MTO plant built by Wison Engineering successfully starts up in China

MOSCOW (MRC) -- On April 20, 2020, the first phase of Connell Chemical Industry Ltd.'s 600 KTA MTO complex, a 300 KTA MTO plant, successfully started up and produced on-spec ethylene and propylene, reported Markets Insider.

This project is the first large-size chemical project brought online during period when Chinais in the process of restarting the economy while fighting COVID-19 pandemic. The MTO plant started feed-in at 8:18 AM on April 15, produced on-spec propylene at 7:00 AM on April 18, and produced on-spec ethylene at 4:00 AM on April 20.

This plant is deployed with Honeywell UOP's advanced MTO/OCP reaction technologies and Wison Engineering's olefin recovery and separation technology – "Pre-cutting + Oil Absorption" process. The project was built by Wison Engineering through an EPC contract. The integrated process with UOP MTO/OCP technology and Wison Engineering's olefin recovery and separation technology is the most advanced MTO process in the world, featured by advantages of high feedstock yield and low catalyst consumption. This commercialization is the 10th successful commercial application for Wison Engineering's olefin recovery and separation technology. This successful startup has once again proved the reliability of this olefin separation technology and Wison Engineering's leading capability in MTO technology and engineering.

In July 2016, Wison Engineering was awarded an EPC contract for Connell Chemical Industry's 300 KTA MTO project. At the same time, Wison Engineering and Connell also signed a licensing agreement on process design package (PDP) contract for Wison's proprietary olefin separation technology. Wison Engineering was responsible for engineering design, procurement and construction of MTO reaction and concentration unit, olefin separation unit, olefin cracking unit and additional auxiliaries. Following the contract signing, site construction started in the same month.
In October 2016, Honeywell UOP and Connell signed the licensing agreement on MTO+OCP technology.

In September 2017, the project handover ceremony for 300 KTA MTO plant was successfully held at project site.
On April 20, 2020, 300 KTA MTO plant successfully started up and produced on-spec ethylene and propylene.

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

According to MRC's ScanPlast report, estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

KNPC says oil refinery project halted over coronavirus case

MOSCOW (MRC) -- The Kuwait National Petroleum Co. (KNPC) said work on a project linked to the Al-Ahmadi oil refinery was halted because a worker was diagnosed with the new coronavirus, said Reuters.

The worker, an Indian national, was employed by a contractor, KNPC said on Twitter, without giving details about the project.

"Work has stopped on the project until precautionary measures are taken to identify those who came in contact with him and the necessary tests are done," it said.

As MRC informed earlier, Kuwait National Petroleum Co (KNPC) on Thursday announced the operation of naphtha conversion unit number 107 in the Mina Al-Ahmadi refinery with a production capacity of 30,000 bpd.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

COVID-19 - News digest as of 27.04.2020

1. Saudi Aramco, Reliance Industries deal at risk amid oil price rash

MOSCOW (MRC) -- Saudi Aramco’s plan to buy USD15-billion stake in Reliance Industries hydrocarbon business may not go through due to the rising risk of collapsing oil prices, US-based brokerage Bernstein has warned, reported Kemicalinfo. The unique combination of excess crude oil global supply, 30% drop in demand due to coronavirus crisis and continuous price fall weighed heavily on Aramco’s investment plans.

MRC

Saudi Aramco, Reliance Industries deal at risk amid oil price rash

MOSCOW (MRC) -- Saudi Aramco’s plan to buy USD15-billion stake in Reliance Industries hydrocarbon business may not go through due to the rising risk of collapsing oil prices, US-based brokerage Bernstein has warned, reported Kemicalinfo.

The unique combination of excess crude oil global supply, 30% drop in demand due to coronavirus crisis and continuous price fall weighed heavily on Aramco’s investment plans.

"With the collapse in oil prices, the risk is rising that the deal will not go has increased although we now value downstream at USD55 billion gross, which is a 20% discount to Aramco valuation," Bernstein said in a report on Wednesday.

Last August, Saudi Aramco entered into a non-binding initial agreement to buy 20% stake in Reliance Industries’ oil to chemicals divisions with an enterprise value of USD75 billion. The oil to chemicals division included RIL’s Jamnagar refining complex, petrochemicals and fuels marketing businesses.

Apart from Reliances oil to chemicals business, Aramco also agreed last year to buy the controlling stake in SABIC from the kingdom’s wealth fund for USD69.1bn, sealing one of the biggest-ever deals in the global chemical industry.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

Ukraine increased import of injection moulding PET chips by 4% in January-March

MOSCOW (MRC) -- Imports of bottle grade polyethylene terephthalate (PET) in Ukraine increased by 4% year on year to 35,500 tonnes in Q1 from 33,700 tonnes a year earlier, according to MRC's DataScope report.

Last month, imports amounted to 13,100 tonnes, 40% more than the previous month. External supplies of material were at the level of 15,700 tonnes in March last year. The volume of supplies of bottle grade PET from China to Ukraine over the three months of the year fell almost four times: from 26,500 tonnes in January-March 2020 to 6,700 tonnes.

Nevertheless, the supply of Chinese PET chips to the Ukrainian market last month quadrupled and amounted to 2,900 tonnes against 700 tonnes a month earlier, compared to March last year, imports decreased by 76%. The share of imports from China in the total volume amounted to 22% in March against 8% a month earlier and 37% in March 2019.

In the first quarter, the share of Chinese material decreased from 79% in the first three months of last year to 19%. The key suppliers of injection moulding Chinese PET chips to the Ukrainian market were producers Dragon, China Resources Chemicals and Yisheng Petrochemical.
At the same time, import of injection moulding PET chips from Lithuania grew three and a half times in the three months of this year and amounted to 22,000 tonnes. This figure was at 6,100 tonnes in January- March 2019.

Last month, the volume of foreign deliveries from Lithuania to Ukraine decreased by 4% compared to February to 7,200 tonnes against 7,500 tonnes. In February of the previous year, shipments of PET chips were 2,800 tonnes.

The volume of Lithuanian imports to the country in the total supply volume increased to 63% in he first quarter against 18% in January - March 2019. The main supplier of Lithuanian material is the manufacturer Neo Group (21,900 tonnes). The main buyers of Lithuanian bottled PET were Coca-Cola Beverages Ukraine Limited and Retal.


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