Fire shuts Equinor methanol plant in Norway

MOSCOW (MRC) -- Equinor (Stavanger, Norway) has confirmed that a fire broke out on Wednedsday at 2.40pm local time in a compressor house at the company's methanol plant at Tjeldbergodden, Norway, said Chemweek.

Emergency services were dispatched and police, fire, and health services are at the scene, the company says. The fire was put out at 3.40pm, it says.

When the fire started, site's air separation unit and the methanol plant were shut down, Equinor says. Personnel at the factory were evacuated and all emergency response procedures implemented, it says. Equinor's emergency response organization was assembled and authorities were notified.

"Nobody was injured in the fire," Equinor says. "We are working to get an overview of the consequences and the cause of the fire."

The Tjeldbergodden plant has the capacity to produce 900,000 metric tons/year of methanol, according to IHS Markit data.

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.

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 density 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, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Braskem-Idesa shutting down on natural gas interruption

MOSCOW (MRC) -- The Braskem-Idesa ethylene-polyethylene (PE) joint venture is shutting down production after receiving notice from Mexico's natural gas pipeline authority that it will unilaterally terminate natural gas delivery, reported Chemweek with reference to Braskem's statement.

"As a result, in compliance with safety protocols, Braskem-Idesa initiated procedures for the immediate interruption of its operating activities, which may have a material effect on the company's operating or financial results, depending on the timing of the stoppage," Braskem says in a statement.

The company says it will take legal measures to resolve the issue, but it cannot estimate the date for the return of its activities.

The Braskem Idesa complex, which comprises one ethane cracker and three PE units totaling 1.05 million metric tons/year, had a utilization rate of 84% in 3Q 2020, according to a recent Braskem presentation. The main grades of PE produced are high density polyethylene (HDPE) for blow molding and film, and low density polyethylene (LDPE) for film.

The outage is expected to support US PE prices. Braskem-Idesa exports some of its production into the US and competes with US manufacturers in Latin America.

As MRC informed before, petrochemical producer Braskem Idesa is investing in an additional ship-unloading pier to increase its ethane imports. The initiative is part of the "fast track" project, which is responsible to provide imported ethane to the Veracruz complex in Mexico.

We remind that in early February, 2020, Braskem said its Braskem Idesa joint venture with the Mexican group Idesa had reached an important milestone with the import of its first ethane from the US, which will be used as feedstock to at the Coatzacoalcos, Mexico, petrochemical complex. Braskem Idesa has spent USD4 million on logistics infrastructure and will be able to import up to 12,800 b/d of ethane to the feed the complex. This quantity represents 19% of the company’s 1.05-million metric tons/year steam cracker’s ethane needs.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 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, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

LyondellBasell, Sasol complete USD2-billion Louisiana JV deal

MOSCOW (MRC) -- LyondellBasell and Sasol (Johannesburg) have closed a previously announced USD2-billion transaction that sees the companies form their Louisiana Integrated Polyethylene joint venture (JV) at Lake Charles, reported Chemweek.

LyondellBasell now owns 50% of Sasol’s new 1.5-million metric tons/year steam cracker, and low-density polyethylene (LDPE) and linear low-density polyethylene (LLDPE) plants - with combined capacity for 900,000 metric tons/year - as well as associated infrastructure at Lake Charles. The deal was closed on 1 December following regulatory and shareholder approvals, with the proceeds to be received within two days of closing, Sasol says.

LyondellBasell will operate the three assets and market the polyethylene (PE) products on behalf of the JV shareholders. Approximately 400 of Sasol’s employees at Lake Charles who directly support the assets have now joined LyondellBasell, the companies say. Sasol achieved beneficial operation of the final plant at the Lake Charles Chemicals Project, the 420,000-metric tons/year LDPE unit, mid-November.

“The formation of this JV is part of our approach to growing our core businesses while positioning the company to benefit from improving economic conditions,” says LyondellBasell CEO Bob Patel. “We believe our ability to operate efficiently and serve growing markets will create exceptional long-term value for our shareholders of both companies.”

“This transaction accelerates the transformation of our chemicals business toward a focus on specialty chemicals,” says Sasol’s president and CEO Fleetwood Grobler. “We’re proud of the world-scale assets we’ve built in southwest Louisiana and look forward to working with LyondellBasell to realize their full potential and create value for all our stakeholders.”

LyondellBasell agreed in October to acquire the 50% stake in Sasol’s base chemicals business at Lake Charles. The agreement included customary rights for each partner regarding the potential future sale of its ownership interest, the companies said at the time.

Sasol has retained full ownership and operational control of its existing 454,000-metric tons/year Lake Charles East Plant ethane cracker, an R&D complex, and its performance chemicals assets at Lake Charles producing Ziegler alcohols and alumina, ethoxylates, Guerbet alcohols, paraffins, comonomers, linear alkylbenzene, ethylene oxide, and ethylene glycol.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 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.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

COVID-19 - News digest as of 02.12.2020

1. ExxonMobil to write off as much as USD20bn in assets; cuts capex

MOSCOW (MRC) -- ExxonMobil plans to write down as much as USD20bn in assets and cut its 2021 capital expenditures (capex) to USD16bn-19bn as it prioritizes investments in chemical performance products in the near term, said Chemweek. Annual capex thereafter until 2025 will be USD20bn-25bn, down from the company’s original budget of USD30bn-35bn. ExxonMobil is also eyeing a 15% cut in its global workforce by the end of next year to cut expenses amid the demand slump caused by the coronavirus pandemic and a low-oil price environment. The asset write-off would include certain dry gas resources in the Appalachian and Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas in the US, and in western Canada and Argentina.

MRC

PE production in Russia rose by 68% in Jan-Oct 2020

MOSCOW (MRC) -- Russia's overall polyethylene (PE) production totalled 2,449,0000 tonnes in the first ten months of 2020, up by 68% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output, according to MRC's ScanPlast report.

October PE production in Russia was 244,900 tonnes, whereas this figure was 233,200 tonnes a month earlier, in the first month of autumn several producers stopped their capacities for repairs at once. Thus, overall PE output reached 2,449,000 tonnes in January-October 2020, compared to 1,457,000 tonnes a year earlier. Production of all PE grades rose, but LLDPE accounted for the greatest increase, which was provided by ZapSibNeftekhim.

The structure of PE production by grades looked the following way over the stated period.


October production of high density polyethylene (HDPE) in Russia exceeded 140,200 tonnes, compared with 156,200 tonnes in September; Kazanorgsintez shut its capacities for scheduled turnaround in September-October. Russian plants' overall HDPE output reached 1,505,800 tonnes in January-October 2020, up by 104% year on year.

October total low density polyethylene (LDPE) production increased to 50,900 tonnes from 28,300 tonnes in September, as Ufaorgsintez, Tomskneftekhim and Kazanorgsintez shut their facilities for scheduled maintenance works. Thus, overall production of this PE grade totalled 519,100 tonnes over the stated period, down by 2% year on year.

October LLDPE production rose to 53,800 tonnes from 48,700 tonnes a month earlier, ZapSibNeftekhim increased its capacity utilisation.
Overall LLDPE production grew to 424,200 tonnes in the first ten months of 2020 from 186,100 tonnes a year earlier.

MRC