July prices of European PP fell again for CIS markets

MOSCOW (MRC) -- The July contract price of propylene in Europe was settled down by EUR50/tonne from June. However, some European producers reduced this month's export PP prices for the CIS countries more significantly than the monomer price, according to ICIS-MRC Price report.

Negotiations over July prices of European PP began this week, many market participants said European producers reduced their export PP prices more considerably than the amount of reduction in the propylene price in Europe. Local producers' export quotas increased this month, although some producers still had restrictions on exports.

Deals for July shipments of homopolymer propylene (homopolymer PP) were negotiated in the range of EUR1,000-1,190/tonne FCA, whereas last month's deals were done in the range of EUR1,040 - 1,140/tonne FCA. Some producers said they had sold out all their July quotas of homopolymer PP in the first week of the trades.

Deals for block compolymers of propylene (PP block copolymers) were discussed in the range of EUR1,100-1,160/tonne FCA. Negotiations over July shipments of statistical comopolymers of propylene (PP random copolymers) were held in the range of EUR1,150-1,230/tonne FCA.
MRC

MOSCOW (MRC) -- Chandra Asri Petrochemical (CAP) has awarded a material supply agreement to CB&I for the revamp of existing furnaces at CAP's naphtha cracker plant in Cilegon, Banten, Indonesia, as per Apic-online.

CAP's project involves increasing ethylene production capacity to 900,000 t/y from 860,000 t/y, propylene capacity to 490,000 t/y from 470,000 t/y, py-gas capacity to 420,000 t/y from 400,000 t/y and mixed C4 capacity to 330,000 t/y from 315,000 t/y. Construction is planned to begin in the third quarter of 2018 and completion is expected in the first quarter of 2020.

The contract, for which a value was not disclosed, fol-lows a basic and detailed engineering services agreement signed between the companies earlier this year.

This past May, CB&I was also awarded a contract from CAP's Petrokimia Butadiene Indonesia subsidiary to provide three proprietary technologies for a butadiene expansion project at the integrated naphtha cracker complex.

Butadiene capacity will be increased by up to 37% from 100,000 t/y currently. Start-up is planned in the third quarter of 2018.

The butadiene plant consumes mixed C4 produced from CAP's olefins facility.

As MRC reported before, in September 2016, PT Chandra Asri Petrochemical (CAP) signed an agreement with Univation Technologies, LLC, located in the United States, to use the UNIPOL PE Progress for a new world scale 400KTA polyethylene (PE) plant at its integrated naphtha cracker complex in Cilegon, Banten. The agreement covers process design package, including licence, to produce linear low density polyethylene (LLDPE), high density polyethylene (HDPE) and metallocene LLDPE (mLLDPE).

Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
MRC

MOSCOW (Market Report) - The largest petrochemical plant in Ukraine, Karpatneftekhim (Kalush, Ivano-Frankivsk region), resumed production oh high density polyethylene (HDPE) on 6 July after five years of shutdown, the company's press service said.

Karpatneftekhim fully resumed production of HDPE and started production of polyvinyl chloride (PVC) according to the representatives of the enterprise. The first start-up of polyethylene capacities was held on 9 June, but due to technical problems the work of the site was suspended. As Ukrainian companies reported, negotiations on July deliveries of polyethylene to the domestic market began last week.

The launch of production after five years of the shutdown took place due to the introduction in Ukraine of the world practice of taxing petrochemical raw materials, the company said earlier. The Tax Code of Ukraine expanded the list of raw materials subject to a zero excise tax rate in the case of further processing in December 2016.

As MRC previously reported, Lukoil completed a deal to sell a 100% stake in LUKOIL Chemical B.V. (Netherlands), which belongs to Karpatneftekhim in February 2017. Techinservice Limited bought from Lukoil up to 50% of Karpatneftekhim. The total amount of the transaction was USD25 mln. The second indirect owner of over 50% in LLC "Karpatneftekhim" through the Cyprus Xedrian Holding Ltd was Lukoil manager in Ukraine Ilham Mammadov.

Production at Karpatneftekhim was suspended in September 2012. Earlier, the plant repeatedly reported the problems due to the debts of the state for the reimbursement of export VAT and dumping of foreign, in particular, American producers of PVC - one of the main commodity positions of the Karpatneftekhim.

Karpatneftekhim (Kalush, Ivano-Frankivsk region) - was a subsidiary of LUKOIL-Neftekhim and is the largest producer of polymers in Ukraine. The company produces polyolefins (ethylene and propylene), polyethylene, chlorine, polyvinyl chloride and caustic soda. The enterprise's capacities allow producing 300,000 tonnes of ethylene, 100,000 tonnes of HDPE, 180,000 tonnes of caustic soda and 300,000 tonnes of PVC per year.
MRC

MOSCOW (MRC) -- Mitsui O.S.K. Lines (MOL) has signed a long-term charter contract for four liquefied natural gas (LNG) carriers to serve the Yamal LNG project in Russia, as per Apic-online.

The 174,000-cu m vessels will be delivered in 2019 and 2020 onwards, through a wholly-owned subsidiary of MOL. Value of the contract was not disclosed.

Yamal LNG, owned 50.1% by Novatek, 20% by China National Petroleum Corp., 20% by Total and 9.9% by China's Silk Road Fund, is building three 5.5-million-t/y liquefaction trains in the Russian Arctic, with the first train expected to be completed this year.

As MRC reported earlier, in March 2016, Mitsui & Co., Ltd. and Hankuk Carbon Co., a company listed on the Korea Exchange, entered into a strategic alliance agreement to engage in collaborative business activities relating to the processing of composite materials. Based on this agreement, Mitsui acquired a 10% equity stake in HC (on a voting rights basis) for an investment of KRW 30.6 billion.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- SABIC has appointed specialist consultancy RVA Group to oversee the decommissioning, demolition and dismantling of 10 plants at its North Tees and Wilton sites, as per Plastemart.

With work having already commenced in the two locations, the multi-million pound programme is expected to be completed in 2020.

The more immediate programme involves the demolition of a Jetty, which will begin at the end of July and be cleared in eight weeks. Continued decommissioning support is being provided for a tank farm complex and RVA is also finalising the contractor selection process for the demolition of two Aromatics plants, with a proposed mobilisation date of January 2018.

In Wilton, the 48-week demolition of SABIC’s Olefins 5 Furnaces and neighbouring Butadiene 2 facility is already in progress and expected to be completed by the spring of 2018 and the close of 2017 respectively.

SABIC's Site Director (acting) Daren Smith explains: "With the two-year upgrade of our cracker plant now complete, this current multi-million pound clean-up signals the latest chapter in the creation of safe, efficient and state-of-the-art facilities that are fit for the future."

As MRC wrote before, in October 2016, Sabic announced that it had developed next generation low density polyethylene (LDPE) foram grades. The first product of a new generation of LDPE foam grades from SABIC was designed to increase production efficiency at the foam manufacturer.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
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