Chevron Phillips completes ethylene plant expansion

MOSCOW (MRC) -- Chevron Phillips Chemical Company LP, wholly-owned subsidiary of Chevron Phillips Chemical Company LLC, one of the world’s top producers of olefins and polyolefins, has completed ethylene expansion at its Sweeny complex in Old Ocean, Texas, said Fibre2fashion.

Construction on the expansion began in 2013, and it has been completed with the addition of a tenth furnace to ethylene unit 33 at the Sweeny complex, the company said in a statement.

The latest expansion is expected to increase annual ethylene production at the Sweeny complex by 200 million pounds.

The Sweeny complex is one of the world’s largest single-site ethylene facilities and its capacity has now increased to roughly 12 million pounds of ethylene per day, or 4.3 billion pounds annually.

"This represents the next increment of expansion to our ethylene business. We’re building toward the start-up of the US Gulf Coast Petrochemicals Project in 2017 and supporting incremental growth of our olefins derivative businesses," said Dave Smith, olefins and natural gas liquids vice president for Chevron Phillips Chemical.

Chevron Phillips Chemical’s US Gulf Coast Petrochemicals Project includes the construction of an ethane cracker at the company’s Cedar Bayou plant in Baytown, Texas and two polyethylene units in Old Ocean, Texas near the Sweeny complex.

As MRC reported earlier, in July 2014, Chevron Phillips Chemical (CPChem) received approval from its board of directors and obtained an environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, Texas. This investment will provide an additional 100,000 tpy of capacity. Construction completion is anticipated in July, 2015.

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) -- Equate Petrochemical Company, Kuwait’s first international petrochemical joint-venture, has announced that it will soon be in the final stages of its plant maintenance (Turnaround), reported the company on its site.

In a statement to Kuwait News Agency (KUNA), Equate President & CEO Mohammad Husain said, "Equate has successfully entered its final stage of the Turnaround’s operations relevant to a number of industrial units for ethylene, polyethylene and ethylene glycol."

Husain noted, "Every phase and step of the Turnaround are implemented in coordination and cooperation with Kuwait’s Environment Public Authority (EPA) by complying with all relevant guidelines. I would like to take this opportunity to express my gratitude and appreciation to the EPA’s management and employees for their support and collaboration that they are extending to all industrial entities. This acknowledgement is also addressed to all public and private bodies which have played a great role to ensure the community’s overall security and safety, especially in the environmental field."

Husain added, "Currently, Equate is preparing to enter the stage of conducting the plants’ return to operations (RTO) after the turnaround. As one of the environmental requirements for the RTO, the flares were operated within a controlled and precise manner as part of the industrial safety guidelines when executing an RTO. All of these practices are global measurements that are applied by all petrochemical plants and within the regulations of relevant regulatory bodies in Kuwait, as well as in accordance with international environment, health and safety standards, especially as stipulated by the EPA."

As MRC informed earlier, in line with The Dow Chemical Company's prior announcement of its intention to rationalize its investments in certain joint ventures, Dow will reconfigure and reduce its equity base in the MEGlobal and Greater Equate joint ventures, including The Kuwait Olefins Company (TKOC) and The Kuwait Styrene Company (TKSC), through a divestment of a portion of the company’s interests in these ventures.

Dow expects such transaction(s) to be completed by mid-2015. While Dow will retain a substantial stake in these long-term partnerships, this effort will open opportunities for new investment in these successful and growing enterprises. Dow remains committed to maximizing the overall value of both MEGlobal and the Greater Equate joint ventures to further enhance their already demonstrated strong value and performance.

Established in 1995, EQUATE Petrochemical Company is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Commencing production in 1997, EQUATE is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high-quality petrochemical products which are marketed throughout the Middle East, Asia, Africa and Europe.
MRC

MOSCOW (MRC) - Exports of Russian polyamide (PA) grew to 90,500 tonnes in January-November 2014, up 10% year on year, according to MRC DataScope report.

The exports of Russian PA imply to the delivery of PA 6. The main producer in Russia and, accordingly, exporter of PA 6 is Kuibyshev Azot.
The plant supplies to the domestic and foreign markets polyamide for packaging and textile industries, as well as for compounding.

Export PA 6 is carried out for the following processing technologies: fibers/filaments (55%), compounding (32%), film extrusion (11%), Injection moulding (2%). Export supplies of PA for the textile industry for the period increased by 11% to 49,600 tonnes. Such brands of Russian PA as Volgamid 24, Volgamid 24 SD, Volgamid 34, Volgamid 32 are used for the processing technology fibers/filaments.
Exports of PA for compounding (Volgamid 25, Volgamid 27) increased to 31,200 tonnes in the reporting period, up 34% year on year. Exports of film PA 6 (Volgamid F34) decreased by more than half in the first eleven months of the year to 7,000 tonnes on the back of refocusing to the domestic market and import substitution in the segment.

At the same time, the exports of injection moulding PA 6 increased to 2,000 tonnes over the reported period, up 60% year on year.

Geography of export deliveries of Russian polyamide remained unchanged. The main consumers were China (39.2% of exports), India (15%), Turkey (14%), Germany (12%).
MRC

MOSCOW (MRC) - Russia's imports of polyamide (PA) and engineering plastics based on PA were about 12,000 tonnes in January-November 2014, down 15% compared with the same time a year earlier, according to MRC DataScope.

Thus, imports of PA 6 in the country decreased to 2,700 tonnes over the reported period, down 25% year on year. Imported PA 6 is used for making multilayer films (packing of foodstuff). The share of PA6 in the total imports of PA and PA plastics in the country makes 25%.

The usage of PA for packaging can significantly extend the duration of products, to keep their quality and properties. To date, this material is impossible to replace in the packaging. PA is used in combination with polymers such as polypropylene and polyethylene.

However, Russia has its domestic food PA 6 , produced by Kuibyshev Azot. This allows converters to diversify their procurement of feedstock and reduce costs. At the same time, imports of additives on the basis of the PA, PA copolymers for film extrusion, remained at the same level of last year (3,200 tonnes).

Film PA copolymers occurred for 25% from the total imports delivery of the material in Russia. Film PA copolymers used as various stabilising and colouring agents, improving consumer properties of the films. Import substitution of Film PA copolymers is impossible because of the lack of domestic production. The production process is technologically complex and expensive. Therefore, converters have to continue purchases abroad.

Another significant segment of PA plastic is injection moulding PA copolymers (25% share). Imports of injection moulding PA copolymers for eleven months declined to 3,200 tonnes, down 25% compared with the same time a year earlier. In this sector there is import substitution, which increases in line with the rouble devaluation. There are many Russian producers of various compounds based on PA.

The main application of these materials: mechanical engineering, automotive, electronics, electrical engineering. Consumption of imported PA-emulsion remained unchanged compared with the previous year (1,700 tonnes). There is no production of PA-emulsion in Russia.

Demand for imported PA 66 in January-November 2014 fell to 670 tonnes, down 20% year on year. PA 6 can be replaced partly by injection moulding PA copolymers or other engineering plastics. The popularity of the PA 66 in the Russian market is declining, regardless of the economic situation. Because of the rouble volatility many importers suspended or cut supplies of PA 6 to the Russian market. PA and PA plastics are above the average price segment, so the rise in domestic prices has become quite expensive for converters. Russia tries to reduce imports of PA as more as possible, resulting in the decrease ofthe total imports.


MRC

MOSCOW (MRC) -- Oil major Shell said it had sold parts of its Norwegian downstream business to Finnish fuel firm ST1 for an undisclosed sum, further divesting parts of its downstream activities, reported Reuters.

ST1 will take over Shell's Norwegian retail, commercial fuels and supply and distribution businesses, while Shell's aviation business in Norway will become a 50-50 joint venture with ST1.

The deal is expected to close next year, pending regulatory approval.

The sale follows Shell's downstream divestments through refinery sales in Britain, Germany, France, Norway and the Czech Republic as the oil major seeks to cut costs in a weak oil price environment.

ST1 already operates Shell-branded petrol stations in Finland and Sweden. The deal announced on Thursday includes an agreement to continue operating Shell's Norwegian assets under its brand.

As MRC informed previously, last year, Royal Dutch Shell took a final investment decision tol increase production capacity at its Singapore petrochemical plant to meet demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols - industrial chemicals used to make high-quality foams - by more than 100,000 metric tpy to 360,000 tpy. The project was expected to be completed in 2014.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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