Chevron Phillips Chemical completes study of normal alpha olefin expansion in Texas

MOSCOW (MRC) -- Chevron Phillips Chemical Company LP, the petrochemical venture of US oil producer Chevron Corp. and refiner Phillips 66, has announced the completion of its study to expand normal alpha olefin (NAO) capacity at its Cedar Bayou plant in Baytown, Texas, and receipt of approval to proceed with detailed engineering, design and procurement of long-lead equipment, according to the company's press release.

The capacity expansion is targeting a 20% minimum increase in a phased approach. Final project approval will be sought in the first quarter of 2014.

Construction would be targeted to commence in the first quarter of 2014, and the project would be completed in the second quarter of 2015.

"This is a critical milestone in meeting our goals to remain a consistent and reliable supplier to our customers and to meet their growth strategies," said Mitch Eichelberger, general manager of normal alpha olefins and polyalphaolefins for Chevron Phillips Chemical. "We are well-positioned to take full advantage of the abundant resources from shale resource development and to support our customers as they continue to grow their businesses."

Normal alpha olefins and their derivatives are used extensively as polyethylene co-monomers, plasticizers, synthetic motor oils, lubricants, automotive additives, surfactants, paper sizing, and in a wide range of specialty applications.

As MRC informed earlier, Yokogawa Electric Corp. has been recently selected as the main automation contractor for Chevron Phillips Chemical Company LP’s USGC Petrochemicals Project. The project, first announced in March 2011, will include an ethane cracker with capacity to produce 1.5 mln tpa and two new polyethylene facilities, each with an annual capacity of 500,000 tonnes. The ethane cracker will be built at Chevron Phillips Chemical’s Cedar Bayou plant in Baytown, Texas, and two polyethylene units will be built at a site in Old Ocean, also in Texas and near Chevron Phillips Chemical’s Sweeny plant.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) -- In 2013, the European market for cables was worth circa EUR 20 billion, as per Plastemart.

Expressed in terms of plastic compound-on-the-cable, this market lost circa 15% of its 2007 peak volume. However, the performance has not been uniform – some regions performed considerably better than others.

Cables are used either to transport electrical power or to convey data. Most typically, they consist of metal conductors and plastic compounds, the latter providing electrical insulation, as well as mechanical, thermal and chemical protection. Some cables are complex in design, with multiple conductors, insulation, shielding and protection layers. Cables are utilised in many sectors, especially in building and infrastructure, in transport (automotive, railway rolling stock, naval applications), as well as in electro-domestic appliances and industrial equipment.

A wide variety of plastic compounds are used in cable applications, where they help fulfil the exacting requirements of users and of modern regulation. Often, there are multiple competing solutions – indeed the study analyses in depth the various inter-solution and inter-material competition trends. Technological progress generates frequent improvements in materials and processes.

The study found that circa 200 firms manufacture cables in Europe, operating more than 300 production sites. From a structural point of view, Europe’s cable manufacturing industry may be described as comprising a "leading pack" of large groups, followed by a long tail of relatively small, specialised or local players. European producers face significant challenges, including commoditisation of certain types of products, competition with non-European imports and regulatory changes.

European manufacturers are adjusting their strategies in an effort to avoid the threats and exploit the opportunities arising from the market dynamics. As a result, some companies will emerge as winners, while others will find it increasingly difficult to compete. This is likely to result, in the following years, in deep structural changes in the
industry.

As MRC wrote before, Russian cable producer "Kamskiy cable" plans to open a new production of cables for medium and high voltage XLPE insulation "Peroxide-2". In a future project, "Kamsky cable" intends to establish eleven units of the new equipment and upgrade two existing plants. The aim of the project is to launch a new line of cables XLPE medium voltage.
MRC

MOSCOW (MRC) -- Russian independent Lukoil is set to drill two wells on its pair of blocks in the Romanian sector of the Black Sea in 2014, said Upstreamonline.

Romgaz development director Radu Gheorghe told Romania’s Ziarul Financiar newspaper that "we plan to dig at least two wells" next year.

The Romanian state gas producer holds a 10% interest in the holds Est Rapsodia and Trident blocks since farming in this time last year.

Lukoil operates the block on a 72% working interest, while Houston-based PanAtlantic Exploration, formerly Vanco International, holds an 18% stake.

The Moscow-headquartered explorer was awarded the two blocks by Romanian authorities in 2011, and contracted CGG for a seismic acquisition programme on the blocks that was completed late last year.

The contiguous blocks cover 2014 square kilometres of the Black Sea in water depths of between 100 metres and 1000 metres.

As MRC wrote before, Karpatneftekhim (LUKOIL group) resumed polyethylene (PE) and polyvinyl chloride (PVC)production in Ukraine. The resumption of PE and PVC production will fully meet the needs of the Ukrainian market in these products.
MRC

МOSCOW (MRC) -- LG Chem is in plans to shut an aromatics plant for maintenance turnaround, said Apic-online.

The plant is likely to be shut in mid-October 2014. The duration of the shutdown could not be ascertained. Located in Yeosu, South Korea, the plant has a benzene capacity of 240,000 mt/year, toluene capacity of 96,000 mt/year and solvent xylene capacity of 36,000 mt/year.

As MRC informed previously, South Korean petrochemical company LG Chem is planning to build an ethylene production plant in Atyrau, Kazakhstan. The project is going to be constacted in collaboration with two other Kazakh firms. The production is expected to begin in late 2016.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- The flexible packaging market is estimated to grow from USD73,825.3 mln in 2012 to USD99,621.9 mln by 2018 with a CAGR of 5.1% from 2013 to 2018, as per Plastemart with reference to MarketsandMarkets.

Asia-Pacific led the global market followed by Europe and North America in terms of revenue in the year 2012. Flexible packaging market is a mature sector that has various stake holders such as raw material suppliers, processors, packaging manufacturers, and end-user industries such as manufacturers of food, beverage, personal care products, and pharmaceuticals.

Packaging is essential to preserve the quality of the product and it also prevents it from chemical reactions endangering the consumer’s health. Rise in the consumption of packaged products offers a strong customer base for the global flexible packaging market. Hence, an efficient and suitable packaging is imperative for every product.

The important materials used in flexible packaging market are polyethylene, polypropylene, BOPET, EVOH, polyamide, paper, aluminum, cellulosic, and PVC. This raw material is converted into films that are further converted into pouch, sachet, and bags in which the products are packaged.

Food dominated the flexible packaging market and pharmaceutical segment promises a healthy and fast growth in the market. Asia-Pacific has the highest market share and is estimated to grow with a CAGR of 7.1% during the period under review.

Europe is growing with a CAGR of 3.9%, and is driven mainly by the East European markets. ROW is also expected to experience growth in flexible packaging market in the future. The CAGR for ROW is 6.0% from 2013 to 2018. The four most potential nations for flexible packaging market are India, China, Russia, and Brazil which are poised to exhibit the fastest growing trend

In the flexible packaging market, pharmaceutical packaging is the fastest growing market with a CAGR of 7.1% during the forecast period. Following it, the food packaging is estimated to be the second fastest growing market in 2013, due to the rise in consumption of packaged food.

As MRC reported earlier, in October, 2013, BASF started up a tailor-madepolyamide coextrusion line for packaging and technical films at its Ludwigshafen site. With the collaboration of customers from the film industry, the line will be used to develop new applications for Ultramid polyamides. The line can produce cast and blown films with up to seven layers.
MRC