Sinopec to invest USD4.4 Billion to curb China dependence on ethylene imports

MOSCOW (MRC) -- Sinopec’s board has approved plans to build a 1.2-million metric tons per annum ethylene plant and downstream units in the Nangang area of the port of Tianjin, China, reported Kemicalinfo with reference to an announcement posted on 4 December.

Sinopec estimates the cost of the project at 28.8 billion renminbi (USD4.4 billion).

Sinopec announced in November that it had signed a framework agreement with the Tianjin authorities to invest about 70 billion renminbi (USD10.7 billion) at Nangang in 2021-25 to build capacity for petrochemicals and other products.

Ethylene is a major product processed from crude oil. In China, over half of the chemical is used to make polyethylene, a key ingredient for plastics used in a wide range of everyday goods and home appliances.

As the Chinese government calls for reduced dependence on chemical imports amid rising geopolitical tensions, state-owned and private oil firms are racing to boost domestic capacity in the world’s top chemical consumer.

China’s total ethylene capacity is forecasted to grow over 50 million tons by 2025, an expert at oil giant, China National Petroleum Corp said.

Sinopec operates 1 million metric tons per annum ethylene plant and downstream complex in the Dagang district of Tianjin in a 50/50 joint venture (JV) with Sabic called Sinopec Sabic Tianjin Petrochemical (SSTPC). The JV announced in 2019 that it would invest 1.5 billion renminbi (USD230 million) to expand ethylene capacity by 300,000 metric tons/year for completion in 2021.

Sinopec also has a wholly-owned 240,000- metric tons per annum ethylene plant at Dagang, operated by its Sinopec Tianjin Co. subsidiary. Nangang and Dagang are both in Tianjin’s Binhai New Area development zone.

As MRC informed previously, SSTPC has brought on-stream its naphtha cracker following a turnaround. The company resumed operations at the cracker on July 12, 2020. The cracker was shut for maintenance on May 9, 2020. Located at Tianjin, China, the cracker has an ethylene production capacity of 1 million mt/year and propylene capacity of 540,000 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 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

3,500 tonnes of PP were sold in export trades in Turkmenistan

MOSCOW (MRC) -- On Tuesday, after a long break at the State Commodity and Raw Materials Stock Exchange of Turkmenistan, the export trades for Turkmenbashi refinery's polypropylene (PP) were resumed. 3,500 tonnes of PP out of the put out for auction 5,000 tonnes of material were sold during one trading day, according to ICIS-MRC Price report.

The trades participants said the last export trades for Turkmenbashi refinery's PP took place at the State Commodity and Raw Materials Stock Exchange back in August, and then only 3,000 tonnes of raffia grade PP were put out for action. On Tuesday, 8 December, 5,000 tonnes of PP were put up for auction in the export trades at a starting price of USD920/tonne FCA.

Only 3,500 tonnes of PP were sold out of the put out for auction 5,000 tonnes in the first trading day, deals were done at prices significantly higher than the starting price - USD1,046/tonne FOB/FCA, with shipment within six months.
MRC

Nordson Corporation to Sell Screws and Barrels Product Line to Altair Investments

MOSCOW (MRC) – Nordson Corporation entered into a definitive agreement to divest the screws and barrels product line from its polymer processing systems (PPS) division to Altair Investments (Altair), said the company.

This divestiture represents a portfolio realignment consistent with Nordson’s strategy to drive profitable growth through highly differentiated products serving attractive end markets.

Sundaram Nagarajan, Nordson president and chief executive officer, said, “Using NBS Next, Nordson’s growth framework, we are focusing our resources on precision technology solutions that will deliver profitable growth for the company. Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson’s strategic focus, we believe it will do well with Altair. I want to personally thank the employees, who support this product line, for their contributions to Nordson and wish them success in their future with Altair."

Generating over USD70 million in annual revenue with 500 employees, this global product line has been reported in Nordson’s Industrial Precision Solutions segment. Nordson and Altair anticipate closing the transaction in the first quarter of fiscal 2021. They will work collectively to ensure a smooth transition with no disruption to customer service and support.

Joseph Kelley, executive vice president and chief financial officer, commented, “This strategic portfolio transaction will improve the company’s ongoing earnings and require a one-time, non-cash asset impairment charge of approximately $87 million. This action underscores our commitment to align and focus our resources with the best strategic opportunities for long-term profitable growth."

The company looks forward to providing further color on this pending transaction during its previously announced fourth quarter and fiscal year 2020 webcast. The webcast will be hosted on December 16, 2020, at 8:30 AM ET. To access the webcast.

As MRC informed earlier, Rocheleau Tool & Die Co. has ordered dozens of Nordson Corporation’s Xaloy screws and barrels to equip blow molding machines for use by manufacturers of pipettes that are essential components of COVID-19 test procedures.

We remind that Russia's output of chemical products rose in October 2020 by 7.2% year on year. At the same time, production of basic chemicals grew in the first ten months of 2020 by 6.3% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-October output. October production of polymers in primary form grew to 857,000 tonnes from 852,000 tonnes in September. Overall output of polymers in primary form totalled 8,340,000 tonnes over the stated period, up by 17% year on year.

Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in more than 35 countries.
MRC

Denmark agrees deal to have 775,000 electric cars by 2030

MOSCOW (MRC) -- Denmark on Friday agreed on a deal with parliament to put at least 775,000 electric or hybrid cars on Danish roads by 2030 in its latest move to reach its ambitious target reducing greenhouse gas emissions by 70% in 2030, said Reuters.

The government also announced a broader aim of having as many as one million low or zero-emission cars on the road by 2030, but the current deal would secure financing for the first 775,000. There are currently only around 20,000 electric cars in Denmark, a fraction of the 2.5 million cars currently on Danish roads.

Under the new deal, taxes and levies on cars propelled by fossil fuels will gradually increase, and taxes on new cars will depend on how much carbon dioxide they emit, replacing a system which calculates tax based on cars' mileage. "The average electric car will be significantly cheaper in the coming years," Tax Minister Morten Boedskov said.

The plan, which largely follows earlier recommendations by the Danish Climate Council, would reduce greenhouse gas emissions by more than 2 million tons. The plan, for which the government will set aside 2.5 billion Danish crowns (USD407.62 million), will be reviewed in 2025, to develop measures to have up to one million zero-emissions cars by 2030.

Banning the sale of diesel and petrol cars is in breach of current European Union rules, but the government on Friday echoed earlier calls by 11 member countries to phase out fossil fuel cars on an EU level by 2030.

As MRC informed earlier, BP has invested USD20 million in Israel's StoreDot, a start-up that claims its batteries can charge electrics cars in five minutes. The oil giant said that its venture capital arm BP Ventures was investing in the Tel Aviv-based firm as it looks to reduce greenhouse gas emissions in its operations.

We remind that Russia's output of chemical products rose in October 2020 by 7.2% year on year. At the same time, production of basic chemicals grew in the first ten months of 2020 by 6.3% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-October output. October production of polymers in primary form grew to 857,000 tonnes from 852,000 tonnes in September. Overall output of polymers in primary form totalled 8,340,000 tonnes over the stated period, up by 17% year on year.
MRC

China is building USD20 billion mega petchem complex in Shandong oil hub

China is building USD20 billion mega petchem complex in Shandong oil hub

MOSCOW (MRC) -- China is in the process of building a mega petrochemical and refining complex in east China’s Shandong province, according to Hydrocarbonprocessing with reference to local state media reports.

The country started the project in late October, 2020, four months after the USD20 billion project received state approval.

The Yulong project to be built in Yantai, Shandong, China’s hub for independent oil refineries, consists of a 400,000-bpd oil refinery and a 3-MM-ton-per-year ethylene plant, Reuters reported in June.

The project is one of nearly 500 key industrial projects that started construction in Shandong province in October with total investment of 544.7 billion yuan (USD81.26 billion), the newspaper reported.

The report did not provide further detail about the financing for the project or when the construction be will completed.

The complex, with investment led by private aluminum smelter Shandong Nanshan Group, adds to China's recent wave of petrochemical investments, which have been led by the private sector and drawn global giants such as BASF and Exxon Mobil to build complexes in the world's top petrochemical consumer and importer.

As MRC reported before, in late April 2020, ExxonMobil Corp kicked off construction of its USD10 billion petrochemical complex in south Chinese city Huizhou. The complex, which consists of a 1.6 million tonnes per year ethylene facility, is one of the few mega petrochemical projects in China wholly owned by a foreign investor.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC