under the deal with Hyundai Chemical Co., Daelim Industrial will build the heavy-feed petrochemical complex in Daesan, some 120 kilometers south of Seoul. The builder aims to complete the project by June 2021.

The plant will be able to produce 250,000 tons of polypropylene (PP) as well as 600,000 tons of polyethylene (PE) a year, according to the company.

Daelim Industrial is the No.-3 builder in South Korea in terms of building capacity, according to recent government data.

As MRC informed before, in May 2019, Hyundai Chemical Co. selected Univation Technologies' Unipol PE technology for a new high-density polyethylene (HDPE) facility to be built in South Korea. The 300,000-t/y high density polyethylene (HDPE) plant, which will be located at Hyundai's site in Daesan, will utilize Univation's broad range of HDPE product technology portfolio, including the Acclaim K-100 Catalyst series for advanced HDPE products. An expected completion date for the project was not given.

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.

Hyundai Chemical is a joint venture between South Korea's Hyundai Oilbank Co. and Lotte Chemical Corp.
MRC

U.S. crude stocks jump sharply as refiners cut activity

MOSCOW (MRC) -- U.S. crude stocks rose last week as refineries cut output sharply, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said, said Hydrocarbonprocessing.

Crude inventories rose by 7.9 million barrels in the week to Nov. 1, compared with analysts’ expectations for an increase of 1.5 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.7 million barrels, EIA said.

Refinery crude runs fell by 237,000 barrels per day, EIA data showed. Refinery utilization rates fell by 1.7 percentage points.

Gasoline stocks fell by 2.8 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.8 million-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell by 622,000 barrels, versus expectations for a 949,000-barrel drop, the EIA data showed.

Net U.S. crude imports rose last week by 336,000 barrels per day.

As MRC informed earlier, in mid October U.S. crude stocks rose last week as refineries cut output to the lowest level in nearly two years and production edged higher to a record of 12.6 million barrels per day (bpd).
MRC

Total evaluating new gas cracker project in South Korea as part of petchems growth strategy

MOSCOW (MRC) -- Total has disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical, reported Chemweek.

The company in its strategy and outlook presentations in New York on 24 September, said that petrochemicals are a major feature in the company’s future investments. Speaking about the segment, Bernard Pinatel, president/refining and chemicals at Total, said that the company is focusing on growing petrochemicals, not refining. The petchems market, he said, is growing at 3%/year, driven by demographics, growing world population, the emergence of the middle class and megatrends around lightweight materials. "All of this drives the growth in plastics and polymers."

Pinatel says that there are three main principles the company adheres to when considering expansion: access to low-cost gas feedstock, including ethane, propane, and butane; balance between monomers and polymers in any given project; and investing in low-carbon solutions by leveraging biofuels, biopolymers, and embracing the circular economy. "Today, the petchems market is in a short-term imbalance because of new capacities coming onstream on the US Gulf Coast and in Asia…We have the first wave in the US investments coming onstream in the 2017–20 period, so the bulk of it is almost beyond us. But this weighs heavily on the supply and at the same time on the demand. We see a slowdown most notably linked to the trade war between China and the US, so short term, this market is suffering from some kind of imbalance," he said.

For Total, this is not so much of a concern because most of its projects are due to start up post-2020. Total operates six global petrochemical platforms and the new investments will rely on low-cost feedstock, competitive capex by leveraging the company’s platforms, and by balancing capacities between monomers and polymers.

The company is developing four major petchems projects: in the US, South Korea, Algeria, and Saudi Arabia. At Daesan, South Korea, the JV is investing USD1.3 billion to add 400,000 metric tons/year - a 40% increase - to its steam cracker capacity, using propane feedstock shipped from the US, which will give the company an extra 400,000 metric tons/year each of polyethylene (PE) and polypropylene (PP) capacity by 2021. The Daesan operation has been a tremendous success, delivering cashflow of USD1 billion in 2018. "We are so happy with Daesan that we are evaluating new opportunities there, notably a new gas cracker, which will benefit from the platform’s synergies." The downstream product slate is still being developed.

Total is also happy with its operations in Saudi Arabia, where it is a partner with Saudi Aramco in Satorp (Jubail). Satorp, a 62.5/37.5 JV between Aramco and Total, currently includes a refinery and an aromatics complex, which started up in 2014. It has on average provided USD1 billion/year in cashflow since 2015. The 4,000 b/d refinery was debottlenecked by 10% in 2018 and the JV plans to increase the capacity to 4,800 b/d by 2024. "We now plan to further integrate with petrochemicals." Aramco and Total have announced plans to invest USD5.5 billion in a new petchems complex at the site, which will include a 1.5-million metric tons/year (MMt/y) steam cracker and a 1 MMt/y PE plant. The project is currently in the front-end engineering and design (FEED) phase and the final investment decision (FID) is due in 2021. Completion is targeted for 2024. This is a very attractive project and has already attracted downstream investors. Ineos will invest USD2 billion in specialty chemicals and Daelim is also a partner.

Referring to the US, Pinatel said that Total has very good assets there and a profitable base providing USD1 billion of cashflow last year. A JV in which Total has 50% and Nova and Borealis 50% is developing a 1 MMt/y ethane cracker. The project is 70% complete and will start up in 2021, post the first wave. "We are also investing in a new PE line by 2021, fully integrated with the cracker. Total brings integration and synergies with our platform, Borealis its Borstar technology and Nova its market presence. We are well on track to start up in 2021."

Total is also developing a USD1.4-billion propane dehydrogenation and PP complex at Arzew, Algeria, in partnership with Algeria’s state-owned oil company Sonatrach. The facilities will be designed to produce 600,000 metric tons/year each of propylene and PP. The project is in FEED phase with FID due in 2021.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 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.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Hexion to add phenolic resin capacity at Brimbank facility

MOSCOW (MRC)--US thermoset resins producer Hexion will expand its plant at Brimbank near Melbourne, Australia by adding phenolic resin capacity, as part of its strategy to expand its adhesives and binders business, said the company.

The addition at the facility is expected to meet the increasing demand for phenolic resins for several applications, including fire-resistant cladding material for commercial, residential and institutional properties.

Construction of a new reactor and associated infrastructure is to begin early next year, with startup of production expected in Q1 2021, Hexion said in a statement this week. Financial or capacity details were not disclosed.

The new capacity will help Hexion meet growing regional demand for phenolic resins in a range of commercial, institutional and residential applications.

“As the main phenolic resin producer in Australia, we remain committed to growing with our regional customers and delivering innovative solutions,” said Rob Schmidt, Hexion vice president and managing director, Asia Pacific.

Adhesives and phenolic resins are used as binders in construction applications, especially where there is a need for high heat performance and long-term durability. Phenolic adhesives are used for load-bearing engineered wood members such as structural plywood and laminated veneer lumber to provide thermal stability at high temperatures.

As MRC informed earlier, Hexion plans to resume production of BPA in Pernis (Pernis, Netherlands) in the third week of November after a scheduled repair. This production with a capacity of 120 thousand tons of BPA per year was closed in the last week of October.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to ICIS-MRC Price report, Russia's estimated consumption of polycarbonate (PC) rose in in the first three quarters of 2019 by 11% year on year to 61,000 tonnes (54,800 tonnes a year earlier). Consumption in the injection moulding sector grew in the first nine months of 2019 by 10% year on year to 7,900 tonnes from 7,200 tonnes a year earlier.
MRC