BASF mulls disposal of some US chemical assets

MOSCOW (MRC) -- BASF SE, the world's petrochemical major, is weighing a possible divestiture of some of its US chemicals assets in a deal that could generate about USD400 million, reported S&P Global with reference to Bloomberg, citing people familiar with the matter.

The potential sale involves BASF's surfactants plant in Kankakee, Ill., and its kaolin business in Georgia. The assets could be valued at about USD250 million and USD150 million, respectively.

Talks are still ongoing and no final decision has been made, sources told Bloomberg.

In September, BASF closed the sale of its construction chemicals business in a deal that fetched EUR3.17 billion.

As MRC wrote before, BASF has declared force majeure (FM) on the supply of n-butanol after hitting unspecified technical problems at its production plant in Ludwigshafen, Germany. The FM was declared “with immediate effect” on 8 December by BASF in a letter to all its n-butanol customers.

We remind that BASF restarted its No. 1 steam cracker following a maintenance turnaround on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- BASF says it will increase its prices in the US and Canada for select polyetheramine products, effective 1 January 2021 or as existing contracts allow. Four polyetheramine products, including two of its Baxxodur-brand products, will each rise by 9 cents/lb, said Chemweek.

Polyetheramine products are used in applications as curing agents in various segments including coatings and sealing compounds, composites, adhesives, and flooring.

As MRC informed earlier, BASF, the world's petrochemical major, has declared force majeure (FM) on the supply of n-butanol after hitting unspecified technical problems at its production plant in Ludwigshafen, Germany. The FM was declared “with immediate effect” on 8 December by BASF in a letter to all its n-butanol customers. “Our production plant for n-butanol has encountered unforeseeable technical problems.

As MRC informed previously, BASF restarted its No. 1 steam cracker following a maintenance turnaround on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Australia has moved into the three most attractive countries in the world for renewables investment for the first time due to rapid solar photovoltaic (PV) deployment, research shows, said Hydrocarbonprocessing.

In a bi-annual index of the top 40 renewable energy markets worldwide by consultancy EY, the United States held on to top spot, followed by China. Australia rose to third place, from fourth in the last ranking in May, while India climbed to fourth from seventh due to record low solar tariff bids and a new target for renewables generation, EY said.

Australia has deployed more than 10 gigawatts of roof-mounted solar PV, by far the largest per capita rooftop-PV deployment in the world. Its plans for renewable energy export links to Asia also helped elevate its position.

However, Australia’s renewables investment fell in the second quarter due to the COVID-19 crisis and policy uncertainty and the government continues to subsidize both the natural gas and oil refining industries as part of efforts to revitalize the economy.

“Despite policy uncertainty – and issues with grid stability and price volatility – the index indicates that Australia could be set to become a green energy exporting leader," EY said.

France sank to seventh place from third as renewable energy auctions were postponed indefinitely and planned retroactive cuts to solar subsidies. Other countries to rise up the rankings were Britain, Portugal, Morocco, Taiwan, Poland and South Korea, while Germany, Denmark and Mexico were among those which fell.

As MRC informed earlier, Borealis announces that its new naphtha cavern in Porvoo, Finland has now been safely commissioned as of October 2020. Having invested around EUR25 million in the construction of this 80,000 m3 facility, Borealis can now source and store naphtha for its Porvoo operations from the global market in a more flexible, cost-efficient, and secure way. The cavern can also accommodate renewable naphtha, making it possible for Borealis customers in future to draw on certified renewable polypropylene (PP) and polyethylene (PE), as well as renewable base chemicals, ethylene, propylene and phenol.

We remind that the light-feed 625,000-metric tons/year Borealis steam cracker at Stenungsund, Sweden, is expected to restart operations in the fourth quarter this year after a fire broke out at the plant in May, 2020. The cracker has been under force majeure ever since after the blaze at the plant on 10 May, which was subsequently brought under control the following day.

Ethylene and propylene are feedstocks for producing PE and 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

MOSCOW (MRC) -- Nouryon has expanded the Levasil colloidal silica product line with two new products for the next generation of catalysts, said the comoany.

The products have been developed to address the industry’s need for high purity and consistent quality in order to be able to produce more efficient catalysts that improve yield and performance. "Our main customers are producers of catalysts and zeolites used in, for example, oil refineries where feedstocks are becoming more challenging and more effective catalysts are needed. This is where our high-purity products have a role to play to improve the productivity and to extend the lifetime of the catalyst," said Patrick Wilhelm, Vice President of Colloidal Silica at Nouryon.

Efficient use of resources are critical concerns for the world today. The catalyst industry plays an important role in society to meet these challenges by, for instance, reducing emissions in diesel engines and power plants, as well as contributing to more efficient chemical production.

"Driven by our commitment to sustainability, we are continuously focused on growing our portfolio of sustainable solutions. Our newest innovation allows our customers to produce even more powerful catalysts for emission control, chemical production and oil refining, which makes it possible to do more while using less,” said Johan Landfors, President of Technology Solutions at Nouryon.

Levasil CA421 PNH and Levasil CA321 PNH are the latest in a series of products from Nouryon for the catalyst industry.

As MRC informed earlier, Nouryon launched Arquad GS, an innovative, environmentally friendly antimicrobial agent that enables the formulation of a robust and tintable anti-viral paint. Nouryon will unveil Arquad GS to Asian markets during the CHINACOAT show, beginning tomorrow in Guangzhou, China, and plans to introduce it to other regions soon after. The introduction of this new product is important given the increased emphasis on surface cleanliness and germ prevention as a result of the COVID-19 pandemic. Research indicates that demand for hygienic coatings is expected to increase significantly, and the global anti-viral and anti-bacterial coating categories, specifically, are projected to hit double-digit annualized growth over the next five years. It's estimated that by 2026, the anti-viral paint category will be worth USD1.3 billion.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, 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-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) -- Perstorp says it plans to build a large-scale commercial carbon capture and utilization (CCU) unit at Stenungsund, Sweden, dubbed Project AIR, that will use a production concept the company has developed to produce sustainable methanol from a variety of recovered end-of-life streams and hydrogen from electrolysis, said Chemweek.

The company plans to utilize its own CO2 and residue streams, and use the methanol to substitute all the fossil-based methanol used in its production in Europe. Project AIR aims to substitute all the 200,000 metric tons/year of fossil methanol that Perstorp uses in Europe as a raw material for downstream chemical products, the company says.
The "uniqueness" of the plant's methanol production process is its combination of CCU and the gasification process where CO2, residue streams, renewable hydrogen, and biomethane will be converted to methanol, the company says. The project would support companies downstream in value chains in their efforts toward renewable/circular materials and reduced carbon footprints, and in their ability to offer sustainable, affordable products. Project AIR will reduce greenhouse gas emissions by about 500,000 metric tons/year if completed, Perstorp says. It adds that the goal is to start producing sustainable methanol in 2025.

"This innovation would both optimize the use of existing technologies whilst building something completely new, as well as demonstrating [CCU], using captured CO2 as a raw material. It would be a concrete example of the transition towards a circular economy and of how significant CO2 emission reductions could be achieved by utilizing existing resources and closing loops. This would be an important step for us to achieve our goal of becoming finite material neutral,” says Jan Secher, president and CEO at Perstorp.

Perstorp says it plans to cooperate with Fortum, Uniper, and Nature Energy for the project. Fortum and Uniper would supply renewable hydrogen from a new electrolysis plant and one of the world’s largest producers of biogas, Nature Energy, would seek to supply biogas to Project AIR.

As MRC informed earlier, last year Perstorp obtained FCN 001967 (Food Contact Notification) from the FDA for the use of Pevalen as a plasticizer in polyvinyl chloride (PVC) polymers for use in repeateduse food contact articles.

As MRC reported earlier, in December 2017, Perstorp announced world’s first portfolio of renewable alternatives to the essential polyols Pentaerythritol (Penta), Trimethylolpropane (TMP), and Neopentyl glycol (Neo).

As per MRC's ScanPlast report, November total production of unmixed PVC was about 86,100 tonnes versus 86,600 tonnes a month earlier, SayanskKhimPlast and RusVinyl decreased their capacity utilisation last month. Overall output of polymer were 892,100 tonnes in the eleven months of 2020 from 893,600 tonnes a year earlier. Two producers increased their production, whereas two other manufacturers reduced their output.

Perstorp is one of the world leaders in various sectors of the specialty chemicals market, it's pioneer in formalin chemistry, plastics and surface materials. Perstorp was founded in 1881 and is controlled by PAI partners,a major European private equity company. The company has around 1,500 employees in with 22 production plants in Europe, Asia and North America.
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