Explosion on Pemex offshore platform injured six people

MOSCOW (MRC) -- At least one person died and five more are missing due to a fire that erupted on an offshore platform run by Petroleos Mexicanos (Pemex) in the southern Gulf of Mexico, the Mexican state oil and gas company said, as per Reuters.

Three Pemex workers were injured and another was in a state of nervous shock, the company said in a statement. In addition, one Pemex worker died in the incident, it added.

Three workers of a contracting firm, Mexican oil services company COTEMAR, were injured and three more were missing, and another two from a firm named as Bufete de Monitoreo de Condiciones e Integridad were also missing, Pemex said.

Mexican President Andres Manuel Lopez Obrador expressed his sorrow at the incident at his daily morning news conference.

Pemex said it would investigate what caused the blaze at the E-Ku-A2 platform at the Ku-Maloob-Zaap oil field in the Bay of Campeche, which was brought under control on Sunday afternoon.

As per MRC, Pemex Petroquimica, a subsidiary of the Mexican state oil company Pemex, has resumed production of high-density polyethylene (LDPE) on line 2 in Cangrejera, Mexico after an unscheduled renovation. Earlier it was noted that Pemex postponed the restart of the second line with a capacity of 200,000 tonnes per year for the production of LDPE until August 10. It was originally planned that the launch of this production will begin at the end of July. The line was closed on 10 July.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Petroleos Mexicanos (Pemex) is a Mexican state-owned oil and gas and petrochemical company. Since the nationalization of the Mexican oil industry in 1938, Pemex has remained a state-owned company and, by law, has exclusive rights to explore and produce oil in the country. Almost 60% of the company's revenues go to the state budget. Petrochemical products include, but are not limited to, polyethylene, polyvinyl chloride.
MRC

MOSCOW (MRC) -- W. R. Grace & Co. a leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, has licensed its UNIPOL PP Process Technology to GAIL (India) Limited, according to Hydrocarbonprocessing.

The UNIPOL PP process technology will be used for a 60 KTA PP plant located at their existing petrochemical complex in Pata, India.

Mr. Shri M. V. Iyer, Director of Business Development, said, “We are excited to partner with Grace and their UNIPOL® PP Process Technology at our existing gas cracker complex in Pata, India. The total project economics, which included a catalyst supply agreement, made this an easy choice for us. We plan to produce a variety of homo-, random, and impact- copolymer resins using our existing propylene supply.”

Grace's all gas-phase UNIPOL PP Process delivers technology, innovation, and services for plant lifetime performance. The versatile process technology provides the broadest range of PP homopolymers, random copolymers, and impact copolymers in the industry.

As MRC reported before, GAIL India Ltd restarted its polyethylene 400,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant in Pata, Uttar Pradesh just a couple of days after the company shut down the unit on 25 September 2020 due to feedstock supply disruption.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

1. Marathon forms JV with Archer-Daniels-Midland for renewable fuels feedstock

MOSCOW (MRC) -- Marathon Petroleum Corp and Archer-Daniels-Midland Co announced a joint venture to produce soybean oil that will be exclusively sold to Marathon as a renewable diesel feedstock, according to Hydrocarbonprocessing. Refiners are on the hunt for secure access to feedstocks for renewable fuels amid supply constraints and soaring prices for fats, greases and oils.

MRC

MOSCOW (MRC) -- OxyChem, the chemical division of Occidental Petroleum, will shutter its chlor-alkali plant in Niagara Falls because of poor market conditions and high costs to move products out via rail, reported S&P Global with reference to the company's statement on Aug. 19.

"This decision was made due to unfavorable regional market conditions as well as unreasonable and continually escalating rail transportation costs," the company said in a statement.

OxyChem did not say when the plant would shut down, but sources familiar with company operations said the shutdown was expected to occur 90 days from the Aug. 19 announcement, which would be November.

That announcement said plant employees would continue to receive pay and benefits for at least three months. The company said the plant continues to have a negative economic outlook despite significant efforts in recent years to "give this facility the opportunity to be viable."

According to Occidental's 2001 annual filing with the US Securities and Exchange Commission, the Niagara Falls plant can produce 335,000 mt/year of chlorine and 371,000 mt/year of caustic soda. The company stopped specifying individual plant capacities in SEC filings after that, instead reported total output per product.

Market sources said rail transportation of chlorine was costly given the volatility of the product, particularly for short routes. Such freight costs can range from USD125-USD200/st on an average, sources said. Other less volatile products, such as plastic resins, see rates around $66/mt, depending on contract terms.

"It's a major hit on chlorine profitability," a source said.

Another source said rates for chlorine could be at a point where producers seek to reduce how much product they move via rail, focusing on moving it via pipeline. Truck transportation is not a viable option given chlorine's volatility, said the same source, adding that it would be more expensive than rail transportation.

Olin, the world's largest chlor-alkali producer, aims to step back from supplying chlorine for titanium dioxide producers in 2023 as part of a company strategy to exit low-margin contracts and sell into higher-paying markets, according to CEO Scott Sutton. Market sources said high rail rates for chlorine could have helped prompt that decision.

And titanium dioxide producer Tronox's co-CEO, John Romano, said July 29 that the company may build more of its own chlorine production operations in the US amid a chlorine supply squeeze and logistics snags that have reduced its Ti02 production capabilities.

Chlorine is the first link in the production chain for polyvinyl chloride, a construction staple used to make pipes, window frames, vinyl siding and other products. Chlorine is also used to make hydrochloric acid, bleach, refrigerants, crop protection sprays and for water treatment.

Caustic soda, a byproduct of chlorine production, is a key feedstock for alumina and pulp and paper industries.

As MRC informed earlier, Occidental Petroleum sees continued strong demand for construction staple polyvinyl chloride (PVC) and caustic soda through the rest of 2021, driven largely by tight supply, homebuilding growth and continued global economic recovery from COVID-19 fallout, according to CFO Robert Peterson's statement Aug. 4.
Peterson said the company sees domestic PVC demand up 16% from Q2 2020, and up 13% from pre-pandemic 2019, he said during the company's Q2 2021 earnings call.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Occidental Petroleum Corporation (OxyChem) is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. Oxychem is Oxy's Texas-based subsidiary which manufacture polyvinyl chloride (PVC) resins, chlorine and caustic soda used in plastics, pharmaceuticals and water treatment chemicals.
MRC

MOSCOW (MRC) -- Malaysia's Sime Darby Plantation (SDP) said that it has agreed with PTT Global Chemical (PTTGC) to divest their collective 100% equity interest in the Asia Pacific business of Emery Oleochemicals and Emery Specialty Chemicals to Edenor Technology in a deal worth ringgit (MD) 38m (USD9m).

EOM, ESC and its respective subsidiaries, collectively referred to as Emery Group, is a 50:50 JV between Sime Darby Plantation and PTTGC.

In a filing Sime Darby Plantation said it has, together with PTTGC, inked a sale and purchase agreement to divest their collective stake in Emery Group to Edenor Technology for a target equity value of RM38 million.

"The equity consideration of RM38 million is derived based on enterprise value of RM243 million less the target net debt of RM205 million. The final sale consideration will be subject to price adjustments based on the net working capital and net debt position of EOM and ESC at completion," it said.

Edenor Technology is a JV company jointly incorporated by Mega First Corp Bhd and 9M Technologies Sdn Bhd to undertake the proposed acquisition. Sime Darby Plantation noted that the divestment is conditional upon the restructuring of Emery Group into separate stand-alone groups in respect of its Asia-Pacific business, and the North America and Europe businesses.

"Post restructuring, Emery Group's Asia-Pacific business will remain under EOM and ESC, while its North America and Europe businesses, both held under Emery Oleochemicals UK Ltd, will be transferred out from EOM, to be held directly by Sime Darby Plantation and PTTGC on a 50:50 basis," it added.

The group said the divestment is not expected to have a material effect on its earnings, consolidated net assets and consolidated gearing for the financial year ending Dec 31, 2021. Sime Darby Plantation's share price closed six sen or 1.56% lower at RM3.79 on Thursday, valuing the group at RM26.21 billion.

As MRC wrote previously, PTTGC abruptly shut down three crackers at its petrochemical complex in Map Ta Phut on 14 April 2021 after a thunderstorm caused a power outage. No. 1 and 4 crackers and the recently launched No. 5 cracker on the site were off-line for around one week. The production capacities of No. 1 and 4 crackers are 461,000 and 515,000 mt/year of ethylene, whereas the new cracker can produce 500,000 mt/year of ethylene and 260,000 mt/year of propylene.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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