BASF to double production capacity for polymer dispersions in Dahej, India

MOSCOW (MRC) -- BASF India plans to double its capacity for polymer dispersions with a new production line at its site in Dahej, Gujarat, as per the company's press release.

Through the investment, BASF aims to provide a reliable supply of high-quality dispersion solutions to customers in the fast-growing Indian and South Asian markets.

"We see a growing need for our latest generation of innovations, including low-VOC and low-odor dispersions for industries, such as architectural coatings, construction, paper and adhesives. This capacity increase aims to address customers’ needs and support their development in the region," said Jeff Knight, Senior Vice President, Dispersions and Resins Asia Pacific, BASF.

"This new investment will double the production capacity by early 2021. It will be a driving force to support our customers’ growth in the rapidly growing economies in South Asia," said Narayan Krishnamohan, Managing Director, BASF India Limited and Head, BASF South Asia.

BASF began production of polymer dispersions in Dahej, Gujarat in October 2014, and currently operates one line at the plant. As the largest single investment to date for BASF in India, the site is an integrated hub for polyurethanes manufacturing and houses production facilities for Polymer Dispersions as well as Care Chemicals. BASF also produces dispersions in Mangalore, a strategic production site in the southern part of India.

Apart from South Asia, BASF will also double the production capacity in its Pasir Gudang site in Malaysia to support the rising demand for acrylics dispersions in ASEAN, Australia and New Zealand. The new line will be operational in Q2 2020.

We remind that, as MRC reported earlier, BASF, the world's petrochemical major, restarted its No. 1 steam cracker in Germany on September 30, 2019, following a maintenance turnaorund. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

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. BASF generated sales of around EUR63 billion in 2018.
MRC

MOSCOW (MRC) -- Alfa Laval, a world leader in heat transfer, centrifugal separation and fluid handling, has recently won an order to supply compact heat exchangers to a refinery and petrochemical plant in China, according to Hydrocarbonprocessing.

The order has a value of approximately SEK 100 million and is booked in the Welded Heat Exchangers unit of the Energy Division. Deliveries are scheduled for 2020.

The order comprises Alfa Laval compact heat exchangers which will be used to recover and reuse heat in the heavy fractions in the refinery, which produces both transportation fuels and feedstock for petrochemical production.

"Our compact heat exchangers are well suited for the demanding processes in refineries and the petrochemical industry. They are reliable and efficient and contribute to huge energy savings which has an impact on our customers' bottom line. Saving energy also saves a lot of CO2 emissions which is beneficial to the society," says Susanne Pahlen Aklundh, President of the Energy Division.

As MRC wrote before, in 2017, Alfa Laval won an order to supply compact heat exchangers to a refinery in China. The order has a value of approximately USD10.6 MM. It was booked late June in the Gasketed Plate Heat Exchangers unit of the Energy Division, with deliveries scheduled for 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC

MOSCOW (MRC) -- Incoming Chief Executive Bernard Looney will not take up either of BP’s seats on the board of Rosneft when he takes over in February because of the complexity of the relationship with the Russian oil giant, reported Reuters with reference to five company sources.

Under an arrangement between Looney and outgoing Chief Executive Bob Dudley, Dudley will keep one of the seats when he retires in March, the sources said.

Guillermo Quintero, a Venezuelan national who is also a former BP executive and has ties to the South American country’s national oil company PDVSA, will keep the other seat, they said.

The sources said Rosneft had been informed of the arrangement but did not say how long it was expected to last.

BP owns nearly a fifth of Rosneft, its biggest foreign investment and the source of a third of its total output.

But Looney has not worked in Russia and cannot rival 64-year-old Dudley’s long experience of working in and with the country and his deep ties with Rosneft, the Kremlin and Russian President Vladimir Putin.

"Dudley will stay on the board of Rosneft because the relationship between BP and Moscow is very complicated," a senior BP official told Reuters.

Looney’s decision not to take either of the board seats has not been previously reported. Dudley said in October he would stay on the Rosneft board after retiring in March, but did not explain why.

"With his unrivalled experience of both the international oil industry and Russia, Bob will continue to provide valuable experience on the Rosneft Board," BP said in a statement to Reuters.

Quintero’s ties to Venezuela are also important for Rosneft, as the Russian company became an important buyer of oil from the country after it was hit by sanctions by Washington.

Rosneft did not reply to a written request for comment.

Dudley is chairman of Rosneft’s strategic planning committee which focuses on long-term development and sustainability issues, according to Rosneft’s 2018 annual report.

He and Quintero regularly take part in Rosneft board discussions and vote on topics ranging from long-term strategy to dividend payments to shareholders, including BP.

It is unclear whether either will receive remuneration from BP for sitting on the Rosneft board. Neither Dudley nor Quintero hold shares in Rosneft and neither received remuneration from Rosneft last year, according to the 2018 annual report.

As MRC informed before, several companies have just announced the formation of a new consortium that aims to address the problem of plastic waste by speeding up the commercialization of BP Infinia enhanced recycling technology that was developed by London-based BP. Businesses involved in the partnership include those that manufacture, use, collect and recycle polyethylene terephthalate (PET) plastic packaging. BP Infinia is designed to turn opaque and hard-to-recycle PET plastic scrap into recyclable feedstocks that can be used to make high-quality PET packaging with no loss in quality, according to BP.

According to MRC's ScanPlast report, Russia's overall estimated PET consumption reached 42,020 tonnes in October 2019, down by 32% year on year. PET consumption in Russia increased to 593,480 tonnes in January-October 2019, up by 5% year on year.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into Ukraine decreased in the first eleven months of 2019 by 3% year on year, totalling 31,800 tonnes, according to MRC's DataScope report.

This figure was at 32,700 tonnes in January-November 2018.

Russian material accounted for 51% (16,200 tonnes) of the total shipments in the first eleven months of 2019, compared to 58% (19,000 tonnes) a year earlier. Chinese EPS shipments reached 36% (11,600 tonnes) over the stated period, compared to 28% (9,000 tonnes) in January-November 2018.

November EPS imports into Ukraine were 1,700 tonnes versus 2,900 tonnes a month earlier and 2,200 tonnes in November 2018.

The share of Russian material grew to 69% (1,200 tonnes) last month from 54% (1,500 tonnes) a month earlier. The share of Chinese shipments dropped to 14% (240 tonnes) in November from 33% (940 tonnes) in October.

MRC

MOSCOW (MRC) -- Imports of Nizhnekamskneftekhim's general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine decreased in January-November 2019 by 29% year on year to 10,900 tonnes, according to MRC's DataScope report.

This figure was at 15,400 tonnes in January-November 2018.

Nizhnekamskneftekhim's material accounted for 48% in the overall structure of imports to the Ukrainian market for the first eleven months of 2019, compared to 67% in January-November 2018.

November imports of material fell sharply from October 2019 to 500 tonnes from 1,500 tonnes. Imports were at 1,500 tonnes in November 2018.

Overall imports of this polystyrene grade into the country decreased in the fist eleven months of 2019 by 2% year on year to 22,600 tonnes from 23,100 tonnes a year earlier.

MRC