Formosa opens new LDPE plant in Texas

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, started up its 400,000 tons/year low density polyethylene (LDPE) plant in Point Comfort, Texas, US, on 30 November, 2020, according to PlasticsNews.

The plant last was expected to become on-stream by late July or early August. The decision reportedly came after some workers tested positive for the coronavirus, which led to a reduction in workforce.

The new LDPE plant was originally due to become operational by the end of 2019 but it has been delayed multiple times since then.

As MRC reported earlier, Formosa Plastics' new 1.5 million mt/year cracker in Point Comfort, Texas, came online in H1 January, 2020, and was seen ramping up through January.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, October estimated LDPE consumption in Russia grew to 50,030 tonnes from 23,930 tonnes a month earlier. Russian producers increased domestic LDPE shipments after the September shutdowns for maintenance. Russia's estimated LDPE consumption was about 456,490 tonnes in January-October 2020, down by 1% year on year. Lower production was offset by higher imports.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Solvay says it is extending its partnership with Boeing by signing a long-term enterprise agreement to supply composites and adhesives across all Boeing commercial and defense aircraft programs, including primary and secondary structures, interiors, and surfacing, reported Chemweek.

"This contract renewal reinforces Solvay’s more than 30-year relationship with Boeing," says Carmelo Lo Faro, president/composite materials at Solvay. The company says that it supplies Boeing with a large portfolio of advanced materials including thermoset and thermoplastic composites, adhesives, and surfacing films from its locations in the US, Europe, and China.

"This contract enables Boeing to secure material supply for all our strategic programs and brings some certainty to a volatile environment," says Elizabeth Lund, vice president and general manager/commercial airplanes supply chain at Boeing.

As MRC informed earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- LyondellBasell (Rotterdam, the Netherlands) declared force majeure on polypropylene (PP) supplies from France, according to NCT with reference to a source familiar with the matter.

The news could not be confirmed directly by the company while the reason for the force majeure was not disclosed at the time of press.

As MRC reported earlier, in September 2020, LyondellBasell, the world’s largest licensor of polyolefin technologies, announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) hds selected LyondellBasell’s world-leading PP and high-density polyethylene (HDPE) technologies for a new facility.

The new plants will comprise of a PP plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr high-density polyethylene (HDPE) plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.once again the trust investors and operators place in our leading polyolefin expertise."

According to MRC's ScanPlast report, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Imports of liquefied petroleum gas (LPG) into northwest Europe from the US plunged by 75% in November month-on-month, as a second wave of new COVID-19 infections sent feedstock buyers running for cover, according to Chemweek.

Total US-origin cargoes coming to northwest Europe were estimated at 95,000 metric tons in November, down from 400,000 metric tons in October, which was the highest for 2020 so far. Total November LPG cargo trade in northwest Europe was down by 16% to an estimated 675,000 metric tons compared to October, while intake as petrochemical feedstock for the month declined 29% from October’s level to 400,000 metric tons.

The return of regional and national lockdowns early in November, and subsequent partial and gradual cargo liftings, appeared to take CIF Amsterdam-Rotterdam-Antwerp propane and CIF northwest European naphtha prices in different directions. Propane saw a USD6/metric ton rise over the month to USD382/metric ton from USD376/metric ton, whilst naphtha rocketed by USD54/metric ton to USD393/metric ton, from USD339/metric ton. The relative price swings resulted in the propane/naphtha spread shifting from USD35/metric ton at the start of November to minus USD9/metric ton by the end of the month, averaging USD6.5/metric ton for the month as a whole.

The local North Sea supply of LPG entering the petchems feedstock pool was 290,000 metric tons in November, equivalent to 73% of total feedstock intake, up markedly from 165,000 metric tons in October. The remainder of intake from the petchems sector in November saw 13% come from the US east coast, down from 32% in October. Imports from the US Gulf Coast were just 11% of the intake, down from 36% in October. The retail and refining sector saw LPG intake stable at 180,000 metric tons month on month.

Exports out of northwest Europe in November climbed to 95,000 metric tons from 60,000 metric tons in the previous month, with cargoes moving to the Baltic, eastern Mediterranean, US east coast and the Caribbean. Exports of LPG from Ust-Luga in the Russian Baltic to northwest Europe were an estimated 13,000 metric tons.

OPIS is an IHS Markit company.

As MRC reported earlier, expectations of a seasonal increase in heating demand ha prompted Asian petrochemical makers to buy LPG as cracker feedstock to capitalize on positive olefin margins, though any further purchases could be limited by a rebound in the LPG market led by renewed Chinese and possibly Indian imports, trade sources said S&P Global in August, 2020.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- South Africa’s second-largest crude oil refinery, the Engen plant in Durban, has been shut down to allow investigators a chance to find out the cause of a “fire incident” earlier on Friday, reported Reuters with reference to Engen's statement.

Engen, which operates the 120,000 barrel per day plant and is majority owned by Malaysia’s Petronas, said a fire broke out at around 0510 GMT and was extinguished by 0645 GMT.

“Engen is currently assessing its overall bulk fuels supply and demand position and implementing immediate mitigations to manage inventory and product supply requirements,” Engen said in an update.

Local emergency services said seven people were injured, although Engen said no injuries were recorded and all refinery personnel were accounted for.

“I saw a massive fireball at the centre of the refinery with thick black smoke billowing from it,” Durban resident Shane Lloyd Pretorius told Reuters.

Engen said in a statement that the cause of the fire was under investigation.

A Reuters witness at the scene saw several fire engines spraying foam onto the affected part of the refinery, as well as ambulances, metropolitan police and national police standing by.

Africa’s most industrialised economy has six refineries, four using crude oil and two synthetic fuel as feedstock. It is a net importer of petroleum products.

The country’s third-biggest crude oil refinery, a 100,000 bpd facility operated by Astron Energy in Cape Town, also suffered an explosion earlier this year.

Top refinery SAPREF, which is also located in Durban and is a joint venture between BP and Shell, said the incident at Engen’s facility had no impact on its operations.

The Engen Refinery and SAPREF form part of a major petrochemical hub on the east coast close to Durban’s port.

As MRC informed previously, in June 2019, Malaysian state oil company Petroliam Nasional Bhd, or Petronas, and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC