West Virginia Methanol announced USD350 million investment for new plant

MOSCOW (MRC) -- West Virginia Methanol has selected a site in Pleasants County in northern West Virginia, USA for a USD350 million methanol plant, according to Kemicalinfo with reference to Washington Times.

The plant will produce 900 metric tons per day of high-purity methanol from natural gas in the Appalachian Basin.

West Virginia Methanol, with headquarters in Charleston, West Virginia, is working on permitting and final design details.

It expects to make a final investment decision on the project near Parkersburg, West Virginia, in the first half of 2021. Operations could begin as early as mid-2023, officials said.

The company said it will use a technology developed by Haldor Topsoe to produce methanol in three units at the plant.

The plant site has access to roads, railroad and river transportation and is near a major natural gas pipeline. Other required utilities are on site or nearby, the statement said.

Methanol is used in chemical industry production and is a mainstay in the automotive industry as a fuel blend. Its diverse use also includes the making of plastics and plywood.

As MRC reported earlier, in late April, 2020, the first phase of Connell Chemical Industry Ltd.'s 600 KTA MTO complex, a 300 KTA MTO plant, successfully started up and produced on-spec ethylene and propylene. This project is the first large-size chemical project brought online during period when China was in the process of restarting the economy while fighting COVID-19 pandemic. The MTO plant started feed-in at 8:18 AM on April 15, produced on-spec propylene at 7:00 AM on April 18, and produced on-spec ethylene at 4:00 AM on April 20.

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.
MRC

US oil refineries slow as gasoline demand softens

MOSCOW (MRC) -- By restricting crude processing and focusing on making gasoline, US petroleum refiners have made progress in reducing excess stocks of middle distillates such as diesel and heating oil, reported Reuters.

In the first half of October, however, the strategy has been challenged by softening domestic gasoline consumption, forcing them to make even deeper cuts in crude processing in an effort to stay on track.

The volume of gasoline supplied to domestic users fell in both the two most recent weeks, interrupting the previous recovery, according to estimates from the US Energy Information Administration.

Gasoline supplied to domestic users is now 9% below the previous five-year average, from a deficit of 4% at the start of the month.

In a sign of weak consumption, inventories increased by 2 million barrels last week, the largest one-week increase since the end of May, reversing the previous downward trend.

Gasoline refining margins have fallen to USD7 per barrel, from USD9 earlier in the month, reversing the previous upward trend, based on futures prices for deliveries in December.

Refiners have attempted to limit the build up in gasoline inventories by making even deeper reductions in crude throughput and gasoline production.

Crude processing was 16% below the five-year seasonal average last week, down from a deficit of 13% the previous week, and again reversing an improving trend.

The refiners' strategy has proved broadly successful, bringing gasoline stocks down to the five-year average, and gradually reducing the surplus of both crude and distillates.

But progress has been slow and total stocks outside the strategic petroleum reserve are still 113 million barrels or nearly 9% above the five-year average.

Globally, oil consumption has not recovered fast enough to absorb the increase of 2 million barrels per day in crude oil production scheduled by OPEC+ for the start of next year.

Saudi Arabia, Russia and their OPEC+ partners will almost certainly have to postpone the increase for at least three months until the start of April, or risk increasing stocks again.

As MRC informed earlier, global oil demand is forecast to peak by around 2040 because transport-fuel demand will decline steeply and economic growth will slow in the post-coronavirus world, the Institute of Energy Economics, Japan, said in its annual IEEJ Outlook 2021 on Oct. 15.

We remind that global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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.
MRC

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