Chevron Phillips eyes possibility of expanding normal alpha olefins in Baytown, US

MOSCOW (MRC) -- Chevron Phillips Chemical mulls expansion of its normal alpha olefins (NAO) capacity by, at least, 20% at its Cedar Bayou Chemical Complex in Baytown, Texas, as per Houston Business Journal.

The company has filed the necessary environmental permit application with Texas Commission on Environmental Quality (TCEQ). The construction is scheduled to begin in early in 2014 and the project would be completed in the fourth quarter of 2015, the company said in a statement.

Mitch Eichelberger, general manager of normal alpha olefins and polyalphaolefins for Chevron Phillips Chemical, said that the proposed expansion has great synergy with the 1-hexene plant currently being built at our Cedar Bayou complex.

In mid-2012, Chevron Phillips, Dow Chemical, Formosa Plastics, ExxonMobil and other companies across the Gulf Coast unveiled their expansion plans in North America, as MRC informed previously. They are rushing to invest billions of dollars in new ethylene plants, which use natural gas as feedstock. In 2012, the company began construction of the world's largest plant capable of producing more than 550 million pounds per year of on-purpose 1-hexene. The project is expected to come online in the first half of next year.
MRC

MOSCOW (MRC) -- Despite the serious difficulties faced by Russian converters of polymers, last year there was an increase in consumption in all consuming sectors. The growth of production volumes made from 6% to 25% depending on the type of the product, report MRC analysts.

Last year was quite difficult for Russian converters. Polyethylene and polypropylene markets faced with deficits and a record rise in prices. In the PVC market there was also a shortage of PVC in the autumn months, but the polymer prices did not beat the records of the previous years. However, despite these negative factors, the production of the finished products from polymers grew in all positions, the highest increase was recorded in a sector of plastic pipes production - about 25%.

According to Rosstat, in 2012, the total volume of production of pipes, hoses and fittings made from polymers in Russia exceeded 700,000 tonnes, up 25% year-on-year.

The output of polymer unreinforced and non-combining films rose by 10% to 818,000 tonnes. July-October accounted for the highest level of production.

Last year the volume of production of large bottles, bottles, flasks from polymers increased by 8.4% to about 12.1 billion items.

Window profiles, their frames and polymer sills accounted for the smallest volume of production. In 2012, the total output of these goods made 24.3 million m2, which is only 6% more than in 2011.
MRC

MOSCOW (MRC) -- PetroRabigh, a petrochemical company in Saudi Arabia, has restarted its petrochemical and refining complex after a power outage shut down operations in late December, according to Arab News.

As per PetroRabigh's statement on the Saudi bourse website, it had started to ramp up production at some units at the complex, including a crude distillation unit for the 400,000 bpd refinery, and had started to bring back online other units including an ethane cracker.

As it was reported earlier, the complex was shut for 20 days for maintenance starting from 1 January following a power trip.

PetroRabigh, a joint venture between Saudi Aramco and Japan's Sumitomo Chemical, has an annual output capacity of 18 million tonsne of refined products and 2.4 million tonnes of petrochemicals. As MRC reported previously, Petro Rabigh had signed an agreement with Tasnee and Saudi Advanced Industries (SAIC) for the supply of propylene oxide to the joint venture for the production of polyether polyol. The plant is located in Rabiga, in the west of Saudi Arabia on the Red Sea. The production launch is scheduled for the fourth quarter of 2013.
MRC

MOSCOW (MRC) -- BASF and China Petroleum & Chemical Corp. (Sinopec) have completed a joint feasibility study and taken the next steps in the establishment of a world-scale isononanol (INA) plant in China, according to BASF's press release.

As MRC reported earlier, in summer 2012 the companies signed a Memorandum of Understanding (MoU) to further strengthen their cooperation by jointly exploring the possibility of building a world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. Thus, the final scope of the investment is to be determined in the near future.

The partners will also form a new 50-50 joint venture, named BASF MPCC Co. Ltd, and plan to start production at the new plant around the middle of 2015.

"The completion of the joint feasibility study marks an important milestone for our INA business, helping us serve the increasing demand for next-generation plasticizers in China. Integration into the MPCC operations also allows for a very competitive feedstock supply," said Dr. Albert Heuser, president of the Asia-Pacific region for BASF.

INA is used as the feedstock for the production of next generation plasticizers, e.g. diisononyl phthalate (DINP) and non-phthalate plasticizer Hexamoll DINCH. DINP is widely used as a plasticizer in industrial applications such as automotive, wires and cables, flooring, building and construction while Hexamoll DINCH is the plasticizer of choice for sensitive applications.

BASF and Sinopec already jointly operate BASF-YPC Co. Ltd., a 50-50 joint venture between BASF and Sinopec in Nanjing, China. As one of China's largest petrochemical joint ventures, it produces a wide range of chemicals for the rapidly-growing Chinese market.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. SINOPEC is China's largest manufacturer and supplier of major petrochemical products.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
MRC

MOSCOW (MRC) -- Romania’s government may ask for an insolvency procedure for Oltchim SA (OLT), a state-owned unprofitable chemical company, following talks with the International Monetary Fund and the European Union, Bloomberg reported.

The Cabinet wants to restructure Oltchim and a 450 million- euro (USD599 million) debt to the state, without risking a sanction from the EU.

"Given the current economic problems Oltchim is facing, we have decided to start insolvency procedures. A request in this regard will be filed to a local court in Ramnicu Valcea. Furthermore, Oltchim’s board is to approve our decision today," said Romanian Minister for Economy and Commerce Varujan Vosganian during a government meeting.

The Romanian state holds a 54.8% stake in Oltchim, with Germany-based chemical producer PCC holding 18.3% and Cyprus-based Nachbar Services holding an additional 14.3%.

As MRC wrote earlier, the bid over Romanian state-owned chemical producer Oltchim was canceled on 1 October 2012. bidder – Romanian television station owner Dan Diaconescu - had not provided documents to prove he had the money to purchase the majority stake.

Romania was hoping to sell Oltchim to a strategic Russian investor, but only two Romanian bidders and the minority Oltchim shareholder PCC showed up at the auction.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.
As per MRC, Oltchim at the present does not supply PVC to the Russian market. Insignificant amounts of PVC-S had been delivered from 2005 to 2009 and on average made 1,900 tonnes per year.
MRC