PP production in Russia rose by 7% in Jan-Apr 2018

Some producers increased their capacity utilisation in April, overall PP production in Russia exceeded 130,000 tonnes, compared to 120,900 tonnes a month earlier. Overall PP production exceeded 496,1000 tonnes in the Russian Federation in the first four months of 2018 versus 464,900 tonnes a year earlier, Neftekhimiya, Stavrolen and Ufaorgsintez accounted for the greatest increase in the output, whereas Nizhnekamskneftekhim and SIBUR Tobolsk did not raise their production.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk, Russia's largest PP producer, manufactured 46,800 tonnes last month, compared to 39,800 tonnes in March. Overall PP output at the Tobolsk plant exceeded 173,300 tonnes in the first four months of 2018, which equalled the last year's figure.

Poliom (part of Titan Group) produced 18,500 tonnes of PP in April, compared to 19,100 tonnes a month earlier. Overall, the Omsk plant produced 73,200 tonnes of PP over the stated period, up by 5% year on year.

Tomskneftekhim produced 12,600 tonnes of propylene polymers in April versus 12,500 tonnes a month earlier. The Tomsk plant's PP output reached 49,000 tonnes in the first four months of 2018, compared to 46,500 tonnes a year earlier.

Ufaorgsintez's production was 11,200 tonnes last month versus 11,800 tonnes in March. Overall output of polymer at the Ufa plant rose to 44,800 tonnes in January-April 2018, compared to 41,200 tonnes a year earlier.

Neftekhimiya (Kapotnya) increased its capacity utilisation in April, the plant's total production exceeded 12,000 tonnes versus 9,900 tonnes a month earlier. Its PP output reached 45,200 tonnes over the stated period, up by 2% year on year. The last year's low figure was caused by a long scheduled maintenance in March-April.

Stavrolen (part of Lukoil) produced 10,800 tonnes last month versus 10,500 tonnes in March. Overall production of propylene polymers at the Budenovsk plant reached 41,000 tonnes in the first four months of 2018, up by 7% year on year.

Nizhnekamskneftekhim also increased its capacity utilisation in April, the total production of propylene polymers was 18,200 tonnes versus 17,300 tonnes a month earlier. Overall output of polymer at the Nizhnekamsk plant decreased in January-April 2018 by 4% year on year to 69,600 tonnes.

MRC

MOSCOW (MRC) -- The EUR4 million investment will increase capacity by 80 percent, and will provide a platform to meet growing demand from customers in India and the Middle East, said Dutch AkzoNobel in its press release.

In addition, a new waste water management system will make the process more environmentally sustainable. The expansion is expected to be completed by the end of 2018.

"This is the latest in a series of organic peroxide investments to better serve our customers by upgrading technologies and increasing production capacity," says Johan Landfors, Member of the Executive Committee responsible for Polymer Chemicals. "This expansion will allow us to build on our strong presence in numerous organic peroxide market segments, particularly in PVC, acrylics and thermoset resins."

Over the last three years, the Polymer Chemistry business has invested more than EUR100 million to better serve its customers in the polymer industry, upgrading technologies, increasing capacity, and repositioning its global manufacturing footprint at sites in Mexico, the Netherlands, Belgium, China, Italy, Brazil, and the US.

Werner Fuhrmann, CEO of AkzoNobel Specialty Chemicals, added that the latest project also demonstrates the company’s commitment to the Indian market and supports the country’s efforts to strengthen its manufacturing sector through increased investment from global organizations. The company is also investing in a monochloroacetic acid project in a joint arrangement with Atul in Gujarat, due to start production in 2019.

MRC

MOSCOW (MRC) -- Pak-Arab Refinery Ltd (PARCO) has announced the award to TechnipFMC of a Project Management Consultancy (PMC) services contract to carry out the management of pre-EPC activities for a grassroot, fully integrated, deep conversion refinery to be constructed at Hub near Karachi, Pakistan, as per Hydrocarbonprocessing.

The project will be managed and operated by a wholly-owned subsidiary, PARCO Coastal Refinery Limited (PCRL). When completed the facilities will comprise a modern, deep conversion refinery with a capacity of 250,000 barrels per day, supported by associated marine loading facilities. It will be Pakistan’s largest refinery and serve the rapidly growing domestic markets for refined products.

The agreement was signed by Mr. Tariq Rizavi, Chief Executive Officer of PCRL, and Mr. Riccardo Moizo, Senior Vice President – Project Management Consultancy of TechnipFMC.

Mr. Sikandar Sultan Raja, Secretary Petroleum Division and Chairman PCRL, said, “Given the rapidly increasing energy and fuel demand of Pakistan, this project is of great importance to improve the fuel supply situation and will support continued economic growth of the country."

“This multi-billion dollar joint-venture project will further strengthen the relationship between our two brotherly countries. We believe, as the largest industrial project in Pakistan, it will deliver significant value for all stakeholders and provide numerous socio-economic benefits for the country”, said Mr. Khalifa Al Suwaidi, Executive Director – Refining & Petrochemicals, Mubadala Investment Company and Vice Chairman PCRL.

“We understand the strategic importance of the long-term investment that PARCO is undertaking and are proud to be part of this project, which will help meet the fuel requirements of the country and contribute to the growth of PARCO and Pakistan”, said Mr. Riccardo Moizo, Senior Vice President TechnipFMC Project Management Consultancy.

PARCO is a 60:40 joint venture between the Government of Pakistan and Emirate of Abu Dhabi, through Mubadala Investment Company. PARCO is a fully integrated energy business engaged in oil refining, oil pipeline operations, and marketing of petroleum products. It has developed a track record of delivering successfully major investment projects.

MRC

MOSCOW (MRC) -- Fujian Refinery & Petrochemical Company Ltd (FREP) is in plans to take off-stream its cracker for maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company has schedule to shut the cracker in end-November 2018. The planned shutdown is expected to remain in force for around 7 weeks.

Located in Fujian province of China, the cracker has an ethylene production capacity of 1.1 million mt/year and a propylene production capacity of 550,000 mt/year.

FREP is a joint venture between Fujian Petrochemical Co. (50%), ExxonMobil China Petroleum and Petrochemical Co. (25%) and Saudi Aramco Sino Co. (25%). Fujian Petrochemical is a 50:50 JV between Sinopec and the Fujian provincial government.
MRC

MOSCOW (MRC) -- The regular export trades for polypropylene (PP) were held at the State Commodity and Raw Materials Exchange of Turkmenistan on Monday. 20,500 tonnes of PP were sold during one trading days, according to ICIS-MRC Price report.

20,500 tonnes of PP were put up for auction in the export trades at the State Commodity and Raw Materials Exchange of Turkmenistan on 21 May. Buying activity was quite high in the trades partially because of lower starting prices.

Export PP quantities (25,000 tonnes) were put up for auction at the State Commodity and Raw Materials Exchange of Turkmenistan back on 8 May, but high starting prices (USD1,150/tonne FCA/FOB) and long delivery dates (6 months) hampered demand. Only 4,500 tonnes of PP were sold during the several trading sessions.

The starting prices dropped in the trades on 21 May, and trades participants resumed purchases of PP. Deals were done at USD1,100/tonne FCA/FOB Turkmenbashi port with shipments within 8 months from the date of contracting.
MRC