BASF raises prices for BDO and derivatives in North America

MOSCOW (MRC) -- BASF, the world's petrochemical major, has increased prices in North America for 1,4-Butanediol (BDO) and derivatives, as per the company's press release.

Thus, prices for the products mentioned above grew effective May 15, 2021 or as existing contracts permit, as follows: 1,4- Butanediol (BDO) - by USD0.15/lb; Gamma-Butyrolactone (GBL) - by USD0.15/lb; N-Methylpyrrolidone (NMP) - by USD0.15/lb; Tetrahydrofuran (THF) - USD0.25/lb; Polytetramethylene ether glycol (PolyTHF) - by USD0.25/lb.

BDO and its derivatives are used for producing engineering plastics, polyurethanes, pharmaceuticals, solvents and elastic spandex fibers.

As MRC reported earlier, Saudi chemical manufacturing company SABIC has signed a joint agreement with BASF and Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces. The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process. With this innovative approach focusing on one of the petrochemical industries’ core processes, the parties strive to offer a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical industry.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MR''s ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers 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) -- State-backed Sinopec Corp. has started a 5.17 billion yuan (USD811 million) refinery upgrade at a subsidiary plant in eastern China that aims to produce cleaner fuels and boost output of higher-value chemicals, reported Reuters.

The investment in Yangtze Petrochemical Corp, in Nanjing city in the province of Jiangsu, covers eight key facilities, such as a 2.6-million-tonne-per-year residue hydrocracker and a 2.8 MMtpy catalytic cracker.

“While maintaining the same crude processing capacity and without increasing emissions of pollutants, the upgrade will raise output of premium quality refined fuel,” the state refiner said on social media.

Construction is set to be completed in 2023.

As MRC informed previously, Sinopec is ready to launch its first green hydrogen project in Inner Mongolia next year as part of an effort to help meet its goal of becoming China’s top hydrogen company by 2025.

We remind that Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectively.

According to MR''s ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- SIBUR -Neftekhim and Linde Gas Rus signed agreements on implementation in 2021-2022. a project for the utilization of carbon dioxide (CO2) generated in the technological process of the Sibur enterprise in Dzerzhinsk, the company said.

SIBUR -Neftekhim will build an infrastructure for the transportation to the Linde Gas Rus site of crude CO2 obtained as a by-product in the process of ethylene oxide synthesis. In turn, Linde Gas Rus will build a unit to bring the quality of this gas to the level of a commercial product, applicable, among other things, in the food industry, and will sell it to end consumers.

Thus, it is planned to utilize about 25 thousand tons of 100% CO2 annually. All work, including at the SIBUR production site, will be performed by Linde Gas Rus under an EPC contract.

The implementation of the project is an integral part of SIBUR's sustainable development strategy, which provides for a 15% reduction in greenhouse gas emissions by 2025.

Earlier it was reported that production problems arose at the SIBUR ethylene glycol production facility in Dzerzhinsk at the end of February. Market sources said the problems were resolved in the middle of the week by 1 March.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

1. Global energy transition clouds oil-gas outlook despite post-pandemic boost this year

MOSCOW (MRC) -- Global energy transition is creating uncertainty for an estimated USD14 trillion worth of oil and gas assets that have long depended on an indefinite rise in demand to offset risks despite a pandemic boost this year, reported Reuters with reference to consultancy Wood Mackenzie's statement. As the world recovers from the COVID-19 pandemic, oil and gas demand is set to go beyond the record 160 million barrels of oil equivalent per day reached in 2019, it said in a report. “After six years of weaker prices, upstream is fitter and leaner than ever,” Woodmac said, adding that the sector will generate as much cash flow this year at USD60 per barrel as it did at USD100 prior to the 2014 price crash.

MRC

MOSCOW (MRC) -- South Korea's Lotte Chemical has shut its naphtha-fed steam cracker in Daesan for an annual maintenance, reported S&P Global.

Thus, the company began the turnaround at this cracker with the capacity of 1.1 million mt/year of ethylene and 550,000 mt/year of propylene on 15 May, 2021. Lotte expects to resume production at this facility on 23 June.

The maintenance at Lotte's Daesan cracker is likely to limit cargoes to China -- the biggest propylene buyer.

As MRC informed earlier, Lotte Chemical restarted its fire-hit naphtha-fed steam cracker in Daesan in early December, 2020. Thus, the facility began trial runs of naphtha on 7 December, 2020, and the company achieved commercial production on 8 December. The cracker was shut on March 4, 2020, following an explosion, which injured more than 30 people.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
MRC