Kazanorgsintez participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021

Kazanorgsintez participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021

MOSCOW (MRC) -- Kazanorgsintez PJSC participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021, said the company.

Within the Forum, the Company presented its stand at the 28th International Specialized Exhibition “Oil, Gas & Petrochemicals” and applied to the Best Exhibit, Project or Technology Contest where polycarbonate PC-008UL1 from Kazanorgsintez won Grand Prix.

Kazanorgsintez polycarbonate grade PC-008UL1 along with other products was presented at the company's stand. During the tour of the exhibition the exposition was presented to the President of the Republic of Tatarstan Rustam Minnikhanov by the General Director of Kazanorgsintez PJSC Farid Minigulov.

Kazanorgsintez polycarbonate grade PC-008UL1 has no analogues among Russian manufacturers. It displays unique strength and optical characteristics and also contains stabilizing additives that prevent the destruction of products from atmospheric phenomena including sunlight.

The presented grade is intended for the manufacture of products by extrusion and can also be processed by injection molding. It is worth reminding that Kazanorgsintez is the only manufacturer of polycarbonates in Russia. The production is carried out using the most secure phosgene-free process developed by the Japanese Asahi Kasei Corporation (Asahi Kasei). The production complex in Kazan was launched in 2009. In 2022 the works on increasing the capacity from 65 to 100 thousand tons per year shall be fully completed.

The Tatarstan Oil, Gas & Petrochemicals Forum 2021 is one of the largest international events of the Russian Oil and Gas industry. Every year representatives of Federal authorities, delegations of Russian regions, representatives of neighboring countries, Russian and foreign science, sectorial ministries and departments officials, senior staff and leading specialists of industrial enterprises from all over Russia, near and far abroad become participants of exhibitions and business events within the framework of the Forum. In 2021, the Forum brought together four major industry exhibitions, including: the 28th International Specialized Exhibition "Oil, Gas. Petrochemistry, the 15th Specialized Exhibition "Eco-technologies and Equipment of the XXI Century", the 11th Specialized Exhibition "Geo-Kazan: Geological Exploration. Geodesy. Cartography", the 7th International Specialized Exhibition "Interplastics. Kazan".

Earlier it was reported that the subsidiaries of the Italian engineering company Maire Tecnimont S.p.A. received a contract for the construction of a new Kazanorgsintez plant (KOS, part of TAIF) for the production of high-pressure polyethylene (LDPE) / ethylene vinyl acetate (EVA) at the existing KOS complex in Kazan (Tatarstan, Russia). The capacity of the new enterprise will be 100,000 tonnes of LDPE / EVA per year.

According to MRC's ScanPlast, in June the estimated consumption of LDPE in Russia fell to 45,190 tonnes against 47,780 tonnes a month earlier. Russian manufacturers have increased export sales of polyethylene (PE). In the first six months of the year, the estimated consumption of LDPE in Russia amounted to 280,850 tonnes, which is 2% less than a year earlier. PE output decreased, while export volumes increased.

Kazanorgsintez PJSC is one of the largest enterprises in the Russian Federation (TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total. The annual production volume is 1.6 million tonnes. The enterprise is the largest Russian manufacturer of low-pressure polyethylene (HDPE) pipes. The annual production capacity of HDPE is 540,000 tonnes, and LDPE - 225,000 tonnes.

Fire broke out at Hyosung Ulsan No. 1 PDH unit

Fire broke out at Hyosung Ulsan No. 1 PDH unit

MOSCOW (MRC) -- Hyosung Chemical Corporation, one of South Korea's largest industrial conglomerates, has shut production at its No. 1 propane dehydrogenation (PDH) units at Ulsan, South Korea complex, after a fire broke out here, which took responders up to ten hours to extinguish, according to CommoPlast with reference to local media reports.

This PDH unit's production capacity is 200,000 mt/year of propylene. It was shut on 4-5 September.

No casualties were reported.

According to a statement from the Ulsan Ministry of Defense, the fire first broke out from Hyosung Chemical Yongyeon Plant 1 at 8:43 PM on 4 September 2021. Initial investigation showed the cause of the fire was a gas leak at the propylene plant.

The authorities ordered the company to stop all manufacturing processes and discharge residual gas for safety precaution. Damage assessment is taking place and it is unsure how long the plant would remain offline.

At the Ulsan complex, Hyosung owns three PP lines with a combined capacity of 550,000 tons/year and two PDH units with total outputs of 500,000 tons of propylene/year.

As MRC informed earlier, in February 2021, Linde announced that it has partnered with Hyosung Corporation (Hyosung), to build, own and operate extensive new liquid hydrogen infrastructure in South Korea.

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.

Ufaorgsintez shuts PP production for scheduled turnaround

Ufaorgsintez shuts PP production for scheduled turnaround

MOSCOW (MRC) -- Ufaorgsintez (UOS, Bashneft’s petrochemical asset) has shut its polypropylene (PP) production for a scheduled maintenance, according to ICIS-MRC Price report.

The plant's clients said Ufaorgsintez began a scheduled turnaround at its PP production on 3 September. The outage will be short and will last for about 10 days. The plant's annual production capacity is 120,000 tonnes.

It is also worth noting that Poliom will take off-stream its production with the capacity of 230,000 tonnes per year for a two-week maintenance on 28 September. And Stavrolen will shut its PP production with the annual capacity of 120,000 tonnes per year for 26 days on 13 October.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.

COVID-19 - News digest as of 06.09.2021

1. Sinopec intends to spend USD4.6 bln on hydrogen energy by 2025 as part of becoming a carbon-neutral energy provider

MOSCOW (MRC) -- China Petroleum and Chemical Corp, also known as Sinopec, the world's petrochemical major, plans to spend 30 billion yuan (USD4.6 billion) on hydrogen energy by 2025 as the state oil and gas major pivots to producing natural gas and hydrogen as part of becoming a carbon-neutral energy provider by 2050, according to Hydrocarbonprocessing. Asia's biggest oil refiner plans to become China's largest company to produce hydrogen for use as a transportation fuel, targeting annual capacity of 200,000 tons of hydrogen refuelling by 2025.


Crude oil futures continue falling in Asia in wake of weak US job report

Crude oil futures continue falling in Asia in wake of weak US job report

MOSCOW (MRC) -- Crude oil futures extended a decline in mid-morning trade in Asia Sept. 6 after a weaker-than-expected US employment report heightened near-term demand concerns, reported S&P Global.

At 10:49 am Singapore time (0249 GMT), the ICE November Brent futures contract was down 99 cents (1.36%) from the previous close at USD71.62/b, while the NYMEX October light sweet crude contract was down 91 cents (1.31%) at USD68.38/b.

Both markers fell after US Department of Labor data released late Sept. 3 showed nonfarm payrolls rose by 235,000 jobs in August, down sharply from the 1.05 million increase reported in July and well below market expectations of a rise of more than 700,000.

"I think sentiments are largely following through from the US August jobs report, which underperformed expectations by a wide margin," IG market strategist Yeap Jun Rong told S&P Global Platts Sept. 6. "This highlights that COVID-19 is having a larger near-term impact on recovery than many expected."

ANZ Research analysts in a note said the deceleration in US hiring raised concerns that the delta variant was having an impact on the US economy that would ultimately impact demand.

Meanwhile, producers in the Gulf of Mexico were continuing to aim to bring production capacities back online in the wake of Hurricane Ida. While operations mostly escaped major damage from the storm, there has been minimal recovery in Gulf of Mexico oil output to date, analysts said Sept. 6.

The US Bureau of Safety and Environmental Enforcement reported 82.72% of Gulf of Mexico crude output remained offline Sept. 3, down from 85.89% reported Sept. 5.

With 1.7 million b/d of offshore production yet to come back onstream and most of Louisiana's refining industry debilitated by flooding, US crude and product stockpiles were expected to fall, they added.

As reported earlier, Shell said it observed damage from Hurricane Ida to its transfer station West Delta-143 offshore facilities in the Gulf of Mexico. West Delta-143 serves as the transfer station for all production from its assets in the Mars corridor in the Mississippi Canyon area of the Gulf of Mexico to onshore crude terminals. Shell said it is not yet safe to send personnel offshore to learn the full extent of the damage and estimate the effect on production.

As MRC wrote previously, in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.