Ohio cracker project remains priority, says PTTGC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC; Bangkok, Thailand) says that its planned 1.5-million metric tons/year steam cracker project at Belmont County, Ohio, remains the top priority for its affiliate PTTGC America (PTTGCA), according to Chemweek.

The company says that the project has not at any point been put on hold. PTTGCA says that it looks forward to making announcements of the project’s progression in the weeks and months ahead.

PTTGC earlier in September this year signed an ethane supply agreement with Range Resources Corp. (Forth Worth, Texas). Range will supply 15,000 b/d of ethane to a facility that includes a cracker with ethane feed capacity of 100,000 b/d and multiple facilities for creating ethylene derivative products.

The downstream configuration has yet to be decided, especially in view of Daelim Chemical USA’s (DCA) withdrawal from the project. PTTGC and DCA were equal partners in the project. PTTGC is in the process of seeking a new partner while working toward a final investment decision. This is likely to delay the completion of the project to 2027–28.

Original plans revolved around different configurations, including for the entire ethylene output being used to make the equivalent volume of high-density and linear low-density polyethylene, or some of the ethylene being used to make ethylene glycol. Most of the output would be sold on the US market.

As MRC wrote before, in June, PTTGCA said it delayed making a final investment decision to build the ethane cracker in US, which analysts estimate will cost USD5.7 billion, from the first half of 2020 to the first half of 2021 due to the coronavirus.

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

ccording 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.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Lummus Technology has formed a joint venture (JV) with TCG Digital aimed at the implementation of digital analysis and operative solutions for refining, petrochemical, and gas processing facilities, reported Chemweek.

The new JV business, Lummus Digital, will work with Lummus’s existing customers and potential clients, it says. TCG Digital and Lummus Technology are both subsidiaries of The Chatterjee Group (TCG; New York). The partnership will enable both companies “to build on their core competencies and strengths, addressing the fast-evolving needs of the refining and petrochemicals industry,” says Debdas Sen, TCG Digital CEO.

Lummus Digital will work with asset operators to provide big data, advanced analytics, artificial intelligence, process simulations, proprietary know-how, and advisory services, it says. The focus will be on digitalizing operations and assets to make them more profitable, efficient, safe, and to “provide flexibility to quickly adapt operations to take advantage of changing market dynamics,” it adds.

Lummus Technology was acquired in July from McDermott International for USD2.725 billion by Haldia Petrochemicals (Haldia, India), TCG’s flagship company, and investment funds affiliated with Rhone Capital.

As MRC informed earlier, in October, 2020, Lummus Technology announced that it had been awarded a contract by Enter Engineering Pte. Ltd. for the Shurtan Gas Chemical Complex in Uzbekistan. Lummus’ scope includes the design and supply of four proprietary Short Residence Time VI and VII type cracking furnaces, which will more than double the production of ethylene at Shurtan’s facility. Lummus was selected due to its leading ethylene technology position and its extensive experience with ethylene furnaces, having developed pyrolysis furnaces as part of its proprietary equipment portfolio.

Ethylene is the main feedstock for the production of polyethylene (PE).

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.
MRC

MOSCOW (MRC) -- Permodalan Nasional Bhd (PNB), one of Malaysia's largest fund managers, said it will sell its entire 56.3% stake in Chemical Company of Malaysia Bhd (CCM) for 292.8 million ringgit (USD71.37 million), according to Hydrocarbonprocessing.

CCM, a manufacturer and marketer of chlor-alkali chemicals and polymers chemicals used in rubber gloves, oleochemical, oil and petrochemicals, said in a bourse filing that it received a notification from PNB stating the fund manager has entered into a deal with chemical manufacturer Batu Kawan Berhad.

Under the agreement, PNB will sell 94.45 million ordinary shares to Batu Kawan that is equivalent to an 11.1% premium to CCM's closing price on Tuesday.

Shares of CCM opened 7.2% higher on Wednesday.

"This divestment is part of PNB's asset diversification strategy to rebalance the portfolio," PNB President and Group Chief Executive Ahmad Zulqarnain Onn said in a statement.

The sale will trigger a mandatory general offer by Batu Kawan for the remaining shares, but the acquirer said it intends to maintain the listing status of CCM.

As MRC reported earlier, September production of sodium hydroxide (caustic soda) in Russia were 108,000 tonnes (100% of the basic substance) versus 99,200 tonnes a month earlier. Russia's overall output of caustic soda totalled 945,600 tonnes in the first nine months of 2020, down by 1.6% year on year.
MRC

MOSCOW (MRC) -- Rohm (Darmstadt, Germany) has raised the price of methyl methacrylate (MMA) in Europe with immediate effect, or as agreements allow, citing ongoing strong demand and limited raw material supply, said Chemweek.

The price was increased as of 16 November by EUR50/metric ton (USD59), and follows a previous rise announced in October and implemented on 1 November by Rohm for MMA and other methacrylate monomer products in Europe, with that rise ranging from 2-5% depending on the product.

The company lifted sales control on MMA in Europe earlier in October, having imposed it in September, after resuming MMA production at its plant in Worms, Germany, following an annual maintenance turnaround. The Worms plant has a production capacity of 225,000 metric tons/year of MMA, with Rohm’s other MMA facility at Wesseling, Germany, having a nameplate capacity of 95,000 metric tons/year.

Earlier it was reported that Roehm had raised prices for methyl methacrylate (MMA) and related products in the US by 2-4% from November 1. In general, the supply of MMA is becoming increasingly limited, while the availability of acetone raw materials is also very limited. Demand in the construction segment remains robust due to strong demand from the housing market, while orders for acrylic sheets remain strong but are declining as demand falls from record highs seen earlier this year.

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, October total production of unmixed PVC grew to 86,600 tonnes from 86,000 tonnes a month earlier, SayanskKhimPlast and Bashkir Soda Company increased their capacity utilisation. Overall output of polymer was 805,100 tonnes in the first ten months of 2020, which virtually corresponds to the last year"s figure. Two producers increased their production, whereas two other manufacturers reduced their output.
MRC

MOSCOW (MRC) -- Trinseo, a manufacturer of plastics, latex binders and synthetic rubber, announced that it has received mass balance certification for three families of products it manufactures in Europe, reported GV.

Trinseo Europe GmbH received the certification from the International Sustainability & Carbon Certification (ISCC), a globally applicable sustainability certification system that covers all sustainable feedstocks, including agricultural and forestry biomass, circular and bio-based materials and renewables, following an audit by TUV Nord. The certification was issued for three material families manufactured at three European sites: polystyrene (PS) from Tessenderlo, Belgium, polycarbonate (PC) produced in Stade, Germany and synthetic rubber from Schkopau, Germany.

ISCC’s mass balance system is designed to support bio-economy and circular economy initiatives, such as reduce reuse recycle which in turn will reduce negative impacts to natural resources and reduce climate emissions. Mass balance is a chain of custody model designed to keep track of the total amount of input (e.g. sustainable feedstock) throughout the production cycle and ensure an appropriate allocation to the finished goods. For example, recycled feedstock replaces an equivalent amount of virgin feedstock at the beginning of the value chain (input) to be allocated to the product (output) in such a manner that the input and output match.

“The mass balance certification is another step taken by Trinseo, as a material solutions provider, towards helping our customers reach their sustainability goals. I am proud that Trinseo does not simply talk about being sustainable or environmentally friendly, but it is taking a leadership role to drive sustainability in our industry. We will continue to invest in future-oriented solutions, from our product portfolio to our processes, in accordance to the 2030 Sustainability Goals we announced earlier this year,” said Andre Lanning, Vice President, Strategy, Corporate Development, Sustainability & Marketing Communications.

As MRC wrote earlier, Trinseo says feedstock supply issues that threatened the operation of its 300,000-metric tons/year styrene monomer (SM) plant in Boehlen, Germany, have been resolved, and the company is no longer “evaluating strategic options” for the asset.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year. September total estimated PS consumption in Russia was 48,690 tonnes, up by 13% year on year.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC