McDermott awarded Amiral steam cracker contract in Saudi Arabia

MOSCOW (MRC) -- McDermott International has announced that it has been awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia, according to Chemweek.

Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

As part of the contract, McDermott's Lummus Technology will provide licensing and engineering services for its olefins technology, low-pressure recovery, pygas hydrotreating, CDMtbe methyl tert-butyl ether (MTBE) production technology using catalytic distillation, CDIB back cracking of MTBE to produce high-purity isobutylene and methanol, and BASF’s butadiene extraction process. In addition, Lummus will provide its proprietary Short Residence Time cracking furnaces.

Aramco and Total launched their USD5-billion Amiral JV project in October 2018. The steam cracker will be fed with a mixture of 50% ethane and refinery off-gases. It will supply ethylene to a downstream 1 MMt/y polyethylene manufacturing complex and other petrochemical products. The project aims to fully exploit operational synergies with the adjacent refinery, owned by Satorp, another JV between Aramco and Total. Third-party investors, including Daelim and Ineos, will locate plants at the value park adjacent to Amiral with a combined investment of USD4 billion. A final investment decision is expected in 2021.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Nghi Son Refinery & Petrochemical (NSRP) has undertaken a planned shutdown at its Polypropylene (PP) unit early this week, as per Apic-online.

A Polymerupdate source in Vietnam informed that the company has started turnaround at the unit on October 22, 2019. The unit is expected to remain shut till end-November, 2019.

Located at Nghi son, Vietnam, the PP unit has a production capacity of 400,000 mt/year.

As MRC reported before, NSRP shut its PP unit on 21 June, 2019, owing to technical issues. The exact duration of the shutdown could not be ascertained.

We also remind that Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- The Competition Commission of India has approved Saudi Aramco's planned purchase of a 70% stake in SABIC from the Public Investment Fund of Saudi Arabia in a transaction valued at USD69.1-billion, as per Apic-online.

The acquisition is in line with Aramco's long-term strategy to drive growth through an enhanced downstream portfolio by boosting global participated refining capacity to 8-million to 10-million b/d by 2030 from 4.9-million b/d currently. Of that capacity, 2-million to 3-million b/d will be converted into petrochemical products, Aramco earlier explained.

Aramco said it has no plans to acquire the remaining 30% publicly traded shares in SABIC. An expected closing date was not given.

As MRC informed before, negotiations between Indonesian state energy firm PT Pertamina and Saudi Aramco over a joint venture to upgrade Pertamina’s Cilacap refinery have been extended further until the end of this month.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Arkema successfully brought on stream a new 90,000-ton acrylic acid reactor at its Clear Lake, Texas site to support the growth of its North American customers in the superabsorbents, paints, adhesives and water treatment markets, said the company.

Arkema has successfully brought on stream, and on schedule, a new 90,000-ton per year acrylic acid reactor at its Clear Lake, Texas site.

Equipped with the latest production technologies, this new reactor replaces two decommissioned reactors of 45,000 tons each.

This investment of approximately USD90 million positions Clear Lake as one of the most competitive acrylic acid sites in the United States.

This new capacity will enable the Group to support the growth of its North American customers in markets such as superabsorbents, paints and coatings, adhesives, and polymers for water treatment and enhanced oil and gas recovery. This expansion consolidates Arkema’s position as the second largest producer of acrylic acid in the region.

As it was infromed earlier, Arkema is to divest its Functional Polyolefins business to South Korea’s SK Global Chemical for EUR335m. Functional Polyolefins produces ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

MOSCOW (MRC) -- Brazilian petrochemical company Braskem SA's director Roberto Lopes Pontes Simoes is slated to take over as board chairman, reported InvestorsHub with reference to the company's statement on Monday.

Mr. Simoes's appointment, succeeding fellow Odebrecht SA appointee Marcelo Moses de Oliveira Lyrio, would open up a seat on the board.

A shareholders' meeting to formalize the appointment & elect a new director is yet to be scheduled.

Sao Paulo-based Braskem has been trying to move on from its involvement in a sprawling corruption investigation known as Car Wash that enmeshed its owners: Brazilian construction conglomerate Odebrecht, the controlling shareholder, and Brazilian oil company Petroleo Brasileiro SA, or Petrobras.

Braskem's American depositary receipts are expected to resume trading on the New York Stock Exchange under its old ticker BAK this week.

The company's ADRs had been trading in New York over the counter since the company failed to meet a deadline to file annual financial disclosure forms with the Securities and Exchange Commission. Braskem has since filed the forms and remediated a series of material weaknesses, including in its anti-corruption compliance program and controls and so-called "tone at the top" shortcomings.

Braskem reported a profit of RD2.87 billion (USD740.2 million) for 2018, compared with RD3.92 million for 2017 and a net loss of RD729.2 million for 2016, according to securities filings.

Net revenue, meanwhile, fell to RD11.57 billion (USD2.99 billion) in 2018 from RD13.08 billion in 2017 and RD12.68 billion in 2016.

In the most recent financial forms filed with the SEC, Braskem noted the possibility of a change in control, given Odebrecht's bankruptcy filing and its attempt to sell its Braskem stake to petrochemicals giant LyondellBasell Industries NV.

As MRC informed before, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC