SIBUR considering polystyrene production project with capacity of 250,000 tonnes/year by 2029 in Tatarstan

SIBUR is considering the possibility of implementing a polystyrene production project with capacity of 250,000 tonnes per year with completion of construction no later than 2028, according to company materials seen by Interfax.

Earlier, the company's executive director Alexander Petrov said that several options are being considered for processing ethylene produced at the EP-600 complex under construction at Nizhnekamskneftekhim , including production of styrene and polystyrene.

SIBUR is due to begin production at the EP-600 ethylene complex in Tatarstan in November 2024.

The launch of the EP-600 complex will allow SIBUR to increase polyethylene output by 150,000 tonnes at Kazanorgsintez after reconstruction, SIBUR chief Mikhail Karisalov said. In addition, some of the new ethylene volumes will be used as feedstock in the hexene production chain, a unit for the production of which SIBUR is already building in Nizhnekamsk. At the same time, some of the ethylene volumes from EP-600 have not yet been distributed among further processing projects, he said.

In addition to the existing ethylene production with capacity of 600,000 tonnes, NKNC is building a new olefin complex - the EP-600 ethylene unit with polymer production. EP-600 will allow for processing of 1.8 million tons of straight-run gasoline per year to produce 600,000 tonnes of ethylene and its derivatives.

Nizhnekamskneftekhim is one of the largest producers of synthetic rubbers in the world and of plastics in Russia, and has been a part of SIBUR since October 2021.

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U.S. manufacturers specializing in chemicals and petroleum refining have traditionally accounted for the largest shares of both hydrogen consumption and production, and they pay the least for it, said Hydrocarbonprocessing.

With new legislation, we expect changes to how hydrogen is consumed and distributed in the country.

EIA’s Manufacturing Energy Consumption Survey (MECS) data are collected and published every four years and remain the only nationally representative source of estimates of energy-related characteristics, consumption, and expenditures for manufacturing establishments in the United States. These data are critical to measuring energy intensity and understanding efficiency gains or losses within manufacturing.

We are currently collecting MECS data for 2022, and we expect to publish them beginning in the summer of 2025 through spring 2026.

Refiners, which make up much of the petroleum and coal products subsector under the North American Industry Classification System, and chemicals manufacturers tend to have more buying power than other manufacturing subsectors because they use more hydrogen. On average in 2018, the chemicals subsector paid $6.18 per million British thermal units (MMBtu) for hydrogen, and the petroleum and coal products subsector paid $6.77/MMBtu, according to the MECS data published in 2021. In the MECS, we report the average price of hydrogen purchased by manufacturing establishments for use in their on-site operations.

We remind, the Russian Industry and Trade Ministry expects manufacturing output could grow at least 5% if current trends persist in 2024, Denis Manturov, deputy prime minister and Russia's industry and trade minister, told reporters. The Russian Federal State Statistics Service (Rosstat) has said manufacturing sector output grew 7.5% year-on-year in January, accelerating to 13.5% in February. Manufacturing grew 7.5% in 2023.

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Russia's Lukoil has acquired a 50% stake in Kalamkas-Khazar Operating LLP (KKO) for $200 million, according to the 2023 financial report of Kazakhstan's National Company KazMunayGas (KMG), Interfax.

On February 9, 2023, KMG and Lukoil PJSC signed a purchase and sale agreement for a 50% share of KKO, a subsidiary of KMG, the holder of a contract for the production of hydrocarbons at the Kalamkas-Sea, Khazar and Auezov subsoil blocks located in the Kazakh sector of the Caspian Sea, according to the report.

On September 11, 2023, KKO was reregistered after the parties fulfilled the suspensive conditions of a purchase and sale agreement. As a result of the transaction, KMG lost control over KKO.

The sale price of the 50% share in KKO was 200 million USD (equivalent to 93,258 million tenge at the date of disposal of the subsidiary).

Lukoil PJSC made payment of cash consideration in the amount of 200 million USD on September 21, 2023.

In September 2023, KMG and Lukoil completed procedures for the sale of a 50% stake in Kalamkas-Khazar Operating LLP to Lukoil.

"KMG and Lukoil have closed the deal, as a result of which Lukoil has acquired a 50% stake in Kalamkas-Khazar Operating LLP," the company told Interfax in September of last year.

KMG and Lukoil now own Kalamkas-Khazar Operating, which is the operator of the Kalamkas Sea, Khazar and Auezov project in the Caspian Sea, on a parity basis.

On February 9, 2023 KazMunayGas and Lukoil signed a number of agreements relating to the development of the Kalamkas Sea, Khazar and Auezov blocks in the Kazakh sector of the Caspian Sea, including an agreement on the sale and purchase of a 50% holding in the charter capital of Kalamkas-Khazar Operating LLP and an agreement on terms and conditions for the financing of the project by its participants.

Kalamkas-Sea, Khazar and Auezov fields lie offshore the Caspian Sea about 60 km away from the coast and at a depth of 7-9 meters. The production is expected to start in 2028 and will total 3-4 million tonnes per year. The development costs are estimated at about $5 billion.

Kalamkas-Sea, which was discovered in 2002, is located 120 km southwest of Kashagan and very close to the Khazar field. The combined recoverable reserves of the Kalamkas-Sea and Khazar fields are estimated at 67 million tonnes of oil and 9 billion cubic meters of gas.

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Indorama Ventures' Combined PET business segment will enter into a consultation process with representatives of site employees to evaluate the possible future for production activities at its PTA (Purified Terephthalic Acid) and PET (Polyethylene terephthalate) plants, located at its integrated production site in Rotterdam, Netherlands, said Fibre2fashion.

The evaluation follows a comprehensive review aimed at bolstering the site's competitiveness. However, it occurs amidst notable competitive and macroeconomic challenges, including increasing labor, raw material, and energy costs, alongside the influence of low-cost imports. Structural shifts in the industry are contributing to a growing divergence in raw material expenses between China and Europe, with limited anticipated recovery. Consequently, there is a need to optimize the company's asset portfolio to enhance its position and ensure resilience in response to evolving market dynamics.

Customers will not be affected as Indorama Venture’s extensive global footprint will enable seamless operations leveraging alternative assets.

Commenting on the decision, Mr. DK Agarwal, deputy GCEO and president of Indorama Ventures’ Combined PET Business Segment stated, "The challenging macroeconomic environment, coupled with escalating geopolitical tensions and inflationary pressures, underscores the imperative for businesses to navigate wisely. In light of these factors and the ongoing structural transformations in our industry, we believe that a deep review of all our asset portfolio needs to be done jointly with all our stakeholders."

"Indorama Ventures’ global footprint has always been a competitive advantage ensuring reliable service to customers worldwide and it will continue to do so. Taking decisive action in this regard aligns with our strategic goals as we continually seek avenues to enhance value and bolster our cost competitiveness."

The company will focus on mitigating negative impact and providing care and support for any affected people.

This update follows the company’s announcement of 'IVL 2.0' earlier in 2024, signaling a new strategic chapter focused on optimizing financial structures, fostering organic growth, and delivering enhanced value to customers through sustainable solutions. The strategic pillars of action involve optimizing asset utilization, driving operational excellence, unlocking portfolio value, and maintaining leadership in core markets.

Indorama Ventures is a global leader in PET production, with operations spanning Asia, Europe, and the Americas.

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Brenntag, the global market leader in chemicals and ingredients distribution, today announced a strategic partnership with Knowde, the pioneering digital customer experience platform for the ingredients, polymers, and chemical industry. This collaboration marks a significant step forward in utilizing Artificial Intelligence (AI) to address the chemical industry’s uniquely complex Product Data Management challenges.

Christian Kohlpaintner, Chief Executive Officer of Brenntag SE, stated: “The rapid advancements in Artificial Intelligence over the last few years have enabled massive shifts in end-to-end data value creation. We are excited to be partnering with Knowde, a leader in the application of AI to chemical distribution data, to utilize their approach for our Product Data Management – knowing that this will be a pioneering step in the chemical distribution industry.”

Brenntag and Knowde will jointly focus on transforming the management of “unstructured” product information into a structured, harmonized, and multi-dimensional dataset, housed in a product information management (PIM) solution. Knowde’s AI-powered Knowledge Engine will be used to standardize product information, including applications and attributes, to enhance the experience for Brenntag customers and supply partners. Through their partnership, the two companies will streamline the product onboarding and sales processes, accelerate the integration of new acquisitions, improve sustainability tracking, and facilitate more sophisticated customer interactions.

Ali Amin-Javaheri, CEO of Knowde, commented on the collaboration: “As the global market leader, Brenntag’s scale and complexity in the chemical distribution industry are second to none. Knowde’s software solutions will enable them to better leverage their data to fully capitalize on their comprehensive portfolio and unique global footprint. Companies like Brenntag that embrace digitalization will have a significant competitive advantage. We look forward to partnering with Brenntag’s team to accelerate their digital transformation and unlock innovative new opportunities for growth.”

Ewout van Jarwaarde, Chief Executive Officer of Brenntag Essentials and Brenntag Management Board member responsible for the Digital and Data domain, added: “Artificial Intelligence is fundamental to our digital and data transformation, as we continue to shape our industry and adapt to this new age in order to become easiest to do business with. Working alongside Knowde, we aim to modernize our product information, bringing greater knowledge and value to both our supply partners and customers, while taking another step towards driving sustainability in our industry.”

This partnership with Knowde is among several initiatives Brenntag is undertaking to unlock value from its comprehensive set of data. The company is already utilizing AI across various areas, including sales, where it empowers the sales team to make informed decisions for sustained growth, customer service, and the optimization of demand and supply for AI-powered integrated business planning.

We remind, Brenntag, the global market leader in chemicals and ingredients distribution, today announced the acquisition of Lawrence Industries Ltd., a leading independent specialties distributor in the UK. This acquisition further strengthens the company’s position within Material Science and across the Coatings, Adhesives, Sealants and Elastomers (CASE), Construction, Polymer and Rubber industries, as it accumulates a broad eco-system of leading toptier supply partners and a high-quality portfolio, most strongly driving market needs of formulation solutions and leading sustainability footprint.

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