Grupa LOTOS S.A. selects Axens technology for coker naphtha hydro

MOSCOW (MRC) -- The Polish company Grupa LOTOS S.A. has selected Axens to provide the technology license for a new Coker Naphtha Hydrotreater at its Gdansk refinery, said Plastemart.

This contract is part of the Gdansk refinery development and modernization program based on heavy residue coking technology.

The two-step Coker Naphtha Hydrotreating Unit, with a capacity of 152,000 tpa, is being designed to produce naphtha quality for petrochemical use.

"Axens’ technology turned out to be the best one among those evaluated. This technology which meets our objectives is both simple and energy efficient" said Grzegorz Zgoda, Project Manager in Grupa LOTOS S.A. Axens has extensive experience in the diolefin hydrogenation and hydrodesulfurization of cracked naphtha (FCC, Coker, Visbreaker, Steam-Cracker). Drawing on this large expertise, Axens offers a very efficient and commercially proven process with a choice of specific catalysts and operating conditions to ensure meeting the product specifications while maximizing the catalyst cycle length.

As MRC wrote previously, Poland's state-controlled refiner Grupa LOTOS along with chemical producer Zaklady Azotowe Tarnow will construct a petrochemical plant in the country. The project will cost 5-6 billion zlotys (USD1.6-1.9 billion) and its construction is scheduled to begin in 2014 or 2015. The plant should be ready by 2018. The new plant would be adjacent to the Gdansk-based Lotos refinery and would use its products.

Grupa LOTOS is one of the largest companies in Poland. It is an oil company operating both in Poland and abroad, whose business consists in the extraction and processing of crude oil, as well as wholesale and retail sale of high-quality petroleum products. Apart from Grupa LOTOS, which manages the refinery in Gdansk, the LOTOS Group currently comprises 15 other companies operating under the LOTOS name. One of them is based in Lithuania and another one in Norway.
MRC

MOSCOW (MRC) - Imports of polyethylene (PE) to Ukraine grew by 6% to 21,000 tonnes in October, from 19,700 tonnes in September.
The main increase in imports occurred for linear polyethylene (LLDPE) while HDPE imports, traditionally the key market, fell, according to MRC DataScope.

The structure of PE imports looked as follows. External supplies of film high density polyethylene (HDPE) have been decreasing for the second month in a row. October imports of HDPE decreased to 8,300 tonnes compared to 8,600 tonnes in September, while in August the external supplies of HDPE was about 14,900 tonnes.

The decline in HDPE imports was caused by three factors: the resumption of the production at Karpatneftekhim, high prices in Europe and the weakening in demand, particularly from producers of plastic pipes. Ukraine's imports of HDPE rose to 115,500 tonnes in January - October of this year, compared to 103,500 tonnes in the same period of 2012.
External supplies of HDPE in October were actually at the level of September - about 6,400 tonnes. Seasonal decline in the demand for polyethylene (shrinkable films) and limited export quotas from Russia and Belarus resulted in the decline in HDPE imports last month.

Total HDPE imports to Ukraine decreased to 81,900 tonnes in the first ten months, compared with 94,300 tonnes in 2012. LLDPE imports rose to 4,800 tonnes in October, from 3,800 tonnes in September. Local producers of films, in particular stretch films, replenished their inventories in October actively. Total imports of LLDPE to Ukraine fell to 48,300 tonnes in the first ten months, from 61,700 tonnes year on year.

Imports of other copolymers of ethylene was about 1,400 tonnes in October, from 1,100 tonnes year on year on the back of increased supply of ethylene vinyl acetate (EVA). Total imports of PE and copolymers of ethylene to Ukraine decreased to 255,700 tonnes in the first ten months of the year, from 268,700 tonnes year on year.

MRC

MOSCOW (MRC) -- Ufaorgsintez (part of Bashneft Group) has announced a reduction in contract prices of low density polyethylene (LDPE ) and polypropylene (PP) from 15 November, 2013, according to ICIS-MRC Price report.

The company reduced contract prices of polyolefins by Rb400-1,300/tonne from early November. Lower LDPE and PP prices were caused by a seasonal decline in demand.

The contract price for shrinkable film LDPE 153 dropped by Rb400/tonne, other polyethylene (PE) contract prices remained intact.

Contract prices for homopolymer of propylene (homopolymer PP) fell by Rb600-1,300/tonne from early November, while contract prices for copolymers of propylene (PP-impact and PP-random) remained steady.

Ufaorgsintez's annual PP production capacity is 100,000 tonnes, the plants annual LDPE capacity is about 90,000 tonnes. The overall PP and LDPE output in the first nine months of 2013 totalled 87,000 tonnes and 68,800 tonnes, respectively.
MRC

MOSCOW (MRC) - Imports of polypropylene (PP) to Ukraine increased by 4% in October, compared with the September level.
The reduction in the supply of Russian and European PP was offset by significant growth in imports from the Middle East, according to MRC DataScope.

November PP imports to Ukraine has increased to 11,600 tonnes, compared with 11,200 tonnes in September. The growth of imports was seen in the markets of homopolymer PP and stat-copolymer of propylene (PP-random). Serious increase the supply of polypropylene from Saudi Arabia offset the decline in the supply of polymer from other regions.

Structure of imports of polypropylene looked as follows. External supply of homopolymer PP in October rose to 8,500 tonnes from 8,200 tonnes in the previous month. Only Saudi producers increased their PP imports to October to Ukraine (3,400 tonne in October, from 2,600 tonnes in September), while imports from other countries, on the contrary, fell. Total PP imports to Ukraine was 84,900 tonnes in the first ten months of the year, compared with 62,800 tonnes year on year.

Imports of block copolymers of propylene (PP-block) last month fell by 5% compared with September to 1,500 tonnes. The demand in the sector of injection moulding and pressure pipes has weakened. Total imports of PP-block fell to 13,700 tonnes in the first ten moths of the year, down by 15% year on year.
Imports of PP-random grew by 12% in October, from the September's level. The main increase occurred for the supply of pressure pipes and BOPP films. Total imports of stat-copolymers of propylene to Ukraine exceeded 10,000 tonnes, from 7,800 tonnes year on year.

Imports of other polymers of propylene in October remained at the level of September and exceeded 300 tonnes. Total imports of PP to Ukraine was more than 112,000 tonnes in the first ten months of the year, up 23% year on year.

MRC

MOSCOW (MRC) -- Brazil-based construction company Odebrecht plans to build an ethane cracker and three polyethylene (PE) plants as part of a new project in West Virginia,, reported Hydrocarbonprocessing with reference to the state's governor's statement.

The complex, named the Ascent - Appalachian Shale Cracker Enterprise, would include the ethane cracker, three polyethylene plants, and associated infrastructure for water treatment and energy co-generation.

A purchase option for the anticipated project site in Parkersburg, West Virginia, has already been secured, according to state officials.

"Although we realize much work remains to be done, this announcement of a potential project is tremendous news for our state and our region," said West Virginia Gov. Earl Ray Tomblin, who called it a "game changer" for his state.

The governor did not disclose a timeline or capacity details.

The feasibility of the project, according to the governor's office, will depend on several variables -- including the contracting of long-term ethane supply, financing, regulatory approvals, and appropriate governmental support.

Braskem would be responsible for petrochemical-related activities as well as the commercialization of the polyethylene after the investment is completed.

"As the United States’ leader in polypropylene production and with a significant footprint already in the region, we are excited about today’s announcement," said Fernando Musa, CEO of Braskem America. "Should Ascent materialize, we look forward to serving our clients in the polyethylene market."

The state of West Virginia is close in proximity to both the Marcellus and Utica shale plays, giving it easy access to natural gas-based feedstocks.

As MRC wrote previously, Styrolution, the global leader in styrenics, and Braskem, the largest producer of thermoplastic resins in America and a global leader in biopolymers, has recently announced the signing of a memorandum of understanding (MOU) to investigate the formation of a joint venture in Brazil. The proposed 100,000 tonne plant would supply specialty styrenics, acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) copolymers, to customers in Brazil and throughout South America.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC