Eastman starts up new Nanjing dimethylaminoethanol unit

MOSCOW (MRC) -- Eastman Chemical Co. (Kingsport, Tenn) announced the startup of its new dimethylaminoethanol (DMAE) unit at its Nanjing, China site, said the company.

The addition will significantly increase the company’s DMAE capacity, support additional sales in Asia, and further strengthen Eastman’s global leadership in alkyl alkanolamines like DMAE, which is used primarily as an intermediate in water treatment.

Led by Site Manager Lisa Xiao Yan Chen, the project began several years ago and overcame several unexpected obstacles, including COVID-19.

“Even with a global pandemic, the construction had a perfect safety record,” said Sabine Ketsman, vice president and general manager of Eastman’s care chemicals and animal nutrition. “I’m very proud of our entire team."

Ketsman stressed that water treatment is vital in addressing increased water scarcity across the world. “The need for clean water truly affects people’s daily lives and personal well-being,” she said. “This is a great example of how our products and chemistries contribute to enhancing the quality of life in a sustainable way."

Eastman, the world’s largest producer of DMAE and other alkyl alkanolamines, has similar units in Belgium and the United States. Its Nanjing site makes methylamines and dimethylacetamide and has an existing alkanolamines unit that produces DMAE, MDEA, MMEA and MDIPA. Additional growth projects are planned.

We remind that in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
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MOSCOW (MRC) -- U.S.-German industrial gas producer Linde beat expectations with fourth quarter earnings and said it was targeting a 11-13% rise in adjusted earnings per share in 2021 irrespective of economic conditions, said the company.

The supplier of gases such as oxygen, nitrogen and hydrogen to factories and hospitals said its fourth-quarter adjusted earnings per share were USD2.30, above the USD2.14 expected on average by analysts according to a Refinitiv poll.

Linde also reported a 12% rise in adjusted EPS for 2020, citing price increases and productivity gains, and forecast first-quarter EPS growth of 16% to 19%. “I have confidence in our ability to grow EPS double-digit percent irrespective of the macro environment while also leveraging any economic recovery,” Chief Executive Steve Angel said in statement.

Linde’s sectors with strongest growth were healthcare and electronics, with sales up 9% and 8%, respectively, due to both higher pricing and volume growth, with the coronavirus pandemic boosting demand for oxygen.

Linde’s biggest competitor Air Liquide is due to report on Feb. 10, while smaller U.S. rival Air Products on Thursday reported first-quarter earnings below expectations, citing, among others, lower demand caused by the COVID-19 pandemic.

Linde has large, long-term contracts in industries such as healthcare, food, beverages, electronics and energy, which help the company sustain steady performance during economic downturns, with customers ranging from Gazprom to Exxon Mobil.

As per MRC, Linde has signed an agreement with BorsodChem (Kazincbarcika, Hungary) for the long-term supply of nitrogen, oxygen, and compressed air to BorsodChem’s chemical complex in Kazincbarcika, including the construction of a new air separation unit (ASU).

As per MRC's DataScope report, December SPVC imports to Russia dropped to 0,600 tonnes from 1,600 tonnes in November. High PVC prices in foreign markets and a seasonal decline in demand in the last two months have put serious pressure on import purchases of PVC from Russian companies. Thus, overall imports were 40,800 tonnes in January-December 2020, compared to 50,900 tonnes a year earlier, with PVC from China and the United States accounting for the main reduction in imports.

Linde’s Frankfurt-listed shares were up 1.6% at 1130 GMT, and are up 53% since mid-March when the spread of the coronavirus triggered a sell-off in global stocks, topping the European chemicals sector index.

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1. OMV sees no turnaround of refineries in 2021

MOSCOW (MRC) -- Austrian oil and gas group OMV expects a recovery in the oil price in 2021 after its 2020 results were hit by the coronavirus pandemic although it does not see an improvement in the utilization rate of European refineries, reported Reuters. OMV said on Thursday that its fourth-quarter operating profit fell by a third to 524 million euros ($629.38 million) on revenues down 18% to 4.956 billion euros as pandemic-related travel restrictions keep a lid on fuel demand.



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MOSCOW (MRC) -- Crude oil futures continued on an upward trajectory during mid-morning trade in Asia Feb. 4, as the abatement of the pandemic situation and simmering hopes over a US stimulus package provided a boost to oil markets already invigorated by an uptick in demand and the start of Saudi Arabia's output cut, reported S&P Global.

At 11:11 am Singapore time (0311 GMT), the ICE Brent April contract was up 44 cents/b (0.74%) from the Feb. 4 settle to USD59.28/b, while the March NYMEX light sweet crude contract was up 40 cents/b (0.71%) to USD56.63/b.

The bullish step in the oil market comes amid signs that the pandemic is starting to ease globally, with expectations of a colossal US stimulus package also inspiring confidence among investors that the economic climate will soon improve.

"There are a number of factors behind crude's rise, but head and shoulders above all of them is the observation that the coronavirus might finally be retreating. It is a natural abatement for most part, but it is also being helped by increased vaccine coverage," Vandana Hari, CEO of Vanda Insights, told S&P Global Platts Feb. 5.

"Investors are confident that this is the beginning of the end for the pandemic as it can be seen that infection, hospitalization and fatality numbers have steadily been dropping in the past two to three weeks globally," Hari added.

Analysts added that the demand outlook for oil has improved significantly as the pandemic situation has alleviated.

In a Feb. 5 note, Stephen Innes, chief global market strategist at Axi brought to attention that two VLCCs were scheduled to deliver North Sea oil to China in late March, adding this "confirms that real demand is driving the front end of the curve."

Analysts also said that investors viewed Saudi Aramco's release of the official selling prices with a bullish hue. OSPs for Saudi Aramco's crude into Asia remained unchanged for March, while OSPs for buyers in Europe and the US were raised.

The release of Saudi Aramco's OSPs follows the start of Saudi Arabia's 1 million b/d output cut, which began on Feb. 1, and has curtailed supply in the market.

"The Saudis had a very different view of demand when they announced their output cuts but, being hawkish, they will likely persist with them regardless of the strong demand. This could see Brent hurtling past the USD60/b mark," Hari concluded.

As MRC informed previously, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook, according to an official with International Energy Agency's (IEA) statement.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC

MOSCOW (MRC) -- Yanbu National Petrochemical Company (Yansab), part of Saudi Basic Industries Corporation (Sabic), is planning to shut its polypropylene (PP) and linear low density polyethylene (LLDPE) plant today (5 February 2021) for a planned turnaround, reported CommoPlast with reference to market sources.

Based in Yanbu, Saudi Arabia, the company has PP and LLDPE plant with production capacity of 400,000 tons/year each.

Both plants are expected to remain off-stream for 10-15 days.

As MRC informed earlier, Yansab shut its high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) units for maintenance in early February, 2018. The planned outage lasted for around 6-7 weeks. Located in Yanbu, Saudi Arabia the HDPE and LLDPE units have a production capacity of 400,000 mt/year each.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020).

Yansab is the most recent SABIC, (Saudi Basic Industries Corp), affiliate in Saudi Arabia, and will be the largest Sabic petrochemical complex. It will have an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT (metric-tons) of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene; 400,000 MT of polypropylene; 700,000 MT of ethylene glycol; 250,000 MT of benzene, xylene and toluene, and 100,000 MT of butene-1 and butene-2.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
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