INEOS licenses PP technology for Vung Ro refinery project in Vietnam

MOSCOW (MRC) -- INEOS Technologies has licensed its Innovene PP process for the manufacture of homopolymers, random copolymers and impact copolymers to Vung Ro Petroleum Ltd. at its refinery complex located in Hoa Tam Commune, Dong Hoa District of Phu Yen Province, Vietnam, said the producer in its press release.

"INEOS Technologies is proud to have been selected by Vung Ro Petroleum as its technology partner for the development of its polypropylene business," said Peter Williams, CEO of INEOS Technologies. "Vung Ro’s refinery project will contribute to the continuing growth of the economy of Vietnam and neighbouring countries."

The 900,000 Innovene PP plant will produce a wide range of polypropylene grades to serve the growing demand in the Asian market.

"We are pleased to have selected INEOS Technologies' Innovene PP process as an integral part of our refinery project," said Kirill Korolev, CEO of Vung Ro Petroleum.

"The Innovene PP process will provide Vung Ro Petroleum with an advanced polypropylene process with advantaged economics and broad product reach," he added.

As MRC informed before, INEOS Enterprises announced that it has agreed to purchase Sasol Solvents Germany GmbH, one of European leading solvent manufacturers. The acquisition which is conditional on approval by the relevant competition authorities comprises production facilities in Germany, based at Herne and Moers, employing around 520 people.

INEOS Enterprises is a standalone business, a part of INEOS AG. INEOS Enterprises is a portfolio of ten businesses manufacturing chemical products in Northern Europe, with sales of these products to customers around the world. The Company is focused on the developing needs of customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. INEOS Enterprises now employs some 800 people across sites in the UK, France, Germany.

MRC

MOSCOW (MRC) - Imports of high density polyethylene (HDPE) to Russia decreased by 30% in 2013 on the back of the increased by 38% domestic production and weaker demand growth, according to MRC DataScope.

Total imports of HDPE to Russia in 2013 was 286,200 tonnes, from 408,500 tonnes in 2012. Structure of HDPE imports in 2013 was as follows.

The growth in imports occurred only for HDPE for extrusion coating for large diameter steel pipes (up by 12% to 73,800 tonnes) and injection moulding (up by 3% to 48,900 tonnes).

Imports of high-density polyethylene for pipe production declined almost twofold in 2013 to about 68,300 tonnes, from 129,600 tonnes in 2012.
Weaker demand for plastic pipes in the domestic market and significantly higher prices in foreign markets forced Russian converters noticeably to reduce purchases of imported HDPE.

Imports of film HDPE decreased more than twofold last year and reached 44,800 tonnes, compared with about 100,000 tonnes in 2012. The main reason for such a serious fall in imports was the growth of domestic production.

Import of blow moulding and cable HDPE in 2013 decreased by 30% and 10%, respectively, and totalled about 34,200 tonnes and 13,600 tonnes.
MRC

MOSCOW (MRC) -- Taipei- Formosa Plastics is considering construction of a plant in Louisiana to produce 1.2-million t/y of ethylene from shale gas, reported Taipei Times with reference to Formosa Plastics Chairman Lee Chih-tsuen's statement.

Lee, in addressing company employees, said Louisiana Governor Bobby Jindal had visited the company’s Taipei headquarters to urge Formosa to invest in Louisiana, in addition to its plans to invest in Texas.

To take advantage of US shale gas, Formosa has already announced plans to invest more than USD1.7-billion at its Point Comfort, Texas, complex to add an 800,000-t/y olefins cracker, an associated 600,000-t/y propane dehydrogenation unit and a 300,000-t/y low-density polyethylene plant.

With respect to a project in Louisiana, Lee said further studies must be conducted before an investment decision can be made. He noted, however, that the "costs for making ethylene with shale gas are one-third of the costs to make ethylene using other raw materials."

As MRC wrote previously, in November, 2013, Formosa Plastics was seeking United States permits for a USD2 billion expansion of its Texas operations as cheaper natural gas prices make US production more competitive. The company asked federal and state environmental regulators to approve plans for an ethane cracker unit and downstream derivatives.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company"s chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Industries Qatar plans several lengthy shutdowns of its petrochemical and steel product plants in Q1-2014, as per Reuters.

Shutown of 200 days is being planned at the Qatari plants in the first three months of this year, compared to 59 days of closures in Q1-2013. The planned shutdown schedule published by IQ is as follows, with the comparative shutdowns for Q1-2013 in parenthesis:

Ethylene: 35 days (Q1, 2013: 0 days)
Low density polyethylene (LDPE): 34 days (Q1, 2013: 11 days)
Linear low density polyethylene (LLDPE): 11 days (Q1 2013: 0 days)
Methanol: 10 days (Q1 2013: 0 days)
Methyl tertiary-butyl ether (MTBE):8 days (Q1 2013: 0 days)
Ammonia: 40 days (Q1 2013: 1 day)

As MRC informed previously, Qatar Vinyl Company (QVC) is expected to shut its ethylene dichloride (EDC) and vinyl chloride monomer (VCM) plants for maintenance. Located at Mesaieed Industrial city in Qatar, the EDC and VCM plants have production capacities of 500,000 mt/year and 300,000 mt/year, respectively. Both the plants are likely to be taken off-stream for a maintenance turnaround in March 2014. The period of the shutdown could not be ascertained.
MRC

MOSCOW (MRC) - Export prices of Chinese polyethylene terephthalate (PET) for the CIS countries last week were reduced by USD15-30/tonne on the back of falling prices of paraxylene and PTA, according to ICIS-MRC Price Report.

Chinese producers had to reduce PET chips prices on the back of falling spot price for paraxylene (down USD40/tonne) and PTA (down by USD19-20/tonne). Last week price for PET in the Chinese port was in the range of USD1, 280-1,310/tonne FOB China. Converters in CIS countries also reported the reduction in Chinese PET; last week Chinese PET price dropped to USD1,320-1,350/tonne CFR Vostochny, excluding VAT.

However, price of Chinese PET in the port of Odessa was heard at USD1,370-1,390/tonne CIF Odessa, excluding VAT (shipping in the first half of February). Some converters reported price offer for PET at USD1,360/tonne CIF Odessa, excluding VAT.

It should be noted that during last year the export prices of PET in China and Korea fell more than by USD270/ tonne (down 17%). By the middle of January 2013 PET price in Asia were at USD1,586/tonne FOB, excluding VAT. Price offer for feedstock (paraxylene, PTA and MEG) also had been falling over the last year.

Some market players expect PET chips price to continue to fall in 2014on the back of capacities surplus in China. Sellers also reported a high level of competition amid low profitability, and some plants have already been working at a loss. A market player said that price does not depend on demand and supply any more, but on feedstock price. At the moment, the main driver is the feedstock price.


MRC