Unipetrol declares force majeure at Czech ethylene plant

MOSCOW (MRC) -- Unipetrol AS has shuttered production at its Chempark Zaluzi petrochemical complex in Litvinov, Czech Republic, following an explosion and ensuing fire at the site’s 544,000-tonne/year (tpy) ethylene plant, said Ogj.

The explosion, which occurred around 9:00 a.m. local time on Aug. 13 following a propylene leak at the plant’s steam cracker, was followed by fires in two separate parts of the unit, the second of which broke out after the cracker’s emergency shutdown, Unipetrol said.

Unipetrol has stopped production of all petrochemicals at the complex, with the plant’s steam cracker, polypropylene unit, and two polyethylene units to remain offline until further notice, the company said on Aug. 14.

As a precautionary measure, production at the complex’s ammonia unit also has been reduced to a minimum, as have crude throughputs at Unipetrol subsidiary Ceska Rafinerska AS’s (CRC) nearby 5.4 million-tpy Litvinov refinery, which acts as key supplier of naphtha feedstock for the cracker.

Given the current uncertainty surrounding a timeframe for the plant’s restart, Unipetrol has declared a force majeure on its petrochemical production supply agreements with customers.

The Litvinov steam cracker recently experienced two unplanned shutdowns that resulted from unidentified technical difficulties, according to June 30 and July 17 releases from Unipetrol. A first shutdown lasted from June 29 to July 5, with a second closure occurring from July 20 to July 25, the company said.

Unipetrol, itself a subsidiary of Polski Koncern Naftowy SA (PKN Orlen), completed its purchase of former partner Eni SPA’s interest in CRC to become sole owner of the company, which in addition to the Litvinov refinery, also operates the 3.3 million-tpy Kralupy refinery.

Unipetrol’s buyout follows the company’s overall strategy for 2013-17, which calls for an increase in capital spending on projects designed to further integrate the refining and petrochemical segments of its business as a means of guaranteeing secure feedstock for its petrochemical operations.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.
MRC

MOSCOW (MRC) - Production of high-density polyethylene (HDPE) in Russia increased by 2% in the first seven months of the year compared to the same period of 2014 and reached 521,300 tonnes, according to MRC ScanPlast.

July HDPE production in Russia increased to 83,100 tonnes, compared with 65,900 tonnes in June on the back of increased capacity utilisation at Stavrolen and Kazanorgsintez. Total HDPE production in Russia exceeded 521,300 tonnes in the first seven months of this year, compared with 510,300 tonnes year on year. The increase in the production of HDPE at Stavrolen and Gazprom neftekhim Salavat helped to offset a significant reduction in the output at Nizhnekamskneftekhim.

Structure of HDPE production over the reported period looked as follows.

Russia's largest producer of polyethylene - Kazanorgsintez increased its capacity utilisation in July, having produced 44,600 tonnes of HDPE, compared with 39,700 tonnes in June. The producer's HDPE production over seven months was 305,200 tonnes, compared with 308,500 tonnes in the same period of 2014.

Stavrolen last month increased the output of HDPE to 24,500 tonnes against 16,800 tonnes in June (the company earlier that month had to suspend the output of polyethylene because of the problems in the ethylene production). Total PE production at Stavrolen over January-July 2015 was about 80,000 tonnes, compared with 48,000 year on year.

Nizhnekamskneftekhim in the current year significantly increased its output of linear polyethylene at the expense of HDPE production. July production of HDPE at Nizhnekamskneftekhim exceeded 7,500 tonnes; in May-June, the company completely focused its production on linear polyethylene. Total HDPE production over two the first seven months of the year at the plant was about 54,700 tonnes, compared with 38,300 tonnes year on year.

Gazprom neftekhim Salavat shut its HDPE capacities for a month long turnaround on 24, July. The producer's HDPE output over the less than a month was about 6,500 tonnes against 9,300 tonnes in June. Total HDPE production by the producer was 57,400 tonnes in the first seven months of 2015, down 4% year on year.


MRC

MOSCOW (MRC) -- Oman Oil Refineries and Petroleum Industries Company (Orpic) has installed a new hydrocracker reactor, reaching a height of 42 metres, and weighing approximately 950 metric tonnes, said Constructionweekonline.

Extensive preparatory works were underway two months prior to the installation of the hydrocracker, with actual installation transpiring in a single day with the assistance of two cranes, and a heavy lift team comprising 36 personnel.

One of the key elements of Orpic's Sohar Refinery Improvement Project (SRIP), the hydrocracker, which is a two-stafe unit, is one of the most critical units for Orpic's future Sohar Refinery operations.

Operated at a pressure of 160 Bar, and temperature of around 400 degrees celsius, the design of unit includes built-in features that enable a quick response to various emergency situations.

This will enable Orpic to meet increasing demand of petroleum products in the Sultanate, as well as reducing refinery emissions and improving refinery margins.

Operation of the hydrocracker unit requires a high level of skill; therefore specialist training, by a process licenser and operator, is being provided to Orpic.

As MRC informed earlier, Orpic received five technical bids for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud, which are part of its mega petrochemical project -- Liwa Plastics Industries Complex.

Orpic (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. Orpic is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

MOSCOW (MRC) -- PTT Global Chemical, Toyota Tsusho Corporation and Sanyo Chemical Industries, Ltd. to jointly pursue the study on potential development of Propylene Oxide and Polyether Polyols Complex in Thailand, said Newstoday.

PTT Global Chemical (PTTGC), today signed two of Head of Agreement (HoA), to jointly perform engineering study for potential development of Propylene Oxide (PO) 200 KTA with Toyota Tsusho Corporation (TTC) and to jointly perform engineering study for potential development of Polyether Polyols (Polyols) 130 KTA with Toyota Tsusho Corporation (TTC) and Sanyo Chemical Industries, Ltd. (SCI). This Complex will be located in Hemaraj Eastern Industrial Estate (HEIE), Rayong in Thailand and total investment is approximately USD 1 Billion.

Mr. Supattanapong Punmeechaow, President & Chief Executive Officer, PTTGC, stated that through this joint study, PTTGC will secure a reliable and stable supply of feedstock, which are propylene for PO production and Ethylene Oxide for Polyols production while SCI will provide its technology know-how and R&D development for Polyols to fulfill customer’s requirement. TTC will support the project with their logistics and order management expertise with strong market and sale network around the world especially in Asia Pacific & India for both PO and Polyols. With the key strengths of three partners, it can enhance the project competitiveness.

After the successful completion of a prelim joint feasibility study began in early of 2015, when PTTGC, TTC, and SCI signed a memorandum of understanding to launch the effort, the project has moved to the early phase of engineering study to perform front end engineering design and verify the viability of the project before Final Investment Decision (FID), which’s targeted next year, for going to the phase of execution with engineering, procurement and construction (EPC).Polyols is key raw material for manufacturing of high-quality Polyurethane foams, added benefits of consuming less energy and process materials, as well as generating less waste, in automotive, furniture, band bedding, construction, electronic and electrical industries.

As MRC informed earlier, PTT Global Chemical PCL is studying several options for supplying sufficient raw material to its petrochemical plants, including imports of oil feedstocks after declines in global crude prices. The move is part of a plan to cope with a potential drop in domestic natural gas supply after Thailand's government put bidding for new oil and gas concessions on hold.

PTT Global Chemical, as Chemical Flagship of the PTT Group, with the combined chemical / petrochemical capacity of 8.75 million tons per year and crude oil / condensate distillation capacity of 280,000 barrels per day. The Company has been expanding its business into the specialties and green chemicals through a number of oversea strategic acquisitions. Such investments also clearly represent PTT Global Chemical's growth aspiration to expand its business internationally.

mrcfplast.com

MOSCOW (MRC) -- Shipping and logistics companies reported delays and disruptions after the deadly explosion at the Chinese port of Tianjin as some oil cargoes were still barred from one of its wharves, said Hydrocarbonprocessing.

About 110 vessels are anchored in the sea off the port, according to data compiled by Bloomberg, and freight companies including Auckland, New Zealand-based Mainfreight and Japan’s Sankyu said the blast will cause delays or impact their businesses. Fortescue Metals Group and BHP Billiton said operations at the port resumed and they didn’t anticipate an impact to deliveries.

Tianjin is the 10th-busiest container port globally and has become a northern gateway for ore, coal, automobiles and oil into China, the world’s biggest user of energy, metals and grains. About 17% of the nation’s ethylene imports, 15% of its wheat deliveries and 30% of steel exports in the first half of 2015 were transported via the Tianjin customs area, government data show.

The Tianjin government still can’t determine the exact quantity and types of toxic chemicals that caused the blast, Gao Huaiyou, vice chief at the city’s safety bureau, said to reporters, according to CCTV footage.

There were 60 bulk carriers, 37 dry cargo and passenger ships, as well as nine tankers anchored outside the port as of 2:44 p.m. local time Friday, according to data compiled by Bloomberg. The total figure includes four ships used to support floating platforms in the sea.

A China Petroleum & Chemical Corp. spokesman said Thursday its refinery near Tianjin was operating normally and that it didn’t see any immediate impact on plant logistics. The refinery has capacity of 251,000 bpd, according to data compiled by Bloomberg.

Operations at PetroChina’s Dagang refinery that’s in the southern part of Tianjin municipality aren’t affected, a spokesman said. He declined to comment further.

Total throughput at Tianjin rose 10% in 2014 to 445.8 million metric tons, according to Hong Kong-listed Tianjin Port Development. It handled 110.5 million tons of metal ore, 88.9 million tons of coal and 18.7 million tons of crude oil, the equivalent of 375,000 bpd. China National Offshore Oil Corp.’s Tianjin FLNG, the nation’s first floating liquefied natural gas (LNG) terminal, is nearby.

The late-night blasts Wednesday, which may have been the result of a fire, spewed toxic material into the air and shattered windows in buildings for kilometers around. China’s earthquake center said the biggest explosion was equivalent to a 2.9-magnitude temblor.

The Binhai district is also home to the manufacturing sites of coatings producer COSCO Kansai Paint & Chemicals Co and polyvinyl chloride (PVC) maker Tianjin Dagu Chemical.
MRC