Chinese Hengyi runs new Brunei refinery near full rates

MOSCOW (MRC) -- China’s Hengyi Petrochemical Co Ltd is operating its new 160,000 barrels per day refinery in Brunei at near full capacity after trial production began in July, two company officials told Reuters.

The plant in Palau Muara Besar is one of four greenfield refineries to begin operations in Asia in 2019. The project includes a one million tonne per year (tpy) aromatics plant and a 500,000-tpy benzene unit.

"Hengyi’s Brunei project is running at almost full capacity," a company spokeswoman said on Thursday.

Earlier this week, a Hengyi executive told Reuters that exports of refined fuels from the plant, including gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG) have been running smoothly.

"Almost all of our LPG exports went to the Philippines due to its geographic proximity. Indonesia is the main client for our gasoline shipments and diesel moved in the region, including Australia," said the executive.

Hengyi’s aviation fuel landed in destinations like Hong Kong and even as far as the west coast of the United States, the executive said, with specifying the volumes of each product.

The company has said the plant will produce nearly a combined 6 million tonnes of gasoline, diesel and aviation fuel a year.

As MRC informed earlier, in November 2019, Hengyi Petrochemical Co Ltd, a joint petrochemical venture between China and Brunei, exported its first cargo of liquefied petroleum gas (LPG) from its newly commissioned refinery in Brunei.

As MRC wrote previously, in September Hengyi Industries produced qualified petrochemical (PC) products at its new refinery and petrochemical complex at Pulau Muara Besar in Brunei. The project includes a 160,000 barrels/d crude oil refinery, a 1 M tonnes/y aromatics facility and a 500,000 tonnes/y benzene unit.

Paraxylene is a raw material for the synthesis of terephthalic acid (TFA) - an intermediate for the production of polyethylene terephthalate (PET).

As per MRC ScanPlast, imports of PET chips into Russia increased by 13% in eleven months of this year compared to the same time a year ago and reached 130,800 tonnes compared to 116,100 tonnes (excluding supplies from Belarus over the past two months). Russia's PET imports almost doubled to 12,300 tonnes in November against 6,300 tonnes in October; last November, material imports amounted to 8,200 tonnes. The share of Chinese material was 78% (9,600 tonnes) in November versus 92% (5,800 tonnes) a month earlier.

Hengyi Industries is a joint venture between China's Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government's Strategic Development Capital Fund. They own 70% and 30% of the shares respectively.
MRC

Dongguan Grand plans to restart PP plant on 16 January

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) is likely to restart its polypropylene (PP) plant following a turnaround, according to Apic-online.

A Polymerupdate source in China informed that the company has planned to resume operations at the plant on January 16, 2020. The plant was shut for maintenance on January 6, 2019.

Located in Guangdong, China, the PP plant comprising two units have a production capacity of 300,000 mt/year each.

As MRC wrote before, the company's 600,000 tons/year PDH unit has been shut since the first week of January due to negative margin.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

Poor margin forced FREP to cut cracker rate

MOSCOW (MRC) -- Fujian Refining & Petrochemical Company (FREP) has reduced the operation rate of their steam cracker by 10-15% due to softer downstream margins, reported CommoPlast with reference to market sources.

Based in Fujian, China, the cracker has an ethylene production capacity of 1.1 million tons/year.

As MRC informed before, FREP last took off-stream its cracker for maintenance in end-October 2018. The plant was shut until 20 December 2018. Located in Fujian province of China, the cracker has an ethylene production capacity of 1.1 million mt/year and a propylene production capacity of 550,000 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 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

FREP is a joint venture between Fujian Petrochemical Co. (50%), ExxonMobil China Petroleum and Petrochemical Co. (25%) and Saudi Aramco Sino Co. (25%). Fujian Petrochemical is a 50:50 JV between Sinopec and the Fujian provincial government.
MRC

BIAXPLEN launches new film grades for self-adhesive labels, confectionery and tobacco packaging

MOSCOW (MRC) -- In 2019, BIAXPLEN partnered with its customers, multinational companies and SIBUR’s R&D centres to develop new films for a number of consumer segments, said the company.

Unique for the Russian market, SOIL (pearl) and STG (transparent) label films are fused directly into polypropylene containers and do not require adhesives. These labels contribute to sustainable development and reduce carbon footprint through better feedstock efficiency and recyclability.

A LOBB film for fully wrapped labelling increases the output of finished (printed) labels by 10% compared to LOBA (standard pearl film for fully wrapped labelling) due to lower weight. The grade has undergone consumer testing and is commercially supplied to key manufacturers of bottled soft drinks.

A new TSHS tobacco film with better thermal shrinkage resistance designed specifically for high-speed packaging equipment helps improve visual properties of the end product.

A HOHG film grade for confectionery can be used to produce resealable packaging for chocolate bars. It retains the product’s consumer properties and complies with the current packaging and food safety requirements.

BIAXPLEN keeps engaging deeply with customers to develop joint innovative products and packaging solutions at SIBUR’s NIOST and PolyLab R&D centres in Tomsk and Skolkovo.

As MRC informed earlier, BIAXPLEN and Manucor will share their best practices in terms of R&D, sales and marketing, production, and technical support. Joining efforts with Manucor’s sales team will result in new opportunities in the European markets for BIAXPLEN. In turn, SIBUR will engage PolyLab, its Skolkovo-based R&D centre, to develop new products. Together, the parties expect to create the leading BOPP film producer in Europe.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

BIAXPLEN is a subsidiary of SIBUR, a petrochemical company, and Russia's largest BOPP film producer. Its capacity amounts to 180 ktpa across five regions, and its products are exported to 27 countries.
MRC

Thyssenkrupp wins PMC services contract for Nayara planned Vadinar petrochemical project

MOSCOW (MRC) -- Thyssenkrupp Industrial Solutions (India) has recently signed a contract with Nayara Energy, under which it will provide project management consultancy (PMC) services for Nayara's new petrochemical project to be built at the site of Nayara's 20-million-t/y Vadinar refinery in India, according to Apic-online.

The USD850-million project, which will mark Nayara's entry into the petrochemical sector, includes a 450,000-t/y propylene recovery unit, a 450,000-t/y Unipol polypropylene (PP) plant, a 200,000-t/y methyl tertiary butyl ether unit and associated off-sites and utility facilities.

PCN earlier said the project was expected to be completed in 2022.

"Nayara Energy's endeavors in the petrochemical sector are aligned towards our larger aspiration to play a vital role in India's development story," noted Nayara Energy Chief Executive B. Anand.

As MRC informed before, in December 2017, Thyssenkrupp Industrial Solutions’ subsidiary Uhde Inventa-Fischer signed a contract to build two new world-scale polymer plants for SASA Polyester Sanayi A.S in Adana, Turkey. One plant is planned to produce 380,000 tpy of polyethylene terephthalate (PET) for low-viscosity applications. The second plant will use Uhde Inventa-Fischer’s proprietary patented MTR technology to produce 216,000 tpy of resin for the production of PET bottles. Both new plants are among the largest single-line production plants for their respective products.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC