Wison Engineering awarded EPC contract by Connel Chemical for methanol-to-olefins plant

MOSCOW (MRC) -- Wison Engineering, one of China’s leading chemical engineering, procurement and construction management (EPC) service and technology providers, has been awarded an EPC contract for a 300000 tpa methanol-to-olefins (MTO) unit that will constitute the first phase of Connel Chemical Industry Ltd.’s 600000 tpa MTO plant, reported Plastemart.

The two parties also signed a licensing and process design package (PDP) contract for Wison’s proprietary olefin separation technology, the tenth licensing of this technology.

The project will utilize an integrated solution that leverages UOP’s MTO+OCP (Olefin Cracking Process) technology and Wison’s high recovery olefin separation technology.

Wison Engineering will be responsible for the engineering, design, procurement and construction of the MTO reaction and concentration unit, the olefin separation unit, the olefin cracking unit and additional auxiliaries. The project is scheduled to be delivered in October, 2017.

Wison Engineering’s olefin separation technology has passed scientific and technological appraisal conducted by the China Petroleum and Chemical Industry Federation (CPCIF), meeting advanced international standards. Product recovery for ethylene and propylene products has also reached the top standard worldwide.

We remind that, as MRC informed before, in July 2015, China’s Better Clean Energy licensed the advanced MTO process of Honeywell's UOP to convert methanol into high-value petrochemicals, helping meet growing global demand for plastics and other key materials. This award is UOP’s fifth licensing win for its MTO process and comes after the successful start up of its first commercial-scale MTO facility for China’s Wison Clean Energy in September 2013. That unit has produced more than 360 million lb of ethylene and propylene since it went into production, meeting all of its performance criteria, including yield quality and quantity.

Shanghai Secco to shut SM plant in China for maintenance

MOSCOW (MRC) -- Major Chinese producer Shanghai Secco Petrochemical is in plans to shut a styrene monomer (SM) plant for a maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to be shut in mid-August 2016. It is expected to remain off-stream for around 4 weeks.

Located in Shanghai, China, the plant has a production capacity of 650,000 mt/year.

As MRC informed previously, in April 2016, Shanghai Secco Petrochemical took off-stream its butadiene unit with the capacity of 90,000 mt/year for 20-30 days due to technical woes.

Shanghai Secco Petrochemical is a 30/20/50 equity Joint Venture by China Petroleum & Chemical Corporation, Sinopec Shanghai Petrochemical Company Limited and BP Chemicals East China Investments Limited. Incorporated in November 2001, the company is set out to build an internationally competitive petrochemical enterprise, which manufactures and markets high quality petrochemical products, replacing imports.

Braskem Idesa PE production at new complex crosses 80,000 tonnes in Q2 2016

MOSCOW (MRC) -- Mexican petrochemical producer Braskem Idesa produced 83,538 mt of polyethylene (PE) resins during the second quarter at its new complex in Veracruz state, as per Plastemart.

Of this, a combined 54,000 mt was sold in domestic and international markets, including pre-marketing sales. Braskem Idesa is a joint venture between Brazil's Braskem (75%) and Mexico's Grupo Idesa (25%) and represents the first of a wave of new petrochemical projects in North America.

The first line, a high density injection polyethylene (HDPE) line, began operations April 6 and the second line, an HDPE blowmolding line, came online April 28.

The LDPE line started in June, Braskem said, adding that the LDPE plant is still considered a pre-operational asset, since it is in the commissioning phase. Once the complex is running at capacity, it will be able to produce 1 mln mt/year of PE. Capacity utilization was 32% in Q2, the company said, adding that it had built up 74,000 mt of resin inventories.

As MRC informed previously, in late June 2016, Braskem Idesa, the 75-25 joint venture of Braskem and Idesa (Mexico City), inaugurated the Ethylene XXI complex at Nanchital, part of the Coatzacoalcos petrochemical hub in the southern Mexican state of Veracruz. The USD5.2-billion dollar project took some five years to complete. The 1.05-million m.t./year cracker feeds the complex’s two HDPE plants, which have capacities of 400,000 m.t./year and 350,000 m.t./year, each unit based on Ineos technology. The third PE unit has capacity of 300,000 m.t./year of LDPE, using LyondellBasell technology.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).

PE output in Belarus dropped by 0.2% in Jan-Jul 2016

MOSCOW (MRC) -- Belarus' overall production of low density polyethylene (LDPE) totalled 68,100 tonnes in the first seven months of 2016, down by 0.2% year on year, reported MRC analysts.

According to the National Statistics Committee of Belarus, in July 2016, Polymir, the local LDPE producer, reduced its production of polyethylene (PE) to 5,300 tonnes because of the shutdown at some of the plant's production capacities, compared to 8,000 tonnes a month earlier. Thus, Belarus' total LDPE output was 68,100 tonnes in January-July 2016 versus 68,300 tonnes a year earlier.

As reported previously, on June 18, there was a blaze of a gas mixture in the shop No. 104, which resulted in burning of pyrogas products. The fire damaged the technological equipment, resulting in the shutdown of PE production at the second line (this line's annual capacity is 65,000 tonnes). The exact dates of the outage have not been announced.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. The plant's annual LDPE production capacity is 130,000 tonnes. Polymir was founded in 1968. The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the development of scientific research institutes and design institutes of the CIS countries.


Idemitsu and Showa Shell chiefs met to confirm merger plan

MOSCOW (MRC) -- The heads of Japanese oil refiners Idemitsu Kosan Co. and Showa Shell Sekiyu met last Thursday to re-confirm the companies' intention to merge despite opposition from Idemitsu's founding family, an Idemitsu spokesman said, reported Hydrocarbonprocessing.

The Nikkei business daily reported Friday that Idemitsu was considering acquiring a smaller stake in Showa Shell than planned to counter efforts by its founding family to block a merger of the two oil refiners.

The Idemitsu spokesman said it was not true that a decision had been made on any specific plan, and that a variety of options were under consideration for the planned merger.

As MRC informed earlier, last week, the founding family of Japan's Idemitsu Kosan Co. bought a stake in Showa Shell Sekiyu KK, in a bid to block Idemitsu management's billion-dollar plan to take over the rival oil refiner, the family's lawyer said Wednesday. The family said differing corporate cultures preclude any synergy from a merger. In its latest effort to dissuade management, the family bought 0.1% of Showa Shell.

Earlier this year, in April, Japanese refiner Idemitsu Kosan Co. and smaller rival Showa Shell Sekiyu announced that they would merge on April 1 next year. Japan's No.2 and No.5 refiners by revenue agreed last November in a deal worth approximately USD4 B to create the nation's second-biggest refiner sometime between October 2016 and April 2017.

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.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.