Sinopec Guangzhou completes maintenance at Guangzhou cracker

MOSCOW (MRC) -- Sinopec Guangzhou Petrochemical, part of China's petrochemical giant - Sinopec, has resumed operations at its cracker following a turnaround, according to Apic-online.

A Polymerupdate source in China, informed that, the company has restarted the cracker on December 5, 2019. The cracker was shut for maintenance on October 12, 2019.

Located in the Guangzhou province of China, the cracker has an ethylene production capacity of 260,000 mt/year and propylene production capacity of 150,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

China Petroleum & Chemical Corporation or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. Sinopec's business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.
MRC

MEGlobal announces ACP for January 2020

MOSCOW (MRC) -- MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD720/MT CFR Asian main ports for arrival January 2020, said the company.

The January 2020 ACP reflects the short term supply/demand situation in the Asian market.

As it was written earlier, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD710/MT CFR Asian main ports for arrival December 2019. The December 2019 ACP reflects the short term supply/demand situation in the Asian market.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

As per ICIS-MRC Price Report, Ecopet, the largest producer of polyethylene terephthalate (PET) in Russia and Eastern Europe, last week reduced the spot price of PET chips by Rb2,000/tonnes. Producer's average spot prices fell to Rb80,000-83,000/tonne CPT Kiev, including VAT. The interest of buyers has grown in the spot market in the last decade of November.

MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG). Established in July 2004, the company is a joint venture between The Dow Chemical Company and Petrochemical Industries Company of Kuwait and is headquartered in Dubai, United Arab Emirates. With approximately 200 employees worldwide, MEGlobal serves customers around the world, and has production facilities in Fort Saskatchewan and Prentiss, Alberta, Canada.
MRC

Sasol to restart its cracker in Lake Charles, Louisiana in late December

MOSCOW (MRC) -- Petrochemical producer Sasol's ethane cracker in Lake Charles, Louisiana, will restart from planned maintenance work in the latter part of December, a spokeswoman for the company said in an email to S&P Global.

"On November 30, we shut down the LCCP ethane cracker to begin replacing its acetylene reactor catalysts, as we announced in October," the spokeswoman said.

The unit is expected to have a nameplate capacity of 1.5 million mt/year in 2020, according to the company's website.

The maintenance began November 30.

As MRC wrote before, Sasol announced that its world-scale US ethane cracker reached beneficial operation on 27 August 2019. Sasol’s new cracker, the heart of its Lake Charles Chemicals Project (LCCP), is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at the company's Lake Charles multi-asset site.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

Shandong Binhua selects Honeywell technology for on-purpose propylene production in China

MOSCOW (MRC) -- Honeywell announced today that Shandong Binhua New Material Co., Ltd. will use Honeywell UOP’s C3 Oleflex technology to produce 600,000 metric tons per year of polymer-grade propylene for a proposed plant in China, as per the company's press release.

Honeywell UOP, a leading technology provider for the oil and gas industry, will provide services, equipment, catalysts and adsorbents for the Shandong plant. The project marks the 25th award for C3 Oleflex technology in China, which has seen exponential growth and demand for propylene, a key plastics ingredient.

Since 2011, most dehydrogenation projects globally have been based on UOP technology, including projects for propane (C3), isobutane (iC4) and mixed C3/ iC4 service. Global production capacity of propylene from Oleflex technology currently stands at approximately 7.8 million metric tons per year.

"The increasing consumption of plastics globally has generated substantial demand for propylene," said Bryan Glover, vice president and general manager, Honeywell UOP’s Petrochemicals and Refining Technologies. "Our Oleflex technology will help Shandong Binhua, a regional leader in propylene oxide production, meet the demand for propylene derivatives in China by creating a consistent supply of on-purpose propylene."

Honeywell UOP’s C3 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene and is designed to have a lower cash cost of production and higher return on investment compared to competing dehydrogenation technologies. Oleflex’s low-energy consumption, low-emissions and fully recyclable, platinum-alumina-based catalyst system also helps minimize impact on the environment. The independent reactor and regeneration design helps maximize operating flexibility and onstream reliability.

Shandong Binhua New Material Co., Ltd. is a subsidiary of Befar Group Co., Ltd. Located in Binzhou in Shandong Province, Befar has more than 50 years of experience in caustic soda and propylene oxide production, and is one of China’s most influential oil additive suppliers.

As MRC informed earlier, in September 2019, Honeywell announced that Zhejiang Satellite Petrochemical Co., Ltd. is using Honeywell UOP’s C3 OleflexTM technology to produce 450 000 tpy of polymer-grade propylene for a new petrochemicals complex in China. This is the second C3 Oleflex unit now operating with Satellite. Honeywell UOP delivered Satellite’s first Oleflex unit in 2014.

Propylene is the main feedstock for producing polyprolypele (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Honeywell UOP is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. Honeywell UOP is part of Honeywell’s Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions, a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.
MRC

PVC production in Russia up by 3% in Jan-Nov 2019

MOSCOW (MRC) -- Russia's overall production of polyvinyl chloride (PVC) reached 893,600 tonnes in the first eleven months of 2019, up by 3% year on year. At the same time, not all Russian producers raised their output of HDPE, according to MRC's ScanPlast report.

November total production of unmixed PVC was about 84,600 tonnes versus 88,500 tonnes a month earlier, SayanskKhimPlast and Kaustik Volgograd decreased their capacity utilisation last month. Overall PVC production reached 893,600 tonnes in January-November 2019, compared to 871,000 tonnes a year earlier. All plants raised their output, except for Kaustik Volgograd.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (JV of SIBUR and SolVin) produced about 30,200 tonnes of PVC in November, with emulsion polyvinyl chloride (EPVC) accounting for 2,700 tonnes, compared to 29,500 tonnes a month earlier. Overall PVC production at RusVinyl was 316,700 tonnes in January-November 2019, up by 4% year on year. Such a significant increase in production indicators was primarily due to the absence of long scheduled maintenance works in the current year, which was traditionally carried out in April - May.

SayanskKhimPlast produced 25,600 tonnes of suspension PVC (SPVC) last month, whereas this figure was 27,800 tonnes in October. The Sayansk plant managed to produce about 266,600 tonnes of resin in January-November, compared to 251,600 tonnes a year earlier.

Baskhir Soda Company produced about 23,000 tonnes of SPVC in November versus 23,800 tonnes a month earlier. Total SPVC production at Baskhir Soda Company increased to 239,100 tonnes in the first eleven months of this year, compared to 229,700 tonnes in the same period in 2018.

Kaustik (Volgograd) produced about 5,800 tonnes of SPVC in November, compared with 7,400 tonnes in October. The decline in production in November was due to work to modernise production. The plant's overall output of PVC exceeded 71,100 tonnes in the first ten months of 2019 versus 84,500 tonnes a year earlier. The Volgograd's lower production was caused by a shutdown for maintenance in May-June.

MRC