Sabic and Fujian Petrochemical to build mega petrochemical complex

MOSCOW (MRC) -- Riyadh-based global chemical company Sabic has inked a joint venture contract with China's Fujian Petrochemical Industrial Group Co., Ltd (FJPEC) to build a world-class mega petrochemical complex in China, said Hydrocarbonprocessing.

With a total investment of 40 billion yuan (about USD6.18 bn), the complex will be built at Gulei Industrial Park in Zhangzhou city, east China's Fujian Province. It will consist of a mixed feed steam cracker that holds an annual ethylene capacity of 1.5 m tonnes, as well as a series of downstream facilities including a mono ethylene glycol (MEG) unit, two polyethylene (PE) units, two polypropylene (PP) units, one polycarbonate (PC) unit and several by-product units.

Sabic announced in September 2018 that it had signed a Memorandum of Understanding (MoU) with the Fujian provincial government to build a world-class petrochemical complex in China's southeastern province.

Fuhaichuang Petrochemical, formerly Dragon Aromatics (Zhangzhou), relaunched its 1.6Mtpa paraxylene plant and 4.5Mtpa purified terephthalic acid (PTA) plant in Guley in December 2018 following a stopover that lasted more than three and a half years.

Dragon Aromatics was restructured in October 2017 into Fujian Fuhaichuang Petrochemical, which is 90% owned by China's Fuhua Gulei Petrochemical and 10% by Taiwan's Xianglu Group, the previous owner of Dragon Aromatics.

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.

Fuhua Gulei is a joint venture between Fujian Petrochemical Group, funded by the Fujian government, and the local Jiulongjiang Group in Zhangzhou, a metropolitan area in Fujian province.

Sabic is a diversified company manufacturing chemicals, industrial polymers, fertilizers and metals. It is the largest state-owned company in Saudi Arabia. Sabic is currently the world's second largest producer of ethylene glycol, the third largest polyethylene producer, and the fourth largest polypropylene producer.
MRC

MOSCOW (MRC) -- EPC Engineering & Technologies GmbH has been selected as technology licensor by ChiMei Corporation and its subsidiary Zhangzhou CHIMEI Chemical Co., Ltd. for a new 180 KTPA Polycarbonate Project to be located in Zhangzhou, China, said the company.

EPC will provide a license for its patented EPC variPLANT Technology and proprietary equipment to CHIMEI and will also deliver engineering and onsite support for this project.

EPC is proud to announce this cooperation with ChiMei, a world-class advanced polymer materials, synthetic rubbers, and specialty chemicals producer. The new 180 KTPA plant will further add-on to ChiMei?s existing polycarbonate production capacity. The polycarbonate plant is expected to be completed in Q4 of 2024.

EPC’s proprietary Polycarbonate Production Technology – variPLANT is a non-phosgene melt-transesterification process using BPA and DPC as the primary feedstock.

EPC's Circular Economy Concept is an integral part of the overall plant design and together with high process flexibility and reliability provides ChiMei with the most modern and efficient polycarbonate production process on the market.

Zhangzhou Chimei also intends to launch an acrylonitrile butadiene styrene (ABS) plant with a capacity of 450 thousand tons per year at this site. In the future, the ABS capacity will be increased to 600,000 tonnes per year.

According to the company, later a line for the production of polystyrene (PS) with a capacity of 350,000 tonnes per year will also be launched, and then another new plant for the production of PC.

According to the ICIS-MRC Price Report, in Russia prices for PC manufactured by Kazanorgsintez in July remained unchanged at Rb300,000/tonne, FCA plant, including VAT.

Zhangzhou ChiMei Chemical is a subsidiary of Taiwanese Chi Mei Corp.
MRC

MOSCOW (MRC) -- Petrobras took first place in the Oil and Gas category of the Top Open Corps ranking, which awards companies that most interact with the open innovation ecosystem in the country, said Bnamericas.

The company has been betting on this segment, through the Petrobras Connections for Innovation Program, which, this year, launched a public notice with investments in the amount of R$ 22 million. The research that supports the ranking shows that the number of open innovation relationships between corporations and startups has doubled this year compared to 2020. The five companies in the Oil and Gas category best placed in the category were responsible for 67% of these interactions.

The survey considers the number of open innovation relationships based on data provided by companies and startups, relative to the previous year, which are audited. Each form of interaction is given a weight, according to the forms of relationship, from the first contact to the provision of services. According to the organization of the award, compared to last year, corporations with contracts with startups increased from 1,968 to 3,334, recording a growth of 69%.

“I am very proud of this recognition in light of everything we are doing in our innovation ecosystem. Our Open Innovation Program is enabling us to achieve incredible results for the company. We are a reference in what we do, but we want to go even further”, celebrated the director of Digital Transformation and Innovation at Petrobras, Nicolas Simone.

The Petrobras Connections for Innovation Program is the largest program focused on open innovation in the country and is part of Petrobras' objective of stimulating the generation of innovations with a high potential for impact and efficiency gains in areas of interest to the sector. For this, just in the notice of the Startups module, in the analysis phase of the submitted proposals, the company will invest in solutions of up to R$ 500 thousand and up to RD 1.5 million, depending on the category of the challenge (soft or deep tech). In addition to the Startups module, the company launched the Solution Testing modules, aimed at startups and other innovative companies that have technological solutions and wish to test them quickly; Challenges, with opportunities mapped from internal demands that are periodically disclosed and Ignition, in partnership with PUC-Rio.

Petrobras relates to the innovation ecosystem not only through startups, but also in partnerships with universities, Science and Technology Institutions (ICTs), in Brazil and abroad, and other companies.

As MRC reported earlier, Petrobras has announced the sale of its second facility. The state-owned company has signed a contract with Ream Participacoes, which belongs to the distributor Atem, for the sale of the Isaac Sabba (Reman) refinery and the associated logistics facilities in the state of Amazonas. The sale value is USD189.5 million. Of this, USD28.4 million will be paid upon signature of the contract and the remaining USD161.1 million upon closing of the transaction. Atem is a distributor in the north of the country.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

MRC

MOSCOW (MRC) -- Oil prices increased and were on track to post big gains for the week on worries about supply disruptions as energy companies began shutting production in the Gulf of Mexico ahead of a possible hurricane forecast to hit on the weekend, reported Reuters.

Brent crude futures were USD1.22, or 1.7%, higher at USD72.29 a barrel at 1355 GMT. US West Texas Intermediate (WTI) crude futures climbed USD1.36, or 2%, to USD68.78 a barrel.

For the week, Brent was on track for a rise of 11%, its biggest weekly jump since June 2020. WTI was headed for a weekly gain of more than 10%, also the strongest since June 2020.

"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA, said.

Companies started airlifting workers from Gulf of Mexico oil production platforms on Thursday and BHP and BP said they had begun to stop production at offshore platforms as a storm brewing in the Caribbean Sea was forecast to barrel through the Gulf on the weekend.

Gulf of Mexico offshore wells account for 17% of US crude oil production and 5% of dry natural gas production. Over 45% of total US refining capacity lies along the Gulf Coast.

The prospect of US Gulf supply outages helped turn the market around from losses on Thursday, which had been partly spurred by output returning at a Mexican oil platform following a fatal fire.

"The market may have more immediate concerns, with a storm building in the Caribbean. It's expected to become a powerful hurricane and potentially wreak havoc in the Gulf of Mexico and Texas early next week," ANZ Research said in a note.

As MRC informed earlier, BP raised Aug. 3 its 2025 oil price assumption by USD5/b to USD60/b to reflect an expected supply constraint, while promising a recovery in its own production volumes following a maintenance-related slump in the second quarter.

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.
MRC

MOSCOW (MRC) -- Brazil's state-run oil company Petrobras, formally known as Petroleo Brasileiro SA, said it had failed to secure a buyer for the Abreu e Lima (RNEST) refinery after the interested firms declined to offer a bid, reported Reuters with reference to the company's file.

Petrobras said it would end the sale process, and analyze its next steps.

As MRC wrote before, last week, the company signed a contract to sell the REMAN refinery in the northern state of Amazonas for USD189.5 million to Ream Participacoes S.A., a subsidiary of distributor Atem. For the REMAN refinery, the second it has agreed to sell of eight that were put up for sale, Petrobras said it would receive US28.4 million upfront with the rest paid when the deal closes. The REFAP, REGAP, LUBNOR, and SIX units are still trying to attract buyers, Petrobras said.

Besides, earlier this month, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC