NOVA to expand Ontario ethylene cracker by 20%

MOSCOW (MRC) -- NOVA Chemicals plans to expand ethylene production capacity by 20% at its cracker in Corunna, Ontario, as per Hydrocarbonprocessing.

The Corunna cracker has a current capacity of about 839,000 tpy, according to media reports.

The expansion will occur between 2014 and 2018, according to the company. It will be part of a wave of expansions and upgrades to NOVA's existing facilities near Sarnia, Ontario.

Other upgrades in the plan include a debottlenecking of the Moore low-density polyethylene (LDPE) line and a retrofit of the Moore high-density polyethylene (HDPE) line.

"These projects are intended to build on the impact of the Corunna cracker conversion to utilize up to 100% natural gas liquids (NGLs) to enhance NOVA Chemicals’ capabilities to meet growing and more sophisticated customer demands," the company said in a statement.

The estimated cost of the projects, under the company's NOVA 2020 growth strategy, is USD300 million.

As MRC reported earlier, growth in the LDPE market is part of NOVA 2020, the company's long-term asset strategy to capitalize on emerging feedstock opportunities and growing North American demand. Restoring the Moore facility is the first step in NOVA Chemicals’ plan to strengthen its commitment to the LDPE market to better meet the needs of customers.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.
MRC

Global ethylene market to grow by 6.2% CAGR through 2017

MOSCOW (MRC) -- The global ethylene market is expected to exhibit a 6.2% CAGR through 2017 and grow from USD 131.88 billion in 2012 to over USD 177.82 billion in 2017, reported Digital Journal.

In 2012, the North American ethylene market was worth more than USD 37.77 billion. The regional market is forecast to surpass the USD 46.6 billion mark in 2017, registering a 4.3% CAGR in the upcoming years.

The considerable growth in the North American ethylene market is likely to be spurred by the entrance of new companies attracted by the low-cost and abundant natural gas liquids (NGLs) feedstock. The US capacity additions are predicted to experience a 6.1% CAGR in the offing, likely to increase from 27.17 million metric tons per year (MMTY) in 2012 to almost 36.5 MMTY by 2017-end.

The Dow Chemical Company, LyondellBasell Industries N.V. and Exxon Mobil Corporation are among the leading companies engaged in the ethylene industry in North America.

As MRC wrote before, in late 2012, GlobalData predicted that the ongoing shale revolution wouldl guide the US ethylene industry surge in the near future, growing by more than a third by 2017.

Five years ago, the US was one of the most expensive places to produce ethylene, but the ethane-based US petrochemicals industry is now in a better position than the naphtha-based petrochemicals industries of Europe and Asia-Pacific, and second only to the Middle East in terms of production economy.
MRC

Entergy Gulf States Louisiana to power Sasol ethane cracker

MOSCOW (MRC) -- Entergy Gulf States Louisiana, L.L.C. signed a six-year commercial and contractual agreement with Sasol North America, Inc., a wholly-owned subsidiary of Sasol Limited, to supply up to 200 megawatts of electric power to Sasol proposed ethane cracker and derivatives project in Westlake, La., beginning in mid-2015, said Plastemart.

Sasol announced in December 2012 that it would begin front end engineering and design (FEED) work for a world scale ethane cracker and derivatives facility to be located near the town of Westlake, La.

The estimated cost of the facility is between USD5-7 bln. It is currently envisioned that the final investment decision for the ethane cracker will be taken in 2014 with beneficial operation to be achieved in 2017. The ethane cracker is designed to produce 1.5 million tons per year of ethylene. Entergy Gulf States Louisiana plans to upgrade its electric transmission system to meet the increased demand the ethylene production facility is anticipated to generate.

"We are excited to have been selected to play an integral role in this significant project," said Phillip May, president and chief executive officer of Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC. "Working with Sasol to create the optimal solution to power the company's new Westlake facility is one of the ways we are proud to be a part of supporting the region – and Louisiana's – economic growth and vitality. Over the past several years in particular, Entergy has been working more closely than ever with public and private partners and key multinational companies like Sasol to custom-fit electric power solutions to business and industry needs.

Sasol Limited is an integrated energy and chemical company that began in Sasolburg, South Africa in 1950. It develops and commercialises technologies and builds and operates world-scale facilities to produce a range of product streams including liquid fuels, chemicals.
MRC

Braskem will acquire Argentine-Brazilian plastics maker Solvay Indupa for USD290 million

MOSCOW (MRC) -- Braskem, the largest polymer producer in the Americas and the world leader in biopolymers, announced today the execution of an agreement with Grupo Solvay for the acquisition of 70.59% of the total and voting capital of Solvay Indupa S.A.I.C., sid the producer in its prress release.

The acquisition confirms Braskem's commitment to develop the petrochemical and plastics industries in Brazil and South America by strengthening the vinyls chain and by its decision to continue investing to support the growth of its clients. It also establishes an industrial base in Argentina, a market in which Braskem already has maintained a commercial presence for over 20 years.

The transaction price is USD290 million. The consummation of the sales agreement will depend on prior analysis and approval by Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Economica). Following the transaction's conclusion, Braskem will launch a public tender offer to non-controlling shareholders for the purchase of shares in Solvay Indupa on the Buenos Aires Stock Exchange.

Solvay Indupa produces PVC and caustic soda and owns two integrated industrial facilities in Brazil and Argentina that enjoy privileged geographic positions close to South America's two major consumer markets. Created in 1948, Solvay Indupa has annual production capacity of 540 kton of PVC and 350 kton of caustic soda. Once the acquisition is finalized, Braskem will increase its annual production capacity to 1.25 million tons of PVC and 890 kton of caustic soda.

Indupa, with a manufacturing capacity of more than 500,000mtpa of polyvinyl chloride (PVC), runs facilities at Santo Andre, Brazil, and Bahia Blanca, Argentina. Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.

"Vinyls is a strategic market for our company. Braskem recently invested around R1 billion in a PVC plant in the state of Alagoas, which was inaugurated in 2012, in order to meet the strong growth in demand for this resin associated with the growth in Brazil's infrastructure sector," said Carlos Fadigas, CEO of Braskem.

MRC

UK to introduce plastic banknotes in 2016

MOSCOW (MRC) -- The Bank of England announced Dec. 18 that the next GBP5 and GBP10 banknotes will be made of plastic rather than the current cotton paper, said Plasticsnews.

The polymer notes will retain "the familiar look of Bank of England banknotes", including the portrait the Queen and a historical character.

The first polymer note will be the GBP5 note featuring Sir Winston Churchill and will be issued in 2016. It will be followed around a year later by a polymer GBP10 note featuring Jane Austen.

The bank’s decision follows a three-year research program, which concluded that plastic notes are cleaner, more durable and more secure than their paper counterparts. There has also been an "overwhelmingly supportive" response from the public, it added.

The bank’s research showed that polymer banknotes are cleaner, more secure, and more durable than their paper counterparts. They will also provide enhanced counterfeit resilience, and are more environmentally-friendly than paper. Because they last longer, polymer banknotes are cheaper over time than paper.
Resistant to dirt and moisture, polymer banknotes are made from a transparent plastic film, coated in an ink layer that carries the printed design features. The material allows for 'windows' or transparent areas in the design which discourage counterfeiting because they require several machines to make.

The new notes will cost around 50% more to produce, but the Bank estimates it will save GBP100m as it will need to replace the notes far less frequently.
MRC