Plastik, Uzlovaya reduces November EPS prices for Russian market

MOSCOW (MRC) -- Plastik (Uzlovaya), the Russian producer of acrylonitrile-butadiene-styrene (ABS) plastics and suspension polystyrenes (PS), has reduced its November selling prices of expandable polystyrene (EPS) for the Russian market, according to ICIS-MRC Price report.

Thus, the company's prices for November shipments dropped to Rb100,500-105,000/tonne, CPT Moscow, including VAT.

At the same time, demand for material in the Russian market is currently moderate.

As reported earlier, another major Russian EPS producer - SIBUR-Khimprom - also reduced its EPS prices for this month's deliveries. Thus, the decrease was Rb2,000/tonne.

OJSC "Plastic" (Uzlovaya) specializes in the production of ABS plastics and polystyrene. The plant's complex includes the following production capacities: styrene - 60,000 tonnes/year, EPS - 11,300 tonnes/year and ABS plastics - 23,000 tonne/year. The plant's sales policy is implemented by the Trading House "Plastik".
MRC

SIBUR-Khimprom reduces November EPS prices for Russian market

MOSCOW (MRC) -- SIBUR-Khimprom has reduced its general price range of expandable polystyrene (EPS) for November shipments to Russian customers by Rb2,000/tonne, according to ICIS-MRC Price report.

Thus, prices of material were at Rb103,000-108,000/tonne CPT Moscow, including VAT, for the Russian market this month.

Meantime, the Russian producer reduced its October EPS prices by Rb1,500/tonne to Rb105,500-110,000/tonne CPT Moscow, including VAT.

At the same time, demand for material was moderate in the EPS domestic market in November.

SIBUR-Khimprom (part of SIBUR Holding) specializes in the processing of liquid hydrocarbons and is one of the leading Russian producers of a number of the most important petrochemical products. The company has three main production capacities: production of butyl alcohols and 2-ethylhexanol with a capacity of 160,000 tonnes per year, production of ethylbenzene (220,000 tonnes per year), styrene monomer (SM) production (135,000 tonnes per year) and polystyrene (PS) production (100,000 tonnes per year), ethylene and propylene unit, production of eco-friendly plasticizer DOTF (100,000 tonnes per year).
MRC

Kazakhstan bans oil product exports by car for six months

MOSCOW (MRC) -- Kazakhstan has banned the export of oil products by car for a period of six months, reported S&P Global with reference to a document on the energy ministry website.

Last month Kazakhstan's energy minister Kanat Bozumbaev warned against exports to nearby countries of cheaper gasoline and diesel and said prices in Kazakhstan could be raised to the level of Russian prices, according to media reports published on the energy ministry website.

Kazakhstan used to rely on imports of duty-free gasoline from Russia to cover domestic demand, but following the modernization of Kazakhstan's three refineries, it announced earlier this year that it could export up to 600,000 mt/year of gasoline to nearby countries in Central Asia.

Separately, Kazakhstan will reduce the share of imported jet fuel to 4% in 2019 from 60% in 2018, following refinery upgrades, according to the energy ministry's website.

The country's jet fuel output in 2019 is forecast at 694,000 mt, or more than 60% higher year on year, and could potentially rise to 850,000 mt/year.

As MRC wrote previously, in January 2016, South Korea's LG Chem said it had decided to drop a plan to jointly build a USD4.2-billion petrochemical complex in Kazakhstan, citing a prolonged slump in oil prices and a sharp increase in facility investments. In 2011, the chemical company said it would construct the complex near the western Kazakh city of Atyrau as part of a 50-50 joint venture with two Kazakh companies. The plan involved building ethylene and polyethylene (PE) plants with annual capacities of 840,000 tonnes and 800,000 tonnes, respectively. The project was announced in 2013.

Ethylene is a feedstock for producing PE.

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.
MRC

Reformer and HTU shut at Motiva refinery

MOSCOW (MRC) -- A reformer and a hydrotreating unit (HTU) shut down on Thursday at Motiva Enterprises’ 607,000 barrel-per-day (bpd) Port Arthur, Texas, refinery, the nation’s largest, reported Reuters with reference to sources familiar with plant operations.

Motiva, a wholly-owned indirect subsidiary of the Saudi Aramco, declined to comment on operations at the Port Arthur refinery.

A time line has not been set for restarting the 49,000 bpd Catalytic Reforming Unit 4 (CRU 4) and the 32,000 bpd Hydrotreating Unit 3 (HTU 3) following the unplanned shutdowns, the sources said.

Reformers convert low-octane refining byproducts into octane boosting components that are blended into gasoline.

HTU 3 uses hydrogen to remove sulfur from light gas oil in compliance with US environmental rules.

As MRC informed before, in September 2019, Motiva Enterprises signed an agreement to buy the Flint Hills Resources' cracker and chemical plant adjacent to its Port Arthur, Texas, oil refinery, kicking off a push into petrochemicals.

Besides, Motiva Enterprises LLC is evaluating opportunities to build a new polyethylene (PE) line within its proposed steam cracker and aromatics project in Jefferson County, Texas. The new PE capacity will be located at the company’s Port Arthur Refinery Complex in Jefferson County, Texas. The planned capacity of the unit was not specified, while the value of the project is reportedly estimated at around USD3.1 billion. The construction is expected to commence by the four quarter of 2020, with completion is estimated in the last quarter of 2024.

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.

Motiva Enterprises, LLC, is a fully owned affiliate of Saudi Refining Inc. and headquartered in Houston, Texas, United States with revenue of USD24 billion. Previously, it was a 50–50 joint venture between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining Inc. (controlled by Saudi Aramco).
MRC

LG Chem opens new petchemical technology center in South Korea

MOSCOW (MRC) -- LG Chem announced on Thursday it has opened a technical service and development center in Osan, Gyeonggi Province, marking the country’s largest petrochemical technology center, reported Kemicalinfo.

The company invested 110 billion won (USD94.8 million) in establishing the center, it said. The petrochemical tech center is part of LG Chem’s plan to boost its competitiveness in the sector.

The center will be used for developing technical solutions and offering other forms of support for the company’s contractors and clients.

The Pilot building of the center is equipped with production facilities, where both companies and clients can work together on the development of pilot petrochemical products, such as polyolefin, acrylonitrile butadiene styrene copolymer, super absorption polymer and solution styrene butadiene rubber.

The tech center will have more than 60 laboratories to test petrochemical products and 200 researchers, according to the company."Osan Tech Center has the geographical advantage that will provide easier access to clients flying in from other countries," said Sohn Ok-dong, president of the petrochemical business of LG Chem. "Together with the center in Huanan, China, the Osan center will serve as the hub for technical services for global petrochemical clients."

As MRC informed before, LG Chem is planning to spend USD2.4-billion to expand its naphtha cracking center (NCC) and polyolefin (PO) plant in Yeosu, South Korea. The project, which will expand the NCC and PO facility by 800,000 t/y each, is expected to be completed in the second half of 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.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC