Formosa runs RFCC units at 80-90% in August after fire at its No. 2 RDS unit

MOSCOW (MRC) -- Taiwan's Formosa Petrochemical Corporation Company (FPCC) is running their residual fluid catalytic crackers (RFCC) at 80-90% in August, following a fire at its number 2 residue desulfurization (RDS) unit in the morning of July 15, reported S&P Global.

There are two RFCC units, each with a propylene capacity of 330,000 mt/year, located near the RDS, which supplies feedstock to the RFCCs.

As MRC wrote before, FPCC has to shut its No. 2 naphtha cracker in Mailiao, Taiwan until further notice. Thus, this cracker was taken off-stream on 15 July after a fire broke out at RDS unit belong to FPCC at the same site earlier that day. The No. 2 RDS unit is designed to process 80,000 barrels per day, which is a part of 540,000 barrel per day oil refinery complex. The No. 2 cracker has an annual capacity of 1.03 million tons/year of ethylene, 515,000 tons/year of propylene, and 162,000 tons/year of butadiene.

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.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- ELIX Polymer is in plans to take off-stream its acrylonitrile-butadiene-styrene (ABS) plant for maintenance, as per Apic-online.

A Polymerupdate source in Europe informed that the company has schedule to start turnaround at the plant by end-August, 2020. The plant is likely to remain off-line for around 15 days.

Located in Tarragona, Spain, the plant has a production capacity of 180,000 mt/year.

As MRC reported previously, leading ABS producer ELIX Polymers is collaborating with a large group of companies within ClusterMAV, the Advanced Materials Cluster of Catalonia, Spain, in the fight against COVID-19. The partners are working in collaboration with the National Federation of Innovative Business Groups and Clusters (FENAEIC), which focuses on promoting collaboration between federations, clusters and their partners, within the European Cluster collaboration platform.

ELIX Polymers is donating a medical-grade material, ELIX ABS 3D-FC, in response to high demand from hospitals for medical masks, valves for ventilators and other medical devices. This product, developed for transformation into filaments for FFF (Fused Filament Fabrication) 3D printing, is now being used by Ford Motor Company (which has switched some of its production in automobiles to medical equipment), research organization AIMPLAS, and two Spanish plastics processors, PESL and SIIM.

We remind that in June 2018, ELIX Polymers, a thermoplastics manufacturer located in Tarragona's Poligono Sur industrial complex, announced a new investment amounting to EUR4 million, whose objective is to optimize its ABS powder production facilities. The company began executing this new project in 2018, which it continued to develop and consolidate throughout the year of 2019.

According to MRC's ScanPlast report, the estimated consumption decreased in January-June 2020 by 18% year on year in the Russian ABS sector, totalling 19,360 tonnes. 2,680 tonnes of ABS plastics were processed in Russia in June 2020.

ELIX Polymers is one of the most important manufacturers of ABS resins and derivatives in Europe, with 40 years of experience in engineering plastics and an installed capacity of 180,000/year from their plant in Tarragona (Spain) to the world. The operation starts in 1975, when the Tarragona ABS and SAN production plant was inaugurated.
MRC

MOSCOW (MRC) -- Eneos Corporation (formerly known as JXTG Nippon Oil & Energy) is on track to restart its fluid catalytic cracker (FCC) unit in Japan on 10 August, 2020, according to Apic-online.

The company halted operations at this unit on July 28, 2020.

Located at Sendai, Japan, the FCC unit has a propylene capacity of 100,000 mt/year.

As MRC reported earlier, JXTG Nippon Oil & Energy brought on-stream its FCC in Sendai on 2 August, 2019. The unit was shut for maintenance, on June 10, 2019.

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

According to MRC's DataScope report, 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.

Japan's largest refiner JXTG Nippon Oil & Energy was renamed ENEOS Corporation on 25 June, 2020, as part of a wider re-organization of the parent company JXTG Holdings. The move, which also involved renaming the parent company to ENEOS Holdings upon approval at its annual shareholders meeting in June 2020, comes as it strives to be a more comprehensive energy and materials company under its 2040 vision announced in May, 2019. JXTG Holdings was formed as a result of a merger between JX Holdings and TonenGeneral in April 2017. This followed the establishment of JX Holdings as a result of the merger between Nippon Oil and Nippon Mining Holdings in April 2010.
MRC

MOSCOW (MRC) -- GranBio, a 100% Brazilian industrial biotechnology company, and NextChem, Maire Tecnimont's subsidiary for energy transition announced a strategic partnership to achieve global leadership in the licensing of patented GranBio 2G Ethanol technology to produce cellulosic ethanol, said the company.

GranBio's 2G Ethanol technology converts lignocellulosic, non-food biomass to renewable, low carbon intensity biofuels. NextChem is partnering with GranBio to license this technology worldwide. The alliance combines GranBio's technology and knowledge in second generation biomass and biofuels with NextChem's engineering intelligence, EPC capabilities and Group global presence, to offer integrated services, feasibility studies, integration projects, engineering and construction of manufacturing plants around the world.

The technology developed by GranBio to produce 2G ethanol has already been implemented in its factory located in Sao Miguel dos Campos, in Alagoas, the first in the Southern Hemisphere dedicated to cellulosic ethanol.

"We will be pioneers in this business model, leading the development of the cellulosic ethanol industry globally. Some countries already recognize the renewable carbon premium; our flexible method allows the use all types of agricultural waste and energy crops as feedstocks, such as cane straw, miscanthus, and corn stover and even leftover wood such as pine and eucalyptus. With the Alliance with NextChem, we have the ambition to conquer a significant share of the available market: we have the security and reliability that our technology is very promising," says Paulo Nigro, CEO of GranBio.

"This partnership with GranBio improves our technological portfolio in biofuels with a flexible and profitable solution to produce ethanol, a globally used chemical with many established industrial applications and enormous potential," says Pierroberto Folgiero, CEO of NextChem and Maire Tecnimont. "GranBio's reference plant is the only one of this kind, on an industrial scale, in operation at a worldwide level. We are confident in a winning solution that we shall be able to industrialize everywhere, thanks to our worldwide presence and engineering capabilities."

As MRC informed earlier, Eni and NextChem, the Maire Tecnimont Group’s subsidiary for green chemistry, strengthen their partnership one year after their first agreement.

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.

GranBio, a 100% Brazilian industrial biotechnology company, controlled by GranInvestimentos S.A., creates solutions to transform biomass into renewable products.

Maire Tecnimont S.p.A., is the head company of an industrial group leader in the natural resources processing industry. Its subsidiary, NextChem operates in the field of technologies for the energy transition.
MRC

MOSCOW (MRC) -- MOL (Budapest, Hungary) has reported a 58% decline year on year (YOY) in its downstream EBITDA earnings to USD110 million for the second quarter on a current cost of supply (CCS) basis, due largely to negative refinery margins, despite a “resilient” contribution from its petrochemical activities, reported Chemweek.

The company, which does not break out its petchem earnings separately, says the quarter featured major operational challenges “with unprecedented price and margin movements.” The contribution from its petchems activities “remained resilient, as both margins and volumes held up reasonably well during the pandemic,” it says.

MOL’s integrated petchem margin averaged EUR431/metric ton (USD507/metric ton) in the quarter, up 2% YOY, with robust sales, especially in May when it recorded its highest ever sold volume, it says. The integrated petchem margin declined gradually during the quarter from a very high level in March and April as oil prices rose, “but the margin overall remained at a supportive level in both the second quarter and July,” it notes.

The company’s polyols project is now 65% complete, with all major prefabricated equipment on site and the transportation of all oversize equipment via river or sea completed, MOL says. “While some small delays are likely due to the pandemic, MOL remains fully committed to complete this flagship investment according to plans,” it says. Capital expenditure on the polyols project totaled USD101 million in the second quarter.

MOL’s total olefins production in the quarter was down 5% YOY at 504,000 metric tons, while total butadiene production plunged 62% to 23,000 metric tons. Total polymers production was virtually flat YOY at 301,000 metric tons. External total petchem sales output totaled 372,000 metric tons, up 6% on the prior-year quarter, with the company’s polymer products making up the majority of the total with 307,000 metric tons of sales, up 12% YOY.

MOL swung to a net loss for the group in the second quarter of USD142 million, from earnings of USD270 million a year earlier, on sales that declined 45% YOY to USD2.59 billion due to the pandemic and the worldwide economic crisis, it says. It has reconfirmed its 2020 capex guidance of up to USD1.5 billion.

As MRC informed before, in late March, 2020, Hungarian MOL Group started production of hand and surface sanitizers to offer protection against the coronavirus.

We remind that MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary) on 23 September 2019.

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.

MOL Hungarian Oil and Gas PLC is an integrated oil and gas company. The Company produces crude oil, petroleum products, bitumens, lubricants and natural gas. MOL owns and operates refineries, oil and gas pipelines, service stations, and natural gas storage facilities.
MRC