OxyChem, Mexichem win environmental permits for new Texas cracker

MOSCOW (MRC) -- Ingleside Ethylene, the 50/50 joint venture between Occidental Chemical (OxyChem) and Mexichem, announced Friday that it received the necessary permits for its new ethylene cracker in Ingleside, Texas, said Hydrocarbonprocessing.

The permits were awarded by the US Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality (TCEQ). Issuance of the permits, combined with the already completed front-end engineering and design study, will enable Ingleside Ethylene to construct the 550,000 tpy cracker and start commercial operations in the first quarter of 2017, as previously planned.

The cracker will be located at OxyChem’s complex in Ingleside and be operated by OxyChem. The project is expected to create approximately 1,700 jobs at the peak of construction and more than 150 permanent jobs once operations begin.

"Issuance of environmental permits is an important milestone in the development of this world-class project and allows Ingleside Ethylene to move forward on schedule," said Chuck Anderson, president of OxyChem. "When operational, the facility will enable our companies to take advantage of shale gas development in the United States and further enhance our positions as leaders in the global chemical industry."

OxyChem and Mexichem have entered into a long-term strategic supply relationship, in which essentially all of the ethylene produced from the cracker will be consumed by OxyChem in the manufacture of vinyl chloride monomer (VCM) utilizing its existing VCM capacity. VCM will be delivered to Mexichem to produce polyvinyl chloride (PVC resin) and PVC piping systems.

The joint venture announced in December that it had awarded the approximately USD1 billion engineering and construction contract to CB&I. As MRC wrote before, the cracker joint venture is the second involving a Mexican company to be announced in the past three years. In March 2010 Brazilian petrochemicals giant Braskem SA and Mexico's Grupo Idesa SA de CV formalized an agreement with Pemex Gas y Petroquimica Basica to build a USD2.5 billion petrochemical complex, called Ethylene XXI, in Coatzacoalcos, which will include an ethylene cracker and three polymerization plants. Production at that site is scheduled to start in late 2015.

MRC

MOSCOW (MRC) -- According to a new contract signed between Abu Dhabi Terminals (ADT) and Borouge, ADT will design, construct and operate a state-of-the-art packaging facility for Borouge’s export products at Khalifa Port,said Mpponline.

Khalifa Port, supported by excellent location within Borouge logistic network and the right connectivity along with ADT’s operational excellence, is the primary UAE gateway for Borouge’s products to their customers around the world. Based on this agreement, the new packaging facility will enhance Borouge’s overall packaging capacity and supply chain network flexibility.

"Advanced packaging solution that ADT is going to provide us under this agreement, will further strengthen our supply chain capabilities and support our growth. In addition to the existing packaging facilities in our Ruwais plant and in our regional hubs in China and Singapore, the new packaging facilities and services in Port Khalifa will give us more flexibility to better serve our customers and achieve our business targets all over the world," said Abdulaziz Alhajri, CEO of Borouge.

Borouge produces 2 million tonne of polyolefins at its petrochemical plants in Ruwais and is currently expanding its industrial complex that will be resulted in increasing its total production capacity to 4.5 million tonne in 2014. The new packaging facility set to be built at Khalifa Port is expected to be completed in early 2015 with a total capacity of 385,000 metric tonne.

"ADT and Borouge have a long-term relationship with Khalifa Port receiving the first shipment of polyethylene (PE) for export from Borouge in October 2012, which was only one month after the start of operation at the Port," said Martijn Van De Linde, CEO of ADT.
MRC

MOSCOW (MRC) -- INEOS Technologies has announced that it is supplying four state of the art BICHLOR bipolar electrolysers to HF Chlor-Alkali’s new plant located in Eddyville, Iowa, USA, as per the company's press release.

The new HF chlor-alkali plant will supply caustic soda, muriatic acid, and bleach to an adjacent food processing facility and other Midwest facilities.

INEOS BICHLOR electrolysers have been sold to 56 projects around the world. The biggest plant using the technology is located in Runcorn, UK, where 20 BICHLOR electrolysers produce over 1,000,000te of chlor-alkali products each year.

Peter Grant, Business Director of INEOS Technologies, said: "­­­­­­­­­­­­­­­­­­­­­­­­­­­­­INEOS Technologies is delighted to be supplying our technology for this new venture. With our extensive chlor-alkali manufacturing and technical knowledge, we look forward to supporting HF Chlor Alkali, LLC in making their manufacturing plant a great success."

As MRC wrote previously, Ineos Technologies has recently licensed its INEOS EPS process for the manufacture of regular and flame retardant expandable polystyrene (EPS) to EPS Qatar at a new complex to be built in the Doha region, Qatar. The 50,000 tpa Ineos EPS plant will produce a wide range of EPS grades to cover all the applications from construction to packaging and serve the growing demand in the GCC region. The plant will feature expansion capabilities to reach 100,000 tpa in a second phase.

INEOS Technologies is a leading developer and licensor of technologies for the global petrochemicals industry. It offers the broadest range of petrochemical technologies on the market today and also supplies catalysts, additives and coatings that our customers require to obtain the best possible performance from their investments.
MRC

Moscow (MRC) - The shutdown of Stavrolen amid seasonal strong demand for high density polyethylene (HDPE) and reduced imports were key drivers for price rise in the Russian market. Prices for film HDPE have traditionally risen most significantly, according to ICIS-MRC Price Report.

Tight supply of HDPE in the Russian market, driven by several factors (Stavrolen's shutdown, seasonal improvement in demand and reduced imports), continued to bullish prices. The most significant growth in prices was seen in film HDPE market, with prices soared to Rb80,000/tonne in the end of May.

In the last week of May price offers for film HDPE grew to Rb78,000-80,000/tonne FCA, including VAT, whereas at the beginning of the month low end of the price was at Rb73,000/tonne. Only Kazanorgsintez and Nizhnekamskneftekhim offered their film HDPE in the market, as there was no imported material available in the market; there was information about small volumes of Middle Eastern HDPE offered.

The second largest consumption sector is pipe HDPE. Supply of Russian black PE100 was tight in the market in May, however, low solvent demand offset the shortage. As a consequence, May prices remained steady in the range Rb76,500-77,500/tonne FCA, including VAT.

Deals for imported PE 100 in the second half of May were done in the range of Rb82,000-82,500/tonne CPT Moscow, including VAT, with a deferred payment of 30 days. Supply of blow moulding and injection moulding HDPE was sufficient in May.

However, the upcoming maintenance works at "Gazprom neftekhim Salavat" in July and other producers resulted in price rise. Price offers for blow moulding HDPE in the late May were in the range Rb75,000-77,000/tonne FCA, including VAT. Prices for injection moulding PE were on average down by Rb1,000/tonne.
MRC

MOSCOW (MRC) -- The US Environmental Protection Agency (EPA) recently issued a final greenhouse gas (GHG) Prevention of Significant Deterioration (PSD) construction permit to Flint Hills Resources in Corpus Christi, Texas, to modify an existing petroleum refinery, said Hydrocarbonprocessing.

The USD600 million project was originally announced by Flint Hills in August 2012, with the company submitting permit applications in December 2012. The approval will allow Flint Hills to modify equipment at its 230,000 bpd West refinery in Corpus Christi to help it take advantage of processing more crude oils from the nearby Eagle Ford shale.

Modifying the facility will employ up to 2,000 people, with 36 permanent employees expected. The permit became effective immediately upon signature.

In June 2010, EPA finalized national GHG regulations, which specified that beginning on January 2, 2011, projects that increase GHG emissions substantially will require an air permit.

The EPA says it believes states are best equipped to run GHG air permitting programs. Texas officials are currently working with EPA to replace a federal implementation plan with an individual state program, which would eliminate the need for businesses to seek air permits from EPA.

EPA has finalized 39 GHG permits in Texas, proposed an additional 10 permits, and currently has over 22 additional GHG permit applications under review and permit development in Texas. Flint Hills operates a 70,000 bpd East refinery in Corpus Christi.

As MRC wrote before, US expandable polystyrene (EPS) producer Flint Hills Resources is exploring the potential sale of its 120,000 tonne/year unit in Peru, Illinois.

Flint Hills Resources is US refining, chemicals and biofuels company. Its refineries produce fuels that power much of Texas, the Midwest and the Alaska interior. The company's ethanol and biodiesel plants produce fuels that are used across the United States. Its petrochemicals are used to manufacture goods from plastics to building products to packaging materials.
MRC