Unexpected shutdown at Dongguan Grand PP plant in China

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) has unexpectedly shut its polypropylene (PP) No. 2 on 6 January, 2020, due to insufficient of raw materials, reported CommoPlast with reference to market sources.

Based in Dongguan, China, the new plant consists of 2 PP plants with combined production capacity of 600,000 tons/year.

Its 600,000 tons/year PDH unit has been shut since last week due to negative margin. The restart schedule could not be ascertained.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

Fire breaks out at Lukoil-owned Ukhta oil refinery

MOSCOW (MRC) -- A blaze ripped through the small-scale Ukhta oil refinery, controlled by Russian oil major Lukoil, the emergency ministry said, as per Reuters.

It said the fire hit a diesel processing unit and that one man had been injured. Lukoil declined any immediate comment.

Video footage posted on social media purported to show a huge ball of fire over the refinery. The ministry said the fire has spread through 1,000 square meters.

Interfax news agency, citing an unnamed source, said staff had been evacuated from the plant.

As MRC informed earlier, Saratovorgsintez, subsidiary of Lukoil, closed the production of acrylonitrile (ACN) in September 2019 for scheduled repairs. This production with a capacity of 190,000 tonnes of ACN per year was closed for repair within one month.

Acrylonitrile is one of the main raw materials for the production of ABS.

As per ICIS-MRC Price Report, November ABS imports were 3,300 tonnes versus 3,500 tonnes a month earlier and 4,100 tonnes in November 2018. Overall ABS imports slightly decreased year on year in the first eleven months of 2019 to 31,300 tonnes.

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
MRC

INEOS Styrolution invests in ABS world-scale plant in China

MOSCOW (MRC) -- INEOS Styrolution, the global leader in styrenics, has announced today plans to build a world-scale ABS plant in Ningbo, China, said the company.

The new production site will be adjacent to the recently acquired polystyrene plant in Ningbo.

Less than a year after announcing the acquisition of two polystyrene production sites in China, INEOS Styrolution embarks on plans to grow its production capacity in the country significantly. The company plans to construct a green field ABS plant adjacent to the Ningbo polystyrene site in the Zhejiang Province in Eastern China.

Its annual capacity is planned to be at 600,000 tonnes. Construction is planned to start in 2020, completion is expected in 2023.

The announcement made by INEOS Styrolution forms part of a wider Strategic Cooperation Framework Agreement with the Ningbo Municipal People’s Government signed today by INEOS. This framework agreement will help facilitate mutual benefit between INEOS and Ningbo City.

"China is the biggest ABS market in the world. This new investment will give us a tremendous opportunity to provide our customers in the region with locally produced ABS grades," Steve Harrington, President Asia-Pacific said.

"Asia has been identified by us as a significant growth market," adds Kevin McQuade, CEO INEOS Styrolution. “Today’s announcement shows our dedication to our Triple Shift growth strategy. As the global leader in styrenics, we are committed to supporting our Chinese customers’ growth with our new local production capacities."

As per MRC's DataScope, overall imports of acrylonitrile-butadiene-styrene (ABS) to the Russian market decreased in the first eleven months of 2019 by 4% year on year to 31,300 tonnes. This figure was at 32,700 tonnes in January-November 2018. South Korean companies LG Chem and Lotte Advanced accounted for more than half of the country's ABS imports. Styrolution and Trinseo shipped the bulk of European ABS. The share of their supplies is 23% of the total imports.

INEOS Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 85 years of experience, INEOS Styrolution helps its customers succeed by offering the best possible solution, designed to give them a competitive edge in their markets. The company provides styrenic applications for many everyday products across a broad range of industries, including Automotive, Electronics, Household, Construction, Healthcare, Packaging and Toys/ Sports/ Leisure. In 2018, sales were at 5.4 billion euros. INEOS Styrolution employs approximately 3,500 people and operates 20 production sites in ten countries.
MRC

Total Gonfreville CDU refinery could stay offline for at least six weeks

MOSCOW (MRC) -- The crude distillation unit at Total's Gonfreville refinery will likely stay offline for at least six weeks following a fire Saturday, 14 December 2019, reported S&P Global with reference to industry sources.

"For the moment the refinery is producing at reduced rates using its own stocks but since the CDU will probably have to remain offline for many months, the other units will eventually have to be stopped as well," a trade union source said, adding that, following the fire, the industrial action currently gripping French infrastructure had been suspended at Gonfreville.

According to a diesel trader, the CDU will stay offline for at least six to eight weeks. "I heard the CDU was damaged by the fire," he said.

Total declined to comment.

The company had previously reported on its website that operations at Gonfreville l'Orcher were partially suspended following the fire Saturday morning at a pump feeding crude into the distillation unit.

The refinery was restarted at the end of November after undergoing maintenance for two months, beginning in September.

As MRC informed before, in early November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

Total is also developing a USD1.4-billion propane dehydrogenation and polypropylene (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 polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

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

KBR secures first commercial license for vinyl acetate monomer technology

MOSCOW (MRC) -- KBR has recently been awarded a contract for Vinyl Acetate Monomer (VAM) technology by Shenghong Refining Petrochemical (Lian Yun Gang) Co. Ltd., China, reported Hydrocarbonprocessing.

This is the first commercial VAM technology license secured under an alliance agreement between KBR and Showa Denko K.K. (SDK) to commercialize SDK's VAM technology.

Under the terms of the contract, KBR will provide License and Basic Engineering Design for a 300 KTA VAM unit to be constructed in Lianyungang, China, as part of an integrated refinery and petrochemical complex.

The KBR-SDK VAM technology is backed by more than 40 years of know-how accumulated through the safe and stable operation of SDK's ethylene based VAM unit at the Oita Petrochemical Complex in Japan.

"We are excited that Shenghong has selected KBR-SDK's VAM technology," said Doug Kelly, President, KBR Technology Solutions. "This award consolidates KBR's position as a licensor of specialty chemicals technologies and strengthens our relationship with a key partner in Shenghong."

KBR also provided its phenol/acetone technology to Shenghong in 2019.

As MRC wrote before, in December 2019, KBR announced that it has been awarded a contract by Hainan Huasheng New Material Technology Co., Ltd. (Hainan Huasheng) to license Mitsubishi Chemical Corporation's (MCC) proprietary Bisphenol A (BPA) technology for a new plant in Dongfang City, Hainan Province, China.

VAM is the main feedstock for the production of ethylene-vinyl-acetate (EVA).

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

KBR has more than 50 years of experience in providing technologies, flexible solutions and expertise that petrochemicals operators rely on to produce ethylene, propylene, acetyls, phenolics, vinyls and other specialty products from a variety of feedstocks, safely and efficiently.
MRC