Klockner Pentaplast completes major pharma capacity expansion in Brazil

MOSCOW (MRC) -- Germany-based rigid and flexible plastic packaging supplier Klockner Pentaplast (KP) has completed what it calls a “significant expansion” for pharmaceutical packaging films at its Cotia facility in Brazil, said Canplastics.

Along with a larger and more sustainable facility, the project gives KP additional coating capacity to better support the rapidly growing South American pharmaceutical market.

The state-of-the-art coating line has increased KP’s local South American coating capacity by over 30 per cent, offering customers high quality, innovative films with shorter lead times. “The added capacity arrives at the right time, as the pharmaceutical blister market continues to grow in PVdC coated products as a cost effective high-barrier packaging solution,” the company said in a March 23 statement.

“We are excited about this latest project to better serve our customers in the region,” Tracey Peacock, president of KP’s pharmaceutical, health and specialties division. “The expansion demonstrates our commitment to delivering the best quality products and supports a growing demand for high-barrier protective packaging for pharmaceuticals."

The upgraded technology also reduces the Cotia site’s carbon footprint and overall energy consumption.

KP was founded in 1965. The company currently has 32 plants in 18 countries and employs over 5,900 workers.

As MRC informed before, Pregis has acquired Italian temporary protective films manufacturer Soprad. The financial terms of the acquisition were not disclosed. Soprad’s products will be marketed under the Pregis’ PolyMask brand, which includes temporary surface protection films and specialty films.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, 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).
MRC

MOSCOW (MRC) -- Brazilian state-led oil company Petrobras set a fresh daily output record at the Buzios Field last week, marking the latest production advancement at the country's second-biggest gusher, reported S&P Global with reference the company's statement late Wednesday.

Buzios, which pumped first oil in April 2018, produced 640,000 b/d of crude and a total of 790,000 b/d of oil equivalent on Tuesday, Petrobras said. The field pumped 487,264 b/d and 18.2 million cu m/d for total hydrocarbons output of 601,704 boe/d in January, according to the latest production report from Brazil's National Petroleum Agency, or ANP.

"The Buzios Field, discovered in 2010, is the biggest deep-water oil field in the world," Petrobras said. "It's a world-class asset, with substantial reserves, low risk and low extraction costs."

The field features Brazil's top-six production wells, including three that produce more than 50,000 boe/d, according to the ANP.

The record-setting performance, however, will likely be undermined in coming weeks, with Petrobras starting a massive maintenance program that will shutter each floating production, storage and offloading vessel, or FPSO, installed in the subsalt region expected to be shuttered for 15-20 days. The unprecedented program will improve efficiency and check the integrity of subsea systems in the region, which are subject to intense pressures and the corrosive effects of contaminants such as carbon dioxide and sulfuric acid.

Despite the field's relatively recent startup, Buzios will be included in the program, company officials said in February.

Production at Buzios has surged since mid-2019, when Petrobras finally resolved technical issues related to natural gas processing plants onboard the FPSOs installed at the field. The field features high pressures and volumes of associated gas, but is largely free of the high levels of contaminants seen at other subsalt reservoirs.

Petrobras installed four FPSOs capable of pumping up to 150,000 b/d and processing 6 million cu m/d each at Buzios, starting in early 2018. The FPSOs P-74, P-75, P-76 and P-77 handle output at the field. Petrobras plans to install fifth and sixth FPSOs, which will be slightly larger with installed production capacity of about 180,000 b/d, in 2022 and 2024, respectively.

The recent turmoil in global markets related to the oil-price war between Saudi Arabia and Russia as well as the coronavirus outbreak is unlikely to upset Petrobras' development plans at Buzios. Buzios and Lula, Brazil's top producing oil field, have breakeven costs at less than USD35/b, according to Petrobras. Lifting costs for the entire subsalt region were USD5.60/b in 2019, down from USD6.50/b in 2018, according to the company's 2019 earnings statement.

As MRC wrote previously, the chief executive of Brazilian state-run oil firm Petroleo Brasileiro said in December 2019 he wants to sell the company's stake in petrochemical company Braskem within 12 months.

Besides, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- INEOS Group Holdings S.A. announces its trading performance for the fourth quarter of 2019, as per the company's press release.

Based on unaudited management information INEOS reports that EBITDA for the fourth quarter of 2019 was EUR409 million, compared to EUR356 million for Q4, 2018 and EUR514 million for Q3, 2019. Full year EBITDA was EUR1,945 million compared to EUR2,288 million for 2018.

North American markets were solid, taking full benefit from their current feedstock advantage. Market conditions in Europe were subdued, and markets in Asia have seen some weakness in the quarter.

O&P North America reported EBITDA of EUR120 million compared to EUR135 million in Q4, 2018. Full year EBITDA was EUR727 million compared to EUR798 million for 2018. The business has continued to benefit from its flexibility to be able to utilise cheaper NGL feedstocks to maintain margins. The US cracker business environment was generally solid with good operating rates throughout the quarter. The business was adversely impacted in the quarter by an unscheduled outage at the Chocolate Bayou facility. Ethylene markets remained structurally long due to increased industry supply, although some unplanned outages in the quarter supported margins. Polymer demand was subdued, with increased industry supply adversely impacting margins.

O&P Europe reported EBITDA of EUR139 million compared to €108 million in Q4, 2018. Full year EBITDA was EUR591 million compared to EUR672 million for 2018. Demand for olefins in the quarter was firm, with increased volumes compared to the fourth quarter of 2018, which was negatively impacted by low Rhine water levels. European polymer demand was stable, but increased competition from imports impacted volumes and margins in the quarter.

Chemical Intermediates reported EBITDA of EUR149 million compared to EUR113 million in Q4, 2018. Full year EBITDA was EUR627 million compared to EUR818 million for 2018.The overall demand trend in the Oligomers business was good across many product sectors and markets, with particular strength in co-monomers.

Demand for the Oxide business was generally flat. Low glycol margins continued in the quarter due to weak Asian demand. The markets for the Nitriles business were softer in both ABS and acrylic fibre due to the subdued automotive sector and increased competition from other fibres. Volumes were adversely impacted by the continued shutdown of the Seal Sands facility in the quarter. The poor operating performance of the facility, together with uneconomic capital expenditure requirements, resulted in the decision to close the facility in December 2019. Demand for the Phenol business was solid, with some weakness in margins due to lower returns on acetone.

The Group has continued to focus on cash management and liquidity. Net debt was approximately EUR5.9 billion at the end of December 2019. Cash balances at the end of the quarter were EUR983 million, and availability under undrawn working capital facilities was EUR204 million. Net debt leverage was approximately 3.0 times as at the end of December 2019.

As MRC informed before, in January 2019, INEOS announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

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.

INEOS is a global manufacturer of petrochemicals, specialty chemicals and oil products employing 22,000 people. It has 34 businesses, with a production network spanning 183 manufacturing facilities in 26 countries.
MRC

MOSCOW (MRC) -- Canadian midstream energy and petrochemicals company Pembina Pipeline is cutting capital spending by between Canadian dollar (CD) 900m to 1.1bn (USD625-764m) as it reacts to the coronavirus (Covid-19) pandemic and the recent decline in global energy prices, reported Chemweek.

A number of projects will be deferred, including Pembina’s investment in the Canada Kuwait Petrochemical Corp (CKPC) petrochemicals joint venture - which involves building an integrated propane dehydrogenation and polypropylene (PDH/PP) complex in Alberta province.

Officials previously indicated an H2 2023 in-service timeline for the complex.

The company will also defer a number of pipeline projects, a co-generations power facility, and the expansion of a liquefied petroleum gas (LPG) export terminal in British Columbia.

Pembina expects its revised 2020 capital budget to be CD1.2-CD1.4bn - down from previously planned CD2.3bn.

As MRC informed before, a new multibillion-dollar petrochemical facility being developed in Alberta will be built by a 50/50 partnership between Fluor Canada Ltd. and Kiewit Construction Services ULC. The partnership is called Canada Kuwait Petrochemical Corporation (CKPC). The deal with Fluor and Kiewit covers construction of the site’s propane dehydrogenation facility. CKPC said in January 2020 the contractor selection process for the polypropylene upgrading facility is still ongoing.

Calgary-based Pembina Pipeline Corp. and Petrochemical Industries Co. K.S.C. of Kuwait have been planning the facility within the Alberta Industrial Heartland development area northeast of Edmonton for nearly four years. Pembina has a 50 per cent interest in the joint venture with Petrochemical Industries, which will own the propane dehydrogenation and polypropylene upgrading plants.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, 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 COVID-19 outbreak has led Shell Chemical to temporarily suspend construction on the massive plastics and petrochemicals site it's building in Monaca, Pa, reported PlasticsNews.

"The health and well-being of our workers and nearby communities remains Shell's top priority," Shell Pennsylvania Chemical Vice President Hilary Mercer said in a March 18 statement. "That's an ethos we live by every day, but it's especially relevant at a time when the world is taking drastic measures to contain the spread of the COVID-19 virus. We're committed to doing our part."

Mercer added that "in the days ahead [Shell] will install additional mitigation measures aligned with CDC (US Centers for Disease Control and Prevention) guidance."

"Once complete, we will consider a phased ramp-up that allows for the continuation of safe, responsible construction activities," she said.

Mercer also said that Shell officials "are proud of the over 8,000 workers who have committed their time and expertise to one of the largest construction projects in the United States, and the first of its kind in Pennsylvania.

"The decision to pause was not made lightly," she said. "But we feel strongly the temporary suspension of construction activities is in the best long-term interest of our workforce, nearby townships and the Commonwealth of Pennsylvania.

"Our goal is to build a positive, decades-long legacy in the region. That means earning our right to live and work here every day. It also means caring for people. While understandably disappointing to many, we believe this decision honors that approach."

Shell began construction in Monaca, near Pittsburgh, in late 2017. The 386-acre project will be the first US petrochemicals project built outside of the Gulf Coast of Texas and Louisiana in several decades. Production is expected to begin in the early 2020s.

The complex will use ethane from shale gas produced in the Marcellus and Utica basins to make around 3.5 billion pounds of polyethylene resin per year. The complex will include four processing units, an ethane cracker and three PE units. Most of the resin made in Monaca is expected to be sold to Shell customers within North America.

Shell Chemical is a unit of global energy firm Royal Dutch Shell. The business is based in The Hague, Netherlands, with US headquarters in Houston.

As MRC informed earlier, in mid-February 2020, Shell confirmed coronavirus case at its Singapore refining site. Namely, a contractor working at Shell's Pulau Bukom manufacturing site in Singapore contracted the new coronavirus.

We also remind that 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 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.

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.
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