Wison Engineering awarded 40 MMtpy ethylene cracking contract from zhejiang

MOSCOW (MRC) -- Wison Engineering announced that its non-wholly owned subsidiary, Wison Engineering (China) Limited, was awarded a contract by Zhejiang Petrochemical Co., Ltd to deliver nine ethylene cracking furnaces for a 40 MMtpy refining and chemical integrated complex (Phase I), said Hydrocarbonprocessing.

The 9 ethylene cracking furnaces will be in modularized fabrication and scheduled to be delivered in modular by early 2018.

Zhejiang Petrochemical refining and chemical integrated complex (Phase I) will produce 1.4 MMtpy of ethylene. With a capacity of 200 Mtpy for a single furnace, it becomes the largest cracking furnace equipment in terms of production capacity in China to date.

It is also the world's largest single cracking furnace that will be transported and delivered in a whole. As a leader in the domestic ethylene cracking furnace industry, Wison Engineering owns a track record of over 170 sets of ethylene cracking furnaces.

"We are very grateful to the trust given to us by Zhejiang Petrochemical. The cracking furnace has always been one of the strongest areas of Wison Engineering,” said Zhou Hongliang, Senior Vice President of Wison Engineering. “In spite of all challenges caused by the tight delivery timeline of the large-scale project, Wison Engineering will actively mobilize the company’s resources in the implementation of modular construction and overall transportation strategy to ensure the successful delivery of the project."
MRC

MOSCOW (MRC) — MRC Global Inc. announced that it has extended its worldwide master contract with Chevron Corporation for seven more years, said Hydrocarbonprocessing.

The contract allows them to provide pipe, valve and fitting (PVF) products and services to Chevron Corporation's global operations and project work.

"Our relationship with Chevron has grown significantly over time, and we are grateful that they continue to allow us to be part of their long-term, supply chain planning for PVF," President & CEO, Andrew R. Lane, said. "In 1955 we first began supporting Chevron at their Richmond, CA facility. Now, after more than 60 years of working together, MRC Global is proud to provide strategic supply chain solutions to Chevron's global operations in its upstream, midstream, refining and chemical sectors."
MRC

MOSCOCW (MRC) — The cost of Indonesia's subsidy on LPG is increasing, leading to the country paying at least half of the cost of the fuel, said Timesofindia citing Pertamina.

The LPG subsidies are more than customers pay for the fuel in some instances, said Pertamina Marketing Director Muchammad Iskandar, amid discussions on increasing LPG prices to reduce government spending.

Net oil importer Indonesia's fuel subsidies have been blamed for creating a false economy, widespread smuggling and corruption. Soon after taking office in 2014, President Joko Widodo cut government fuel spending by more than 90 percent, and shifted the burden of petroleum subsidies to Pertamina.

Now Pertamina is selling subsidized LPG in 3 kg containers at 4,750 rupiah (USD0.3574) per kg, less than half of the company's breakeven price of about 10,500 rupiah per kg, said Isakander. Millions of Indonesians are taking advantage of a program to shift households toward LPG and away from using the more costly and dangerous kerosene for cooking fuel.

"What is more worrying is that the subsidy burden is increasing, because consumption is increasing because prices are going up," Iskandar told reporters. "The numbers of (LPG) users are increasing," he said, noting that people had switched over from using larger unsubsidized 12 kg LPG canisters to take advantage of the lower prices. "Water pumps in paddies once used oil but now use LPG because it's the cheapest."

Energy and Mineral Resources Minister Ignasius Jonan said the 2017 budget allowed for government to increase LPG prices by 1,000 rupiah, but no decision has been made yet. Any increase to LPG and other fuel prices would depend on directions from President Joko Widodo in a cabinet meeting, Jonan said.

Chief economic minister Darmin Nasution said last month that a price increase would not happen until Ramadan, the Muslim fasting month, ends at the end of June as part of a plan to control inflation. Typically inflation picks up in the Muslim-majority country during the fasting month as people stock up on food, buy new clothes and travel to their home towns.

Indonesia was expected to import around 70% of its demand LPG this year, a Pertamina official said in January, and imports were expected to reach 5 MMt, up 13% from 2016 levels.
MRC

MOSCOW (MRC) -- Shanghai Golden Phillips Petrochemical Co is likely to restart a high density polyethylene (HDPE) plant, as per Apic-online.

A Polymerupdate source in China informed that the company has planned to resume operations at the plant on June 12, 2017. The plant was shut owing to lack of feedstock availability end-May 2017.

Located in Shanghai, China, the HDPE plant has a production capacity of 135,000 mt/year.

As MRC wrote before, on 10 April, 2017, Shanghai Golden Phillips Petrochemical Co restarted its HDPE plant in Shanghai, which was shut owing to weak economic fundamentals.

Shanghai Golden Phillips Petrochemical Co. Ltd. manufactures petrochemical products. The company produces and sells blow molding products, films, pipes, and wire resins. Shanghai Golden Phillips Petrochemical also offers after sales services.
MRC

MOSOCW (MRC) - Negotiations on European polyvinyl chloride (PVC) prices for June delivery to the CIS markets have begun this week. Despite the reduction in the price of ethylene in the region, some producers are not going to reduce PVC export prices, according to the ICIS-MRC Price Report.

June contract price of ethylene was agreed down EUR35/tonne from the level of May, which makes it possible to talk about reducing the cost of polyvinyl chloride by EUR17.5/tonne.

European producers still have serious restrictions on exports due to the planned shutdowns for scheduled maintenance works and strong demand in the domestic market, and as a result, only a few producers have reduced PVC export prices.

Some producers have offered price reduction at the level of EUR10/tonne in comparison with the May price level.
In general, negotiations on June shipments of suspension polyvinyl chloride (SPVC) to the CIS markets are held in the range of EUR850-940/tonne FCA for K64/67 PVC. Prices for K70 PVC were offered on average up by EUR10-20/tonne.

Significant export restrictions have remained for several months. In particular, there were no price offers from the German company Vinnolit, while Polish Anwil plans to ship most of export orders after 19June because of the shutdown for maintenances.
MRC