PP unit construction completed by 70% in Azerbaijan

MOSCOW (MRC) -- A polypropylene unit of Azerbaijan’s SOCAR Polymer plant for the production of polypropylene (PP) and polyethylene (PE) has been constructed by 70%, SOCAR Polymer financial director Fuad Ahmadov said, reported Trend.

Ahmadov made the remarks during the conference titled "The 2nd SOCAR International Caspian and Central Asia Downstream Forum - Trading, Logistics, Refining, Petrochemicals" in Baku Apr. 27.

He added that a PE unit of the plant has been constructed by 26%.

Ahmadov said that the plant's PP unit will be put into operation in January-March 2018, while the PE unit - in July-September 2018.

He added that 25% of the plant's products will be supplied to the domestic market, while 70% - for export to Turkey, Europe and the CIS countries.

The total cost of the SOCAR Polymer project is USD750 million. The project is being implemented in the Sumgait Chemical Industrial Park.

At the first stage, the production capacity will reach 120,000 tons of PE and 180,000 tons of PP. By 2021, the total capacity can reach 570,000 tons of products.

As MRC wrote previously,SOCAR signed licensing agreements with Technip, Univation Technologies, Axens and Sinopec Tech as part of a project to establish the Gas Processing and Petrochemical Complex (GPC) in Azerbaijan, SOCAR said in a message posted on its website Dec. 20, 2016.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.

SOCAR Polymer is a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
MRC

MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed the acquisition of IFS Chemicals Limited (IFS), one of the UK's leading independent formulators of methylene diphenyl diisocyanate (MDI) based systems, as per SteetInsider.

The purchase price was not disclosed.

Located in Kings Lynn, England, IFS was established more than 35 years ago and its customized MDI systems are used in a diverse range of end markets, including insulation, appliances, automotive and elastomeric applications.

Commenting on the acquisition, Tony Hankins, President of Huntsman's Polyurethanes division, said: "With their highly experienced team and loyal customer base, IFS provides us with excellent access to the UK's growing downstream MDI systems market. It will serve as a strategic platform to expand our business and consolidate our position as a market leader. The acquisition represents the latest step in our plan to strengthen our differentiated downstream capabilities and we now have more than 25 facilities worldwide, reflecting our confidence in the long-term growth prospects for MDI-based urethanes."

Barrie Colvin IFS founder and Managing Director added, "I am delighted that we have reached agreement with Huntsman and look forward – together with the rest of the IFS team - to an exciting future which brings together the best of IFS and Huntsman Polyurethanes, strengthening our ability to meet the growing needs of existing and future customers."

As MRC informed earlier, in late July 2016, Huntsman Corporation (The Woodlands, Texas) announced that the company would include textile effects and the balance of its pigments and additives segment in the spinoff of its titanium dioxide (TiO2) business.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. Huntsman is a global manufacturer and marketer of differentiated chemicals. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

MOSCOW (MRC) -- BP announced that it has agreed to sell its 50% stake in the Shanghai SECCO Petrochemical Company Limited (SECCO) to Gaoqiao Petrochemical Co Ltd, a 100% subsidiary of China Petroleum & Chemical Corporation (Sinopec), BP’s joint venture partner, for a total consideration of USD1.68 bln, as per the company's press release.

"This decision aligns our petrochemicals business in China with our global focus on areas where BP has leading proprietary technologies and competitive advantage. China is a key region for our chemicals business and BP will continue to look for opportunities to build on our position in the country," said Rita Griffin, chief operating officer, BP Global Petrochemicals. SECCO is currently owned by BP (50%), Sinopec (30%) and Sinopec Shanghai Petrochemical Company Limited (20%), in which Sinopec holds a majority interest. Based in Shanghai, SECCO is a major producer of olefins - ethylene and propylene - together with polymers and other derivatives including polyethylene, polypropylene, acrylonitrile styrene, polystyrene, butadiene and other products.

"China is a country of great significance to BP given its market potential," said Dr. Xiaoping Yang, BP China president, "BP has been committed to doing business in China for more than four decades. Looking into the future, we plan to continue to invest in China in areas that provide the best growth opportunities for BP, our Chinese partners and the country." The transaction is subject to a number of regulatory approvals and other conditions, subject to which, it is currently anticipated to complete before the end of the year with the consideration payable in instalments.

As MRC informed before, in 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. The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.

BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC

MOSCOW (MRC) -- Speciality chemicals leader Dow Chemical, which is merging with DuPont, has reported profits of USD888 million for the first quarter (Q1) of the year, as against USD169 million during Q1 2016, marking an increase of 425 per cent, said the company on its site.

Sales were USD13.2 billion, up 23 per cent versus the year-ago period, reflecting the addition of Dow Corning’s silicones business.

Operating EBITDA rose 20 per cent to USD2.7 billion, driven primarily by broad-based consumer-driven demand.

Price rose 7 per cent, while volume grew 4 percent, excluding the impact of acquisitions, reflecting continued demand drivers in Dow’s key end-use markets of packaging, transportation, infrastructure, consumer care and electronic materials.

Andrew Liveris, Dow’s chairman and chief executive officer, stated: "This quarter we delivered an all-time record in operating EBITDA. Our results underscore the strength of Dow’s portfolio and the levers we have in place to maintain agility in a rapidly changing business environment."

"Dow’s operational and financial results reflect the strength of our broad geographic footprint, robust consumer-driven demand aligned with our core material science markets and a focused productivity agenda.

"Our disciplined execution against our strategy continues to deliver a fundamental shift in our growth trajectory. We have now extended our streak of year-over-year operating EPS growth to 18 consecutive quarters and achieved 14 consecutive quarters of year-over-year volume gains," he added.

"The global economy is showing signs of positive momentum, with excellent leading indicators across much of the world – though geopolitical risks and volatility will persist. The strength and resilience of our portfolio, combined with our consumer-led market focus, will continue to serve us well in this environment," Liveris concluded.

Meanwhile, Dow and DuPont progressed their proposed merger transaction. The companies achieved key regulatory approvals; reiterated their commitment to the USD3 billion cost synergy target; and mutually agreed that all the intended spin-offs will occur within 18 months of closing, with the post-merger Materials Science Company expected to be the first spin-off if it would not adversely impact the value of the intended spin-off transactions.
MRC

MOSCOW (MRC) -- The Dow Chemical Company announced that its JV in the Middle East—Sadara Chemical Company—has achieved a milestone with the commercialization of Sadara’s entire plastics franchise, said Hydrocarbonprocessing.

The start-up of Sadara’s high-pressure low-density polyethylene plant adds to Sadara’s mixed feed cracker and the three additional polyethylene trains currently in operation.

"Sadara is a vital growth investment aligned to Dow’s long-term strategy to go narrower and deeper into our core growth markets," said Andrew Liveris, Dow’s chairman and chief executive officer. "The completion of this milestone positions Dow to strengthen our global materials science franchise by capturing additional consumer demand and extending our competitive advantage through industry-leading integration and feedstock flexibility."

Sadara’s mixed feed cracker—the largest single unit at the facility—began operations in August 2016. The first three polyethylene production units came online in December 2015, April 2016 and September 2016, and each are reactor qualified and have met their license warranty runs. Thirty-two polyethylene products have been qualified to date, serving more than 350 customers in 58 countries. Construction of all of Sadara’s 26 production facilities was completed in December 2016.

"Sadara’s plastics units enable Dow to offer a technology-differentiated portfolio in expanding economies across Asia Pacific, India, Central and Eastern Europe, the Middle East and Africa," said Jim Fitterling, Dow’s president and chief operating officer. "Our customers have been eagerly anticipating this new volume and will benefit from Sadara’s broad product offering and close proximity to these fast-growing regions."

The remaining units at the complex are on schedule for a sequenced start-up throughout 2017, including ethylene oxide, propylene oxide and their derivatives (butyl glycol ethers, propylene glycol, amines, and polyols) and isocyanates.

Sadara is a JV developed by Dow and Saudi Aramco. The Sadara chemical complex is the largest of its kind ever built in a single phase. The more than three million metric tons of performance-focused products will add new value chains to the Kingdom’s vast petroleum reserves, resulting in the diversification of the economy and region.
MRC