Mubadala has no plans to sell Nova Chemicals

MOSCOW (MRC) -- Mubadala has no plans for now to sell Canadian plastics maker Nova Chemicals, according to its CEO for Petroleum and Petrochemicals Musabbeh Al-Kaabi, reported Bloomberg.

He spoke exclusively to Bloomberg's Manus Cranny at the Atlantic Council Global Energy Forum in Abu Dhabi.

As MRC informed earlier, Borealis AG and NOVA Chemicals Corporation has recently announced they have reached an agreement for Borealis to buy NOVA Chemicals’ 50% ownership interest in Novealis Holdings LLC (Novealis). Formed in 2018, Novealis is the joint venture between affiliates of Borealis and NOVA Chemicals, which subsequently formed a 50/50 joint venture with an affiliate of Total S.A. to launch Bayport Polymers LLC (Baystar) in Houston, Texas, US.

Closing of the acquisition is subject to customary regulatory approvals and other conditions but is not subject to any financing condition. The parties expect the transaction to close in the first half of 2020.

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.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.
MRC

Clariant announces cellulosic ethanol technology agreement

MOSCOW (MRC) -- Clariant, a focused and innovative specialty chemical company, and Anhui Guozhen Group, a Chinese green energy company, and Chemtex Chemical Engineering, a multinational engineering company, signed a license agreement on sunliquid® cellulosic ethanol technology, said Hydrocarbonprocessing.

The Anhui Guozhen Group and Chemtex have agreed to form a joint venture with the aim of realizing a full scale commercial plant for the production of cellulosic ethanol from agricultural residues. In this framework, Clariant has granted a license for its sunliquid® cellulosic ethanol technology to the joint venture.

The project development and plant operation will be executed by the joint venture at a greenfield site in Fuyang city in the Anhui province, in the Yangtze-Huai River region in East China, utilizing available land, owned by the Anhui Guozhen Group, and existing infrastructure network in the surrounding. The annual plant production capacity is planned to be 50.000 tons of cellulosic ethanol, with an option to double the capacity in a second phase (50.000 tons in each phase), making it one of the largest in China so far. Detailed project evaluations and preparations for the engineering phase are well underway. The project execution is pending a final agreement of certain government contracts for the project.

"For Clariant, China represents a core growth market where we want to further strengthen our position. The country is aiming to achieve a 10% bioethanol content in transportation fuels nationwide in the next few years. These regulatory commitments offer substantial growth potential for our sunliquid® technology by spurring demand for advanced biofuels.”, said Hans Bohnen, Clariant’s Chief Operating Officer. “Hence, the signing of a sunliquid® technology license with two renowned Chinese players is an important strategic milestone to seize those promising business opportunities."

"Guozhen intends to be a pioneer and invest in the first commercial cellulosic ethanol plant in China. We are looking forward to work with Clariant and Chemtex, two well experienced companies to contribute to China’s environmental and ecological advance.", emphasized Li Wei, Founder and Chairman of the Board of Guozhen Group.

"As a global industrial solution provider in biofuels, chemicals, polymers, fibers and gas processing, Chemtex has extensive experience in partnering with reputed technology licensors particularly in the Chinese market. Through these partnerships Chemtex gained significant knowledge worldwide in first generation and cellulosic ethanol projects. In China, we have been active for more than 40 years and realized over 100 plants. This experience will make a major contribution to the collaboration between Anhui Guozhen, Clariant and Chemtex for the first Chinese commercial cellulosic ethanol project to succeed.", adds Sean Ma, Chairman and CEO of Chemtex.

For the Anhui region this signifies a noteworthy investment in green, sustainable technologies. The area is very much characterized by agriculture, which guarantees the abundance of feedstock for the cellulosic ethanol plant. By locally sourced feedstock, in that case wheat straw and corn stover, greenhouse gas savings can be maximized and additional business opportunities along the entire value and supply chain will arise.

The produced cellulosic ethanol will be utilized in the Chinese regional fuels market as blend into gasoline to fulfill the national blending mandate. Cellulosic ethanol produced with sunliquid® saves around 95% of greenhouse gases compared to gasoline.

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 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.

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

Locked-out workers block entrances to Canadas Co-op Refinery

MOSCOW (MRC) -- Locked-out workers at the Co-op Refinery in Regina, Saskatchewan blockaded the facility, halting the movement of workers and trucks, the union and owner said, said Hydrocarbonprocessing.

Federated Cooperatives Ltd (FCL), which owns and operates the refinery, locked out 800 workers on Dec. 5 in a dispute over pensions, but has kept western Canada’s third-largest oil refinery operating with replacement workers and managers.

Unifor, which represents the workers, said that hundreds of union activists had surrounded the refinery, effectively shutting it down.

The lockout comes as western Canadian oil producers in Saskatchewan and Alberta struggle to move crude to U.S. refiners, their main market, due to congested pipelines.

FCL confirmed that blockades at the refinery’s entrances prevented people or trucks from passing in or out and said they violated a court injunction.

Brad DeLorey, a spokesman for FCL, said the actions were causing delays but the refinery remained fully operational.

The Co-op Refinery, which can process 135,000 barrels of oil per day, makes gasoline, propane and asphalt, among other products.

As MRC informed earlier, Russian oil major Rosneft said its oil refineries in the Samara region are increasing their level of environmental monitoring. Kazakhstan on Tuesday reduced oil supplies via the Atasu-Alashankou pipeline to China after tests carried out at the end of the last week showed a high content of organic chloride. Some oil transit from Kazakhstan to Russia goes via a pipeline which has a connection with the Russian pipeline system in the Samara region.

As MRC informed earlier, Rosneft said that its German subsidiary Rosneft Deutschland GmbH had completed the deal to acquire a 3.57% stake in Germany’s Bayernoil Raffineriegesellschaft mbH from BP.

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.
MRC

Lyondell Houston refinery restarts large crude unit

MOSCOW (MRC) -- Lyondell Basell Industries, one of the largest plastics, chemicals and refining companies in the world, restarted the large crude distillation unit (CDU) at its 263,776 barrel-per-day (bpd) Houston refinery on Thursday night, reported Reuters with reference to sources familiar with plant operations.

The 147,000 bpd Unit 537 CDU was shut on Jan. 15 because of clogging of the desalter section of the unit, the sources said.

As MRC wrote previously, LyondellBasell shut down its cracker in La Porte (Texas, USA) on 19 September, 2019, because of the flooding, caused by the tropical storm Imelda. According to the company's statement, this plant, which can produce 1,150,000 tonnes of ethylene per year, was shut last Wednesday when water entered a building containing electrical components and damaged critical process control equipment.

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.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

Formosa to start up its new LDPE plant in Point Comfort in April 2020

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, has reportedly delayed the start-up of its new low density polyethylene (LDPE) unit from February to April, 2020, reported NCT with reference to market sources.

Located in Point Comfort, Texas, the unit has a production capacity of 400,000 tons/year.

The company initially planned to begin operations at its new cracker at the same location and LDPE unit by December 2019 before delaying the schedule for undisclosed reasons.

As MRC wrote before, Formosa has recently started up its new 1.5 million tons/year cracker in Point Comfort, Texas. The company has been ramping up the operating rates of the cracker.

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.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC