Taiwanese CPC to Invest USD22B for petrochemical plant

MOSCOW (MRC) -- Taiwanese state-owned oil refiner CPC Corp. is committed to investing USD22 billion for the development of the Balongan petrochemical refinery, reported InsiderStories with reference to the senior minister's statement.

In 2018, the company and Indonesia’s oil and gas holding PT Pertamina has signed a USD6.49 billion framework agreement for the project.

"Later Pertamina will not be too active and have a large portion in the development of the Balongan petrochemical refinery. The CPC will be active in the production, processing, and marketing of petrochemical products," Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan told reporters at his office.

The cooperation between Pertamina and CPC is carried out in the form of the construction of a global-scale naphtha cracker plant and a global petrochemical downstream development unit in Indonesia, Pandjaitan said.

"CPC’s appointment is not without reason. CPC has been known as one of the leading companies in the international petrochemical industry. The company is expected to be an entry point for Pertamina to compete," the minister revealed.

The Indonesian operator is committed to diversifying its business into new and renewable energy segments as support for the government program for an energy mix that targets new and renewable energy portions of 25 percent by 2025, the minister adds.

Later the naphtha cracker plant is expected to produce at least one million tons of ethylene per year and build a downstream unit that will produce other refined derivative products to meet the needs of the world industry, especially in Indonesia.

Several stages of refinery construction that must be carried out this year include completing a pre-feasibility study (FS), then starting a bankable feasibility study (BFS), environmental impact assessment (EIA) and land reclamation. The refinery is expected to start operating in 2026, Pandjaitan said.

Currently, Pertamina‘s petrochemical processing capacity is only 700 kilotons per annum (ktpa). However, its capacity will increase gradually as the refinery megaproject is completed consisting of two new refineries includes Tuban and Bontang, and four revitalized refineries such as Balikpapan, Cilacap, Balongan, and Dumai.

"In 2026, we will be able to produce around 6,600 ktpa of petrochemical products," the minister said, adding the country spends USD3 billion per year to import oil and gas which is almost 70 percent of the country’s national needs.

Previously, the Abu Dhabi National Oil Company (ADNOC) has signed a deal with Pertamina for oil and gas collaboration in both countries. As a part of the deal, which is estimated to be worth USD2.5 billion, the two companies will collaborate to build a liquefied petroleum gas (LPG) storage facility in Indonesia.

Indonesia spends USD3 billion per year to import LPG which is almost 70 percent of the country’s national needs. Last year, Indonesia suffered a trade deficit of USD500 million in its trade with the United Arab Emirates (UAE). While the country’s imports from the UAE were worth USD2 billion, its exports stood at USD1.5 billion.

As MRC informed before, on 8 November 2019, CPC Corporation took one of its naphtha crackers off-stream for major maintenance work. The cracker number 4 was expected to remain offline for about 65 days. The No. 4 unit has an annual capacity of 380,000 tons/year of ethylene and 193,000 tons/year of propylene. The shutdown would result in a production loss of 67,671 tons of ethylene and 34,370 tons 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.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announced that its ethylene-based VAM technology has been awarded the designation as a "Green Technology" in China for its low carbon emissions, low energy consumption, low content of heavy components and high product quality, as per the company's press release.

The designation was announced recently at a press event in Beijing by the China Petroleum and Chemical Industry Federation (CPCIF) in the Directory for Petrochemical Green Technology (2019 edition).

Harvey Zhao, senior director of Celanese’s Asia Acetyls business, was invited to attend the press event and award ceremony. As a representative of one of the awarded companies, Zhao delivered a speech on behalf of Celanese and introduced the ethylene-based VAM technology and shared the company’s continuous efforts towards safety and environmental protection. Zhao commented: "Celanese will continue to adhere to our business principles of sustainable product development and will work together with local governments and associations and actively participate in related activities to further contribute to China’s green development."

Celanese is one of the major global producers of ethylene-based VAM (vinyl acetate monomer) that is advancing this green technology used in the production of polymer emulsions of various types, which are base resins for water-based paints, adhesives, paper coatings and textile finishes. VAM can be polymerized in mass, solution, suspension or emulsion.

The Directory for Petrochemical Green Technology was organized, evaluated and compiled by CPCIF under the support and guidance of the National Development and Reform Commission and the Ministry of the Industry and Information Technology of the People’s Republic of China in 2018. It not only provides guidance for technology selection for new investment and promoting development and application of green technologies, but also plays a positive role in guiding the government and financial institutions in making policies. There are a total of 23 such technologies listed in the Directory. The 2019 revised edition will further contribute to the "Green Petrochemical Industry" in China.

As MRC reported earlier, Celanese raised its January VAM prices in Europe, Middle East and Africa by EUR100/mt.

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).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

MOSCOW (MRC) -- Overall imports of PC granules to Russia (excluding shipments from Belarus) rose in 2019 almost by 2 times year on year to 21,300 tonnes, according to MRC's DataScope report.

Imports of material into the country were 10,900 tonnes in January-December 2018.

At the same time, imports of material, excluding Belarusian deliveries, were 2,900 tonnes last month versus 900 tonnes in December 2018. Imports of material into the country were 2,300 tonnes in November 2019.

Extrusion grade PC accounted for the greatest increase in imports. These grades accounted for 63% of the total imports of material into the Russian Federation (13,450 tonnes). The share of injection moulding grades was 32% (6,900 tonnes) and that of blow moulding grades - 5% (970 tonnes).

Covestro and Sabic Innovative Plastics were the main import suppliers of PC granules. Both producers significantly increased their shipments last year. Thus, imports of Covestro's material grew by more that two-fold: from 5,400 tonnes (49% of the total imports) in January-December 2018 to 11,700 tonnes (55% of the total imports). Sabic's shipments also rose significantly in 2019 - to 7,500 tonnes (35%) - from 2,300 tonnes (21%, excluding Belarusian imports) in 2018.

MRC

MOSCOW (MRC) -- Overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Russia rose in 2019 by 10% year on year to 48,200 tonnes, according to MRC's DataScope report.

This figure was 43,800 tonnes in January-December 2018.

At the same time, last month's GPPS and HIPS imports to the Russian market dropped slightly to 3,500 tonnes from 3,600 tonnes in December 2018. Imports of material into the country also were 3,600 tonnes in November 2018.

GPPS imports to Russia grew in 2019 by 23% year on year, totalling 28,100 tonnes. Russian companies increased their imports of material by 2% last month: from 2,400 tonnes in December 2018 to 2,500 tonnes, imports were 2,300 tonnes a month earlier.

HIPS imports to the Russian Federation continued to decline for the fourth month in a row. They were 1,000 tonnes in December 2019 versus 1,200 tonnes a year earlier and 1,300 tonnes in November 2019. Imports of material dropped in 2019 by 4% year on year to 20,100 tonnes.

European material of Styrolution, Versalis and Trinseo accounted for about 90% of HIPS shipments and 62% of GPPS deliveries. Iranian GPPS of Petropaak and Artan Petro accounted for about 17% of the total imports. Iranian GPPS has not been shipped to Russia since October 2019.

MRC

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant, - increased its output of suspension polyvinyl chloride (SPVC) in the Ukrainian market by 15% year on year to 240,400 tonnes, according to MRC's ScanPlast report.

Last month's SPVC production of the Ukrainian producer rose to 23,550 tonnes from 21,700 a month earlier. Overall output of suspension reached 204,400 tonnes in 2019, compared to 209,840 tonnes a year earlier.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC