Stepan to acquire surfactant business in Mexico from Clariant

MOSCOW (MRC) -- Stepan Co. says that, through subsidiaries in Mexico, it has entered into an agreement with Clariant (Mexico) to acquire Clariant's anionic surfactant business and associated sulfation equipment at Santa Clara, Mexico, reported Chemweek.

The transaction is expected to close in the third quarter of 2020, subject to regulatory approvals and satisfaction of certain other requirements. Financial terms of the transaction were not disclosed.

"The purchase of Clariant's surfactant business in Mexico will enhance our ability to support our customers' growth in the Mexican consumer and functional markets for surfactants," said F. Quinn Stepan, Jr., chairman, president and CEO of Stepan. "We plan to transition manufacturing from Clariant's Santa Clara site to Stepan's Mexican sites located in Ecatepec and Matamoros over the coming months."

As MRC reported earlier, in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

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.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

Thyssenkrupp and BASF sign development agreement for STAR propane dehydrogenation technology

MOSCOW (MRC) -- Thyssenkrupp and BASF said that they have signed a joint development agreement to expand their cooperation on the STAR dehydrogenation process, said Chemweek.

The proprietary technology developed by Thyssenkrupp produces propylene from propane feedstock, or iso-butylene from iso-butane feedstock. Under the collaboration, the partners aim to significantly increase the resource and energy efficiency through targeted improvements in catalyst and plant design. Thyssenkrupp will focus on process and BASF on catalyst development. The aim is to lower plant investment and operating costs and to reduce CO2 emissions in the in the future.

"…This cooperation combines BASF’s expertise as a world-leading catalyst manufacturer with our plant engineering competence,” says Uwe Boltersdorf, head of chemical & process technologies sales at Thyssenkrupp. “With our combined knowhow we can further reduce consumption of energy and resources. New catalyst shapes will enable a smaller reformer design, which also lowers the investment costs of dehydrogenation plants."

Detlef Ruff, senior vice president/process catalysts at BASF, says, “The cooperation between BASF and Thyssenkrupp is another example of our successful approach to collaboration with engineering companies and technology providers. We contribute our unique knowhow as a world-leading catalyst manufacturer, and together with our partners, drive the implementation of new processes and innovative future technologies."

"We will specifically address topics like reducing precious metal content. This lowers catalyst costs and additionally reduces feedstock and energy consumption through increased selectivity," said Adrian Steinmetz, vice president/global chemical catalysts & adsorbents at BASF.

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 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.

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

US weekly propylene supply gain beats expectations

MOSCOW (MRC) -- US propane and propylene stocks rose by 3.5 million bbl, to 80.3 million bbl last week, reported Chemweek with reference to the Energy Information Administration's (EIA) latest Weekly Petroleum Status Report.

An OPIS survey of analysts, traders, brokers and other market participants forecast an average propane and propylene stock build of 2.24 million bbl. Year-on-year (YOY), stocks have risen by nearly 10%.

Exports were down by 432,000 b/d to 901,000 b/d. YOY, they have fallen by 6.8%.

Imports decreased by 51,000 b/d to 58,000 b/d. YOY, they have fallen by 39.6%.

Propane and propylene product supplied rose by 266,000 n/d to 913,000 b/d. YOY, they have fallen by 27.1%.

Refiner, blender, and gas plant net production increased by 71,000 b/d to 2.26 million b/d. YOY, they have risen by 0.6%.

Stocks in Gulf Coast (PADD 3) region rose by 2.2 million bbl to 48.2 million bbl week-over-week. YOY, they have risen by 13.7%.

The Midwest (PADD 2) rose by 800,000 bbl to 20.1 million bbl. YOY, they have fallen by 11.1%. PADD 1 inventories rose by 600,000 bbl to 8.2 million bbl. YOY, they have risen by 64%. PADDs 4 and 5 inventories fell by 100,000 bbl to 3.8 million bbl. YOY, they have risen by 1.9%.

As MRC informed earlier, Dow Chemical has begun scheduled maintenance at its propane dehydrogenation (PDH)unit in Freeport, Texas. 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.

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

NNPC fired 850 workers, many from refineries

MOSCOW (MRC) -- The Nigerian National Petroleum Corporation (NNPC) has fired 850 workers, many of them from refineries, amidst the coronavirus pandemic, an oil union said, said Hydrocarbonprocessing.

The workers are both skilled and unskilled contractors, including technicians who helped maintain Nigeria’s oil refineries, said Lumumba Okugbawa, general secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria, speaking on the phone.

The NNPC did not immediately respond to requests for comment. Layoffs in Nigeria’s oil sector are a tense issue, with frequent stand-offs between the NNPC and unions. Nigeria is dependent on crude sales to prop up its struggling economy, now at risk of its worst recession in four decades due to the coronavirus and the pandemic tanking global oil prices.

Yet Nigeria’s refineries are barely operational. Almost all of the country’s fuel supply is processed overseas at great cost, despite Nigeria being Africa’s largest crude producer. In May, the NNPC said it had more than 6,600 staff.

As MRC informed earlier, NNPC has issued a crude-for-product swap tender, the company said. The Direct Sale Direct Purchase (DSDP) tender document did not specify the start date or the quantities involved but said the arrangement would be for one year. The tender is set to close on May 2 at noon (1100 GMT), NNPC said on its official Twitter account. Crude-for-product swap contracts are the country’s main avenue to meet the bulk of its gasoline and gasoil needs.

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

McDermott awarded next phase of Azikel Refinery project

MOSCOW (MRC) -- McDermott International Ltd. announced it has been awarded a large engineering and procurement contract from Azikel Petroleum Ltd. for the modular 12,000 bpd Hydro-Skimming Refinery project, said Hydrocarbonprocessing.

The facility will be located in Yenagoa, Bayelsa State within the Federal Republic of Nigeria. The scope of the award includes the detailed engineering and design of the inside battery limits (ISBL) modular refinery. It also includes supply of equipment and all tagged items within the ISBL.

McDermott has been working with Azikel Petroleum Ltd. since 2018, most recently on an extended Front-End Engineering Design (FEED). This next phase of the award will utilize McDermott's extensive modularization experience and expertise. The design capitalizes on McDermott's world-class refining process engineering abilities.

"McDermott has been an integral part of what is one of the few refineries to be built in Nigeria and we look forward to expanding our presence further by delivering the next phase of this important project," said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa. "Our decades of modularization experience makes us uniquely positioned to deliver this scope and the team has done a great job of developing a simple process design that meets all of Azikel's product specification requirements."

The engineering and design are scheduled to be executed from McDermott's office in Tyler, Texas with support from its Mexico City office. Equipment will be sourced from both US domestic and international suppliers. Azikel is building this grassroots facility and has already done extensive work to prepare the site for construction. The early work includes site reclamation and backfilling, completion of roads, perimeter wall, drainage and security gates. Early work also includes construction of the administrative, maintenance and terminal operator buildings as well as the erection of the feedstock tanks. Construction is also underway for a 656-foot (200 meter) pier with shoreline protection. The pier will be used for the delivery of the refinery modules and other equipment.

The President of Azikel Group, Dr. Eruani Azibapu Godbless, stated that the award was based on the high level of confidence and professionalism exhibited by McDermott and he expects the project will be delivered on schedule and within budget. He further stated that the Azikel Refinery is a flagship for Nigeria as it is the first hydroskimming refinery to advance to this level of achievement in the modular refinery regime.

Azikel Petroleum Limited is a subsidiary of the Azikel Group and the progenitor of the Azikel Refinery Project. The contract award will be reflected in McDermott's second quarter 2020 backlog.

As MRC informed earlier, Haldia Petrochemicals (HPL), a flagship company of The Chatt­erjee Group (TCG), alo­ng with its international partner Rhone Capital has acquired US-based Lummus Technology at an enterprise value (EV) of USD2.725 billion (around Rs 20,590 crore) from McDermott International. In the joint acquisition, HPL’s share is at 57 per cent, the balance would be held by Rhone Capital. Under the new dispensation, Lummus Technology wou­ld function as a ‘standalone’ autonomous entity.

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