Chevron Phillips Chemical leaves force majeure for PE in USA in force

MOSCOW (MRC) -- Chevron Phillips Chemical still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations, reported S&P Global.

The force majeure circumstances were declared on 1 September, 2020.

CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur.

The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

As MRC informed earlier, on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day (bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible," the company reported on August, 19.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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

LSB seals nitric acid supply deal

MOSCOW (MRC) -- LSB Industries (Oklahoma City, Oklahoma) has signed a long-term contract to supply up to 100,000 metric tons/year of nitric acid to an unnamed customer. No value for the contract has been given, said Chemweek.

The company will supply between 70,000-100,000 metric tons/year, with sales expected to begin in the first quarter of 2021, it says. The contract “advances one of our key operating initiatives to leverage our underutilized nitric acid production capacity at our El Dorado [Arizona] facility,” says president and CEO Mark Behrman.

The latest deal is the result of focused efforts by LSB “to sell our excess production capacity and change product mix in order to enhance our margins. We expect these agreements, when combined with the impact of a new fertilizer storage facility that we completed construction on in April, will provide a meaningful increase in incremental annual EBITDA when fully implemented,” he says.

As MRC informed earlier, Spain-based La Seda de Barcelona (LSB) is planning to dispose of its PET polymer and raw material plants to raise new capital to develop its PET and chemical operations. LSB has PET plants in Spain, Italy, Greece and Turkey and raw material chemical units in Spain and Portugal. The company wants to sell the plants only if it is unable to get the help of other industrial partners to form a joint venture in order to support its chemical operations.

We remind that Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts. According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes. August production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.
MRC

NOVA Chemical to restart its Geismar cracker later this week

MOSCOW (MRC) -- NOVA Chemical is expected to restart its cracker in Geismar, Louisiana, later in the week of October 12, reported S&P Global.

The 928,000 mt/year cracker in Geismar was shut in mid-September for unplanned repairs unrelated to storms in the USA. The company postponed the restart until after Delta passed, the storm impacts were minimal.

As MRC informed earlier, NOVA Chemicals has resumed construction activities in a phased approach at its Corunna site. The company said on April 16 it will gradually increase the number of workers involved in construction of the new polyethylene (PE) plant and the cracker expansion project. NOVA announced in late March that it was sending home the majority of the construction workers at the Corunna site to reduce the risk of exposure to COVID-19.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
MRC

Lummus announces ethylene cracking furnaces award in Uzbekistan

MOSCOW (MRC) -- Lummus Technology today announced that it has been awarded a contract by Enter Engineering Pte. Ltd. for the Shurtan Gas Chemical Complex in Uzbekistan. Lummus’ scope includes the design and supply of four proprietary Short Residence Time VI and VII type cracking furnaces, which will more than double the production of ethylene at Shurtan’s facility, said the company.

“Our advanced SRT® ethylene furnaces optimize reliability in capacity, yield, run-length and energy efficiency,” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “We are grateful to continue our partnership at Shurtan and look forward to working with Enter Engineering to expand the ethylene production while reducing relative emissions and operating costs at the Shurtan Gas Chemical Complex."

As MRC informed earlier, Lukoil is planning a 280,000-metric tons/year PP plant at its integrated refinery and
petrochemicals facility at Burgas, Bulgaria. Lummus Technology has been awarded a contract by Lukoil (Moscow, Russia) to license its Novolen polypropylene (PP) process for a new 280,000-metric tons/year PP facility in Burgas, Bulgaria. The value of the contract and the timescale has not been disclosed.

Lummus Technology’s technology was also selected by Lukoil in September for a new 500,000-metric tons/year PP production unit at Kstovo, Russia. Kstovo is one of Lukoil’s largest refineries in Russia with a throughput of 17 million metric tons/year.

According to ICIS-MRC Price report, Poliom took off-stream its PP production for the scheduled maintenance on 2 September; the shutdown will take a little more than two weeks. The plant's annual production capacity is 230,000 tonnes. It is also worth noting that Ufaorgsintez also shut its production capacities for a scheduled turnaround on 12 September, the outage will last until 10 October.

Lummus was selected due to its leading ethylene technology position and its extensive experience with ethylene furnaces, having developed pyrolysis furnaces as part of its proprietary equipment portfolio. The first generation of the pyrolysis heater—called SRT-I (Short Residence Time)—was developed in the mid-1960s. Since then, seven generations of SRT® pyrolysis furnaces have been commercialized. The most widely-selected SRT furnaces include SRT-III, SRT-V, SRT-VI and SRT?VII. Lummus has provided more ethylene furnaces than any other ethylene process licensor, representing more than 40 percent of worldwide capacity.
MRC

Shell to carry out Pernis oil refinery maintenance on one unit

MOSCOW (MRC) -- Royal Dutch Shell announced it plans to carry out major maintenance work on a unit at its Pernis oil refinery in the Netherlands from mid-October to end November, reported Reuters.

The company did not specify the unit involved.

Pernis is Europe’s largest oil refinery with a capacity to process 404,000 barrels per day.

As MRC wrote previously, a unit failure at Royal Dutch Shell’s Pernis oil refinery in Rotterdam was resolved on August 17, 2020.

We remind that Shell will announce a major restructure by the end of the year as the company prepares to accelerate its shift toward its net-zero emissions goal by 2050, said CEO Ben van Beurden to employees. The restructuring will include workforce reductions as part of broader cost-cutting measures, although no figures have been decided yet, the CEO reportedly said during an internal webcast.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC