COVID-19 - News digest as of 16.07.2020

1.PTTGCA moves forward on Ohio project as Daelim pulls out

MOSCOW (MRC) -- PTTGC (Bangkok) said it is moving forward with its much-delayed Ohio petrochemical project without its partner, Daelim Chemical USA (DCA), said Chemweek. Toasaporn Boonyapipat, PTTGC America (PTTGCA) president and CEO, said, “The Ohio petrochemical facility continues to be a top priority for PTTGC America. We are in the process of seeking a new partner whilst working toward a final investment decision [FID]. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley Region." In a joint statement issued by PTTGCA and DAC, the companies said, "The COVID-19 pandemic and recent oil price volatility have caused significant impacts on businesses around the world. As a result of these factors, the Ohio petrochemical complex project being developed by PTTGC America… and Daelim Chemical USA…[would have encountered] a delay of about six to nine months compared to the previously announced timeline…Under this market situation, PTTGCA and DCA have been assessing the impact for major investment projects to ensure that our portfolio is well positioned for the future of petrochemical Industry. While we continue to believe in the long-term strategic importance of this project, DCA has taken the difficult but necessary decision to withdraw as equity partner from the project.



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MOSCOW (MRC) -- Enterprise Products Partners (Houston, Texas) co-loaded olefins and natural gas liquids (NGLs) twice in July, the first time such cargoes have been loaded for export from the US, said Chemweek.

A VLGC (very large gas carrier) received propane and polymer-grade propylene (PGP) simultaneously into separate compartments at the Enterprise Houston Ship Channel terminal. Another vessel took on ethane and ethylene simultaneously at the company’s Morgan’s Point facility in Houston.

"This landmark accomplishment was made possible by our integrated midstream network, as well as the creativity and determination of our employees,” says AJ Teague, co-CEO of Enterprise’s general partner. “Loading ethylene and propylene on larger vessels from the US Gulf Coast substantially lowers freight costs and allows US Gulf Coast producers to supply distant markets, such as Asia, more competitively."

The Morgan’s Point terminal, a joint venture between Enterprise and Navigator Holdings (London), shipped its first cargo of ethylene in January. Earlier this month, Navigator said the terminal had gotten take-or-pay offtake commitments for about 95% of its 2.2-billion pounds/year (1-million metric tons/year) nameplate capacity.

As MRC informed earlier, Enterprise Products is expected to restart its propane dehydrogenation (PDH) unit in Mont Belvieu, Texas, from maintenance this week. This PDH unit has the capacity of 750,000 mt/y of propylene.

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.
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MOSOCW (MRC) -- Zhong Tian He Chuang, a joint venture of Sinopec and China Coal Energy Group, is likely to restart its No. 2 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. 2 LDPE unit for about 4 weeks, which was further extended to 7-8 weeks.

Located at Ordos in Inner Mongolia, China, the No. 2 LDPE unit has a production capacity of 120,000 mt/year.

Zhong Tian He Chuang also operates No. 1 LDPE unit with a production capacity of 250,000 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.
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MOSCOW (MRC) -- Dow Packaging and Specialty Plastics, Midland, Michigan, announced that Project ReflexNG has launched. The pilot program will aim to collect and recycle plastic scrap in Lagos, Nigeria, said Chemweek.

This is a part of Dow’s global goal to reduce, reuse or recycle 1 million metric tons of plastic by 2030. This project was made possible through partnerships with Omnik, RecyclePoints and the Lagos Business School Sustainability Centre. Through this, water sachets will be recycled to show how they can be collected and reused in new packaging. The goal is to keep about 300 million sachets out of the environment or landfills, while teaching more about sustainability.

Right now, it’s estimated that about 19 percent of Nigerians don’t have access to clean drinking water. Water sachets provide a less expensive source of drinking water, especially in urban areas. However, their use has led to more pollution and bad waste disposal. Often, water sachets aren’t included because waste pickers are paid by weight and the sachets are light.

RecyclePoints, a waste management company, will collect the sachets through kiosks. Returning them will have incentives like exchanges for groceries, cash and other needed items. The plan is to expand to include more collection partners later on.

After the sachets are collected, Omnik will process it into postconsumer recyclate (PCR) and then work with Dow to determine how the PCR can best be used again. Through this, the Lagos Business School’s Sustainability Centre will be a partner to help teach sustainability to small and medium waste businesses. The goal is to teach the right methods so long term sustainability is realistic.

"Currently, more than 90 percent of waste generated in Africa is disposed at uncontrolled dumpsites and landfills. Through our partnerships with Nigerian enterprises, academic institutions and local industry associations, we are making significant strides in addressing the crises of plastic waste and proving that the material does have intrinsic value,” says Adwoa Coleman, Dow’s Africa Sustainability and Advocacy Manager for Packaging and Specialty Plastics. “Together with our industry partners and in alignment with Nigeria’s vision for plastic waste management, we are creating new opportunities for local business entrepreneurs and their surrounding communities."

The pilot phase runs to February 2021 and after that Dow will scale up Project ReflexNG to recover even more flexible packaging. Dow is a global packaging and specialty plastics company focused innovation and leading business positions to achieve profitable growth. The company’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of science-based products and solutions for its customers. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people.

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

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