KBR to provide nitrobenzene technology for project in India

MOSCOW (MRC) -- KBR has been awarded a contract for its proprietary Plinke Adiabatic Nitrobenzene solutions by Kutch Specialities Pvt Ltd, India, said the company.

Under the terms of the contract, KBR will provide basic and detailed engineering design, equipment, and related advisory services to Kutch Specialities Pvt Ltd for its grassroots nitrobenzene project in India.

KBR’s proven process, patented equipment design, and material selection ensure plant availability and reliability to produce a high purity nitrobenzene with a focus on high energy efficiency and environmental sustainability. Amongst other products, Nitrobenzene is used for the production of polyurethane foams, rubber chemicals, dyes and pharmaceutical.

"This contract reinforces KBR’s process leadership in purification, concentration and processing of strong inorganic acids,” said Doug Kelly, KBR President, Technology Solutions. “We are proud to work with Kutch Specialities Pvt Ltd to achieve its business expansion goals safely, reliably and efficiently."

As MRC informed earlier, KBR has been awarded a catalyst supply contract for a Vinyl Acetate Monomer (VAM) project by Shenghong Refining Petrochemical (Lianyungang) Co. Ltd., China. Under the terms of the agreement, KBR will provide proprietary catalyst for Shenghong’s grassroot 300 KTA VAM unit. The unit represents the first commercial VAM technology license and engineering contract under an alliance agreement between KBR and Showa Denko K.K.(SDK).

VAM is the main raw material for the production of ethylene vinyl acetate (EVA).

According to MRC ScanPlast, last month external deliveries of other ethylene polymers, including ethylene vinyl acetate (EVA) to Russia, amounted to 7,300 tonnes against 6,200 tonnes in May. In general, during the period under review, the total external supply of other ethylene polymers reached 46,100 tonnes against 45,200 tonnes a year earlier.

KBR has more than 70 years of experience in inorganics, including processes and technology solutions for crystallization, evaporation and the concentration and purification of strong inorganic acids.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Energy sectors. KBR employs approximately 37,000 people worldwide (including our joint ventures), with customers in more than 80 countries and operations in 40 countries, across three synergistic global businesses.
MRC

Oil refiners and OPEC+ walk a tightrope as pandemic lingers

MOSCOW (MRC) -- High-frequency data from the United States has provided the first convincing indication of global oil market rebalancing, but it also underscore the market’s vulnerability to a COVID-19 resurgence and new lockdowns, said Hydrocarbonprocessing.

Total stocks of crude and refined products in the United States fell by 9 million barrels last week, the first week-on-week decline since the end of February, according to the U.S. Energy Information Administration. Coming after stocks increased by 225 million over the previous 17 weeks, the drawdown barely made a dent in the total, but the change in direction was significant.

Crude stocks fell by 7 million barrels and gasoline by 3 million, with distillate stocks unchanged at a time of year when they would normally be rising in the gasoline-intensive summer driving season. Gasoline stocks ended the week 7% higher than the five-year seasonal average, but the surplus has fallen from 8% the previous week and a peak of more than 10% in early June.

Distillate stocks were still a massive 26% higher than the five-year average but the surplus had narrowed from 28% the previous week and 29% in early June.

Refiners have managed to get fuel stocks under control by increasing crude processing very slowly as the economy has emerged from lockdown.

Last week refiners left processing unchanged after increasing it progressively since the start of May, demonstrating restraint in an effort to control inventories. Processing was still almost 2.8 million barrels per day (bpd), or 16%, below the five-year seasonal average over 2015-2019.

As MRC informed before, 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 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

Petronas plant will likely restart at the end of July

MOSCOW (MRC) -- Petronas Chemical's 1.7 million mt/year plant will likely restart at the end of July after a landslide in Labuan affected the gas feed to the plant. Rectification works are currently ongoing, said S&P Global.

The No.2 unit, which can produce 1.6mn t/yr of methanol, was taken off line last week. The producer did not specify the exact date of the shutdown.

But repairs are ongoing at affected parts of the complex and Petronas expects production to resume within this month.

"Rectification work is currently ongoing and progressing as planned. The rectification work is expected to be completed within this month," the producer said.

As MRC wrote before, in early May, 2020, Petronas Chemicals (Kuala Lumpur), Malaysia’s leading petrochemicals player, reported a drop in first-quarter sales and earnings citing the coronavirus disease 2019 (COVID-19) pandemic. The sharp decline in petrochemical product prices following the outbreak of COVID-19, the deepening industry downcycle as crude oil prices collapsed due to the OPEC+ fallout, and the recessionary global economic outlook have hurt results, the company says.

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.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

MRC

Formosa Petrochemical to reduce the run rate of its residual fluid catalytic cracker in Mailiao

MOSCOW (MRC) -- Taiwan's Formosa Petrochemical is expected to reduce the run rate of its residual fluid catalytic cracker after a fire at its number 2 residue desulfurization unit on July 15, said S&P Global.

There are two RFCC units, each with a propylene capacity of 330,000 mt/year, located near the RDS, which supplies feedstock to the RFCCs. Market sources familiar with the matter said the RFCC will not stop production, but it may operate at a lower rate.

As MRC informed earlier, Formosa Petrochemical Corp has shut a residue desulphurises (RDS) unit at its 540,000 barrels-per-day (bpd) Mailiao refinery after it was hit by a fire on 15 July. Mailiao is one of Asia’s 10 largest standalone refining plants. The sources said its no. 2 RDS, with a capacity of 80,000 bpd, had been affected by the fire.

As MRC informed earlier, Formosa Petrochemical plans to shut down its No.3 cracker in Taiwan for maintenance in mid-August, 2020. The 1.2-MMt/y No. 3 cracker is due to be offline until end-September.

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.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

Reliance to shut crude unit for maintenance

MOSCOW (MRC) -- Reliance Industries, operator of the world’s biggest refining complex in western Gujarat, will shut one of its crude refining units at its export-focused plant in the fourth week of July for 3-4 weeks of maintenance, said Reuters.

Other Refinery units are expected to operate normally during this period, the company said in a statement.

Reliance has two equal-size crude distillation units at the 704,000 barrel per day (bpd) export-focused refinery. This refinery at the Jamnagar complex is adjacent to a 660,000 bpd plant that mostly meets local fuel demand.

As MRC informed earlier, Reliance Industries says that due to unforeseen circumstances in the energy market as well as COVID-19, its talks with Saudi Aramco to form an oil-to-chemicals (O2C) partnership have not progressed according to the original timeline.

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.

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