SP Chemicals undertakes unscheduled shutdown at SM plant in China

MOSCOW (MRC) -- SP Chemicals has taken off-stream its styrene monomer (SM) plant owing to technical issues, according to Apic-online.

A Polymerupdate source in China informed that the company halted operations at the plant on August 4, 2020. The plant is likely to restart on August 8, 2020.

Located at Taixing in Jiangsu province of China, the plant has a production capacity of 320,000 mt/year.

As MRC reported earlier, SP Chemicals last conducted a scheduled turnaround at SM plant in Jiangsu province from 19 to 30 March, 2020.

SM is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 225,870 tonnes in the first half of 2020, down by 8% year on year. PS consumption increased by 2% year on year in June 2020, totalling 39,590 tonnes.

SP Chemicals, a Singapore-based company, is one of the largest ion-membrane chlor-alkali producer and aniline producer in China. The company's products include: aniline, caustic soda, chlorine, chlorobenzene, nitrochlorobenzene, nitrobenzene, vinyl chloride monomer (VCM). SP Chemicals plans to invest approximately RMB1.1 billion in facilities for the production of styrene monomer, an intermediate raw chemical used in making polystyrene plastics, protective coatings, polyesters and resins.
MRC

Ningxia Baofeng Energy resumes production at No. 1 MTO unit in China after turnaround

MOSCOW (MRC) -- Ningxia Baofeng Energy has brought on-stream its No.1 (methanol-to-olefins) MTO unit following a maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at this unit on August 2, 2020. The unit was shut for maintenance on 1 July, 2020.

Located at Yinchuan, Ningxia, China, the MTO unit has an ethylene and propylene production capacity of 300,000 mt/year each.

As MRC wrote previously, in June 2019, Johnson Matthey (JM) announced that Ningxia Baofeng Energy Group had "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China. The 6,600-t/d methanol unit, based on technology from JM, utilizes syngas feedstock and combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

INEOS Styrolution signs deal with UK firm to develop PS recycling

MOSCOW (MRC) -- INEOS Styrolution, the styrenics subsidiary of Ineos, has signed a joint development agreement with Recycling Technologies (Swindon, UK), a specialist plastic recycling technology provider, to advance the development of polystyrene (PS) recycling in Europe, according to Chemweek.

The agreement recognizes the commercial value of post-consumer plastic waste to prevent it being incinerated or ending up in landfill, the companies say.

Recycling Technologies has completed a detailed research and trial process with Styrolution. This included scientific research and processing of PS on Recycling Technologies’ Mark II test reactor, which has produced “excellent results,” the companies say. They will now further advance this depolymerization process based on Recycling Technologies’ fluidized-bed technology, currently used for mixed plastics, to adapt it for the commercial recycling of PS.

“Recycling Technologies’ fluidized-bed technology is a very promising technology to drive our joint agenda forward,” says Sven Riechers, vice president/business management, standard products, EMEA at Styrolution

“To date we have focused on the recycling of mixed plastic waste, this initiative will allow us to develop and expand our feedstock recycling technology solutions to address a new and important market, recycling polystyrene,” says Adrian Griffiths, CEO and founder of Recycling Technologies.

As MRC reported earlier, in January 2020, INEOS Styrolution, the global leader in styrenics, announced plans to build a world-scale acrylonitrile-butadiene-styrene (ABS) plant in Ningbo, China. The new production site will be adjacent to the recently acquired polystyrene plant in Ningbo. Thus, company plans to construct a green field ABS plant adjacent to the Ningbo PS site in the Zhejiang Province in Eastern China. Its annual capacity is planned to be at 600,000 tonnes. Construction is planned to start in 2020, completion is expected in 2023.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 225,870 tonnes in the first half of 2020, down by 8% year on year. PS consumption increased by 2% year on year in June 2020, totalling 39,590 tonnes.

INEOS Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 85 years of experience, INEOS Styrolution helps its customers succeed by offering the best possible solution, designed to give them a competitive edge in their markets. The company provides styrenic applications for many everyday products across a broad range of industries, including Automotive, Electronics, Household, Construction, Healthcare, Packaging and Toys/ Sports/ Leisure. In 2018, sales were at 5.4 billion euros. INEOS Styrolution employs approximately 3,500 people and operates 20 production sites in ten countries.
MRC

July crude stocks in China reach record high, dampens Q3 refinery feedstock demand

MOSCOW (MRC) -- China's crude stockpiles reached a record high level in July as refiners struggle to digest mass crude oil cargoes purchased during the second quarter, while domestic fuel consumption slowed amid widespread flooding across 23 provinces during the month, reported S&P Global.

As a result, the high inventory has dampened China's crude oil demand for delivery in the third quarter as it might take a while to destock, industry officials and market sources said July 29.

Data intelligence firm Kpler said China's crude inventory hit a fresh high of 889.35 million barrels in the week beginning July 20, comparing to 874.84 million barrels in a month ago and 766.21 million barrels in the same week a year ago.

The surge in inventory came as little surprise as Chinese refiners have been aggressively buying crude oil since late first quarter in order to take full advantage of low oil prices.

China's crude oil imports, through both shipping and pipelines, surged 34.4% year on year to hit a record high of 12.99 million b/d in June and this has caused serious port congestion along the Easter provinces, Platts previously reported.

Kpler data showed that China's crude seaborne imports in July hover at about 11.09 million b/d, steady from 11.18 million b/d in June.

Combined with stable domestic crude output at 3.91 million b/d over the first-half of 2020, China's overall crude supplies are set to rise over 16 million b/d in July, according to S&P Global Platts estimates.

Signs of waning Chinese crude oil demand and requirement for Q3 has directly hit price differentials for various OPEC+ export crude grades, as well as the Platts benchmark Dubai price structure.

Chinese refiners' top crude picks, Oman and ESPO Blend grades, have taken a hit recently with price differentials for the Middle Eastern and Russian grades falling to multi-week lows.

The spread between front-month Platts cash Dubai and same-month Dubai swap may also struggle to push above the USD2/b premium threshold in Q3 as Chinese refiners put the brakes on crude procurement activities, trading desk managers in Beijing, Hong Kong, Seoul and Singapore said.

The physical Dubai crude market structure has weakened, with the spread between front-month Platts cash Dubai and same-month Dubai swap averaging 80 cents/b to date in July, down from the June average of 84 cents/b, Platts data showed.

Meanwhile, crude throughput in July remained at a high level after hitting all-time-high of 14.14 million b/d in June, as state-run Sinopec and PetroChina's flagship refineries have resumed operations after their scheduled maintenance.

But the throughput levels are capped as the widespread flooding in about 23 provinces forced refineries, especially those located along the Yangtze river line, to lower their operation rates amid weakening consumer and industrial fuel consumption.

In total, at least 20 state-owned refineries across the country, which have no maintenance plan, have cut run rates in July by 1-17 percentage points from June. These comprise seven refineries under PetroChina, 12 from Sinopec, and Sinochem's only refinery Quanzhou Petrochemical, Platts data showed.

On the other hand, independent refineries' run rates declined about six percentage points from June amid narrowing margins and slowing sales.

Independent and state-owned non-major refineries account for about 31% of China's refining capacity, with the oil giants accounting for about 69%.

In addition, the volume of floating crude cargoes in Chinese waters remains at four times of the levels in normal days, despite easing slightly from the record high, port sources said on July 29.

There were 88.26 million barrels of crude on tankers idled in Chinese waters for seven or more days in the week beginning July 27, edging down from the all-time high of 88.4 million barrels seen in the week beginning June 29, Kpler said on July 29.

This means the volume of new arrivals still exceeds China's port handling capacity, leaving the cargoes to be discharged in August which will sustain China's crude imports and inventory levels in the month.

As MRC reported earlier, Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), a 50-50 joint venture of Sinopec and SABIC, completed the debottlenecking of its ethylene cracker on 11 July 2020, adding another 30,000 tons/year output to its current capacity. Followed the expansion, the Tianjin based plant become the country's largest compressor unit, producing 1.3 million tons of ethylene annually.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Saudi Basic Industries Corporation (Sabic) ranks among the world"s top petrochemical companies. The company is among the world"s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

ADNOC adds CNOOC as new partner in two offshore concessions

MOSCOW (MRC) -- Abu Dhabi National Oil Co. has added China National Offshore Oil Corp. (CNOOC) as a new partner in two offshore concessions as the UAE's biggest energy producer continues to court Asian oil and gas companies to invest in its assets, reported S&P Global.

ADNOC will transfer the rights in Lower Zakum, and Umm Shaif and Nasr offshore concessions from China National Petroleum Corp. (CNPC) to CNOOC, the national oil company said on July 27. ADNOC did not disclose the value of the transaction.

After the transfer of rights, CNOOC will hold a 4% interest in Lower Zakum and the same amount in Umm Shaif and Nasr concessions, while CNPC will keep a 6% stake in the assets. CNPC owned 10% of both concessions prior to the transfer.

"This agreement follows the signing of a comprehensive framework agreement between ADNOC and CNOOC in July 2019 to explore new opportunities for collaboration in both the upstream and downstream sectors as well as in liquefied natural gas," ADNOC said.

CNOOC joins an ONGC Videsh-led consortium (10%), INPEX Corp. (10%), CNPC (6%), Eni (5%), and Total (5%) as participants in the Lower Zakum concession. It is also a new partner to Eni (10%), Total (20%), and CNPC (6%) in the Umm Shaif and Nasr concession. ADNOC retains 60% of both concessions.

As MRC informed before, ADNOC Logistics and Services (ADNOC L&S), a subsidiary of ADNOC, said on Tuesday it had formed a shipping joint venture with Wanhua Chemical Group. The new company, AW Shipping Limited, is incorporated in Abu Dhabi Global Market (ADGM), a statement by ADNOC said.

We remind that in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC