Clariant and India Glycols form JV for renewable ethylene-oxide derivatives

MOSCOW (MRC) -- Clariant, a focused, sustainable and innovative specialty chemical company, and India Glycols Limited (IGL), a leading company in the manufacturing of green technology-based chemicals, have announced a strategic partnership to establish a 51-49% joint venture (JV) in renewable ethylene oxide (EO) derivatives, as per Clariant's press release.

Under the terms of the proposed agreement, India Glycols will contribute its renewable Bio-EO Derivative business to the joint venture, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand (India). In return, Clariant will contribute its local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, held by Clariant India Ltd., as well as a net cash payment to attain a 51% stake and thus majority ownership.

Clariant International Ltd. will be the sole Clariant shareholder in the JV. Mr. U.S. Bhartia would be the designated chairman of the joint venture.

By combining production and distribution capacity, the JV is expected to become a leading supplier of renewable materials to the rapidly growing consumer care market in India and neighboring countries.

The partnership is subject to customary regulatory approvals.

“This opportunity to partner with India Glycols is an important step in Clariant’s journey to strengthen our core portfolio, while adding value with sustainability. It enhances the capacity of our Industrial and Consumer Specialties business in India and beyond, whereas the access to renewable Ethylene Oxide broadens our global offering to customers and this makes Clariant a leader in “green” Ethylene Oxide Derivatives”, said Conrad Keijzer, CEO of Clariant.

The joint venture will market Clariant’s entire range of Industrial and Consumer Specialties products in the previously mentioned countries, while all other global markets shall be served by Clariant.

To support production, India Glycols has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol as well as further utilities.

As MRC reported earlier, in October 2020, Clariant (Muttenz, Switzerland) announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- A unit of Venezuelan state oil company PDVSA on the Dutch Caribbean island of Bonaire has declared bankruptcy, citing the impact of US sanctions on Venezuela, reported Reuters with reference to a court filing.

In a March 9 filing published last week by the Court of First Instance of Bonaire, Sint Eustatius and Saba, PDVSA-owned Bonaire Petroleum Corporation (BOPEC) said it could no longer pay its debts because sanctions had cut off its "access to international trade," as well as cash held in bank accounts.

The court granted BOPEC's request for a moratorium on creditor payments in a filing that noted BOPEC said it was negotiating with "a party that may make the necessary liquid assets available" to allow the company to "satisfy its preferred creditors and offer a settlement to its unsecured creditors."

Neither PDVSA nor Venezuela's oil ministry immediately responded to requests for comment.

At its peak, BOPEC had the capacity to store some 10 million barrels of oil and load large vessels from its deep water docks. The company last year was ordered to remove stored oil due to the risk of leaks from its tanks.

PDVSA's contract to operate Curacao's 335,000 barrel-per-day Isla refinery and a neighboring storage terminal ended in December 2019, and PDVSA unit Citgo Petroleum Corp - now under the control of the US-backed opposition to Maduro - last year transferred control of Aruba's San Nicolas refinery to the island's government.

As MRC informed earlier, pressured by strict US sanctions, Venezuela's oil exports plunged by 376,500 barrels per day (bpd) in 2020, according to Refinitiv Eikon data and internal documents from state-run PDVSA, financially squeezing President Nicolas Maduro.

We remind that in December 2020, a tanker chartered by the National Iranian Oil Company (NIOC) was loading Venezuelan crude for export, documents from state-run PDVSA show, providing evidence of the two countries' latest tactics to expand their trade in defiance of US sanctions. Venezuela and Iran had deepened their cooperation last year as Venezuela had exchanged gold and other commodities for Iranian food, condensate and fuel.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- SIBUR's Board of Directors has approved a new Regulation on Dividend Policy increasing the minimum dividend payout ratio from 35% to 50% of adjusted net profit under IFRS, said the company.

The new policy applies to reporting periods starting from 1 July 2020. The policy matches the industry average global benchmarks of major petrochemical businesses, with the new ratio reflecting the company’s expected deleveraging on the heels of ZapSibNeftekhim’s successful ramp-up and Amur GCC’s kick-off by our joint venture with Sinopec. The dividend policy perfectly fits SIBUR’s plans to make and finance ongoing and future investments.

Dmitry Konov, Chairman of the Management Board at SIBUR Holding: "In recent years, SIBUR has been heavily investing in building up the company’s petrochemical business. With new capacity now on stream, we have boosted the output of high value-added petrochemical products, managing to generate cash flow and deleverage even in the turbulent global market environment. This in turn enabled us to raise dividend payouts while sticking to the schedule of our long-term investment programme featuring Amur GCC as its flagship project."

Earlier it was reported that the revenue of SIBUR Holding PJSC decreased by 1.6% last year and amounted to 523 billion rubles. At the same time, SIBUR increased EBITDA to 179 billion rubles, which is 5.4% more than in 2019.

Earlier it was noted that in December last year, SIBUR Holding chose Spheripol LyondellBasell polyolefin technology for its Amur Gas Chemical Complex (AGHK) under construction. The technological process will be used at a polypropylene plant with a capacity of 400 thousand tons per year, which will be built in the town of Svobodny, Amur Region.

According to MRC's ScanPlast, the total PP production in Russia increased by 31% in 2020 compared to the same indicator in 2019 and amounted to about 1,883 thousand tonnes. The main increase in production volumes was provided by ZapSibNeftekhim.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.
MRC

MOSCOW (MRC) -- PQ Group Holdings Inc., a leading integrated and innovative global provider of specialty catalysts, chemicals and services, has announced that executive vice president and CFO Michael Crews plans to retire in September 2021 and he will be replaced by Michael Feehan, vice president of finance and treasurer, said the company.

"With the completed divestiture of PQ’s Performance Materials business and the recently announced agreement to sell our Performance Chemicals segment, it is a logical time for me to step back," said Mr. Crews. "I am proud of our financial performance and numerous other accomplishments that have occurred during my past five years at PQ, including our IPO, continuing debt reduction and capital returned to stockholders through a special dividend."

Feehan joined PQ in December 2006 and has served as vice president of finance and treasurer since May 2016.

Separately, the company announced earlier this month that Tom Schneberger, who has served as vice president, strategy and business development, since December 2019, will serve as president, catalysts. With Schneberger’s new assignment, Raymond Kolberg, who has served as president, catalysts, will become vice president - technology & business development.

As MRC reported earlier, in December 2019, PQ Group Holdings Inc. announced an agreement with INEOS Polyolefin Catalysts to commercialize certain polyethylene (PE) catalysts to customers of selected processes.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.

PQ Group Holdings Inc. is a leading integrated and innovative global provider of specialty catalysts, chemicals and services. We support customers globally through our strategically located network of manufacturing facilities. The company has three uniquely positioned specialty businesses: Refining Services provides sulfuric acid recycling to the North American refining industry; Catalysts serves the packaging and engineering plastics and the global refining, petrochemical and emissions control industries; and Performance Chemicals supplies diverse product end uses, including personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products.
MRC

MOSCOW (MRC) -- Sinopec Maoming Petrochemical, part of Sinopec Corporation, has delayed the planned shutdown at its No.2 polypropylene (PP) unit in Guangdong until 25 March, according to CommoPlast.

Initially the company was to shut this PP unit for a scheduled turnaround on March 5, 2021. Sinopec Maoming plans to conduct maintenance works at this unit to 5 May, 2021.

Located in Guangdong, China, the No. 2 PP unit has a capacity of 300,000 mt/year.

As MRC informed before, Sinopec Maoming Petrochemical has brought on-stream its No.1 PP unit in Guangdong. The company resumed operations at the unit following turnaround on July 27, 2020. The PP unit was shut on July 15, 2020. Located in Guangdong, China, the No. 1 PP unit has a capacity of 170,000 mt/year.

The company also operates No. 3 PP unit has a capacity of 200,000 mt/year.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC