TAIF plans to triple revenue due to its large-scale projects

MOSCOW (MRC) - The TAIF Board of Directors discussed the implementation of the group's development program for 2020 - 2030 in 2020, Devon news agency reported.

Thus, the Council approved the Development Strategy of TAIF Group for 2021–2030. The plans are to receive more than Rb1.75 trillion of revenue per year by 2030. In 2020, the proceeds from the sale of commercial products amounted to Rb582 billion.

To implement more than 30 large-scale investment projects, a colossal amount of investment will be required, the report says. Their size over the next 10 years will amount to Rb1.6 trillion. This is 2 times higher than investments in the entire history of TAIF Group from 1995 to 2020.

Taking into account the implementation of the Development Strategy for 2021-2030. the total investment of TAIF Group for 1995-2030 will amount to Rb2.5 trillion.

The company has been building a Heavy Residue Conversion Complex at TAIF-NK for several years. KGPTO will increase the level of production of valuable light oil products up to 98.2%.

Nizhnekamskneftekhim began construction of the first facilities of the new "ethylene plant", two stages of ethylene production with a volume of 600 thousand tons per year and its derivatives. This will increase the annual production of ethylene to 1.8 million tons, polymers by 3 times and reach the level of rubber production up to at least 1 million tons.

Several years ago, a program for the construction of a gas processing plant and a petrochemical complex was developed jointly with PJSC Gazprom. This would provide Kazanorgsintez with additional ethylene feedstock in the amount of up to 1.8 million tonnes per year. Kazanorgsintez itself is also going to expand and modernize.

Earlier it was reported that Nizhnekamskneftekhim (NKNKH, part of TAIF Group) signed contracts with Lummus Technology LLC for the provision of licenses and technologies for the production of ethylbenzene, styrene and propylene for the olefin complex. Facilities include a 250 ktpa ethylbenzene and styrene unit using EBOne and CLASSIC SM technologies, and a 150 ktpa olefin metathesis unit for polymer-grade propylene using Lummus ethylene dimerization and olefin conversion technology Technology. The units will operate as part of the olefin complex under construction (EP-600).

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.

PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemistry, Petrochemistry and Oil and Gas Processing Division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC

COVID-19 - News digest as of 06.04.2021

1. Phillips 66 expects Q1 net lower on winter storm

MOSCOW (MRC) -- Phillips 66 expects to report a first-quarter net loss of USD680m-865m because of the polar storm and the effects of the coronavirus pandemic, said Reuters. A February deep freeze in U.S. central and southern states led to power outages and gas-supply disruptions that knocked oil refineries and chemical plants out of commission for up to two weeks. Several companies have issued warnings due to the storm.Phillip 66’s adjusted net loss will reach between USD550 million and USD700 million for the quarter ended March 31 due to lost production and higher costs from the outages, it said. IBES data on Refinitiv had estimated a USD210 million loss.

MRC

LG Chem to restart its LPG cracker in Daesan by 8 April

MOSCOW (MRC) -- LG Chem, a South Korean petrochemical major, plans to resume operations at its side cracker in Daesan, South Korea, by 8 April, according to CommoPlast with reference to market sources.

This LPG cracker with an annual output of 230,000 tons/year of ethylene and 100,000 tons/year of propylene was reportedly shut on 28 March, 2021, because of an issue at the compressor.

LG Chem also operates another cracker in Yosu, South Korea, with the capacity of 1.2 million tonnes of ethylene per year.

As MRC informed earlier, LG Chem is planning to spend USD2.4-billion to expand its naphtha cracking center (NCC) and polyolefin (PO) plant in Yeosu, South Korea. The project, which will expand the NCC and PO facility by 800,000 t/y each, is expected to be completed in the second half of 2021.

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.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

Force majeure at Cornerstone ACN plant in US remains in force

MOSCOW (MRC) -- Cornerstone, a key producer of acrylonitrile (ACN) in the US, has not lifted the force majeure (FM) as of 5 April, 2021, reported S&P Global with reference to market sources.

Thus, the FM was declared at its facility in Waggaman (Waggaman, Louisiana, USA) with a capacity of 240,000 mt/year of ACN on 1 February, 2021, due to mechanical issues and a shortage of feedstock.

At present, the company has been conducting a scheduled turnaround at this plant since mid-March.

Acrylonitrile is one of the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICIS-MRC Price report, ABS imports into Russia totalled 2,700 tonnes in January, compared to 2,600 tonnes a month earlier and 2,300 tonnes in January 2020.

Cornerstone Chemical Company manufactures a variety of petrochemical products. Thus, the company produces acrylonitrile (ACN), which is used in the production of acrylamide, acrylic fibers, nitrile rubber, elastomers, ABS plastics, surface coatings and other products; melamine and other petrochemical products. The company was founded in 1952 and is headquartered in Waggaman, Louisiana, USA.
MRC

Ineos to restart its ACN plant in Texas in H1 April after winter storm

MOSCOW (MRC) -- Ineos Nitriles, an American subsidiary of Ineos Group, plans to resume operations at its acrylonitrile (ACN) plant in Green Lake, Texas, USA, in the first half of April, after the deep freeze in the region, according to S&P Global with reference to market sources.

Thus, this plant with the capacity of 545,000 mt/year was shut in mid-February, and the company announced then force majeure (FM) on supplies of ACN from its production site in Green Lake. As of 5 April, 2021, the FM still remains in place.

As MRC informed before, in June, 2019, Ineos announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by Ienos and is first cracker to be built in Europe in 20 years.

And in January, 2021, Ineos said it reschedulied its EUR5-billion (USD6 billion) olefins project at Antwerp, Belgium, and will build the planned complex’s ethane cracker before its propane dehydrogenation (PDH) plant. When it announced the project in January 2019, Ineos said the PDH unit and cracker would be built at the same time with the PDH facility due onstream a year ahead of the cracker.

Acrylonitrile is one of the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICIS-MRC Price report, ABS imports into Russia totalled 2,700 tonnes in January, compared to 2,600 tonnes a month earlier and 2,300 tonnes in January 2020.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC