Explosion, fire damages Sasol new Louisiana LDPE plant - company

MOSCOW (MRC) -- An explosion and fire Monday damaged Sasol's new low density polyethylene (LDPE) plant at its Louisiana complex as the unit was coming online while wrapping up commissioning, reported S&P Global with reference to the company's statement Tuesday.

The company's new 1.5 million mt/year cracker was not affected by the incident and was operating at its nameplate capacity, the company said.

The 420,000 mt/year LDPE unit "has been shut down and an investigation is underway to determine the cause of the incident, the extent of the damage" and impact on its startup schedule, Sasol said. No one was hurt in the blast.

Sasol had intended to start up the cracker and LDPE plant by the end of 2019, but shut the cracker in late November to replace an acetylene reactor catalyst because it had only reached 60% of its capacity. The company initially started up the cracker in July, but brought it down to address a heat exchanger problem before resuming its startup in August.

Last month the company finished the second repair, resumed startup, and worked to finish commissioning and transition to startup of the LDPE plant as well.

The cracker and LDPE plant are part of Sasol's USD12.6 billion-USD12.9 billion Lake Charles Chemical Project (LCCP), a new chemical complex. A 470,000 mt/year linear low density PE plant started up in February last year. Rounding out the LCCP newbuilds will be this month's startup of an ethoxylates facility and Guerbert alcohols unit followed by the March startup of a Ziegler alcohols unit.

Sasol's new LDPE plant was one of 13 that had been slated to come online from 2017 through 2019, the first wave of new petrochemical infrastructure to emerge from the US natural gas shale boom, adding 6.4 million mt/year of capacity. Another 7.27 million mt/year is planned to start up after 2020, according to company announcements.

Sasol's new cracker is the seventh of eight that had been expected to start up in that first wave. The eighth is a 1.5 million mt/year facility at Formosa Plastics USA's Point Comfort, Texas, complex, which was delayed from its year-end 2019 startup as well. Formosa has not disclosed a new startup target date, and the company also delayed startup of its new 400,000 mt/year LDPE plant at Point Comfort.

All told, the first wave will bring online nearly 10 million mt/year of new ethylene capacity, while the second wave - through the 2020s - is expected to add another 8.3 million mt/year.

Sasol's LCCP started with a USD9 billion price tag, but grew to the current estimate as labor costs increased and officials discovered delayed reporting of issues with internal controls and flawed forecasts.

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.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

Royal Dutch Shell seeking buyer for Anacortes, Washington refinery

MOSCOW (MRC) -- Royal Dutch Shell Plc is looking to sell its oil refinery in Anacortes, Washington, reported Reuters with reference to three people familiar with the matter.

If completed, this and other asset sales currently underway would reduce Shell’s North American refining operations to large plants on the U.S. Gulf Coast, said the people, speaking on condition of anonymity as the talks are private.

Oil and gas major Shell has publicly committed to selling more than USD5 billion of assets per year in 2019 and 2020. The Netherlands-based company is trying to use its global scale to build a power business as the world moves toward cleaner energy.

The refinery, located north of Seattle, has the ability to process 144,000 barrels per day (bpd) of crude oil, according to Refinitiv Eikon data.

This is Shell’s third effort to divest a plant in the past year. In June, Shell agreed to sell its Martinez, California, refinery to independent refiner PBF Energy Inc (PBF.N) for up to USD1 billion.

The company retained advisers about a year ago to sell its 75,000-bpd Sarnia, Ontario, refinery.

If all three sales are completed, including Anacortes, Shell would operate only three North American refineries: the 340,000-bpd Deer Park, Texas, refinery, a joint venture with Petroleos Mexicanos, and two refineries on the Louisiana coast that together can process almost 500,000 bpd of crude oil.

Shell has also divested refineries in other regions, selling its 50% stake in the SASREF refinery in Saudi Arabia last year.

As MRC informed earlier, Shell Singapore restarted its naphtha cracker in Bukom Island in early December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

SIBUR Board of Directors approves 2025 Sustainable Development Strategy

MOSCOW (MRC) -- SIBUR Holding, Russia’s largest integrated petrochemicals company, announces that its Board of Directors has approved the 2025 Sustainable Development Strategy, as per the company's press release.

The Strategy identifies five key focus areas (Responsible Business, Environment, Society and Partnership, Sustainable Product Portfolio, and Climate Impact Mitigation) and sets respective goals as follows:

Responsible Business. SIBUR intends to annually reduce LTIF by 5% for its employees and contractors, at least double the share of women in the senior management positions, adopt the Code of Counterparty Business Ethics, and improve its compliance system, including development of the Human Rights in the Workplace programme.

Environment. SIBUR intends to recycle at least 50% of all generated waste, reduce the specific mass of contaminants in wastewater by 40%, and cut water consumption per ton/unit by at least 5%. As part of Operation Clean Sweep, SIBUR is planning to minimise the amount of plastic pellets lost into the environment.

Society and Partnership. As part of the 2025 goals, the Company is to establish a public council under the Formula for Good Deeds programme, launch at least three long-term environmental projects as part of this programme, and increase the share of employees participating in volunteering and other socially important initiatives to 20%. In addition, the Company aims to provide training in sustainable development for 85% of its employees and establish at least two international partnerships to promote sustainability.

Sustainable Product Portfolio. The Company plans to increase investments into R&D projects focusing on polymer waste recycling and use of renewable feedstock by 50%, build an effective communication system to promote sustainable development across the supply chain, and make sure that at least 40% of manufactured PET contains recycled PET granules.

Climate Impact Mitigation. SIBUR intends to cut greenhouse gas emissions per ton/unit in Midstream and Petrochemicals segments by 5% and 15%, respectively, and increase the share of green energy in the Company’s energy mix fivefold.

Leonid Mikhelson, Chairman of the Board of Directors at SIBUR Holding said: "SIBUR is continuously working to create added environmental and social value. With the new Strategy approved, the Company has the ambition, potential and opportunities to contribute to the resolution of global problems that society is facing today."

Dmitry Konov, Chairman of the Management Board at SIBUR Holding said: "Being Russian leading petrochemical company and one of the fastest growing global chemical industry majors, SIBUR operates in the interests of all stakeholders as our products play an important part in the day-to-day life of many people around the world. The Company’s commitment to sustainability and approval of the 2025 Sustainable Development Strategy were primarily driven by SIBUR’s active role in unlocking the potential of polymer recycling, efforts to promote circular economy and initiatives to address other challenges that our society is now facing.

The Company will continue to work toward integrating the circular economy opportunities in its business model, which will help us incrementally achieve our ambitious sustainability goals."

The Sustainable Development Strategy is aligned with the Company’s mission and values and 13 United Nations Sustainable Development Goals (SDGs) in which SIBUR is best suited to make the strongest impact. In addition to facilitating the achievement of sustainable development goals directly through its core activities, SIBUR also supports and embraces various projects and initiatives aimed at protecting the environment, mitigating the climate impact, developing innovation, and promoting culture, healthcare and education.

As MRC informed before, in mid-August 2019, SIBUR’s Blagoveshchensk site held a ceremony to celebrate the completed reconstruction of the purified terephthalic acid (PTA) production facility, the only one currently in Russia. PTA is a precursor to polyethylene terephthalate (PET), one of the world’s most widespread polymers that is used in the production of plastic bottles for beverages, synthetic fibres, various packaging, and medical supplies. PTA is also used to make eco-friendly plasticisers for toys, flooring and other products. In Russia, annual consumption of TPA amounts to around 500 kt. An increase in output from 272 to 350 ktpa driven by the upgrade of the existing capacities in Blagoveshchensk will help largely phase out reliance on imports.

As per MRC's ScanPlast report, imports of PET chips into Russia increased by 13% year on year in the first eleven months of 2019, reaching 130,800 tonnes, compared to 116,100 tonnes a year earlier (excluding shipments from Belarus). Russia's PET imports almost doubled in November 2019, totalling 12,300 tonnes, versus 6,300 tonnes in October; imports of material were 8,200 tonnes in November 2018. The share of Chinese material was 78% (9,600 tonnes) in November versus 92% (5,800 tonnes) a month earlier.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
MRC

Solvay boosts light stabilizers capacity at West Virginia site

MOSCOW (MRC) -- Solvay’s new high molecular weight (HMW) hindered amine light stabilizer (HALS) capacity is now online, complementing existing HALS production at the Willow Island, West Virginia, USA, site, according to Kemicalinfo.

The facility was designed with the latest improvements in technology to ensure operator safety, reduce impact on the environment, and improve the quality and consistency of Solvay’s HALS products.

"We decided to expand our capacity to better meet the needs of our customers," explained Ning Chen, Vice President, Polymer Additives for Solvay’s Technology Solutions global business unit. "This investment provides peace of mind to our clients, ensuring security of supply and a faster response from Solvay, a technology leader and industry reference in light stabilization. With it, we are well-positioned to continue delivering innovative solutions and growing with our customers."

The core HALS products currently produced at the site are the foundation for the CYNERGY and CYXTRA polymer additives product families that are used to transform polyolefin plastics into advanced polymers for specialty applications in building and construction, agricultural films, and a host of consumer and industrial uses.

Solvay’s specialty HMW HALS technology protects polyolefins against degradation caused by exposure to light and thermal forces, extending the lifetime of plastics in outdoor applications.

As MRC wrote before, in July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March 2016.

According to MRC's ScanPlast report, Russia's estimated consumption of unmixed PVC was 857,450 tonnes in January-November 2019, up 4% year on year. Emulsion and suspension PVC (EPVC and SPVC) markets showed an increase in supplies. November consumption of SPVC (excluding exports to Belarus) decreased to 70,620 tonnes from 71,720 tonnes in October. Some producers reduced PVC production in November, which affected export sales. Overall shipments of suspension to the Russian market totalled 736,570 tonnes in the first eleven months of 2019, up by 3% year on year. Local producers managed to increase suspension output by 3%, whereas exports grew by 24%.

Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end-markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources, and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were EUR10.3 billion in 2018, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%.
MRC

Dow Chemical issues order control letter for VAM

MOSCOW (MRC) -- Dow Chemical, the world's petrochemical major, has put order controls in place for vinyl acetate monomer (VAM), reported S&P Global with reference to a letter to US customers obtained Thursday.

The letter dated January 8 said, effective immediately, volumes will be based on previous monthly averages of purchased volumes, or limited to monthly maximum volumes specified in contracts. The letter does not provide details about how long the order control will be in place.

A Dow spokeswoman was not immediately available for comment.

VAM is derived from ethylene and acetic acid, and is a precursor to polyvinyl acetate, which is used to make glue.

Earlier Thursday, market sources said LyondellBasell Acetyls declared force majeure on supplies from its La Porte, Texas, facility.

As MRC informed earlier, in the first week of November 2019, Dow said the Glycol 2 plant at its Plaquemine, Louisiana, facility was in "recovery mode" after a vessel ruptured the morning of 3 November. The company says there were no injuries, nor have any offsite emissions been detected, and other production units at the site continue to run normally. The Glycol 2 plant includes an ethylene oxide production unit and downstream production of isopropanolamines and alkyl alkanolamines, according to a permit issued by the Louisiana Department of Environmental Quality.

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).

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC