Yansab to restart cracker at Yanbu, Saudi Arabia

MOSCOW (MRC) -- Yanbu National Petrochemical Company (Yansab), part of Saudi Basic Industries Corporation (Sabic), plans to restart its cracker on 23 July, 2021, after an unplanned repairs, reported Agraam with reference to the company's statement in a bourse filing.

The cracker in Yanbu, Saudi Arabia, which can produce 1.38 mln mt/year of ethylene and 400,000 mt/year of propylene, was temporary shut on 11 July, 2021, due to technical issues.

The petrochemical producer is currently working on repairs and necessary maintenance. Thus, the shutdown is expected to continue for 12 days.

As MRC reported earlier, in 2021, the company conducted a scheduled turnaround at this cracker from 5 to 15 February.

The company also has polyolefin plants at the same site with production capacity of 400,000 tons/year of polypropylene (PP), high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) each. They were also taken off-line for maintenance at the same period as the 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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Yansab is the most recent SABIC, (Saudi Basic Industries Corp), affiliate in Saudi Arabia, and will be the largest Sabic petrochemical complex. It will have an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT (metric-tons) of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene; 400,000 MT of polypropylene; 700,000 MT of ethylene glycol; 250,000 MT of benzene, xylene and toluene, and 100,000 MT of butene-1 and butene-2.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Crude oil futures declined during the mid-morning trade in Asia July 19, as the market participants were concerned over a rise in supply following an OPEC+ deal to an impending increase in production quotas, while the rapid spread of the Delta variant of the coronavirus raised worries about the re-imposition of demand-sapping mobility restrictions, reported S&P Global.

At 10:53 am Singapore time (0253 GMT), the ICE September Brent futures contract was down USD1.20/b (1.63%) from the previous close at USD72.39/b, while the NYMEX August light sweet crude contract was down USD1.14/b (1.59%) at USD70.67/b.

"A cocktail of bearish factors are causing the fall in prices we are

The OPEC+ producer group, on July 18, reached a deal to increase its production quotas by 400,000 b/d each month starting in August, amounting to a 2 million b/d total increase by the end of the year. The agreement also involved an extension of the coalition's supply management pact through to 2022.

The OPEC+ resolution puts an end to an acrimonious spat between Saudi Arabia and the UAE, which had arisen after the UAE had objected to Saudi Arabia's plan to tie OPEC+ production increases to a lengthening of the supply management pact, insisting that its baseline production level, from which its quota is determined, be raised first.

In an appeasement to the UAE, the country will receive a 332,000 b/d boost to its reference production level, from which quotas are determined, starting in May 2022. Meanwhile, Saudi Arabia and Russia will also be granted 500,000 b/d baseline increases, with Iraq and Kuwait getting 150,000 b/d rises.

While the compromise has brought more clarity to the supply-side of the equation in the market, it has failed to alleviate concerns of a potential breakdown in OPEC+ unity.

Meanwhile, analysts also said that the rapid spread of the Delta variant of the coronavirus has also soured sentiment in the market, as countries around the world consider tightening or have tightened mobility restrictions.

As MRC informed earlier, OPEC stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise in 2022 at similar to pre-pandemic rates, led by growth in the United States, China and India.

We remind that China's crude oil imports fell 3% from January to June versus a year earlier, in the first first-half contraction since 2013, as an import quota shortage, refinery maintenance and rising global prices curbed buying. Imports totalled 40.14 million tonnes last month, data released by the General Administration of Customs showed on Tuesday, equivalent to 9.77 million barrels per day (bpd).

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Prime Polymer Co., Ltd., a joint venture between Mitsui Chemicals, Inc. (Tokyo) and Idemitsu Kosan Co.,Ltd. (Tokyo), plans to start building a new polypropylene (PP) plant at its Ichihara Works in Chiba, Japan in August, 2021, according to Chemical Engineering.

The decision to construct a new manufacturing facility made in late May, 2021, is part of the company's plans for a scrap-and-build-style restructuring of its production system.

The new plant is slated to produce 200,000 mt/year of PP using licensed process technology from Mitsui Chemicals (the HYPOL process). Its operations are scheduled to start up in November 2024.

The new manufacturing facility to be constructed will enable the production of high-performance PP, something that has been unattainable with the facility used to date, and allow Prime Polymer to meet the growing needs for lightweighting and thinning in automotive materials. And through its offering of recycling-conducive materials here, Prime Polymer is looking to help drive material recycling.

Moving forward, Prime Polymer plans to suspend its existing manufacturing facility with a view to production capacity that is in line with supply-demand balance.

In restructuring its production system here, Prime Polymer anticipates the effect of approximately 70,000 tons in reduced greenhouse gas emissions annually against 2013 figures. Further, Prime Polymer will be ramping up its circular economy-related efforts through the likes of providing of biomass raw material-based materials.

As MRC reported earlier, in 2017, Mitsui Chemicals and Prime Polymer announced the completion and start-up of three augmented PP compound hubs. The group expanded two lines at its Advanced Composites subsidiary in the US. One line was enhanced at the group's Advanced Composites Mexicana site in Mexico and another line was augmented at Mitsui Prime Advanced Composites India in India. With the enhancements, Mitsui's total PP compound production capacity has increased to 1.05-million t/y from 1-million t/y.

According to MRC's ScanPlast report, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Prime Polymer Co., Ltd. was established in April 2005 as part of a comprehensive tie-up with Mitsui Chemicals, Inc. and Idemitsu Kosan Co., Ltd. The company's activity is focused in polyolefins business to produce different grades of polythylene (PE) and polypropylene (PP).
MRC

MOSCOW (MRC) -- The International Chamber of Commerce's arbitration tribunal has determined that Edison, the former owner of Solvay's Spinetta Marengo and Bussi sul Tirino sites, is liable for breaching environmental representations and warranties in its sale to Solvay in 2001, as per Solvay's press release.

The partial decision, issued on June 22, ordered Edison to compensate Solvay for losses and damages incurred up to the end of 2016. It reserved its decision on additional losses and damages from 2017 onwards, including the interest applicable to the amount awarded and the costs of litigation, for another possible phase of arbitration proceedings.

The decision comes after years of international arbitration by Solvay claiming that Edison is liable for breaches of the environmental conditions and provisions contained in the Share Purchase Agreement of December 2001. This agreement resulted in Solvay's acquisition in 2002 of the Italian company Ausimont SpA, which at that time was owned by (Mont)Edison.

The outcome of the arbitral sentence is very important for Solvay as it recognises the deliberate misrepresentations we experienced during the acquisition process. This did not prevent Solvay from undertaking necessary important remedial actions over many years. It’s a further illustration of the company's commitment to do what is right in terms of the environment and to pursue its rights when it considers that others are at fault, according to the statement.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first quarter of 2021, according to Rosstat's data. production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes in the first three months of 2021, up by 8.5% year on year.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

MOSCOW (MRC) -- New equipment will be installed at the production of Nizhnekamskneftekhim, said the company.

New equipment - containers for storing finished products - will be installed at the production of metoxpolyethylene glycols (MPEG). The production of MPEG at the OiG plant of PJSC "Nizhnekamskneftekhim" began in 2019. The products have found wide application in pharmacology, paint and varnish and metalworking industries, where MPEG is used as a binder.

Shop №6711 of the oligomers and glycols plant is involved in the technological process of MPEG production. Finished products are stored in the adjacent workshop No. 6712. For this purpose, five vertical tanks are installed here. In connection with the expansion of the brand assortment of produced MPEGs, a decision was made to increase the number of storage tanks up to eight.

Currently, work is underway to install new equipment. The MPEG storage site will be equipped with a pumping unit for circulation and pumping of the product to the loading and unloading rack. The installation of a new product storage point, as well as commissioning operations, is scheduled to be completed by the end of August.

The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. The merged company of SIBUR and TAIF will include the parent company of the Tatarstan group, as well as two of its chemical plants and an energy company, including NKH and KOS.

As per ICIS-MRC Price Report, Some market participants said demand and supply of Nizhnekamskneftekhim's material were generally balanced. There was no sharp surge in demand this month, despite a major price reduction. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 152,000-163,000/tonne, whereas HIPS prices were at Rb156,000-167,000/tonne CPT Moscow, including VAT. A major trader offered GPPS for sale at Rb155,000/tonne CPT Moscow, including VAT.

PJSC "Nizhnekamskneftekhim" is one of the largest petrochemical companies in Eastern Europe, occupies a leading position among domestic producers of synthetic rubbers, plastics and ethylene. Part of the TAIF Group of Companies. The company was founded in 1967, the main production facilities are located in Nizhnekamsk, Republic of Tatarstan. The nomenclature of manufactured products includes more than 120 items. The products of the joint-stock company are exported to 50 countries in Europe, America and Southeast Asia. The share of exports in the total volume of production is about 50%.
MRC