Bangkok Polyethylene to shut LDPE plant in Thailand

MOSCOW (MRC) -- Bangkok Polyethylene, a PTT Global Chemical (PTTGC) subsidiary, is likely to undertake a planned shutdown at its low density polyethylene (LDPE) plant, as per Apic-online.

A Polymerupdate source in Thailand informed that the company has schedule to shut the plant in early-September 2018. The planned shutdown is expected to remain in force for around two weeks.

Located at Map Ta Phut in Thailand, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, PTT startув commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, will increase July list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas, as per the company's press release.

The price increases below will be effective for orders shipped on or after July 1, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices will rise, as follows:

- by EUR100/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD110/mt - for Mexico & South America.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on 1 June, 2018, as follows:

- by EUR150/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD150/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC

May total PE production grew to 156,600 tonnes, whereas this figure was 151,800 tonnes a month earlier. The increased production was caused by the end of maintenance at Kazanorgsintez's low density polyethylene (LDPE) production capacities. Overall PE output reached 774,800 tonnes in January-May 2018, compared to 742,900 tonnes a year earlier. Production of all PE grades rose, with linear low density polyethylene (LLDPE) accounting for the greatest increase.

The structure of PE production by grades looked the following way over the stated period.

May total output of high density polyethylene (HDPE) fell to 86,800 tonnes from 92,500 tonnes a month earlier, Nizhnekamskneftekhim resumed LLDPE production in the last month of spring after a short switch-over to HDPE production. Russian plants' overall HDPE output reached 414,200 tonnes in the first five months of 2018, up by 1.8% year on year.

Last month's total LDPE production was slightly over 55,100 tonnes versus 54,900 tonnes in April, Kazanorgsintez had resumed production at some of its capacities by mid-May after a scheduled shutdown for maintenance. Total LDPE production exceeded 285,800 tonnes over the stated period, up by 3% year on year.

Overall LLDPE output exceeded 77,000 tonnes in the first five months of 2018, up by almost a quarter year on year.

MRC

MOSCOW (MRC) -- Neste Oyj and Borealis Polymers Oy, in co-operation with the energy companies Fortum Power and Heat Oy, Helen Oy, Vantaan Energia Oy and Porvoon Energia Oy - Borga Energi Ab, will conduct a preliminary study on recovering and utilizing excess heat generated at the Neste and Borealis industrial manufacturing facilities in Kilpilahti, as per Neste's press release.

The study will focus on the technical and economic impacts of recovering excess heat at these facilities and recirculating it into district heating systems in Porvoo and the Helsinki metropolitan region.

The two facilities located in Kilpilahti produce a significant amount of low-temperature excess heat, but no cost-effective solution exists to recirculate the energy. As technologies keep developing and companies are looking for solutions to reduce the carbon footprint of their heat generation, it is the right time to research the feasibility of heat recovery.

The preliminary study will be conducted by Neste Engineering Solutions Oy in co-operation with Gaia Consulting Oy, and the two parties expect to release study results in spring 2019.

As MRC wrote before, in March 2018, Borealis and United Chemical Company LLP (UCC) signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan.

Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. The company's wide range of renewable products enable our customers to reduce climate emissions. The company is the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. It is also a technologically advanced refiner of high-quality oil products.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its head office in Vienna, Austria, the company currently has around 6,600 employees and operates in over 120 countries. Borealis generated EUR 7.5 billion in sales revenue and a net profit of EUR 1,095 million in 2017. Mubadala, through its holding company, owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
MRC

MOSCOW (MRC) -- The agreement defines basic terms and conditions of a 20-year contract to be finalized between the parties for the sales and purchase of two million tonnes per annum (Mtpa) of LNG, which equals about 2.7 billion cubic meters (bcm) per year of natural gas following regasification, as per Hydrocarbonprocessing.

Cargoes will be supplied starting in 2023 from the Port Arthur LNG facility being developed in Jefferson County, Texas. The documents were signed today during the current World Gas Conference in Washington, D.C.

"The Port Arthur liquefaction project is one of three major LNG export projects Sempra Energy is developing in North America to meet the demand of global markets, including Poland," said Joseph A. Householder, president and chief operating officer of Sempra Energy. "This agreement along with PGNiG's financial strength and experience in delivering natural gas to customers are important to advancing the Port Arthur liquefaction project."

"We are pleased to have PGNiG as a foundation customer of the Port Arthur LNG project," said Octavio Simoes, president of Sempra LNG & Midstream, a subsidiary company of Sempra Energy. "We look forward to working with PGNiG to finalize the LNG supply agreement that will provide low-cost, flexible and reliable U.S. LNG to PGNiG and bring competitively priced natural gas to the Polish and other European gas markets."

"The signed agreement paves the way for finalizing a contract that will help PGNiG to develop our LNG portfolio in the near future," commented Piotr Wozniak, CEO and President of the Management Board at PGNiG. "Starting in 2023, LNG deliveries from the Port Arthur terminal can not only help us to further diversify our import structure, but will also help us in strengthening PGNiG's activities on the international LNG market. PGNiG is constantly looking for market offers to purchase natural gas at competitive prices. We are pleased to be able to cooperate with such an experienced partner as Sempra Energy."

Deliveries have the flexibility to allow for further trading by PGNiG on international markets and are contemplated to be supplied on a free-on-board (FOB) basis whereby PGNiG is responsible for transport of the cargoes from Port Arthur LNG.

Today's announcement represents another step in the ongoing development of the Port Arthur LNG liquefaction project. In 2017, Sempra LNG & Midstream signed a Memorandum of Understanding (MOU) with Korea Gas Corporation (KOGAS) providing a framework for cooperation, including engineering and construction, operations, equity ownership in the Port Arthur LNG liquefaction project, and offtake of LNG. The ultimate participation of KOGAS and PGNiG in the project remains subject to finalization of definitive agreements.

The Port Arthur LNG liquefaction facility is planned to export approximately 11 Mtpa of LNG starting from 2023. Last week Bechtel was selected by Port Arthur LNG to be the engineering, procurement, construction and commissioning (EPC) contractor. Development of the Port Arthur LNG liquefaction project is contingent upon obtaining customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.

As MRC wrote previously, in April 2018, ExxonMobil said that production ofLNG had safely resumed at the PNG LNG project in Papua New Guinea following a temporary shutdown of operations after a severe earthquake occurred in the region on Feb. 26.
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