Celanese completes maintenance at VAM unit in Singapore

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has restarted its vinyl acetate monomer (VAM) unit in Singapore, according to Apic-onlne.

A Polymerupdate source in Singapore informed that, the company has resumed operations at the unit on March 16, 2020. The unit was shut since February 4, 2020 following a fire at the site.

Located in Jurong Island, Singapore, the unit has a production capacity of 210,000 mt/year.

As MRC informed earlier, Celanese Corporation brought capacity utilization at its VAM unit in Clear Lake (Texas, USA) to 100% in late January 2020. In October 2019, the company was progressing in restarting on-site production units after experiencing an emergency incident on Saturday, September 21, 2019, at its Clear Lake facility in Pasadena, Texas. The Fairway Methanol unit restarted in early October 2019 and approached full operating rates in mid-October. The acetic acid and VAM production units restarted at reduced rates during October, with full operating rates initially expected for all production units at Clear Lake within the fourth quarter of 2019.

According to MRC's DataScope report, December 2019 EVA imports to Russia dropped by 4,1% year on year to 3,600 tonnes from 3,760 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-December 2019 by 17,8% year on year to 39,55 tonnes (48,09 tonnes in 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

Zhejiang Petrochemical selects Honeywell UOP to supply PSA units for petrochemical project in Zhoushan

MOSCOW (MRC) -- Zhejiang Petrochemical Co. (ZPC) will utilize four Honey-well UOP Polybed pressure swing adsorption (PSA) units to supply high-purity hydrogen to the second phase of ZPC's integrated refining and petrochemical complex located in Zhoushan, Zhejiang Province, China, according to Apic-online.

The second phase will double the plant's aromatics capacity to about 12-million t/y. Cost of the project and an expected completion date were not given. The first phase was started up in January 2020.

When complete, the new plant will be the "largest" crude-to-chemicals complex in China and "one of the larg-est" in the world, said Honeywell UOP.

"With more than 50% of its crude capacity converted to petrochemicals, it will move china closer to self-sufficiency in paraxylene production and be a major new source of propylene and other products," it added.

As MRC wrote previously, Zhejiang Petroleum & Chemical Co Ltd had started test-run at a 2-million-ton-per-year No. 2 paraxylene (PX) unit in east China before the Lunar New Year break. The No. 1 and No. 2 PX lines each have a nameplate capacity of 2 million mt/year.

PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, the estimated PET consumption in Russia increased in January 2020 by 9% year on year. Totally, Russia recycled 55,390 tonnes of PET chips in January (excluding shipments of Russian material to the countries of the Customs Union). Russia's PET chips production totalled 43,200 tonnes in January 2020.
MRC

PP imports to Ukraine rose by 4% in January-February 2020

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 20,400 tonnes in January-February of this year, up 4% year on year.
The greatest increase in imports accounted for homopolymer PP, according to MRC DataScope.

February PP imports to Ukraine increased to 10,500 tonnes from 9,900 tonnes a month earlier, local companies increased their purchasing of homopolymer PP in Russia. Overall imports of propylene polymers reached 20,400 tonnes in January-February 2020, compared to 19,600 tonnes a year earlier. The demand for only homopolymer PP increased, but demand for propylene copolymers decreased.

The structure of PP imports by grades looked the following way over the stated period.

February imports of homopolymer PP to the Ukrainian market grew due to stronger purchases of raffia in Russia despite the low demand in the domestic market, the total import volume amounted to about 8,700 tonnes against 7,800 tonnes a month earlier. Total homopolymer PP imports were 16,500 tonnes in January-February, compared to 14,900 tonnes a year earlier.

February imports of PP block copolymers into the country amounted to about 726 tonnes compared to 890 tonnes in January, local companies reduced the volume of purchases of injection moulding polypropylene. Over the reporting period, about 1,600 tonnes of propylene block copolymers were imported against 2,200 tonnes for the same period in 2019.

February imports of PP random copolymers fell below the level of 1,000 tonnes against, which is slightly lower than a month earlier. Overall PP random copolymers imports reached 2,000 tonnes in January-February 2020, compared to 2,200 tonnes a year earlier.

Overall imports of other propylene copolymers were about 300 tonnes over the stated period.

MRC

Versalis completes restart of Sicilian aromatics units in Priolo

MOSCOW (MRC) -- The Versalis petrochemical plant in Priolo, Sicily, has restarted its aromatics units after being taken offline in recent months for maintenance and upgrade works, a source close to the company told S&P Global Platts Thursday.

Versalis' C1 CR14 and C2 CR14 aromatics units were among the first to be restarted, followed by the C2 CR11 and then the C1 CR11 unit, which produces hydrogen, the source said. One of the last to be restarted was the CR23 aromatics unit, the source said.

The Versalis petrochemical plant is owned by Eni.

The plant's ethylene unit is currently undergoing maintenance and upgrade works, and is scheduled to restart in about a week, the source said. The plant was originally scheduled to restart around March 14.

Company officials were not immediately available for comment, and the reason for the rescheduling could not be ascertained.

Eni is investing about Eur70 million in the turnaround project at Priolo, of which Eur48 million was earmarked for the ethylene unit, Eur15 million for the aromatics units and the balance for other units. The Priolo complex produces benzene, mixed xylenes, crude C4s, ethylene, propylene and pyrolysis gas.

Versalis is a wholly owned chemical subsidiary of Eni and owns three large petrochemical complexes in the country - Priolo in Sicily, Porto Torres on the island of Sardinia and in Porto Marghera near Venice.

As MRC informed earlier, operations at Italian petrochemical producer Versalis (part of Eni) have not affected by emergency quarantine measures in the country. Italian Prime Minister Giuseppe Conte extended its emergency coronavirus measures Wednesday evening and announced the closure of "non-essential" commercial businesses. This follows the announcement of a nationwide lockdown on Monday, limiting movement for around 60 million people. Under these measures people will only be allowed to leave their homes for work or health reasons. Versalis has three steam crackers in Italy, capable of producing 1.675 million mt of ethylene, 750,000 of propylene and 285,000 mt of butadiene a year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.
MRC

As virus destroys fuel demand, global refiners prepare run cuts

MOSCOW (MRC) -- Falling prices for crude oil are usually a good thing for global refiners - except when nobody is driving, reported Hydrocarbonprocesing.

Gasoline demand in the United States, the world’s largest oil consumer, is plunging. International flights are being grounded worldwide, slamming jet fuel demand.

Margins for producing transportation fuels turned negative in Europe and Asia, and briefly did the same in the United States, in a rapid response to international and domestic travel restrictions in scores of nations worldwide.

"What we are seeing is nothing short of unprecedented," said Tom Kloza, founder of the Oil Price Information Service, adding that demand destruction during this pandemic has exceeded what was seen in the wake of Sept. 11 and other disasters.

Crude oil prices have plunged this year, most recently after Saudi Arabia and Russia failed to reach agreement on limiting supplies. Both US crude and international benchmark Brent have tumbled below USD30 a barrel.

This would have been a boon for refining margins - but prices on gasoline and jet fuel have plummeted even faster this week, sapping refiners’ profitability.

Traders, all speaking on condition of anonymity, said it was extremely difficult for refiners to plan run rates due to daily changes in the situation. On Tuesday, Phillips 66 said it was cutting production at its Los Angeles refinery due to loss of demand.

Refineries must choose between extending maintenance while margins are so poor or ramping up to take advantage of cheap crude to fill up storage with refined products. However, once storage has been filled, refining rates would have to fall sharply, due to lack of demand.

In Europe, refiners are losing nearly USD7 on every barrel of gasoline they produce, an 11-year low. Differentials for jet fuel cargoes also fell to a record low.

Asian refiners are producing gasoline at a loss of 78 cents a barrel of Brent crude, lowest in 13 months.

US gasoline refining margins fell a whopping 95% on Monday to settle at 28 cents per barrel, lowest since December 2008. On Tuesday, they rebounded, but were still at a meager USD2 per barrel.

Asian refining margins for jet fuel plunged to USD4.71 per barrel over Dubai crude, lowest ever based on Refinitiv data going back to March 2009. They were at USD7.70 on Friday. In the United States, jet fuel prices when compared with the heating oil benchmark were at lows not seen since 2011 in both New York and on the Gulf Coast.

"When crude prices fell heavily early last week, it gave an incentive to refineries to keep runs unchanged. Eventually, with the virus-related situation developing, it’s now the second time for global refineries to think of run cuts," a Seoul-based middle distillates trader said.

Numerous refiners have invested in costly large-scale projects to capitalize on projected increases in demand for low-sulfur shipping fuel in the first half of 2020 due to new maritime regulations limiting the use of high-sulfur fuels.

Now, though, those refiners may be particularly hard hit, as the virus has curtailed cruises and global shipments of goods.

"Refiners that invested in sophisticated upgrading equipment to produce low-sulfur fuel oil for ships may suffer another blow," said Phil Verleger, a veteran oil economist and independent consultant, in a note.

For example, PBF Energy’s market capitalization fell to less than USD1.3 billion on Friday, just USD300,000 more than it paid for Shell’s Martinez refinery earlier this year.

Following that purchase, PBF laid off members of its commercial business development team, according to a person familiar with the matter. The team had been looking strategic projects, acquisitions and other new business opportunities for the company.

PBF did not respond to a request for comment.

Italian energy group Eni said on Tuesday all its refineries in Italy were working normally except for two that had cut volumes for maintenance.

A spokesman for Repsol said the Spanish refiner had activated a global plan two weeks ago to ensure normal operation at all its facilities.

As MRC informed earlier, operations at Italian petrochemical producer Versalis (part of Eni) have not affected by emergency quarantine measures in the country. Italian Prime Minister Giuseppe Conte extended its emergency coronavirus measures Wednesday evening and announced the closure of "non-essential" commercial businesses. This follows the announcement of a nationwide lockdown on Monday, limiting movement for around 60 million people. Under these measures people will only be allowed to leave their homes for work or health reasons. Versalis has three steam crackers in Italy, capable of producing 1.675 million mt of ethylene, 750,000 of propylene and 285,000 mt of butadiene a year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.
MRC