Celanese completes senior unsecured notes offering

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has announced that its subsidiary, Celanese US Holdings LLC, has completed its registered offering of EUR500 million of 2.125 percent Senior Notes due 2027, as per the company's press release.

The Notes are guaranteed on a senior unsecured basis by the company and certain Celanese domestic subsidiaries. Proceeds from the notes were primarily used to refinance an existing term loan maturing in 2021.

"This transaction extends our debt maturity profile and reduces our interest expense at the same time. We continue to grow earnings and cash flow while also improving the strength of our balance sheet," said Scott Richardson, Senior Vice President and Chief Financial Officer.

As MRC informed earlier, Celanese Corporation increased November list and off-list selling prices for Ateva EVA polymers in Asia and the Americas. The price increases below were effective for orders shipped on or after November 1, 2018, or as contracts otherwise allow, and were incremental to any previously announced increases. Thus, the company's EVA prices went up by USD110/mt for Asia, by USD0.05/mt - for USA & Canada and by USD110/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.

Jiangsu Honggang Petrochemical to utilize INVISTA latest P8 technology for new PTA line

MOSCOW (MRC) -- INVISTA’s technology and licensing group, INVISTA Performance Technologies (IPT), and Jiangsu Honggang Petrochemical Co., Ltd. (Honggang) have reached an agreement for the licensing of INVISTA’s latest purified terephthalic acid (PTA) process technology, as per Hydrocarbonprocessing.

This is the first time that INVISTA and Honggang would be collaborating to build state of the art PTA assets; a further recognition by the PTA industry of the many technology and schedule advantages which INVISTA delivers for its customers.

Honggang will utilize INVISTA’s P8 PTA technology at a scale of 2.4 million metric tonnes per year. Since 2012 INVISTA has licensed nearly 21 million tonnes of PTA capacity, representing almost two-thirds of the license capacity awarded during this period. Of this capacity, 70% would be based upon INVISTA’s industry-leading P8 PTA technology, designed to deliver long term value for our many new and returning customers.

A kick-off meeting was successfully held in the week of Oct 8, 2018. The targeted project start-up date would be in Q4, 2020.

As MRC wrote before, in May 2018, IPT announced the success of its latest P8 PTA technology deployed on Jiaxing Petrochemical’s second PTA Line. Started up in record time in December 2017, the plant is now consistently operating at 100 percent design rate with a variable cost performance better than the target, firmly establishing Jiaxing Petrochemical’s second PTA Line as the global leader in terms of raw material and utility consumptions.

Invista is one of the world's largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. With a business presence in over 20 countries, Invista's global businesses deliver exceptional value for their customers through technology innovations, market insights and a powerful portfolio of global trademarks.

Canadian Alberta boosts incentives for new petrochemical plants

MOSCOW (MRC) -- Alberta said that it will double its incentives for companies developing new plants to make petrochemical products, as the Western Canadian province seeks to diversify its economy beyond crude extraction and export, reported Reuters.

The province will now provide royalty credits worth CD2.1 billion (USD1.6 billion), up from earlier commitments totaling CD1.1 billion, to projects that convert natural gas and oil into value added products like gasoline, fertilizer and plastics.

Alberta said it was expanding the program after receiving 23 applications from Canadian and international companies for the incentive program, representing CD60.2 billion in potential investment in the province.

"It sends a clear signal that companies from around the world want to invest in Alberta," said Margaret McCuaig-Boyd, Minister of Energy, in a statement. "We need to put our foot on the gas pedal."

The province has been struggling with sagging oil and gas prices, as rising crude output has outstripped existing pipeline takeaway capacity, while gas production that used to be sold into the Northeastern United States has been displaced by expanding US supplies.

In Alberta, most petrochemical upgrading uses natural gas byproducts like ethane, propane and butane.

The province first launched the petrochemical incentives in 2016. Two projects, including Inter Pipeline Ltd’s (IPL.TO) CD3.5 billion petrochemical plant near Edmonton, were approved to share the original CD500 million in royalty credits. It announced the second round earlier this year.

Alberta also said it would double its support for petrochemical feedstock plants, which provide the raw materials for petrochemical upgrading.

As MRC informed before, in December 2017, Inter Pipeline Ltd. announced that its board of directors had authorized the construction of a world-scale integrated propane dehydrogenation (PDH) and polypropylene (PP) plant. The facilities, collectively referred to as the Heartland Petrochemical Complex, are estimated to cost USD3.5 B in aggregate and will be located in Strathcona County, Alberta near Inter Pipeline’s Redwater Olefinic Fractionator.

French union seeks oil refinery shutdown as pay strike extended

MOSCOW (MRC) -- Oil industry workers were on strike for a third day at four of France’s seven refineries and unions urged employees to step up blockades to force the plants to halt production, reported Reuters.

Support for continued action came after unions rejected on Thursday a 1.5 percent salary increase offer by oil industry federation UFIP, saying it was below the French inflation rate.

A spokesman for UFIP said talks to resolve the dispute had ended late on Thursday without agreement.

The CGT and fellow hard-left union FO have called on striking workers to step up blockades of refineries and fuel depots so companies are faced with supply shortages.

Thierry Defresne of the CGT union told Reuters that Total’s Grandpuits refinery south of Paris, one of the refineries where workers remain on strike, was completely blocked and only had enough crude to continue functioning until Sunday midday.

But a Total spokeswoman said France’s CIM oil storage and dispatch services company, which supplies crude to refineries operated by Total and Exxon, was working normally.

"Total denies the fact that the Grandpuits refinery will run out of crude, forcing a shutdown," she said, although she said outbound of deliveries of fuel from Grandpuits were blocked.

Some CIM employees staged a brief walk out on Thursday in solidarity with the striking refinery workers but they resumed work later in the day.

The Total spokeswoman said deliveries of fuel the firm’s Donges refinery on the west coast had resumed, while she said only one of Total’s fuel depots, La Mede in the south, was blocked.

Workers at Donges refinery and at Exxon Mobil Corp’s Fos-sur-Mer refinery in the south voted to suspend their strike action pending salary talks, the CGT’s Defresne said.

He said workers were still striking at Total’s Grandpuits, Gonfreville and Feyzin refineries, along with Ineos’ Lavera refinery.

The strike over pay and bonuses adds to challenges facing fuel companies, which are also facing protests from the "yellow vest" movement of citizens who oppose higher fuel taxes and have sporadically blockaded oil depots this week.

UFIP said some petrol stations were experiencing minor supply issues but there were no widespread fuel shortages.

Siemens equipment selected for billion-dollar crude flexibility project with ADNOC Refining in UAE

MOSCOW (MRC) -- Samsung Engineering and the Chicago Bridge & Iron Company (CB&I) - a McDermott International company - has recently selected Siemens to provide 19 process reciprocating compressors for ADNOC Refining’s crude flexibility project at Ruwais Refinery-West, as per Hydrocarbonprocessing.

Samsung Engineering and CB&I will provide EPC services to increase the refinery’s crude processing flexibility, enabling the site to process up to 420,000 barrels of oil per day of the local crude grade known as Upper Zakum, which is found offshore. The upgrade will improve the value of each barrel of oil and allow ADNOC to export more of its main onshore, lighter-grade Murban crude.

Project commissioning is expected in 2022.

Siemens will provide two 2HSE-2 net-gas reciprocating compressors; two 2HHE-VG-1 reciprocating compressors; three 2HSE-1 NL hydrogen-recycle reciprocating compressors; four 4HHE-VB off-gas reciprocating compressors; and eight 4BDC-18H3 make-up hydrogen reciprocating compressors. These API 618 process reciprocating compressors are known for their rugged design, high reliability and flexible operating range. The compressors are supplemented with a pipeline cylinder design that incorporates the company’s legacy know-how with the latest advances in design practices, materials, valves, and capacity control.

Siemens’ Dresser-Rand process reciprocating compressors are available with up to 10 crank throws, as single-throw or balanced-opposed configurations. Each compressor is custom engineered to meet customers’ specific operating requirements.

"Our design flexibility, ability to supply everything from a single source, advanced compressor technology, and competitive pricing were critical to being selected for this mega-project," said Executive Vice President New Equipment Solutions and Corporate Account Management for Siemens Oil and Gas, Matthew Chinn. "Our rugged, highly efficient compressors will help ADNOC Refining increase the economic efficiency of its operations and expand flexibility to process up to 420,000 barrels per day of another crude.

As MRC reported earlier, in May 2017, Abu Dhabi National Oil Company (Adnoc) announced that it would work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses.