Kazanorgsintez shuts LDPE production for turnaround

MOSCOW (MRC) - Russia's largest producer of polyethylene - Kazanorgsintez (Taif) shuts the production of low density polyethylene (LDPE) for scheduled maintenance works, according to MRC analysts.

Company's customers said that Kazanorgsintez plans to shut down part of its LDPE capacities for turnaround from 19,September. The producer shuts production of 15313-003 grade LDPE (for the production of shrinkable film) from 19, September to 6, October; production of 15813-020 grade LDPE (for the production of general purpose films) will be shut from 19, September to 13, October. The capacities for the production of 10803-020 grade LDPE will not be shut.

Kazanorgsintez was founded in 1958 and is based in Kazan, the Russian Federation. Kazanorgsintez produces more than 38% of all Russian polyethylene and is its largest exporter. The company produces and sells high and medium density, linear low density, and bimodal high density polyethylene; polyethylene pipes and fittings for gas and water supply; butene-1. The company also offers phenol for producing caprolactam, diphenylpropane, medicines, synthetic resins, plasticizers, and herbicides. Further, the company offers ethylene, propylene, ethylene oxide, glycols, ethanolamines, cooling liquids, textile agents, proxanols-proxamines, and demulsifiers, as well as products for the primary preparation of oil–corrosion and paraffin deposits inhibitors.

Total LDPE production by Kazanorgsintez reached about 121,000 tonnes in the first eight months of 2014, down 19% year on year
MRC

MOSCOW (MRC) -- Eastman Chemical has completed a previously-announced capacity expansion of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, the company said on Thursday.

The expansion at the site increased the overall capacity of Eastman 168 by approximately 15%.

"We are pleased with the completion of this important expansion," said Jon Woods, director of Eastman's plasticizers business. "Since this expansion leveraged an existing asset, it was completed with minimal capital investment."

"With our view of global demand for DEHT at 500,000 tons in 2014, we see continued demand for non-phthalate plasticizers and expect the market to need our next phase of capacity expansion by mid-2016," he added.

"This additional capacity would also leverage the existing plants in Kingsport and Texas City and be a relatively low cost investment that would take our full capacity for Eastman 168 above 200,000 tons.

"The combination of our Kingsport and Texas City manufacturing allows Eastman to sustain its leadership position to serve both the North American and export markets, with Europe being a particular area of focus."

Non-phthalate plasticizers are broadly used in products such as toys, childcare items, food contact materials and medical devices, and are also used to provide flexibility to PVC in a wide variety of applications. End markets for non-phthalate plasticizers include building and construction, health and wellness, and a broad range of consumer products.

As MRC informed before, in August 2014, Eastman Chemical Company entered into a definitive agreement to acquire Knowlton Technologies, LLC. The company, which is located in Watertown, NY, is a leader in the design, accelerated prototyping and manufacture of wet-laid nonwovens in filtration, friction and custom designed composite webs.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2013 revenues of approximately USD9.4 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world.
MRC

MOSCOW (MRC) -- Petronas Chemical Group Berhad (PCG), Grupa Azoty Zaklady Azotowe "Pulawy" SA (Pulawy) and Sipitang Oil & Gas Development Corp. (SOGDC) has inked a memorandum of understanding (MoU) to conduct a joint feasibility study for producing urea and ammonia derivatives in Sipitang Oil & Gas Industrial Park (SOGIP) in Sabah, Malaysia, as per Hydrocarbonprocessing.

This non-binding MoU marks the beginning of a collaboration between PCG, Pulawy and SOGDC for the development of urea and ammonia derivatives for the Asian agriculture industry.

The parties will undertake a preliminary technical, economic, raw material supply, logistic, infrastructure and utilities study for the development of the petrochemical products.

"Grupa Azoty Pulawy has unique competence in the production and processing of urea," said Marian Rybak, president of Pulawy's board of directors.

"Our business strategy involves the production of high-value products based on urea as melamine and urea solution used to reduce exhaust emissions in cars and power plants," he added.

As MRC informed previously, in September 2014, SINOPEC Engineering said it formally entered into a package contract of engineering, procurement, construction and commissioning (EPCC) of an oil refining and petrochemical integrated engineering project with PRPC Refinery and Cracker Sdn. Bhd., a subsidiary of Petroliam Nasional Bhd, at a contract sum of about USВ1.329 billion. Project RAPID is located in the region of Pengerang, Johor, Malaysia.

RAPID is part of the bigger PETRONAS Pengerang Integrated Complex (PIC) development worth an estimated 27 Billion US Dollars, which comprises of RAPID and its associated facilities including the Pengerang Co-generation Plant (PCP), Re-gasification Terminal 2 (RGT2), Air Separation Unit (ASU), Raw Water Supply Project (PAMER), Crude and Product Tanks (SPV2) as well as central and shared Utilities and Facilities (UF). RAPID will consist of a 300,000 barrels per stream day refinery and petrochemical complex with a combined capacity of producing 7.7 mln tpa of various grades of products, including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- SABIC has signed a Memorandum of Understanding (MoU) with hte in Heidelberg, Germany, on to establish a satellite laboratory for high throughput experimentation to increase its R&D efficiency, as per ZAWYA.

hte is a leading high throughput experimentation company that provides a valuable upside to heterogeneous catalysis and enables fast track R&D.

Under the MoU, hte will provide a technology platform to support SABIC in catalysis R&D. This will include advanced testing equipment which will be hosted exclusively at hte's newly constructed laboratory building in Heidelberg, Germany. SABIC will benefit from a unique R&D environment with dedicated high throughput experimentation laboratories and specialized personnel. hte's offering encompasses additionally state-of-the-art workshops, infrastructure, technology, service, and catalysis expertise.

Dr. Wolfram Stichert, CEO at hte said, "This MoU is the result of a long-term business relationship between SABIC and hte. This commitment for further cooperation will take our relationship to the next level. We are proud to be a preferred R&D collaboration partner for SABIC."

As MRC wrote before, in May 2014, SABIC and the Korean petrochemical company, SK Global Chemical, signed a 50-50 joint venture agreement for a total investment of USD595 million to manufacture a range of high-performance polyethylene products using SK’s cutting edge Nexlene solution technology.

The joint venture, which is located in Singapore, is expected to operate a series of manufacturing plants, the first of which was recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. The plants will produce metallocene linear low density polyethylene, polyolefin plastomers and polyolefin elastomers that will meet the growing needs of diverse industries such as advanced packaging, automotive, healthcare, footwear and electrical and lighting.

hte - the high throughput experimentation company is a leading provider of technology solutions and services for customers in the energy, refinery, chemicals and environmental sectors. Its close ties with BASF guarantee long-term orientation and stability.

SABIC is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. It is the largest public company in Saudi Arabia. It is the largest company in the Middle East.
SABIC is currently the second largest global ethylene glycol producer and is expected to become number one after the introduction of these new projects. SABIC is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. It is also the world's largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
MRC

MOSCOW (MRC) -- Construction of Carbon Holding's Tahir Petrochemicals project is to start in six weeks, said Ahram, citing company chairman Basil El-Baz at the Euromoney Egypt Conference.

The new factory will be the largest liquid naphtha cracker in the Middle East, costing USD7 billion. Sixty-five percent of the required investment will come from bank loans, while the rest will be self-funded.

Naphtha is comprised of several hydrocarbons, which are extracted by processing it in steam crackers to ultimately produce petrochemicals used by industry.

"The factory will produce its own electricity and we have our own water desalination plant," El-Baz said, adding that his company chose not to depend on any subsidised source of energy to ensure the continuity of supply and to be able to compete in the international market. "We prefer to follow international prices so we know our real capability to compete in the international market."

El-Baz said that in the first years of production they would export the majority of their production. "But our target is to sell to the local market. Our products can be used in all the products used in this building except steel, glass and marble."

The new company will produce 150 tonnes of polyethylene, 100,000 tonnes of propylene, 700,000 tonnes of benzene, 150,000 tonnes of light fuel oil and 159,000 tonnes of heavy fuel oil.

"Our hope is that Egyptian entrepreneurs start manufacturing products that are currently imported, like the simple Ramadan lanterns we currently import from China," El-Baz said.

Production will start by the last quarter of 2019.

As MRC wrote before, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln, according to a senior official at the Ministry of Petroleum. The projects included establishing a factory to produce bio-ethanol from molasses, the output of which would reach 100,000 tons of molasses annually, with investment in the project totaling USD250 mln. The project would be implemented in the next fiscal year (FY), according to the ministry’s plan.
MRC