Brenntag acquires caustic soda distribution business in the US

MOSCOW (MRC) -- Brenntag says it has acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed, said Chemweek.

"The business and the related terminals of Suffolk Solutions fit seamlessly into our ambitions to further link Brenntag’s caustic soda network in the eastern United States. There is great potential to strengthen our supply chain and expand our customer base in this geography,” says Steven Terwindt, Brenntag board member/North America.

Suffolk Solutions has access to a bulk terminal as well as to a rail transloading facility in Virginia. The acquired business generated sales of approximately $15.6 million in the 12 months ended 30 April 2020.

“Suffolk Solutions will strengthen Brenntag’s footprint in the Virginia market and thus will enable us to improve our logistical infrastructure throughout the region,” Anthony Gerace, managing director/mergers and acquisitions at Brenntag says. "It will provide us with greater supply flexibility, manoeuvrability, and additional storage capacity on the east coast of the United States."

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.
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COVID-19 - News digest as of 07.08.2020

1. Borealis net earnings decline, major project schedules to suffer slippage

MOSCOW (MRC) -- Borealis (Vienna, Austria) has reported a net profit of EUR64 million (USD76 million) for the second quarter of 2020, down 80% year on year (YOY), and says its major growth investment projects will suffer delays of between “a couple of weeks and a few months” due to the COVID-19 pandemic, reported Chemweek. The company’s 625,000-metric tons/year steam cracker at Stenungsund, Sweden, is also expected to remain offline until the fourth quarter of this year, it says, following a fire in May that saw the unit shut down and force majeure declared.





MRC

Westlake earnings, sales decline on lower volumes due to COVID-19

MOSCOW (MRC) -- Westlake reported second-quarter net income of USD15 million, down 87.4% year-on-year (YOY), on net sales down 20.3%, to USD1.71 billion. Earnings totaled 11 cents/share, beating analysts’ consensus estimate of 0 cents/share, as reported by Refinitiv (New York, New York), said Chemweek.

Demand declined in the quarter, as did prices, for caustic soda and downstream vinyl products, as a result of the COVID-19 pandemic and the drop in oil prices. "The second quarter of 2020 was challenging as we navigated the global COVID-19 pandemic, which significantly reduced global demand for our products, as well as a sharp decline in global oil prices,” says Westlake president and CEO Albert Chao.

Vinyls segment sales declined 19.1% YOY, to USD1.35 billion, while segment operating income was down 84.5%, to $20 million. “This decrease in income from operations versus the prior-year period was primarily due to the continued impact of COVID-19 and a sharp drop in global oil prices, which led to lower global sales prices for our major products and lower sales volumes for caustic soda and downstream vinyl products,” Westlake says.

Olefins segment sales fell 24.3% YOY, to $361 million, while segment operating income was down 69.5%, to USD25 million. “This decrease in income from operations versus the prior-year period was primarily due to lower sales prices for polyethylene resulting from the impact of COVID-19 and the drop in global oil prices, which were partially offset by higher polyethylene sales volumes and lower feedstock and fuel costs,” Westlake says.

Partially offsetting the lower prices and volumes were lower ethane feedstock and fuel costs, reduced operating and selling, general and administrative expenses as well as lower costs associated with planned turnarounds. “We are confident that Westlake is well positioned to continue to serve the needs of our customers while managing working capital, lowering our operating costs and reducing capital expenditures,” said CEO Albert Chao.

The improvement was due to higher earnings on ethylene sold to Westlake Chemical from Westlake Chemical OpCo LP (OpCo) and lower manufacturing and selling, general and administration costs, partially offset by lower ethylene production. Westlake Chemical Partners owns a 22.8% interest in OpCo, which has three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana and an ethylene pipeline.

In February 2018, as MRC informed before, Westlake Chemical announced plans to expand its capacities for the production of PVC and VCM at three of its chemical facilities. Two of the plants are located in Germany (Burghausen, Gendorf) and one is located in Geismar, Louisiana. The expansions in Burghausen and Geismar are expected to be completed in 2019. The Gendorf expansions are expected to be completed in 2020 and 2021.

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

Brooge Energy commences hydrotesting for storage facility expansion

MOSCOW (MRC) -- Brooge Energy Limited, a midstream oil storage and service provider strategically located outside the Strait of Hormuz, adjacent to the Port of Fujairah in the United Arab Emirates (“UAE”) through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE (“BPGIC”), announced it has commenced hydrotesting for its Phase II storage facility expansion, an important milestone that signifies the advanced stage of the terminal’s development, said Hydrocarbonprocessing.

With the commencement of all the necessary hydrotests, the development of the Phase II facility has now entered into some of the testing stages required of the construction process. Hydrotesting is considered a major milestone of this process confirming the tank integrity. Once Phase II construction is finalized, the facility will increase the Company’s total geometric oil storage capacity to approximately 1 million m3 or 6.3 million barrels, from its current geometric capacity of approximately 400,000 m3, or 2.5 million barrels, and also enables the Company to offer crude oil storage using some of the latest technology to enhance Company performance and operational efficiency.

Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said, "We are nearing an advanced and important leg of the construction of our Phase II oil storage facility and are very pleased to reach this milestone, notwithstanding the current challenges due to ongoing restrictions. Once completed, we believe this facility will make us the second largest non-captive storage provider in Fujairah. The facility is already fully contracted on a multi-year basis so will be operating at full capacity and revenue-generating as soon as it is operational and past the testing and commissioning stage."

As MRC informed earlier, in July, Bharat Petroleum Corp. Ltd. (BPCL) has let a contract to Dastur International Inc. and Lummus Technology LLC to jointly execute a feasibility study for a petcoke gasification project at BPCL’s 15.5-million tonne/year (tpy) Kochi refinery at Ambalamugal, Ernakulam district, in the Indian state of Kerala.

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

LyondellBasell extinguishes hydrotreater fire at Houston refinery

MOSCOW (MRC) -- LyondellBasell Industries confirmed it extinguished a fire at a hydrotreater on Thursday morning at its 263,776-barrel-per-day (bpd) Houston refinery, reported Reuters.

No injuries were reported from the fire, which broke out at about 5:30 a.m. CDT on Thursday (1030 GMT), Lyondell spokeswoman Chevalier Gray said.

Sources familiar with plant operations said the 49,000-bpd 634 cat feed/heavy gas oil hydrotreater was shut by the blaze. The extent of damage to the unit was unknown on Thursday.

The fire broke out after a sightglass on the unit broke, the sources said.

Gray did not identify the hydrotreater on which the fire broke out.

“A leak in one of the hydrotreater units occurred resulting in a fire that was quickly contained and extinguished within 30 minutes,” she said.

The refinery’s safety flares operated for about an hour and 15 minutes because of the fire, Gray said.

The hydrotreater uses hydrogen to remove sulfur from diesel to comply with US environmental rules.

This is the second fire at the Lyondell refinery this year. A February fire shut the gasoline-producing fluidic catalytic cracker (FCC), which was repaired and returned to production in mid-April.

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.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC