Air Liquide finalises deal with Sasol

MOSCOW (MRC) -- Air Liquide has finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%, said Gasworld.

After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

The solution provided by Air Liquide would allow, in coordination with energy and chemical company Sasol, a targeted reduction of 30% to 40% in CO2 emissions arising from the oxygen production by 2030.

Under the terms of the business purchase agreement, Air Liquide will own and operate the 16 air separation units (ASUs) of this site, with an installed capacity of 42,000 tons/day, in addition to the unit it already operates.

Subsequent to the acquisition, Air Liquide will supply various gases to Sasol’s operation under a long-term gas supply agreement with an initial term of 15 years.

The amount of the initial investment would be approximately 8.5 billion South African Rand (circa 440 million euros).

The agreements are subject to usual suspensive conditions (notably the South African Competition Authority’s approval), which should not be fulfilled earlier than December 2020.

We remind that Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. SasolпїЅs new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at the company"s Lake Charles multi-asset site.

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.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

MOSCOW (MRC) -- Saudi Polymers, part of National Petrochemical Co. (Petrochem), has undertaken an unplanned shutdown at its two High density polyethylene (HDPE) units, according to Apic-online.

A Polymerupdate source in Saudi Arabia informed that the company shut the units owing to technical issues in end-August, 2020. The units are expected to remain off-line for a period of around 30-35 days.

Located at Al Jubail, Saudi Arabia, the two HDPE units has a production capacity of 550,000 mt/year each.

As MRC reported earlier, in late June, 2020, Petrochem said that the board of directors of its subsidiary, Saudi Polymers Co., decided to shut down the polystyrene (PS) unit and amortize its value, due to difficulties in achieving profits amid the global polystyrene market conditions.

According to MRC's ScanPlast report, Russia's HDPE production totalled 1,040,000 tonnes in the first seven months of 2020, up by 84% year on year. ZapSibNeftekhim accounted for the main increase in the output.

The National Petrochemical Company (NPC), a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country's petrochemical sector.
MRC

MOSCOW (MRC) -- Overall production of polyvinyl chloride (PVC) reached 632,500 tonnes in the first seven months of 2020, which in fact corresponded to the last year's figure. Two producers managed to increase their PVC output, according to MRC's ScanPlast report.

August production of unmixed PVC grew to 75,500 tonnes from 47,700 tonnes a month earlier, a month earlier, the low figures in July were due to the planned shutdown at SayanskKhimPlast and RusVinyl. Overall output of polymer were 632?500 tonnes in the first eight months of 2020 from 631,100 tonnes a year earlier, only two producers increased their production volumes, and cut RusVinyl PVC production.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (JV of SIBUR and SolVin) produced about 26,100 tonnes of PVC in August, with emulsion polyvinyl chloride (EPVC) accounting for 2,000 tonnes, compared to 19,200 tonnes a month earlier. RusVinyl shut its PVC production capacities for a scheduled maintenance works on 14 July. RusVinyl's overall SPVC output reached 216,100 tonnes in the first eught months of 2020, compared to 226,400 tonnes a year earlier.

SayanskKhimPlast produced less than 20,500 tonnes of suspension PVC (SPVC) in August, whereas this figure was about 4,000 tonnes in July.
SayanskKhimPlast shut its PVC production capacities for a scheduled maintenance works on 8 July. The Sayansk plant managed to produce about 184,900 tonnes of PVC in January-August, compared to 184,900 tonnes a year earlier.

Bashkir Soda Company (BSK) reduced the capacity utilisation in August, the final production figure exceeded 21,800 tonnes against 23,600 tonnes a month earlier. The Baskhir plant's overall production of PVC reached 176,100 tonnes in January-August 2020, up 4% year on year.

Kaustik Volgograd' PVC production was 7,100 tonnes in August versus 7,200 tonnes in July. The plant's overall production of PVC exceeded 50,800 tonnes in the first eight months of 2020 versus 50,700 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Momentive invests in electronic materials production at Waterford, New York, said Chemweek.

Momentive Performance Materials announced on Wednesday that it will invest USD15 million to expand electronic materials production at its Waterford, New York facility. There is growing demand across aerospace, 5G telecom, automotive electronics, and other markets for the company's products. This immediate investment will drive enhanced assets and capabilities that will be operational in 2021 in Waterford and is part of a larger USD40 million investment globally to drive electronic materials growth.

"This investment is a key milestone in our global leadership in silicone innovation," said Sandip Tyagi, President and General Manager of Momentive's Formulated Specialties business. "Customer needs are constantly changing with the rapid advancement of electric vehicles and autonomous driving, cutting-edge innovations in aerospace, new-product approaches in health and wellness, and continued expansion of telecommunications. Our continued investment ensures we are able to stay at the forefront of these innovations and support our customers in developing the next generation of products."

"Major components of this investment will include new production, packaging, labeling, testing, and shipping capabilities. Once these investments are operational, Momentive will be even better equipped to meet customized needs, where required, for unique processes and capabilities. These include low out-gassing, high thermal and electrical conductivity, high strength, high temperature stability and adhesion to special substrates," said Mark Fraser, Global Business Leader for the Electronics business.

As MRC informed earlier, Momentive Performance Materials Inc. (Waterford, N.Y.) outlined a series of steps to accelerate its global transition from commodity basics chemicals to specialty silicones – actions that will focus the company’s strengths and expertise on advanced technologies.

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

MOSCOW (MRC) -- Crude oil futures were lower in mid-morning trade in Asia Sept. 9 as the global crude complex continued to grapple with a weak demand outlook at the end of the US driving season and a rise in COVID-19 infections worldwide, reporte S&P Global.

At 10:46 am Singapore time (0246 GMT), ICE Brent November crude futures were down 20 cents/b (0.50%) from the Sept. 8 settle at USD39.58/b, while the NYMEX October light sweet crude contract was 24 cents/b (0.65%) lower at USD36.52/b.

"Downward pressure on oil has continued, with ICE Brent futures closing more than 5% lower yesterday, and crucially below the $40/b level. There was no clear catalyst for the move, however a stronger US dollar and weaker equities would have done little to help sentiment, not just for oil, but the broader commodities complex," ING analysts said in a note Sept. 9.

The global crude complex has retreated in recent days as a multitude of negative factors weighed heavily on market sentiment. These include the end of the US driving season and the start of the extended maintenance season for US refineries, which will see a tapering of demand for gasoline and crude, as well as slower buying by China in August as its stocks approach maximum storage capacity.

Combined with a stronger dollar and weaker risk sentiment, which further dented demand across the commodities complex, ICE Brent futures have fallen 13.7% in two weeks since settling at USD45.86/b Aug. 25, a two-week high, while WTI has fallen 15.8% since settling at USD43.39/b on Aug. 26, S&P Global Platts data showed.

As a result, front-month inter-month timespreads for ICE Brent futures have turned significantly more bearish, with the November/December timespread assessed at minus 55 cents/b Sept. 8, Platts data showed.

"Timespreads continue to edge deeper into contango, while the physical market is weaker; over the last few days we have had both Aramco from Saudi Arabia and Abu Dhabi National Oil Company, or ADNOC, from the UAE cutting official selling prices for their crude oil. Both of their flagship grades are now at discounts to their benchmark, which is not a great signal for demand," ING analysts said in a note Sept. 9.

ADNOC set the October OSP for its flagship Murban crude at Platts Dubai minus 50 cents/b, down USD1.35/b from September, and medium sour Upper Zakum grade at a discount of 70 cents/b against Platts Dubai, down USD1.35/b, Platts earlier reported.

Meanwhile, global COVID-19 infections continue to rise to more than 200,000 infections/day, while global deaths approach the 900,000 mark, latest John Hopkins University data showed.

Market participants were awaiting the release of weekly US inventory reports by the American Petroleum Institute later Sept. 9 and the Energy Information Administration on Sept. 10 for fresh cues on price direction.

At 10:46 am Singapore time (0246 GMT), the US dollar index stood at 93.510, up 0.07% from the previous close at 93.441, while the NYMEX October RBOB stood at USD1.0985, down 0.39% from its previous settle at USD1.1028/gal.

As MRC informed before, Abu Dhabi National Oil Co, the UAE's biggest energy producer, and Abu Dhabi conglomerate ADQ will set up an investment platform to fund local chemicals projects amid a push to invest USD45 billion in downstream activities. The joint venture will oversee the development of projects in the planned Ruwais Derivatives Park, which is part of the Ruwais industrial hub in the emirate of Abu Dhabi, ADNOC said in its statement in late July. The venture will allow ADNOC to further its aims to boost operations in petrochemicals and other downstream lines. It didn't disclose funds being made available.

We remind that in early May, 2020, ADNOC began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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