Sinopec Zhongyuan starts turnaround at MTO plant in China

MOSCOW (MRC) -- Sinopec Zhongyuan Petrochemical, part of Sinopec Group, has taken off-stream its methanol-to-olefins (MTO) plant, as per Apic-online.

A Polymerupdate source in China informed that the company halted operations at the plant on July 24, 2020 for a maintenance turnaround. The plant is likely to remain off-line till early-November, 2020.

Located at Henan in China, the MTO plant has an ethylene and propylene capacity of 100,000 mt/year each.

As MRC reported earlier, Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), a 50-50 joint venture of Sinopec and SABIC, has shut its naphtha cracker in Tianjin on 1 May 2020 for routine maintenance work. The cracker is expected to remain off-line until early July 2020. The naphtha cracker is designed to produce 1 million tons/year of ethylene, which supplies several local buyers in the Tianjin area.

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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Omani OQ begins maiden production of polyethylene

MOSCOW (MRC) -- Omani energy firm OQ has started test runs at its new 880,000 t/yr polyethylene (PE) plant and begun bagging its first batch of polymer resins, said Chemweek.

The closely watched swing PE plant is Oman's first and located at the Liwa Plastics Industries Complex (LPIC), which also includes a 300,000 t/yr polypropylene (PP) unit.

Tecnimont, a major contractor of LPIC, said on 20 May that the unit achieved a safe start-up and produced its first polymer powder using imported ethylene.

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.

The OQ entity comprises state-owned oil company OOC, refiner Orpic and seven other domestic firms.

German chemicals company Oxea changed its corporate name to OQ Chemicals in mid-May, as it integrated into OQ.
MRC

Natural gas storage facility explodes in Mont Belvieu

MOSCOW (MRC) -- A fire broke out Wednesday following an explosion at the Lone Star NGL facility in Mont Belvieu, where a contractor struck an underground pipeline, reported Houston Chronicle with reference to officials' statement.

No injuries were reported. All facility workers had been accounted for, said Mont Belvieu city spokesman Brian Ligon.

The explosion sparked a large fire around 5 p.m. in the Lone Star NGL facility at 506 W. Winfree St. Firefighters were still working to suppress the flames as of 8 p.m. Wednesday night. The fire had dwindled significantly, and officials expected the fire to burn itself out overnight, according to a Facebook post from the city.

“MBFD and industrial units are continuing with suppression operations while the line bleeds out,” the city said. “We are very thankful that no plant employees or responders were injured during this incident or during the response.”

West Winfree Street and State Highway 146 remained closed late Wednesday.

Lone Star NGL is a subsidiary of Dallas-based Energy Transfer LP, one of the largest natural gas infrastructure companies in the US Company spokeswoman Lisa Coleman told the Houston Chronicle that a contractor struck an underground pipeline at 4:45 p.m.

In addition to Mont Belvieu firefighters, the company’s own fire team responded to the incident. Coleman said there were no evacuations.

Energy Transfer and the Baytown Fire Department late Wednesday began conducting air monitoring. Results did not show any levels of concern, Coleman said.

“There will be an investigation into the cause of this incident,” Coleman said. “Updates will be provided as information becomes available.”

Ligon added that there was “no public threat” from the fire.

Fractionators separate raw mixed NGLs, also called Y-grade, into purity components: ethane, propane, butane and natural gasoline. The US chemical industry relies predominantly on NGLs as a feedstock.

As MRC informed earlier, Enterprise Products was expected to restart its propane dehydrogenation (PDH) unit in Mont Belvieu, Texas, from maintenance last week. This PDH unit has the capacity of 750,000 mt/y of propylene.

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

According to MRC's DataScope report, 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

Chevron oil cargo tangled in U.S. sanctions on Venezuela

MOSCOW (MRC) -- A Chevron Corp crude oil cargo has become embroiled in U.S. sanctions on shipping companies for violating restrictions on doing business with Venezuela, the company confirmed, said Hydrocarbonprocessing.

Adamant Maritime Ltd, the owner of very large crude-oil carrier (VLCC) Seahero was sanctioned by the U.S. Department of Treasury on Tuesday for carrying a Venezuelan cargo in February. The vessel currently is heading to Asia after recently stopping in Trinidad and Tobago, according to vessel tracking data.

The tanker on short term charter and "performing a voyage that is not related to Venezuela," Chevron spokesman Ray Fohr said. "We are working with the appropriate government agencies to ensure compliance with U.S. laws and regulations," he said.

The U.S. Treasury Department sanctioned Adamant Maritime and three other shipping firms for transporting Venezuelan oil, the latest escalation in Washington's effort to oust President Nicolas Maduro by cutting off the OPEC nation's crude exports.

The Sea Hero’s manager was listed as Greek company Thenamaris, according to shipping data and Thenamaris’ website. The Athens based company did not immediately respond to a request for comment.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.

MRC

Chennai Petroleum, Indian Oil plan USD3.8-billion refinery including PP plant

TMOSCOW (MRC) -- The Board of directors of Chennai Petroleum Corporation Limited (CPCL) has proposed the implementation of the 9 MMTPA Refinery Project at Cauvery Basin Refinery, Nagapattinam district, to the Board of Indian Oil Corporation Limited (IOCL), said Business-standard.

CPCL plans to do this through a joint venture, at an anticipated cost of Rs 28,983 crore. This project encompasses a polypropylene unit apart from the refinery complex. The refinery complex will provide impetus for economic development of the region. As a preparatory step, operations at the refinery were ceased starting April 01, 2019. CPCL entered into a MoU with Government of Tamil Nadu for availing a structured package of incentives. Its request for additional land acquisition has also been permitted by Government of Tamil Nadu and Pondicherry.

CPCL and IOCL together will be holding 25 per cent stake each in the joint venture and the remaining 50 per cent would be held by a strategic/financial/public investor. The Board of CPCL has given in-principle approval to invest an amount till about Rs 2,500 crore in the joint venture, subject to required authorizations.

CPCL has two refineries located at Manali and Nagapattinam with a combined refining capacity of over 11.5 million tons per annum (MMTPA). Its main products include LPG, motor spirit, high-speed diesel, naphtha, bitumen, superior kerosene, aviation turbine fuel, lube base stocks, paraffin wax, hexane, fuel oil and petrochemical feed stocks.

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.

IOCL is engaged in refining business and its segments include sale of petroleum products, sale of petrochemicals and other businesses. Its other businesses segment includes sale of gas, explosives and cryogenics, wind mill and solar power generation, and oil and gas exploration activities.
MRC