SCG Chemicals to test run its Vietnam petrochemical complex in November and December

Long Son Petrochemicals, a unit of Thailand's SCG Chemicals, will test run its new petrochemical complex in southern Vietnam in November and December, said Hydrocarbonprocessing.

Full commercial production at the facility will begin early next year, the company said in a statement. The $5-B facility in Ba Ria Vung Tau province will produce 1.4 million metric tons of plastic resins a year, the company had earlier said, adding that its raw materials, naphtha and propane, will be imported mostly from the Middle East.

The head of Thai conglomerate Siam Cement Group, the parent of SCG Chemicals, said in June the complex would start commercial production by September. "A typical commissioning and test run process for a large complex takes a couple of months, this is to ensure safety and fine-tune machine conditions," the latest statement said.

Its annual output will include 500,000 tons of high density polyethylene, 500,000 tons of linear low density polyethylene and 400,000 tons of polypropylene.

We remind, W. R. Grace & Co, the leading independent supplier of polyolefin catalyst technology and polypropylene process technology, today announced that Oriental Energy Co. Ltd. has started up a new plant with Grace’s UNIPOL PP Process Technology. Located in Maoming, China, the new 400 Kpy reactor line began producing high-quality homopolymers and random copolymers on September 15, 2023.

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PetroChina, the largest oil and gas company in Asia, announced on Monday a 21% year-on-year increase in net profit for the third quarter of 2023, said Reuters.

The company’s net profit reached a record high of 46.38 billion yuan ($6.3 billion), driven by increased production and improving domestic fuel demand. While PetroChina’s net profit soared, its revenue fell by 4.6% to 802 billion yuan. This decline can be attributed to lower realized oil and gas prices.

PetroChina’s crude oil output between January and September rose by 4.3% compared to the previous year, reaching 706 million barrels. This growth includes a significant increase of 22% in overseas production, totaling 122 million barrels. Additionally, natural gas output increased by 6.1% to 3,656.6 billion cubic feet.

“The company seized the opportune timing of recovery in Chinese macro economy and rebounds in oil and gas markets,” PetroChina said. Despite its strong performance, PetroChina faced challenges in oil and gas prices. The company reported a realized oil price of $75.30 per barrel during the nine-month period, representing a 21% decrease compared to the previous year, as global oil prices fell following a spike prompted by Russia’s invasion of Ukraine.

Domestic gas prices also fell by 4.8% to $8.81 per thousand cubic feet. PetroChina’s refining capacity has also seen growth where crude oil processing at the company’s refineries increased by 16.5% in the first nine months of the year, reaching 1,044 million barrels or 3.82 million barrels per day.

This increase is in line with other national refiners that have ramped up production to meet recovering domestic fuel demand as well as cashing in on the lucrative export business. The company’s total sales of gasoline, diesel, and jet kerosene rose by 13.4% compared to the previous year, reaching 125.6 million tons. Domestic sales accounted for 93 million tons, representing a 17% year-on-year growth.

We remind, Petrochina Guangxi has entered into a license agreement with Grace to use its Unipol PP technology for its new 400 kilotons per annum single reactor line in China. With this move, Petrochina Guangxi aims to deliver higher value PP products to the local market. Grace has announced the signing of a new license with Petrochina Guangxi to develop a 400-kilotons per annum single reactor line using its Unipol PP technology.

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W. R. Grace & Co, the leading independent supplier of polyolefin catalyst technology and polypropylene process technology, announced that Oriental Energy Co. Ltd. has started up a new plant with Grace’s UNIPOL PP Process Technology, as per Hydrocarbonprocessing.

Located in Maoming, China, the new 400 Kpy reactor line began producing high-quality homopolymers and random copolymers on September 15, 2023.

Oriental Energy now operates four sites utilizing the UNIPOL PP technology offering 1.6 million tons of PP licensed capacity: 400 KTA at Zhangjiagang (which started up in 2015); two 400 KTA reactor lines in Ningbo (which started up in 2021); and the new plant in Maoming. Oriental Energy currently holds the largest total UNIPOL PP process technology capacity in operation in China.

Sandra Wisniewski, President of Specialty Catalysts at W. R. Grace, said, "The collaboration with Oriental Energy towards the successful start-up in Maoming marks another milestone in our partnership. Our advanced PP process technology delivers on our Plant Lifetime Performance™ commitment, as evidenced by the longstanding relationship between our two companies.”

Echoing the sentiment, Mr. Sun Canqian, General Manager at Oriental Energy (Maoming) Co. Ltd., added, "We appreciate the joint effort the Oriental Energy and Grace teams provided to ensure a successful start-up, demonstrating a catalysis reaction that occurred within 10 minutes of injection. This new UNIPOL PP technology line aligns with our commitment to providing quality polypropylene products in China."

Oriental Energy selected UNIPOL polypropylene process technology because of its reliable production capabilities, cutting-edge PP technology, proven catalyst performance, and technical service. The process technology enables the production of high-performance polypropylene resins used for a variety of applications, such as automotive parts, packaging, consumer goods and infrastructure materials.

We remind, Long Son Petrochemicals, a unit of Thailand's SCG Chemicals, will test run its new petrochemical complex in southern Vietnam in November and December, the company said on Wednesday. Full commercial production at the facility will begin early next year, the company said in a statement. The $5-B facility in Ba Ria Vung Tau province will produce 1.4 million metric tons of plastic resins a year, the company had earlier said, adding that its raw materials, naphtha and propane, will be imported mostly from the Middle East.

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Clariant posted a 28% decrease on earnings before interest, tax, depreciation and amortisation (EBITDA) in the third quarter amid lower prices and volumes, the company said.

Clariant expects to see an easing inflationary environment, but no economic recovery in the final three months of 2023, with macroeconomic uncertainties and risks remaining.

Despite that, Clariant confirms its sales guidance for the full year 2023 of Swfr4.55bn–4.65bn, it said.

Also, it keeps its reported EBITDA guidance for full year 2023 at Swfr650m-700m, and 14.3%–15.1% reported EBITDA margin.

We remind, Clariant's second-quarter earnings fell as margins dropped amid lower volumes and continued customer destocking. Q2 earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell to 16.1% from 16.6% in the same period a year earlier. Inventory devaluation resulting from lower raw material prices (-12%) in the second quarter weighed on profitability as well. The full year 2023 reported EBITDA is expected between Swfr650m-700m with reported EBITDA margin at 14.3%–15.1%.

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TotalEnergies has reported net income of $6.67bn (€6.33bn) in the third quarter of 2023, a marginal 1% increase compared with $6.62bn in the same period a year ago, said the company.

In the July–September quarter of 2023, the French oil and gas company reported $54.41bn in revenue from sales, a 16% decline from $64.92bn in Q3 2022.

During the period under review, hydrocarbon production (excluding Novatek) was 2.48 million barrels of oil equivalent per day (boed), up by 5% year-on-year (YoY).

Start-ups and ramp-ups, such as Absheron in Azerbaijan, Johan Sverdrup Phase 2 in Norway, Mero 1 in Brazil, Ikike in Nigeria and Bloc 10 in Oman, were credited with improving production.

Additional reasons that led to higher output included less scheduled maintenance, fewer unforeseen outages, and better conditions in Nigeria and Libya.

In the quarter that ended 30 September 2023, exploration and production-adjusted net operating income was $3.13bn, down 26% YoY.

We remind, TotalEnergies has announced the construction of a new mechanical recycling unit for plastic waste at its Grandpuits site in France, said the company. The new unit can produce 30,000 tonnes/y of high value-added compounds containing up to 50% recycled plastic material once it become operational in 2026. A specific centre will also be created that will provide technical assistance to customers and develop new products.

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