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

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

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

MOSCOW (MRC) -- ExxonMobil France said that its Fos refinery was experiencing some problems shipping products because of picketing by striking union workers, but its Port Jerome-Gravenchon refinery was operating normally, reported Reuters.

A spokeswoman said the 140,0000 barrels-per-day Fos-sur-Mer plant, near Marseille had been able to ship output overnight.

At the 240,000 bpd Port Jerome refinery near Le Havre, a limited number of staff had joined the national protest against pension reforms on Tuesday afternoon, but on Wednesday morning the facility was operating and shipping its output, she added.

Separately, the Environment Ministry said in a statement that production at France’s oil refineries was continuing and that supply to petrol stations was at a normal level.

As MRC informed before, ExxonMobil's cracker at Notre Dame de Gravenchon, France, had an "unexpected stoppage" on Friday, 6 December, following a technical failure this October. Thus, an electric fire Saturday morning, 19 October, 2019, on the ExxonMobil facilities in Notre-Dame-de-Gravenchon (Seine Maritime) resulted in a plume of smoke, below the regulatory thresholds, which could remain visible for several days.

Besides, ExxonMobil halted polyethylene (PE) production at its site in Notre Dame de Gravenchon, France, last week due to commercial reasons, without providing further details. The site houses 500,000 tons/year of linear low density polyethylene (LLDPE) plant, including metallocene linear low density polyethylene (MLLDPE). This plant resumed operations on 19 December 2019.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- LG Chem, a South Korean petrochemical major, has reduced its operational rates of its cracker to around 90-95% starting January 2020 due to weaker economic fundamentals, reported CommoPlast with reference to market sources.

Based in Daesan, South Korea, the cracker is able to produce 1.27 million tons/year of ethylene and 650,000 tons/year of propylene.

As MRC wrote previously, the company shut its Daesan cracker for an unplannes outage owing to a technical issues from 8 to 18 June, 2019.

We also remind that 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.

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