Stavrolen resumes PE production

MOSCOW (MRC) -- Stavrolen, Russia's major polyolefins producer, has begun a gradual resumption of its high density polyethylene (HDPE) production after shutdown for a scheduled turnaround, according to ICIS-MRC Price report.

The plant's clients said Stavrolen began a sequential resumption of it HDPE production after the scheduled maintenance on 17 November. The outage was quite long and lasted for over 30 days. The plant's annual production capacity is 300,000 tonnes.

Thus, the cycle of this year's scheduled turnarounds of Russian producers came to an end.

As reported earlier, Stavrolen fully resumed its polypropylene (PP) production after repairs on 11 November. The outage lasted for 26 days. The plant's annual production capacity is 120,000 tonnes.

Stavrolen, Lukoil's subsidiary, is Russia's second largest high density polyethylene (HDPE) producer after Kazanorgsintez and the fifth largest PP manufacturer. Stavrolen's HDPE and PP production capacities are 300,000 tonnes and 120,000 tonnes per year, respectively, the plant also produces 80,000 tonnes of benzene and 50,000 tonnes of vinyl acetate per year.
MRC

MOSCOW (MRC) -- Russia's Gazprom Neft said Nov. 18 it would hit its long-standing goal of reaching annual hydrocarbons output of over 100 million mt of oil equivalent in 2021, reported S&P Global.

The company was seeking to reach this target despite oil production limitations under the OPEC + pact by diversifying gas and condensate portfolio.

The company's output of hydrocarbons totaled 96.1 million mt in 2020, or 1.95 million b/d of oil equivalent.

"For the full year, the company is expected to produce over 100 million mt of oil equivalent for the first time in its history, with further growth potential next year," CEO Alexander Dyukov said in a release.

Gazprom Neft "proactively" boosted hydrocarbons production in the third quarter, he added, amid recovering demand for oil.

In accordance with OPEC + efforts to counter the impact of the coronavirus pandemic, the company cut oil output to about 1.06 million b/d in May 2020, compared to 1.33 million b/d in April 2020, when the deal was not yet in effect, according to the energy ministry's data.

Dyukov previously said Gazprom Neft could increase oil output by over 10% in 2022, depending on quotas set by the Russian energy ministry.

As MRC wrote previously, Gazprom Neft could increase oil production in 2020 by 10% year on year, said the company's CEO Alexander Dyukov on Oct. 14.

We remind that in August, 2021, Gazprom Neft redeemed BO-01 and BO-04 series bonds ahead of schedule on 24 August. Bonds were repaid ahead of schedule at the outstanding part of the par value, while the coupon yield was paid for the coupon period, on the date of payment of which the securities are repaid ahead of schedule. Bond issues with a total par value of Rb15 bln. were placed in 2016 with maturity in 2046.

Gazprom Neft (headquartered in St. Petersburg, part of Gazprom, which owns 95.68% of its shares) is one of the largest Russian oil companies. In 2015, Gazprom Neft remained one of the leaders in the oil industry in terms of key performance indicators - the level of operating profit and return on invested capital. In 2015, Gazprom Neft produced 79.7 mln tonnes of hydrocarbons, increasing production by more than 20% compared to 2014 and thus achieving the highest production growth in the Russian oil industry.

Gazpromneft - Moscow Oil Refinery is a subsidiary of Gazprom Neft. The plant's production capacity is 12.15 mln tonnes/year of hydrocarbons. The company produces motor gasolines, diesel, marine and aviation fuel, fuel oil, high-octane additives to motor gasoline, bitumen and gases for various purposes, as well as polypropylene (PP). And in 2010, Moscow Oil Refinery and SIBUR created a joint venture for PP production - NPP Neftekhimiya LLC.
MRC

MOSCOW (MRC) -- China's Shandong province has ordered its refineries, including three plants under state-run Sinochem Holdings, to self-inspect and self-rectify any irregular fuel tax practices, a document reviewed by Reuters on Thursday showed.

The move is part of a national clamp-down on smaller and mostly independently run refineries related to crude oil import quota usage and tax payments, as Beijing works to consolidate its bloated industry.

The plants were asked to complete a self-check and come up with rectification plans within five days from Nov. 15, the document, issued by the provincial government of Shandong, said.

The provincial government of Shandong, which is home to some 60 independent refineries, did not immediately respond to a request seeking comment.

Sinochem did not immediately respond to an email request for comment.

Shandong authorities did not elaborate in the document on how many refineries are included in this round of inspections, but stated that plants should reveal all relevant irregular tax issues dating back to January 2019.

"In the case of failing to submit factual reports on time, the highest degree of punishment will be applied and relevant individuals will be held responsible according to relevant laws," the document said.

A special audit team has been dispatched to three Sinochem plants, according to the document, without naming the plants or giving any details of their tax situation.

Two industry sources suggested that Changyi refinery, Huaxing refinery and Zhenghe refinery, with a combined annual primary crude oil processing capacity of 20 MM tons (400,000 bpd), might be among those under scrutiny. The three plants are under China National Chemical Company, or ChemChina, which was merged earlier this year with state-run Sinochem Group to form a new entity called Sinochem Holdings.

As MRC informed before, in February, 2020, ChemChina annnounced plans to invest CNY50 billion in the construction of a cracking unit in Dongying, Shandong Province. If approved by the government, ChemChina will build its first cracker.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

MOSCOW (MRC) -- Chinese petrochemicals corporation Jiangsu Sailboat Petrochemicals Co. ltd has signed an agreement with Icelandic technology company Carbon Recycling International - CRI hf., to design a chemical plant based on CRI’s Emissions to Liquids (ETL) technology, according to Hydrocarbonprocessing.

The plant will recycle approximately 150,000 metric tons of CO2 and 20,000 metric tons of H2 per yr from other onsite processes to produce 100,000 tons of methanol annually.

The Jiangsu Sailboat Green Methanol plant will be built in Lianyungang, Jiangsu province on the east coast of China, integrated into their 15 km2 Shenghong petrochemical industrial park.

Methanol is the main raw material used in Jiangsu Sailboat’s existing 2.4 MM metric tons per year production of a wide product range of polymers and plastics. These include products used for making solar panels and plexiglass.

The CRI ETL plant’s direct use of 150,000 metric tons of CO2 annually, will equal the effect of taking 53,000 fossil fueled cars off the roads. Indirect emission savings from avoiding the use of fossil raw materials is even larger, estimated to be as high as 550,000 tons per year. This is equivalent to 37,000 hectares of forest planting area, or 370 square kilometers of land.

The plant will be owned and operated by Jiangsu Sailboat and is expected to begin its operation in 2023. The cost of the project is estimated around USD35 MM (RMB 225 MM).

This project will be the second in China based on CRI’s ETL technology. The first CRI project, the Shunli plant in Anyang, Henan province, is currently in the final stages of construction and expected to be in operation early next year.

As MRC reported earlier, in July 2021, LyondellBasell announced that Jiangsu Sailboat Petrochemical Co. Ltd. will use again LyondellBasell Lupotech T high-pressure polyethylene technology at their facility located in Lianyungang City, Jiangsu Province, P.R. of China. The process technology will be used for a 200 KTA ethylene vinyl acetate copolymer (EVA) and low-density polyethylene (LDPE) line to produce EVA products with vinyl acetate comonomer.

In 2013, Jiangsu Sailboat Petrochemical Co. Ltd. (JSPCL) also selected LyondellBasell’s Lupotech T and Lupotech A process technologies for a new plant scheduled to be built in Lianyungang, China.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

MOSCOW (MRC) - The Belarusian petrochemical company Mogilevkhimvolokno is at full capacity, orders are scheduled until the end of the year, BelTA informs.

“The situation with the coronavirus and the pandemic did not play a negative role for the enterprise - in recent months, quotations for our products have only been growing,” said Vitaly Zenkov, Deputy General Director for Ideological Work and Social Issues. - initial material for the production of medical masks and gowns, as well as wet and sanitary napkins. all the main indicators were fulfilled, as a result of which the salary was increased: in the first quarter the rate of the first category increased by 25%. "

The advantage of the enterprise, according to Vitaly Zenkov, is its unique geographic location, due to which transport costs are reduced and the speed of fiber delivery to the consumer increases. In recent years, the line of products of the enterprise has been significantly replenished with the release of "thin" assortments - in particular, conjugate, which is used as a universal filler and insulation for pillows, mattresses, blankets, outerwear. Previously, this type of polyester fiber was not produced in Belarus and the CIS countries.

In future plans Mogilevkhimvolokno - progressive development of the enterprise, implying the introduction of investment projects that can bring significant economic benefits. So, to date, agreements have been signed on the implementation of two projects. One of them concerns the modernization of the production of industrial threads. The second project aimed at import substitution will be the production of spunlace. Today this material is made in Russia from the threads of the Mogilev enterprise. Then the raw material goes back and only then is used by Belarusian producers.

In January 2019, Mogilevkhimvolokno put into operation the production of polyester fiber by the direct molding method. The new equipment with a capacity of 50 thousand tons per year will make it possible to obtain a new assortment of synthetic fibers, which is in demand in the markets of far and near abroad.

According to the ICIS-MRC Price Report, the cost of material on the Belarusian market has not changed this week. Consumer activity in the domestic PET market is moderate to high. There is still a shortage of raw materials on the domestic market. The cost of material for Russian manufacturers in the current month is 125,000 rubles / t, FCA Mogilev, excluding VAT.

JSC "Mogilevkhimvolokno" is the only large producer of dimethyl terephthalate, PET polyester granules, including food grade, polyester fibers and threads in the Republic of Belarus, and the main supplier of raw materials for the light industry. The state's share is 90.53%.
MRC