Mexicos largest oil refinery shut down due to power outage

MOSCOW (MRC) - Pemex's Salina Cruz refinery shut down due to a power outage and was scheduled to restart operations a day later, a spokesman for state-run oil company said, as per Reuters.

"It's now in the process of starting up again in order to resume operations later today," said a Pemex spokesman who spoke on condition of anonymity in line with company policy.

The Salina Cruz refinery, Pemex's largest, has an installed capacity to process 330,000 barrels of crude oil per day (bpd).

As of June, the facility was processing slightly more than 200,000 bpd of crude, according to Pemex data.

August prices of pipe grade HDPE rose in Russia, shortage remains

MOSCOW (Market Report) -- After a short period of the supply and demand balance in July, the Russian pipe grade high density polyethylene (HDPE) market again became scarce in August. Prices continued their upward trend, according to ICIS-MRC Price report.

A shortage of pipe grade HDPE began to be felt in the Russian market back in June, polyethylene (PE) prices began to rise dynamically because of this factor. Local producers managed to balance the situation in July by increasing their production. In the last summer month, the shortage of pipe grade PE began to be felt again in the market, leading to an increase of Rb2,000-3,000/tonne in the first days.

There was a shortage of both natural pipe grade PE and black PE100 in the market. Many sellers said they limit their current sales, as some producers will significantly reduce their output in September.

Thus, Kazanorgsintez traditionally shuts down its HDPE production capacities for a scheduled turnaround, which lasts for several days, in the second half of September. The Kazan producer is virtually the main supplier of black PE100 to the domestic market.

The plant's customers said Gazprom neftekhim Salavat also intends to significantly cut down its production program for pipe grade PE in September.

Russian consumers virtually have no import alternative, these analogues are significantly more expensive than Russian PE. And it is very risky to make purchases in foreign markets amid instability of the rouble exchange rate against the dollar.

In some cases, prices of natural pipe grade PE reached Rb110,000/tonne CPT Moscow, including VAT, this week. Prices of black PE 100 exceeded Rb116,000/tonne CPT Moscow, including VAT.

Tosoh building logistics center in Japan for chemical products

MOSCOW (MRC) -- Tosoh Logistics Corp., a subsidiary of Tosoh Group, will construct a new specialized chemical logistics warehouse in Shunan City, Yamaguchi Prefecture (harbor district), Japan, according to Apic-online.

The facility, tentatively named Rinkai Logistics Center No. 2, will feature freezing, cooling and heating capabilities. It will be the "largest" integrated logistics warehouse for chemical products in western Japan, and the company's third large-scale logistics warehouse in the Shunan area, Tosoh noted.

Construction will start in January 2019 and completion is scheduled for December 2019. Operations are expected to begin in January 2020.

The project is part of the company's infrastructure upgrades to handle increased volume as it boosts its production capacities to meet increased medium- and long-term demand.

As MRC informed before, in mid-April 2016, Tosoh Corp restarted its 527,000 tpa naphtha cracker in Yokkaichi, central Japan after planned maintenance, which March 8.

Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh's petrochemical operations supply ethylene, polymers, and polyethylene.

Shell Singapore shutting down steam cracker after burst water pipeline: sources

MOSCOW (MRC) -- Shell Singapore is in the process of shutting down its mixed feed steam cracker in Bukom following a burst water pipeline Monday, as per Apic-online.

The steam cracker is able to produce 960,000 mt/year of ethylene, 540,000 mt/year of propylene and 155,000 mt/year of butadiene. The refinery also produces 230,000 mt/year of benzene.

The sources said Shell was forced to shut down two boilers out of four following a burst pipeline. It is unclear how long the cracker would be down.

We remind that, as MRC wrote before, in March 2018, Shell EP Middle East Holdings B.V. completed the sale of the entire share capital of Shell Iraq B.V (SIBV), which held its 19.6% stake in the West Qurna 1 oil field, for USD406 million, to a subsidiary of ITOCHU Corporation.

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.

TOYO awarded expansion of naphtha cracking furnace project in Japan

MOSCOW (MRC) -- Toyo Engineering Corporation (TOYO, President and CEO Haruo Nagamatsu) was awarded an expansion of naphtha cracking furnaces project from Maruzen Petrochemical Co., Ltd. to increase ethylene production at its Chiba Plant, as per Hydrocarbonprocessing.

TOYO had participated in this project from basic design stage and highly appreciated by the client for optimum design and proposals to emphasize shortest construction period.

Since 1967 when received an order of the third Ethylene Plant at Chiba Plant, TOYO continued to execute various projects of the client for many years. Based on these experiences, TOYO will carry out this project towards completion scheduled in 2020 under the safety-first policy.

As MRC reported earlier, in June 2018, Toyo Engineering Group was awarded a construction project by PT Chandra Asri Petrochemical Tbk (CAP), Indonesia's largest petrochemical company, and its subsidiary PT Petrokimia Butadiene Indonesia (PBI). This project involves the construction of Butene-1 production unit with capacity of 43,000 tons/year and Methyl tert-butyl ether production unit with capacity of 127,000 tons/year commissioned by PBI, as well as an Enclosed Ground Flare with capacity of 220 tons/hour commissioned by CAP. They are to be constructed inside CAP's existing petrochemical complex in Cilegon, Banten, on the western tip of Java,Indonesia.