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

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

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

MOSCOW (MRC) -- Huntsman reported a net loss of USD59m for the second quarter of 2020 compared with net income of USD118m in the equivalent period last year, said the company.

Sales were down 30%, at USD1.247bn. The coronavirus crisis severely impacted volumes in the quarter and prices fell on lower raw material costs. The company said its balance sheet remains strong with a net leverage of 1.5 times and total liquidity of approximately USD2.6bn.

"We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility,” said CEO Peter Huntsman. “With our transformed balance sheet, there was no need to access capital markets."

Sales volumes were down sharply in all the company’s operating segments, and by as much as 48% in Textile Effects and 31% in Advanced Materials. Volumes were down 16% in Polyurethanes but earnings before interest, tax, depreciation and amortisation (EBITDA) were down 80% for the segment. EBITDA for Huntsman’s third largest business, Advanced Materials, slumped 45%. Second-quarter adjusted EBITDA for the company as a whole was USD54m, down from USD245m in the prior year period.

“While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us," Peter Huntsman said.

The company expects to reach targeted USD100m cost savings, including savings related to recent acquisitions, by the end of 2021.

As MRC reported previously, in April 2020, to further aid in the fight against the COVID-19 pandemic, LyondellBasell (LBI) donated a key ingredient to Huntsman Corporation to produce hand sanitizer for US first responders.

We remind that, in January 2020, Indorama Ventures Public Company Limited (IVL), a global chemical producer, completed its acquisition of Huntsman’s world-class integrated oxides and derivative businesses, including a large flagship site on the US Gulf Coast (USGC) at Port Neches, as well as Chocolate Bayou and Dayton in Texas, Ankleshwar in India, and Botany in Australia, as per IVL's press release.

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

According to MRC's ScanPlast 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) -- Sahara International Petrochemical Co. (Sipchem) reported a net loss after Zakat and tax of SAR 151.8 million for the first half of 2020, compared to a net profit of SAR 325.6 million in the year-earlier period, said the company.

The loss was driven by lower netbacks on most products, a decline in sales volumes of acetic acid, vinyl acetate monomer, ethyl acetate and carbon monoxide, as well as unplanned shutdown and turnaround maintenance at Al Waha.

Furthermore, Sipchem’s net loss includes results from Sahara Petrochemicals Company for the full six months in the current period. In contrast, the prior period only includes Sahara Petrochemicals Company results for one month.

The company reported a net loss after Zakat and tax of SAR 99 million in Q2 2020, compared to a net profit of SAR 201.9 million a year earlier, due to lower sales volumes and lower netbacks for most products.

As MRC informed earlier, 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.

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.

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