PTT mulls shutdown of LDPE unit in Thailand for maintenance

MOSCOW (MRC) -- Thailand’s PTT Global Chemical Public Co Ltd ((PTTGC) ) is planning to take off-stream its low density polyethylene (LDPE) plant in Map Ta Phut in the first quarter of 2020, reported CommoPlast.

Thus, this plant is expected to be shut in early February, 2020. The planned maintenance is likely to remain in force for around 15 days.

Located at Map Ta Phut in Thailand, the LDPE plant has a capacity of 400,000 mt/year.

As MRC informed before, the company also plans to shut if cracker No. 1 for a turnaround in Q1 2020. This cracker is expected to be taken off-line in late January 2020. The planned maintenance is likely to remain in force for around 40 days. Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 515,000 mt/year and a propylene production capacity of 310,000 mt/year.

According to MRC's ScanPlast report, Russia's October estimated LDPE consumption grew to 54,650 tonnes from 47,980 tonnes a month earlier. Local producers increased significantly their polyethylene (PE) shipments partially due to the reduction in exports. The estimated LDPE consumption in Russia totalled 484,360 tonnes in the first ten months of 2019, up by 9% year on year. Some producers' LDPE exports decreased, whereas imports rose by 19%.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Thailand’s PTT Global Chemical Public Co Ltd still has plans to shut two crackers at its petrochemical complex in Map Ta Phut in January 2020, according to CommoPlast.

The company might take two of its naphtha/mixed feed crackers offline for 35-40 days while there are no planned maintenances at other cracker units. The number 1 and number 2 cracker have a combined capacity of 915,000 tons of ethylene per annum.

Thus, cracker No. 1 with a capacity of 515,000 tonnes of ethylene and 310,000 tonnes of propylene per year is scheduled to be shut for 40-day maintenance in late January, 2020, whereas cracker No. 2 with a capacity of 400,000 tonnes of ethylene and 50,000 tonnes of propylene per year is to be taken off-steam for 35-day turnaround in mid-January, 2020.

As MRC wrote earlier, in 2018, PTTGC conducted a 40-day turnaround at its No. 1 cracker in Map Ta Phut from early September.

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.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Formosa Plastics will not start up its new 1.5 million mt/year cracker and 400,000 mt/year low-density polyethylene plant in Texas by year-end as planned earlier, reported S&P Global with reference to a spokesman's statement Friday.

"We encountered some unexpected delays," spokesman Fred Neske said in an email. "Neither the LDPE nor the cracker plant will be running by the end of the year."

He said the company did not have an estimate of when the plants at Formosa's Point Comfort, Texas, complex would come online. A new 400,000 mt/year high density and linear low-density PE plant at Point Comfort started up in August.

As MRC informed before, Formosa Plastics Corp. Louisiana, a subsidiary of Formosa Plastics Corp. USA, is investing USD332 million to expand its production of polyvinyl chloride (PVC) resin and add production equipment in two other units at the company’s industrial manufacturing site in Baton Rouge, La., on the east bank of the Mississippi River. The project will include installation of new machinery and equipment for the expansion of the PVC resin production unit, expected to result in a 20% increase in production capacity and sales; installation of new machinery and equipment for a halogenated acid production unit for internal use in the production of vinyl chloride monomer; and installation of utilities equipment needed for operations, the Louisiana Economic Development (LED) said. Launch of the new operations is scheduled for late 2021 or early 2022.

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.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- McDermott International said today that it has been awarded a technology contract for Next Wave Energy Partners’ (Houston, Texas) grassroots alkylate production facility, known as Project Traveler, at Pasadena, Texas, reported Chemweek.

McDermott's Lummus Technology is providing the process design package and license for its ethylene dimerization process. Lummus Technology's proprietary Dimer process converts ethylene to a high-purity butene-2 feed stream ideal for producing an alkylate with a higher-octane value used for blending cleaner-burning gasoline required by the demands of modern and future high-performance engines.

Next Wave Energy announced the project last month. When operational in mid-2022, the facility will have capacity to produce 28,000 bbl/day of alkylate consuming over 540,000 metric tons/year of ethylene feedstock.

As MRC informed before, in late November 2019, McDermott International, Inc. was awarded a sizeable technology contract from Baltic Chemical Company (BCC) and a sizeable Extended Basic Engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). The ethane cracking project is owned by Baltic Chemical Complex LLC, a subsidiary of RusGazDobycha. McDermott's Lummus Technology will provide both the Process Design Package (PDP) Engineering and the license for its olefin production and recovery technology. Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene, representing approximately 40 percent of the world's capacity.

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.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC

MOSCOW (MRC) -- Oil major Shell warned Friday of lower earnings and underwhelming output in the fourth quarter of 2019, weighed down by a weaker economic outlook as well as challenging trading conditions at its gas trading division, adding that it expects impairment charges of up to USD2.3 billion, reported S&P Global.

"Based on the macro outlook, post-tax impairment charges in the range of USD1.7-2.3 billion are expected for the quarter," the company said as it released a partial snapshot of results ahead of its 2019 earnings statement. It did not specify which assets it was referring to.

Shell said it expects its upstream production to range between 2.775 million-2.825 million b/d of oil equivalent in the fourth quarter of 2019, fairly stable compared with the 2.809 million boe/d in the fourth quarter of last year.

The warning does however contrast with the company's previous guidance in October, when it said it expected oil and gas production to return to growth, although at the time it also flagged concerns over the health of the global economy, arguing that it was threatening to delay plans to cut debt and boost shareholder returns.

Integrated gas production will average 920,000-970,000 boe/d, while LNG liquefaction volumes will likely range around 8.8-9.4 million mt, down from Q3 2019 but up from Q4 last year.

Shell said the performance of its LNG trading division is expected to be average, adding it will be down from Q3 2019 but it will be approximately in line with Q2 2019.

The LNG market has been experiencing a supply glut this year, putting pressure on trading margins. Spot gas prices in Asia and Europe have nosedived in 2019 amid a wave of new LNG plants coming onstream and subdued gas demand growth in Asia.

On the downstream side, Shell said its refining margins will be impacted by the continued weak macro environment amid slower oil demand growth.

Refinery availability in Q4 will be down to around 91% and 93% compared with 94% in Q4 2018, while oil products sales will be between 6.5 million-7 million b/d.

"Marketing margins are expected to be lower due to seasonal trends, and weaker compared to the fourth quarter 2018 due to crude price movements impacting retail margins," it added.

Shell also said an additional well write-offs in the range of USD100 million-200 million are expected compared with Q4 2018, although no cash impact is expected.

Amid a weaker macro environment, the major said full-year 2019 capital expenditure will be at the lower end of its USD24 billion-29 billion range.

As MRC wrote previously, in the first week of December 2019, Shell Singapore restarted its naphtha cracker in Bukom Island following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC