Celanese extends terminal service contract with Dragon Crown for Nanjing integrated chemical complex

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announced that its subsidiary, Celanese (Nanjing) Chemical Co. Ltd., has recently extended its long-term contract with Nanjing Dragon Crown Liquid Chemical Terminal Co. Ltd., for providing terminal services to its integrated chemical facility in the Nanjing Chemical Industrial Park, Nanjing City, in eastern China (Jiangsu Province), as per the company's press release.

Financial details of the contract were not disclosed.

Reliable terminal services are a key component of a highly efficient end-to-end supply chain. Extending this critical contract will provide Celanese’s Nanjing manufacturing facility with ongoing and reliable terminal services for the company’s acetyls chemical products.

“Dragon Crown has consistently provided Celanese with safe, compliant and reliable terminal services in China for more than a decade,” said John Fotheringham, Celanese Senior Vice President, Acetyls. “The renewal of this contract is a representation of the collaboration between the two parties and further strengthens our long-term business relationship.”

With manufacturing and distribution in all regions of the world, Celanese is a leading producer of acetic acid and other acetyl intermediate products, which are basic chemicals used in the manufacture of paints and coatings, adhesives, plastics, food packaging and construction materials.

As MRC informed earlier, Celanese has recently announced plans to add a 15,000-metric tons/year line for the production of GUR ultra-high molecular weight polyethylene (UHMWPE) at its facility in Bishop, Texas. Startup is expected by.the beginning of 2022.

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased.

Dragon Crown is an integrated terminal service provider in the PRC specialized in the storage and handling of liquid chemical products. Dragon Crown offers a comprehensive range of high-quality terminal and storage of liquid chemical services ranging from loading and discharging of liquid chemical products at Dragon Crown jetties and storage of liquid chemical products at Dragon Crown’s tank farm and delivery of such products by utilizing Dragon Crown’s dedicated pipelines and other basic terminal infrastructure. Nanjing Dragon Crown (NJDC) was incorporated April 26, 2004.

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) -- Elkem, one of the world's leading suppliers of silicon-based advanced materials, is showcasing its wide range of innovative technologies and solutions at the 3rd China International Import Expo (CIIE) 2020 in Shanghai, China. The company is signing letters of intent with three Chinese customers, said Chemweek.

“China is the most important market for Elkem Silicones. After the initial impact of Covid-19, we now see demand recovering strongly. More than 50 percent of Elkem's employees are based in China. While ensuring the safety of our employees, we have made every effort to ensure the smooth supply of products to customers, and the revenue has also grown steadily," says Frederic Jacquin, Senior Vice President of Elkem Silicones.

"We are the largest silicones producer in China and our strategy is to continue to grow and develop high-end products supporting the dual circulation strategy which is to create products and solutions with a personal touch for our Chinese customers, but also for the rest of the world", says Jacquin.

During the CIIE 2020, Elkem Silicones has signed letters of intent with three Chinese customers, with a potential total contract value of more than NOK 1,3 billion (CNY 1 billion). "Elkem Silicones has enormous confidence in the development of the Chinese market. The three new partners have signed a cooperation agreement with us, which fully reflects their trust in Elkem. We are looking forward to working with Chinese customers on advanced materials shaping the future", says Larry Zhang, Vice President of Elkem Silicones and Director of the Asia-Pacific region.

As MRC informed before, Elkem (Oslo, Norway) says it will invest 180.0 million Norwegian krone (USD19.7 million) in a new plant in Canada to pilot an industrial biocarbon process specifically for silicon and ferrosilicon production. The plant will be constructed near Elkem’s production site at Chicoutimi, Quebec, with start of construction planned for the second half of 2020, the company says. The project has received financial support from the Canadian government, the Quebec government, and the city of Saguenay, reducing Elkem’s net investment to NKr60 million.

We remind that the COVID-19 pandemic has interrupted the development of Norway's offshore oil and gas projects, pushing up costs and postponing startups, the government and oil company Equinor announced. The costs of ongoing projects rose by 13.2 billion Norwegian crowns (USD1.4 billion) from a year ago on an inflation-adjusted basis, government documents showed, as COVID-19 restrictions stalled construction at several fields. "The COVID-19 pandemic and weakened Norwegian (currency) have negatively impacted some of the projects, but the combined project portfolio is still very resilient," Equinor said in a separate statement.

We also remind that BP and Equinor confirmed they are shutting in production on their platforms, while Chevron, BHP and others said they are evacuating some personnel and considering decisions on production reductions.

As reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

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).
MRC

MOSCOW (MRC) -- SABIC and Vopak Holding Terminals BV have signed an agreement with the Jubail and Yanbu Industrial Cities Company (JYIC), owned by the Royal Commission for Jubail and Yanbu (RCJY), reported Chemweek.

Under the agreement, JYIC will become a 20 percent stake partner in Jubail Chemical Storage and Services Company (Chemtank).

The agreement aims to strengthen strategic integration among the three parties to scale up collaboration between local and international organizations. The deal will help achieve the goals of the National Industrial Development and Logistics Program, a key part of Saudi Vision 2030.

Abdullah Al-Saadan, president of the Royal Commission for Jubail and Yanbu, said that JYIC enables the commission to make optimal use of its assets and achieve sustainability and efficiency.

“It invests in the development of the industrial investor logistical services sector, which plays an active logistical role in serving industries, especially petrochemicals. This will help create an attractive environment and enhance the capabilities of the business sector,” he said.

Yousef Al-Benyan, vice-chairman and CEO of SABIC, said the agreement builds on the historical partnership between SABIC and RCJY.

“It is an extension of our continuous coordination in support of the industrial sector in the Kingdom to create an appropriate environment to lay the foundation for future investment,” he said.

Al-Benyan praised the contribution of Vopak as a global player in the field.

Eelco Hoekstra, CEO of Royal Vopak, said: “The entry of JYIC cements a partnership in which the Royal Commission, SABIC and Vopak have jointly collaborated over the past 20 years to create a world-class supply chain infrastructure in Jubail and Yanbu. This sets a great platform to deliver further growth and efficiency in the Kingdom.”

We remind that, as MRC wrote before, SABIC Europe declared a force majeure on its low density polyethylene (LDPE) supplies from Wilton, the UK on November 3. The company had shut its LDPE plant for a maintenance work in the first half of October. The Wilton unit is able to produce 400,000 tons/year of LDPE.

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

SABIC is a global diversified chemical company headquartered in Riyadh. The company manufactures on a global scale in the Americas, Europe, the Middle East and Asia Pacific, producing different kinds of products including chemicals, commodities, high-performance plastics, agri-nutrients and metals. The company supports customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electronics, transportation and clean energy. Production in 2019 measured 72.6 million metric tons. SABIC has more than 33,000 employees worldwide and operates in about 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 12,540 global patent filings and has significant research resources, with innovation hubs in five key regions - the US, Europe, the Middle East, South Asia and North Asia.
MRC

1. HollyFrontier posts smaller-than-expected loss as fuel demand recovers

MOSCOW (MRC) -- U.S. refiner HollyFrontier Corp has posted a smaller-than-expected quarterly loss on the back of cost cuts and a recovery in fuel prices, said Hedocarbonprocessing. Oil refiners have been forced to cut production and slash spending as they struggle with months of sluggish demand as coronavirus-led lockdowns wrecked the need for travel. While demand for fuel has gradually picked up with the reopening of economies, a resurgence in coronavirus infections has threatened the recovery. The refiner said the amount of crude it processed rose 11.5% to 421,100 bpd in the third-quarter from the second, but was still 17% lower than a year earlier. It expects to run 360,000 bpd to 380,000 bpd of crude at its refineries in the current quarter.





MRC

MOSCOW (MRC) -- Lotte Chemical reports third-quarter net profit of 148 billion South Korean won (USD131.7 million), down 30.8% year on year (YOY) from W214 billion, according to Chemweek.

The company recorded operating profit of W194 billion, up 20.4% YOY. Sales were W3 trillion, a drop of 21% YOY.

Lotte Chemical says its olefin segment's operating profit of W79 billion was down 62% YOY. Revenue decreased by 36.6% YOY to W1.2 trillion for this segment owing to a decline in product prices. An explosion at the company's petrochemical complex at Daesan, South Korea, reduced group profit. The complex at Daesan, based on a naphtha cracker, accounts for 21.8% of Lotte Chemical’s sales. It says there was stable demand for hygiene-related products such as masks, hand sanitizers, and transparent partitions. The company projects demand in the fourth quarter to improve because of economic recovery despite the off season at the end of the year. It also forecasts profit to improve after the restart of operations at the Daesan plant within the year.

Operating profit at Lotte Chemical’s aromatics division declined 20% YOY to W6 billion. Sales plunged 43.7% YOY to 376 billion. Sales were pressured by a decrease in product prices caused by declining oil prices and operating-rate adjustments at overseas subsidiaries. Aromatics profit decreased due to oversupply caused by China’s new large-scale para-xylene (p-xylene) and purified terephthalic acid (PTA) plants starting operation, despite improved demand during the polyester peak season.

Operating profit for the polyester unit dropped 65% to W31 billion. Polyester demand in China is weak due to COVID-19, but this was partially offset by a rise in demand for sanitation and disposable items since February. The company projects profit to improve gradually in the onshore polyester peak season despite continued oversupply. For the current quarter, it expects profit for polyethylene terephthalate (PET) to decline due to the off season. Lotte expects spreads of purified isophthalic acid (PIA) to improve because of tight supply.

Operating profit for Lotte's advanced materials unit increased 81.8% YOY to W100 billion. Sales grew by 13.2% YOY to W863 billion. Market conditions improved and sales volume increased due to growing demand for no-contact lifestyle/home appliances, it adds. Market conditions for acrylonitrile-butadiene-styrene (ABS) remained strong due to tight supply in China and its neighboring region. For the polycarbonate (PC) business, compounding products’ profitability stayed stable notwithstanding oversupply in the market.

The company’s Lotte Chemical USA business unit swung to an operating loss of W22 billion, versus an operating profit of W35 billion a year earlier. Sales plunged 54.6% YOY to W64 billion. The company says that profit was depressed by Hurricane Delta in October. Lotte projects operating losses to narrow in the fourth quarter as the plant resumes operations. It expects ethylene glycol market conditions to improve due to some competitors cutting production and polyester demand recovering despite worldwide supply expansions.

Its other business unit, Lotte Chemical Titan Holding, achieved third-quarter net profit of 78.8 million ringgit (USD18.9 million), down 14.7% YOY. Revenue was down 10.4% YOY to RM1.9 billion due to lower selling prices.

As MRC reported before, in H2 October, 2020, Lotte Chemical USA, a joint venture (40:60) of the Malaysian company Lotte Chemical Titan and its parent company Lotte Chemical Corporation, restarted its cracker in Lake Charles in the aftermath of Hurricane Delta's Oct. 9 landfall. This cracker with the production capacity of 1 million mt/year is nearly half-owned by Westlake Chemical. Lotte also restarted its associated 700,000 mt/year monoethylene glycol plant (MEG), market sources said.

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

According to MRC"s ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC