LyondellBasell selected by Jiangsu Fenghai to supply technologies for polyolefin project in China

LyondellBasell selected by Jiangsu Fenghai to supply technologies for polyolefin project in China

MOSCOW (MRC) -- LyondellBasell announced it has been selected by Jiangsu Fenghai High-tech Materials Co. to supply the technologies for a polyolefin project to be built in Lianyungang, Jiangsu, China, according to Apic-online.

The new facility will include the production of 400,000-t/y polypropylene (PP), based on LyondellBasell?s Spheripol technology, and 300,000 t/y of high density polyethylene (HDPE) using its Hostalen ACP process.

Cost of the project and a completion date were not available.

"We are delighted that Jiangsu Fenghai has awarded LyondellBasell these substantial licenses for their first polyolefin project," said Neil Nadalin, director of licensing at LyondellBasell.

As MRC reported earlier, in August 2020, LyondellBasell (Rotterdam, the Netherlands) announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) has selected LyondellBasell’s world-leading PP and HDPE technologies for a new facility. The new plants will comprise of a PP plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr HDPE plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

SIBUR invests in modernization of a flare unit at Tomskneftekhim

SIBUR invests in modernization of a flare unit at Tomskneftekhim

MOSCOW (MRC) - SIBUR is investing Rb140 mln in the modernization of the flare unit at Tomskneftekhim as part of SIBUR's comprehensive environmental safety program, the company said in a statement.

In 2022, at the monomer production of the Tomsk enterprise of SIBUR, it is planned to modernize the flare unit with the replacement of the existing tip with a tip with an improved combustion system, which will minimize the effect of dense smoke.

Work on the modernization of the flare unit is scheduled for August 2022 during the scheduled shutdown repair of the production complex. The manufacturer of the flare cap for SIBUR's Tomsk plant is John Zink Hamworthy Combustion (JZHC), one of the world's leading suppliers of equipment for combustion systems, the main concepts of which are to reduce emissions and ensure clean air.

The flare system upgrade is part of SIBUR's comprehensive environmental safety program. At the moment, treatment facilities have been built or reconstructed in Kstovo, Perm, Tobolsk, flare systems in Perm and Tobolsk. Over the past ten years, the company has invested 23 billion rubles in environmental protection measures.

Earlier it was noted that TNH received revenue in the amount of 12.8 billion rubles in 2020, which is almost 400 million less than a year earlier. "Revenue (OOO Tomskneftekhim at the end of 2020) - 12.8 billion rubles (in 2019 - 13.2 billion). Net profit (amounted to) 1.7 billion rubles. (In 2019 - 1.9 billion ) ", - says the report of the company. It also follows from the document that Tomskneftekhim in 2020 reduced the number of personnel by 11% - to 1,449 thousand people, the volume of the payroll in this regard decreased by 16% - to 163.8 million rubles.

It was also reported that Tomskneftekhim last year increased the production of polypropylene (PP) to 149.7 thousand tons of granules, which is 1.7% more than in 2019. The volume of production of high-density polyethylene (LDPE) in 2020 amounted to 267.4 thousand tons, which is 1.9% more than the same indicator a year earlier.

According to the ScanPlast of MRC, Tomskneftekhim last month produced about 13,300 tonnes of propylene polymers against 12,800 tonnes a month earlier. During the period under review, the production of polypropylene at the Tomsk enterprise reached 64,800 tonnes, which is 1% more than in 2020.

LLC "Tomskneftekhim" was opened after the transformation of TNHK in 2003. It is a subsidiary of PJSC SIBUR-Holding, which is one of the backbone enterprises of the Russian Federation. At the end of 2019, the authorized capital of Tomskneftekhim amounted to 6.5 billion rubles, sales revenue - 13.2 billion rubles, net profit - 1.9 billion rubles.
MRC

COVID-19 - News digest as of 20.07.2021

1. Russian rouble, stocks down as oil retreats on OPEC+ output boost

MOSCOW (MRC) -- The rouble weakened to a one-week low against the dollar at one stage losing almost 1%, hit by retreating oil prices after OPEC+ overcame internal divisions and agreed to boost output, a move that also sent Russian stocks tumbling, reported Reuters. By 1529 GMT, the rouble was 0.8% weaker against the dollar at 74.63, a one-week low, and had lost 0.8% to trade at 88.16 versus the euro. Brent crude oil, a global benchmark for Russia's main export, was down 5.4% at USD69.60 a barrel. Oil prices were lower after OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices which have climbed to 2-1/2 year highs as the global economy recovers from the coronavirus pandemic.

MRC

Yansab to restart PP and PE plants after unscheduled repairs

Yansab to restart PP and PE plants after unscheduled repairs

MOSCOW (MRC) -- Yanbu National Petrochemical Company (Yansab), part of Saudi Basic Industries Corporation (Sabic), is planning to restart its polypropylene (PP), linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) plants on 23 July, 2021, after an unplanned turnaround, reported Agraam with reference to the company's statement in a bourse filing.

Based in Yanbu, Saudi Arabia, the company has PP, LLDPE and HDPE plants with production capacity of 400,000 tons/year each, which were temporary shut on 11 July, 2021, due to technical issues.

The petrochemical producer is currently working on repairs and necessary maintenance. Thus, the shutdown is expected to continue for 12 days.

As MRC informed earlier, in 2021, the company conducted a scheduled turnaround at these plants from 5 to 15 February.

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.
MRC

OPEC+ deal, COVID-19 fears send NYMEX crude plunging for biggest single-day drop since the historic April 20, 2020

OPEC+ deal, COVID-19 fears send NYMEX crude plunging  for biggest single-day drop since the historic April 20, 2020

MOSCOW (MRC) -- A new OPEC+ deal to hike production volumes this year and throughout 2022 combined with rising COVID-19 fears and a broad Wall Street selloff sent crude prices plunging July 19 for the biggest single-day drop since the historic April 20, 2020, negative pricing event, reported S&P Global.

Front-month NYMEX WTI plummeted more than 7%, down USD5.39, to settle at USD66.42/b, while ICE September Brent shed USD4.97 to settle at USD68.62/b.

NYMEX August RBOB fell by 14.32 cents to USD2.1104/gal, and August ULSD dropped 12.81 cents to USD1.9852/gal.

The Dow Jones Industrial Average nosedived by more than 900 points during July 19 New York trading as rising fears of the rapidly spreading COVID-19 delta variant triggered a market selloff. Energy futures were doubly shaken by the July 18 OPEC+ deal that not only returns crude production through the rest of 2021, but also throughout 2022. Adding additional tensions, the US and China are clashing over the US and NATO allies accusing China of major cybersecurity hacks.

OPEC+ is striving for a reasonably balanced market by ending its stalemate with the United Arab Emirates, according to energy analyst Bill Herbert of Simmons Energy, but the new deal also allows for Saudi Arabia, Russia and others to push their production volumes above pre-pandemic levels next year.

The deal allows OPEC and its allies to ease production cuts by 400,000 b/d each month starting in August, amounting to a 2 million b/d total increase by the end of the year. The deal also extends the OPEC+ supply management pact to the end of 2022, from its previous expiry of April 2022.

And none of this is occurring in a vacuum since the vast majority of the world remains unvaccinated while the coronavirus delta variant spreads worldwide from Asia to North America.

"The world needs a reality check," World Health Organization epidemiologist Maria Van Kerkhove recently said, arguing the world is moving further away from the end of the pandemic.

New infections have spiked in much of Asia, Europe, Australia and Africa, with Indonesia becoming a major new hot spot, while US COVID-19 cases surged by about 70% last week, fueled by the delta variant.

As MRC informed earlier, China's crude oil imports fell 3% from January to June versus a year earlier, in the first first-half contraction since 2013, as an import quota shortage, refinery maintenance and rising global prices curbed buying. Imports totalled 40.14 million tonnes last month, data released by the General Administration of Customs showed on Tuesday, equivalent to 9.77 million barrels per day (bpd).

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC