Seqens lifts force majeure on IPA

MOSCOW (MRC) -- Seqens (Ecully, France) lifted its force majeure on isopropyl alcohol (IPA) on Wednesday, company sources tell IHS Markit, as per Chemweek.

It declared force majeure on IPA production at Roussillon, France, in mid-March after the French government advised the company to supply IPA to end-users and distributors that supply hand sanitizer to hospitals following the outbreak of COVID-19. Seqens has not provided an explanation for lifting the force majeure.

Seqens is France's only dedicated producer of IPA with 60,000 metric tons/year of capacity at Roussillon. The company announced plans in April to add 50,000 metric tons/year of IPA capacity at the site for startup in 2021. It operates a phenol/acetone unit at Roussillon that supplies acetone to the IPA plant. Seqens cut phenol production in March due to low demand, limiting the company's ability to produce IPA.

IPA prices spiked in Europe during March and April because of rising demand for hand sanitizer, but fell €200-200/metric ton from their peak in April to €2,200-2,800/metric ton del. northwest Europe in late May, IHS Markit understands.

As MRC informed earlier, in late April, French acetone maker Seqens announced force majeure for deliveries from its Peage plant. The plant's capacity is 108 thousand tons of acetone per year. It was the third acetone producer in Europe to announce force majeure since the beginning of the year.

Acetone, along with phenol, is the main raw material component for the production of bisphenol A (BPA, by condensation), which, in turn, is used to produce polycarbonate (PC).

According to MRC's ScanPlast, in Russia the total estimated consumption of PC granules for the four months of 2020 (excluding imports and exports to Belarus) amounted to 30.5 thousand tons, which is 20% higher than last year (25.3 thousand tons).
MRC

Group welcomes Equinor plan to build new clean hydrogen plant at Saltend Chemicals

MOSCOW (MRC) -- Owner operators of the Saltend Chemicals Park, px Group, welcomed the news Equinor plans to build a world-leading clean hydrogen plant at the Park, which they believe can be the first step in the creation of a decarbonized industrial cluster in the Humber region, said Hydrocarbonprocessing.

Called Hydrogen to Humber Saltend (H2H Saltend), the new plant will produce hydrogen from natural gas in combination with carbon capture and storage (CCS). Initially the plant will allow industrial customers in the Saltend Chemicals Park to switch over to hydrogen and will reduce the amount of fossil fuels going into the Park’s power plant, thus cutting emissions by nearly 900,000 tons of CO2 per year.

H2H Saltend will in later phases have the potential to expand services to other industrial users in the Saltend Chemicals Park and across the Humber region. Locating the new plant in the Humber Estuary, commonly known as the UK’s Energy Estuary, puts the region in the forefront of the Government's ambitious plan to establish at least one decarbonized industrial cluster by 2030 and ultimately the world first net zero cluster by 2040.

Geoff Holmes, CEO of px Group, said: “This is a significant step forward in a transition to alternative energy and lower carbon production - we are delighted to be helping lead the charge." “px Group is committed to playing its part in this important development and shares the vision of creating a world beating decarbonized industrial cluster on the Humber Estuary. We’re looking forward to working and innovating alongside all the partners involved in this project."

H2H Saltend will be part of the Humber alliance’s application for public co-funding in the second phase of the Industrial Strategy Challenge Fund, which launched on 23 June 2020. A short distance away from the City of Hull, Saltend Chemicals Park is ideally placed to support the project. The Park provides the perfect base for the thriving super-cluster of truly sustainable world-scale chemicals and energy operations around the Humber.

Saltend Chemicals Park is a 370-acre industrial park and Top Tier COMAH site that produces over a million tons of chemicals every year and was acquired by px Group from BP Chemicals in 2018.

Established over 25 years ago, px Group is a leading, fully integrated infrastructure solutions business. Along with its industrial powerhouse Saltend Chemicals Park, px provides performance-driven solutions across power, onshore and offshore gas, chemical and industrial parks, waste processing, bioenergy, biofuels, fuel storage, and combined heat and power (CHP).

As MRC informed earlier, in March 2018, Norway’s Statoil announced plans to change its name to Equinor, reflecting its commitment to become a broad energy company rather than one focused only on oil. Equinor holds an 82-percent stake in the methanol plant, while ConocoPhillips owns the rest.

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.
MRC

Chinese industry federation joins the Alliance to End Plastic Waste

MOSCOW (MRC) -- The Alliance to End Plastic Waste (the Alliance) today announced a strategic partnership with China Petroleum and Chemical Industry Federation (CPCIF) to jointly promote the reduction and elimination of plastic waste in the natural environment in China, said Endplasticwaste.

The new partnership will bring together the Alliance’s 47 leading global member companies and the strengths of CPCIF to jointly formulate a strategic approach to identify and collaboratively implement local solutions in China to address the plastic waste challenge.

"No one country, company or community can solve the plastic waste challenge on their own. The Alliance believes in the collaboration of governments through public-private partnerships and long term commitment focused on acting locally through projects that address a city’s specific challenges,” said Jacob Duer, President and CEO, Alliance to End Plastic Waste. “We are excited to have CPCIF as our partner and endeavour to make a meaningful and valuable contribution to China’s national effort to eliminate plastic waste from leaking into the environment."

"Advocating green development and promoting circular economy is one of the key tasks of China’s petroleum and chemical industry,” said Li Shousheng, Chairman of China Petroleum and Chemical Industry Federation. “We firmly believe that since we invented plastic, we will also bound to find solutions to the plastic waste problem. CPCIF is willing to give full play to its industry advantages, work with stakeholders in the industry value chain and international partners, such as the Alliance, who shares the same vision as CPCIF, to jointly and effectively promote the plastic circular economy, improve and solve plastic waste problems.

In addition, the partnership will open up opportunities to prove and accelerate solutions that will unlock capital investments, which are necessary to tackle the plastic waste challenge in China.

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.
MRC

Asahimas to restart VCM lines in Indonesia after maintenance

MOSCOW (MRC) -- Indonesia’s PT Asahimas Chemical (ASC), part of Asahi Glass, is planning to restart its No. 2 vinyl chloride monomer (VCM) line in the first half of July after taking the unit off-stream on 19 May 2020 for unscheduled maintenance, reported CommoPlast with reference to market sources.

The No. 2 line has an annual capacity of 350,000 tons/year.

PT Asahimas Chemical expanded the No. 2 VCM line in early 2018 to boost the capacity from 100,000 tons/year to 350,000 tons/year.

PT Asahimas Chemical is owned 52.5% by Asahi Glass, 11.5% by Mitsubishi Corp, and the remaining belong to two other local companies.

As MRC reported earlier, PT Asahimas restarted its No. 2 VCM unit on December 2, 2019, following an unplanned outage. The unit remained off-line for about one week owing to technical issues.

VCM is a main feedstock for the production of polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia reached about 92,200 tonnes in the first five months of 2020, up by 10% year on year. At the same time, PVC imports to the country grew by 1%.

Asahi Glass Co., Ltd., more commonly known as AGC, is a global glass manufacturing company, headquartered in Tokyo. It is one of the core Mitsubishi companies.

PT Asahimas Chemical is owned 52.5% by Asahi Glass, 11.5% by Mitsubishi Corp. and 18% each by the local Rodamas and Ableman Finance.
MRC

Formosa expects gasoline exports to halve in 2020

MOSCOW (MRC) -- Taiwan’s Formosa Petrochemical Corp expects to cut its gasoline exports by about half in 2020 as the coronavirus crisis dents demand, a spokesman said, said Hydrocarbonprocessing.

Formosa’s monthly average volume is estimated to drop to about 100,000 tonnes a month from some 200,000 tonnes per month in 2019, KY Lin said, adding: “Domestic demand has picked up in June but overseas demand is not great and we do not want to be caught in a situation where we have to struggle with excess cargoes to export."

"We will keep our refinery throughput at about 80% of our capacity in July,” Lin said, unchanged from June. The refiner, operator of a 540,000 barrel per day refinery in Mailiao which is one of the 10 largest standalone refining plants in Asia, is in talks to sell around 30,000 tonnes of gasoline a month through an August-December contract.

It has recently sold a total of four cargoes for June to July loading from Mailiao. Formosa’s most recent year-long contract expired in March, but negative gasoline margins to crude had prompted it to delay the term talks, Lin said.

Although Asia’s gasoline margins have returned to positive territory since June 3, a resurgence of new coronavirus infections in several countries could stall demand recovery.

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.
MRC