LLDPE imports to Russia surged by 38% in January-June 2013

MOSCOW (MRC) -- The Russian linear polyethylene (LLDPE) market continues to show upward dynamics, according to MRC DataScope.

The Russian LLDPE market is one of the few markets that show high growth rates. LLDPE imports exceeded
102,400 tonnes in the first half of the year, while over the same period in 2012 this index made 74,300 tonnes. Thus, an increase made 38% year on year.

Films producers, particularly, stretch films producers, have ensured the main increase. Only three major
producers of cast stretch films (Regent-stretch, Lava, Nova Roll- Stretch) raised PE purchases by 42% this year.

Meanwhile, the second largest consumption sector of linear polyethylene - producers of large items by rotomoulding - reduced its consumption by 28% to 3,000 tonnes this year.

As reported earlier, the Russian LLDPE market is almost completely dependent on imports. Kazanorgsintez refused from the LLDPE production in 2009. Nizhnekamskneftekhim also does not see the economic feasibility of producing large volumes of LLDPE. Nizhnekamsk plant produced slightly more than 14 tonnes of LLDPE in the first six months of 2012, which is virtually equal year on year.

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MOSCOW (MRC) -- Saudi International Petrochemical (Sipchem) announces that its affiliate International Diol Company (IDC) has signed an Engineering, Procurement and Construction Contract with eTEC of South Korea on Sunday July 14, 2013 to debottleneck and improve the efficiency and the reliability of its plant facilities, said Ameinfo.

The project cost for construction and licensing are planned at SR393m. The construction of project will begin effective 14 July 2013 and project is targeted for completion during Q4 of 2014. Initial and commercial operation dates will be announced in due course.

The financial impact of the project, which will be announced in due course, will appear on financial results after commercial operation.

IDC had signed the financing arrangement for this debottlenecking as the second tranche of the financing agreement signed with Saudi Hollandi Bank and Saudi British Bank that was announced previously on March 31, 2013.

As MRC wrote before, Saudi Arabia's Sahara Petrochemicals and Saudi International Petrochemical Co (Sipchem) have announced the beginning of initial talks on a potential merger.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- The US Department of Justice (DOJ) and the US Environmental Protection Agency (EPA) have announced that Shell Oil has agreed to resolve alleged violations of the Clean Air Act at a large refinery and chemical plant in Deer Park, Texas, by spending at least USD115 million (MM) to control harmful air pollution from industrial flares and other processes, and by paying a USD2.6 MM civil penalty, reported Hydrocarbonprocessing.

Shell has agreed to spend USD1 MM on a system to monitor benzene levels at the fence line of the refinery and chemical plant. The fence line is located near a residential neighborhood and school. As part of the agreement, Shell will make the benzene level data available to the public via the web.

Shell will spend USD100 MM on technology to reduce harmful air pollution from industrial flares, which are devices used to burn waste gases. Shell is required to take the following actions to improve flaring operations: minimize flaring by recovering and recycling waste gases (which may then be reused by Shell as a fuel or product); comply with limitations on how much waste gas can be burned in a flare (flare caps); and install and operate instruments and monitoring systems to ensure that gases that are sent to flares are burned with 98% efficiency.

Shell’s agreement to recover and recycle waste gases (flare gas recovery) at its chemical plant is the first of its kind.

Once fully implemented, the pollution controls required by the settlement will reduce harmful air emissions of sulfur dioxide, volatile organic compounds (including benzene) and other hazardous air pollutants, by an estimated 4,550 tpy. These controls will also reduce emissions of greenhouse gases by approximately 260,000 tpy.

Also, in a second project to benefit the community, Shell has agreed to spend USD200,000 on retrofit technology to reduce diesel emissions from government-owned vehicles operating in the vicinity of the Deer Park complex.

We remind that, as MRC wrote previously, Royal Dutch Shell has taken a final investment decision to increase production capacity at its Singapore petrochemical plant to meet demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols - industrial chemicals used to make high-quality foams - by more than 100,000 metric tpy to 360,000 tpy. The project is expected to be completed in 2014.

Shell, which is headquartered in Houston, processes approximately 330,000 bpd of crude oil at its Deer Park facility, making it the 11th largest refinery in the US. In addition, the Deer Park chemical plant produces approximately 8,000 tpd of products including ethylene, benzene, toluene, xylene, phenol and acetone.
MRC

MOSCOW (MRC) -- Chinese Company CNOOC has selected INEOS Technologies Innovene S HDPE process for their new project in Huizhou, Guangdong Province, China, said Yourpetrochemicalnews.

The 400 KTA Innovene S HDPE plant will produce a wide range of polyethylene grades to serve the growing HDPE demand in China. These grades include commodity grades made from Ziegler and Chrome catalysts as well as specialty grades such as bimodal PE 100 pipe products.

Peter Williams, CEO of INEOS Technologies, commented: "INEOS is delighted to have been selected by CNOOC as its licensing partner for the HDPE plant at Huizhou. We look forward to working with the CNOOC team to deliver an asset that will meet fully both the current and future requirements of CNOOC’s customers".

MRC wrote before, CNOOC Oil and Petrochemicals Co. (CNOOC) has selected the LyondellBasell Spherizone technology for a 400 KT per year polypropylene (PP) plant planned to be built in Huizhou, China.

China National Offshore Oil Corporation (CNOOC Group Chinese) is one of the major national oil companies of China. It is the third-largest national oil company in the People's Republic of China after CNPC (parent of PetroChina), and China Petrochemical Corporation (parent of Sinopec).The CNOOC Group focuses on the exploitation, exploration and development of crude oil and natural gas offshore of China.
MRC

MOSCOW (MRC) -- Styron will move its North America Operations Center into a newly constructed office building in downtown Midland, Michigan, in summer of 2014, reported the company on its site.

The new office building will house roughly 40 employees in customer service, feedstocks, finance, purchasing and supply chain. These employees are currently located in four separate buildings in Midland, both inside and outside the Michigan Operations plant site.

"Midland remains Styron’s largest location in the U.S., with 183 employees in Midland overall, including the 40 employees who will move to the new building on Ashman Street," said Jeff Denton, Vice President of Feedstocks and Corporate Services.

Styron recently signed a lease as the anchor tenant of the two-story, multi-tenant building that will be owned and operated by SSP Associates and will occupy the second floor. The building will be located on the block bounded by Buttles, Indian, Ashman and Gordon streets. Construction is set to begin this summer.

We remind that, as MRC wrote earlier, in June 2013, Styron Europe GmbH, the global materials company and manufacturer of plastics, latex and rubber, has appointed Velox GmbH, Hamburg, Germany, as the European distributor for medical product offerings from Styron. Velox, a supplier and marketer of raw materials specialties will represent products for Styron medical applications, including CALIBRE MEGARAD polycarbonate resins and MAGNUM ABS Resins.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD 5.5 billion in revenue in 2012, with 20 manufacturing sites around the world.
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