Indian Oil broadens scope of Gujarat refinery expansion plans

Indian Oil broadens scope of Gujarat refinery expansion plans

MOSCOW (MRC) -- Indian Oil Corp. Ltd. (IOC) has approved the addition of a petrochemical and lube integration component to its previously announced and long-planned project that will expand crude oil processing capacity of its 13.7 million-tonne/year Koyali refinery at Vadodara in India’s western state of Gujarat, said OGJ.

Approved by the company’s board in late September, the revised 178.25-billion rupee expansion and petrochemical-lube integration project will increase crude processing capacity of the refinery by 4.3 million tpy to 18 million tpy as well as result in proposed production of 500,000 tpy of polypropylene and 235,000 tpy of lube oil base stock at the site, IOC said in filings to India’s National Stock Exchange Ltd. and BSE Ltd.

Inclusion of the petrochemical-lube integration component comes as part of IOC’s strategy to create a building block for future production of niche chemicals with a potential to increase petrochemical and specialty products integration index on incremental crude throughput to improve margins, according to the operator.

Previously slated for completion by yearend 2022, and aimed at improving the refinery’s energy performance as well as its ability to meet growing regional demand for finished products, the expansion and reconfiguration project also aims to equip the plant with greater flexibility to weather future disruptions in the supply-demand scenario and more closely integrate its production with downstream petrochemical units).

IOC—which during the last year completed its Bharat Stage (BS) 4 and BS 6-grade (equivalent to Euro 5 and Euro 6-quality) fuels to enable Gujarat to produce Bharat Stage (BS) 4 and BS 6-grade (equivalent to Euro 5 and Euro 6-quality) fuels in line with the Indian government’s Auto Fuel Policy 2025 calling for 100% BS 6-quality fuel production—now plans to fully commission the long-awaited expansion and accompanying BS 6 fuel upgrading projects at the refinery during 2024-25, the operator said in its recent 2019-20 annual report to investors.

The linked table presents an overview of the Gujarat refinery’s proposed major unit capacities—including additions and revamps—following the planned expansion.

As MRC informed earlier, IOC is expanding its petrochemical capacity by more than 70 per cent from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

Yansab earnings drop 8% in Q3 2020

MOSCOW (MRC) -- The net profits of Yanbu National Petrochemical Company (Yansab, Sabic's affiliate) fell by 7.8% year-on-year (YoY) over the third quarter (Q3) of 2020 to reach SAR 195.6 million, as per Chemweek.

The drop in net earnings during Q3 was ascribed to lower average sales prices for most products and higher production’s inputs average cost despite the growth in production and sales quantity, according to a bourse statement on Sunday.

Revenue for the three-month period ended on 30 September 2020 hit SAR 1.44 billion, a yearly rise of 1.3% when compared to SAR 1.42 billion in the same period in 2019.

In the first nine months of the year, the Saudi firm’s profits stood at SAR 344.9 million, posting a YoY decline of 62.5%.

As MRC reported earlier, Yansab shut its high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) units for maintenance in early February, 2018. The planned outage was to remain in force for around 6-7 weeks. Located in Yanbu, Saudi Arabia the HDPE and LLDPE units have a production capacity of 400,000 mt/year each.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for LLDPE.

Yansab is the most recent SABIC, (Saudi Basic Industries Corp), affiliate in Saudi Arabia, and will be the largest Sabic petrochemical complex. It will have an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT (metric-tons) of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene; 400,000 MT of polypropylene; 700,000 MT of ethylene glycol; 250,000 MT of benzene, xylene and toluene, and 100,000 MT of butene-1 and butene-2.
MRC

BorsodChem eyes third quarter 2021 startup for aniline plant in Hungary

MOSCOW (MRC) -- BorsodChem (Kazincbarcika, Hungary) is planning to start production at its new 200,000-metric ton/year aniline plant in Kazincbarcika during the third quarter of 2021, reported Chemweek with reference to market sources.

The facility in northern Hungary has received around EUR45 million (USD53 million) in state subsidies from the Hungarian government, which were approved by the European Commission in 2018. Production was initially scheduled to start in the second quarter of next year, but progress has been delayed due to COVID-19 and other “unforeseen issues,” according to market sources.

BorsodChem is owned by China’s Wanhua Chemical Group and currently sources imports of aniline from its parent company in China. With the construction of the new unit, BorsodChem is aiming for improved integration and less reliance on imports.

“Long term, Borsodchem is planning to stop importing aniline from Wanhua Chemical Group, but when exactly the producer will be self-sufficient is not clear,” sources say. The company usually carries out maintenance at its existing methylene di-para-phenylene isocyanate (MDI) and toluene diisocyanate (TDI) units during the summer months. The startup of operations at its new aniline plant is “more likely” after the second quarter of 2021, says one industry participant.

Aniline is used in the production of MDI. BorsodChem has a production capacity for 300,000 metric tons/year of MDI at its integrated complex in Kazincbarcika. It also produces TDI, chlorine, caustic soda, and polyvinyl chloride (PVC) at the complex.

“We are not entitled to share information on the new projects, except from the already public information that BorsodChem is planning to start the aniline plant in 2021, with a maximum capacity of 200,000 metric tons/year,” BorsodChem says.

As MRC informed earlier, BorsodChem shut its PVC plant in Kazincbarcika for a scheduled turnaround in the first week of September, 2020. The restart date of this plant with the capacity of 400,000 mt/year of PVC could not be ascertained.

According to MRC's ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

Wanhua-BorsodChem is a Hungarian chemical raw material manufacturing company headquartered in Kazincbarcika, Northern Hungary. It is the European member of the Wanhua Chemical Group. The company specializes in isocyanates (MDI, TDI), PVC and chlor-alkali (vinyl) businesses.[1] The main production site is located in Kazincbarcika, Hungary but the production is also supported by other European production capacities located in Ostrava, the Czech Republic and Kedzierzyn-Kozle, Poland. Several branch offices are available in Hungary, Belgium, the Czech Republic, Croatia, Italy and Poland.
MRC

Mitsubishi Chemical appoints Belgium-born Gilson as next CEO

MOSCOW (MRC) - Mitsubishi Chemical Holdings Corp said on Friday it has appointed Belgium-born Jean-Marc Gilson as its next chief executive officer and president, effective April 2021, Reuters.

Gilson, currently CEO of French plant-based ingredient maker Roquette Group, will join a short list of foreign CEOs at listed Japanese companies.

As MRC informed earlier, as part of portfolio management reforms based on the Mitsubishi Chemical Holdings Group’s medium-term management plan APTSIS 20, Mitsubishi Chemical Corporation has concluded agreements to transfer its polymer flocculant sales business to MT AquaPolymer, Inc. and Hymo Corporation.

As MRC informed earlier, Mitsubishi Chemical, a subsidiary of Mitsubishi Chemical Holdings Corporation, halted methyl methacrylate (MMA) production in Otake, Japan in mid-September for scheduled repairs. This production with a capacity of 110,000/tonne of MMA per year will be closed until mid-November.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS) used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, September total production of unmixed PVC grew to 86,000 tonnes from 75,500 tonnes a month earlier, SayanskKhimPlast and RusVinyl increased their capacity utilisation. Overall output of polymer were 718,500 tonnes in the first nine months of 2020 versus 720,500 tonnes a year earlier, only two producers raised their production volumes, and RusVinyl cut its output.

Mitsubishi Chemical, a Japanese integrated chemical company, was established on October 1, 1990 through the merger of Mitsubishi Kasei and Mitsubishi Petrochemical Co. Due to its wide range of activities, it is one of the ten leading chemical companies in the world.
MRC

Mitsui hires two crude, condensate traders in Singapore

Mitsui hires two crude, condensate traders in Singapore

MOSCOW (MRC) -- Mitsui Energy Trading Singapore, a unit of Japanese trading house Mitsui & Co , has hired two traders to trade crude oil and condensate, reported Reuters with reference to two sources with knowledge of the matter.

Wei Xiyu, previously a crude oil trader and charterer at Petrowin Resources, will join the company in November, according to the sources and Wei’s LinkedIn profile.

Andy Ang, formerly a crude trader with Hengyi Industries International Pte responsible for sourcing feedstock for Hengyi’s Brunei refinery, will join Mitsui in January next year, the sources said.

Mitsui declined to comment on the company’s personnel changes, a spokesman said.

Ang declined to comment. Wei did not immediately respond to a request for comment.

As MRC informed previously, Mitsui Chemicals has operated its naphtha cracker normally following a maintenance turnaround. The company resumed operations at the cracker on July 19, 2020. The cracker was shut for maintenance on June 11, 2020. Located in Osaka, Japan, the cracker has an ethylene capacity of 500,000 mt/year and a propylene capacity of 280,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC