ADNOC completes commissioning of specialized coker unit

MOSCOW (MRC) -- ADNOC Refining, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has announced it has successfully completed the commissioning of a specialized coker unit, as part of its Carbon Black and Coker Project, as per Hydrocarbonprocessing.

With this, ADNOC will extract the maximum value from ‘bottom-of-the-barrel’ heavy oils and slurry, as it delivers on its aggressive Downstream strategy.

ADNOC’s Carbon Black & Coker Project incorporates a coker, known in the oil and gas industry as a ‘delayed coker’, that will allow ADNOC Refining to recover highly specialized and valuable grades of carbon black and calcined coke. Not only will it create higher value from what would otherwise be used for low value fuel oil, but both products are essential to industrial processes within ADNOC subsidiaries and other UAE industries, potentially removing the need to import costly raw materials.

Increasing the flexibility of ADNOC’s refining assets to stretch the value of every barrel of oil – and produce additional feedstocks and additives for the petrochemical industry - is a key pillar of ADNOC’s Downstream expansion strategy, announced at its Downstream Investment Forum earlier this year. The strategy will see ADNOC become a world-class producer, supplier and trader of refined and petrochemical products, as it focuses on growth markets in Asia, including China.

ADNOC’s multi-billion-dirham Downstream investment program will see the company’s refining capacity increase by more than 65%, or 600,000 bpd, by 2025, through the addition of a third refinery, creating a total capacity of 1.5 million barrels per day (mbpd). The new refinery will significantly increase the capability, flexibility and output of Abu Dhabi’s refining operations by adding to the range of crudes that can be processed. ADNOC also plans to build one of the world’s largest mixed feed crackers, which will enable it to produce additional feedstocks and additives for the petrochemicals industry.

Abdulaziz AlHajri, Director of ADNOC’s Downstream Directorate, said: "At the heart of our Downstream strategy is an AED 165 billion (US USD45 billion) investment, over the next five years, that will create the world’s largest integrated refining and petrochemicals hub in Ruwais, where ADNOC will convert 20% of its crude to chemicals, tripling petrochemical production capacity to 14.4 million tons per year, by 2025. In parallel, ADNOC intends to build an international, integrated Downstream presence, including securing additional crude refining capacity in growth markets."

Jasem Ali Al Sayegh, CEO of ADNOC Refining, said: "We are delighted to introduce technology that extracts more value from our downstream operations. The successful commissioning of the coker project, along with the production of the first Green coke created in the UAE, will improve ADNOC Refining’s margins by maximizing value from every barrel of crude oil that we refine. By working with local petrochemicals and aluminum industries, and engaging new local and international customers for these high value products, we will deliver greater value to ADNOC and more broadly to the UAE economy."

Through the Carbon Black & Coker Project, ADNOC Refining can produce 40,600 tons of two different grades of Carbon black per year, and 430,000 tons of high value anode grade calcined coke. Borouge, a joint venture between ADNOC and Borealis, makes extensive use of special carbon black grades across a range of products, including high-pressure water and gas pipes, steel pipe coatings and linings, and standalone piping. Calcined coke is a key ingredient in the anodes used in the electrolysis process that separates pure aluminum from bauxite ore. The UAE is the world’s sixth-largest aluminum producer, accounting for over 50 percent of the Gulf’s aluminum production, with annual production of 2.6 million metric tons in 2017.

As MRC wrote previously, in July 2017, ADNOC and Borealis signed a framework agreement, under which the companies will advance two key projects that will expand both ADNOC and Borealis downstream petrochemicals business and support the delivery of ADNOC’s integrated smart growth and partnership strategy.
MRC

MOSCOW (MRC) -- Refineries in the U.S. Gulf Coast states of Louisiana and Mississippi made preparations on Monday for Tropical Storm Gordon to come ashore late Tuesday, reported Reuters.

No refinery production has been shut due to the storm, but the plants were securing loose items to prevent damage from the expected 50-60 mile per hour (80-96 kph) winds and determining necessary staffing.

In offshore production areas, there have been no reports of platforms or rigs being shut or workers being evacuated as Gordon crossed the tip of Florida’s peninsula on Monday, heading northwest over the Gulf of Mexico.

Production levels at offshore facilities operated by Chevron Corp in the Gulf of Mexico remained at normal levels on Monday, said company spokeswoman Veronica Flores-Paniagua.

Chevron also said on Monday staff at its 352,000 barrel per day (bpd) refinery at Pascagoula, Mississippi, were monitoring the storm carefully and preparing the plant for wind and rain. The Pascagoula refinery is closest to the landfall location currently forecast for Gordon.

Royal Dutch Shell Plc plans to increase staffing at its 218,200 bpd Norco, Louisiana, refinery west of New Orleans, as it prepares the refinery for high winds, said sources familiar with plant operations.

Valero Energy Corp was also readying its 125,000 bpd Meraux, Louisiana, refinery on the east side of New Orleans for the storm’s winds, said sources familiar with plant operations.

The Gulf of Mexico is home to 17 percent of US crude oil and 5 percent of natural gas output daily, according to the US Energy Information Administration.

More than 45 percent of the nation’s refining capacity is located along the US Gulf Coast, which also is home to 51 percent of total US natural gas processing capability.
MRC

MOSCOW (MRC) -- The International Rubber Study Group (IRSG) has announced that Mitsubishi Corporation Plastics Ltd has joined the IRSG Panel of Associates, as per GV.

Formerly part of the Plastics Department of Mitsubishi Corporation, Mitsubishi Corporation Plastics branched off and became a company in its own right in 1989. The company is a wholly owned subsidiary of Mitsubishi, specialising in plastics and rubber. As the backbone of Mitsubishi Corporation's plastics and rubber business, the company achieves sustainable growth by responding flexibly to the various issues created by changes in the environment, while fulfilling its social responsibilities, said Mitsubishi Corporation Plastics.

The IRSG is an inter-governmental organisation composed of rubber producing and consuming stakeholders. Located in Singapore, IRSG was established in 1944. In order to facilitate the interaction between the industry and the group, a Panel of Associates with members of organisations involved in the rubber industry has been established. As of 1 July 2012, IRSG had 36 member countries and 120 industry members.

As MRC wrote before, in December 2017, Ube Industries, JSR Corp. and Mitsubishi Chemical Corp. (MCC) received European Commission (EC) approval for the planned integration of their acrylonitrile butadiene styrene (ABS) subsidiaries.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

MOSCOW (MRC) - Russian producers raised the prices of high-density polyethylene (HDPE) for supplies in September in the domestic market by Rb3,000-11,000/tonne in comparison with August. The reason for the price rise was the deficit and the devaluation of the rouble, according to ICIS-MRC Price Report.

Traditionally, since mid-summer, there has been a significant increase in demand in the Russian HDPE market, and, together with it, a deficit. The current July was no exception, in the market there was a tight supply of pipe polyethylene.

Consumers of other grades of HDPE also had faced limited supply in August. Local producers can not easily compensate the lack of PE supply, while the weakening of the rouble against the dollar made imports quite expensive.

On the back of the tight supply and devaluation of the rouble, Russian producers raised the prices of HDPE for September in the domestic market by Rb3,000-11,000/tonne. The pipe high density polyethylene (HDPE) segment accounted for the acutest shortage. Key suppliers - Gazprom Neftekhim Salavat and Kazanorgsintez will significantly reduce the supply of pipe PE to the domestic market this month for a number of reasons.

Russian black PE100 price for September grew by Rb10,000/tonne in comparison with the level in August. The situation in film HDPE market is less critical, but there is also a significant price increase for September supplies.
And if in past years the lack of Russian material was compensated by increasing imports, in the current year devaluation of the rouble capped the imports.

Some sellers in second half of August increased the price of film HDPE to Rb115,000-118,000/tonne FCA, including VAT. Russian producers increased September film HDPE prices by Rb5,000-11,000/tonne.

The lowest price growth is seen in the segment of injection moulded HDPE, here the increase was only by Rb3,000/tonne. The demand for this polyethylene is low in the market, while supply is sufficient.
MRC

MOSCOW (MRC) -- Mitsui Chemicals, Inc. has expanded production facilities to manufacture HI-ZEX MILLION™ ultra-high molecular weight polyethylene in response to growing demand for automotive and industrial batteries, said the company on its website.

The additional facilities came online on August 7. This action boosts the company's production capacity for HI-ZEX MILLION™ by about 15% to 8,500 tons per year.

Mitsui Chemicals developed HI-ZEX MILLION™ through application of the company’s proprietary technology in catalysts and processes, giving this ultra-high molecular weight polyethylene an average molecular weight of up to 6 million. Due to the material's excellent chemical resistance, abrasion resistance, impact resistance and self-lubrication, it is used in diverse fields such as lithium-ion battery separators, industrial materials and medical devices.

Furthermore, HI-ZEX MILLION™ retains a consistent shape and provides excellent solubility. With these properties helping to streamline customers' fabrication processes, the product has been certificated Mitsui Chemical's Blue Value.

Positioning HI-ZEX MILLION™ as a strategic product in the key business domain of mobility, Mitsui Chemicals will continue to be proactive in further strengthening and expanding this business.

Mitsui Chemicals Group will continue to strengthen and expand PP compounds business through enhancing production, sales and technology service structure to supply high-quality products, responding to automobile manufacturers’ light-weight needs and their global development.
MRC