Philadelphia refinery expected to be sold to real estate developer

MOSCOW (MRC) -- The bankrupt Philadelphia Energy Solutions is expected to sell its fire-damaged refinery site to real estate developer Hilco Redevelopment Partners, reported Reuters with reference to three sources familiar with the situation.

The agreement between PES and Hilco, a Chicago-based developer, was expected to be announced later on Tuesday. PES and Hilco did not immediately respond to requests for comment. A city official declined to comment.

The sale reduces the possibility that the more-than 1,300-acre (526-hectare) Philadelphia site would be resurrected as an oil refinery, but it is possible that Hilco could lease it to a refinery, biofuels or other heavy industrial operation, the sources said.

The 335,000 barrel-per-day refinery is the largest and oldest on the US East Coast, but was shut after a fire and series of explosions on June 21 last year that destroyed a key processing unit.

There were more than a dozen initial bidders for the site, but only one bidder had publicly stated intentions to revive the site as a refinery. Any sale would have to be approved by the United States Bankruptcy Court for the District of Delaware.

A bankruptcy court hearing is set for Feb. 6, which could confirm any potential sale of the site.

PES had struggled financially for years and had only exited a previous bankruptcy in 2018. More than 1,000 workers were laid off after the site closed last summer.

As MRC wrote previously, in November 2019, US and local officials were opposing the sale procedure for the bankrupt Philadelphia Energy Solutions oil refinery, arguing the plan discourages bidders and keeps the city locked out of the process.

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.
MRC

MOSCOW (MRC) -- BASF has recently closed the previously announced transaction to divest its ultrafiltration membrane business to DuPont Safety & Construction (DuPont), according to Kemicalinfo.

The divestiture includes the shares of inge GmbH, the business’ headquarters and production site in Greifenberg, Germany, including all employees, its international sales force, and certain intellectual property previously owned by BASF SE.

Financial details of the transaction are not being disclosed.

The ultrafiltration membrane business had been part of BASF’s Performance Chemicals division. The division’s portfolio includes plastic additives, fuel and lubricant solutions, oilfield chemicals and mining solutions as well as kaolin minerals.

As MRC wrote earlier, BASF, the world's petrochemical major, has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

Ethylene and propylene are feedstocks for producing 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of around EUR63 billion in 2018.
MRC

MOSCOW (MRC) -- Hebei Haiwei idled its 500,000 mt/year propane dehydrogenation (PDH) plant in northern China for maintenance starting from December 31, 2019, reported S&P Global with reference to a market source.

"It's unknown when Hebei Haiwei will resume operation," a market source said, adding that the plant has difficulty in purchasing propane feedstock now due to high price.

Hebei Haiwei was said to have no term contract with overseas suppliers, and mainly sources spot cargoes from its neighboring rivals Tianjin Bohai and Yantai Wanhua.

"Tianjin Bohai has cut its propane imports these two months due to high prices, which is believed to have resulted in limited propane supply to the local market," the source added.

As MRC wrote previously, Tianjin Bohai Chemical in northern China plans to extend maintenance period at its PDH plant by 10 days due to poor processing margin. Located in Tianjin, China, the PDH plant has a propylene capacity of 600,000 mt/year.

Propylene is the main feedstock for the production of 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.
MRC

MOSCOW (MRC) -- China's Tianjin Bohai Chemical in northern China plans to extend maintenance period at its propane dehydrogenation (PDH) plant by 10 days due to poor processing margin, reported S&P Global with reference to a company source.

"We have decided to shut down the PDH plant for 40 days now due to high propane feedstock price," the company source said.

The company originally planned to shut its 600,000 mt/year PDH plant for 30 days maintenance starting from December 28, 2019.

Located in Tianjin, China, the PDH plant has a propylene capacity of 600,000 mt/year.

As MRC informed earlier, the company last shut this plant for an unscheduled turnaround from 1 to 11 November, 2019.

Propylene is the main feedstock for the production of 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.

Tianjin Bohai is a state owned enterprise, with over 100 subsidiaries and 35,000 employees. It has joint venture relationships with a number of foreign partners, including: LG Chem, Solvay, Akzo Nobel, Clariant, Veolia, Air Liquide and Vopak.

MOSCOW (MRC) -- China's Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group, plans to delay the startup of its newly built PDH plant in Jiangyin, southeastern Fujian province, to the second half of February, reported S&P Global.

The new PDH with the capacity of 660,000 mt/year was originally scheduled to start up in the first half of February, 2020.

High cost of feedstock propane was the cause of the delay.

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