LG Chem raising acrylic acid capacity in Yeosu

MOSCOW (MRC) -- Sulzer has installed acrylic acid crystallization equipment at LG Chem's complex in Yeosu, South Korea, to accommodate higher production volumes of acrylic acid and associated superabsorbent polymers, according to Apic-online.

Sulzer's processes can remove impurities at low process temperatures, while avoiding the use of solvents and eliminating the risk of acrylic acid polymerization that can occur during distillation.

To realize the planned production increase to 160,000 t/y of high purity acrylic acid, Sulzer delivered the equipment onsite in less than 14 months and supported the commissioning and start-up activities.

As MRC wrote previously, LG Chem, a South Korean petrochemical major, reduced its operational rates of its cracker to around 90-95% starting January 2020 due to weaker economic fundamentals. Based in Daesan, South Korea, the cracker is able to produce 1.27 million tons/year of ethylene and 650,000 tons/year of propylene. The company increased capacity utilisation at this cracker to 100% on 10 March, 2020, in order to supply ethylene to Lotte Chemical.

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.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Crude oil futures rose during mid-morning trade in Asia Sept. 16 as sentiment was boosted by better-than-expected economic data from the US and China, said S&P Global.

At 10:41 am Singapore time (0300 GMT), ICE Brent November crude futures were up 48 cents/b (1.18%) from the Sept. 16 settle at USD41.01/b, while the NYMEX October light sweet crude contract was 54 cents/b (1.41%) higher at USD38.82/b.

"A string of better-than-expected economic data from the world's two largest oil consumers, the US and China, fanned optimism that the economic recovery was outpacing forecasts, triggering a bump in the current slump, which sent oil prices to their highest level in over a week," Stephen Innes, chief global markets strategist at AxiCorp, said in a Sept. 16 note.

Oil prices had moved higher overnight following a larger than expected decline in crude oil stocks in the US. Data from American Petroleum Institute showed US crude stocks plunged 9.5 million barrels in the week ended Sept. 11, almost five times larger than the 1.8 million-barrel decline expected by analysts surveyed by S&P Global on Sept. 14.

In addition, China's industrial production and retail sales surpassed analyst expectations, rising 5.6% and 0.5% respectively year on year in August, according to data released by the country's National Bureau of Statistics Sept. 15. "With the economic engines in the industrial heartlands in the US and China starting to fire on all cylinders, its temporarily offsetting the slump in crude prices that began in the closing week of the US driving season," Innes said.

Oil prices rose even as the International Energy Agency revised lower its 2020 oil demand outlook Sept. 15, a day after OPEC released a similar downward revision. The IEA now expects global oil demand to average 91.7 million b/d in 2020, down 300,000 b/d from its earlier forecast, and equating to a contraction of 8.4 million b/d on the year.

The agency cited renewed concerns around the coronavirus pandemic, pointing to the approaching winter in the Northern Hemisphere as being "uncharted territory" for the virus and posing huge challenges in key demand hubs. IEA sees oil demand climbing 5.5 million b/d in 2021 to around 97.1 million b/d. Elsewhere, the OPEC+ Joint Ministerial Monitoring Committee is set to meet Sept. 17, where a review is expected on production cut compliance.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

MOSCOW (MRC) -- US Gulf of Mexico producers have shut in roughly 27% of offshore oil and natural gas output ahead of the landfall of Hurricane Sally, which was slowly heading towards the Alabama coast Sept. 15, according to the US Bureau of Safety and Environmental Enforcement, as per S&P Global.

Producers have shut in 497,072 b/d of crude and 760 MMcf/d of gas output, 26.87% and 28.03% of total offshore US Gulf output, respectively. A total of 152 platforms and rigs were evacuated, according to BSEE.

Shell said Sept. 15 it shut in production at its Appomattox platform, while also curtailing oil volumes at its large Olympus, Mars and Ursa facilities. Chevron said it has shuttered production at its Blind Faith and Petronius platforms in the deepwater US Gulf. Murphy confirmed it evacuated multiple platforms and took production volumes offline, but a spokeswoman declined to specify which facilities were impacted.

In addition, BP has evacuated non-essential personnel from its Na Kika and Thunderhorse platforms.

Sally, which is expected to make landfall on the Mississippi-Alabama border early Sept. 16, is not expected to impact oil operations as heavily as Hurricane Laura did at the end of August. Laura managed to shutter nearly 85% of Gulf oil production — more than 1.5 million b/d — and 2.3 million b/d of refining capacity.

Phillips 66's 255,600 b/d Alliance refinery in Belle Chasse, Louisiana, remains shut in advance of Sally, although that region is no longer expected to feel much of an impact.

Chevron spokesman Sean Comey said the company's 356,400 b/d Pascagoula Refinery in Mississippi is still operating.

Shell said its Mobile refinery in Alabama plans to continue operating during Sally. However, only essential personnel will remain onsite.

Phillips 66 spokeswoman Melissa Ory said the company's 260,000 b/d Lake Charles refinery, which was shut ahead of Laura, could start up in two weeks after it has reliable electricity and operate while repairs are being made, which are expected to take several months. Electricity provider Entergy, which is rebuilding the destroyed transmission lines to the refinery and other facilities, said it hopes to restore power by the end of September.

Citgo Petroleum's 418,000 b/d Lake Charles refinery also was damaged by Laura and remains offline. All told, that is close to 1 million b/d of crude refining capacity currently offline in Louisiana.

The refinery outages have boosted refined products prices on the US Gulf Coast, with diesel price differentials reaching highs last seen more than six months ago.

Chevron also has shut its Empire and Fourchon terminals and related pipeline systems, the company said. The Louisiana Offshore Oil Port also suspended operations Sept. 13 at its marine terminal.

Likewise, the Cameron Highway Oil Pipeline System, known as CHOPS, has remained closed since service was disrupted by Laura. Flows on the system, which normally deliver to end points on the Texas Gulf Coast, are being redirected to the Poseidon or Auger pipelines for transportation to locations onshore in Louisiana, a Genesis Energy representative said.

CHOPS, the representative said, appears unlikely to resume normal operations before Oct. 1. An increase in Gulf of Mexico produced sour crude flows to the Louisiana area would provide more competition for Mars crude, which also delivers to end points in Louisiana, thus applying pressure on differentials for the grade.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased September list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East and Africa, as per the company's press release.

The price increase below is effective for orders shipped on or after September 15, 2020, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose by EUR250/mt for Europe, the Middle East & Africa.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on August 14, 2020, by EUR100/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

MOSCOW (MRC) -- Polyethylene (PE) imports into the Ukrainian market rose in the first eight months of 2020 by 2% year on year to 182,300 tonnes. Imports of all PE grades increased, with linear low density polyethylene (LLDPE) being the exception, according to MRC's DataScope report.

Last month's PE imports to Ukraine were slightly less than 23,800 tonnes, compared to 23,100 tonnes in July, local companies reduced their purchases of high density polyethylene (HDPE) because of higher prices in foreign markets. Thus, overall PE imports reached 182,300 tonnes in January-August 2020, compared to 178,400 tonnes a year earlier. Imports of all grades of ethylene polymers increased, with LLDPE, demand for which subsided in all consumption sectors, being the only exception.

The supply structure by PE grades looked the following way over the stated period.

Last month's HDPE imports reached 5,600 tonnes versus 6,600 tonnes in July, Ukrainian companies reduced their PE purchases because of high prices in foreign markets and weaker demand. Overall HDPE imports exceeded 66,500 tonnes in the eight months of 2020 versus 63,800 tonnes a year earlier.

August imports of low density polyethylene (LDPE) were slightly over 7,300 tonnes versus 7,900 tonnes a month earlier, producers from Azerbaijan and Russia reduced their export sales. Overall LDPE imports reached 54,500 tonnes over the stated period, compared to 52,200 tonnes a year earlier.

Last month's imports of linear low density polyethylene (LLDPE) were about 8,300 tonnes, compared to 7,100 tonnes in June, shipments of film grade LLDPE increased. Overall LLDPE imports reached 51,900 tonnes in January-August 2020, compared to 54,000 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled about 9,400 tonnes over the stated period, compared to 8,400 tonnes a year earlier.

MRC