Celanese initiates strategic expansion of global EVA capacity

MOSCOW (MRC) -- Celanese Corporation announced preliminary plans to expand its emulsion polymers derivatives business to extend the value of its global acetyl chain, as per Kemicalinfo.

"Building on a commitment to our global customer base to be the partner of choice by solving their most critical needs, Celanese will begin key investments in facility expansions as well as expand on our green technology product development to deliver on the global growth demands of our customers," said Todd Elliott, senior vice president, Acetyls.

Celanese is starting a debottlenecking project at its Nanjing VAE production facility of 20,000 metric tons per annum by 2022. Celanese will further expand EVA production capacity at its Nanjing facility by 65,000 metric tons per annum by adding a third EVA reactor by late 2022, taking the total Nanjing VAE capacity from 130,000 to 215,000 metric tons per annum. These expansion steps support emulsions growth plans in Asia through Celanese’s sustainable products and solutions in end uses such as redispersible powders and waterproofing.

Celanese is implementing a debottlenecking project of its Geleen VAE production unit of 20,000 metric tons per annum by 2021. Celanese will further expand EVA production capacity at its Geleen facility by 50,000 metric tons per annum with an additional EVA reactor by early 2023, taking the total Geleen EVA capacity from 130,000 to 200,000 metric tons per annum. This expansion will support growth while enhancing operating flexibility within the region.

In addition to the Geleen and Nanjing EVA expansions, further capacity unlocking projects have been evaluated to add an estimated 25,000 metric tons per annum in incremental capacities at other Celanese emulsions sites in all three operating regions. We expect this expansion program to be fully implemented by 2023.

Financial details of these capital efficient projects are not being disclosed at this time, and expansion plans will be implemented when operationally feasible and pending customary regulatory and permitting approvals.

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) -- Any future phases of the US-China trade deal could fundamentally change Turkish polymer trade flows, reported S&P Global with reference to Turkish traders' statement.

The Phase 1 trade deal signed mid-January between Washington and Beijing has had a minimal impact on tariffs, according to the American Chemistry Council. However, Turkish traders say any future trade deal phases may result in lower US volumes and greater Iranian volumes into the key Turkish polymer market.

"That is important the US-China agreement so more US material will go to China. Iran will get some problems with exports from this, they have not so many places to move material so Turkey will be increasingly important for Iranian material," a Turkish trader said.

Europe has been a major destination for US polymer production since China imposed retaliatory tariffs on selected US-origin goods in response to 2018 and 2019 US tariffs. US material accounted for some 16% of Turkish polyethylene imports through 2019 to November, with US LLDPE material some 28.9% or 141,160 mt of LLDPE imports, according to Turkish statistics agency Turkstat.

Chinese tariffs on US-origin material in 2018 caused competitively priced US material to be available in Turkey, providing greater competition for Iranian material. Iran's share of LLDPE imports by Turkey shrank to 9.59% in 2019 from 20.65% in 2016, according to Turkstat data.

Sources said Iran was facing further challenges caused by US sanctions and entities which trade with Iranian companies.

"The loser [from the deal] is Iran. It means more US material to the Far East so Iranian material cannot come so often to China. They will have to sell more to Turkey or Eastern Europe instead," a second trader said.

Traders said those dealing with Iranian producers were exercising extra caution due to the potential for further sanctions ahead.

"With the Iranian crisis there is limited information about Iranian producers. They are shipping existing orders, but for new orders sellers are hesitant to give offers as they do not know what material will still be coming with any new sanctions," a trader said.

Iran was a significant origin of Chinese polymer imports during 2019, with Iranian material accounting for some 18.63% or 1,352,787 mt of Chinese HDPE imports to November according to Chinese customs data. Iranian material also accounted for some 22.02% or 688,001 mt of Chinese LDPE imports, but market sources said this would be less affected by any trade deal due to lower US LDPE production.

China is set to remain the world's top demand center for polyethylene during the 2020s, according to S&P Global Platts Analytics, with demand in Asia projected to grow 5.3% a year in theregion up to 2027. The US is set to bring some 13.5 million mt/year of new polyethylene capacity online by 2029 to capitalize on increased volumes of cheap ethane from the US shale gas boom.

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.
MRC

MOSCOW (MRC) -- HollyFrontier has chosen Haldor Topsoe’s HydroFlex™ sustainable renewable fuel technology to produce extremely clean renewable diesel from various feedstocks, as per Hydrocarbonprocessing.

Under the agreement with Artesia Renewable Diesel Company LLC, a subsidiary of HollyFrontier, Topsoe will license and supply basic engineering, proprietary equipment, catalysts, and technical services. The project is based on HydroFlex™, a world-leading, industry-proven Topsoe technology that produces renewable fuels, such as gasoline, diesel and sustainable aviation fuel, from all renewable feedstocks.

The contract was awarded after an in-depth feasibility study, involving competing technologies.

Every year, the United States Environmental Protection Agency (EPA) sets an annual quota for how much biofuel must be blended into gasoline and diesel sold in the US market. RIN (Renewable Identification Number) credits represent a volume of biofuel blended into fossil fuel and are used to ensure compliance with the quota. RIN credits can be traded, so companies that do not produce renewable fuels can buy RIN credits to meet their individual quota of renewable fuel.

"We are very proud that a market leader such as HollyFrontier has chosen HydroFlex™ for their strategic expansion into renewable fuels. HydroFlex™ is the preferred choice for refiners leading the industry transition into producing renewable fuels,” says Henrik Rasmussen, Vice President of Haldor Topsoe.

As MRC informed earlier, in August 2019, Haldor Topsoe, Mitsubishi Heavy Industries Engineering, and GTM ONE have signed a licence agreement for the design, construction, and operation of a 3000 tpd methanol plant based on Topsoe’s SynCOR MethanolTM technology. The plant will be erected at the Khimprom site in Volgograd, Russia.

HydroFlex™ can be deployed in both grassroots units and revamps for co-processing or stand-alone applications.
MRC

MOSCOW (MRC) -- Russia's output of chemical products rose in December 2018 by 1.2% month on month.
Production of basic chemicals increased by 3.4% in 2019, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for polymers in primary form. Thus, 264 ,000 tonnes of ethylene were produced in December, compared to 255,000 tonnes a month earlier. Thus, 2,984,000 tonnes of this olefin were produced in January-December 2019, down by 0.2% year on year.

December production of benzene was 132,000 tonnes, compared to 134,000 tonnes a month earlier. Overall output of this product reached 1,470,000 tonnes over the stated period, down by 4.2%year on year.

December production of sodium hydroxide (caustic soda) was 110,000 tonnes (100% of the basic substance) versus 109,000 tonnes a month earlier. Overall output of caustic soda totalled 1,289,000 tonnes over the stated period, compared to 1,279,500 tonnes a year earlier.

1,931,000 tonnes of mineral fertilizers (in terms of 100% nutrients) were produced in December versus 1,953 mln tonnes a month earlier. Overall, Russian plants produced over 23,588,000 tonnes of fertilizers last year, up by 3.2% year on year.

Last month's production of polymers in primary form increased to 928,000 tonnes, up 24.3% from November. Such a high rate in December was due to an increase in production volumes at the new Zapsibneftekhim site.

Overall output of polymers in primary form totalled 8,759,000 tonnes over the stated period, up by 6.5% year on year.
MRC

MOSCOW (MRC) -- Shell's upstream oil production increased by 6% on the year to 1.77 million b/d in the fourth quarter of 2019, contributing to what CEO Ben van Beurden insisted is a "very strong upstream business," even as profits plummeted on the back of low commodity prices and financial impairments, said the company.

Shell's oil output was boosted by new developments ramping up in Brazil, the US Permian basin and the US Gulf of Mexico, although a 9% reduction in its upstream gas output resulted in flat overall production, of 2.81 million b/d of oil equivalent.

Van Beurden said further production growth was expected from Shell's newly producing Appomattox oil field in the Gulf of Mexico, which came on stream last May. The facility is producing 75,000 b/d from four wells, with another 14 to come on stream, he said, adding that Shell was also ramping up at its liquids-rich Permian assets in the US.

Chief Financial Officer Jessica Uhl highlighted Shell's rising Brazilian production, including the latest floating production facility to come on line, in the Berbigao-Surura area, describing Brazil as an upstream "heartland," with 16 such floating facilities now producing 400,000 boe/d for the company.

Shell's upstream division, however, plunged to a USD787 million loss in the quarter, on the back of weak prices, decommissioning costs and a USD1.65 billion impairment in the value of its US unconventional assets, notably its Marcellus and Utica shale production in Pennsylvania. Van Beurden added that part of the conventional business -- not including deepwater or shale -- continued to experience "challenges."

The company's overall fourth-quarter profit was down 88% on the year at USD871 million. Excluding "identified items" -- mainly impairments -- Shell's profit was down 48% at USD2.9 billion.

"Frankly speaking, all macro-economic indicators are working against us," Van Beurden said in a call with journalists. However, he went on to describe 2019 as "a year of progress" and said Shell would continue to sustain upstream investment at around USD11 billion-13 billion annually.

Overall capital expenditure this year would be at the low end of a USD24 billion-29 billion range, but even the bottom of that range would be $4 billion more than needed to ensure growth, Van Beurden said.

Shell signalled it would be going slow on share buy-backs, while a $20 billion two-year divestment program begun at the start of last year would continue, with half of the target already achieved. There would be no rush to sell based on a need for "early cash," Van Beurden said.

On the issue of resilience, he said the average breakeven oil price for projects approved by Shell for development last year was under USD30/b, and noted a desire to increase investment in electricity projects.

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