Eni evaluating conversion of Livorno refinery into biorefinery

MOSCOW (MRC) -- Italian energy group Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable, reported S&P Global with reference to a company spokesperson's statement.

Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

As MRC informed earlier, in March 2020, Eni made no decision or announcement about a potential closure of the Milazzo refinery in Sicily.

We remind that Versalis, the petrochemical division of Italy's Eni SpA, shut is cracker in Priolo, Sicily, for repairs in the last days of December, 2019. The capacity of the cracking unit at this complex is 490,000 tonnes of ethylene and 130,000 tonnes of propylene per year. The maintenance works lasted until February 2020.

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, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

Guangxi Huayi to start up new methanol plant at Qinzhou Port in May-June

MOSCOW (MRC) -- Guangxi Huayi Energy Chemical expects to start up a new coal-fed methanol plant at China's Qinzhou port in May or June 2021, according to Apic-online.

This facility with the capacity of 1.8-million-t/y will be the largest methanol plant along China's coastal regions and will source around 2.7-million t/y to 3-million t/y of coal to feed the plant.

Guangxi Huayi also expects to start up a 500,000-t/y downstream acrylic acid (AA) unit around the same time as the methanol plant, and a 700,000-t/y AA unit at the end of 2021.

The AA plants will use the methanol as feedstock.

As MRC reported earlier, in February 2021, Versalis S.p.A. (San Donato Milanese), the chemical company of Italian energy major Eni, licensed to Enter Engineering Pte. Ltd. a low density polyethylene/ethyl vinyl acetate (LDPE/EVA) swing unit to be built as part of a new gas-to-chemical complex based on MTO-methanol to olefins technology to be located in the Karakul area in the Bukhara region of the Republic of Uzbekistan.

The plant is part of a global complex that will have a major importance in Central Asia due to its size and the technologies involved. Enter Engineering Pte. Ltd., one of the largest construction companies in the region, will act as licensee on behalf of the Uzbek Company Jizzakh Petroleum JV LLC, who will own and operate the LDPE/EVA unit and the entire Gas to Chemical Complex once built and made ready for operation.

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, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

PTTGC to rase stake in Vinythai Public Company

MOSCOW (MRC) -- Thaniland's PTT Global Chemical Public Company Limited’s (PTTGC) plans to acquire minority shares of Vinythai Public Company Limited (VNT) through a delisting tender offer, according to Kemicalimfo with reference to Chief Executive Officer, Dr. Kongkrapan Intarajang's statement to the Stock Exchange of Thailand (SET).

Through this acquisition, PTTGC aims to strengthen its tie with downstream chemicals business that is essential to Thailand’s industry, and also to expand its business to Cambodia, Laos, Myanmar, and Vietnam (CLMV) markets.

The company's Board of Director’s special meeting on 18 March 2021 has resolved to approve PTTGC to, subject to certain conditions, proceed a delisting tender offer of all common shares of VNT to delist the securities of VNT from the SET, at the offer price of THB 39 per share, which is subject to price adjustment in accordance with the laws and regulations of the Securities and Exchange Commission, Thailand.

VNT’s majority shareholder, AGC Inc., has agreed not to tender any of its majority stake in VNT through the DTO. VNT is and continues to be a core business and subsidiary of AGC after the DTO.

Following the delisting of VNT’s securities from the SET, GC together with AGC has a potential plan to amalgamate VNT and AGC Chemicals (Thailand) Company Limited.

AGC-TH”, which will become a major shareholder of AGC Chemicals Vietnam Company Limited (AGC-VN), to form a new non-listed public company. AGC will hold a majority stake in the new company.

This partnership aims to strengthen competitive position and build synergies for VNT, AGC-TH and AGC-VN, under an integrated PVC and Chlor-Alkali business operator in Thailand and Vietnam. The amalgamation will enable the new company to have a cost effective and better competitive advantage in key production facilities including 450,000 tons per year of polyvinyl chlorie (PVC), 720,000 tons per year of caustic soda and 120,000 tons per year of bio-based epichlorohydrin (ECH). After the completion of the amalgamation, the newly non-listed public company may increase its capital by issuing new share to GC via private placement.

As MRC reported earlier, in February 2021, PTT Global Chemical awarded Samsung Engineering a USD127-MM EPC contract to modify the Map Ta Phut olefins complex in Thailand. Samsung"s scope is to increase the throughput of propane for the production of propylene by building propane-propylene split and distillation towers and modify the current facilities. The project is scheduled to be completed by 2023. According to Business Korea, Samsung Engineering is currently carrying out two plant projects of PTT GC - the Olefin Project and the Propylene Oxide Project.

According to MRC's ScanPlast report, Russia's overall PVC production reached 169,200 tonnes in the first two months of 2021, down 4% year on year. All producers decreased production volumes over the reported period.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

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