JXTG Nippon Oil and Energy conducts maintenance at CDU in Japan

MOSCOW (MRC0 -- Japan's JXTG Nippon Oil and Energy Corp Monday shut the sole 120,000 b/d crude distillation unit at its Marifu refinery in western Japan for scheduled maintenance on January 20, reported S&P Global with reference to a company official's statement.

The turnaround will last until late March, the official said.

As MRC wrote before, JXTG Nippon Oil & Energy bbrought on-stream, its fluid catalytic cracker (FCC) unit in Japan in early-August, 2019. The unit was shut for maintenance, on June 10, 2019. Located at Sendai, Japan, the FCC unit has a propylene capacity of 100,000 mt/year.

Propylene is a feedstock for production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

The Nippon Oil Corporation, or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including olefines (ethylene, propylene) and aromatics.
MRC

MOSCOW (MRC) -- Major producer SK Advanced is planning to delay the restart of its 600,000 mt/year propane dehydrogenation (PDH) plant at Ulsan, South Korea from early March to mid-March, reported S&P Global.

The plant was shut January 28 for a 30-day turnaround.

As MRC informed before, SK Advanced last undertook an emergency shutdown at its PDH plant at Ulsan on November 16, 2019 owing to a technical issue. The unit was brought on-stream on November 20, 2019. Located in Ulsan, South Korea, the plant has a propylene production capacity of 600,000 mt/year.

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

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

SK Advanced, a joint venture of South Korea's largest LPG supplier SK Gas and Advanced Petrochemical Company (APC) of Saudi Arabia.
MRC

MOSCOW (MRC) - PetroChina exported first batch of very low sulphur fuel oil (VLSFO) after China waived consumption taxes and granted rebates on value-added taxes on the clean marine fuels, as per Reuters.

The 5,300 tonnes of VLSFO was produced by PetroChina's Liaohe refinery and was put into a bonded storage, managed by China Marine Bunker Co, via Dalian customs.

The tax waiver helps PetroChina to save around 2 million yuan (USD286,426.26).

As MRC informed earlier, PetroChina, China’s second state refiner, is reducing refinery crude throughput by about 320,000 barrels per day this month versus its original plan as a spreading coronavirus hits fuel demand. PetroChina started the production cuts at the beginning of the month, but deepened the cuts from Monday, said the official with direct knowledge of the matter. The February cut is equivalent to about 10% of the refiner’s average production rate at around 3.32 million bpd.

As MRC informed earlier, polypropylene (PP) futures in China fell 5.99% on Monday due to concerns about a high level of material stocks in the market amid weak demand and limited supplies. So, PP futures for May 2020, most actively traded on the Dalian Commodity Exchange (DCE), on February 3 were at the level of CNY6 903 (USD983) per ton. Since the price reached the bottom, the auction closed that day. The Chinese market was closed from January 24 to February 2 due to the extension of the celebration of the Lunar New Year by the Chinese government.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant, intends to resume its high density polyethylene (HDPE) production in the third decade of March after a forced outage, according to ICIS-MRC Price report.

The plant's representative and customers said the Ukrainian producer plans to launch its HDPE production on 20 March. The shutdown of polyethylene (PE) production took place in early January and was caused by high prices of material, which did not match the world prices of polymer.

The situation in the feedstocks markets has changed dramatically for the past several week, thus, oil prices fell significantly, which suggests a proportional reduction in net cost of PE production.

As reported earlier, Karpatneftekhim's overall HDPE output exceeded 93,000 tonnes in 2019, up by 4% year on year.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC

MOSCOW (MRC) -- Hyosung Vietnam started trial operation at its newly constructed polypropylene (PP) plant in Ba Ria Vung Tau province on 12 February 2020, reported CommoPlast with reference to market sources.

This is the No. 1 PP unit that has an annual capacity of 300,000 tons/year.

The company might be able to commence commercial production on 18 February 2020 would the trial run produces on-spec cargoes, sources added.

As part of the Phase – I project, the company also builds an underground a liquefied petroleum gas (LPG) storage.

In the meantime, the Phase – II project is still under construction, which houses a propane dehydrogenation (PDH) plant and No. 2 PP unit that could produce another 300,000 tons/year.

As a result, the No. 1 PP plant is currently operating using propylene (C3) cargoes from external sources.

As MRC informed earlier, Hyosung Corp. plans to invest USD1.2-billion in a two-phase project, which involves construction of PP plants and LPG warehouse at the Cai Mep Industrial Zone in Vietnam.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Hyosung Corporation is a Korean industrial conglomerate, founded in 1957. It operates in various fields, including the chemical industry, industrial machinery, IT, trade, and construction.
MRC