IVL signs long-term gas cracker feedstock deal in the USA

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a leading global chemical producer, has announced that the company has signed a long-term agreement for all of its ethane and propane feedstock supply requirements for the company's gas cracker in Lake Charles, Louisiana, with Targa Resources Corp., a leading supplier of natural gas liquids (NGLs) in Mont Belvieu, Texas, as per the company's press release.

Under this agreement, Targa Resources Corp. will not only supply IVL with all its ethane and propane requirements but also provide storage for these gases locally at Lake Charles.

IVL announced the acquisition of the Lake Charles ethylene cracker in September 2015. It is currently undergoing refurbishment and is expected to start up in the fourth quarter of 2017. The cracker can process both ethane and propane feedstock to produce approximately 420,000 tonnes of ethylene and 20,000 tonnes of propylene per annum. Indorama Ventures is already a major producer of purified ethylene oxide (PEO) and mono ethylene glycol (MEG) in the USA.

"This multi-year contract will provide IVL with 100% of our ethane needs to meet our ethylene requirements at favorable terms. The flexibility of the cracker to swing between ethane and propane will allow us to take advantage of shale gas economics as well as effectively becoming the most vertically integrated of all the PET producers in North America with accompanying integrated manufacturing cost efficiencies. The integration economics with olefins will provide IVL with significant long-term cost advantages across its North American footprint," Mr. Lohia said.

Separately, Indorama Ventures has also signed a contract with Boardwalk Louisiana Midstream, LLC (Boardwalk), a subsidiary of Boardwalk Pipeline Partners, LP, for Boardwalk to provide pipeline transportation and local storage for the ethylene that will be produced at Indorama Ventures’ Lake Charles gas cracker. Boardwalk will also provide connectivity to its Evangeline Pipeline, which enables ethylene delivery to both Louisiana and Texas, where Indorama Ventures has a Oxide and Glycols facility that uses ethylene to produce monoethyleneglycol (MEG), a vital raw material for PET production, as well as purified ethylene oxide (PEO), which is a high value added chemical used by the consumer goods industry.

As MRC informed before, in early 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. Under the terms of the agreement, Indorama Ventures purchased the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers. The Decatur complex makes chemicals essential for the production of thousands of items, from plastic water bottles to flat-screen televisions. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC

MOSCOW (MRC) -- Avery Dennison Corporation announced it has agreed to acquire Hanita Coatings, a pressure-sensitive materials manufacturer of specialty films and laminates from Kibbutz Hanita Coatings and Tene Investment Funds for the purchase price of USD75 million, subject to customary adjustments, said producer on its site.

Headquartered in Israel with sales and distribution facilities in the United States, Germany, China and Australia, Hanita Coatings develops and manufactures coated, laminated, and metallized polyester films for a range of industrial and commercial applications, all of which require high performance and superior quality.

Hanita Coatings’ window films are used in architecture and automotive aftermarkets; its top-coated polyester films are used in the manufacture of durable labels; and its ultra-high barrier films form part of insulation systems used in refrigeration, buildings and cold chain packaging.

"We see clear opportunities to leverage our strong global organization and established brand to help accelerate Hanita Coatings’ product commercialization around the world," said Mitch Butier, Avery Dennison president and CEO. "In addition to expanding our product portfolio and providing new growth opportunities, Hanita Coatings’ culture of innovation and long-standing commitment to R&D are a strong fit with our own company’s 80-year history of innovation in materials science."

With 2015 sales of roughly USD50 million, Hanita Coatings currently employs more than 220 employees, most of whom are located at the company’s headquarters in Israel’s Western Galilee. The 33-year-old company generates sales in more than 40 countries.

"We are excited to be joining forces with such a global industry leader and see it as a great opportunity for Hanita Coatings to realize its full potential," added Oved Shapira, CEO, Hanita Coatings. "I am convinced that Avery Dennison’s resources, distribution channels, and brand will benefit our customers across all our markets, enabling continued innovation through future investment and improved manufacturing efficiency."

Avery Dennison expects that completion of the transaction will take up to a few months, subject to customary closing conditions and approvals. Avery Dennison announced the deal in September 2016.

Avery Dennison is a global leader in labeling and packaging materials and solutions. The company’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and more than 25,000 employees worldwide, Avery Dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent. Headquartered in Glendale, California, the company reported sales of USD6.0 billion in 2015.
MRC

MOSCOW (MRC) -- Technip and Chemetry have signed an exclusive cooperation agreement for the licensing and engineering of Chemetry’s eShuttle technology for the production of ethylene dichloride (EDC), as per Technip's press release.

EDC is a commodity chemical produced worldwide and used primarily for PVC plastic production.

The technology uses a metal halide ion process to produce high purity EDC without the generation of chlorine gas. The process reduces electrical power consumption compared to latest generation chlor-alkali processes. Power savings can be reduced by nearly half compared to older diaphragm or mercury-based processes. Additionally, the process is suited for integration with oxygen depolarized cathode technology. The technology was pioneered in Chemetry’s laboratory and integrated pilot demonstration facilities in Moss Landing, California.

Technip’s operating center in Boston, Massachusetts will manage the agreement, with support from Technip’s office in Lyon, France. Both centers are part of Technip Stone & Webster Process Technology, which looks after Technip’s expanding portfolio of onshore process technologies in petrochemicals, refining, hydrogen and syngas, polymers and gas monetization.

"Since its founding, Chemetry has been focused on redefining how chemicals are made," Dr. Ryan Gilliam, Chemetry CEO, said. "From lower energy requirements and improved margins, to less impact on the environment and safer operation, we are developing a technology platform that will have a lasting impact."

The eShuttle technology uses the same feedstocks and produces the same products (EDC, caustic and hydrogen) as conventional processes, allowing retrofitting to existing chlor-alkali/EDC plants.

As MRC wrote previously, in October 2016, Technip was awarded by Public Joint Stock Company (PJSC) Kazanorgsintez a contract to provide engineering and procurement of three proprietary SMK grassroots furnaces at Kazan, Republic of Tatarstan, Russia. The furnaces will be part of the ethylene plant at the site. This project is another step in Kazanorgsintez’ ongoing cracking furnaces replacement program and confirms the long-standing relationship between the two companies.

In 2007 and 2015, Technip supplied SMK double-cell cracking furnaces to Kazanorgsintez with successful start-up and operation. This furnace type is particulary suitable for cracking high-capacity, low-cost ethane and propane gas feedstock. Technip’s operating center in Zoetermeer, The Netherlands, will execute the project, which is scheduled for mechanical completion in 2018.

Technip is a world leader in project management, engineering and construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our close to 32,500 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges. Present in 45 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC

МOSCOW (MRC) -- Sinclair Casper Refining Company has paid $655,000 to reimburse the US Environmental Protection Agency for response costs incurred at the Empire State Oil Company Refinery Site in Thermopolis, Wyoming, said Hydrocarbonprocessing.

The company entered into a settlement agreement with EPA for the recovery of past costs associated with the cleanup of the site, including the removal of asbestos, in September. EPA received payment last week.

The Thermopolis refinery site operated as an oil refinery from 1920 until 1969. Beginning in 1974, the refinery was razed and equipment was sold and removed from the site by various entities, including Sinclair’s predecessor, Little America Refining Company. During demolition activities, a significant amount of asbestos-contaminated pipe insulation was stripped from equipment and disposed at the site.

EPA assessed the property in 2011 and identified significant asbestos contamination on the ground surface. In November 2013, EPA removed approximately 4,000 cubic yards of asbestos-containing materials and soils from the site. Excavated areas were backfilled with clean native soil from a property near the site and were re-seeded the following spring.

The agreement with Sinclair Casper Refining was entered into under the federal Comprehensive Environmental Response, Compensation and Recovery Act, also known as Superfund. Funds recovered as part of this settlement agreement will be deposited into the Superfund account used to address cleanup needs at contaminated sites across the United States.

The administrative settlement published in the Federal Register on Sept. 20, and became effective following a 30-day public comment period.
MRC

MOSCOW (MRC) -- LiqTech International, Inc. announced that the company has received a USD350,000 order for the company's water treatment systems for flue gas condensate, said Hydrocarbonprocessing.

The order was received from DuPont and will be installed at their facility in Grindsted, Denmark.

"We have invested significant resources in developing a standardized system for the treatment of flue gas condensate,” Sune Mathiesen, LiqTech CEO, said. “Our technology has proven to be well suited for this challenging application and we are very pleased to note that our product is gaining still more interest and acceptance from the industry."

"We are very happy to work with LiqTech on this project,” Steffen Bendstrup, DuPont Team Leader, said. “They have a proven technology and based on their prior experience they were able to provide us with the necessary process guarantees. When the system is installed it will remove heavy metals before discharge. In the future we have the opportunity to further add a reverse osmosis system, which will allow us to reuse the water."

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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