The incident at LINIK not to affect Ukrainian PP market

(MRC) -- PP production at Lisichansk refinery (LINIK) has been suspended until September, 20 due to the accident, which resulted in triethylaluminum leakage, as per unofficial sources.

According to MRC analyst Sergey Karaichentsev, the incident won't influence Ukrainian PP market. At the moment company's PP stocks exceeds 7 KT. In August, the Ukrainian market imported 9 KT of the feedstock. LINIK formed significant stocks before a scheduled replacement of heat exchanger.

The accident happened on the night of 14 to 15 September. There was a leakage of triethylaluminum at D-201 drainage line on R-200 reactor with a working pressure of 30 atm. According to the Office Emergency Situations of Lugansk Regional State Administration, the reactor R-200 is switched out now.


Chevron Phillips US cracker could be on line by Q1 2017

(ICIS) -- A new US Gulf coast cracker under contemplation by Chevron Phillips Chemical could be on line by the first quarter of 2017, CEO Peter Cella said on Thursday. Cella said Chevron Phillips was continuing its study of the project, with plans to disclose the results by the end of this year. Chevron Phillips announced the study in March.

Chevron Phillips would announce whether it plans to proceed with the project and where it would be constructed. The announcement also would include the cracker's technology and its size, Cella said.
⌠And first part of next year would be an important milestone for us to submit our permit and get what I call preliminary spending approval for the next phase of the project from our parents, Cella said.
Chevron Phillips is a joint venture between Chevron and ConocoPhillips.

⌠We know that getting a permit for an investment like that [a cracker] can be a complex process, and we want to fulfil every permit requirement that is out there, Cell continued. ⌠I think if everything works according to the plan we envision today, we would be looking at a first quarter 2017 start-up.

If given the go-ahead, the project would be located at one of Chevron Phillips's existing sites on the US Gulf. In Texas, the company operates at Orange, Cedar Bayou, Pasadena, Sweeny and Port Arthur. The study is driven by the new development of US shale gas reserves.

Market sources said in March that US ethylene capacity could increase by 4% if Chevron Phillips moves forward with the project.


Asian naphtha prices are expected to strengthen further

(ICIS) -- Asian naphtha prices are expected to strengthen further, supported by continuous low exports from India and limited deep-sea inflows from Europe, traders said on Friday. Regional demand for the petrochemical feedstock remains stable and with demand outpacing supply, the premiums in recent spot tenders have edged higher, they added.

The naphtha crack spread against November Brent crude futures widened to USD 124.35/tonne (EUR 89.53/tonne) on Thursday from USD 119.88/tonne earlier in the week, ICIS data showed. Stronger global crude futures on Friday were a further boost. The naphtha contract for the first half of November jumped by USD 17.50-18.50/tonne from Thursday to close at USD 982.50-985.50/tonne CFR (cost & freight) Japan, according to ICIS data.

The October East-West spread was at around USD 6.70/tonne, too marginal for players to consider bringing in cargoes from Europe, traders said.

Meanwhile, Indian refiners are expected to raise their naphtha exports in October to 800 KT from around 700-750 KT in September, although the volumes remain below the usual monthly average of 850 KT.

The volumes in September were unusually low because of plant turnarounds, while the volume of exports in August was in the high-900,000s, the traders said.


Chevron Phillips to acquire a polyalphaolefin plant in Belgium

(ICIS) -- US oil firm Chevron Phillips Chemical said on Friday it has agreed to acquire a polyalphaolefin (PAO) plant in Belgium from Finland's Neste Oil for an undisclosed amount, to expand the company's presence in Europe. ⌠The purchase is expected to be completed within a few months, following regulatory approvals and satisfaction of necessary closing conditions, Chevron Phillips said in a statement.

⌠The addition of this plant to our existing asset base will more than double our production capability, allowing us to better serve the growing demand for PAOs used in high-performance lubricants and other applications, said Dennis Holtermann, general manager of normal alpha olefins and polyalphaolefins at Chevron Phillips Chemical.

In a separate statement, Neste Oil said the Beringen plant produces polyalphaolefins (PAO) and Group IV base oils, which are the main components used in high-performance synthetic lubricants and premium motor oils.


Dow Chemical scored another coup with its ⌠Unipol technology in China

(Plasteurope) -- Dow Chemical has scored another coup with its ⌠Unipol technology in China. The US group has clinched a deal with Qinghai Salt Lake Industry to license the process for a new 160 KTa PP production plant at Xining in central China's Qinghai province, set for start up in the second half of 2013. According to Dow, Quinghai Salt Lake is the eighth licensee of the Unipol PP process in China.

The relatively small polypropylene unit is to form part of an integrated coal-based magnesium metal complex planned by the potassium specialist. As part of the project, coal gasification will be used to generate ethylene and propylene as feedstock for the PP unit. The Chinese company also intends to leverage its salt and coal resources to build a 300 KTa PVC plant at its Xining site.

The two contracts for Dow and recent awards made to other North American and European technology licensors appear to underscore that China's coal-to-olefins strategy is moving into high gear. Recently, Ningxia Baofeng Energy Group selected the Ineos ⌠Innovene process for its new 300 KTa PP plant at Ningxia, earmarked for start-up in 2015.