BorsodChem declares force majeure on MDI and chlorine/caustic soda production

MOSCOW (MRC) -- BorsodChem has announced that due to an unforeseen technical problem at one critical raw material supplier it is forced to stop production at its MDI plant in Kazincbarcika, Hungary, according to GV.

According to the company, the chlorine/caustic soda production at the site is also impacted. As a consequence, BorsodChem has declared Force Majeure on the deliveries of all MDI products and chlorine/caustic soda effective from 14 August 2017 until further notice.

The company said during the period of Force Majeure it can not guarantee that all deliveries are executed in time, and in some cases considerable delays might also happen. Recovery efforts are underway and BorsodChem said it is doing its utmost to minimise potential impact on customers. Clients will be continuously kept informed about supply capability, the company said.

As MRC informed before, Wanhua & BorsodChem has recently announced the set-up of a new MDI bulk storage facility in the Rotterdam area. Two new tanks will be located at LBC Tank Terminals, one of the largest chemical storage service providers in the world. Wanhua said that this bulk storage facility is ideally located to serve as the company’s regional European distribution hub of Wannate MDI products imported from China for European customers. The tanks were commissioned in July 2017.

BorsodChem is part of Wanhua Group, which is one of the largest MDI producers in the world, with more than 2,000 kt/y MDI capacity. BorsodChem is a producer of MDI, TDI and other speciality chemicals in Central and Eastern Europe.
MRC

MOSCOW (MRC) -- Ashland has declared a force majeure in Europe on 1.4-butanediol (BDO), tetrahydrofuran (THF) and formaldehyde as a result of a fire at its manufacturing facility in Marl, Germany, that led to the shutdown of production operations on 10 August 2017, reported GV.

According to the company, production has been suspended while an investigation into the cause and extent of the fire takes place. As a result, the Marl facility is currently unable to produce any 1.4-BDO, THF or formaldehyde, and the availability of product is significantly reduced, said the company.

Ashland said it is working with affected customers to minimise the impact to their respective businesses, and will continue to provide updates regarding supply capability.

As MRC informed before, as of 1 June 2017, or as existing contracts permit, BASF SE increased its European selling prices for a number of petrochemical products, as stated below:

- 1,4-Butanediol (BDO) - by EUR200/mt;
- tetrahydrofuran (THF) - by EUR150/mt;
- polytetramethylene ether glycol (PolyTHF) - by EUR300/mt;
- N-methyl-2-pyrrolidone (NMP) - by EUR150/mt;
- gamma butyrolactone (GBL) - by EUR150/mt.

BDO and its derivatives are used for producing engineering plastics, polyurethanes, solvents and elastic spandex fibers. PolyTHFa is a registered trade mark of BASF Group in many countries.
MRC

MOSCOW (MRC) -- Technology company The Linde Group has been awarded with the engineering and supply of a modular hydrogen manufacturing unit for St1 Refinery in Gothenburg, Sweden, said the company on its website.

Linde’s Engineering Division will start the engineering and construction of the unit immediately, with the completion estimated for the end of 2018.

“This award adds to Linde’s winning streak of Syngas & Hydrogen Solutions (Hydroprime) for the renewable fuel industry," said John van der Velden, Member of the Board of Directors of Linde Engineering Division. "Linde’s ability to deliver unique single-sourcing supplies provides St1 with a cost-effective solution supporting their advanced biofuel production."

Linde is recognized as a global leader for the complete hydrogen generation process—manufacture, recovery, purification, storage, liquefaction and transportation, the company stated in a press release. From 300 Nm?/h to 150,000 Nm/h, from skid-built Hydroprime units to tailor-made hydrogen production plants, the proven long track expertise contains of more than 300 hydrogen production plants in safe, efficient and productive operation; executed from conceptual design through start-up and commissioning and product life-cycle services.

MRC

According to the National Statistics Committee of Belarus, Polymir, the local LDPE manufacturer, produced slightly over 5,200 tonnes of polyethylene (PE) in July 2017, compared to 2,700 tonnes a month earlier. The low June figure was a result of a scheduled shutdown for maintenance. Thus, Polymir's overall LDPE output was 33,700 tonnes in January-July 2017 versus 68,100 tonnes a year earlier.

The fire at one of the ethylene units in late June 2016, which led to a two-fold reduction in the olefin production, was the main reason for such a major fall in the output.

As reported earlier, an outbreak of gas-air mixture with the further flare combustion of outgoing products happened at workshop No. 104 on 18 June 2016. The fire damaged technological equipment at the ethylene unit, and some of the capacities have been idle since then. The plant's representatives said the ethylene unit would not be fully reconstructed this year.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968. The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the development of scientific research institutes and design institutes of the CIS countries. The plant's annual production capacity is 130,000 tonnes.

MRC

MOSCOW (MRC) — The US Department of Energy said on Tuesday it will sell 14 MMbbl of crude oil from the nation's emergency reserve in late August, said Hydrocarbonprocessing.

The sale from the Strategic Petroleum Reserve was expected as it was required under laws signed by former President Barack Obama in 2015 and 2016 to help fund medical research and the overall federal government.

The reserve, a series of caverns on the Louisiana and Texas coasts, currently holds nearly 680 MMbbl of oil, far more than required by international supply agreements.
MRC