Arlanxeo to cease production at plant in Singapore

MOSCOW (MRC) -- Arlanxeo will cease production operations at its 140,000 tonne/year neodymium butadiene rubber (Nd-BR) plant at Jurong Island in Singapore by the end of 2020, said the company in a statement sent to customers.

The move is part of the company's response to "changes in the rubber industry" and will help optimise resources and capabilities in its global Nd-BR production network. The company's Buna Nd-BR products will continue to be part of ARLANXEO's product offerings to markets globally, the company said.

As MRC informed earlier, Arlanxeo Holding B.V. closed its Keltan EPDM plant in Orange in the second quarter of 2020. Arlanxeo said it was closing the Orange facility as part of a realignment of its Keltan production network to improve competitiveness and harmonize technology platforms across the Keltan portfolio.

As per MRC, Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight months of 2020. 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. August production of benzene fell to 102,000 tonnes from 95,300 tonnes a month earlier due to scheduled shutdowns for maintenance at several producers. Overall output of this product reached 918,300 tonnes over the stated period, down by 0.9% year on year.

Nd-BR is used in high-performance tire walls and threads as well as in the production of golf balls, running shoes and conveyor belts.
MRC

Polyplastics to build COC polymers plant in Leuna, Germany

MOSCOW (MRC) -- Polyplastics (Tokyo, Japan) says it plans to build a 20,000-metric tons/year cyclic olefin copolymer (COC) production facility in Leuna, Germany, with the plant scheduled to be operational by mid-2023, reported Chemweek.

No investment figure has been given.

The plant will be operated by its fully owned subsidiary Topas Advanced Polymers and will more than double the company’s current COC output. Polyplastics already has an existing COC production plant in Oberhausen, Germany, but says the new facility will help meeting growing demand worldwide for COC polymers.

Since the plant at Oberhausen began operations in 2000, a range of applications for the company’s COC polymer resins have been developed, including for medical, healthcare, optics, packaging, and electronics applications, it says. Monomaterial structures based on polyethylene (PE), enhanced with COC, are easier to recycle than other multimaterial solutions, it adds.

As MRC wrote before, Polyplastics Co., Ltd. announced on January 21 its decision to expand its engineering plastics compound plant in Malaysia operated by Polyplastics Asia Pacific Sdn. Bhd. (PAP), a wholly owned local subsidiary headquartered in Kuala Lumpur.

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.

The Polyplastics Group, as a top supplier of engineering plastics whose Fuji Plant in Japan; Dafa Plant in Kaohsiung, Taiwan; and Nantong Plant in mainlandChina have a combined yearly compound production capacity of 150,000 tons, will continue to make every effort to provide customers with a stable supply of products in the aim of further increasing customer satisfaction.
MRC

Canadian company Inter to sell European assets to raise money for its petrochemical unit in Alberta

MOSCOW (MRC) -- Canada's Inter Pipeline Ltd said that it will sell a major portion of its European bulk liquid storage business to Spain-based CLH Group for 420 million pounds (USD537.73 million), said Hydrocarbonprocessing.

Proceeds from the sale will be used to cut debt, improve the balance sheet and help with Inter's spending plans, including on its Heartland Petrochemical Complex in Alberta, the company said.

The pipeline operator had halted the sale in March, stating potential buyers of the business had been significantly affected by the COVID-19 pandemic and that it was not the right time to pursue a major pan-European transaction.

The sale includes all of Inter's bulk liquid storage and handling assets in the UK, Ireland, the Netherlands and Germany, totaling 15 storage terminals and about 18 million barrels of storage capacity.

After the close of the deal, expected in fourth quarter, Inter will retain its 8 terminals in Sweden and Denmark comprising about 19 million barrels of aggregate storage capacity.

As MRC informed erlier, Inter Pipeline Ltd. has announced that its board of directors has authorized the construction of a world-scale integrated propane dehydrogenation (PDH) and polypropylene (PP) plant. The facilities, collectively referred to as the Heartland Petrochemical Complex, are estimated to cost USD3.5 B in aggregate and will be located in Strathcona County, Alberta near Inter Pipeline’s Redwater Olefinic Fractionator.

Ethylene and propylene are feedstocks for producing polyethylene (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

Messer to invest USD41 million in new air separation unit at Tarragona, Spain

MOSCOW (MRC) -- Messer Group (Bad Soden, Germany), the largest family-owned industrial gases producer, has announced plans to invest more than EUR35 million (USD41 million) to build a new air separation plant in Tarragona, Spain, reported Chemweek.

Commissioning is scheduled for December 2021.

The facility will be located at Vilaseca in the south of the industrial chemical complex at Tarragona and have the capacity to produce 2,400 metric tons/day of oxygen, nitrogen, and argon, it says. The plant will also be certified for the production of medical gases. It will be connected to Messer’s existing pipeline network to meet growing demand for oxygen and nitrogen by chemical companies in Tarragona, it says. Manufacturing companies in the region will also be supplied with gases transported by tankers and cylinders, it adds.

Around 200 people will be employed on the project during the planning and construction phase, with more than 20 permanent employees on site after completion, according to Messer.

The investment will ensure “a reliable and flexible supply” to the company's customers and optimize its own processes by using the most advanced technology, says Stefan Messer, Messer’s owner and CEO.

As MRC informed before, Spanish oil and gas company Repsol plans to invest EUR80 million (USD90 million) to build two new plants in the Bilbao area as part of efforts reduce its carbon emissions. Repsol will build what it said would be one of the world’s biggest net-zero emissions fuel facilities, based on green hydrogen generated with renewable energy and carbon dioxide captured at the Petronor refinery in northern Spain, in which it owns a majority stake.

We remind that Repsol's refinery at Puertollano in central Spain will carry out an upgrade of its olefins unit. The modernization will be a part of planned maintenance of the cracker and chemical derivative plants at the end of 2020.

Ethylene and propylene are feedstocks for producing polyethylene (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

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