Fire killed five people at Petronas-Aramco refining complex in Malaysia

MOSCOW (MRC) -- A fire killed five people at a refining and petrochemicals complex in southern Malaysia owned by Petronas and Saudi Aramco, reported Reuters with reference to authorities' statement on Monday.

It was the second fire in less than a year at the USD27 billion Pengerang Integrated Complex (PIC) in Malaysia’s southern state of Johor.

Petronas and Saudi Aramco each have a 50% stake in the PRefChem joint venture, which owns and operates the refinery and some petrochemical plants at PIC.

The Johor State fire and rescue department said the fire and a blast occurred on Sunday night at the diesel hydro theater unit, which was removing sulphur from raw diesel using hydrogen gas.

Other than the fatalities, one other person has suffered burns, the fire department said, adding that the cause of the fire was under investigation.

Petronas directed queries to the joint venture company Pengerang Refining and Petrochemical (PRefChem), which has not responded to a Reuters request for comment.

As MRC wrote before, PRefChem abruptly shut down its cracker in Pengerang, Malaysia, on 25 October 2019, due to an unspecified technical issue. The naphtha cracker produces 1.2 million tons/year of ethylene and 600,000 tons/year of propylene. Sources with knowledge of the matter said then that it might take roughly ten days for the cracker to come back online.

We also remind that the company received commercial ethylene and propylene at its new cracker in Pengerang on 13 September, 2019.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

PrefChem a joint venture between Malaysia's Petroliam Nasional Bhd, or Petronas, and Saudi Aramco. The Pengerang Refining development, part of Petronas’ USD27 billion Pengerang Integrated Complex, consists of a 300,000 barrels-per-day (bpd) oil refinery and a petrochemical complex with a production capacity of 7.7 million tonnes per year in the southern Malaysian state of Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Mitsubishi Chemical Holdings Corporation (MCHC) has announced the transfer of Life Science Institute Inc’s affiliate, Qualicaps to Mitsubishi Chemical Corporation (MCC), with effect from 1 July, according to Kemicalinfo.

“Through this transfer, MCC will enable Qualicaps to provide higher value-added solutions to the global capsule market by not only strengthening manufacturing technology leveraging mutual resources and accelerating chemical materials development, but also bolstering sales through collaboration among MCC business domains,” the company said in a press release.

Qualicaps is based in Japan and focuses on the production, manufacture and distribution of capsules for pharmaceutical, health and nutrition products, as well as pharmaceutical processing equipment (PPE).

In 2013, Mitsubishi Chemical Holdings bought stake in Qualicaps and made its consolidated subsidiary.

Life Science Institute Inc was established in April 2014. As a group company of Life Science Institute, Qualicaps has contributed to the growth of MCHC Group’s health care domain by offering high-performance hard capsules, as well as the development of and provision of technical services for PPE.

As MRC reported earlier, Asahi Kasei Mitsubishi Chemical Ethylene, a joint venture of Asahi Kasei Corp and Mitsubishi Chemical Corp, restarted operation at its naphtha cracker in Mizushima, Okayama prefecture on 24 January, 2020, after completing planned repair of the unit’s troubled refrigeration system. The naphtha cracker automatically shut down on 14 January after it detected a malfunction in the refrigeration system. Japanese petrochemical firms Asahi Kasei and Mitsubishi Chemical launched the joint venture in April 2016 to operate the naphtha cracker, after integrating their operations in Mizushima. The naphtha cracker has a production capacity of 567,000 tonnes a year without any turnaround and 496,000 tonnes with turnaround, the firm said.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.
MRC

MOSCOW (MRC) -- The gasoline-producing fluidic catalytic cracker (FCC) at Lyondell Basell Industries’ 263,776 barrel-per-day (bpd) Houston refinery is expected to remain shut through April after more damage was found inside the unit, reported Reuters with reference to Gulf Coast market sources' statement.

The 90,000-bpd FCC was shut by a Feb. 16 fire, which led to the discovery of large cracks in the unit’s reactor. Until the discovery of more damage this week, the inspection of and repairs to the unit were expected to finish in the first week of April, the sources said.

As MRC wrote before, LyondellBasell (LBI), one of the largest plastics, chemicals and refining companies in the world, has just announced it has signed definitive agreements to expand in China through a 50:50 joint venture with the Liaoning Bora Enterprise Group (Bora). On September 5, 2019, LyondellBasell and Bora first signed a Memorandum of Understanding and announced their intention to form this joint venture during a ceremony in Panjin, China. Under the agreements, the partners will form a Sino-foreign joint venture, the Bora LyondellBasell Petrochemical Co. Ltd, that will operate a 1.1 million metric tons per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of approximately USD2.6 billion.

LyondellBasell will market the polypropylene (PP) and high-density polyethylene (HDPE) which will be produced utilizing LyondellBasell licensed Spheripol, Spherizone PP technologies and Hostalen ACP polyethylene technology. Start-up is expected in the second half of 2020.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

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

MOSCOW (MRC) -- Industrial plastics recycler Fibertech Inc. has named Brent Rasche as its new chief operating officer (COO), said Canplastics.

Prior to joining Elberfeld, Ind.-based Fibertech, Rasche worked for injection molder SRG Global in various roles, most recently as vice president, North America.

Fibertech provides plastic rotational molding and manufactures many different types of plastic products, spanning a range of industries.

Fibertech’s industrial plastic recycling services involve taking bulk industrial scrap plastic and turning it into durable material handling products, primarily through rotation molding.

As MRC informed earlier, Chester, N.S.-based GN Thermoforming Equipment has appointed Alberto Capodicasa as its new sales manager for Mexico and Central and South America. Based in Nova Scotia, Capodicasa is a native of Venezuela and fluent in English, Spanish, and Italian, has many years of experience in various sales positions, most recently as regional sales manager with LED Roadway Lighting Ltd.

As per MRC' DataScope, overall imports of PC granules to Russia (excluding shipments from Belarus) grew in the first month of 2020 more than by 3 times year on year to 2,590 tonnes. Imports of material into the country were 740 tonnes in January 2019. December 2019 imports of material to Belarus reached 2,850 tonnes. Extrusion grade PC accounted for the greatest increase in January imports. Their share rose significantly in the total imports of material into the Russian Federation to 82% (2,100 tonnes) from 44% (32,000 tonnes) in January 2019.

MRC

MOSCOW (MRC) -- Husky Energy is taking a series of actions to fortify its business in response to challenging global market conditions, said the company.

These initiatives reflect the Company’s commitment to capital discipline, which includes maintaining the strength of its balance sheet while protecting value in an extended low commodity price environment. Husky’s drive to improve process and occupational safety is unaffected and remains a top priority.

"Husky has three important advantages: a strong balance sheet, an Integrated Corridor which includes a sizeable downstream and midstream segment, and Offshore operations that include long-term gas contracts in the Asia Pacific region not linked to the price of oil," said CEO Rob Peabody.

Given current market conditions Husky will commence the safe and orderly reduction, or shut-in, of production where it is cash negative on a variable cost basis at current prices.

As MRC informed earlier, Husky Energy continues to make steady progress towards a return to full operations at the Superior Refinery. The Company has received the required permit approvals to begin reconstruction activities at the site and work is expected to begin immediately. Demolition of damaged equipment resulting from a fire in April of 2018 is now largely complete and the rebuild will take place over the next two years with an expected return to full operations in 2021.

Total liquidity is USD4.9 billion, comprised of USD1.4 billion in cash and USD3.5 billion in unused credit facilities. In line with its committed credit facilities, Husky is required to maintain debt to capital of no more than 65%, and is well below this threshold with a ratio of 27% with no long-term debt maturities until 2022.
MRC