Bangladesh set to sign 15-yr gasoil import deal with India

MOSCOW (MRC) -- Bangladesh Petroleum Corp (BPC) is set to sign a 15-yr deal with Indian oil refiner Bharat Petroleum Corp Ltd (BPCL) to import gasoil to meet the country's energy demand, two company officials with the direct knowledge of the matter said, as per Reuters.

The sales and purchase agreement is expected to be signed on Oct. 22 during Indian Foreign Minister Sushma Swaraj’s visit to the capital of Dhaka, the BPC officials said. The deal will be the country’s first long-term agreement with any Indian supplier.

BPCL will supply up to 250,000 t of gasoil each year from its majority owned Numaligarh refinery for the first three years of the deal to the BPC's northern fuel depot via a 79 mi pipeline, which will be built by India, they said.

"The volume will be increased in line with our demand," said one of the officials, adding the deal would come into effect when the pipeline is built.

Numaligarh refinery is already supplying a small volume to the state-owned BPC for the country's northern region. The refinery, located in the eastern Indian state of Assam, will supply around 22,000 t of gasoil with a sulfur content of 500 parts per million (ppm) between October and December by railroad, the officials said.

BPC will pay a premium of USD5.50/bbl over Middle East quotes under the 15-yr deal, up from the current premiums of USD2.20/bbl for gasoil cargoes it receives by tanker through the country's southeastern port of Chittagong, said one of the officials.

"This is cost-effective because there is no additional transport cost as the supply is being unloaded in our depot in the northern part," the BPC official said. BPC received its first batch this month under the three-month agreement and its fourth since 2016 amid warming ties between the two neighboring countries.

Bangladesh typically ships in around 3.2 MMt of diesel and 2.5 MMt of fuel oil annually. Sellers include Kuwait Petroleum Corp, Malaysia's Petroliam Nasional Berhad, Emirates National Oil Company, Philippines National Oil Co, Vietnam's Petrolimex, Thailand's PTT, Indonesia's Bumi Siak Pusako and Zhenhua Oil.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced the completion of key debottlenecking projects and product transfers at its global manufacturing facilities to support customer demand and project pipeline growth in the company's engineered materials business, said the producer in its press release.

"These production debottlenecks, completed in the past 12 months, have increased output by more than 10 percent at each unit, respectively, and demonstrate a commitment and focus on meeting the demands of our global customers for specialty engineered materials," said Scott Richardson, senior vice president, Celanese engineered materials business. "Combined with new production lines - which will be announced early next week - we are confident in our ability to support the tremendous customer growth that is coming from our project pipeline," said Richardson.

In the past 12 months, Celanese has completed debottlenecks or product transfers of specific polymer production lines at these facilities:

- GUR UHMW-PE at the Celanese Bishop, Texas and Nanjing, China facilities.
- Hostaform/Celcon acetal copolymer (POM) at the Celanese Bishop, Texas facility.
- Hostaform/Celcon acetal copolymer (POM) at the Celanese Frankfurt, Germany chemical complex.
- Fortron polyphenylene sulphide (PPS) at the joint venture facility in Wilmington, N.C.
- Expanded a global thermoplastic polyester (PBT) network into Mexico with the transfer of Celanex grades into the recently acquired Silao, Mexico facility.

We remind that, as MRC informed earlier, Celanese Corporation increased October list and off-list selling prices for Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene (EVA) emulsions sold in Europe. The price increases were effective October 1, 2017, or as contracts otherwise allow, and were incremental to previously announced increases. The following price rise was applied:

- VAM - by EUR200/mt;
- EVA - by EUR90/mt;
- VAM Homopolymers (PVAC) - by EUR90/mt;
- VAM Copolymers - by EUR90/tonne;
- Pure Acrylics - by 120 EUR120/tonne;
- Styrene Acrylics - by EUR90/tonne.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
MRC

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) began a gradual resumption of its high density polyethylene (HDPE) production after a shutdown for a scheduled turnaround, according to ICIS-MRC Price Report.

Kazanorgsintez began gradually resuming its HDPE production on 17 October after the scheduled maintenance. The plant's representatives said the full resumption of production would take several days and would have been finished by the beginning of next week. It was also reported that commercial production would be received only by the weekend.

The outage at Kazanorgsintez was quite long and partially began on 12 September. The complete shutdown took place on 28 September.

As reported earlier, HDPE production at Stavrolen (part of Lukoil) was still shut for maintenance. The partial resumption of polyethylene (PE) production at the Budyonovsk plant is expected in November, and the plant will reach the full capacity untilisation only in January 2018. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces over 38% of overall Russian PE and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of pipe grade HDPE. The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

MOSCOW (MRC) -- Gazpromneft Lubricants Ltd, operator of the Gazprom Neft lubricants business, has announced that it has begun production of Gazpromneft TDAE (treated, distillate, aromatic, extracted) lubricant-plasticiser at its Omsk plant in Russia, using its own patent technology, reported GV.

The investment in the project, including the modernisation of a 17,000 t/y plasticiser facility at the Omsk refinery, amounted to more than RUB 400 million (~ EUR 5.8 million). According to the company, the new “green” process oil - designed to give plasticity and flexibility to rubber, tyres, and fabricated rubber products - meets latest international environmental requirements.

Established in November 2007, Gazpromneft Lubricants has six production facilities throughout Russia, Italy and Serbia. Total production volumes stand at over 500,000 t/y of premium oils, lubricants and service fluids.

As MRC informed before, in March 2017, Gazprom Neft began construction of a standalone 12,300 tpy-capacity hydrogen production unit at its Omsk Refinery. This processing facility will provide high-purity (99.9%) hydrogen for new and reconstructed hydrotreatment facilities, intended to reduce the sulfur content of motor-fuel components (blending agents). It will also eliminate hydrotreatment processes’ dependence on the rate of utilization of catalytic reforming units, from which hydrogen is currently produced as a by-product.
MRC

MOSCOW (MRC) -- Covestro has announced that it will expand its thermoplastic polyurethane production capacity in North America by 25% by debottlenecking its New Martinsville, WV, USA, manufacturing facility, as per GV.

The additional capacity is expected to come online in the second quarter of 2018.

According to Covestro, the investment signifies the strategic importance of TPU in the company’s overall portfolio. As the demand for TPU rises both in North America and globally, the additional capacity will allow Covestro to continue to support the growth of its customers as well as explore new market opportunities, the company said.

"We are very enthusiastic about the expansion of capacity in North America,” said Marius Wirtz, Global Head of TPU. “This aligns with our expansion activities in other regions and is a sign of our commitment to this innovative and versatile polymer."

Covestro’s TPU investment will expand production of its Texin line, which is used in diverse extrusion and injection moulding applications.

As MRC reported earlier, on 1 September, 2015, Bayer MaterialScience became known as Covestro. Bayer aims to float this business on the stock market by mid-2016 at the latest. The plans for the carve-out of Bayer MaterialScience were announced in September 2014.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC