ADNOC inks deal with Rongshen Petrochemical

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (Adnoc) has announced the signing of a broad framework agreement with China’s Rongsheng Petrochemical to explore opportunities for mutual cooperation, said English.mubasher.

Under the agreement, the two companies will consider investments in the sale of refined products from Adnoc to Rongsheng, along with downstream investment opportunities in both China and the UAE, and the supply and delivery of liquified natural gas to Rongsheng, according to a company statement released.

"This framework agreement builds on the existing crude oil supply relationship between Adnoc and Rongsheng, which we are keen to enhance. The agreement covers domestic and international growth opportunities across a range of sectors," Adnoc’s group CEO Sultan Al Jaber.

The agreement will see Adnoc’s active participation as Rongsheng’s strategic partner in refinery and petrochemical opportunities, including investment in Rongsheng’s downstream complex.

"This Framework Agreement is a key milestone in Rongsheng Petrochemical’s strategic international expansion. ADNOC is an important trading partner, and we are confident of the win-win benefits of this partnership, particularly in realising opportunities in the downstream space in Asia," Rongsheng’s chairman Li Shuirong commented.

ADNOC plans to invest USD45 billion with partners to expand its refining and petrochemical production in Ruwais. The company pumps most of the UAE's oil production of around 3 million b/d. It plans to boost its oil production capacity to 4 million b/d by 2020 and 5 million b/d by 2030.

As MRC informed in the late October, The Abu Dhabi National Oil Company (ADNOC), Adani Group (Adani), BASF SE (BASF) and Borealis AG (Borealis) have signed a Memorandum of Understanding (MoU) to engage in a joint feasibility study to further evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India. The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstar technology.

According to MRC's ScanPlast report, 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.

ADNOC is now accelerating this transformation by unveiling its plans to become a leading global downstream player. The new strategy will be supported by ADNOC’s 45 year plus legacy of a unique and open approach to partnerships, built on the UAE’s bedrock values, reliability and attractiveness. ADNOC will again look to create long term downstream partnerships, providing access to the most attractive parts of the energy value chain, to redefine ADNOC’s future growth.
MRC

Vietnam proposes to lift import duties on PP

MOSCOW (MRC) -- It is reported that the Vietnamese Finance Ministry has received several petitions from local companies to adjust the import duties imposed on propane and polypropylene (PP). The Ministry thereafter proposed its plans for the import duties on the mentioned products, as per CommoPlast.

For propane, with HS code 2711.12.00, the petition called for a reduction from the current 2% to 0%. However, the Ministry informed that the existing local supply can fulfill up to 45% of the domestic demand and that the duties have been adjusted from 5% to 2% on 1 January 2018, therefore, no changes would be made for the time being.

Meanwhile, by 2020, Vietnam would have three PP producers with a total output of approximately 850,000 tons per annum, meeting about 71% of domestic consumption. To encourage local companies to use locally produced cargoes and reduce the dependency on import materials, the Ministry proposed to increase the import duties from 3% currently to 5% in 2020.

However, the Ministry has yet to issue any official circular while continue collecting feedback from the industry.

As MRC informed earlier, Binh Son Refining and Petrochemical took a PP plant in Vietnam off-stream for a maintenance turnaround in June 2017 for a period of around 7 weeks. The exact date shutdown could not be ascertained. Located in Vietnam,the plant has a production capacity of 150,000 mt/year.

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
MRC

Indian Oil looks to import Russian oil

MOSCOW (MRC) -- Indian Oil Corp, the country’s top refiner, is considering importing Russian oil, its chairman Sanjiv Singh said, as the company aims to diversify its oil import sources, reported Reuters.

India, the world’s third-biggest oil importer and consumer, ships in about 60% of its overall crude needs from the middle eastern countries. The nation is gradually tapping new sources to hedge itself against geopolitical risks.

Indian state refiners - IOC, Hindustan Petroleum Corp Ltd , Bharat Petroleum Corp Ltd and Mangalore Refinery and Petrochemicals Ltd - hardly buy Russian oil as high transportation costs make the crude costly compared to the grades in Middle East.

"We are exploring all options, we are discussing," Singh said, when asked if his company would sign a term contract with Russian companies.

As MRC wrote previously, Indian Oil Corp conducted turnaround at its naphtha cracker in India from early September 2019 to early October 2019. Located in Panipat, in the northern Indian state of Haryana, the cracker has an ethylene production capacity of 857,000 mt/year and propylene capacity of 425,000 mt/year.

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.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

Clariant Catalysts opens new office in Jakarta

MOSCOW (MRC) -- Clariant’s Catalysts business unit has opened a new office in Jakarta. This third location for Engineering Services in Asia-Pacific (APAC) brings the global total to 16 offices, said the company.

The expansion is aimed at enhancing regional support, particularly in the southern APAC countries, with a focus on catalysts for ethylene and styrene and syngas applications, as well as distillate upgrading, hydrogenation, and oxidation.

Inaugurated in September, the new office is based at Clariant’s site in Tangerang, near Jakarta, Indonesia. The catalyst specialists appointed for the office will work closely with regional colleagues. Clariant already operates a joint-venture catalyst production facility near Jakarta, in Cikampek.

Stefan Heuser, Senior Vice President & General Manager Business Unit Catalysts at Clariant, commented on the development, stating, "APAC is a vast region with a wide distribution of customers having diverse requirements and applications. The investment brings value to our customers’ businesses, as it allows us to work more closely on their challenges, and respond more quickly with optimal solutions."

The new office is based at Clariant’s site in Tangerang, near the capital city of Jakarta. Clariant operates a joint-venture catalyst production facility near Jakarta, in Cikampek.

As MRC informed earlier, Clariant announced that it has been awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The Dongguan plant will be one of the largest single-train dehydrogenation units in the world. Clariant's technology partner CB&I will base the plant's design on its Catofin® catalytic dehydrogenation technology, which uses Clariant's tailor-made Catofin catalyst and Heat Generating Material (HGM).

Propylene is the main feedstock for producing polyprolypele (PP).

According to MRC's ScanPlast report, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

Neste and Ravago start collaboration to enable chemical recycling of over 200,000 tonnes of plastic waste

MOSCOW (MRC) -- Neste, the world’s leading provider of renewable diesel, renewable jet fuel, and an expert in delivered drop-in renewable chemical solutions, and Ravago, the world’s leading distributor and recycler of polymers, are joining forces to develop chemical recycling of plastic waste with the aim to reach significant industrial scale, said Britishplastics.

Neste and Ravango have set a joint target to reach an annual capacity to process over 200,000 tonnes of waste plastic.

Through collaborating in chemical recycling, Neste and Ravago are aiming to accelerate circularity of materials and improve resource efficiency in the petrochemical industry.

The two companies also want to provide more sustainable alternatives to primary fossil feedstock.

As MRC informed earlier, Neste is committed to lowering its carbon footprint in production ahead of the EU’s climate and energy targets. One concrete example of Neste’s climate work is its new long-term agreement on wind power with a leading clean-energy company Fortum.

As MRC informed earlier, Neste Oyj and Borealis Polymers Oy, in co-operation with the energy companies Fortum Power and Heat Oy, Helen Oy, Vantaan Energia Oy and Porvoon Energia Oy - Borga Energi Ab, will conduct a preliminary study on recovering and utilizing excess heat generated at the Neste and Borealis industrial manufacturing facilities in Kilpilahti.

As MRC wrote before, in March 2018, Borealis and United Chemical Company LLP (UCC) signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan.

In October 2019, Borealis AG lifted a force majeure declared early last month at its production site in Kallo, the company has confirmed to PNE. On 2 Sep, the company declared force majeure on refinery grade propylene and propane from its production site in Kallo, Belgium, as a consequence of “unforeseen technical issues."

Borealis produces polypropylene at the Burghausen site.

According to MRC's ScanPlast report, 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.

Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. The company's wide range of renewable products enable our customers to reduce climate emissions. The company is the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. It is also a technologically advanced refiner of high-quality oil products.
MRC