PP production in Russia rose by 8% in Jan-Feb 2021

MOSCOW (MRC) -- Overall polypropylene (PP) production in Russia grew in the first two months of 2021 by 8% year on year to 350,000 tonnes. All Russian producers increased their output, with Nizhnekamskneftekhim being the exception, according to MRC's ScanPlast report.

Russian producers' overall PP production did not exceed 168,100 tonnes in February, compared to 182,400 tonnes a month earlier, several producers simultaneously reduced their capacity utilisation. Russia's overall PP output reached 350,000 tonnes in January-February 2021 versus 323,800 tonnes a year earlier. Seven out of eight producers increased their capacity utilisation, with Stavrolen and ZapSibNeftekhim accounting for the greatest growth in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk/SapSibNeftekhim raised its capacity utilisation in February, the plant's production was 91,900 tonnes versus 96,700 tonnes a month earlier. SIBUR Tobolsk's PP overall output reached 188,600 tonnes in the first two months of 2021, up by 14% year on year.

Poliom reduced its capacity utilisation last month, and, as a result, produced about 15,900 tonnes of PP, whereas its production was 18,200 tonnes a month earlier. Overall, the Omsk plant produced 34,100 tonnes of PP over the stated period, up by 2% year on year.

Nizhnekamskneftekhim produced a little less then 17,200 tonnes of propylene polymers in February versus 18,500 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer reached 35,600 tonnes in January-February 2021, compared to 36,100 tonnes a year earlier.

Tomskneftekhim produced 11,700 tonnes of propylene polymers last month versus 13,500 tonnes a month earlier. The Tomsk plant's total PP output reached 25,200 tonnes over the stated period, up by 2% year on year.

Ufaorgsintez's production capacities operated with lower capacity utilisation in February due to a shortage of propylene, the plant's PP production was 9,500 tonnes, compared to 11,900 tonnes a month earlier. The Ufa plant's overall output of polymer reached 21,400 tonnes in the first two months of 2021, up by 1% year on year.

Neftekhimiya (Kapotnya) produced 11,800 tonnes of PP last month, compared to 12,600 tonnes a month earlier. The producer's overall PP output reached 24,400 tonnes over the stated period, up by 2% year on year.

Stavrolen (LUKOIL) maintained high capacity utilisation in February and produced about 10,000 tonnes of propylene polymers versus 11,200 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers reached 21,200 tonnes in the first two months of 2021, up by 15% year on year.


Mehr Petrochemical to restart HDPE plant in Iran

MOSCOW (MRC) -- Mehr Petrochemical Company (MHPC), a major petrochemical producer in Iran, is in the middle of resumption of operation at its high density polyethylene (HDPE) plant in Assaluyeh, Iran, reported CommoPlast.

This HDPE line with an annual capacity of 300,000 tons/year was shut unexpectedly last week after a technical glitch.

A source close to the company confirmed that the shutdown has not severely affected the supply.

As MRC informed before, Iranian petrochemical company Ilam Petrochemical resumed production at its HDPE plant in Ilam (Ilam, Iran) on May 22, 2019, which was shut earlier due to an explosion on an ethylene pipeline, which supply ethylene to the plant. This plant with a capacity of 300,000 tons/year of HDPE was taken off-strem in early April, 2019.

According to MRC's ScanPlast report, Russia's HDPE production totalled 329,800 tonnes in the first two months of 2021, up by 13% year on year. At the same time, only one Russian producer increased HDPE output.

Mehr Petrochemical’s HDPE plant is a joint venture between Thailand’s PTT Chemical and Siam Cement, Iran’s National Petrochemical Co (NPC) and Japan’s Itochu.

Celanese to utilize alternative feedstock for production of methanol at its Clear Lake complex

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announced that its Clear Lake, Texas integrated chemical manufacturing facility will begin utilizing recycled carbon dioxide (CO2) as an alternative feedstock in the production of methanol, a key raw material in the manufacture of numerous acetyls products, including acetic acid, vinyl acetate monomer (VAM), ethyl acetate and other derivatives, as per the company's press release.

This carbon capture and reuse process is expected to produce sustainable methanol with a high capital efficiency at competitive pricing via an expansion of the company’s Fairway joint venture. The methanol production unit at the Clear Lake facility, operated as Fairway Methanol LLC, is a manufacturing joint venture between Celanese and Mitsui & Co., Ltd., and will contribute to the sustainability targets of both companies.

Once fully operational, it is expected that by using by-product CO2 in the production of methanol, after a low capital capacity expansion, the 1.62 million metric ton Fairway production unit will eliminate the waste equivalent of approximately 39,000 automobiles per year from U.S. highways, thereby displacing approximately 180,000 metric tons of CO2. Furthermore, an estimated 60 percent of currently vented process CO2 from the entire Clear Lake site will be transformed into sustainable methanol.

CO2 capture and reuse further demonstrates the company’s commitment to sustainability and the potential impact to the broader Celanese portfolio as the company is both a consumer of upstream products and a supplier of sustainable materials to other products within the portfolio. As such, the benefits of CO2 capture and reuse can be allocated or derivatized to the company’s engineered materials, acetyl chain or acetate tow product offerings.

As MRC reported earlier, in H2 February, 2021, Celanese declared force majeure on its products in the Americas and EMEA region due to the severe winter weather that has heavily curtailed US petrochemicals and refinery production and operations on the US Gulf Coast.

According to MRC's DataScope report, January EVA imports to Russia rose only by 0,07% year on year to 3,084 tonnes from 3,087 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-December 2020 by 3,41% year on year to 38,170 tonnes (39,520 tonnes in 2019).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2020 net sales of USD5.7 billion.

Johnson Matthey to supply technology, equipment for first climate-neutral methanol plant in Patagonia, Chile

MOSCOW (MRC) -- Johnson Matthey announced an agreement to supply cutting-edge technologies, equipment and advisory services to the world’s first methanol plant to harness energy from the wind, the Haru Oni project in Patagonia, Chile, said the company.

The project is being developed by Siemens Energy in partnership with Johnson Matthey and several other major corporations, and it will become the first integrated and commercial large-scale plant to produce climate neutral e-methanol and e-gasoline.

Johnson Matthey will license methanol technology and supply the engineering, catalyst, and equipment for the project. The unit designed by Johnson Matthey will take atmospheric carbon dioxide (CO2) as feedstock for conversion to e-methanol. The CO2 used by the unit will be recovered by direct air capture and combined with green hydrogen, produced from water via proton exchange membrane (PEM) electrolysis.

In the initial pilot phase, the unit will be capable of producing about 900,000 liters/year of e-methanol as early as 2022, the company says. Its capacity will increase to about 55 million liters/year of e-fuels by 2024, and about 550 million liters of e-fuels by 2026, sufficient for about 220,000 gasoline vehicles at 50 liters' use per week, Johnson Matthey says.

As MRC informed earlier, Johnson Matthey (JM; London, U.K.) has secured a multiple licence win for China’s Ningxia Baofeng Energy Group’s latest project to develop five of the largest single-train methanol plants in the world. Located at Baofeng’s Ordos City complex in Inner Mongolia, PRC, the plants have a planned capacity of 5 x 7,200 metric tons (m.t.) per day, and mark the fourth project on which Baofeng has selected Johnson Matthey as its collaboration partner for methanol technology.

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).

EPC to restart its PVC plant in Egypt after unscheduled shutdown

MOSCOW (MRC) -- Egyptian Petrochemicals Company (EPC), Egypt’s local polyvinyl chloride (PVC) producer, plans to restart its PVC plant by the beginning of next week after an unscheduled shutdown, reproted NCT with reference to a source from the company.

The plant with a nameplate capacity of 80,000 tons/year of PVC was taken off-stream after a fire that broke out on March 19, Friday.

A shortage of ethylene was cited as another reason behind the shutdown.

"We have limited stocks and we are only delivering to the local market," the source reported.

We remind that in late March, 2020, another major petrochemical producer in Egypt - The Egyptian Propylene and Polypropylene Company (EPPC), one of two producers of propylene and polypropylene (PP) in Egypt - resumed production at its polypropylene (PP) plant at Port Said, Egypt after a planned turnaround. The maintenance works at this plant with a capacity of 350,000 tons/year of PP began in early February, 2020.

According to MRC's ScanPlast report, Russia's overall PVC production reached 169,200 tonnes in the first two months of 2021, down 4% year on year. All producers decreased production volumes over the reported period.

Egyptian Petrochemicals Company is one of the Egyptian petroleum sector companies and a subsidiary of the Egyptian Holding Company for Petrochemicals Company. Egyptian Petrochemicals is the first petrochemical company produces of PVC originating in the Arab Republic of Egypt.