OQ Chemicals hikes oxo intermediates prices on rising demand, raw material costs

MOSCOW (MRC) -- OQ Chemicals (Monheim am Rhein, Germany) has announced price increases in the Americas for its oxo intermediate products due to strong demand and increasing raw material costs, according to Chemweek.

The rise in prices for oxo alcohols and oxo acetate esters is effective as of 1 February 2021 or as contracts allow.

In North America and Mexico, the price of 2-ethylhexanol (2-EH) will increase by USD0.07/lb, while n-butanol, isobutanol, n-butyl acetate, and isobutyl acetate will rise by USD0.06/lb. N-propanol and n-propyl acetate prices will increase by USD0.05/lb.

In South America the price of 2-EH is being increased by USD154/metric ton, while n-butanol, isobutanol, n-butyl acetate, and isobutyl acetate will rise by USD132/metric ton. Prices for n-propanol and n-propyl acetate are being increased by USD110/metric ton.

OQ also raised prices on 1 January for oxo intermediates due to rising raw material costs and increased demand.

As MRC reported earlier, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

MOSCOW (MRC) -- Sabic introduced LNP COLORCOMP WQ117945 compound, a breakthrough material based on advanced nanotechnology that facilitates efficient production of polyethylene terephthalate (PET) foams for core materials in sandwich structures, said the company.

This new compound improves control over nucleation and cell growth, resulting in decreased cell size and uniform, narrower cell size distribution. These attributes can reduce the foam’s weight by minimizing resin uptake in sandwich structures. It can also potentially improve shear strength/strain properties for better fatigue performance. Enhancing PET foams with Sabic new LNP COLORCOMP compound can address the evolving needs of multiple industries, including marine, building and construction, packaging and wind energy.

"Our novel LNP COLORCOMP WQ117945 compound may help to expand adoption of PET foam materials in a wide range of applications, from building insulation and cladding, to boat hulls and decks, to the core of wind turbine blades,” said Sunamita Anunciacao, LNP Business Development Manager, Sabic. “In addition to improving PET foam’s mechanical properties, our technology helps reduce weight, which opens new opportunities for sustainability. For example, lighter foam core materials can allow designers to create longer, more-efficient wind blades. Lighter materials also reduce environmental impacts from shipping. Working with our customers, Sabic continues to develop solutions that advance multiple aspects of performance and sustainability."

Disposal of wind blades is becoming a global concern. Due to their huge size and complexity, most blades are currently sent to landfills. The adoption of PET foams in the core of wind turbine blades offers the industry a strong, light, recyclable option over incumbent materials, such as balsa wood and PVC foam.Weight reduction is also a key issue in wind blade design. Extending blade length to increase the amount of captured energy adds significant weight to the blade. SABIC’s LNP COLORCOMP WQ117945 compound can significantly reduce foam cell size (as much as three-fold) compared to standard nucleating agents such as talc, while decreasing cell size disparity by a factor of up to five. These factors help to reduce resin uptake by the foam during composite manufacture, resulting in a lighter-weight blade.

In terms of strength and other mechanical properties, high-density PET foams can potentially compete with balsa wood, while avoiding wood’s natural variations. Further, as thermoformable polymers, PET foams offer greater freedom in the design and shaping of wind blades as compared to balsa. They also offer stable supply, cost-effectiveness, consistent material properties and much less resin uptake.

Besides being used as an effective nucleating agent for foaming processes such as extrusion foaming, injection foaming and bead foaming, Sabic new nanotechnology solution can also act as a rheological modifier for improving melt strength and thermoformability. The nanotechnology SABIC is using can be adapted for other resins besides PET, making it a good candidate for use in a wide range of different industries.

As MRC informed earlier, Gazprom, the largest energy company in the world, has resumed negotiations with the Saudi oil and gas chemical company SABIC, which it wants to attract as a co-investor in a project to create a large gas chemical complex (GCC) on the basis of the Bovanenkovo cluster in Yamal.

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

According to MRC"s DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

MRC

MOSCOW (MRC) -- The board of Tikkurila (Helsinki, Finland) says it “unanimously recommends” that the company’s shareholders accept a planned tender offer for the company from PPG Industries, reported Chemweek.

PPG’s offer will be at EUR27.75/share, valuing Tikkurila at about EUR1.24 billion (USD1.50 billion), after PPG raised its bid price on 5 January in response to a competing offer from an unspecified company. The Tikkurila board says in a statement that its assessment of PPG’s revised bid took the rival offer into consideration.

PPG’s original offer price, announced on 18 December, was EUR25.00/share. PPG and Tikkurila confirmed with that announcement that PPG would make a recommended voluntary public cash tender offer to acquire all the issued and outstanding shares in Tikkurila. The tender offer is due to be published on or about 15 January.

The Tikkurila board has also confirmed that some of the company’s major shareholders, representing in aggregate approximately 29.39% of the shares and votes in the company, have, subject to certain customary conditions, irrevocably undertaken to accept PPG’s tender offer at the revised price. The shareholders are Oras Invest, Varma Mutual Pension Insurance Co., Mandatum Life Insurance Co., and Kaleva Mutual Insurance Co.

Completing the tender offer is subject to certain conditions, including PPG gaining acceptance from shareholders representing more than 90% of the shares and voting rights in Tikkurila. If PPG passes this threshold, it intends to initiate proceedings, under Finnish law, to acquire the remaining shares in Tikkurila, causing Tikkurila’s shares to be delisted from the Nasdaq Helsinki exchange “as soon as permitted and practicable under applicable laws and regulations,” the Tikkurila board says.

The tender-offer period is expected to expire on or about 15 March and the offer is expected to be completed during the first half of 2021, the Tikkurila board says.

PPG “sees significant value and potential in Tikkurila and accordingly expects to make substantial investments in the company’s infrastructure and people, as well as provide the company with access to PPG’s global diversified paints, coatings, and specialty coatings offering, on which Tikkurila will be able to build and further deepen its customer relationships, develop lateral products, and access additional markets,” says the Tikkurila board’s statement. “Upon the completion of the tender offer, PPG expects to position Tikkurila and its various brands as PPG’s platform to the Nordic and Baltic countries, Russia, and potentially beyond.”

PPG also expects to maintain Tikkurila’s corporate offices in Finland and various production, distribution, and sales centers in the Nordic countries. PPG “intends to continue to invest in Tikkurila’s employees and potentially provide larger roles for many of its key executives,” the statement says. PPG sees Tikkurila’s “strong distribution capability as a platform to significantly grow many of PPG’s legacy products in its protective and marine, refinish, and light industrial coatings businesses and expand Tikkurila’s and PPG’s combined presence in the countries where Tikkurila is active,” it says.

The Tikkurila board says the company can benefit from PPG’s “complementary products, capabilities, technologies, and expertise to deliver enhanced value to customers.” It shares PPG’s view “that the combined company would have the capabilities to deliver a more extensive offering to its clients, offer new possibilities for its employees, and provide a platform for future growth through additional geographical reach and market position.”

The board notes, however, that the tender offer “may have an effect on employment (at Tikkurila) particularly with regard to overlapping functions.”

As MRC informed previously, in February 2020, PPG said it had completed its acquisition of Industria Chimica Reggiana (ICR, Reggio Emilia, Italy), a maker of automotive refinish products. Financial terms of the deal, including purchase price, were not disclosed. The deal was announced on 8 January. ICR was founded in 1961 and employs about 180 people. ICR manufactures automotive refinish products, including putties, primers, basecoats and clear coats. It also makes a range of coatings, enamels and primers for light commercial vehicles and other light industrial coatings applications. ICR employs about 180 people and sells its products in more than 70 countries in Europe, Africa, the Middle East, the US and Latin America.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.
MRC

MOSCOW (MRC) -- Linde says it will build, own, and operate the world’s largest proton exchange membrane (PEM) electrolyzer plant for the production of green hydrogen at the Leuna chemical complex in Germany, reported Chemweek.

The 24-megawatt electrolyzer will produce hydrogen from renewable sources to supply Linde’s industrial customers at the site through an existing pipeline network. Liquefied green hydrogen will also be distributed to refueling stations and other industrial customers in the region, it says.

The electrolyzer will be built by ITM Linde Electrolysis, a joint venture of Linde and ITM Power, with the plant scheduled to start production in the second half of 2022. No investment figure was given.

Clean hydrogen “is part of the solution to help reduce carbon dioxide emissions across many industries, including chemicals and refining,” says Jens Waldeck, president/western Europe West at Linde. “This project shows that electrolyzer capacity continues to scale up and it is a stepping stone towards even larger plants,” he says.

Linde has the largest liquid hydrogen capacity and distribution system in the world and also operates the world’s first high-purity hydrogen storage cavern, it says. It has installed 80 hydrogen electrolysis plants worldwide.

As MRC informed earlier, in late 2019, the TOTAL refinery in Leuna awarded Bilfinger two further major contracts worth roughly EUR30 million: the first involves exchanging the reactor systems; the second, performing the turnaround for the plant’s POX methanol facility.

We remind that Total is evaluating new gas cracker project in South Korea as part of petchems growth strategy.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Nigeria’s state oil firm NNPC is in talks to raise around USD1 billion in a prepayment with trading firms to refurbish its largest refining complex at Port Harcourt, seven sources familiar with the discussions said, said Hydrocarbonprocessing.

If the financing is concluded, the long overdue rehabilitation of the refinery should reduce Nigeria’s hefty fuel import bill. It would also mark Nigeria’s second oil-backed financing since the COVID-19 pandemic that has added to the difficulty of finding investors as fuel demand is sapped by lockdowns and renewable energy is gaining ground over fossil fuels.

The money would be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the refurbishment is complete, the sources said. Cairo-based Afreximbank is leading the financing. "Afreximbank is looking into a facility for the refurbishment of the Port Harcourt Refinery. However, the borrower is yet to be determined,” a spokesman for the bank said.

NNPC declined to comment. The sources said discussions were taking place with a range of foreign and Nigerian trading houses, including some who have previously worked with Nigeria, and who asked not to be named. Apart from the problems of the pandemic and increased investor preference for carbon-free energy, defaults and fraud in commodity trading, mainly in Asia, have reduced the appetite of foreign banks for exposure to commodity trade finance.

A source at one foreign bank, also asking not to be named, said it was unlikely to participate in Nigeria’s latest effort because of lower credit availability and increased reluctance to take out exposure in a high risk country.

Nigeria, Africa’s most populous country, has four refineries with a combined capacity of 445,000 barrels per day (bpd): one in the north at Kaduna and three in the oil-rich Niger delta region at Warri and Port Harcourt. The Port Harcourt complex consists of two plants with a combined capacity of 210,000 bpd.

In 2019, the refineries lost some 167 billion naira (USD439.47 million), and only Warri processed any oil. In April 2020, they were all shut pending rehabilitation. Nigeria has struggled with the poorly maintained units for decades. Successive NNPC chiefs and politicians have announced a series of unsuccessful plans to revamp, privatise or expand the refineries.

NNPC abandoned a similar attempt in 2019 to partner with oil traders, producers and engineering firms to fund refinery revamps after more than a year of talks, saying it would fund the projects itself. The barely functional plants leave Nigeria completely dependent on imports, and subsidy schemes also cost the country billions of dollars. Nigeria says it eliminated subsidies, but the state’s NNPC is effectively the sole gasoline importer, using some 300,000 barrels per day of oil to swap for fuel.

In December, NNPC opened a bid round for a contract to rehabilitate the Port Harcourt complex. NNPC chief Mele Kyari also said last year that private companies would run the refineries once they were rehabilitated. In July, global energy trader Vitol and Nigerian firm Matrix backed by banks agreed to lend NNPC USD1.5 billion to support its upstream arm NPDC, although the discussions that led to the deal predated COVID-19.

As MRC informed previously, global oil demand may have already peaked, according to BP"s latest long-term energy outlook issued in September 2020, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier last year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world"s major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

MRC