ExxonMobil Chemical begins expansion project in Baytown, Texas

MOSCOW (MRC) -- ExxonMobil Chemical Company has announced that it has started construction of a multi-billion dollar ethane cracker at its Baytown, Texas, complex and associated premium product facilities in nearby Mont Belvieu, as per the company's statement.

The steam cracker will have a capacity of up to 1.5 million tons per year and provide ethylene feedstock for downstream chemical processing, including processing at two new 650,000 tons per year high performance polyethylene lines at the company’s Mont Belvieu plastics plant.

"The project is made possible in large part by abundant, affordable supplies of US natural gas for energy and chemical feedstock," said Steve Pryor, president of ExxonMobil Chemical Company. The chemical industry and other industrial sectors account for nearly 30% of US natural gas demand. "Shale development has provided US chemical producers a double benefit as an energy source and as a key raw material to make plastics and other essential products, creating jobs and economic activity across the value chain."

The project will employ about 10,000 construction workers, create 4,000 related jobs in nearby Houston communities and add 350 permanent positions at the Baytown complex. It is expected to increase regional economic activity by roughly USD870 million per year and generate more than USD90 million per year in additional tax revenues for local communities.

Contracts have been awarded for construction, which will begin immediately. Contracts have been awarded to Linde Engineering North America, Inc. and Bechtel Oil, Gas, and Chemicals, Inc. to build olefins recovery units at the ExxonMobil Baytown Olefins Plant. Mitsui Engineering & Shipbuilding Co, Ltd. and Huertey Petrochem S.A. will construct the new olefins furnaces. At the Mont Belvieu Plastics Plant, Mitsubishi Heavy Industries will construct two 650,000 tons-per-year high-performance polyethylene lines. Jacobs Engineering, Ltd. will oversee enabling works and interconnections at both locations. Dashiell Corporation and Wood Group Mustang will provide specialty contracting services.

The expansion, coupled with ExxonMobil’s global sales and technology support network, enables ExxonMobil Chemical to economically supply a rapidly growing demand for high-value polyethylene products. These premium products deliver sustainability benefits such as lighter packaging weight, lower energy consumption, and reduced emissions. ExxonMobil Chemical estimates exports could increase significantly as a result of the expansion. Production of these high-quality petrochemical products used in a wide range of consumer and industrial applications is expected to start in 2017.

To support the project’s need for skilled workers, ExxonMobil has committed USD1 million to the Community College Petrochemical Initiative, a training program offered by nine Houston-area community colleges to provide technical skills to high school graduates, returning military veterans and others. This program will involve 50,000 students and educators over the next five years.

As MRC informed earlier, ExxonMobil’s chemical plant in Singapore has been producing ethylene from the facility’s second world-scale steam cracker since mid-2013. The expansion is integrated with the existing petrochemical plants. Thus, the petrochemical complex, powered by a 375-megawatt cogeneration plant, increased production at its three polyethylene plants, two polypropylene plants, a specialty metallocene elastomers unit and the expanded oxo-alcohol and aromatics units.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Russia's production of finished products from polymers grew over the first five months of 2014. Producers of polymer films accounted for the main increase in the output, reported MRC analysts.

Production of key products from polymers in Russia rose by 6.1% from January to May 2014. Producers of polymer films still accounted for the main increase in the output, while there has been no growth in the construction sector since the beginning of the year.

According to the Federal State Statistics Service, May output of non-reinforced and non-combined films rose to 95,000 tonnes (in April - 91,600 tonnes). Thus, production of these products in Russia exceeded 400,000 tonnes from January to May 2014, up by 21% year on year.

May production of bottles, large bottles and flasks from polymers fell to 1.3 billion items (in April - 1.4 billion items). The overall Russia's production totalled about 5.9 billion of bottles, large bottles and flasks over five months of 2014, up by 5.9% year on year.

May output of plastic pipes, hoses and fittings dropped to 45,600 tonnes (in April - 49,600 tonnes). The overall production of these products reached 197,900 tonnes over the first five months of the year, down by 12.6% year on year.

Last month's production of plastic windows, their frames and sills rose up to 2.2 million square meters (in April - 2 million square meters). The output of plastic windows and window sills totalled about 8.5 million square meters from January to May 2014, down by 3.4% year on year.
MRC

MOSCOW (MRC) -- Dedicated environmental programmes implemented at SIBUR in 2013 reduced wastewater effluents by 3% and air pollutant emissions by 4% year-on-year, said the producer in its press release.

Despite commissioning of new production facilities, industrial wastes increased insignificantly (by 1%), with almost 40% of them used at the company's subsidiaries to improve the overall environmental footprint. In 2013, SIBUR invested a total of RUB 1.3 bln in the environmental protection measures. This figure is comparable with the 2012 investments, while pollution charges in 2013 decreased by 15% year-on-year down to RUB 24.3 mln.

The environmental projects implemented by the company in 2013 include flare system modernisation at Tomskneftekhim's monomer production, a new water treatment technology for the power boilers at SIBUR-Kstovo, an automated air quality monitoring system at SIBUR-Khimprom, upgraded treatment facilities at the Gubkinsky GPP, and replacement of an air drying station at the Krasnoyarsk Synthetic Rubbers Plant.

Processing of associated petroleum gas (APG), an oil by-product, is SIBUR's key environmental target. In 2013, APG processing at SIBUR subsidiaries increased by 4.8% year-on-year up to 19.6 bcm. The recovery rate of desired fractions in APG processing improved from 90.3% in 2012 to 95.6% in 2013. According to experts, combustion of 1 mcm of APG emits 300 tonnes of pollutants, including toxic substances, into the atmosphere. This means that SIBUR's APG processing effort in 2013 alone prevented the emission of almost 6 mt of pollutants.

In 2013, certain subsidiaries of the Company, including Voronezhsintezkauchuk, Tomskneftekhim, SIBUR-Khimprom and the Gubkinsky Gas Processing Plant, conducted the second audit of the Corporate Environmental Management System (CEMS) for compliance with ISO 14001:2004. The audit confirmed the CEMS compliance with the ISO 14001:2004 requirements. Auditors of Bureau Veritas Certification Rus, an independent certification body, appreciated our high environmental awareness both in social and industrial areas, targeted financing of environmental initiatives, comprehensive upgrade programme focused, among other things, on improvement of the environmental footprint, and successful energy efficiency programme. About 2 thousand employees of the Company underwent the CEMS development and improvement training.

Throughout 2013, the Company was continuing its corporate Business for Environment programme targeted at supporting environmental initiatives in the regions of its operations. SIBUR provided financial support to 44 events involving over 15 thousand people.

In 2013, SIBUR held the 4th IQ-Chem International Ideas Awards, with most applications received in the environmental category. In early 2014 the Company joined the Responsible Care programme, a global voluntary initiative committed to continuous improvement in health, safety and environmental practices. Members of the programme are required to report their HSE performance to a national competent authority (the Chemists Union – in Russia), carry out HSE audits, including those performed by international auditors, implement social development projects and enhance their social responsibility.

SIBUR is a vertically integrated gas processing and petrochemicals company, which operate RussiaпїЅs largest gas processing business in terms of associated petroleum gas processing volumes and are the leader in the Russian petrochemicals industry.
MRC

MOSCOW (MRC) -- Oman Oil Refineries and Petroleum Industries Company SAOC (Orpic), the Sultanate’s refining and petrochemicals flagship, has launched the process of prequalifying contractors for the construction phase of its USD3.6 bln Liwa Plastics Project (LPP), as per Oman Daily Observer.

The giant scheme is proposed to be established adjacent to the ongoing Sohar Refinery Improvement Project (SRIP) under way at the industrial port of Sohar. It features, among other things, a nominal 900,000 tpa ethylene cracking plant, HDPE plant, LLDPE plant, new polypropylene plant, MTBE plant, butene-1 plant and associated utility and offsite facilities. Also envisioned as part of this project is a Natural Gas Liquids extraction facility, which will be set up at Fahud and linked to the Sohar plant via a roughly 300km pipeline. Liwa petrochemical plant will be integrated with Orpic’s existing Sohar refinery, aromatics complex and polypropylene plant to create a massive petrochemicals complex within the industrial port.

A "Request for Information" has been issued to a number of local and international engineering contractors inviting them to affirm their interest in bidding for the multibillion dollar Engineering-Procurement-Construction (EPC) package of the mammoth petrochemicals project. Interested parties have until June 29, 2014 to respond to the "Request for Information", it is learnt. The Liwa Plastics Project, along with an array of equally substantial investments planned by Orpic and Oman Oil Company in Sohar and Duqm, promise to position Oman as a world-class petrochemicals producer of the future.

As MRC wrote before, Orpic, the Sultanate’s refining and petrochemicals flagship, intended to invest around USD3.6 bln in the development of a massive petrochemicals scheme that will form the cornerstone of an ambitious downstream plastics-based industry in Oman. When completed by 2018, the Sohar Plastics Project together with the refinery improvement venture, will produce one of the most efficient integrated refinery and petrochemical complexes in the world.

ORPIC was created in 2011 from the integration of Oman Refineries and Petrochemicals Co, Aromatics Oman and Oman Polypropylene. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

MOSCOW (MRC) -- BASF, the world’s leading chemical company, has undertaken three key capacity expansion projects for performance materials at its Pudong site in Shanghai (China), reported the company on its site.

The capacity expansion projects includes Ultramid (polyamide, PA), Ultradur (polybutylene terephthalate, PBT), Elastollan thermoplastics polyurethane elastomers (TPU), and Technical Center and capacity expansion of Cellasto (microcellular polyurethane components).

"More than 60% of China’s people will live in cities by 2020. Supporting an environmentally-friendly path for urbanization presents a huge opportunity for chemistry as an enabler for sustainable innovations in areas ranging from industrial manufacturing to construction, transportation and consumer goods," said Albert Heuser, President, Greater China and Functions Asia Pacific, BASF.

BASF estimates the Asia Pacific market for engineering plastics will grow on average by about 7% per year. This growth is driven by the increasing usage of engineering plastics in various segments, including transportation, construction, high speed railway, as well as the electrical and electronics industry. Ultramid and Ultradur are used in automotive parts and innovative applications include seat structures, oil sump modules, sensors, engine mounts, connectors and highly integrated laser-structured electronic devices.

Additionally, according to China’s national New Urbanization Plan (2014-2020), with additional 100 million people living in cities by 2020, the percentage of more energy-efficient and environmentally-friendly buildings among newly constructed buildings in China will rise to 50% from 2% today. BASF recently introduced co-extrudable Ultradur to reinforce thermally insulated PVC window profiles, an important contributor to building energy efficiency.

The compounding plant’s total capacity for Ultramid and Ultradur compounds has doubled from currently 45,000 to more than 100,000 metric tons per year - making it BASF’ s biggest engineering plastics compounding facility in Asia Pacific. The expansion, which is operational more than six months ahead of schedule, also includes a compounding line for specialty grades that enables BASF to tap the burgeoning market potential for specialty applications. With this project and the new compounding plant in Yesan, Chung Nam Province, Korea, which is expected to begin operations from the end of 2015, BASF’s overall compounding capacities in Asia will increase from the current 130,000 to a total of 225,000 metric tons.

BASF has now completed a significant capacity expansion at its Shanghai-based Elastollan plant, which was established in 2007. Elastollan TPU is a versatile material that offers the highest innovation potential. It can be processed with different methods, including extrusion and injection molding as well as blow molding. The expansion of capacity for TPU in China will support growth of the rapidly growing market for textile, footwear, transportation, wire and cable sheathing and other industrial applications.

Besides, the new investment project includes the expansion of the Cellasto Asia Pacific Technical Center, the establishment of three new production lines, and the technical improvement of existing facilities. Cellasto is the customized solution for damping and reduction of the noise, vibration and harshness (NVH) level of vehicles. The production capacity will be doubled after the project completion in 2015.

Cellasto components are sold to the automotive industry mainly as jounce bumpers, top mounts and coil spring isolators for suspension, as well as other NVH parts. BASF currently produces Cellasto at six sites worldwide: Lemforde, Germany, Shanghai and Nansha, China, Guaratingueta, Brazil, Shinshiro, Japan, and Wyandotte, USA.

We remind that, as MRC reported earlier, BASF is building a new Ultramid polymerization plant with a capacity of 100,000 metric tons per year in Shanghai, China. The new plant is planned to start up in 2015.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC