Valero refineries to run up to 91% of combined capacity in first quarter 2020

MOSCOW (MRC) -- Independent US refiner Valero Energy Corp plans for its 15 refineries to operate up to 91% of their combined capacity of 3.13 million barrels per day (bpd), said Homer Bhullar, reported Reuters with reference to vice president of investor relations.

Valero’s eight US Gulf Coast refineries will set the pace for the company with plans to operate between 89% and 91% of their combined crude oil throughput capacity of 1.8 million bpd, Bhullar said during the conference call with Wall Street analysts to discuss earnings for the fourth quarter of 2019.

As MRC informed earlier, Valero Energy Corp restarted the small CDU at its Port Arthur refinery after repairing a valve on 25 September 2019.

And in late October 2019, Valero Energy Corp shut the small crude distillation unit (CDU) at its Port Arthur refinery. The 75,000-bpd AVU 147 CDU was shut to repair a heat exchanger.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
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MOSCOW (MRC) -- On January 31, 2020, BASF, the world's petrochemical major, closed the acquisition of Solvay's polyamide (PA 6.6) business, reported MarketScreener.

The transaction broadens BASF's polyamide capabilities with innovative and well-known products such as Technyl. This will allow BASF to support its customers with even better engineering plastics solutions, e.g., for autonomous driving and e-mobility. The transaction also enhances the company's access to growth markets in Asia as well as in North and South America. Through the backward integration into the key raw material adiponitrile (ADN), BASF will now be present along the entire value chain for polyamide 6.6 and improve its supply reliability. The purchase price for the polyamide business acquired by BASF on a cash and debt-free basis amounts to EUR1.3 billion; sales generated in 2018 were about EUR1.0 billion. The business will be integrated into the Performance Materials and Monomers divisions of BASF.

'With a broader portfolio, a stronger regional presence and improved supply reliability BASF will deliver significant benefits to our customers,' said Wayne T. Smith, member of the Board of Executive Directors of BASF SE. 'The acquisition stands for our strong commitment to the polyamide business globally.'

The transaction between Solvay and BASF includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico as well as research and development centers and technical consultation centers in Asia, North and South America. In addition, it encompasses shares in two joint ventures (JV) in France: Solvay's 50% share in the Butachimie JV with Invista to produce ADN and hexamethylenediamine (HMD) and a 51% share in the new Alsachimie JV between BASF and DOMO Chemicals to produce adipic acid.

At closing, approximately 700 Solvay employees join BASF. The Alsachimie JV between BASF and DOMO Chemicals in France employs approximately 650 employees, the Butachimie JV between BASF and Invista has approximately 400 employees.

In September 2017, BASF signed an agreement with Solvay on the acquisition of Solvay's global polyamide business, subject to the approval of the relevant antitrust authorities. The EU Commission approved the acquisition of the polyamide business, subject to certain conditions, on January 18, 2019. These conditions required the sale of parts of the original transaction scope to a third party, specifically Solvay's production plants and innovation competencies in the engineering plastics field in Europe. DOMO Chemicals, Leuna, Germany, was approved by the EU Commission as the buyer. The transaction between Solvay and DOMO Chemicals also closed on January 31, 2020.

We remind that, as MRC wrote earlier, BASF 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.
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MOSCOW (MRC) -- Members of a Louisiana city council surprised residents and a representative from a Chinese chemical company at a public hearing by voting to turn down the company's request to build a plant, according to local media.

A vote had not been scheduled for Tuesday night's public hearing in Westwego, news outlets reported. The meeting was intended to provide information about a proposal from Wanhua to build a storage and distribution facility.

Eduardo Doval, CEO of the company's US operations, gave a presentation on the plan before residents were given the opportunity to ask questions.

The plant was expected to take in shipments of methylene diphenyl diisocyanate, or MDI, from China. The product would then be distilled on site for use in paint, shoe soles and padding for furniture and cars.

"This project, we believe, is safe," Doval said. "It's very benign and very environmentally sound."

But residents and city leaders said the representative failed to answer questions about potential dangers of the chemical under different conditions like reacting to heat and water and in the event of a hurricane.

After about an hour, city councilman Glenn Green said he had heard enough.

"I'd like to make a motion, mister mayor, that we deny the permit for this operation," he said.

The council then voted unanimously to deny the company's request.

Last year, Wanhua dropped its bid for a chemical manufacturing plant in Convent.

As MRC wrote before, early 2020, Wanhua Chemical Group disclosed plans for a second ethylene cracker project at its Yantai, China, site with local government officials.

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.
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MOSCOW (MRC) - The Chinese company Useon (Nanjing) Extrusion Machinery Co., a manufacturer of extruders, tested 2,000kg/hr CO2 Foam XPS, said the company.

The biggest ever China-made XPS production line is being wet tested successfully.

In 2009, Useon delivered the then-biggest CO2 foam XPS production line, TDS95-TDD300, which can produce 1,000kg/hr.

Now, this new TDS135-TDD400 is another milestone for XPS industry. The new line can yield 2,000kg/hr, and it is able to produce 100mm thickness XPS board directly with merely CO2 and ethanol. Innovation is one of the company's core values.

As MRC informed earlier, Useon (Nanjing) Extrusion Machinery Co., a manufacturer of extruders, installed a polypropylene (PP) granulation line with a capacity of 70,000 tonnes/year in Indonesia.

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.
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MOSCOW (MRC) -- Since Saras launched its very low-sulfur fuel oil (VLSFO) blend in early September its sales have topped 120,000 tons, reported Reuters with reference to an executive at the Italian refiner.

VLSFO is the name given to a range of new fuel blends that refiners have created to comply with International Maritime Organization (IMO) rules which kicked off at the start of the year limiting sulfur content in shipping fuel to 0.5%.

"Saras’ flexible and complex refinery configuration allows cost effective VLSFO production," Massimo Vacca, planning, benchmarking and sustainability manager for Saras told reporters.

"We are very pleased with this new product," he added.

Saras is targeting 550,000 tonnes of VLSFO and 180,000 tonnes of marine gasoil (MGO) in annual sales, according to company figures.

Profit margins for VLSFO have surprised market participants on the upside, and prices have even traded at parity with the usually more expensive MGO at some ports.

Saras is able to produce a 380-cst specification and has so far received "very positive feedback from its clients and no complaints concerning the stability of its VLSFO," Vacca said.

Saras operates the 300,000 barrel per day Sarroch refinery in Sardinia.

As MRC informed before, in early 2017, Rosneft JV Projects S.A. (Luxembourg), an indirect subsidiary of Rosneft Oil Company, announced the agreement to sell to institutional investors 114,120,000 ordinary shares in Saras S.p.A., representing 12% of the total share capital in Saras S.p.A., at a price of EUR 1.53 per share through an accelerated bookbuilding.

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.
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