Lotte Chemical to use Honeywell technology for production of phenol and acetone in Yeosu

MOSCOW (MRC) -- Honeywell announced that Lotte GS Chemical Corp. will use Honeywell UOP Q-Max, Phenol 3G, and Evonik MSHP technologies to produce more than 565,000 metric tons per year of phenol and acetone at its petrochemicals facility in Yeosu, Korea, according to Hydrocarbonprocessing.

UOP is providing a license for the technology, in addition to basic engineering design services, key equipment, catalysts and adsorbents and technical services.

As part of the project, UOP will provide a cumene unit and a phenol unit with alpha-methylstyrene (AMS) hydrogenation. The combined technologies will allow Lotte GS Chemical to produce phenol and acetone derivatives from benzene and polymer-grade propylene.

“Global demand for plastics and resins such as polystyrene, styrenic resin, polycarbonate and phenolic resin is driving the need for aromatic derivatives,” said Bryan Glover, vice president and general manager of Honeywell UOP’s Process Technologies business. “By increasing the production of phenol and acetone, Lotte raises its market position in high-margin petrochemicals and contributing to the global supply.”

As MRC reported earlier, in March 2021, Honeywell announced that Hengli Petrochemical Co. Ltd. successfully used Callidus burner technology from Honeywell UOP to minimize nitrogen oxide (NOx) and carbon monoxide (CO) emissions in China, and reduce the impact of these emissions while ensuring safe and stable operations.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 tonnes a year earlier).
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1. US energy-related CO2 emissions down 11% in 2020 mainly due to COVID-19 pandemic

MOSCOW (MRC) -- Based on data in EIA’s Monthly Energy Review, energy-related carbon dioxide (CO2) emissions dropped by 11% in the United States in 2020 primarily because of the effects of the COVID-19 pandemic and related restrictions, according to Hydrocarbonprocessing. US energy-related CO2 emissions fell in every end-use sector for the first time since 2012. Within the US power sector, emissions from coal declined the most, at 19%. Natural gas-related CO2 rose by 3%. In 2020, as fossil fuel generation declined, generation from renewables continued to grow. Generation from wind and solar together increased by 17% in 2020.



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MOSCOW (MRC) -- Crude oil futures were steady to slightly higher in mid-morning trade in Asia April 12 as optimism over an accelerated vaccination drive in Europe and an economic recovery in the US were countered by continuing concerns that any resurgence in coronavirus infections could abruptly curtail demand, reported S&P Global.

At 11:52 am Singapore time (0352 GMT), the ICE Brent June contract was up 4 cents/b (0.06%) from the April 9 settle at USD62.99/b, while the May NYMEX light sweet crude contract was 4 cents/b (0.07%) higher at USD59.36/b.

"The market started the week on a positive note after a tug of war between those feeling optimistic over the US economic recovery and those despairing over the pandemic progression in Europe left Brent stuck around the USD63/b mark last week," Vandana Hari, CEO of Vanda Insights, told S&P Global Platts on April 12.

"The positive sentiment was due to developments over the weekend, with France, Germany and Italy saying that they are ramping up vaccinations and Jerome Powell (US Federal Reserve Chairman) expressing further confidence over US economic growth accelerating," she added.

However Hari noted the market had not found strong upward momentum amid continuing concerns that the coronavirus pandemic could derail the demand recovery for crude oil. "Europe is at the epicenter of (coronavirus-related concerns), with several countries forced to increase restrictions to contain the spread of new variants of the virus," ANZ analysts said in a April 12 note.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
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MOSCOW (MRC) -- Braskem, Brazilian petrochemicals producer, has partly stopped operations at its Sao Paulo complex, reported S&P Global with reference to the company's statement.

Thus, the chemicals and polyethylene (PE) units in the complex were shut on 5 April for a 51-day planned maintenance, Braskem said.

The work includes modifying the steam-based turbines in one of the chemical plants to allow for the use of high performance electric motors. Braskem warned there might be some flaring during the first and last days of the maintenance.

The company said it has planned an increase in its inventory levels so the supply chain will not be affected by the maintenance.

As MRC informed before, Braskem's 450,000 mt/year polypropylene (PP) plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production on 10 September, 2020. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

MOSCOW (MRC) -- Sinopec Changling, part of Sinopec Group, plans to bring on-stream its polypropylene (PP) unit in Yueyang, China on 15 April, 2021, after a scheduled turnaround, according to CommoPlast.

The maintenance works at this plant with a production capacity of 125,000 mt/year of PP began on 22 February, 2021.

As MRC informed earlier, Zhongke Refinery and Petrochemical Complex, also part of Sinopec Group, successfully conducted trial runs at its new 350,000 tons/year PP unit on 9 June, 2020.

Based in Zhenjiang, China, the complex consists of two PP lines with combined production capacity of 550,000 tons/year, a 100,000 tons/year low density polyethylene (LDPE) plant and a 350,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) plant.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
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