BASF to provide technology to Chinese firm to produce aliphatic-aromatic copolyester

MOSCOW (MRC) -- BASF and Red Avenue New Materials Group have signed a joint agreement that grants Red Avenue New Materials Group the license to produce and sell certified compostable aliphatic-aromatic co-polyester (PBAT) according to high BASF quality standards, said the company.

For that purpose, Red Avenue New Materials Group will build a 60,000 metric tons PBAT plant in Shanghai, using BASF`s process technology in exchange for the access to raw material from this plant which BASF will sell as ecoflex®. Production at the new plant will start in 2022 and supply the market of biopolymers.

The global market for certified compostable and bio-based plastics is expected to grow by around 15 percent per year. With upcoming new laws and regulations in a lot of countries enforcing the use of compostable materials in packaging, agricultural mulch films and bag applications, the positive market development is expected to continue. “Our successful bio-polyester ecoflex® and the innovative ecovio® are already giving us significant participation in this growing market. The additional available PBAT capacities will substantially strengthen our position,” says Olivier Ubrich, head of BASF’s global business unit Specialty Polymers.

The BASF biopolymer ecoflex was introduced into the market in 1998 and is certified compostable in accordance with DIN EN 13432 and ASTM D6400. It is used as a blend with other renewable raw materials to compound ecovio®, BASF’s certified compostable biopolymer. The renewable raw material content means that ecovio® is also partly bio-based. Typical applications for ecovio® are organic waste bags, cling film, fruit and vegetable bags, as well as agricultural mulch films and food packaging applications. Studies show the advantages of ecovio® for production, packaging and shelf life as well as for the waste collection of food. These advantages are based on the material’s certified biodegradability in industrial and home composting as well as in soil: Food waste is reduced, nutrients are returned to the soil by means of greater volumes of compost and the accumulation of plastic in soil is avoided, thus closing the nutrient cycle to a Circular Economy.

As MRC reported earlier, BASF has recently announced the commercial launch of Fourtune which is a new Fluid Catalytic Cracking (FCC) catalyst product for gasoil feedstock. Fourtune is the latest product based on BASF’s Multiple Framework Topology (MFT) technology. It has been optimized to deliver superior butylene over propylene selectivity while maintaining catalyst activity and performance.

We remind that 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 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

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 EUR59 billion in 2019.
MRC

MOSCOW (MRC) -- Engineering, procurement and construction firm KBR has been awarded an energy efficiency opportunities study at Gladstone LNG (GLNG) in Australia by energy giant Santos, said Gasworld.

Building on KBR’s strong and successful portfolio within the LNG sector, the study seeks to explore opportunities to improve the overall energy efficiency of the plant and reduce CO2 emissions associated with the GLNG liquefaction facility.

KBR will assist GLNG in identifying and screening potential modifications to enhance the operational facility through improvements of thermal efficiency while also accounting for the associated reduction in carbon emissions.

"KBR has long been trusted by clients across the LNG sector and this study is indicative of KBR’s capabilities and skillsets across complex industrial assets, demonstrating our strategic commitment to sustainability and decarbonization and optimising operational efficiencies across the supply chain,” said Jay Ibrahim, KBR President, Energy Solutions.

This project will leverage the specialist energy, decarbonisation and process optimisation skills of KBR’s strategic and advisory consulting team.

As MRC informed erlier, KBR announced that it has been awarded a contract by Hainan Huasheng New Material Technology Co., Ltd. (Hainan Huasheng) to license Mitsubishi Chemical Corporation's (MCC) proprietary Bisphenol A (BPA) technology for a new plant in Dongfang City, Hainan Province, China. Under the terms of the contract, KBR will provide a Licensing and Basic Engineering Design (LBED) package to Hainan Huasheng for building a grassroots 240,000 tons per annum BPA plant. KBR will also provide commissioning, startup support, and training services for the project.

BPA is the main feedstock for the production of epoxy resins and polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled 78,500 tonnes in 2019, up by 15% year on year (68,100 tonnes a year earlier).

KBR globally licenses and designs plants with proprietary technologies, including phenol/acetone, BPA and polycarbonate processes. KBR's integrated phenolic offering provides advantages in raw material, utility, OPEX and maintenance costs.
MRC

MOSCOW (MRC) -- Chinese state oil giannt CNOOC has waived its right to pre-empt the sale of a major oil field farm-out deal in Uganda to France's Total, said S&P Global.

Total agreed last month to buy out the Ugandan assets of troubled Tullow Oil in a USD575-million deal that cleared up a tax dispute with the government hanging over the country's maiden oil project.

Under the terms of the deal, Total will acquire all of Tullow's existing 33.33% stake in each of the Lake Albert project licenses and the proposed export-pipeline system. CNOOC had pre-emption rights to acquire 50% of the assets on the same terms and conditions as Total.

With no further changes to the ownership stakes under the farm-out deal, Tullow said it expects the transaction to complete in the second half of 2020.

The companies had been waiting on the farm-down deal to kick-start the USD20-billion oil development which includes a USD3.55-billion, crude-export pipeline and the drilling of over 500 wells to produce 230,000 b/d.

Total is currently the operator of Block 1 and Block 1A and CNOOC is the operator of Block 3A, while Tullow operates Block 2.

In February, Total said it expected the FID to take place in "2020 or after" despite official hopes by the Ugandan government that the partners would approve the project in early 2020.

As MRC wrote before, in early May, 2018, China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

China National Offshore Oil Corporation (CNOOC), the largest offshore oil & gas producer in China. CNOOC businesses cover the main segments of oil & gas exploration and development, engineering & technical services, refining and marketing, natural gas and power generation, and financial services.

MRC

MOSCOW (MRC) -- Sinopec Maoming Petrochemical, part of Sinopec Corporation,has brought on-stream its No. 2 low density polyethylene (LDPE) unit in Guangdong, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the unit on May 22, 2020. The unit was shut for a brief maintenance on May 18, 2020.

Located at Guangdong in China, the No. 2 LDPE unit has a production capacity of 280,000 mt/year.

As MRC reported previously, Sinopec Qilu Petrochemical, another subsidiary of Sinopec, plans to shut the cracker unit in Tianjin in northeast China for scheduled repairs on 15 June, 2020. This cracking unit with a capacity of 900,000 tonnes of ethylene per year and 480,000 tonnes of propylene tons per year will be closed for scheduled repairs until 24 June, 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 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

MOSCOW (MRC) -- The British Plastics Federations Pipes Group believes during these unprecedented times, maintaining a robust supply chain for all the utilities is essential, but often goes unnoticed by the general public, said Britishplastics.

Continuity and safe supply are vital for the normal functioning of the UK utility network, and ongoing routine maintenance as well as emergency repairs help ensure an uninterrupted power and water supply source available 24/7. This applies to both the water and sewerage networks as well as to gas and electricity supplies.

The group says the UK plastic pressure and non-pressure pipe manufacturers have a key role to play in this, and as part of an important supply chain have adapted quickly from the initial lockdown shock to continue delivering a level of service which minimises risk to the utility sector.

Plastic pipe suppliers say they are well-prepared and able to provide the robustness that utilities need in the current climate by maintaining their own internal supply chain via forward planning and risk management through to instigating appropriate social distancing measures and safe working practices for those in the manufacturing, administration and distribution areas.

Caroline Ayres, BPF Pipes Group Director, said: "Our members have been working hard to ensure the supply chain for utilities continues to remain safe and secure, so that products required for emergency work in every utility sector as well as routine construction and maintenance are always available."

Where worker safety can be ensured, major scheduled utility infrastructure projects are continuing to some extent, and the recent lighter volumes of road traffic have helped in this. Pipe supplies are continuing to be provided, with operators adhering to strict social distancing rules. Factories where pipe materials and fittings are manufactured are maintaining a level of production to ensure that the supply chain for essential work and emergencies is not broken.

The support roles they are playing are vital to keep utilities able to function as close to normal as possible. Regarding site deliveries for example, pipe suppliers are photographing delivered items alongside a member of the contractor team as no signatures are currently possible, thus supporting new ways of working around social distancing protocols.

Builders’ merchants have different procedures for accepting deliveries and these are also being complied with by pipe manufacturers. The group concludes: “As there still remains uncertainty as to when and how the lockdown will be eased, it is essential that the flexible approach adopted by UK pipe manufacturers continues to reflect the ever changing landscape of the current situation in order to support the utility sectors, something BPF Pipes Group members are continuing to do. This is why it is essential that the utility supply chain remains stable, and BPF Pipes Group members are continuing to provide an important service."

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