Zhong Tian He Chuang to resume operations at No. 1 LDPE in Orodos on 23 July

MOSOCW (MRC) -- Zhong Tian He Chuang, a joint venture of Sinopec and China Coal Energy Group, is likely to restart its No. 1 low density polyethylene (LDPE) unit on 23 July, 2020, after a scheduled maintenance, as per Apic-online.

The company started maintenance at this unit in early-June, 2020.

The company has earlier planned turnaround at No. 1 LDPE unit for about 4 weeks, which was further extended to 7-8 weeks.

Located at Ordos in Inner Mongolia, China, the No. 1 LDPE unit has a production capacity of 250,000 mt/year.

Zhong Tian He Chuang also operates No. 2 LDPE unit with a production capacity of 120,000 mt/year at the same site.

As MRC reported earlier, Zhong Tian He Chuang took off-stream its No. 2 LDPE unit in early-April, 2019, owing to a technical glitch. Further details on duration of an unplanned outage could not be ascertained.

According to MRC's ScanPlast report, May estimated LDPE consumption in Russia decreased to 45,490 tonnes from 51,180 tonnes a month earlier. Kazanorgsintez reduced its PE output due to a shutdown for a scheduled turnaround. Russia's estimated LDPE consumption rose to 236,020 tonnes in January-May 2020, up by 3% year on year. Russian producers raised their production, and LDPE imports also increased.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.
MRC

MOSCOW (MRC) -- Enterprise Products is expected to restart its propane dehydrogenation (PDH) unit in Mont Belvieu, Texas, from maintenance this week, reported S&P Global with reference to sources.

This PDH unit has the capacity of 750,000 mt/y of propylene.

As MRC wrote before, Enterprise Products Partners LP (EPP), through one of its affiliates, has entered a long-term agreement with Marubeni Corp. of Japan, under which Marubeni will offtake polymer-grade propylene (PGP) produced from a second (PDH 2) plant currently under construction at EPP’s operations in Mont Belvieu, Tex., for supply to global customers. Concluded on June 16, the PGP offtake agreement is part of a long-term collaboration between EPP and Marubeni that also includes the export of liquefied ethylene, the first 25-million lb vessel of which loaded and sailed from EPP and Navigator Holdings Ltd.’s 50-50 joint venture marine terminal at Morgan’s Point, Tex., in early January, EPP and Marubeni said on June 30.

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

According to MRC's ScanPlast report, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- The European Commission has approved PKN Orlen’s acquisition of Grupa Lotos, said the Commission.

The approval is conditional on full compliance with a commitments package offered by PKN Orlen.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: "Access to fuels at competitive prices is important for businesses and consumers alike. Today, we can approve the proposed acquisition of Lotos by PKN Orlen because the extensive commitments offered by PKN Orlen will ensure that the relevant Polish markets remain open and competitive and that the merger will not lead to higher prices or less choice for fuels and related products for businesses and consumers in Poland and Czechia."

Decision follows an in-depth investigation of the proposed merger by the Commission, which combines PKN Orlen and Grupa Lotos (Lotos), two large Polish integrated oil and gas companies. They are both active in Poland, where they both own refineries, and also have activities in several other Central and Eastern European and Baltic countries.

During its in-depth investigation, the Commission gathered extensive information and feedback from competitors and customers of the merging companies.

The companies and Poland's state treasury agreed the deal in February 2018.

As MRC informed earlier, in H1 September 2019, Honeywell announced that PKN ORLEN had licensed the UOP MaxEne process, which can increase production of ethylene and aromatics and improve the flexibility of gasoline production. The project, for the PKN Orlen facility in Plock, Poland, currently is in the basic engineering stage. Honeywell UOP, a leading provider of technologies for the oil and gas industry, first commercialized the UOP MaxEne process in 2013. The process enables refiners and petrochemical producers to direct molecules within the naphtha feed to the processes that deliver the greatest value and improve yields of fuels and petrochemicals.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.
MRC

MOSCOW (MRC) -- Dow Chemical has begun scheduled maintenance at its propane dehydrogenation (PDH)unit in Freeport, Texas, reported S&P Global with reference to sources.

Thus, the planned turnaround at this PDH unit with the capacity of 750,000 mt/y of propylene started in the week ended July 10 and will last 45 days.

As MRC informed before, as part of the company’s current slate of low capital intensity, high-return incremental growth investments, Dow announced in August 2019 that it will retrofit proprietary fluidized catalytic dehydrogenation (FCDh) technology into one of its mixed-feed crackers in Plaquemine, Louisiana, to produce on-purpose propylene.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

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

According to MRC's ScanPlast report, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- China National Chemical Corp. has held talks with potential investors including China Investment Corp. for a stake sale in Syngenta Group Co. before an initial public offering of the Swiss agrochemicals company, said Bloomberg.

Bloomberg says ChemChina has also approached Silk Road Fund (Beijing) to invest in Syngenta. ChemChina aims to complete Syngenta’s pre-IPO financing before the end of this year, followed by a listing on Shanghai’s Star board for high-technology companies next year, Bloomberg says. Syngenta says it is focused on being ready for an IPO by mid-2022.

ChemChina bought Syngenta in 2017 for USD43 billion, making it China’s biggest foreign takeover to date. The main aim was to use Syngenta’s crop protection and seeds technologies to improve domestic agricultural output.

ChemChina last month officially launched the new Syngenta Group, which combined Syngenta AG, headquartered in Switzerland; Adama, based in Israel; and the agricultural businesses of Sinochem, based in China. The new entity has 48,000 employees in more than 100 countries and had sales of USD22.58 billion in 2019. The crop protection business had sales of USD10.499 billion; Adama, USD3.997 billion; Syngenta seeds, USD3.084 billion; and Syngenta Group China, USD4.996 billion. Syngenta is the global market leader in crop protection products, the global number three in seeds, the market leader in fertilizer in China, and the leading agriculture services provider in China. It operates 15 key production sites.

Meanwhile, the previously announced megamerger, which was to combine ChemChina with Sinochem to create one of the world’s largest chemical conglomerates, last year hit difficulties and the two companies reportedly abandoned those plans.

As MRC informed earlier, ChemChina plans to invest CNY50 billion in the construction of a cracking unit in Dongying, Shandong Province. The project is in a preliminary stage and no details were available at the moment. The company is also awaiting project approval from the government of Shandong. If approved by the government, ChemChina will build its first cracker.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

China National Chemical Corporation, commonly known as ChemChina, is a Chinese state-owned chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing.
MRC