SK Gas to invest USD 1.8 billion to build new power/PP plants in Ulsan city

MOSCOW (MRC) -- South Korea’s leading LPG supplier SK Gas Ltd. (part of SK Corporation) will spend KRW 2.02 trillion (~ USD 1.8 billion) to build a combined-cycle power plant and polypropylene (PP) plant in the southeastern industrial city of Ulsan, South Korea, as per GV.

The Korean company said it had signed a deal with the Ulsan city government and Ulsan Port Authority to build the two facilities and invest in new businesses such as renewable energy and energy storage systems.

The project will help provide stable electricity to Ulsan, one of Korea’s largest industrial clusters for automotive, shipbuilding and petrochemical industries. The port city is also home to SK Gas' LPG storage terminals, which are the world’s largest rock cavern storage facilities with a combined capacity of 270,000 tons. The company said it expects the new plants to play a central role in bolstering its gas chemical business.

The gas-fired combined-cycle power plant will be built on a 142,000 square meter site in Bugok-dong and have a capacity of 1,000 megawatts. It will start construction in 2021 and is due for completion in 2024. The PP manufacturing unit, with a projected capacity of 400,000 t/y, is to be set up in the nearby Yongyeon-dong area on a site of 150,000 square meters. The KRW 500 billion project will be jointly invested by SK Advanced Co., a subsidiary of SK Gas, and Polymirae. The new electricity business is expected to be a KRW 320 billion investment in fuel cells, solar power and other renewable energy technologies as well as energy storage systems.

As MRC informed before, in December 2017, SK Global Chemical (part of SK Corporation) completed its acquisition of Dow Chemical’s packaging product business. SK Global Chemical, the chemical unit of SK Innovation, signed a deal with Dow Chemical to acquire the US chemical firm’s polyvinylidene chloride (PVDC) unit in October, 2017. PVDC is used for clear film packaging including plastic food wrap.

SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.
MRC

Afipsky oil refinery halted for maintenance on Oct 7-16

МOSCOW (MRC) - Russia’s Afipsky, a mid-sized private oil refiner, has suspended oil refining to carry out maintenance of its two crude units from Oct. 6-17, data from the country’s energy ministry shows, as per Reuters.

In January-August, Afipsky refined 3.871 million tonnes of oil, producing gasoline, diesel and some other oil products, of which some were exported to Europe.

As it was written earlier, in March 2017, NefteGazIndustriya through project developer China National Chemical Engineering in the Afipsky Oil Refinery Expansion Project at Krasnodar, Russia. Under the deal, CB&I will be responsible for detailed engineering, procurement services, construction management and commissioning services of several process units.

Afipsky Oil Refinery Ltd. produces gas, diesel fuel, and fuel oil. Afipsky Oil Refinery Ltd. was formerly known as Afipsky Oil Refinery and changed its name to Afipsky Oil Refinery Ltd. in January 2002. The company was founded in 1975 and is based in Seversk, Russia. As of June 29, 2010, Afipsky Oil Refinery Ltd. operates as a subsidiary of OOO NefteGazIndustria.
MRC

SK Global resumes LLDPE plant production

MOSCOW (MRC) -- SK Global Chemical has brought on-stream its No.1 linear low density polyethylene (LLDPE) plant, as per Apic-online.

A Polymerupdate source in South Korea informed that the company has resumed operations at the plant on October 11, 2018. The plant was shut for maintenance in end-September, 2018.

Located in Ulsan, South Korea, the No.1 LLDPE plant has a production capacity of 210,000 mt/year.

As MRC reported earlier, in December 2017, SK Global Chemical completed its acquisition of Dow Chemical’s packaging product business. SK Global Chemical, the chemical unit of SK Innovation, signed a deal with Dow Chemical to acquire the US chemical firm’s polyvinylidene chloride (PVDC) unit last October. PVDC is used for clear film packaging including plastic food wrap. With the deal completed, SK Global Chemical now has full control of properties previously owned by Dow Chemical. They include Michigan-based facilities, related technologies and intellectual assets, as well as the trademark right to the plastic wrap brand Saran.

SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.
MRC

Traders say U.S. to be big winner of new IMO shipping rules

MOSCOW (MRC) -- The United States is set to be the big winner from new marine fuel rules, trading house Gunvor Group predicted, while rival merchants said the world would not face a shortage of distillates as a result of new rules to cut pollution, as per Reuters.

The UN’s International Maritime Organisation (IMO) has set new rules that will ban ships from using fuels with a sulfur content above 0.5 percent from 2020, compared with 3.5 percent now, unless they are equipped with so-called scrubbers to clean up sulfur emissions.

The industry has been expecting a sharp rise in demand for cleaner distillates, mainly diesel, at the expense of fuel oil that would become largely redundant. Gunvor Group Chief Executive Torbjorn Tornqvist said at the Oil & Money conference in London that the switch would certainly create some chaos at first as storage and logistics must deal with a “cocktail of fuel blends” and that the United States would be the major overall winner.

"Crude differentials will reflect the strong differentials between distillates (diesel) and fuel oil we will see the price of heavy crude fall and light sweet rise," Tornqvist said. Heavy sour crudes yield much more fuel oil than light, sweet oil that have a maximum sulfur content of 0.5 percent, unless a refinery has advanced equipment.

"The big winner in the IMO is actually the United States. They have the most advanced refining system in the world and will take advantage of importing more heavy crude oil and they will export light crude oil that will get a bigger premium," he said. Vitol Chairman Ian Taylor said he did not expect a major glut of high sulfur fuel oil as refiners were adding units.

"So many units have been prepared to reduce it and there’s so little high sulfur fuel left already," Taylor said. Glencore’s head of oil Alex Beard echoed the remarks as scrubbers, add-on units to ship to clean out pollutants, would still allow ships to mop up some fuel oil.

"Distillates will clearly play a very large role in shipping but what is becoming clear is that the world can cope, so it won’t be the crisis that people were thinking a year or two ago," he said. "Our estimate is that by January 2020, something like 25 percent of the world’s high sulfur fuel demand today will be from ships that have scrubbers and that will grow through 2020."
MRC

Huntsman increases production capacity for PU catalysts in Hungary

MOSCOW (MRC) -- Huntsman has announced that its Performance Products division has completed an expansion of speciality amines manufacturing capacity at its facility in Petfurdo, Hungary, as per GV.

According to the company, this expansion increases its existing polyurethane catalyst production capacity globally by over 20 %. The amine catalysts are sold globally under the name Jeffcat and are used, e.g., in the production of foam automobile seats, mattresses, and spray insulation.

"This capacity expansion leverages our strong manufacturing and technology base, which is already one of the widest in-house speciality amines manufacturing capabilities in the industry," said Gwen Fonck, Vice President, Huntsman Performance Products, Europe, Middle East & Africa. "We have consistently improved our capability and extended the product range manufactured at our Petfurdo location over the last ten years."

As MRC informed before, in March 2018, Huntsman Corporation announced the acquisition of Demilec, one of North America’s leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners, Inc.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than USD8 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within its four distinct business divisions.
MRC