COVID-19 - News digest as of 25.06.2020

1. Future of Shell Oman GTL project in question

MOSCOW (MRC) -- Plans to build a new gas-to-liquids (GTL) project in Oman between the government and Shell have been thrown into doubt by the global economic downturn, the sultanate's oil minister Mohammed AL-Rumhy has told S&P Global. "We've decided to revisit the GTL with our partners Shell," said Rumhy in a June 11 interview. "We will see what is best for the project, and this work could take up to three months. So, by the third or fourth quarter we will make a final investment decision of some kind on the project. We'll see how it goes."

The commissioning process is currently ongoing. During this phase, the company is concluding functional tests and process tests to verify performance of controls and integrated safety systems. Initial production test runs are anticipated to begin in the next month with the first full scale commercial production activity currently expected in the third quarter of 2020. "The COVID impact on the North American polypropylene industry during April and May affected durable segments such as automotive...

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Angarsk Polymers Plant shut PE production

MOSCOW (MRC) -- Angarsk Polymers Plant has shut down its low density polyethylene (LDPE) production for a scheduled turnaround, according to ICIS-MRC Price Report.

The plant's customers said Angarsk Polymers Plant took off-stream its LDPE production for the scheduled maintenance on 22 June. The outage is scheduled to last for one month. The plant's annual production capacity is about 75,000 tonnes.

It is also worth noting that next shutdowns for maintenance at Russian plants are scheduled for July. Gazprom neftekhim Salavat will shut its LDPE production capacities for a one-month maintenance on 1 July, and Tomskneftekhim is expected to conduct maintenance works at its production in the second half of the month.

Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) is the only petrochemical full-cycle plant in Eastern Siberia. The bulk of the produced ethylene is used by the plant for the production of LDPE, styrene monomer (SM) and polystyrene (PS). Straight-run gasoline and hydrocarbon gases, mainly produced by OAO Angarskaya NHK, are the feedstocks for the plant.
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Output of products from polymers in Russia up by 1.2% in Jan-May 2020

MOSCOW (MRC) -- Russia's output of products from polymers decreased in May 2020 by 7.2% year on year due to quarantine restrictions and weaker demand. However, this figure increased by 1.2% year on year in the first five months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, May production of unreinforced and non-combined films dropped to 101,000 tonnes from 107,000 tonnes a month earlier. Output of films products grew in the first five months of 2020 by 10.1% year on year to 503,900 tonnes.

Last month's production of non-porous polymer boards, sheets and films rose to 33,000 tonnes from 32,800 tonnes in April. Thus, overall output of these products reached 160,500 tonnes in January-May 2020, up by 4.9% year on year.

May production of porous poly,er boards, sheets and films was 22,800 tonnes, up by 12.6% month on month. Overall production of these products reached 107,300 tonnes in the first five months of 2020, compared to 101,200 tonnes a year earlier.

May production of plastic bottles and flasks fell to 1,958,000,000 items from 2,060,000,000 items a month earlier. Overall output of these plastic products totalled 8,920,000,000 units over the stated period, compared to 8,541,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 56,500 tonnes versus 52,800 tonnes in April. Overall output of these products was 250,100 tonnes in January-May 2020, up by 18.5% year on year.

May production of sacks and bags from ethylene polymers reached 2,547,000,000 units, compared to 2,419,000,000 units a month earlier. Overall output of these plastic products totalled 11,676,000,000 units in the first five months of 2020, compared to 9,857,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 8,600,000 square metres, compared to 6,700,000 square metres in April. Overall output of these products totalled 48,600,000 square metres over the stated period versus 54,300,000 square metres a year earlier.

May production of plastic windows and door blocks reached 1,816,000 square metres and 69,200 square metres, respectively, versus 1,521,000 square metres and 64,300 square metres a month earlier. Overall output of these plastic products totalled 8,862,000 square metres and 330,000 square metres, respectively, compared to 7,718,000 square metres and 344,500 square metres a year earlier.
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New Clariant additive solutions to add more than just a finishing touch to North American industrial coatings

MOSCOW (MRC) -- Clariant unveils solutions fit for elevating industrial coatings to the demanding performance and increasing sustainability requirements of North America’s diverse end-users - the automotive, transportation, building & construction, and consumer & household goods industries, as per the company's press release.

Delivering innovations in key areas, such as light stability and durability, fire resistance, waterborne and low VOC coatings, and higher solid solvent-borne coatings, the latest additions to Clariant’s portfolio equip local manufacturers to get to the crux of new sector needs and make the most of opportunities in the globally-growing industrial coatings market.

“More is required of industrial coatings, whether for a car or truck, earth-moving equipment or for structural steel work, than just a finishing decorative touch. Their users look for protection that will extend the lifecycle of industrial applications and deliver high performance in areas such as wear and corrosion resistance. At the same time, reduced environmental impact is an increasing priority. Our additives expand the manufacturers’ toolbox so that future coatings can really raise the bar in meeting customer needs,” comments Tyler Kilgannon, Head of Sales, BU Additives North America.

Steel is North America’s most recycled material, gaining in popularity for commercial and industrial buildings and infrastructure due to its strength, durability, versatility and 100% recyclability. Clariant now offers manufacturers of intumescent, fire-protective steel coatings the chance to take their products’ sustainability and protection performance a step further.

New halogen-free flame retardant Exolit® AP 418 (TP) helps solvent based intumescent coatings for steel structures to reach up to 10% longer fire resistance time compared to conventional solutions. Clariant’s EcoTain-labelled flame retardant has a favorable environmental and health profile, making no contribution to a solvent-based coating’s VOC emissions.

Clariant also introduces its North America customers to a new solution for water-based intumescent coatings, to sustainably improve the negative impact of cold weather exposure during shipping and storage. Halogen-free Exolit AP 435 prolongs the shelf life, keeping the coating fluid and workable for longer by preventing paints from either drying out quickly in their pail or becoming unusable due to increased stiffness. The EcoTain-labelled innovation supports a greater use of waterborne coatings and reduces the environmental impact of intumescent coatings.

Both Exolit innovations will be featured in a special live webinar “Clariant's new Exolit solutions for fire protective water- and solvent-borne coatings” on Wednesday June 17 at 9am Eastern Daylight Time / 15:00 Central European Summer Time. Pre-register here to participate and get in-depth info on the new products direct from Clariant’s experts.

Attention turns to service life with a new opportunity to improve the durability of industrial coatings and better protect the application.

On the back of positive development of the US-based automotive manufacturing announced in 2019, Clariant is supporting producers of paints and clear coats for metal and plastics automotive components by offering solutions aimed at extending the service life of coatings. The synergistic high-performance light stabilizer solution AddWorks LXR 313 contributes to an increased durability of waterborne and solvent-based clear and pigmented coatings. Formulated without xylene, it extends its benefits from automotive to general industrial applications. AddWorks LXR 313 enables coating formulators to develop new solutions for today’s modern coating systems where light and heat stabilization are key requirements.

Based on the persistency of PFOA, the European parliament decided to ban PTFE substances that contain PFOA in a concentration equal to or above 25 parts per billion (grams per thousand tons) with reference to entry 68 of Annex XVII of REACH. The effective date is July 4, 2020 and exemptions that are currently under discussion will only be temporary.

Conforming with this new REACH regulation, Clariant is expanding its portfolio and introducing its new Ceridust 3942 F TP and Ceridust 3943 F TP to give its customers more options to select REACH compliant PTFE wax solutions. These new micronized PTFE modified polyethlene wax additives enable powder coatings with a fine and homogeneous textured structure and a matte finish. The new solutions show excellent properties in terms of mar resistance, dirt repellence and anti-slip performance. The need for PFOA REACH-compliant PTFE waxes can also be observed for other coating and also ink applications. Clariant’s new Ceridust 9203 F TP helps to improve scratch and metal marking resistance as well as the slip performance. Customers benefit from an improved appearance and longevity of coated surfaces and prints.

As MRC reported earlier, in June 2020, TechnipFMC and Clariant Catalysts 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).

Besides, 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.
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Braskem completes construction of La Porte PP plant

MOSCOW (MRC) -- Braskem has announced that it has completed construction of its newest polypropylene (PP) production facility at La Porte, Texas, reported Chemweek.

The new plant has a designed capacity of over 450,000 metric tons/year and has the capability to produce the entire PP portfolio including homopolymer, impact copolymer and random copolymers. The plant added 50 permanent full-time jobs to support long-term commercial production.

Mark Nikolich, Braskem America CEO, said, "… As commercial production begins later this year, Braskem will position the new facility's domestic production capabilities to replace imported polypropylene volumes, which are currently addressing the shortfall in the United States' domestic market. Commercial production activity at the facility, in conjunction with our new global export hub in Charleston, South Carolina, will also directly support Braskem's global export capability to its clients throughout North America, South America, Europe, and Asia."

The commissioning process is currently ongoing. During this phase, the company is concluding functional tests and process tests to verify performance of controls and integrated safety systems. Initial production test runs are anticipated to begin in the next month with the first full scale commercial production activity currently expected in the third quarter of 2020.

"The COVID impact on the North American polypropylene industry during April and May affected durable segments such as automotive. However, this impact was partially mitigated with strong sales in nonwovens and packaging applications. In June, demand improved and Braskem's North American polypropylene outlook for the third quarter is positive as clients are ramping up operations and demand has rebounded. Braskem’s… global supply chain has made preparations to leverage North America's competitive propylene and polypropylene position for exports supporting our clients in North America, South America, Europe, and Asia. The combination of improved demand, planned outages in the third quarter, and export opportunities will support a smooth ramp up of the new facility," said Alexandre Elias, vice president/polypropylene North America.

As MRC wrote before, Brazilian petrochemical firm Braskem SA reported in early June a net loss of USD777 million in the first quarter compared with a profit of USD243 million a year ago, as foreign exchange oscillations led to higher financial expenses. The company said financial expenses grew to USD1.332 billion in the quarter ended March 31 from USD243 million a year ago, given the depreciation of the Brazilian real and the Mexican peso against the US dollar.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
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