Accents in global petrochemical industry can be changed on the new shale gas resources in the US

(ame info) -- With the development of new shale gas resources, the US petrochemical industry is announcing significant expansions of US petrochemical capacity, while Middle Eastern producers are at a stage in their development where pure ethane plays are difficult to secure and the industry is moving towards heavier feedstocks. However, with the development of new shale gas resources in the United States of America, the region needs to prepare to capitalise on potential opportunities in its own petrochemical sector.

Mr. Andjelich, Vice President, Business Development, Middle East from Chevron Phillips Chemical Company, reported that announcements have been made over the past year regarding the high probability that several (four to six) new crackers will be constructed in the US based on feed supply from the growth of shale gas production. If these announcements are built, the US would become a larger exporter of ethylene and ethylene derivatives.

According to Dr Christian Gunther, Partner at McKinsey and Company, the consultancy, this is unlikely to affect Middle East aspirations of growth in a major way - the US is estimated to add around 9 - 11 million tonnes of ethylene capacity within the next 10 years, which can be absorbed by the forecasted global demand growth of around 50 million tonnes and still leave space for other players. Moreover, prices will remain set by liquids-based producers, as significant quantities of liquids-based ethylene will be needed to meet global demand.

The real challenge for the petrochemical industry in the Middle East will likely be the availability of advantageously priced ethane. From a country perspective, Dr Gunther believes that the right feedstock allocation decisions by regional governments as well as enhanced education and capability building are required. At the same time, chemical companies will have to accelerate their move towards functional excellence in operations, capex, procurement and marketing and explore opportunities beyond their traditional products to ensure the Middle East remains globally competitive.
MRC

(ame info) -- Chevron Phillips Chemical is on track to build a 1.5 million metric tonnes/year ethane cracker at its Baytown, Texas plant and two polyethylene (PE) facilities, capable of producing 500,000 metric tonnes/year each, in Old Ocean, Texas near its Sweeny plant. The entire project called US Gulf Coast Petrochemical Project will cost an estimated USD5 billion.

With the development of new shale gas resources, the US petrochemical industry is announcing significant expansions of US petrochemical capacity and these new resources are a major driver for Chevron Phillips Chemical's new investments in the US, as MRC reported earlier.
MRC

MOSCOW (MRC) – Moscow oil refinery will shut its production for a turnaround starting from September 21. The polypropylene (PP) complex will be shut along with oil refining, report MRC analysts.

As it became known, Moscow oil refinery will stop its capacities for oil refining for almost two months. However, according to the plant manager, the real dates of the shutdown might be eventually reduced. Along with the outage at the oil refinery, the PP complex (Neftekhimia plant) will be also stopped.

Preventive maintenance at Neftekhimia will be shorter and will also start since September 21 and last around 25 days. Annual PP production capacity makes 100,000 tonnes. We remind that in mid-July Moscow refinery Neftekhimia had to reduce capacity utilization for a week due to a production failure.

The total year-to-date PP production volume of Neftekhimia made about 65 600 tonnes.
MRC

(hydrocarbonprocessing) -- Fluor has announced that it was awarded an engineering, procurement and construction management (EPCm) contract by Dow Chemical for its upcoming propylene project in Freeport, Texas, said a company source on Friday. The project is underway with estimated mechanical completion by 2015.

"The US is experiencing a significant rebound in the petrochemical sector due to the attractive price of shale gas and we look forward to helping our long-time customer Dow realize this important project," the company said.

As MRC reported earlier, Dow Chemical, Formosa Plastics, and Chevron Phillips Chemical had recently unveiled their expansion plans in North America basing on deposits in the Marcellus Shale Formation in New York, Pennsylvania, and Ohio.

Earlier this year, Fluor and Dow signed a strategic global engineering, procurement, construction and construction management agreement in support of Dow’s global capital projects program ranging across all Dow products.
MRC

(reinforcedplastics) -- Speciality chemicals company Lanxess has acquired German company Bond- Laminates GmbH to strengthening its portfolio of lightweight materials for the automotive industry. Financial details of the deal have not been disclosed.

Bond-Laminates and its management team will be part of the Lanxess’ High Performance Materials (HPM) business unit, which currently produces Durethan engineering plastics based on polyamide (PA) 6 and 66, Pocan engineering plastics based on polybutylene terephthalate (PBT), glass fibre for reinforcement of plastics.

Lanxess has been working with Bond-Laminates since 2006 on several projects in the automotive industry.

Lanxess is a leader in specialty chemicals and operates in all important global markets. With its extensive portfolio, it focuses on premium business. Its core business comprises the development, manufacture and sale of plastics, rubber, specialty chemicals and intermediates.
MRC