Sadara, Sipchem to supply ethanol for producing hand sanitisers

MOSCOW (MRC) -- In line with their social responsibility towards the Kingdom of Saudi Arabia, Sadara Chemical Company (Sadara) and Sahara International Petrochemical Company (Sipchem) have partnered to supply high-quality ethanol which is required for the manufacturing of hand sanitisers, according to Process Worldwide.

The ethanol has been provided to local manufacturers free of charge to enable them to produce much-needed hand sanitisers, which in turn were donated to the Ministry of Health for distribution to the healthcare industry throughout the Kingdom of Saudi Arabia to combat the spread of the Covid-19 pandemic.

Dr. Faisal Al-Faqeer, CEO of Sadara, and Eng. Saleh Bahamdan, CEO of Sipchem, praised the efforts of all teams involved in the project and in the government’s efforts to mitigate the effects of Covid-19. They emphasised that the government has shown wisdom in its efforts to minimise the impact on the Kingdom, its citizens and residents, and they highlighted the fact that as local Saudi companies it is the duty of Sadara and Sipchem and others to contribute to such efforts. This collaboration shows the importance of localising the industry, which has resulted in a fast response to the Kingdom’s demand for this key raw material.

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Due to the sudden shortage of ethanol/isopropanol products in the Kingdom and throughout the world, Sipchem extracted industrial-grade ethanol from its production lines and supplied it to Sadara, which in turn leveraged its high technical capability to purify the ethanol in a temporarily repurposed distillation tower at the Sadara Chemical Complex in Jubail to comply with the Saudi Drug and Food Authorization (SDFA) requirements. The purification process has the capability to produce around 1,600 kilograms (KG) per week of high-quality ethanol, ready for use in hand sanitiser manufacturing. A total of 100,000 KG of high-purity ethanol will be produced to fulfill the local demand.

As MRC wrote earlier, Sadara Basic Services Company cut run rates at 350,000 mt/year low density polyethylene (LDPE) and 750,000 mt/year of high density/linear low density polyethylene (HDPE/LLDPE) swing units, in Jubail by 16%, due to the Saudi oil facility attack that happened on September 14, 2019, which reduced the company's supply of feedstock.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.

Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical.
MRC

MOSCOW (MRC) -- India's Reliance Industries Ltd. (RIL) has been running its two refineries almost uninterrupted at its integrated Jamnagar petrochemical complex despite the lockdown, reported S&P Global with reference to company officials' statement.

Besides, Reliance Industries Ltd. has received clearance to raise the capacity of its export-oriented Jamnagar refinery on the west coast of India by 17% to 41 million mt (820,000 b/d).

By 2030, RIL aims to raise its total refining capacity - including its domestic-focused refinery - at Jamnagar to 98.2 million mt/year. Reliance currently is 1.37 million b/d, of it 707,000 b/d for the export and 660,000 b/d domestic. The export one will increase capacity to 820,000 b/d. By 2030, it aims to raise its overall capacity to 1.96 million b/d.

As MRC informed earlier, In August last year, RIL announced initial agreements to sell a 20% stake in the oil-to-chemical business to Saudi Aramco for an asking of USD15 billion. The deal covers all of Reliance’s refining and petrochemicals assets as well as the remainder of stake the firm has in fuel retailing business after selling 49% to BP Plc of UK for Rs 7,000 crore (USD924.2 million).

And in late April 2020, it became known that 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. 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.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

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

MOSCOW (MRC) -- TechnipFMC and Clariant Catalysts have announced that they have entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN), according to Hydrocarbonprocessing.

This new collaboration will bring together Technip Energies’ well-established expertise in fluid bed technologies and process development with Clariant’s longstanding experience and knowledge in the development, manufacturing and supply of catalysts for the petrochemical industry.

AcryloMax supports the profitable and efficient production of acrylonitrile, which is an important intermediate in the value chain of plastics and synthetic fibres for the automotive and textile industries. The agreement is an example of Clariant’s and TechnipFMC’s efforts to develop and commercialise more efficient process technologies and to help customers achieve sustainability targets. Technip Energies’ research centre in Weymouth, Massachusetts, will soon be commissioning a large demonstration reactor to test the technology.

Stan Knez, President of TechnipFMC Process Technology, commented: “We are pleased to collaborate with Clariant Catalysts in this development effort that leverages our synergistic capabilities and continues to bring to market leading technology solutions.”

Stefan Heuser, Senior Vice President & General Manager at Clariant Catalysts, added: “We are delighted to work with TechnipFMC and to contribute our expertise in ammoxidation. For producers of acrylonitrile, this combination of catalyst and process technology know-how will open the door to exciting new opportunities.”

As MRC reported earlier, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

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

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- The U.S. Environmental Protection Agency has not yet taken action on petitions by refiners seeking retroactive biofuel blending waivers, Senator Chuck Grassley from Iowa said, said Hydrocarbonprocessing.

The Iowa senator called on the EPA to reject such petitions in a weekly call with reporters. Grassley said the petitions were an attempt to skirt a 10th Circuit Court of Appeals decision earlier this year that said waivers from the nation’s biofuel blending laws granted to small refineries after 2010 had to take the form of an “extension."

The decision, if applied broadly, would likely put an end to the Trump Administration’s practice of granting large numbers of exemptions to blending mandates. However, a Department of Energy official said last month the department would review retroactive blending waivers. If granted, such waivers could be considered compliant with the court’s ruling.

His comments sparked outrage from biofuel advocates, who claim waivers undermine demand for ethanol and other biofuels. The oil industry refutes that claim. Grassley said the petitions should be immediately dismissed, and the fact that they haven’t was a big concern of corn farmers and the industry in general. Iowa is the largest ethanol-producing state in the country.

“If the EPA ends up accepting these petitions, not only will they lose again in court, they will risk President Trump’s support in Iowa and other Midwestern states,” he said. Under the U.S. Renewable Fuel Standard, refineries must blend billions of gallons of biofuels into their fuel pool or buy credits from those who do. Small refineries have been able to get waivers from the EPA, after their applications are reviewed by the Department of Energy.

The 10th circuit court’s decision made it unclear whether the large number of waivers issued in recent years could go ahead. “Small refinery petitions received are sent to DOE for further analysis and we will await their recommendations,” an EPA spokesperson said.

As MRC informed previously, global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Equate (Kuwait City), Kuwait’s major petrochemical company owned 42.5% each by Petrochemical Industries Co. and Dow; 9% by local Boubyan Petrochemical Co. (PIC); and 6% by local group Qurain Petrochemical Industries, has appointed Naser Aldousari as the new CEO effective 1 October 2020, said Chemweek.

He succeeds Ramesh Ramachandran who will retire. Aldousari is currently senior vice president of Equate and has worked in the petrochemical industry for more than 24 years. His career includes several senior leadership roles with PIC and membership on the Equate and The Kuwait Olefins Co. boards of directors.

“As we enter a next phase of growth of Equate, [Naser] Aldousari is ideal to take over the leadership of [the] company. He has the experience, knowledge and vision to lead Equate through this challenging time and prepare it for new levels of success in the future,” said Sulaiman al-Marzouqi, chair of the Equate board.

Raja Zeidan, Equate lead director representing Dow, added, “We are looking forward to the leadership that Aldousari will bring to our organization. We also thank Dr. Ramachandran for the many milestones he achieved while CEO with MEGlobal and then CEO of Equate. He brought a new level of shareholder value and a global perspective that has become a core part of our identity and strategy."

Sudhir Shenoy, country president & CEO of Dow India, will succeed Aldousari as senior vice president of Equate effective 1 October 2020. Shenoy joined Dow in 1997 as a sales manager, moving into various management roles in sales, business, asset and commercial management. He managed large businesses, including polyurethanes and home & personal care and water solutions.

The board of Equate has also announced that Phisanu Sermchaiwong, currently Dow finance director – APAC, will return to Kuwait to take the role of CFO at Equate. He will replace Dawood Alabduljalil, CFO who will retire in October. Sermchaiwong roles at Dow included financial planning manager for North America, CFO of the SCG-Dow Group of joint ventures and finance director for Dow Thailand. In 2009, he was appointed global financial planning director for the Treasury department and in 2014 he was appointed CFO of Equate. He was appointed to his current role in 2018.

As MRC informed earlier, Equate to run SM 450,000 tonnes/year plant in Shuaiba, Kuwait at 80% till mid-June.

According to MRC's ScanPlast report, April estimated consumption of PS and styrene plastics in Russia was 36,170 tonnes, down by 12% year on year. Russia's estimated consumption of PS and styrene plastics totalled 157,110 tonnes in January-April 2020, down by 5% year on year.

Equate Petrochemical Company K.S.C.C., together with its subsidiaries, manufactures, markets, and distributes petrochemical products. The company produces ethylene, polyethylene terephthalate, polypropylene, styrene monomer, paraxylene, heavy aromatics, and benzene; polyethylene for various applications, including flexible and food packaging, industrial packaging, agricultural films, HIC, and others; and monoethylene and diethylene glycol that are used in polyester fiber for fabrics, water-based adhesive materials, shoe polish, and printer inks, as well as automotive anti-freeze and coolants. The company sells its products in Kuwait and other Gulf Cooperation Council countries, North America, Asia, Europe, and internationally. Equate Petrochemical Company K.S.C.C. was founded in 1994 and is headquartered in Safat, Kuwait.
MRC