Celanese to expand three engineered materials compounding plants in Asia

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, intends to initiate a three-year plan to expand engineered materials compounding capacities at the company’s Asia facilities, including the locations of Nanjing, China; Suzhou, China; and Silvassa, India, as per the company's press release.

To support the significant business growth expected, Celanese has begun planning for the following Asia expansion investments:

- Nanjing, China Compounding and LFT Expansion: the intended scope of this project adds approximately 52KT of compounding and long-fiber thermoplastics (LFT) capacity at the company’s Nanjing integrated chemical complex by the second half of 2023.
- Suzhou, China Nylon Expansion: the intended scope of this project adds approximately 7KT of nylon compounding capacity at the company’s Suzhou facility by the second quarter of 2022.
- India Compounding Expansion: the intended scope of this project adds approximately 7KT of annual compounding capacity at the company’s Silvassa, India facility by the first quarter of 2022.

“By continuing to increase our Asia presence in the engineered materials market, Celanese is adapting to local customer needs and gaining a competitive advantage in a complex and changing environment,” said Tom Kelly, Celanese Senior Vice President, Engineered Materials. “Celanese is committed to expanding its leadership position in the region by increasing both compounding and polymer manufacturing capacities and capabilities through greater investments and additions in its Asia network.”

Financial details of these engineered materials compounding expansions are not being disclosed at this time.

As MRC wrote before, Celanese Corporation has also announced its intent to expand its GUR ultra-high molecular weight polyethylene (UHMW-PE) production capacity in Europe. In addition to the recently announced Bishop, Texas, GUR expansion of approximately 15,000 tonnes per year coming online beginning in 2022, Celanese intends to invest in additional capacity for GUR in Europe.

We remind that 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.
MRC

1. Oil edges higher on bargain-hunting but oversupply fears cap gains

MOSCOW (MRC) -- Oil prices rises as investors looked for bargains following the previous day's plunge, but gains were capped as pandemic lockdowns in Europe and a build in US crude stocks curbed risk appetite and raised oversupply fears, reported Hydrocarbonprocessing. Brent crude futures rose 27 cents, or 0.4%, to USD61.06 a barrel by 0108 GMT, after tumbling 5.9% and hitting a low of USD60.50 the previous day. West Texas Intermediate (WTI) crude futures climbed 19 cents, or 0.3%, to USD57.95 a barrel, having lost 6.2% and touched a low of USD57.32 on Tuesday.


MRC

MOSCOW (MRC) -- The new coronavirus wave that has torn through Brazil in recent weeks has also affected its oil industry, according to unions and government data reviewed by Reuters, with infections among workers jumping and production taking a hit.

New COVID-19 cases among offshore oil workers rose to 46 on March 24 from 17 on March 3, based on a 15-day moving average, data from national oil regulator ANP showed.

Active cases are at their highest level since December at Brazil’s largest oil producer, state-run Petrobras, with 294 cases among employees as of Monday, according to Mines and Energy Ministry data.

Petroleo Brasileiro SA, as the firm is formally known, told Reuters it has adopted “rigorous measures” since the beginning of the pandemic to protect workers, carrying out some 650,000 COVID-19 tests among its workforce of roughly 46,000.

When employees are confined to enclosed spaces, as is common on offshore platforms, the company monitors them for 14 days prior to the beginning of their shift, Petrobras said. Still, those efforts have not insulated the company from a nationwide surge in COVID-19 cases in recent weeks.

As MRC informed before, Brazil's state-run oil company Petrobras is seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company"s recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras"s stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company"s stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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.
MRC

MOSCOW (MRC) -- Lummus Technology has announced an award for its ethylbenzene technology from a customer in Jiangsu Province, China, according to Hydrocarbonprocessing.

Once complete, the unit will produce 508,000 tonnes/year of ethylbenzene via the EBOne technology.

"We look forward to continuing to provide our world-class technology to customers in China, a critical market for us now and in the future," said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. "This award is a testament to the superior performance of our ethylbenzene technology, which is proven to maximize plant uptime, provide high-quality products, optimize production costs and reduce investment costs."

The scope for this project includes the technology license, basic engineering, training and related site services.

Lummus' customer has previously licensed technology solutions including the BP paraxylene process technology and ISOCRACKING technology via Lummus Technology's Joint Venture with Chevron called Chevron Lummus Global (CLG).

As MRC reported previously, in February 2021, Lummus Technology announced an award for its Indmax Fluid Catalytic Cracking (FCC) technology from Numaligarh Refinery Ltd. (NRL), a subsidiary of Bharat Petroleum Corporation Ltd. (BPCL). The Indmax FCC unit is part of NRL’s refinery expansion project, which will increase crude processing capacity from the current 3 MMTPA to 9 MMTPA at their facilities in Golaghat, Assam, India.

We remind that in July 2020, Haldia Petrochemicals (HPL), a flagship company of The Chatt­erjee Group (TCG), alo­ng with its international partner Rhone Capital acquired US-based Lummus Technology at an enterprise value (EV) of USD2.725 billion (around Rs 20,590 crore) from McDermott International. In the joint acquisition, HPL’s share is at 57 per cent, the balance would be held by Rhone Capital. Under the new dispensation, Lummus Technology wou­ld function as a ‘standalone’ autonomous entity.

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

Lummus Technology is a master licensor of proprietary technologies in refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment and related engineering services. It has about 130 licensed technologies and more than 3,400 patents and trademarks.
MRC

MOSCOW (MRC) - Kazanorgsintez (KOS, part of the TAIF group) will allocate at least 70% of its net profit for dividends, the company said.

So, on March 16, a regular meeting of the board of directors of KOS was held, where the recommendations to the general meeting on the distribution of net profit were approved and some other issues were considered.

According to the data of the annual financial statements in accordance with RAS standards, the revenue of Kazanorgsintez PJSC at the end of 2020 amounted to 62.8 billion rubles. Even in the context of the coronavirus pandemic and the associated economic crisis, the company worked with a net profit of 8.6 billion rubles.

The Board of Directors recommended to the annual meeting of KOS shareholders to use part of the net profit in the amount of 2.6 billion rubles for capital investments. The total amount of dividends paid to shareholders, in accordance with the company's charter, is set at not less than 70% of the net profit. Accruals will be made at the rate of 0.25 rubles per one preferred share and 3.36 rubles per one ordinary share. The general meeting will be held on April 23, 2021 in absentia.

Earlier it was reported that Kazanorgsintez began a project to build a production of polyethylene-vinyl acetate (EVA) and high-pressure polyethylene (LDPE). The new production capacity will be 100 thousand tons of EVA / LDPE per year. The Japanese company Sumitomo Chemical will act as the licensor. The production complex will be located on a free site, inside the territory of Kazanorgsintez. To implement the project, it is planned to use the company's own funds and attract debt financing.

According to MRC's DataScope, January imports of EVA to Russia grew by only 0.07% to 3,084 tonnes from 3,087 tonnes in the same month of the previous year, but by the end of January-December 2020, imports of this type of copolymer ethylene in the Russian Federation decreased by 3.41% - to 38,170 tonnes (39,520 tonnes in January-December 2019).

Kazanorgsintez PJSC is one of the largest polyethylene producers and the only polycarbonate producer in Russia (part of TAIF Group). The only Russian member of the international association "PE100 +". All products manufactured by Kazanorgsintez PJSC are certified in the Gosstandart system of the Russian Federation. The enterprise is the largest exporter of polyethylene among Russian manufacturers. Kazanorgsintez PJSC supplies products to 31 countries of the world.