CITGO Lake Charles Update

MOSCOW (MRC) -- Nearly four weeks after Hurricane Laura made a direct hit on Lake Charles, La., the region continues working toward a full recovery. CITGO, also, continues making critical repairs at its Lake Charles refinery while power is gradually being restored to the area, according to Hydrocarbonprocessing.

Specifically, partial power has been restored to two of the three refinery substations and repairs to the damaged refinery equipment are progressing well. We are on track for a phased restart of operations with all units back in service by mid to late October.

While we continue working to repair the hardware, CITGO is working just as hard to help its people and the surrounding community recover from the devastating effects of this powerful storm. Thankfully, all of our employees managed safely through the hurricane, but many suffered damage to their property and homes. In the immediate aftermath we helped more than 300 employees with tarps for their homes and fuel for their tanks. We are also providing loans and grants for the affected employees and establishing a special fund to receive additional contributions from employees who wish to help their fellow employees rebuild.

Within the larger community, we made arrangements to provide fuel to emergency responders and hospitals as soon as the storm passed. As the clean-up began, we provided nearly 1,900 meals to first responders, the Calcasieu Parish Sherriff's department and the National Guard. Together with the United Way of Southwest Louisiana and Second Harvest Food Bank of Greater New Orleans and Acadiana, our Team CITGO volunteers helped with a drive-through food distribution event. And to aid longer term recovery efforts, we're also making charitable donations to Second Harvest and SBP, a national non-profit dedicated to helping homeowners impacted by disasters such as Hurricane Laura.

Our local marketers joined the effort as well. Partnering with Breaux Petroleum, CITGO provided Mystik Bar & Chain lubricant and Mystik JT-4 Lawn & Garden 2 Cycle engine oil to local fire departments and the Cajun Navy, a Louisiana-based volunteer rescue and recovery organization. These vital lubricants will be used for chainsaws, trimmers, and blowers for local utility and tree service companies as they provide critical support in the recovery effort.

In addition to helping the community, we are working hard to restore operations as soon as possible in a way that is safe for our people, the community and the environment. CITGO will continue to provide regular progress updates as we work to get the Lake Charles refinery restored and help the broader Lake Charles community get back on its feet.

As MRC reported previously, in early September, 2020, Citgo Petroleum Corp said it is not planning to idle its 418,000 barrel-per-day (bpd) Lake Charles, Louisiana, refinery damaged by Hurricane Laura. Rumors have circulated since Laura’s passage over the Lake Charles area on Aug. 27 that Citgo was considering shutting the refinery for an indefinite period because of the extent of the damage and continuing low demand for motor fuels in the COVID-19 pandemic.

We remind that in the first week of July, 2020, Citgo restarted the large gasoline-producing fluid catalytic cracker at its 167,500-barrel-per-day (bpd) Corpus Christi, Texas, refinery.

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

According to MRC's ScanPlast report, 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) -- PetroChina Co Ltd's subsidiary refinery in northeast China's Daqing has started processing its first Russian crude oil transported via pipeline, after completion of plant upgrade, according to a company report posted on its social media platform on Tuesday, as per Reuters.

Daqing Petrochemical Corp is expected to process 3.5 MM tonnes of Russian oil annually, transported through the East Siberia Pacific Ocean Pipeline.

Daqing completed in late August an expansion programme that boosted its annual processing capacity to 10 MM tonnes(200,000 barrels per day) from previously 6.5 MM tonnes, the report said.

The Daqing plant previously processed mainly medium sweet crude from Daqing oilfield, one of China's oldest producers that has seen reserves decline sharply after decades of pumping.

As MRC wrote previously, PetroChina Ningxia PC, part of PetroChina, brought on-stream its polypropylene (PP) plant following a turnaround. The company resumed operations at the plant on August 18, 2020. The plant was shut for maintenance on July 1, 2020. Located at Yinchuan, China, the PP plant has a production capacity of 110,000 mt/year.

Propylene is the main feedstock for the production of PP.

According to MRC's ScanPlast report, 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.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC

MOSCOW (MRC) -- Chemical railcar traffic in North America held stable during the week ended 19 September, reported Chemweek with reference to data released by the Association of American Railroads (AAR).

Volume totaled 42,933 carloads, up 2.7% from the previous week and down 3.8% year over year (YOY). On a four-week basis, volume was down 3.4% from 2019 and 5.8% from 2018, improving over respective shortfalls of 3.8% and 6.6% recorded the previous week (chart). For the year to date, chemical railcar traffic in North America was down 4.5% from 2019 and 5.8% from 2018, equal to the previous week’s figures.

Chemical railcar traffic in the US contributed 29,931 carloads to the total, down 7.3% YOY and up 2.4% from the previous week. For the year to date, US chemical railcar traffic is down 5.0%.

Canadian chemical rail traffic totaled 12,136 carloads, up 6.1% YOY and up 4.4% from the previous week. For the year to date, Canadian chemical railcar traffic is down 3.1%.

Chemical railcar traffic in Mexico totaled 866 carloads, a YOY decrease of 6.7% and a sequential decrease of 8.4%. For the year to date, Mexican chemical railcar traffic is down 5.7%.

As MRC informed before, in early July, 2020, Dow agreed to sell the rail infrastructure assets and related equipment at six major sites in North America to Watco Companies (Pittsburg, Kansas), a transportation services company operating in North America and Australia. Dow expects the deal, which is slated to close in the fourth quarter, to yield over USD310 million in cash. Watco will provide Dow with rail services from the assets under a long-term agreement.

We remind that Dow Chemical restarted three polyethylene (PE) plants it shut in April on improving demand after widespread economic shocks in April and May, confirmed a company spokeswoman July 23.

As MRC wrote before, Russia"s output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased in the first eight months of 2020 by 5.3% year on year, according to Rosstat"s data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-July output.

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) -- Evonik's ELUCARE brand will be gradually expanded over the next few months to become home to a wide range of oxo alcohols, said the company.

These serve as high-quality intermediates to produce surfactants, special esters, lubricants, resins and special solvents. "ELUCARE embodies what C4 specialties stand for: a consistent focus on market and customer requirements," says Christian Bierhaus, head of Marketing and Sales at Performance Intermediates.

As the first product in the new brand family, Evonik is now marketing the C4 specialty ITDA under the brand name ELUCARE TD. The clear strategy of the PI business line: to be the first point of contact for customers, in the long term, when it comes to C4 specialties.

"With the introduction of the ELUCARE TD brand, we are once again creating the future of C4Chemistry together with our customers, while demonstrating that we can be relied on," emphasizes Hinnerk Becker, market segment manager for C4 specialties at PI. "The demand for ITDA has been growing steadily for years. With our capacity expansion at the end of 2019, we reacted to this growth early on. This is how we can support the growth strategies of our customers in a long-term, consistent and reliable manner."

PI ensures the long-term and reliable availability of ELUCARE TD by means of a sustainable and complete integration of the corresponding raw material flows into the C4 network at the Marl and Antwerp production sites. ELUCARE® TD is distributed worldwide via Evonik's regional platforms.

ELUCARE TD (ITDA) is a high-purity C13 alcohol and an important intermediate to produce surface-active substances, so-called surfactants (ethoxylates) and special esters. ITDA ethoxylates are used in high quality applications like homecare products or I&I cleaners. ITDA special esters are used in special lubricant formulations as well as in high-quality paints and coatings.

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of EUR13.1 billion and an operating profit (adjusted EBITDA) of EUR2.15 billion in 2019. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. More than 32,000 employees work together for a common purpose: We want to improve life, day by day.

As MRC reported before, Dow and Evonik have recently entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

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

According to MRC's ScanPlast report, Russian plants' total PP production grew to 158,800 tonnes in July, compared to 149,400 tonnes a month earlier; ZapSibNeftekhim, Nizhnekamskneftekhim and Poliom increased their capacity utilisation. Russia"s overall PP production reached 1,063,700 tonnes in January-July 2020, compared to 854,500 tonnes a year earlier. Five out of eight producers raised their capacity utilisation, with a new producer - ZapSibNeftekhim - accounting for the main increase in the output.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
MRC

MOSCOW (MRC) -- BASF-YPC Co., Ltd. (BYC), a 50-50 joint venture between BASF and SINOPEC, has expanded the production capacity of neopentylglycol (NPG) at the state-of-the-art Verbund site in Nanjing, China, as per BASF's press release.

The plant was established in 2015 with an annual capacity of 40,000 metric tons. With the completion of the expansion in August 2020, the annual capacity will reach 80,000 metric tons.

“The new expansion marks another milestone of long-standing partnership between SINOPEC and BASF. It reinforces our commitment to enhance local production and respond to the growing needs of Chinese customers for environmentally friendly powder coatings,” said Dr. Stephan Kothrade, President and Chairman Greater China, BASF.

“SINOPEC and BASF have been working closely together for many years. The start-up of the NPG expansion plant reflects a better cooperative relationship between the two parties and is also in line with the Chinese government's steer towards improving industrial restructuring and transformation to fulfil market demand with high-quality products,” said Mr. Hong Jianqiao, Chairman of Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.

“With NPG production facilities in Asia, Europe and North America, BASF is one of the world’s leading NPG manufacturers with decades of experience in manufacturing and supplying NPG to our customers across a broad range of industries. Customers will benefit from our regional presence, innovation strength and supply reliability they have come to know and trust,” said Vasilios Galanos, Senior Vice President, BASF Intermediates Asia Pacific.

NPG is a unique polyalcohol offering superior performance in many end-use applications, especially in the production of polyester and alkyd resins for various coatings and plastics due to its high chemical and thermal stability. NPG has proven itself in many applications, especially in the production of polyester and alkyd resins for various coatings and plastics. An essential field of application is powder coatings, which prove particularly successful in the construction industry, as well as in the coating of household appliances. BASF has NPG production sites in Ludwigshafen (Germany), Freeport (USA), Nanjing (China) and Jilin (China).

As MRC reported earlier, BASF-YPC undertook a planned shutdown at its polystyrene (PS) unit in China on May 5, 2020. The unit restarted on June 20, 2020. Located in Jiangsu, China, the PS unit a production capacity of 200,000 mt/year.

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.

BASF-YPC Company Limited (BASF-YPC) is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of approximately USD5.5 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually. The products serve the rapid-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing. All BASF-YPC plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and to minimize the environmental impact. BASF-YPC posted sales of approximately CNY 19.6 billion in 2019 and employed 1,942 people as of the end of the year.
MRC