Formosa shuts hydrocracker at its Mailiao refinery following fire

MOSCOW (MRC) -- Taiwan’s Formosa Petrochemical Corp has shut its 36,000 barrel-per-day hydrocracker at its Mailiao refinery following a fire last week, reported Reuters with reference to the company spokesman's statement on Tuesday.

The refiner has cancelled gasoil exports and offered a rare cargo of 180-centistoke (cst) fuel oil for February following the accident, spokesman KY Lin told Reuters.

The company is currently carrying out investigations into the accident.

The unit is expected to come back online by mid-March.

As MRC informed earlier, an explosion occurred at a polypropylene (PP) storage tank belong to Formosa Plastics (FPC, part of Formosa Petrochemical) in Linyuan, Taiwan in the early hours of 7 July 2021 and caused a flare-up, which was distinguished within an hour. Formosa Plastics Corp (FPC) runs a 230,000 tons/year PP plant in the Linyuan complex.

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

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

1. IMF lowered its forecast for Russia GDP growth in 2022 to 2.8%

MOSCOW (MRC) -- The International Monetary Fund (IMF) continued to lower its estimate for Russian economic growth in 2022 to 2.8% from expected 2.9% in October, 3.1% - in July and 3.8%, which it estimated growth in April last year, reported Interfax.In 2023, as the IMF expects, the growth of the Russian economy will be 2.1% (previously - 2%). The fund explains the slight decrease in the forecast for Russia this year by a weak harvest and the passage of the third wave worse than expected. The assessment of this year's global economic growth was reduced somewhat more significantly - from 4.9% to 4.4%. Such a forecast is given in the World Economic Outlook Update, published by the IMF on Tuesday. The forecast for 2023 increased by 0.2 p.p. - up to 3.8%. The report notes that the global economy enters 2022 in a weaker position than previously expected. As the Omicron variant of COVID-19 spread, countries reintroduced restrictions on movement.


MRC

MOSCOW (MRC) - Tomskneftekhim, NIOST, Biaxplen, SIBUR Digital - intend to move 50% of the administrative and management personnel to a remote work format until 13 February, the company's press service said.

Such measures are being taken in preparation for the wave of the omicron strain of coronavirus infection. So, from January 24, restrictions on business trips are also introduced: they are possible only if it is necessary for production and after agreement with the CEO. Before the trip and after - mandatory PCR testing.

The control of compliance with social distance, mask regime and the use of antiseptics is being strengthened. Meetings and internal events in offices and factories are held only in masks. An additional focus of attention is catering in industrial canteens. In particular, delivery meals have been organized for key production personnel, seating arrangements in canteens, taking into account social distance and the use of special partitions, and cutlery is issued in individual packaging.

The company is also working on the delivery of key shift personnel by separate vehicles.

Earlier it was noted that in 2022 Tomskneftekhim plans to upgrade the flare unit for 140 million rubles. In addition, Tomskneftekhim plans to complete the implementation of the project for the modernization of wastewater treatment plants (VTP), which will effectively purify water after the production of ethylene and propylene. The capacity of the treatment facilities will be 75 cubic meters per hour.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

LLC "Tomskneftekhim" was opened after the transformation of TNKhK in 2003. It is a subsidiary of PJSC SIBUR-Holding, which is one of the backbone enterprises of the Russian Federation. At the end of 2019, the size of the authorized capital of Tomskneftekhim amounted to 6.5 billion rubles, sales revenue - 13.2 billion rubles, net profit - 1.9 billion rubles.
MRC

MOSCOW (MRC) -- The International Monetary Fund (IMF) continued to lower its estimate for Russian economic growth in 2022 to 2.8% from expected 2.9% in October, 3.1% - in July and 3.8%, which it estimated growth in April last year, reported Interfax.

In 2023, as the IMF expects, the growth of the Russian economy will be 2.1% (previously - 2%).

The fund explains the slight decrease in the forecast for Russia this year by a weak harvest and the passage of the third wave worse than expected.

The assessment of this year's global economic growth was reduced somewhat more significantly - from 4.9% to 4.4%. Such a forecast is given in the World Economic Outlook Update, published by the IMF on Tuesday. The forecast for 2023 increased by 0.2 p.p. - up to 3.8%.

The report notes that the global economy enters 2022 in a weaker position than previously expected. As the Omicron variant of COVID-19 spread, countries reintroduced restrictions on movement. Rising energy prices and supply disruptions led to higher-than-expected inflation, especially, in the US and many emerging and developing economies. However, the fund notes that the forecast is based on a reduction in adverse health effects to low levels in most countries by the end of 2022, assuming vaccination rates improve worldwide and treatments become more effective.

The fund's forecast for the growth of the Russian economy in 2022 is slightly lower than the Ministry of Economic Development's estimate for this year - 3% and is in the range of the Bank of Russia - 2.0-3.0%.

As reported earlier Russia's GDP growth in 2022 will slow to 2.4% and in 2023 - to 1.8%, according to the World Bank (WB) report "World Economic Outlook", published in January.
MRC

MOSCOW (MRC) -- Bharat Petroleum Corporation Ltd (BPCL) has set up a superabsorbent polymer (SAP) technology demonstration plant of 200 tonnes per annum at the Kochi Refinery, according to Kemicalinfo.

The plant was inaugurated by BPCL’s executive director in-charge (refineries) Sanjay Khanna, in the presence of other officials.

Using the in-house acrylic acid as feedstock, SAP technology is used in various hygiene products such as diapers and other incontinence products. The technology was developed by the R&D wing of BPCL for production of hygiene-grade SAP, officials said.

The polymerisation reactor and the drying units were shifted from BPCL’s Corporate Research & Development Centre at Noida. Other units like feed preparation unit, milling, coating and packing units were indigenously engineered and procured by the project team. The project was completed in just seven months.

SAP is a polymer that can absorb and retain extremely large amounts of a liquid relative to its own mass. Therefore, superabsorbent polymer is one of the key components in sanitary napkins, baby diapers, under-pads and adult diapers.

As MRC reported earlier, BPCL said in May, 2021, it can buy up to 2 million tons of crude oil from Iran if sanctions are lifted and terms are attractive.

We remind that in April, 2020, BPCL shipped the first consignment of acrylic acid from its Propylene Derivative Petrochemical (PDP) complex at Kochi Refinery. Acrylic Acid is one of the six niche petrochemical products produced in the new PDP Complex at Kochi Refinery.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC