Chinese cracker expansions enter new phase

MOSCOW (MRC) -- Four large new crackers are poised to start operations in China in the next 3-6 months, in a sharp expansion of the country's petrochemical cracker sector, said Argusmadia.

State-controlled Sinochem today said it has commissioned the 3mn t/yr condensate unit at its Quanzhou complex in Fujian province. The key upstream facility produces naphtha for use as a cracker feedstock.

Sinochem conducted successful trial runs at cracker furnaces and a derivative 200,000/500,000 t/yr ethylene oxide/ethylene glycol (EO/EG) plant on 15-16 June.

Quanzhou's naphtha cracker — Sinochem's first cracker — was commissioned in December. The unit has 1mn t/yr of ethylene and 500,000 t/yr of propylene capacity.

Sinochem started construction of the cracker and a refinery expansion project at Quanzhou in October 2017. The project has a full stream of petrochemical derivative units, including 100,000 t/yr ethylene vinyl acetate (EVA), 400,000 t/yr high density polyethylene (HDPE), 200,000/450,000 propylene oxide/styrene (PO/SM), 580,000 t/yr polypropylene (PP), 120,000 t/yr butadiene (BD), 100,000 t/yr MTBE, 350,000 t/yr BTX and 800,000 t/yr paraxylene (PX) capacity, as well as the 200,000/500,000 t/yr EO/EG unit.

The refinery expansion includes a residual fluid catalytic cracker (RFCC) with 230,000 t/yr of propylene capacity.

Fellow state-controlled firm Sinopec is also nearing a cracker start-up at its new Zhanjiang complex in Guangdong province. The cracker is likely to come on line in July-August, after Sinopec started operating the new 200,000 b/d Zhanjiang refinery on 16 June. The 40bn yuan ($5.6bn) project also includes an associated ethylene cracker complex.

The naphtha cracker has 800,000 t/yr of ethylene and 430,000 t/yr of propylene capacity and is integrated with 250,000/400,000 t/yr EO/EG, 350,000 t/yr HDPE, 100,000 t/yr EVA and 550,000 t/yr PP derivative units. The refinery also has a RFCC unit with 320,000 t/yr of propylene capacity.

Two private-sector Chinese firms are also making progress on cracker projects.

Refiner Bora Chemical is preparing to start its 1.1mn t/yr ethylene cracker project at Panjin in northeast Liaoning province. The company held successful trial runs at its downstream 450,000 t/yr linear low-density polyethylene (LLDPE) unit on 25 May and is now aiming to feed in the cracker in August-September.

The cracker will consume 1.65mn t/yr of naphtha and light products from Bora's 140,000 b/d Panjin refinery, as well as 1.1mn t/yr of propane and butane that will be bought from the market.

The complex has 450,000 t/yr LLDPE, 350,000 t/yr HDPE, 350,000 t/yr SM and 600,000 t/yr PP derivative capacity.

Global petrochemical firm LyondellBasell agreed in early March to take a 50pc stake in the project and set up a joint venture, Bora LyondellBasell, which will operate the ethylene cracker and associated polyolefin derivatives complex. The project has a total expected cost of about USD2.6bn.

Private-sector Wanhua Chemical is poised to commission its LPG-fed cracker at Yantai in Shandong province. It plans to start up the cracker around September-October this year.

The cracker, fed by 2.4mn t/yr of propane and butane, can produce 1mn t/yr of ethylene and 500,000 t/yr of propylene. Wanhua started construction work in 2017.

The cracker's petrochemical derivative facilities include a 350,000 t/yr HDPE unit, 450,000 t/yr LLDPE plant, 300,000/650,000 t/yr PO/SM plant, 150,000 t/yr EO unit, two 320,000 t/yr EDC plants, 300,000 t/yr PP unit and an 80,000 t/yr BD plant.

Wanhua Chemical owns China's single-largest capacity propane dehydrogenation (PDH) plant at Yantai in Shandong province. The PDH unit has 750,000 t/yr of propylene capacity and fully integrated derivatives units. Wanhua is also the world's largest methylene diphenyl diisocyanate (MDI) manufacturer.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Lanxess announced plans to realign its business to strengthen its market position in technologies relating to new mobility, said Chemweek.

All future activities in this area will be managed by a group initiative for e-mobility. As of 1 August 2020, the new unit will be headed by Philipp Junge, 44, currently head of Rhein Chemie. Rhein Chemie will in the future focus on rubber additives.

"Modern mobility is one of the most dynamic growth sectors worldwide. Lanxess has a lot to offer here, from our high-tech plastics for electric vehicles to specialty chemicals for batteries. We want to expand this offering significantly, coordinate it more precisely and position it even stronger in the market,” says Anno Borkowsky, member of the Lanxess board.

Lanxess is working to commercialize production of lithium, the key component of lithium-ion batteries. At its site at El Dorado, Arkansas, Lanxess recently commissioned a pilot plant together with its partner Standard Lithium. The companies aim to use the plant to extract battery grade lithium from brine produced during the bromine production process at Lanxess. The new mobility unit will also benefit from the company’s high-performance plastics used in electric vehicles, for lightweight car bodies or battery housings. They also have the potential to be used in e-mobility infrastructure, including in charging stations, and in sensors, displays and control units for autonomous driving. Lanxess is also a leading producer of numerous specialty chemicals that battery systems require, such as phosphorus chemicals, hydrofluoric acid and flame retardants.

Rhein Chemie will become the central business unit for products for the rubber industry. It will be headed by Jens-Hendrik Fischer, 41, currently responsible for antioxidants and accelerators for the rubber industry within the advanced industrial intermediates business unit. These products will in the future be managed under Rhein Chemie, which already offers numerous specialty rubber additives.

As MRC informed earlier, Lanxess has announced that it expects its core income to decline in 2020 as the global coronavirus epidemic is expected to damage its supply chains. The company forecasts that profit before exceptional items will slash EUR 50-100 million (USD56.4-112.8 million) as a result of coronavirus, with EUR20 million (USD22.6 million) impact projected for the first quarter. However, the company anticipates its operating business will remain stable for the year.

Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year.
MRC

MOSCOW (MRC) -- Malaysian national shipping group MISC has entered into memorandum of agreements with China’s Zhejiang Satellite Petrochemical for the acquisition of six newbuild 98,000 cu m very large ethane carriers (VLECs), said Chemweek.

The six VLECs, currently under construction at South Korean yards Hyundai Heavy and Samsung Heavy, were originally ordered by Delos Shipping with charters fixed to Satellite Petrochemical who later took over the ownership of the six ships.

Last month, Satellite Petrochemical announced plans to sell the six vessels with charter deals. According to MISC, the company acquired the six vessels for a total price of USD726m and signed time charter contracts with Satellite Petrochemical for the vessels for a period of 15 years, commencing from the fourth quarter of this year.

Splash understands that Satellite Petrochemical is currently in talks with Korean yards for more VLECs in order to meet its ethane transportation demands from its new plant in Lianyungang. The deal also marks MISC’s entry into the VLEC sector.

As MRC infomed earlier, Zhejiang Satellite Petrochemical Co. has received regulatory approval from the Jiangsu provincial government to ethane from the US in a new polyethylene (PE) plant to be built in Lianyungang, China. The 1.25-million-t/y ethylene facility, on which con-struction is expected to begin this month, is estimated to cost USD4.2-billion. Completion is anticipated in about one year. Zhejiang will receive the ethane from Energy Transfer Partners, starting in the fourth quarter of 2020, under a 10-year supply agreement.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- DOMO Chemicals has formed a partnership with Austrian 3D printing product developer RPD Rapid Product Development, to focus on Sinterline polyamide 6 (PA6) selective laser sintering (SLS) powders, said the producer.

DOMO said that the increased use of SLS in high-performance functional parts in automotive and other market segments has created a need for plastic materials that are capable of bridging the gap between conventional injection moulding and 3D printing.

DOMO’s partnership with RPD was “strategically targeted” at accelerating this production process transformation, it said.

"This partnership opens up new opportunities for SLS customers in near to small series automotive and other higher-volume application areas beyond prototyping,” said Dominique Giannotta, Sinterline programme leader at DOMO Chemicals. Financial terms were not disclosed.

As MRC informed earlier, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year.

DOMO Chemicals is a leading producer of high-quality engineering nylon materials for a diverse range of markets, including the automotive, food, medical, pharmaceutical, chemicals and electronics industries. The company offers a complete portfolio of integrated nylon 6 and 66 products, including intermediates, resins, engineering plastics, performance fibres, packaging film and distribution of petrochemical products. Headquartered in Germany, the familyowned company leverages advanced technology and consumer insights to deliver sustainable & innovative solutions. DOMO generated 2019 sales over EUR 900 million and employs in 2020 approximately 2200 employees worldwide.
MRC

MOSCOW (MRC) -- Air Liquide is investing EUR125m to build the first world-scale oxygen production plant to enable renewable energy production at the Port of Moerdijk in the Netherlands, said the company.

The new air separation unit (ASU) will produce oxygen with an energy storage system to help facilitate more renewable energy on the electricity grid due to its grid stabilising capability.

The plant will have an oxygen capacity of 2,200 tonnes/day and will allow storage of 40MWh of energy (enough for the daily consumption of 4,000 households) “with circa 10% less energy consumption", said Air Liquide.

"While keeping a constant production for customers, it can accommodate the intermittency of renewable energy thus contributing to the growth of power coming from the wind and solar on the electricity grid," the industrial gases producer added.

The ASU will be used to produce oxygen, nitrogen and argon for industrial, food and medical markets and will be connected to Air Liquide’s industrial pipeline. Its location in Moerdijk will serve to decrease bulk truck deliveries by 400,000km a year, further reducing the environmental footprint.

As MRC informed earlier, Air Liquide has entered into a long-term supply agreement with NLMK Group (Moscow) that will see it invest around EUR100 million (USD114 million) in the steel producer’s site at Lipetsk, Russia, on the construction of a new air separation unit (ASU) and the acquisition of existing hydrogen and rare gases production units.

We remind that Shell Singapore restarted its naphtha cracker in Bukom Island in early December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC