China commissions first of 14 planned propylene units using UOP process

MOSCOW (MRC) -- Honeywell's UOP has announced that China has commissioned the first of 14 planned propylene production units, using technology from UOP to help close the global propylene supply and demand gap, reported Hydrocarbonprocessing.

China’s Zhejiang Satellite Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane.

Zhejiang Satellite Petrochemical is currently producing high-quality, on-spec product for acrylic acid and derivative production, according to UOP officials.

Traditionally, propylene is a byproduct of making ethylene. However, a shift in how ethylene is produced globally has meant less propylene byproduct is being produced, sparking investment in technology to create propylene from propane.

Since 2011, UOP has licensed the C3 Oleflex process to more than a dozen producers to meet rising demand, with a majority of licensed capacity in China.

"China's propylene consumption accounts for more than 15% of worldwide demand and is growing at about 5% to 6% per year," said Pete Piotrowski, senior vice president and general manager of UOP's process technology and equipment business. "Oleflex technology has been demonstrated to have the lowest cash cost of production due to its efficiency, providing a significant operating advantage to our licensees, and we look forward to showcasing the commercial success of this technology in China."

Zhejiang Satellite Petrochemical will produce 450,000 tpy of propylene at its facility in Pinghu City in Zhejiang Province. Zhejiang Satellite Petrochemical, formerly known as Zhejiang Julong Petrochemical Co. (ZJLPC), produces materials used in various markets, including aviation, automobile production, oil mining, health care and textiles.

As MRC wrote earlier, last year, OOO Kirishinefteorgsintez selected Honeywell to supply its experion process knowledge system (PKS) and advanced alarm manager system at the company"s refinery in Kirishi, in the Leningrad region of Russia.

Kirishinefteorgsintez is the only refinery in the North-West of Russia, which makes all kinds of fuel, a wide range of petrochemicals, including polystyrene (PS). The project processing capacity of the plant is 19.8 million tpa of oil. The company is a part of Surgutneftegas.
MRC

MOSCOW (MRC) -- Asahi Kasei Chemical is likely to shut its styrene monomer (SM) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in Japan informed that the plant is planned to be shut in mid-September 2015. It is likely to remain off-stream for around one month.

Located at Mizushima in Japan, the plant has a production capacity of 390,000 mt/year.

As MRC wrote previously, Asahi Kasei’s (Tokyo, Japan) Fibers division will expand production capacity for polypropylene spunbond nonwovens in Thailand at its subsidiary Asahi Kasei Spunbond (Thailand) Co. AKST will add a new production line of 20,000 metric tons per year capacity which, combined with its existing production line, will double its capacity for spunbond nonwovens to 40,000 m.t/yr. The investment for the capacity expansion is approximately USD5 billion, with a scheduled startup of November 2015.

Asahi Kasei Corporation is a global Japanese chemical company. Its main products are chemicals and materials science.
MRC

MOSCOW (MRC) -- Moody's Interfax Rating Agency, which is majority-owned by Moody's Investors Service (MIS), has placed on review for downgrade the Aa3.ru national scale ratings (NSRs) of PJSC Nizhnekamksneftekhim (NKNK), reported the ratings agency in its press release.

This decision to place NKNK's NSR on review for downgrade reflects the ongoing severe and rapid deterioration in the operating environment in Russia and the heightened risk of a more prolonged and more acute economic downturn than originally anticipated.

This action follows Moody's decision on Monday 22 December to lower Russia's foreign currency bond ceiling to Baa2 from A3, foreign currency deposit ceiling to Ba1 from Baa2 and local currency bond and deposit ceilings to Baa1 from A3.

This action also factors in Moody's decision to place the sub-sovereign rating of the Republic of Tatarstan, NKNK's major shareholder, on review for downgrade on 22 December 2014.

Moody's review for downgrade will assess NKNK's resilience to the increased risk arising from the prevailing negative operating conditions. In addition, Moody's will also consider the need for adjustments to its assumptions regarding the Russian government's willingness to provide support to corporates, in the event of need.

The following factors may place downward pressure on NKNK's rating: severe deterioration of the company's operating environment; deeper and more protracted decline in economic activity in Russia than previously anticipated; deeper and more protracted decline in economic activity in Russia than previously anticipated; the increased likelihood that the Russian government is forced to consider rationing the provision of foreign currency to the economy. A deterioration of the creditworthiness of Tatarstan could also have a negative effect on the company's rating.

Moody's believes there is little likelihood of any upward rating pressure for NKNK unless the operating conditions improve materially. Confirmation of NKNK's ratings could be considered if the economic environment stabilises or corporates show sufficient resilience.

As MRC informed previously, Nizhnekamskneftekhim (part of TAIF) shut down its ethylene production for a scheduled three-week turnaround at night, from 13 to 14 September 2014. Nizhnekamskneftekhim traditionally shuts down its ethylene unit in September for an overhaul. This year was no exception. The plant's annual production is 600,000 tonnes of ethylene.

Based in Nizhnekamsk in the Russian Republic of Tatarstan (Baa3, on review for downgrade), OJSC Nizhnekamskneftekhim ("NKNK") is one of the country's key petrochemical companies, producing rubbers, plastics, monomers and other petrochemicals. NKNK's 10 core production units are located on one site.

Moody's Interfax Credit Rating Agency (MIRA) specializes in credit risk analysis in Russia. MIRA is a joint-venture between Moody's Investors Service, a leading provider of credit ratings, research and analysis covering debt instruments and securities in the global capital markets, and the Interfax Information Services Group. Moody's Investors Service is a subsidiary of Moody's Corporation.
MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Belarus decreased by 9.4% over the first ten months of 2014 and totalled 34,500 tonnes, according to MRC DataScope report.

PVC imports to Belarus grew steadily since July on the back of seasonal factors and reached 4,800 tonnes in October (4,300 tonnes in September). The overall demand for PVC from local converters fell from January to October 2014 to 34,500 tonnes from 38,100 tonnes a year earlier.

Many local converters said weaker demand for PVC was caused by lower sales of finished products from PVC, primarily, in the domestic market (by about 20-25% year on year) and in foreign markets (including, the Russian market). The fall in sales of finished products to foreign markets was about 13.7% over the stated period to 21,400 tonnes.

German producers are the key PVC suppliers to the Belarusian market, their share in total imports rose to 53% over the said period. Polish Anwil with imports of about 8,400 tonnes is the second-largest supplier.

At the same time, Russian producers significantly increased their presence in the local PVC market in October. They shipped about 1,000 tonnes, and imports of resin from Russia rose over the stated period to 2,300 tonne.
MRC

MOSCOW (MRC) -- Japan's JX Nippon Oil and Energy plans to run its paraxylene (PX) plants at an average 80% of capacity over January-March, reported Apic-online with reference to a market source's statement.

JX Nippon cut the PX run rates over May-June to 50-60% of capacity due to thin PX/naphtha margins. It raised rates to 60% in the third quarter and to 75% in Q4 as margins improved amid falling crude oil.

JX has a total PX production capacity of 3.1 million mt/year - the biggest in Asia - across its plants in Kashima, Kawasaki, Mizushima and Oita in Japan as well as in South Korea's Ulsan under a joint venture with SK Global Chemical.

As MRC reported earlier, Top Asian refiner China Petroleum & Chemical Corp. (Sinopec) shut down its PX plant in China for a one-month maintenance turnaround in late October 2014. Located at Zhenhai in China, the plant has a production capacity of 650,000 mt/year.
MRC