China Sinochem to start USD4.6-B Quanzhou complex in mid-2020

MOSCOW (MRC) -- China Sinochem Group is expected to start up a new crude processing unit and a petrochemical complex in southeastern China around mid-2020, marking the state firm's first foray into making petrochemicals, reported Reuters with reference to three company sources' statement.

The state-run oil and chemicals group is adding 60,000 barrels per day of crude processing capacity at an existing 240,000-bpd refinery in Quanzhou, Fujian province.

It will also begin operations around June of a petrochemical plant, including a naphtha cracker that can produce one million tonnes per year (tpy) of ethylene, the sources said.

The expansion is part of a new wave of investments in China, led by private chemical giants Hengli Petrochemical and Zhejiang Rongsheng Holdings, that have boosted output of petrochemicals such as paraxylene (PX), the key raw material for synthetic fibre and water bottles. China is the world's largest petrochemical importer.

The Quanzhou refinery additions will come on top of some 900,000 bpd of refining capacity added during 2019 in China, nearly 8% of national total refinery throughput, that swelled China's fuel glut and spurred record product exports.

The 32.5 billion yuan (USD4.64 billion) investment is a pivotal part of Sinochem's growth strategy. The state group is seeking a multi-billion-dollar stock listing for its energy department, and believes petrochemicals can add value to its dominant refining and oil trading business.

Sinochem plans to process light crude oil at the new 60,000-bpd crude distillation unit to make naphtha for the cracker. The existing refinery units process mainly heavier grades, according to the three sources, who declined to be named as they are not authorized to speak to the press.

"The company is looking to start the new refining and ethylene facilities around May/June," said one of the sources.

Wood Group, the service contractor building the facilities, said on its website last month it was conducting safety and quality checks as construction was near completion.

Sinochem did not respond to a request for comment.

Since its start-up in 2014 - the existing 240,000-bpd Quanzhou plant, Sinochem's single fully-owned refinery - has been a leading contributor of revenue and profits to the group's energy business, which for decades has been dependent on the international trading of oil and chemicals.

Sinochem is also expected to start operating towards the fourth quarter an 800,000-tpy PX unit, according to Bian Chenhui, an analyst with Chinese consultancy JLC Technology Network who closely follows China's PX expansions.

As MRC informed before, in January 2020, Sinochem Energy, a unit of China’s Sinochem Group, agreed to sell a 20% stake to five state-owned firms for 11.56 billion yuan (USD1.65 billion).

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 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.

Sinochem Group engages in energy, agriculture, chemicals, real estate, and finance service businesses in China and internationally. It is involved in the exploration and production, refining and trading, warehousing and logistics, and distribution and retailing of oil and gas. The company also produces and distributes fertilizers, such as nitrogen, phosphate, potash, and other fertilizers.
MRC

MOSCOW (MRC) - Imports of injection moulding PET chips from Lithuania by Neo Group grew by 43% in twelve months of this year and amounted to 46,000 tonnes, according to MRC DataScope report.
This figure was 32,100 tonnes in January-December 2018. December imports of PET from Lithuania to Ukraine increased more than three times in comparison with the same period last year and amounted to 3,700 tonnes compared to 2,200 tonnes, the November import volume amounted to 5,600 tonnes.

The total volume of Lithuanian PET imports to the country increased to 32% in January-December 2019 against 22% in January-December last year. The main buyers of Lithuanian bottled PET were Coca-Cola Beverages Ukraine Limited and Retal.
MRC

MOSCOW (MRC) -- BASF has expanded its low 1,4-Dioxane line by adding several new ingredients to the existing range of Flex surfactants and polymers in North America, said the company.

The BASF Flex solutions allow brands in the cosmetics, personal care, and home care industries to use ingredients that are certified low in 1,4-Dioxane for their formulations.

A recently signed New York state law prohibits the sale of household cleaning and personal care products containing more than 2ppm 1,4-Dioxane and cosmetics products containing 10ppm 1,4-Dioxane by the end of 2022; For household cleaning and personal care products the limit will be further reduced to 1ppm at the end of 2023. The state of California is also assessing 1,4-Dioxane in home and personal care products through the Safer Consumer Products program and research is estimated to be completed in three years.

"Formulating with Flex helps our partners comply with regulations ahead of the 2022 deadline," said Scott Thomson, Senior Vice President, BASF Care Chemicals, North America. “Expanding the Flex range is an important step in providing our customers with a broad portfolio of flexible formulation options. It enables them to meet both their performance criteria and the new industry requirements."

1,4-Dioxane is a synthetic chemical that forms as a by-product during the manufacturing process of certain surfactants and emulsifiers and is miscible in water. It is used primarily as a solvent and historically as a stabilizer for chlorinated solvents that go into commercial and industrial applications.

As MRC wrote earlier, BASF, the world's petrochemical major, has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. 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 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.

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) -- BASF announced a single-digit million-euro investment in the capacity expansion of water-based polyurethane dispersions at its Castellbisbal site in Spain, said the company.

The expansion will allow BASF to increase its production capacity by 30 percent. "We want to continue to provide our customers with high-quality polyurethane dispersions and help them grow by ensuring supply reliability. Considering the rising demand for polyurethane dispersions in Europe, this investment underlines our intention to assume a leading position in the business of polyurethane dispersions," says Frank Hezel, Vice President Resins & Additives EMEA at BASF.

Polyurethane dispersions constitute an important addition to the acrylate dispersions business. By expanding its portfolio in the field of adhesives, parquet flooring, automotive and industry coatings, BASF is making a valuable contribution to the change from solvent-based coating systems to environmentally friendlier and more sustainable water-based systems.

Coatings for parquet flooring and furniture — The aftermath of a fabulous party: Scratches on the parquet floor and red wine stains after parties are difficult to remove. Renovating the floor costs a great deal of money. That will soon be a thing of the past, thanks to the new Joncryl® platform for polyurethane dispersions and hybrids. BASF has deliberately expanded the product range for the furniture and flooring industry. The abrasion and scratch resistance of the products has improved significantly. In addition, there is better resistance against widely used household chemicals such as red wine, coffee and cleaning solutions. The products require much fewer film-forming agents. This improves the indoor air quality during installation — an important contribution to sustainability.

As MRC wrote earlier, BASF, the world's petrochemical major, has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. 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 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.

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) -- Indian state refiners are close to signing their first annual deals to buy Russian oil, three sources privy to the development said, as the nation moves to tap new sources to hedge against geopolitical risks, said Reuters.

India, the world’s third biggest oil consumer and importer, which ships in over 80% of its needs, usually relies on the Middle East for the majority of its supply. However, its imports from that region slid to a four-year low last year.

Its acquisitions from Russia had typically been low, as transportation costs for its crude tend to be higher than those for Middle Eastern grades, and were made through the spot market rather than under contract.

However state refiners - Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd - are now moving towards signing deals for Russian oil. The country’s top refiner IOC has already told Russia’s Rosneft that it intends to buy as much as 40,000 bpd of Russian crude, one of the sources said, some 2.5% of its total refining capacity.

"It is almost certain to sign a contract, a proposal has been sent to Rosneft,” the source said. “These are optional volumes. (IOC) will see the pricing then will decide when to draw the volumes." "IOC will take Russian oil whenever it is economical"

Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are also planning smaller deals, sources said. "We have the capabilities to process Russian oil. We are evaluating procuring Russian crude directly from the producers," said R. Ramachandran, head of refineries at BPCL.

BPCL currently buys Urals from traders. "We will be interested in Russian crudes if the price is right," he said. BPCL plans to raise its crude processing in 2020/21 by 1 million tonnes as operations at its Kochi and Bina refineries stabilize after an upgrade.

"There is some Russian crude in our basket,” HPCL Chairman M. K. Surana said. “We will consider buying Russian oil on techno-economic considerations."

Neither Rosneft nor the other Indian refiners named responded to Reuters’ emails seeking comments. Under Prime Minister Narendra Modi’s leadership since 2014, India has overhauled its crude import rules to give state refiners more flexibility to buy oil swiftly from varied regions, taking advantage of price differences between them.

The source said pricing of the crude will be linked to a ‘complex’ formula, with reference to Brent and freight among other elements.

As MRC informed earlier, state-owned Bharat Petroleum Corporation Ltd (BPCL) will invest about Rs25,000 crore to set up an ethylene cracker plant at Rasayani, 50 kilometres from its Mumbai refinery, as the firm pushes further into the petrochemicals business to fuel growth.

BPCL will commission its Rs5,236 crore Propylene Derivative Petrochemical Project (PDPP) at Kochi refinery for manufacturing niche petrochemicals in the next six months. To expand its product portfolio further, BPCL is investing Rs11,130 crore to set up a facility in Kochi refinery for manufacturing Polyols, Propylene Glycol and Mono-Ethylene Glycol.

Ethylene and propylene are feedstocks for producing 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.

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. Bharat Petroleum owns refineries at Mumbai, Maharashtra and Kochi, Kerala (Kochi Refineries) with a capacity of 12 and 9.5 million metric tonnes per year.
MRC