Shenghong plans test runs at new oil refinery

MOSCOW (MRC) -- China's privately-owned Shenghong Petrochemical plans to start test runs at its 320,000-bpd crude unit in August or September, a company official told Reuters.

The new plant, based in the eastern port city of Lianyungang, will be the only greenfield oil refinery coming on stream in China this year, with its capacity equal to nearly 3% of the country's crude oil imports. Commercial operations at the plant are likely to begin in the first quarter of next year, upon completion of its downstream petrochemical facilities.

The refiner is in talks with suppliers to secure about 15 million barrels of crude oil, focusing on low-sulphur, low-acid grades, to be used for its trial runs through the end of 2021, the official said late on Tuesday. "Company will focus on ensuring safe and stable trial operations," said the official, who declined to be named.

The oil shipments will need to come in smaller vessels from nearby terminals as its own facility to anchor very large crude carriers will only be ready for use towards end of the year, the official said. Shenghong has been recruiting for its Singapore-based trading team for a while and currently has about 10 people on board, covering crude oil, products and shipping, according to the official and industry sources.

The team is expected to expand to nearly 30 people within two years, the official added. Shenghong is building an integrated refining and petrochemical complex with a total investment of 66.7 billion yuan (USD10.43 billion) that will include the refinery, a 2.8-MMtpy aromatics unit and a 1.1 MMtpy ethylene plant, according to the company website. It will also contain 3.83 million cubic meters of oil and chemical storage.

As per MRC, Shenghong Petrochemical plans to launch a complex in Lianyungang (in Jiangsu Province, China) at the end of 2021 at the end of 21 years. The complex includes an oil refinery with a capacity of 320 thousand barrels per day, a paraxylene plant of 2.8 million tons per year and an ethylene plant of 1.1 million tons per year, as well as various other enterprises. Shenghong will first commission the refinery and plans to bring it online in August. The company is currently accelerating construction, which was interrupted by the pandemic.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- DuPont Clean Technologies (DuPont) announced the startup of the STRATCO alkylation units at the Zhongke Refinery and Petrochemical Company LTC refinery in Zhejiang, China and the Sinopec Shanghai Company (SPC) refinery in Jinshan, Shanghai, China, according to Hydrocarbonprocessing.

Both STRATCO alkylation units at Sinopec Zhongke and Sinopec Shanghai are designed to process MTBE raffinate feedstock and produce 9,240 bpsd (360 kmta) and 10,240 bpsd (400 kmta) of alkylate, respectively.

The generation of low-sulfur, high-octane, low-Rvp alkylate with zero olefins enables Sinopec to meet the criteria of the China VI standard at these two refineries.

“In the last few years, DuPont and Sinopec have had the opportunity to start up several STRATCO alkylation units together, providing DuPont with the opportunity to develop a strong relationship with each refinery. The success in both startup and operation continues to meet and exceed expectations, enabling the Sinopec organization to make a vast amount of high quality alkylate to improve the overall quality of their gasoline pool. We are very appreciative for the experience we’ve had with each of these refineries,” said Kevin Bockwinkel, global business manager, STRATCO Alkylation Technology.

The startup of the units brings the number of STRATCO alkylation units in operation at the Sinopec organization to six, with a seventh unit being readied to come online this year.

As MRC wrote previously, state-backed Sinopec Corp. has recently started a 5.17 billion yuan (USD811 million) refinery upgrade at a subsidiary plant in eastern China that aims to produce cleaner fuels and boost output of higher-value chemicals. The investment in Yangtze Petrochemical Corp, in Nanjing city in the province of Jiangsu, covers eight key facilities, such as a 2.6-million-tonne-per-year residue hydrocracker and a 2.8 MMtpy catalytic cracker.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

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.
MRC

MOSCOW (MRC) -- Royal Dutch Shell Plc began restarting the second stage of the hydrocracker at its 227,400-barrel-per-day (bpd) Norco, Louisiana refinery, reported Reuters with reference to sources familiar with plant operations.

The second stage of the 40,000-bpd hydrocracker was taken out of production on June 8 because of a malfunction, the sources said.

Shell did not reply to a request for comment.

The first stage of the hydrocracker continued to operate while the second stage was shut, according to the sources.

As MRC informed previously, in late May, 2021, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Clariant, a specialty chemicals major, is selling its pigments business to a consortium consisting of pigment maker Heubach Group (Langelsheim, Germany) and private investment firm SK Capital (South Korea), according to Kemicalinfo.

The combined business will operate under the Heubach name and create a leading global pigments business with annual sales of more than EUR 900 million (USD1.09 billion).

The transaction values Clariant Pigments at approximately EUR740 million (USD897 million), with an additional consideration of EUR46 million (USD55.8 million) contingent on the business unit’s financial performance in 2021.

As part of the transaction, Clariant will hold a minority stake in the combined company, demonstrating its continued commitment to the success of Clariant Pigments and the significant growth opportunities in the combination with Heubach.

The closing of the transaction is subject to customary conditions and approvals and is expected to occur in the first half of 2022.

Heubach is a global manufacturer of organic, inorganic and non-toxic corrosion protection pigments with four global production sites and approximately 1,000 employees.

Clariant Pigments is a worldwide supplier of organic pigments, pigment preparations and dyes, operates 13 global production sites and employs around 1,900 people.

As MRC reported earlier, in October 2020, Clariant announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

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.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Indorama Ventures (IVL), a global petrochemicals producer, has completed its acquisition of CarbonLite Holdings’ facility in Texas as part of the company’s commitment to increasing polyethylene terephthalate (PET) recycling capacity, according to Hydrocarbonprocessing.

Now known as Indorama Ventures Sustainable Recycling (IVSR), the Dallas site is one of the largest producers of food-grade recycled pellets (recycled PET or rPET) in the US, with a combined capacity of 92,000 tons annually. The facility will recycle more than 3 billion PET plastic beverage bottles per year and support more than 130 jobs directly. IVL is the world’s largest producer of recycled PET for beverage bottles. With this acquisition, IVL expands its US recycling capacity to 10 billion beverage bottles a year, towards its global target of recycling 50 billion bottles (750,000 metric tons) annually by 2025.

Thailand-based Indorama Ventures entered the US PET market in 2003. In 2019, the company acquired recycling facilities in Alabama and California, bringing a circular business model to its US operations. The new acquisition in Texas allows IVL to better serve customers’ increasing need for recycled PET for beverages. America’s leading beverage companies have launched the ‘Every Bottle Back’ project to support the circular plastics economy by reinforcing the value of their fully recyclable PET bottles among consumers.

As MRC reported previously, earlier this month, Indorama Ventures Public Company Limited started developing a new technology center under its Integrated Oxides & Derivatives (IOD) business at The Woodlands, Texas. The new facility will be the company’s US research and development hub for new products used in the home, personal and industrial cleaning, agrochemicals, energy, lubricants, mining, and coatings markets.

According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 263,660 tonnes in the first four months of 2021, up by 13% year on year. Bottle grade PET chips accounted fro 78.3% of the increase in consumption due to the virtual absence of exports and higher imports.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC