MHI awarded ExxonMobil polyethylene plant contract

MOSCOW (MRC) -- Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for supply of systems to support a large-scale polyethylene production train for ExxonMobil's Beaumont Polyethylene plant, said Hydrocarbonprocessing.

The new production train is slated to be completed in 2019, and will produce 650,000 tons of polyethylene per year. MHI is currently building a Polyethylene plant comprising of 2 units, each with the same scale of production capacity, at ExxonMobil's Mont Belvieu, Texas facility, making this the third order following the completion in 2011 of a polyethylene plant in Singapore.

MHI will supply the reaction, finishing, and shipping equipment for the plant, as well as utility facilities for water, air and steam.

Polyethylene is a chemical that is used in the production of plastic products such as construction films, grocery bags, and product packaging.

MHI has participated in the project throughout the various stages of ExxonMobil's planning. In addition, MHI has a proven track record fulfilling orders for large compressor turbines for ethylene and LNG (Liquefied Natural Gas) liquefaction plants for ExxonMobil.

MHI's President and CEO, Shunichi Miyanaga, commented, "I feel very honored to have received consecutive orders from ExxonMobil, the leader in the petrochemical industry. We will aim to deliver a high quality plant, placing the utmost importance on safety management, just as with our other projects in Texas and Singapore."

The US market for chemical plants is highly active, owing to increasing production of shale gas. In April 2016, Mitsubishi Heavy Industries America, Inc. (MHIA) moved its headquarters from New York to Houston, the home of major chemical plant customers. Going forward the company will undertake proactive sales activities in the increasingly vibrant U.S. chemical plant market.

As MRC informed earlier, in November 2016, Jacobs Engineering Group Inc. announced it received a contract from ExxonMobil Chemical Company to provide engineering, design and construction management services as part of a new 650 kTa polyethylene facility to be located at ExxonMobil’s Beaumont polyethylene plant.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.

King Salman inaugurates two Saudi Aramco JV projects

MOSCOW (MRC) -- The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud inaugurated the Sadara Chemical Company and the Saudi Aramco Total Refining and Petrochemical Co. (SATORP), said Process-Worldwide.

The two projects are among the largest facilities in the refining and petrochemicals industries that support the objectives of Saudi Vision 2030.

Sadara and SATORP are the result of partnerships between Saudi Aramco and two global companies—The Dow Chemical Company and Total—which are leaders in their respective areas of business.

His Excellency Khalid Al Falih, Minister of Energy, Industry and Mineral Resources and Chairman of Saudi Aramco said, "Sadara and Satorp represents a bold undertaking for Saudi Aramco and its respective partners, Dow Chemical and Total. It is a major driver in achieving our goals of greater integration and value addition. Sadara and Satorp represents the concrete realization of our distinct yet complementary corporate visions -- it is one way in which Saudi Aramco is helping to deliver on its abiding commitment to the Kingdom.

The Sadara project is the largest integrated chemicals complex in the world to be built in one phase. It is a JV between Saudi Aramco and The Dow Chemical Company in Jubail Industrial City in the Eastern Province of Saudi Arabia. The first phase commenced operations in 2015, and the remaining operating units are scheduled for completion by the end of 2016. The production capacity is more than three million tons of various plastics and chemicals product annually.

Sadara is the first chemicals complex in the GCC region that uses naphtha as feedstock. The complex has a unit to crack naphtha that can process 85 million standard square feet of ethane and 53,000 bpd of naphtha as a feedstock to produce three million tons of high value and high performance plastics annually.

Once fully operational at maximum capacity, the project will employ more than 4,000 people. In addition, the PlasChem Park, a world-class industrial park for chemical and conversion industries created by a collaboration between Sadara and the Royal Commission for Jubail and Yanbu, will create 15,000 direct and indirect job opportunities for Saudis in Jubail alone.

The Saudi Aramco Total Refining and Petrochemical Co. (SATORP), a JV between Saudi Aramco and Total in Jubail, will support Saudi Aramco’s efforts to expand the value chain and achieve maximum value from the Kingdom’s resources. It can process 400,000 barrels of heavy Arabian crude daily into low-sulfur gasoline, diesel and jets fuel that comply with the standards in the United States, Europe and Japan. It also produces more than one million tons of paraxylene, benzene, sulfur and pure petroleum coke that fuels cement plants and electric power stations.

This JV will create approximately 5,700 new direct and indirect jobs. The construction of the project involved 45,000 workers with 80% of the work performed by local subcontractors with a Saudization rate of 65%.

JX Nippon plans to boost December crude refining by 6%

MOSCOW (MRC) -- Japan's JX Nippon Oil & Energy Corp said that it would boost the amount of crude it refines for local consumption by 6% in December from the year before, said Reuters.

The country's top refiner said it would refine 1.14 million barrels per day of crude for domestic consumption, up on last December due to problems at multiple refineries at that time.

"December is expected to stay cold, so we expect kerosene sales to stay strong," a company spokesman said, adding that it stood ready to boost refining volumes, curb oil product exports or buy oil supplies domestically if warranted by levels of demand.

The company does not have scheduled refinery maintenance planned over the rest of the year, he added.

JX's November crude refining for domestic consumption was estimated at 1.05 million bpd, up 5% from the year-earlier period. That was higher than an original plan of 1.04 million bpd due to robust kerosene sales amid cold winter weather, the spokesman said.

The refiner has 1.43 million bpd of crude refining capacity, or 37.6% of Japan's total.

As MRC informed earlier, etronas and JX Nippon Oil & Energy have signed an agreement for the sale and purchase of equity in Petronas LNG 9 Sdn Bhd, a wholly-owned subsidiary of Petronas. Under the agreement, JX NOE will acquire a 10% in-terest in PL9SB, which owns the ninth liquefied natural gas (LNG) liquefaction train within the Petronas LNG complex in Bintulu, Sarawak, Malaysia.

The Nippon Oil Corporation, or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including olefines (ethylene, propylene) and aromatics.

PVC imports to Ukraine rose 29% in the first ten months of 2016

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine grew in the first ten months of 2016 by 29% year on year, totalling 91,800 tonnes, according to MRC's DataScope report.

October SPVC imports to Ukraine increased to 10,500 tonnes after the September shortage, compared to 9,000 tonnes a month earlier. Ukrainian companies partially offset the limited export quotas on resin of European producers by higher purchasing in Russia. Overall SPVC imports rose to 91,800 tonnes in January-October 2016 from 71,000 tonnes a year earlier. Local producers of shaped and linear articles accounted for the main increase in demand.

The structure of polyvinyl chloride (PVC) imports into Ukraine by countries looked the following way over the stated period.

October SPVC imports from the USA were 4,100 tonnes, compared to 4,400 tonnes a month earlier. Thus, imports of US resin totalled 51,700 tonnes in January-October 2016, compared to 30,200 tonnes a year earlier. February and March accounted for the peak of PVC imports from the United States, which corresponded to purchasing in November 2015-January 2016, when export prices were very low.

Last month's shipments of European PVC to the Ukrainian market grew to 5,200 tonnes from 4,100 tonnes in September. Overall imports of European PVC to Ukraine totalled 33,700 tonnes in the first ten months of the year, compared to 33,300 tonnes a year earlier.

In late September, Ukrainian companies resumed purchasing of resin in Russia, having bought less than 500 tonnes. October shipments of Russian SPVC increased to 1,200 tonnes. Imports of Russian resin were 5,800 tonnes in the first ten months of 2016 versus 6,300 tonnes a year earlier.


PE imports into Ukraine increased by 28% in January-October 2016

MOSCOW (MRC) - Imports of polyethylene (PE) into Ukraine increased to 216,400 tonnes in the first ten months of 2016, up 28% compared to the same period of 2015. The greatest increase in demand accounted for high density polyethylene (HDPE) and linear low density polyethylene (LLDPE), according to MRC DataScope.

October PE imports into the country increased to 22,200 tonnes, compared with 20,700 tonnes in September because of stronger supply of low density polyethylene (LDPE). Total PE imports into the country grew to 216,400 tonnes in January - October 2016, compared with 169,700 tonnes year on year.

Structure of PE imports over the reported period was as follows.

October imports of HDPE into the country decreased to 9,600 tonnes, compared with 9,900 tonnes in September. Local producers of films decreased their procurement volumes. Overall HDPE imports reached 100,600 tonnes in the first ten months of the year, compared to 73,600 tonnes a year earlier.

October imports of LDPE into Ukraine increased to 6,200 tonnes against 5,000 tonnes in September. Russian producers increased export quotas, which helped to increase the volume of purchases. Total LDPE imports into Ukraine exceeded 56,200 tonnes in the first ten months of the year, up by 9% year on year.

October imports of linear low density polyethylene (LLDPE) into the country were about 4,800 tonnes, which was close to the previous month level. In general, January - October LLDPE imports into Ukraine increased to 47,700 tonnes compared with 36,100 tonnes year on year. The main growth in demand provided producers of film products and overall products produced by rotational moulding.

Imports of other grades of polyethylene, including EVA for the period under review were 11,800 tonnes against 8,200 tonnes a year earlier.