BP agrees third latest generation PTA licence with Ningxia Baota

MOSCOW (MRC) -- BP and Ningxia Baota Chemical Fibre Co., Ltd. (a majority owned subsidiary of Baota Petrochemical Group) have signed an agreement to license BP’s latest generation purified terephthalic acid (PTA) technology, the third such deal agreed by BP, as per BP's statement.

Ningxia Baota intends to build a 1.2 million tonnes per annum (tpa) unit at the Ningxia Ningdong Energy and Chemical Zone in Ningxia Hui Autonomous Region, China, to produce PTA, the primary feedstock for polyesters used in the textile and packaging industry. Baota expects the PTA plant to come on stream in 2018.

"This is the first third-party PTA licence for BP in China since our recent decision to license the use of our market-leading technology. Baota is a renowned petrochemical company in China and I’m proud that they’ve chosen BP’s advantaged technology," said Rita Griffin, Chief Operating Officer of BP’s Global Petrochemicals Business. "We have now licensed this latest PTA technology in India, Oman and China - three significant growth markets - and have our own world-scale plant running at Zhuhai in Guangdong, China. We see great potential long-term in the polyester supply chain."

"Our PTA technology has significantly lower capital and operating costs relative to conventional PTA plants. The technology is substantially more energy efficient, uses less water, and produces less solid waste. We continue to invest heavily in our proprietary technology to maintain BP’s PTA technology as the global leader and as the technology of choice for the future. Innovations are constantly being developed and these will be available to our licensees including Baota," said Dan Leonardi, BP’s Vice-President for Technology & Licensing, Petrochemicals.

BP’s Global Petrochemicals Business has total (net to BP) capacity at 18 locations in ten countries of 18.3 million tpa including 6.7 million tpa of PTA.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.

BP’s PTA technology was originally developed in the USA during the 1950s and through successive iterations has continued to improve in terms of its capital and operating costs. BP’s latest iteration of PTA technology has been licensed to JBF Industries in India with 1.25 million tpa capacity and to Oman International Petrochemical Industries Company in Oman with 1.1 million tpa capacity. It is also in use at the BP Zhuhai joint venture in China whose latest facility of 1.25 million tpa capacity started production in Q1 2015.

Baota is a private company engaged in refinery, petrochemical, finance, education and technology. Baota Petrochemical Group Co., Ltd. is the core parent company of Baota, which owns six second-level parent companies, one listed company and one fund management company and its 148 affiliated subsidiaries. Baota has developed five petrochemical production bases in China, such as Yinchuan, Ningxia autonomous region, Zhuhai, Guangdong province and Kuishan, Xinjiang province. The Group owns a total of 20 billion yuan in assets and has 12,000 employees. It has also been ranked 6th among the Top 100 Enterprises in Ningxia autonomous region and 39th among China Top 500 chemical enterprises.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced capacity expansions for its leading TONSIL bleaching earths for edible oil purification, as per the company's press release.

New TONSIL operations at Clariant's existing sites in Turkey and Mexico, and the construction of a new site in Indonesia, will optimize local supply and enable the company to better serve the markets and needs of its regional customers.

Today a considerable share of edible oil produced globally is treated with Clariant's TONSIL bleaching earths. They set the gold standard in efficient and sustainable edible oil purification through the use of natural resources, the efficient removal of impurities from all kinds of oils, and minimizing waste throughout the entire process. Combining 110 years of expertise in bleaching earth and oil purification with state-of-the art development and production factilities enables Clariant to continuously develop new grades of highly-active bleaching earths derived from natural clays. Tailored acid activation processes ensure that TONSIL grades effectively bind impurities and undesired substances from the oil, protect nutrients and extend the product's shelf-life and optics.

Clariant's addition of new production facilities will improve supply lead times and product availability for customers in these regions. They include on-site teams of experts in product and application techniques, as well as analytical laboratories to support the development of bleaching earths that meet local oil refining requirements for color improvement, odor removal and shelf life.

Customers in Turkey and the Middle East will benefit in particular from the newly developed TONSIL Supreme 158FF grade, which will be produced at the expanded Balikesir site using a specific clay from a local Turkish mine. The clay is well-suited for this grade which offers a balanced profile of superior bleaching performance in various oils, fast filtration and low oil retention.

Across its regions, Clariant sources bentonite from its local mines to both secure clay access and ensure sustainable mining practices with strict re-cultivation standards.

As MRC informed previously, last summer CB&I and Clariant announced that their new Ziegler-Natta (ZN) polypropylene catalyst plant in Louisville, Kentucky, is on schedule to begin production in 2015. The plant is part of a long-term strategic partnership between Clariant’s catalysts business and CB&I’s Lummus Novolen Technology business. Based at Clariant’s largest US production hub, the new facility will combine innovative catalysts jointly developed by both companies with high-capacity output.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Petrobras chairman Murilo Ferreira is taking a leave of absence less than five months after he was appointed to help the Brazilian government-controlled company emerge from a mountain of debt and a corruption scandal, said Hydrocarbonprocessing.

Ferreira, who will continue in his role as CEO of Vale, requested leave from Petrobras board duties until Nov. 30 for personal reasons, the iron-ore miner said in an e-mailed response. His backup at Petrobras, Clovis Torres, also a Vale executive, will stand aside to make it easier for the board to nominate an interim chairman among current members.

"This could lead to greater concerns about the independence of the board and corporate governance," Bank of America analysts Frank McGann and Vicente Falanga said Monday in a note to clients. "We believe this could lead to additional investor caution towards Petrobras’ shares."

Divergences between Ferreira and management, led by CEO Aldemir Bendine, surfaced last month when Ferreira voted against selling a stake in the company’s fuel distribution unit before taking steps to improve performance.

Ferreira’s temporary board departure comes as Petrobras seeks to deepen cutbacks and productivity measures after prices collapsed and its credit rating was cut to junk. The Rio de Janeiro-based producer, formally known as Petroleo Brasileiro, declined to comment on reasons for the leave.

Prior to a rating downgrade by Standard & Poor’s last week, Petrobras had announced plans to reduce its operating costs by about USD12 billion through 2019. The company will also review its outlook for currency and oil prices, as the scenario has deteriorated since it unveiled a business plan in June.

Ferreira’s appointment in April, replacing Luciano Coutinho, broke with a tradition of political appointees. Previously, the chairman position was occupied by former finance minister Guido Mantega and president Dilma Rousseff during the government of her predecessor Luiz Inacio Lula da Silva.

He and Bendine were appointed to guide Petrobras out of a scandal involving graft and mismanagement at refinery projects that cost the company billions of dollars and contributed to the biggest debt load among oil producers globally.

As MRC informed earlier, Braskem signed a contract with state-run producer Petrobras for the supply of naphtha feedstock. The new contract, which continues the terms of a previous naphtha deal, is valid until the end of October.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

MRC

MOSCOW (MRC) -- The Dow Chemical Company was named to the Dow Jones Sustainability World Index as one of the top performers in the global chemical industry, marking the 15th time Dow has received this recognition since the launch of the index, as per Dow's press release.

This year’s announcement ties Dow as the longest-standing representative in the chemical category since the list’s inception in 1999.

With only 10 chemical companies named to the World Index in 2015, Dow is proud to be recognized for sustainability performance in the top 10 percent of the chemical industry. In addition, Dow received a perfect score of 100 on the Climate Strategy and Customer Relationship Management sections, demonstrating the Company’s unique strengths of working closely with customers to develop differentiated, science-based solutions to address today’s global challenges.

"Through our 2025 Sustainability Goals, Dow will help lead the transition to a more sustainable economy and society," said Neil Hawkins, Dow’s corporate vice president for environment, health and safety (EH&S) and chief sustainability officer. "From the ‘footprint’ of our operations, to the positive 'handprint' of our products, to the development of new ‘blueprints' for a more sustainable world, we are proud to be embarking on the third decade of rigorous sustainability goal-setting at Dow. Today’s announcement marks the latest milestone in our sustainability journey, and we are both proud and humbled to be named to the Dow Jones Sustainability World Index for the 15th time."

Dow remains committed to sustainability, setting the standard through public goal-setting, metrics and transparent reporting. Announced in 2015, the Company’s aggressive 2025 Sustainability Goals seek to redefine the role of business in society, focusing on unlocking the potential of people and science, valuing nature and collaborating courageously.

As MRC reported earlier, in November 2014, The Dow Chemical Company announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy. On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Amec Foster Wheeler has announced the award of a contract by Yuhuang Chemical Inc. (YCI), a US-based subsidiary of Shandong Yuhuang Chemical Company Co. Ltd (SYCC), for its first major project in the US, a 1.7 million tons per year world-scale methanol facility on the Mississippi River in St. James Parish, Louisiana, said the company on its site.

Under the contract, the value of which has not been disclosed, Amec Foster Wheeler will be providing engineering, project management, procurement and early construction services. The intention is to extend this into a full scope EPC contract during 2016 on mutually agreed terms.

This contract is for the first phase of YCI’s planned investment in US chemical facilities, which will be executed in a multi-phase strategy over the next decade. Construction is expected to begin in 2015, with the first phase of the methanol project beginning operations by 2018. The new methanol facility will use natural gas as its primary feedstock and utilise the Lurgi MegaMethanol technology developed by Air Liquide Global E&C Solutions, a subsidiary of Air Liquide Group.

Simon Naylor, Amec Foster Wheeler’s Group President for the Americas commented: "We are delighted to have been selected by YCI to help deliver this milestone project safely and sustainably, and look forward to expanding our relationship and building a strong partnership that will stimulate YCI’s future growth."

YCI is leading a growing trend of Chinese investment in US production facilities and helping develop a growing level of beneficial trade between China and the US.

As MRC wrote before, Foster Wheeler has been selected by Rosneft and ExxonMobil to undertake the initial phase of the front-end engineering design (FEED) for a proposed Russian Far East liquefied natural gas (LNG) project. Foster Wheeler is one of two companies to be awarded separate contracts for the initial FEED work prior to selection of a single contractor for the second FEED phase.
MRC