Fire under control after explosion at Synthos chemical site in Poland

MOSCOW (MRC) -- A blaze is now under control at the Synthos Dwory (Oswiecim) 185,000 metric-ton/year (mt/y) emulsion styrene butadiene rubber (ESBR) facility in Poland, following an explosion last Thursday, reported Chemweek.

"At 6:46 p.m. (local time), an uncontrolled ignition catalyzed an explosion and a fire in the incinerator of the ESBR rubber production installation. The fire fighting operation began immediately. The fire was extinguished by the teams of the company firefighters and the state fire brigade within about 45 minutes," Synthos said in a statement Friday.

Windows in nearby halls were damaged, pipelines discharging off-gases from the rubber drying installation were also damaged, according to the Synthos Group, who are currently holding an investigation with local authorities into the cause and extent of the damage.

Production at the ESBR production unit in Oswiecim, Poland, has been idled, the company confirmed to OPIS.

"We expect to go back to standard operating rates at the beginning of next week," the producer said. The explosion had "no significant impact on other production facilities," Synthos added.

The idling of production comes as ESBR rubber supplies have been under pressure for a while, according to IHS Markit analysts.

"Synthos are the number one ESBR producer in Europe," said Remko Koster, associate director global olefins at IHS Markit. "The plant in Poland is about 30% of Europe's ESBR capacity. Meanwhile the ESBR market has been rather tight in the last quarter of 2020 so there will be an impact felt in the market."

Synthos produces 120,000 mt/y of styrene and 105,000 mt/y of expandable polystyrene (EPS) at the Oswiecim site. It also produces 50,000 mt/y of polystyrene (PS) at Oswiecim, according to IHS Markit data. It also manufactures synthetic rubber, adhesives, and latex.

As MRC informed earlier, Polish chemicals and plastics group Synthos has launched a new eco-friendly EPS grade for heat insulation panels which includes recycled polystyrene raw material. Synthos, headquartered at Oswiecim in southern Poland, started extruding the product, ‘InVento Optima’ on a dedicated line installed at its base manufacturing site at the end of 2018.

SM is the main feedstock for the production of PS.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 454,990 tonnes in the first eleven months of 2020, which corresponds to the previous year's figure. November estimated consumption of PS and styrene plastics grew by 4% year on year to 45,830 tonnes.

Synthos SA is one of the largest producers of petrochemical products in Poland and is the largest producer of emulsion rubbers in Europe. Besides, it is the third largest European EPS producer.
MRC

MOSCOW (MRC) -- Alstom will supply six hydrogen fuel cell trains, with the option for eight more, to FNM (Ferrovie Nord Milano), the main transport and mobility group in the Italian region of Lombardy, for a total amount of approximately EUR160 million, said Hydrocarbonprocessing.

The first train delivery is expected within 36 months of the date of the order. The new hydrogen trains will be based on Alstom’s Coradia Stream regional train platform, which is dedicated to the European market and already being produced for Italy by Alstom’s main Italian sites. The hydrogen powered Coradia Stream for FNM, will be equipped with the same fuel cell propulsion technology that was introduced to the world by the Coradia iLint. The hydrogen Coradia Stream will maintain the high standards of comfort already appreciated by passengers of its electric version. The hydrogen version will match the operational performance of diesel trains, including their range.

"We are immensely proud to be introducing hydrogen train technology to Italy, and we recognise the trust placed in us by our Italian customer. This development confirms Alstom’s role in defining the future of mobility. These trains, together with the Coradia iLint that have already proven themselves in commercial service in Germany, represent another major step in the transition towards global sustainable transport systems. I take this opportunity to congratulate FNM for demonstrating that they are a leader in this area," says Gian Luca Erbacci, Senior Vice President of Alstom Europe.

The Coradia iLint is the world’s first passenger train powered by a hydrogen fuel cell, which produces electrical power for traction. This zero-emission train emits low levels of noise, with exhaust being only steam and condensed water. The iLint is special for its combination of different innovative elements: clean energy conversion, flexible energy storage in batteries, and smart management of traction power and available energy. Specifically designed for operation on non-electrified lines, it enables clean, sustainable train operation while ensuring high levels of performance.

The Coradia Stream trains for FNM are manufactured by Alstom in Italy. Project development, most of the manufacturing and certification are performed at Alstom’s site in Savigliano. The on-board signalling systems are delivered by the Bologna site.

As MRC informed previously, Shell said in late December, 2020, it expects improved base and intermediate chemicals margins in the fourth quarter compared with the third quarter of 2020. The company did not give specific estimates for the forecast margins in a trading update for the fourth quarter.

We remind that Royal Dutch Shell plc. said in November, 2020, that its petrochemical complex of several billion dollars in Western Pennsylvania was about 70% complete and was in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Dow chairman and CEO Jim Fitterling is N1 in the 2020 ICIS Top 40 Power Players, a global ranking of the leading CEOs and senior executives making the greatest positive impact on their companies and the industry, said the company.

"With a sharp focus on ESG (environmental, social and governance), Fitterling is leading Dow in a new direction through capital disciplined growth combined with sustainability, featuring exciting initiatives in plastics recycling and 'zero carbon crackers'," said Joseph Chang, global editor of ICIS Chemical Business.

Under Fitterling, Dow is accelerating its sustainability goals, aiming to take out around 5m tonnes/year of carbon dioxide (CO2) emissions from its 2020 baseline by 2030 - a 15% reduction - and getting to carbon neutral by 2050.

By 2030, Dow aims to enable 1m tonnes of plastic to be collected, recycled or reused through direct actions and partnerships, and by 2035 have 100% of its packaging products be recyclable or reusable.

"The company's new culture of capital discipline has also served stakeholders well through the coronavirus pandemic as its strong balance sheet served as a buffer from extremely challenging business conditions," noted Chang.

In the 2020 ICIS Top 40 Power Players ranking, Saudi Aramco president and CEO Amin Nasser came in second, followed by Solvay CEO Ilham Kadri.

The ICIS Top 40 Power Players ranking is based on selections by the global ICIS senior editorial staff.

In the 2020 ICIS Top 40 Power Players ranking, Saudi Aramco President and CEO Amin Nasser came in second, followed by Solvay CEO Ilham Kadri. The ICIS Top 40 Power Players ranking is based on selections by the global ICIS senior editorial staff.

As MRC informed earlier, Adriano Alfani, senior global business director at Dow, has been named new CEO of Versalis, effective 1 January. Daniele Ferrari, who has served as Versalis CEO since February 2011, will leave the company at the end of the year. Alfani started his career at Versalis predecessor EniChem and has been with Dow since 2001.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Indian Oil Corp (IOC) , the country's top refiner, has loaded its first cargo of Iraq's newly introduced Basra Medium crude grade, according to Reuters with reference to ship tracking data from Refinitiv Eikon and a source with knowledge of the matter.

IOC loaded the cargo onto Minerva Kalypso, a suezmax-sized vessel, which left Iraq's southern port of Basra on Jan. 4, the data showed.

The ship is expected to arrive at Chennai port in southeastern India for IOC's subsidiary Chennai Petroleum Corp (CPCL) around Jan. 14.

Iraq's state oil marketing company (SOMO) launched the new sour crude grade in January by splitting existing Basra Light production into two grades to provide better quality stability.

"From this year IOC will get all three grades - Basra Light, Basra Medium and Basra Heavy - depending on the availability with the supplier," the source said, adding that the 1 million barrels of Basra Medium crude would go to CPCL.

Along with Chennai Petroleum, IOC controls about a third of the 5 million bpd of refining capacity in India.

"CPCL has been procuring Basra Light and Basra Heavy crude oil from Iraq and Basra Medium was procured recently for the first time, this is after the introduction of this grade by SOMO supplier to the market for the first time," the company said in a statement to Reuters.

Iraq has increased crude exports by introducing Basra Medium after the Organization of the Petroleum Exporting Countries and its allies agreed to raise output by 500,000 barrels per day (bpd) in January.

"Basra Medium helps fill the gap of a shortage of heavy oil globally due to sanctions on Iran and Venezuela, declining production in Colombia and Mexico and OPEC+ quotas," analytics firm Kpler said.

As MRC reported earlier, India’s top refiner Indian Oil Corp has been operating at 100% capacity since early November, 2020, as local fuel demand has recovered, its chairman S.M. Vaidya said late last year. IOC has been gradually raising crude runs at its plants, which plunged to about 39% at the beginning of April when a nationwide coronavirus lockdown hit fuel demand.

We remind that IOC is expanding its petrochemical capacity by more than 70% from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

MOSCOW (MRC) -- Sasol has completed the USD$404-million sale to Ineos of its 50% equity stake in the companies’ Gemini high-density polyethylene (HDPE) manufacturing joint venture (JV) at La Porte, Texas, said Chemweek.

The planned divestment, first announced by Sasol in November 2020, was successfully closed on 31 December.

The sale total was satisfied through a combination of cash and release from debt obligations, Sasol says in an announcement to the Johannesburg stock exchange. “The relevant debt facilities and security package have now been successfully restructured, releasing Sasol and its subsidiaries from any obligation to provide further security,” it says. The cash proceeds from the transaction were received on 31 December and will be used by Sasol to repay near-term debt obligations, it says. No value for the final cash amount received was given.

Ineos Olefins and Polymers (O&P) USA, a wholly-owned subsidiary of Ineos, is now the sole owner of the 470,000-metric tons/year Gemini HDPE unit. Ineos has operated the plant, located within the company’s Battleground manufacturing complex, since its start-up in 2017. Ineos said at the time of the announcement in November that the purchase would allow it to “further expand its reach” in the rapidly growing specialty PE markets for pressure-pipe and high-molecular-weight film.

Ineos has four other HDPE production plants with 767,000 metric tons/year of total capacity at Deer Park, Texas, according to IHS Markit data.

Sasol closed a USD2-billion transaction with LyondellBasell in December that saw the two companies formally set up an integrated polyethylene (PE) joint venture (JV) at Lake Charles, Louisiana, with LyondellBasell acquiring 50% ownership of Sasol’s new 1.5-million metric tons/year steam cracker, and low-density polyethylene (LDPE) and linear low-density polyethylene (LLDPE) plants.

As MRC informed earlier, in September 2020, Air Liquide 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%. 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.

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. Sasol's new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities that came online and will provide feedstock to the company's six new derivative units at Sasol's Lake Charles multi-asset site.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC