Mitsui Chemicals expands production capacity for nonwovens at Yokkaichi

MOSCOW (MRC) -- Mitsui Chemicals, Inc. has expanded its production facilities for meltblown nonwovens at its wholly owned subsidiary Sunrex Industry Co., Ltd., according to Kemicalinfo.

The move comes as an attempt to respond to the increasing demand for industrial-use meltblown nonwovens, and will increase the total production capacity of the Mitsui Chemicals Group for these materials by 50%.

The expanded facility is situated in Asakecho, Yokkaichi, Mie Prefecture. Construction of the expansion began in August 2018 and business operations formally began in January 2020.

Mitsui Chemicals is positioning its nonwovens business as a growth market, making efforts here to supply high-quality nonwovens as industrial materials for a variety of applications. This includes use in car seats, masks and agricultural sheets.

With respect to SYNTEX MB nano products, marketing efforts are going toward use in filters and other applications that will take advantage of the meltblown nonwovens line’s superfine fibers, which are less than several hundred nanometers in diameter.

With this latest expansion of the plant, Mitsui Chemicals plans to further strengthen and expand its nonwoven business.

As MRC informed before, Mitsui Chemicals restarted its naphtha cracker in Japan on 11-12 May, 2019, following an unplanned outage. The cracker was shut in end-April, 2019 owing to power failure. Located at Chiba in Japan, the cracker has an ethylene capacity of 600,000 mt/year and propylene capacity of 331,000 mt/year.

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 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).

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- Oil refiners from Texas to Thailand are bracing for deeper output cuts, bruised by an unprecedented demand shock as more countries lock down and restrict travel to contain the spread of the coronavirus, as per Hydrocarbonprocessing.

In Asia, home to over a third of the global refining capacity, India’s top refiner has slashed output by up to 25%-30% while operators in Japan, South Korea and Thailand - already running at reduced rates - are looking at more cuts even as they shut plants for maintenance.

In Europe, some refineries in Britain and Germany have scaled back production, with traders expecting many others to follow suit as demand for products falters. ExxonMobil’s French subsidiary said on Friday it would adapt production at its two refineries in the country to falling demand.

Several U.S. refineries have also cut back production, including plants in the Los Angeles area, a busy hub for air travel. Fuel demand is starting to sink in the United States, with overall products supplied falling by 2.1 million bpd in the most recent week, a near 10% drop.

Independent refiner Phillips 66 said its first-quarter refinery utilization rate was in the low-to-mid-80s range, with many of their refineries operating near minimum rates.

China, which restarted its economy after weeks of lockdown, is an outlier with its refining sector showing signs of recovery amid a decline in the number of new virus cases.

As MRC informed earlier, the U.S. Environmental Protection Agency will not appeal a court ruling that would sharply reduce its use of waivers exempting refineries from the nation’s biofuels regulation, a big win for the Corn Lobby, according to a Reuters case docket review.

As MRC informed earlier, US Senators Chuck Grassley and Joni Ernst of Iowa have asked the Trump administration not to appeal a court ruling that would slash the use of small refinery biofuel waivers, but have not heard back yet on its decision. President Donald Trump said the United States would take advantage of low oil prices and fill the nation’s emergency crude oil reserve, in a move aimed to help energy producers struggling from the price plunge.

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) -- ExxonMobil Corp cut production at its 502,500 barrel-per-day Baton Rouge, Louisiana, refinery as poor demand has pushed up inventories and filled storage tanks, reported Reuters with reference to sources familiar with plant operations.

The number of contract workers at the Baton Rouge refinery was cut by 1,800 people on Friday as Exxon begun informing service companies of planned spending cuts.

The refinery’s production was cut to about 440,000 bpd on Saturday, the sources said.

Exxon spokesman Jeremy Eikenberry said the spending cuts will be announced when final decisions are made.

“We are notifying contractors and vendors of our intended reductions, and they may be adjusting their staffing and budgets accordingly,” Eikenberry said.

The number of contract workers at the refinery is usually 2,000 and increases when major overhauls are underway, the sources familiar with operations said.

Contract workers are employed by the third-party service companies that Exxon has been informing of its spending plans.

Social distancing and working from home to prevent the further spread of the coronavirus in the United States has reduced demand for motor fuel across the country. At least three refineries in California have cut production as well.

Lyondell Basell Industries sent home about 500 contract workers from its Houston refinery last week on Wednesday.

Exxon’s Baton Rouge refinery restored full production on March 9 after it was shut by a Feb. 12 fire.

The Baton Rouge refinery is the second-largest in Louisiana and Exxon’s second-largest in the United States.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Venezuelan state oil company Petroleos de Venezuela is trying to repair the catalytic cracker at its 146,000-barrel-per-day (bpd) El Palito refinery in an effort to restart gasoline production at the facility after years of inactivity, three people familiar with the matter said, as per Reuters.

U.S. sanctions on PDVSA, part of a push to oust socialist President Nicolas Maduro from power, have made it more difficult for Venezuela to import fuel, resulting in widespread gasoline shortages. The OPEC country’s refineries, which can process up to 1.3 million bpd, are producing at a small fraction of capacity due to years of lack of maintenance.

A plunge in global oil prices as a result of falling demand due to the coronavirus pandemic, as well as a price war between producers Russia and Saudi Arabia, has also left cash-strapped Venezuela with even fewer funds to import goods like fuel.

The repairs at El Palito, which could use pieces and equipment from other domestic refineries, would seek to restore the facility’s ability to produce 91 octane gasoline using Venezuela’s light oil, according to the people, who spoke on the condition of anonymity.

The project, however, faces a number of obstacles, including the long-standing difficulties PDVSA faces in paying contractors. The sanctions on the company have largely cut it off from the global financial system. PDVSA did not immediately respond to a request for comment on the project.

Authorities have ordered many gas stations shut across Venezuela in recent weeks, as the country implements a nationwide quarantine to prevent the spread of the new coronavirus. The measures have contributed to less demand.

Those that remain open are under control of military personnel, allowing entrance only to “priority sectors” like food and medicine distributors, security forces and patients with urgent medical appointments, according to a document seen by Reuters and a source in Venezuela’s gasoline sector.

The sale restrictions come as the pace of fuel imports into Venezuela slows. So far in March, PDVSA has imported about 91,000 bpd of fuel, according to internal company documents and Refinitiv Eikon data, down from upwards of 165,000 bpd in January and February.

As MRC informed earlier, PDVSA and the Venezuelan government have missed billions of dollars in payments to creditors in recent years as the once prosperous OPEC nation’s economy unraveled, putting many of its overseas assets at risk of seizure.

As MRC informed before, in May 2019, Curacao’s state-owned Isla oil refinery received an exemption from US sanctions on PDVSA, the Caribbean island’s government said in a statement. The US Treasury Department slapped sanctions on PDVSA in late January in a bid to force out socialist President Nicolas Maduro, who has overseen a collapse in the OPEC member nation’s economy. The license for the refinery, along with two other related companies, will allow the facility to continue to do business with US companies through Jan. 15, 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.
MRC

MOSCOW (MRC) -- Indian Oil Corp, the country’s top refiner, has cut crude processing at its refineries by 25% to 30% as local demand for refined fuel is hit following complete lockdown to curb spread of coronavirus, it said in a statement, said Reuters.

India has imposed a sweeping lockdown of its 1.3 billion people on Wednesday for 21 days, and is only allowing the supply of essential commodities. The move prompted several industries to shut operations and some ports in the country to declare force majeure.

"In the wake of the COVID-19 outbreak in the country, the demand for petroleum products like petrol, diesel, fuel oil, bitumen, etc., have reduced substantially. The demand for ATF (Aviation Turbine Fuel) has also come down sharply due to suspension of flights,” it said, adding only demand for cooking gas is rising.

State-owned Indian Oil controls about a third of India’s 5 million barrels per day (bpd) refining capacity.

Other state oil refiners are also reducing crude processing as local fuel demand has tumbled.

As MRC informed earlier, India Bharat Petroleum Corp has deferred the shutdown of secondary units at its Kochi and Mumbai refineries due to shortage of manpower and material to carry out the turnaround job.

As MRC informed earlier, Bharat Petroleum Corporation Ltd (BPCL) will invest about Rs25,000 crore to set up an ethylene cracker plant at Rasayani, 50 kilometres from its Mumbai refinery, as the firm pushes further into the petrochemicals business to fuel growth.

BPCL will commission its Rs5,236 crore Propylene Derivative Petrochemical Project (PDPP) at Kochi refinery for manufacturing niche petrochemicals in the next six months. To expand its product portfolio further, BPCL is investing Rs11,130 crore to set up a facility in Kochi refinery for manufacturing Polyols, Propylene Glycol and Mono-Ethylene Glycol.

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.
MRC