Zhejiang Petrochemical to start up new ACN plant in early May

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd is planning to start up its new acrylonitrile (ACN) plant within the first week of May, reported S&P Global.

Based in Zhejiang, China, this plant is able to produce 260,000 tons/year of ACN.

As MRC informed earlier, Zhejiang Petrochemical Co Ltd started up its ethylene cracker in late December 2019 and its polyolefin plants in late December 2019-January 2020.

Market sources reported then that one of its polypropylene (PP) plant with capacity of 450,000 tons/year started up by 30 December 2019, followed by another line with same capacity by 15 January 2020.

Meanwhile its 450,000 tons/year of lienar low density polyethylene (LLDPE) and 300,000 tons/year of high density polyethylene (HDPE) were launched around similar time with PP plants.

We also remind that China's greenfield Zhejiang Petrochemical will use a range of process technology from Honeywell UOP for the second phase of its integrated refining and petrochemical complex in Zhoushan, Zhejiang province, according to a document, quoting a senior Honeywell official. "This second phase of the complex by itself will process 20 million tons per year of crude oil and produce another six million tons per year of aromatics when completed," Bryan Glover, vice president and general manager, Process Technology and Equipment, at Honeywell UOP, stated in the document as of January 2019.

ACN is the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to MRC's DataScope report, overall ABS imports to the Russian market increased in the first two months of 2020 by 8% year on year to 4,800 tonnes. This figure was at 4,500 tonnes in January-February 2019. February imports of material into the Russian Federation rose by 48% year on year to 2,500 tonnes from 2,700 tonnes a year earlier. Imports were 2,300 tonnes in January 2020.
MRC

MOSCOW (MRC) -- A gas leak at LG Polymers India Pvt Ltd polymer plant at Visakhapatnam, India left at least eight dead and about 800 people sick, reported Kemicalinfo.

The incident took place on 7 May at around 02:30 am IST.

The gas reportedly started leaking when the workers were preparing to reopen the plant today post lockdown. The gas was reportedly leaked out from two 5,000 metric tons tanks, which had been unattended since March due to the COVID-19 pandemic lockdown.

South Korea’s LG Chemical took over the plant from a local Indian company in the late 1990s.

"We are working together with the local authorities to assess the damage caused to the local people and to take whatever it takes to protect them and our workers,”"LG Chemical said in a statement. "The gas leak from the factory is now under control. But the gas can cause vomiting and dizziness when inhaled. We are doing all we can to ensure medical treatment as quickly as possible."

LG Polymers India plant produces polystyrene (PS) and expandable polystyrene (EPS).

According to MRC's ScanPlast report, March 2020 estimated consumption of PS and styrene plastics in Russia dropped by 2% year on year, totalling 42,130 tonnes. The estimated consumption totalled 121,880 tonnes in the first three months of 2020, down by 2% year on year. Overall, Russian plants produced 42,790 tonnes in March 2020.
MRC

MOSCOW (MRC) -- Volgograd Kaustik, Russia's fourth largest polyvinyl chloride (PVC) producer, shut down production of polyvinyl chloride (PVC) for a scheduled turnaround, according to ICIS-MRC Price report.

According to a company representative, scheduled maintenance works started at PVC production on 1 May. The shutdown will be quite long and will take three weeks. The plant's PVC production capacity is 90,000 tonnes/year.

It is also worth noting that next shutdowns for maintenance at Russian PVC plants are scheduled in June - July.
SayanskKhimPlast and RusVinyl, which annual capacities are 350,000 tonnes and 330,000 tonnes, respectively, will take next off-stream their production capacities for maintenance.

PVC production at Volgograd Kaustik was launched in December 1972 with the assistance of the Japanese firm Kureh's specialists. Nikokhim Group is one of the leaders of the Russian chemical industry, the main production assets of which are located in the southern industrial hub of Volgograd.

The holding company includes: JSC Kaustik is the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC NikoMag - production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Zirax, Ltd. - production of high-purity reagents for various industries and JSC Poligran - the production of plastic compounds and rigid PVC compounds.
MRC

MOSCOW (MRC) -- Oil markets are at the beginning of a fragile recovery as coronavirus lockdowns ease, though long-term peak demand may be permanently eroded, Vitol’s chief executive told Reuters.

Russell Hardy, CEO of the world’s biggest oil trader, said global oil demand sank by 26-27 million barrels per day (bpd) in April and predicts a year-on-year drop of over 8 million bpd.

"The market is going to flirt with optimism and pessimism for the next two or three weeks," Hardy said.

As MRC wrote before, Vitol, the world’s biggest oil trader, began exporting fuel oil and diesel from Turkmenistan via the Russian port of Novorossiisk in December 2019.

We also remind that test operations at a new gas chemical complex (GCC) for processing natural gas and producing polyethylene (PE) and polypropylene (PP) in the village of Kiyanly, Turkmenistan, started in August 2018. An official launch of production took place on 17 October, 2018.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Brooge Petroleum and Gas Investment Co (BPGIC) has leased oil storage facilities in the United Arab Emirates to France’s Total, industry sources familiar with the matter said, as global crude storage rapidly fills up, said Hydrocarbonprocessing.

The company is leasing six storage tanks in the UAE emirate of Fujairah for six months and this could be renewed for another six months, one of the sources said.

The tanks, which store oil products, have already received initial cargoes, two of the sources said.

BPGIC and Total did not respond to a request for comment.

Global oil storage is filling swiftly as lockdowns to halt the spread of the coronavirus pandemic hammer consumption, driving down global demand for crude and its products, such as gasoline, diesel and jet fuel, by as much as 30%.

The Organization of Petroleum Exporting Countries, Russia and other allied producers have agreed to rein in supplies from May but the cuts amounting to about 10% of global crude production has still left the world awash with oil.

UAE-based BPGIC, established in 2013, plans to expand its storage capacity for crude and oil products to around 3.5 million cubic metres, from 1 million cubic metres now.

It is already one of the largest holders of storage assets in Fujairah, which is itself among the world’s largest bunkering hubs.

As MRC informed earlier, Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC