Formosa expands cumene and phenol plant in China using Lummus technology license and engineering design

MOSCOW (MRC) -- Lummus Technology has achieved successful plant acceptance from Formosa Chemicals and Fibre Corp. for the company's cumene and phenol plant expansion in Ningbo, China, according to Hydrocarbonprocessing.

The expansion was to an existing 450 kMTA cumene and 300 kMTA phenol plant, which now has a 600 kMTA cumene and 400 kMTA phenol capacity.

"We are proud that this plant has successfully demonstrated reliable operation since its first start-up," said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. "Formosa's acceptance is another milestone in our long and close relationship that spans multiple decades. During this time, Lummus has provided world-class technology solutions to Formosa and helped them achieve reliability, optimization and superior performance at their facilities, while also lowering their carbon footprint."

The original plant was licensed in 2010 by Lummus. In 2017 Lummus was selected again by Formosa to provide the technology license and engineering design of the cumene and phenol plant expansion.

Versalis/Lummus' cumene and phenol technologies are best-in-class process technologies that leverage the design, operating and research experience of both organizations.

Phenol produced using the Versalis/Lummus process has the lowest carbon footprint due to lower overall energy consumption among available phenol technologies. The phenol process is an intrinsically safe and highly reliable wet-oxidation process. It utilizes advanced technology features, which not only maximize the phenol/acetone product yields and produce a very high purity phenol/acetone products but also results in the lowest cost of production per MT of phenol.

As MRC wrote before, in July 2021, Lummus Technology and Chevron Lummus Global LLC (CLG) announced multiple technology contracts from North Huajin Refining and Petrochemical Co., Ltd. for a grassroots refinery and petrochemical complex in Liaoning Province, China. The complex will include one of the largest vacuum residue desulfurization (VRDS) units in China and one of the largest Novolen polypropylene (PP) plants. Lummus will provide the license and basic engineering for its Novolen PP technology, plus the associated catalysts. CLG will provide the license and basic engineering for the VRDS technology, plus proprietary reactor internals and catalysts.

Phenol is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PC granules totalled 50,300 tonnes in the first half of 2021 (excluding imports and exports to/from Belarus), compared to 47,300 tonnes a year earlier. Demand increased by 6%.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- China Petroleum & Chemical Corp reported a 39.15 billion yuan (USD6.05 bn) net profit for the first six months of 2021 on the back of renewed fuel demand and a rebound in oil prices amid a recovery from the impact of COVID-19, said Reuters.

Asia's biggest oil refiner, known as Sinopec, posted a 23 billion yuan loss during January-June last year as the coronavirus pandemic walloped fuel demand and knocked oil prices. The 2021 interim profit compares with a 31.338 billion yuan profit in the same period in 2019.

Revenue in the first six months rose 22.1% from last year's low base to 1.26 trillion yuan, following a recovery in global oil prices and robust demand for fuel and petrochemical products.

During the period, Sinopec processed a total of 126.11 million tonnes crude oil, up 13.7% on a year earlier, with gasoline output increasing by 20.8% as more people drove as China recovered from the COVID-19 shock.

As per MRC, Sinopec, the world's petrochemical major, has launched the first phase of the Gulei refining complex in Zhangzhou city in China’s southeastern Fujian province. The refining complex, a 50:50 joint venture between Sinopec’s Fujian Petrochemical Company Ltd and Taiwan Xuteng Investment Company Ltd, invested 27.8 billion yuan (USD4.28 billion) in the first phase.

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.

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) -- Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, and Bunge North America, Inc., a subsidiary of Bunge Limited (NYSE: BG), announced today a memorandum of understanding (MOU) of a proposed 50/50 joint venture to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks, said the company.

Upon finalization of the joint venture, Chevron and Bunge’s partnership would establish a reliable supply chain from farmer to fueling station for both companies. Bunge is expected to contribute its soybean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron is expected to contribute approximately $600 million in cash to the joint venture. Through the joint venture, the two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tons per day by the end of 2024. The joint venture would also pursue new growth opportunities in lower carbon intensity feedstocks, as well as consider feedstock pretreatment investments.

“As the world’s largest oilseed processor, we are pleased to expand our partnership with an energy industry leader to increase our participation in the development of next generation, renewable fuels. Together, we share a commitment to sustainability and reducing carbon in the energy value chain. This relationship with Chevron would enable Bunge to better serve our farmer customers by accessing demand in the growing renewable fuels sector,” said Greg Heckman, Bunge CEO.

Under the proposed joint venture arrangement, Bunge will continue to operate the facilities, leveraging its expertise in oilseed processing and farmer relationships to manage origination and marketing of meal and plant-based oil. Chevron would have offtake rights to the oil to use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity, in addition to providing market knowledge and downstream retail and commercial distribution channels.

“Through our commercial work with Bunge, we have come to appreciate their strong company culture, their strategic desire to advance the production of lower carbon fuels, their commitment to capital discipline and promotion of sustainable agriculture in their supply chains,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron. “Chevron’s proposed joint venture with Bunge positions us to expand into the renewable fuel feedstock value chain, which will advance our higher returns, lower carbon strategy."

The creation of the proposed joint venture is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.

As per MRC, Chevron and other partners said they are investing in a startup to build modular waste-to-green hydrogen and renewable synthetic fuel facilities in northern California with tentative plans to eventually grow worldwide. The USD20 million investment in Wyoming-based Raven SR is focused on technology to develop combustion-free, green hydrogen for transportation that is cleaner than so-called blue hydrogen derived from natural gas.

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) -- Trinseo, a global materials company and manufacturer of plastics and latex binders, has announced the completion of the previously disclosed transaction to acquire Aristech Surfaces LLC, a leading North America manufacturer and global provider of polymethyl methacrylates (PMMA) continuous cast, solid surface and architectural resin sheets serving the wellness, architectural, transportation and industrial markets, as per the company's press release.

This acquisition is another important step in Trinseo’s transformation efforts, focused on becoming a global specialty materials and sustainable solutions provider. The addition of Aristech strengthens Trinseo's position in acrylic solutions and broadens the company’s product portfolio offerings in important markets such as building and construction as well as consumer goods. Additionally, Aristech is expected to accelerate Trinseo’s growth in Asia. The increased exposure to new markets, and improved ability to generate cash and stable margins, is expected to ultimately lead to greater growth opportunities.

The acquisition includes the addition of approximately 300 employees across two manufacturing and R&D locations in Florence, Kentucky and Belen, New Mexico.

Aristech will continue to operate as a stand-alone entity within the Engineered Materials segment, while Trinseo continues the integration of the PMMA business it purchased earlier this year.

As MRC reported earlier, in May, 2021, Trinseo announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

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.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

MOSCOW (MRC) -- ExxonMobil rejected three proposals in August made by the union representing 650 locked-out workers at the company’s Beaumont, Texas, refinery, reported Reuters with reference to the company's statement.

“Over 120 days have passed since the initiation of the lockout, and the union has not presented an offer that came close to meeting the company’s objectives,” Exxon said in a message posted its website.

A spokesperson for the United Steelworkers union (USW) local 13-243, which represents the locked-out workers, was not immediately available for comment.

Exxon locked out the hourly employees at the 369,024 barrel-per-day refinery and adjoining lubricant oil plant on May 1 to avoid a strike as a 75-day labor peace period came to an end following the expiration of the contract.

The USW has said the company's last proposal, made in January, requires its members to give up long-standing seniority and would create a separate contract for workers in the lube oil plant from that for workers in the refinery.

As MRC informed earlier, in July, 2021, ExxonMobil began hiring additional temporary operators of its Beaumont, Texas refinery as a lockout of 650 union-represented workers runs into its 11th week. Exxon said then it took the decision to hire the new workers after four meetings with the United Steelworkers (USW) union local 13-243 failed to yield the results the company expected.

We remind that in mid-summer, 2021, ExxonMobil's Beaumont, Texas refinery was operating at about 60% of its 369,024-bpd capacity because of the lockout of union workers.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC