Demand for the products of polymer pipe manufacturers will grow significantly in Russia

MOSCOW (MRC) - Demand for the products of manufacturers of polymer pipelines will grow significantly in Russia, primarily from the state, RBK reports.

As part of the reforms in the housing and communal services sector, the fate of heating networks and water pipelines, which are worn out by 60%, will have to be decided. The required expenditures for upgrading the infrastructure amount to more than 1 trillion rubles. A large-scale municipal reform should also accelerate the process of replacing metal pipes with polymer ones in engineering networks.

Even the coronavirus pandemic has not affected the growth of the polymer segment in the past year or two. According to Rosstat, in 2020 the market for polymer pipes exceeded half a million tons, an increase of almost 15% compared to 2019. In the first nine months of this year, Russia produced 19% more polymers compared to the same period in 2020.

At the same time, according to Rosstat, the share of metal pipes used in the national economy of Russia in 2016–2020 was almost 68%, polymer pipes - less than 32%. The reason for the conservatism of some industries is also the lack of a sufficient regulatory framework. For polymers to become more widespread, business needs to be more actively involved in the development of relevant product standards - GOSTs and requirements for design, construction and operation, codes of practice and state prices for products and construction.

Polymer pipes have recently been increasingly used in various industries, primarily in housing and communal services, but if we talk about the oil industry, then not in all its segments it is still possible to introduce polymer technical solutions. We are talking, in particular, about large-diameter and high-pressure oil trunk pipelines.

The capacity of the market for polymer pipes in Russia (in 2020 - 0.44 million tonnes) is 31 times less than that of China (13.6 mln tonne) in absolute terms, according to Rosstat data. The consumption of polymers of pipe grades per capita in China and the European Union last year was 10 kg per person, in the USA - 9 kg per person, in Russia - only 3 kg per person.

The share of polymer solutions in the housing and utilities sector in Russia is 35%, and in Europe - 85%. If we talk about the field of oil and gas production, Russia consumes no more than 3% of the global volume of flexible polymer reinforced pipes.

Earlier it was reported that the Khabarovsk Pipe Insulation Plant (KhTZI) announced the expansion of the product line and the entry into new sales markets. This year the plant has launched production of pipes with polymeric foam insulation.

According to MRC's ScanPlast, the estimated consumption of PE in Russia amounted to 1,868.16 thousand tons in the first nine months of 2021, which is 18% more than in the same period a year earlier. The supply of all types of ethylene polymers increased.
MRC

MOSCOW (MRC) - Polimatiz (a subsidiary of Nizhnekamskneftekhim) will acquire a new line to increase the production of two-layer and three-layer vapor-permeable polypropylene membranes under the Polyspan®Stroy trademark, the company said.

The new production capacity will be 12 million square meters. m of products per year, and the localization of raw materials will be 100%. The main consumers will be large manufacturers of roofing and waterproofing materials.

The implementation of the project became possible, among other things, due to the attraction of a loan from the Industrial Development Fund (VEB.RF Group) in the amount of 68.3 million rubles. under the program "Labor productivity". The company is expected to increase labor productivity by 30% after the project is completed.

In total, at the last expert council of the IDF, 17 loans were approved for the implementation of projects in the Moscow, Rostov, Lipetsk, Sverdlovsk, Penza, Tomsk and Tula regions, in the Perm Territory, Sevastopol, as well as in the republics of Karelia and Tatarstan. The amount of loans from the IDF will exceed Rb2.28 bn, and the total budget for project implementation - Rb5.3 bn.

Earlier it was reported that Polymatiz in April last year began production of medical masks from a new production line. On April 13th, the line started operating at full capacity. The line capacity is 2.4 mln units per month.

According to the ICIS-MRC Price Rport, purchasing activity on the Russian PP spot market is still low. Most of the prices of Russian PP were stable during the week with a few exceptions. The supply of propylene homopolymer (PP-homo) from some sellers is limited, but there is no need to speak of a shortage. Many companies have already closed all of their deals for November deliveries.

The Polymatiz company was founded in 2006, and the official opening of the enterprise and the commissioning of equipment with a design capacity of 10 thousand tons of thermal insulation per year took place in July 2009.
MRC

MOSCOW (MRC) -- Recently, thyssenkrupp Uhde successfully commissioned its 35th EnviNOx system, a patented technology for the reduction of nitrous oxide emissions, which reduces greenhouse gases close to zero, according to Hydrocarbonprocessing.

The process converts environmentally harmful nitrous oxide (N2O) and other nitrogen oxides into nitrogen, oxygen and water. At the latest installation for Arxada in Switzerland, annual emissions of N2O will be reduced by at least 98%, saving up to 600,000 tons of CO2-equivalents per year. This is a significant contribution to the country’s climate targets.

“The whole chemical industry faces the challenge of protecting the climate while growing profitably. With the realization of emission reduction solutions such as EnviNOx, we are really making an impact”, says Sami Pelkonen, CEO thyssenkrupp Uhde. “We focus on the development of sustainable solutions to make existing and new plants as environment-friendly as possible - up to completely climate-neutral chemicals such as green ammonia.”

The EnviNOx technology was originally developed for emission reduction in nitric acid plants and has already been installed in 35 chemical plants worldwide since the first installation in 2003. More EnviNOx systems are already ordered from various customers and will be installed and commissioned during the next months.

As MRC reported earlier, thyssenkrupp Industrial Solutions’ subsidiary Uhde Inventa-Fischer signed a contract to build a new world-scale polymer plant for Yurek Polimer A.S.in Bursa, Turkey. The plant is planned to produce 300 metric tons per day (108,000 tons per year) of polyethylene terephthalate (PET) for low viscosity applications. The PET melt produced by thyssenkrupp technology will then be converted into PET Chips, as well as pre-oriented yarn.

According to MRC's ScanPlast report, September estimated PET consumption in Russia increased to 56,960 tonnes, up by 10% year on year. Russia's overall PET consumption reached 592,560 tonnes in the first nine months of 2021, up by 12% year on year.
MRC

MOSCOW (MRC) -- The United States will sell 32 MM bbl of crude from four Strategic Petroleum Reserve (SPR) sites to be delivered between late-December and April 2022, the Department of Energy (DOE) said as it auctions oil to try to lower global prices, said Hydrocarbonprocessing.

International oil prices have held above USD80 a bbl even after U.S. President Joe Biden's administration announced on Tuesday it will release millions of bbl of oil from strategic reserves in coordination with Britain, China, India, South Korea and Japan.

However, traders said they expected the sale of SPR oil, which is mainly blended sour, or high-sulphur, crude, will depress the value of U.S. sour crude grades, such as Mars and Southern Green Canyon, and benefit buyers in Asia, which processes mainly high-sulphur oil.

In the first auction of the coordinated release, about 10 MM bbl will be made available from Big Hill and Bryan Mound in Texas, about 7 MM bbl from West Hackberry in Louisiana and another 5 MM bbl from Bayou Choctaw in Louisiana, the DOE said on its website. Deliveries will take place January through April 2022, with early deliveries accepted in late December, it added.

Buyers will have to return the oil at later dates between 2022 and 2024, the DOE said. Companies are required to submit bids on Dec. 6 and contracts will be awarded no later than Dec. 14. One trader speaking on condition of anonymity said, spread over four months, the release equated to a steady 270,000 bpd stream of medium sour grades providing direct competition to Mars.

The DOE will also announce the sale for up to 18 MM bbl of SPR crude no sooner than Dec. 17. The winners of a regular, legally required U.S. SPR sale in September of 20 MM bbl of crude were: Atlantic Trading & Marketing Inc, an arm of French company TotalEnergies , Chevron USA, ExxonMobil Oil Corp, Marathon Petroleum Supply and Trading, Motiva Enterprises, Phillips 66 Co, Unipec America Inc and Valero Marketing and Supply Co.

As per MRC, crude oil futures plunged in mid-morning trade in Asia Nov. 26 as investors were spooked by reports of a new COVID-19 variant from South Africa that appeared to evade immune responses, sparking a sharp sell-off in the broader financial markets. At 10:05 am Singapore time (0205 GMT), the ICE January Brent futures contract was down USD1.13/b (1.37%) from the previous close at USD81.09/b, while the NYMEX January light sweet crude contract was USD1.52/b (1.94%) lower at USD76.87/b.

According to MRC's ScanPlast report, 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) -- Hexion Holdings Corporation has announced that as a result of its ongoing strategic review it has entered into a definitive agreement to sell its epoxy-based Coatings and Composite businesses, which includes the epoxy speciality resins and base epoxy resins and intermediates product lines (together, the “Epoxy Business”) for approximately US1.2bn to Westlake Chemical Corporation, according to APCJ.

The Epoxy Business generated total sales of approximately USUSD1.5bn for the last 12 months ended September 30, 2021, and was reported within the Coatings and Composites reportable segment of the company.

The transaction includes approximately 1300 associates and eight manufacturing facilities globally where epoxy-based Coatings and Composite products are produced for highly diversified growing end-markets, such as wind energy, non-residential construction, industrial, electrical, automotive and aerospace.

The company expects to use the sale proceeds to further pay down debt and to invest in its business.

The transaction is expected to close in the first half of 2022, subject to customary regulatory approvals and other closing conditions as well as prior Works Councils consultation.

As MRC reported before, earlier this year, Hexion Inc., a major American manufacturer of phenol and bisphenol A (BPA), has recently announced that in order to help address climate change, it has committed to reduce absolute carbon emissions by 20% by 2030.

Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
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