ExxonMobil picks Sinopec Engineering for construction of multi-billion cracker project in China

MOSCOW (MRC) -- Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I), according to Indian Chemical News.

Under the contract, the Group will provide EMHCC with BEPC services for the project. The main scope of the services includes the basic design, engineering, procurement and construction of all the process units, utilities and infrastructures. The contract value is estimated to be multibillion USD.

The project, which remains subject to final investment decision, will be located in Daya Bay Petrochemical Park, Huizhou, Guangdong, China.

The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

As MRC informed before, ExxonMobil, the US energy major, is considering whether to close down its Slagen oil refinery in Norway, which has a capacity to process 120,000 barrels of crude per day, turning the site into an import terminal. The refinery at Slagentangen near Toensberg in south-east Norway was built in 1961 and process crude oil from the North Sea, exporting about 60% of the output, according to Exxon.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

EMHCC is a wholly-owned subsidiary established by Exxon Mobil Corporation (ExxonMobil) in China.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

Former CEO of Braskem pleads guilty in U.S. bribery case

MOSCOW (MRC) -- A former chief executive of Braskem SA, Brazil’s largest petrochemicals company, pleaded guilty to involvement in what U.S. prosecutors called a 13-year bribery scheme that involved Braskem’s parent, Odebrecht SA, said Reuters.

Jose Carlos Grubisich admitted in Brooklyn, New York, federal court to conspiring to violate anti-bribery provisions of the federal Foreign Corrupt Practices Act, and falsify Braskem’s records and financial reports to conceal bribes.

Prosecutors said that between 2002 and 2014, Grubisich and others helped divert USD250 million from Braskem into a secret slush fund, which was held in an Odebrecht business unit that "effectively functioned as a stand-alone bribe department."

Funds were then allegedly used to pay bribes to Brazilian government officials to win and retain business for Braskem, including a large project from Brazil’s state-owned oil company, Petrobras. Prosecutors said some bribes that Grubisich authorized were paid after he left his chief executive position in 2008.

Grubisich, 64, faces up to 10 years in prison on the two conspiracy counts at his scheduled Aug. 5 sentencing, and agreed to forfeit USD2.2 million. He entered his plea before U.S. District Judge Raymond Dearie. Lawyers for Grubisich did not immediately respond to requests for comment.

In December 2016, Braskem and Odebrecht, a construction company, pleaded guilty and agreed to pay USD3.5 billion to settle bribery-related charges brought by U.S., Brazilian and Swiss regulators. Odebrecht changed its name in December to Novonor SA to move past its scandal-ridden history, saying it would be “strictly guided by ethics, integrity and transparency."

As per MRC, Braskem, the largest Brazilian petrochemical company, in early March began the process of restarting production at three polypropylene (PP) plants in La Porte, Freeport, Seadrift, TX, USA, which closed on February 15 from - due to extremely cold weather. It is currently unknown how long it will take to restart these enterprises. The production capacity of PP La Porte is 840,000 tonnes per year, in Freeport - 320,000 tonnes per year, and in Sidrift - 225,000 tonnes per year.

According to ICIS-MRC Price report, on Tuesday, 13 April, 2,000 tonnes of Turkmenbashi refinery"s PP raffia grade were put up for export sale at the State Commodity and Raw Materials Exchange of Turkmenistan. The starting price was set at USD1,775/tonne FOB/FCA in accordance with the results of the March trades. Demand for PP was very weak in the trades, and only one deal was registered for 500 tonnes at the starting price.
MRC

COVID-19 - News digest as of 19.04.2021

1. India aims to diversify crude oil supplies, which maybe hard to achieve due to harsh realities of the global market

MOSCOW (MRC) -- India’s obvious displeasure with restrictions on output imposed by OPEC and its allies, and its aim to diversify crude oil suppliers, may run into the harsh realities of the global market, reported Reuters. The world’s third-biggest oil importer and consumer has told state-owned refiners to speed up the diversification of crude imports in order to cut dependence on its main source of supply, the Middle East, reported Reuters in March, citing two sources with knowledge of the plan. India’s supply is dominated by members of the group known as OPEC+, which includes the long-standing producer group and allies such as Russia. The OPEC+ decision to continue its output cuts of around 7 million barrels per day (bpd) into April was met with anger in India, which imports 84% of its crude needs, with more than 60% coming from the Middle East.

MRC

Formosa to restart its No. 1 cracker in Taiwan after unplanned repairs

MOSCOW (MRC) -- Formosa Plastics Company (FPC), part of Formosa Petrochemical, is in plans to resume operations at its No. 1 cracker in Mailiao, Taiwan on 19 April 2021, reported S&P Global.

This cracker was unexpectedly taken off-stream on 12 April 2021 due to an unspecified technical issue.

The No. 1 cracker has an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene.

As MRC wrote before, FPC shut down its No.2 cracker in Taiwan on 1 June, 2020. No reason for unplanned closure was given then. The cracker was dle during one week. Located at Mailiao in Taiwan, the No.2 cracker has an ethylene production capacity of 1.03 million mt/year, propylene production capacity of 515,000 mt/year and butadiene production capacity of 162,000 mt/year.

Besides, FPCC undertook a planned shutdown at its No.3 cracker in Mailiao on August 11, 2020. The cracker remained off-line till end-September, 2020. Located at Mailiao in Taiwan, the No. 3 cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 600,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

PTTGC shut three crackers in Map Ta Phut owing to power outage

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) has abruptly shut down three crackers at its petrochemical complex in Map Ta Phut on 14 April 2021 after a thunderstorm caused a power outage, reported CommoPlast with reference to a source close to the company.

The source said No. 1 and 4 crackers and the recently launched No. 5 cracker on the site are now offline and it might take a week to restart these units.

The production capacities of No. 1 and 4 crackers are 461,000 and 515,000 mt/year of ethylene, whereas the new cracker can produce 500,000 mt/year of ethylene and 260,000 mt/year of propylene.

It is likely that downstream PE and PP productions would also be affected by the incident, however, the company has yet to release any details.

As MRC reported earlier, PTTGC started trial runs at the new cracker in Thailand on February 9-10, 2021, it received commercial ethylene at this facility on March 5, 2021.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC