Hengyi picks Univation Unipol process for new PE plant at Brunei Complex

MOSCOW (MRC) -- Hengyi Industries has selected Univation's Unipol polyethylene (PE) process for a new world-scale PE plant that will be built at Hengyi's site in Palau Maura Besar, Brunei, according to Apic-online.

The 600,000-t/y PE unit will be integrated into a larger refinery and petrochemicals project, which includes a 280,000-b/d refinery and downstream production of ethylene, benzene, paraxylene, ethylene glycol, purified terephthalic acid, polypropylene (PP) and polyethylene terephthalate (PET).

The Unipol technology will allow Hengyi to produce a broad range of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) products. A schedule for the project was not given.

Hengyi also selected Univation's advanced software platforms for both process control capability and virtual process training for the PE facility.

This Hengyi Industry project represents Brunei's first-ever world-class oil refinery and petrochemical complex and also marks and important milestone as the company's second significant capital investment for the Palau Muara Besar site, said Chen Lian Cai, chief executive of Hengyi.

As MRC informed before, in September 2020, China’s Hengyi Petrochemical Co Ltd announced plans to spend USD13.65 billion to build the second phase of a refinery and petrochemical complex in Brunei. Hengyi, one of the few private Chinese firms operating a refinery outside China, plans to add a 14 million tonne per year (280,000 barrel per day) crude oil refinery and a two million tpy paraxylene unit at its complex in Palau Muara Besar, the company said. It will also build a 1.65 million tpy ethylene plant and 2.5 million tpy purified terephthalic acid (PTA) facility. Paraxylene and PTA are key materials for making polyester fibre used in textiles and packaging.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.
MRC

Lotte Chemical Titan achieves on-spec output at its catalytic cracking unit in Malaysia

MOSCOW (MRC) -- Lotte Chemical Titan has resumed production at its fluidised catalytic cracking unit in Malayisia, reported Chemweek.

Thus, the unit producing up to 92,000 metric tons/year of ethylene, 160,000 metric tons/year of propylene was brought on-line on 6-7 February and recieved on-spec production on 6-7 February. It was shut on 15 January because of a technical issue.

As MRC informed earlier, Lotte Chemical Titan also shut its No. 2 cracker in Malayisia in mid-January because of a technical glitch. This cracker is located in Pasir Gudang, Malaysia, and produces 522,000 tons/year of ethylene and 360,000 tons/year of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 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.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesia’s first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.’s largest overseas subsidiaries.
MRC

Wood Mackenzie: Energy transition to drive refinery and petrochemicals integration

MOSCOW (MRC) -- 2020 was a difficult year for the world’s refineries as the coronavirus pandemic reduced refinery utilization and OPEC+ supply restraint narrowed crude price differentials, said Hydrocarbonprocessing.

Despite this, integrated refinery and petrochemical sites significantly outperformed their fuels-only peers, according to Wood Mackenzie. One of the most highly integrated sites in China, Hengli, generated a net income of more than USD1.4 B during 1Q to 3Q 2020, at a time when most of the refining industry was incurring significant losses.

Alan Gelder, Wood Mackenzie VP Refining, Chemicals & Oil Markets, said: “Over the coming years, the energy transition and the associated electrification of the passenger car fleet will slow the pace of global gasoline demand growth and drive it into decline after 2030.

“Meanwhile the versatility and durability of petrochemicals will see sustained demand growth, particularly in the developing economies of Asia, with global petrochemical feedstock demand growing by over 500,000 bpd each year over the next decade. This growth in petrochemical feedstocks will be tempered by an increase in global recycling rates as societies focus on reducing the environmental challenges of plastic waste.

"This switch in demand away from gasoline to petrochemicals promotes the adoption of refinery and petrochemical integration, particularly for new facilities in Asia and the Middle East. Currently, more than 30% of the world’s refineries are now integrated with commodity petrochemicals. These sites benefit from both a diversified product slate, and the potential to unlock greater value through economies of scale and operational cost synergies.

China has already outlined an integrated refinery and petrochemicals path that achieves earnings comparable with the most profitable refining sites in North America, says Wood Mackenzie. Two second-generation integrated sites, Hengli and RhongSheng, were brought online in 2019 and achieved full operations in 2020. Had they been fully operational in 2019, they would have been among the world’s top performing sites for 2020 when measured in earnings per barrel of crude processed, estimated at around USD10/bbl, according to Wood Mackenzie’s REM-Chemicals tool.

"The development of these sites and fast followers is to be closed watched as their deployment has global consequences. The new integrated sites in China are achieving a chemical yield of over 40 wt%. The development of such highly competitive sites makes it increasingly difficult for refineries in the Atlantic Basin to export their surplus gasoline, so the further growth of such sites will accelerate refinery closures in Europe and the U.S.

“Though China is currently a runaway leader in the integrated refinery and petrochemicals space, India’s significance as an investment location is expected to rise over the coming years. The Middle East has invested in expert refining and has recently become more interested in integration as a means of adding value to its crude exports because its supplies of gas-based feedstocks are dwindling,” added Gelder.

As per MRC, a winter storm has brought unusually cold temperatures, snow, and freezing rain to Texas and western Louisiana, forcing a large share of US light olefins production offline. As of the evening of Tuesday, 16 February, IHS Markit had confirmed the shutdown of at least 61% of US ethylene capacity, 59% of US chemical- and polymer-grade propylene (CGP, PGP) capacity, and 22% of US fluid catalytic cracking (FCC) capacity. Many plants that remained online were running at reduced capacity.

As MRC informed earlier, in late August 2020, Chevron Phillips Chemical shut down its Port Arthur, Texas cracker in preparation for Hurricane Laura. The unit's capacity of 855,000 mt/year. Chevron Phillips also shut its Cedar Bayou, Texas, crackers ahead of the storm. The company's Cedar Bayou crackers 1 and 2 have capacities of 837,000 mt/year and 1.7 million mt/year, respectively.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 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

Polynt hikes composite prices in Europe on rising materials, logistics costs

MOSCOW (MRC) -- Polynt Composites (Scanzorosciate, Italy) has announced a price rise in Europe for all its unsaturated polyester resins (UPRs), gelcoats, and vinyl esters, effective 1 March 2021 or as contracts allow, reported Chemweek.

Raw and auxiliary materials costs “are relentlessly increasing during the first months of 2021,” it says. Freight and logistic costs, as well as packaging costs, are also rising, it says.

Polynt’s full vinyl ester range will be increased by EUR300/metric ton (USD364/metric ton), while its UPRs, gelcoats, and ancillary products will rise by EUR200/metric ton.

The thermoset composites manufacturer imposed similar price increases in January for the same given reasons, and says it will “make every effort” to limit the impact of rising costs on its product pricing.

As MRC informed previously, in early March, 2020, Polynt announced that all its sites and activities in Italy were running smoothly and according to plan, despite the news about the Italian situation related to the spreading of the coronavirus in the country.

Polynt runs two maleic anhydride (MA) plants in northern Italy, including Bergamo’s 36,000 tonne unit in Lombardy and Ravenna’s 60,000 tonne plant on the east coast. The bigger production line at Ravenna had been operating at a reduced rate since March 2019 due to technical issues, the firm previously said. A new reactor ordered is expected to be operational in 2021. Polynt also produces phthalic anhydride at Bergamo and its San Giovanni Valdarno site, as well as plasticizers at San Giovanni Valdarno.

Maleic anhydride is a feedstock for the production of tetrahydrofuran, tetrahydrophthalic anhydride, films and synthetic fibers, pharmaceuticals, detergents, plasticizers, maleic, succinic, fumaric and malic acids and a number of chemicals for agriculture.

Plasticizers are substances introduced into a polymeric material to give it elasticity and plasticity during processing and operation. In particular, plasticizers are used to produce polyvinyl chloride (PVC). The share of plasticizers used for the production of PVC products is about 80%.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 1 240,000 tonnes in 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

Shares in Technip Energies soar more than 30% on first trading day

MOSCOW (MRC) -- Shares in Technip Energies skyrocketed on Tuesday, the first trading day after Franco-American oilfield company TechnipFMC split its engineering and construction activities from its upstream oil services business, reported Chemweek.

Shares were up 31.5% at EUR11.83 at 0901 GMT (USD14.38), above the IPO reference price of EUR9.00.

TechnipFMC on Monday completed its spin-off deal to create two publicly traded companies, TechnipFMC and Technip Energies.

Technip Energies, which specializes in engineering and technologies for liquefied natural gas, hydrogen and ethylene, said last month it aimed for 2021 revenue of between EUR6.5 B and EUR7 B.

The company also said it targeted an operating margin of between 5.5% and 6% this year.

As MRC reported earlier, in November 2020, TechnipFMC successfully completed the remaining conditions required to enable work to commence on the EPC contract with Assiut National Oil Processing Company (ANOPC) for the construction of a new hydrocracking complex for the Assiut refinery in Egypt.

We remind that Saad Helal, the Chairman of Egyptian Petrochemicals Holding Company (ECHEM), stated in September 2020 that his company is rapidly working on implementing a number of seven new projects to the national plan for the period of 2020-2035. He said that these projects include one by Wood Technology Company for producing medium-density fibreboard (MDF) wood which is being installed and implemented by Petrojet, a methanol derivative production project which produce a capacity of 140 tons per year and is worth USD117 million, and a project by the Egyptian Ethylene and Derivatives Company (Ethydco) for producing rubber polybutadiene at a capacity of 36,000 tons per year with costs USD183 million.

Ethylene is the main feedstock for the production of polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.
MRC