Styrolution normalized ABS output at Antwerp plant

MOSCOW (MRC) -- Ineos Styrolution's acrylonitrile-butadiene styrene (ABS) output at its Antwerp unit in Belgium is back at a "normal production level," as per Plastemart.

Production at the plant was reduced between February and April as a result of works, a different source said back in February. The source confirmed Wednesday that "things are picking up again" and that the company had normal production from April 1-2.

ABS capacity at the Antwerp plant is around 250,000 m tpa, according to a source. On Tuesday, the company announced that it would reduce ABS prices by Eur60/mt in April compared to March, following the settlements of its feedstock prices.

As MRC wrote previously, in early March 2017, Germany-based styrenics producer Ineos Styrolution completed its acquisition of the global K-Resin styrene-butadiene copolymers (SBC) business of Chevron Phillips Chemical and Daelim after receiving all necessary regulatory and legal approvals. Agreed in November last year, the acquisition includes the equity interests of the joint venture K R Copolymer Company (KRCC), owned to 60% and 40% by the US and Korean companies respectively, as well as intellectual property for K-Resin and other assets related to the SBC business.

Ineos Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 80 years of experience, INEOS Styrolution helps its customers succeed by offering the best possible solution, designed to give them a competitive edge in their markets. The company provides styrenic applications for many everyday products across a broad range of industries, including automotive, electronics, household, construction, healthcare, toys/sports/leisure, and packaging. Ineos Styrolution employs approximately 3,100 people and operates 15 production sites in nine countries.
MRC

Sinopec exports first diesel cargo under general trade terms in 13 yr

MOSCOW (MRC) -- Top Asian refiner Sinopec Corp exported its first refined fuel cargo under so-called general trade terms in 13 yr, the company said on Friday, as China's state-owned refiners adapt to tighter government export quotas, said Reuters.

Sinopec exported a diesel cargo on April 1 from its Qingdao plant in east China for delivery to Singapore under the rules, it said. Chinese refiners mainly export refined oil products under processing trade terms and the government has set an annual quota on how much each refiner can ship.

The government slashed the second round of export quotas under processing trade rules for 2017 by 73% versus the first batch. Under the processing scheme, refiners are exempted from taxes on both the crude oil imported and the oil products exported, while under the general trade category plants get tax refunds after exports are completed, said four traders familiar with the rules.

Both require quotas, but general trade offers much greater flexibility as refiners have the full authority to decide when and how much refined fuel to export. "For large refiners like Sinopec and PetroChina, the flexibility to market refined barrels in domestic or overseas market as they see fit means good profitability," said a former state oil trading executive.

It was not immediately clear how many quotas Beijing is considering or may have issued to state refiners under the general trade rules. The shipments like Sinopec's cargo could be a supplement to the prevailing exports under processing trade, said two Beijing-based oil traders.

Under the processing, or so-called "tolling" schemes, refiners have a fixed volume and time slots to export, both under tight scrutiny of Chinese customs, the Beijing-based oil traders said.

Beijing has suspended the grant of export quotas under processing trade rules to independent refiners for this year, ending a year-old policy allowing some independents to sell diesel, gasoline and naphtha abroad and dealing a blow to the group.

General trade exports are totally off-limits to these independents, executives at these smaller firms have said.
MRC

European producers did not raise April PE prices for CIS countries

MOSCOW (MRC) -- The April contract price of ethylene was settled at the level of March in Europe. Therefore, European polyethylene (PE) producers were forced to roll over March prices for April shipments, according to ICIS-MRC Price report.

Negotiations over export prices of European PE to be shipped to the CIS markets began on Monday. Many negotiators said all European producers had rolled over their export PE prices. Some producers, on the contrary, had to reduce their prices because of fairly high prices in March.

April deals for high density polyethylene (HDPE) were discussed in the range EUR1,170-1,225/tonne FCA, whereas last month's deals were done in the range of EUR1,180-1,240/tonne FCA. Negotiations over black pipe grade PE 100 were held in the range of EUR1,300- 1,360/tonne FCA.

Most European producers still had serious restrictions on exports.

Deals for April shipments of low density polyethylene (LDPE) were negotiated in the range of EUR1,300 - 1,350/tonne FCA, which virtually corresponds to last month's prices. As in the case with HDPE, some producers still had restrictions on PE shipments.
MRC

Air Liquide signs long-term contract with Oman petroleum group

MOSCOW (MRC) -- Air Liquide and Oman Oil Refineries and Petroleum Industries Company (Orpic), Oman’s national refining company, recently signed a long-term agreement for the supply of nitrogen to the Liwa Plastics Industries Complex (LPIC), a new plastics production complex including the country’s first steam cracker Orpic is adding to its existing production facilities, in Sohar industrial port area in Oman, said Air Liquide on its site.

Investing around EUR20 MM to build a state-of-the-art nitrogen production unit with a total capacity of 500 t of nitrogen per day, Air Liquide will strengthen its leadership position in a key industrial area to support the growth of its customer Orpic.

Expected to start operations in the first quarter of 2019, the new nitrogen plant, along with the expansion of Air Liquide’s existing pipeline network, will supply nitrogen for the customer’s plastics production complex expanding to a capacity of polyethylene and polypropylene of 1.4 MMtpy. Those plastics components are needed for many applications in derived products from petroleum, such as packaging industries as well as other industrial applications.

The nitrogen production unit will be designed and built by Air Liquide’s Engineering and Construction teams, and will be owned and operated by Air Liquide Sohar Industrial Gases Company.

"We are pleased to strengthen our relationship with a strategic petrochemical player such as Orpic," said Francois Jackow, member of the Air Liquide Group’s Executive Committee, supervising Africa, Middle East and India. "Air Liquide demonstrates its ability to continue capitalizing on its existing assets, such as its pipeline network located in the most dynamic industrial basin of Sohar. With this new nitrogen supply contract, Air Liquide will support the development of the petrochemical industry in Oman."
MRC

PKN Orlen to supply 100 Mtpy of propylene to Basell Orlen Polyolefins

MOSCOW (MRC) -- PKN ORLEN will supply up to 100,000 t of propylene annually to Basell Orlen Polyolefins. The contract covers the production volume of the Metathesis Unit, currently constructed in Plock and scheduled for commissioning in the second half of 2018, as per Hydrocarbonprocessing.

The annual value of the propylene supply contract is approximately PLN 350m. The contract will remain in effect throughout the term of the JV agreement under which Basell Orlen Polyolefins Sp. z o.o. (BOP) was established in 2002. PKN ORLEN holds a 50% equity interest in BOP.

"We have already secured a contract to sell the entire output of the Metathesis Unit, to guarantee full utilization of its future capacities. Thanks to the contract, Basell Orlen Polyolefins will be able to plan increased production of polypropylene. The contract is a part of PKN ORLEN’s strategy to grow its petrochemical business through synergies with BOP," said Piotr Chelminski, Member of the PKN ORLEN Management Board, responsible for Power Generation, and Chairman of the Supervisory Board of Basell Orlen Polyolefins.

The Metathesis Unit, currently being built at the Plock Production Plant, will deliver polymer grade propylene. The Plant’s current nominal capacity of 450,000 t of propylene will be raised to 550,000 tpy. The project will cost approximately PLN 400m.

As MRC informed before, in December 2016, PKN Orlen signed an annex with Tatneft Europe AG to the agreement for crude oil supplies to Czech refinery in Litvinov that provides the extension of contractual period and increases the possible maximum volume of the crude oil delivered. According to the annex, Tatneft will deliver to Litvinov refinery a crude oil in the quantity from 1,620 MMt to maximum 3,960 MMt. The contract will be valid from Jan. 1, 2017 until Dec. 31, 2019.

PKN Orlen is a major Polish oil refiner and petrol retailer. The company is a significant European publicly traded firm with major operations in Poland, Czech Republic, Germany, and the Baltic States. It currently (2015) ranks 353, with a revenue of over USD33.8 billion.
MRC