COVID-19 infection halts China second-busiest container port in Ningbo

COVID-19 infection halts China second-busiest container port in Ningbo

MOSCOW (MRC) -- A terminal at China's second-busiest container port, Ningbo Zhoushan, suspended operations Aug. 11 after a port worker tested positive for COVID-19, fueling worries that export cargoes will be further delayed heading into the August-November peak season for shipments to the US and Europe, reported S&P Global.

Meidong Container Terminal halted inbound and unloading services from 3:30 a.m. local time Aug. 11. A similar outbreak at Shenzhen's Yantian port in May curtailed operations for a month, contributing to severe congestion at nearly all major North American ports in early August as Yantian ramped up operations to clear backlogs of cargo.

"With this sudden suspension, we expect a delay in planned sailings that might affect your cargo planning," German shipping firm Hapag-Lloyd said in an advisory Aug. 11. "Please know that we are working on alternatives and hope for your understanding on a matter that is beyond our control."

Meidong terminal is part of the Meishan bonded area used regularly by Ocean Alliance members Cosco, Evergreen and CMA CGM.

A US-based freight forwarder noted that any halt of Ningbo port operations is likely spill over to the world's busiest container port complex at Shanghai, which sits just opposite of Ningbo in the Hangzhou Bay in East China and is the likely alternative for some export cargoes that were planned to depart from Ningbo, as well as many arriving ships.

"Shippers are already getting very antsy about Black Friday coming up," a US-based freight forwarder said, referring to the typical late-November start of the year-end holiday shopping season. "We are all dreading any further canceled sailings."

As MRC informed earlier, China's crude oil imports rebounded in July from a six-month low as state-backed refiners ramped up output after returning from maintenance, though independent refineries slowed restocking amid probes by Beijing into trading and taxes.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Limetree Bay refinery gets USD10 mln debtor-in-possession funds to unwind

Limetree Bay refinery gets USD10 mln debtor-in-possession funds to unwind

MOSCOW (MRC) -- Limetree Bay refinery can get another USD10 million in debtor-in-possession (DIP) financing this month, a Houston bankruptcy court judge said, cash that will go toward unwinding operations, reported Reuters.

The St. Croix, US Virgin Islands, refinery filed for bankruptcy in July after investors poured USD4.1 billion into an unsuccessful revival of the aging facility. An initial restart had to be abandoned after its stacks spewed oil on homes and contaminated drinking water.

The 210,000 barrel per day refinery is due to receive up to USD25 million in interim financing while seeking to restructure nearly USD2 billion in debt. It thus far has received USD5.5 million from DIP lender Arena Investors LP.

On Monday, Jefferies Financial Group Inc said it has not found a buyer for the facility despite reaching out to several parties. But Jefferies co-head of US restructuring, Michael O’Hara, said if a buyer was found, there were parties available to replace BP Plc as the facility’s crude oil provider.

The company sought cash to pay workers to remove oil from the nearly-shuttered facility and to reimburse former employees for travel costs.

US prosecutors are investigating potential criminal violations of the Clean Air Act, Limetree bankruptcy counsel Elizabeth Green said on Monday. The investigation has deterred potential investors, Limetree’s lawyers have said.

Judge Jones, who is a veteran of refinery restructurings in the Southern District of Texas court, said in July he was concerned about Limetree’s ability to through Chapter 11 with the existing DIP loan.

The process of decommissioning the refinery will take several months, the company’s owner, a consortium led by EIG Global Energy Partners, told the Texas court this month.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Bapco awards largest catalyst management agreement in its history to Grace and Chevron JV

Bapco awards largest catalyst management agreement in its history to Grace and Chevron JV

MOSCOW (MRC) -- Advanced Refining Technologies LLC (ART), the joint venture of US speciality chemicals and materials company W. R. Grace & Co. and US energy company Chevron, announced the award of an FCM agreement by state-owned Bahrain Petroleum Company (Bapco), according to Hydrocarbonprocessing.

The exclusive, 5-year agreement, which includes an option to renew for an additional five years, is valued at USD240 million, the largest catalyst management agreement ever signed in Bapco’s history.

As part of the BMP, Bapco will boost Bahrain’s oil refinery processing capacity from 267,000 (b/d) to 380,000 (b/d). In addition, ART will supply its Resid Hydrocracking catalyst technology for a wide variety of feedstocks to maximize bottom of the barrel upgrading. The technology is the industry-leading catalyst for metals capacity and sediment control. In addition, ART will provide FCM services for the reclamation of metals from spent catalysts.

When fully operational in 2023, the new Resid Hydrocracking unit known as 1RHCU will be the main profit centre for the Bapco Refinery. 1RHCU utilizes LC-FINING process technology licensed from Chevron Lummus Global (CLG), a joint venture between Chevron and Lummus Technology.

The unit is a two-train design with a processing capacity of 65,000 barrels per day. Bapco’s application of this state-of-the-art technology will be the first within the Middle East. Less than a dozen of these units exist globally, and the Bapco unit will be one of the largest examples.

As MRC reported earlier, in May 2019, Bapco completed multi-billion-dollar financing aimed at expanding its refining capacity to 380,000 barrels per day (bpd) from 267,000 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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Sika acquires leading producer of tile adhesives and stuccos in Mexico

Sika acquires leading producer of tile adhesives and stuccos in Mexico

MOSCOW (MRC) -- Sika, a producer of construction chemicals, acquires Bexel Internacional S.A. de C.V., a leading manufacturer of tile adhesives and stuccos in Mexico, as per the company's press release.

The acquisition strengthens Sika’s position in the large, fast-growing Mexican mortar market and significantly extends its manufacturing footprint. In 2020, the acquired company generated sales of CHF 35 million.

Bexel is a family-owned, well-run business which has successfully built up a strong position in the Mexican Building Finishing mortars market. The company enjoys an excellent reputation through its well-known brand and has a strong presence in the distribution channel, mostly focusing on home centers and builders’ merchants.

Bexel operates five strategically located production plants which perfectly complement Sika’s existing geographical footprint and further support the strategic focus on big cities. The new site serving Mexico City adds important production capacity, strengthening Sika’s position in this fastgrowing metropolitan area. With the combined presence, Sika now has a nationwide manufacturing coverage for mortars that will enhance its ability to serve and supply customers with its products throughout the country.

The acquisition strengthens Sika’s Building Finishing portfolio and distribution network in Mexico, providing interesting cross-selling opportunities for complementary products such as sealants, adhesives, liquid applied membranes, and waterproofing products.

As MRC reported earlier, in July 2021, Sika acquired American Hydrotech Inc. in the USA and its affiliate Hydrotech Membrane Corporation in Canada. Hydrotech is an experienced and highly regarded liquid membrane manufacturer and provider of full-system roofing and waterproofing solutions. In the fastgrowing green/garden roof segment, Hydrotech is the clear North American market leader. The acquisition strengthens Sika’s roofing and waterproofing portfolio, and complements Sika’s sustainability focus. In 2020, the acquired company generated sales of CHF 83 million.

And in November 2020, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

Toyo Engineering gets contract from Prime Polymer for construction of new PP plant in Chiba

Toyo Engineering gets contract from Prime Polymer for construction of new PP plant in Chiba

MOSCOW (MRC) -- Toyo Engineering Corporation (TOYO) has been awarded a contract for a project to construct a polypropylene (PP) plant in Ichihara-shi, Chiba, Japan from Prime Polymer, as per the company's press release.

TOYO will carry out the EPC contract on a full turn-key basis that includes engineering, procurement, and construction.

The new plant's production capacity will be 200,000/mt year. The completion of construction worls is scheduled for 2024.

Responding to the social needs aspire all business entities to contribute on sustainability, the client awarded the contract to TOYO because of evaluation as an active partner from early stage for several years along with the company's rich experiences of petrochemical projects, execution ability of large-scale EPC projects and our proposal from the viewpoint of safety, cost, quality, delivery and environment.

As MRC wrote previously, TEC Project Services Corp., a subsidiary of Toyo Engineering, said in April, 2019, it was awarded a propylene splitter project from Maruzen Petrochemical to produce a "high-grade product" at Maruzen's plant in Ichihara-shi, Chiba, Japan. TEC will be responsible for detailed engineering, procurement of equipment and materials, and construction. Completion is scheduled in 2021.

According to MRC's ScanPlast report, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC