Vietnam to build third oil refinery to meet domestic consumption demand

MOSCOW (MRC) -- Vietnam is seeking to build its third oil refinery to meet domestic consumption demand as the country is facing a supply shortage and soaring energy prices, reported Reuters with reference to deputy prime minister, Le Van Thanh's statemet at a parliament meeting.

The plant, which is set to be located in the southern province of Vung Tau, has a design capacity of 10 MMm3 (3.5 MMtpy), Thanh said.

Vietnam's state oil firm PetroVietnam is drafting investment procedures, which it aims to complete by this October, he said.

Two refinery plants in Vietnam were put into operation in 2009 and 2018, according to the government, but both only meet around 70% of domestic demand.

With this new plant, Thanh said Vietnam's total capacity would reach 23 MMm3, which was expected to be enough for domestic use.

As MRC wrote before, Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1% owned by Japan’s Idemitsu Kosan Co, 35.1% - by Kuwait Petroleum, 25.1% - by PetroVietnam and 4.7% - by Mitsui Chemicals Inc.

We remind that a fire broke out at a steam turbine generator (STG) belongings to Nghi Son Refinery and Petrochemical (NSRP) in Vietnam on 21 February 2022, that forced the producer to take its 370,000 tons/year polypropylene (PP) unit offline.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes in 2021, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
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MOSCOW (MRC) -- Kazakhstan's Chevron-led Tengizchevroil (TCO) plans to increase exports of liquefied petroleum gas (LPG) through the Georgian port of Batumi and may resume shipments to Poland, said Hydrocarbonprocessing.

TCO has been shipping most of its LPG to Ukraine and to the ports of Temryuk and Taman in the south of Russia, but what Moscow calls a "special military operation" in Ukraine has limited possibilities for such shipments. TCO declined to comment on commercial matters.

TCO's production of propane and butane fell to an average of 1,580 tpd during the first 14 days of March from 4,200 tpd in the first half of February, traders familiar with the production data said. An embargo on rail shipments of all goods including LPG to Ukraine was introduced on Feb. 24 by the Russian Railways. LPG is supplied from Kazakhstan to Ukraine via Russia.

LPG supplies to the port of Taman were suspended due to overstocking. Supplies via Temryuk port in the Sea of Azov were also suspended by Russia until further notice. TCO rerouted some of its LPG supplies to the port of Batumi in March, the rail data showed. The company will supply 19,500 t of the product to the port this month compared to an average volume of 8,000 t in January-February, according to rail data in Refinitiv Eikon.

The traders said that TCO, after a three-year break, may resume the supply of its LPG to Poland. It was not clear if supplies may start this month. TCO exports in 2021 averaged 110,000 t of LPG per month, of which 40,000 t were supplied to Ukraine. The company also shipped about 20,000 t each through the ports of Taman and Temryuk per month, according to rail data in Refinitiv Eikon.

As per MRC, German speciality chemicals maker LANXESS on Friday said it was suspending its business activities in Russia due to the war in Ukraine. Thus, the company had “suspended business activities with Russian customers as far as contractually possible until further notice” and had suspended all investments in Russia. Its sales in Russia and Ukraine made up less than 1% of its global sales, it said.

TCO is owned by Chevron (50%), ExxonMobil (25%), KMG (20%) and LukArko (5%).
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MOSCOW (MRC) -- As part of the efforts to support the increasing demand for medical gloves globally due to COVID-19 pandemic, BASF, the world's petrochemical major, is planning to double its Softex production capacity at its Cimanggis site in Indonesia, according to MarketScreener.

This expansion reiterates BASF's continued commitment to Asia Pacific and specifically to customers in the medical glove industry that are playing a very pivotal role during the COVID-19 pandemic.

Softex dispersion is a critical material used in medical exam glove production, and it is being recognized throughout the APAC region for helping glove producers to deliver high quality gloves.

"Since its establishment in 1979, the Cimanggis site is an important production facility for the region. BASF has also upgraded its facilities to enable the supply of high-quality materials used in the production for medical gloves. The COVID-19 pandemic has driven a high demand for medical gloves globally, from 340 billion pieces in 2019 to 500 billion pieces in 2021?. And BASF remains committed to support customers and societal needs, especially during this period," said Dr. Laszlo Szarvas, Vice President, Business Management Home Care, I&I and Industrial Formulators, Care Chemicals, BASF Asia Pacific.

As MRC reported previously, BASF is to increase its production capacity for plastic additives at its sites in Pontecchio Marconi, Italy and Lampertheim, Germany. BASF did not disclose, however, current or future capacities for its production of plastic additives hindered amine light stabilizers (HALS).

We remind that BASF is strengthening its global catalyst development and helping customers to bring new products faster to the market. As part of this strategy, BASF is building a new pilot plant center at its Ludwigshafen site. The new Catalyst Development and Solids Processing Center will serve as a global hub for pilot-scale production and process innovations of chemical catalyst.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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MOSCOW (MRC) -- Asahi Kasei has formed a strategic partnership with USbased Genomatica regarding hexamethylenediamine (HMD) based on biomass-derived raw materials (bio-HMD), said Hydrocarbonprocessing.

Asahi Kasei currently uses fossil fuel–derived HMD as an intermediate to manufacture Leona polyamide 66 an engineering plastic featuring heat resistance and rigidity. Polyamide 66 is used for plastic parts in automotive and electronics applications, as well as yarn for airbag fabric. Demand for polyamide 66 is expected to increase worldwide.

As the world moves toward carbon neutrality, attention is increasingly focused on solutions for reducing GHG emissions from chemical products derived from fossil fuels. The strategic alliance with Genomatica provides Asahi Kasei with preferential rights to access the early volume of bio-HMD to evaluate the possibility as a feedstock of polyamide 66, enabling Asahi Kasei to accelerate trials of polyamide 66 made using biomass-derived intermediate. Genomatica has an established track record of commercializing manufacturing technology for various chemical products using biotechnology. By using this bio-HMD with its own polyamide 66 polymerization technology, Asahi Kasei aims to support its goal to be first-to-market with more sustainable polyamide 66 made using biomass-derived intermediate for the automotive and electronics application of plastics components and industrial fiber.

Asahi Kasei moreover expects that this use of biotechnology will contribute to reaching its goal of becoming carbon neutral by 2050, while also alleviating the environmental burden throughout the life cycle of customers’ products.

As MRC informed before, in July 2019, Asahi Kasei decided to expand its plant for the artificial suede LamousTM in Nobeoka, Miyazaki Prefecture, Japan, by four million m2/year, increasing the total production capacity to 14 million m2/year upon completion in 2021.

Asahi Kasei Corporation is a multinational Japanese chemical company. Its main products are chemicals and materials science. It was founded in May 1931, using the paid in capital of Nobeoka Ammonia Fiber Co., Ltd, a Nobeoka, Miyazaki based producer of ammonia, nitric acid, and other chemicals. Now headquartered in Tokyo, with offices and plants across Japan, as well as China, Singapore, Thailand, USA and Germany.
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MOSCOW (MRC) -- Mitsubishi Chemical Corporation (MCC) and Toyota Tsusho Corporation have begun a joint-consideration to manufacture and sale ethylene, propylene, and their derivatives using bioethanol as a raw material, with an aim to commence operation in 2025, according to Indian CHEMICAL News.

There is a growing need for plastic reuse and recycling to achieve the realization of a sustainable recycling-oriented society. There are also strong expectations for realizing a sustainable life cycle by using plant-derived materials.

MCC and Toyota Tsusho are working on the commercialization of various recycling processes and aim to realize a recycling-oriented society by switching from raw materials derived from fossil fuels to plant-derived materials.

In order to make a wide range of products more sustainable, including products which are generally difficult to collect and recycle among packaging/containers and sanitary goods, both companies have decided to examine how to commercialize the manufacture and sale of ethylene, propylene, and their derivatives made from plant-derived raw materials.

MCC and Toyota Tsusho will evaluate the manufacture of 100% plant-derived ethylene (bioethylene) and its derivatives using bioethanol as a raw material, and the manufacture and sale of the first plant-derived propylene in Japan (biopropylene) and its derivatives using bioethylene as its raw material.

Both companies will investigate the market need for bioethylene, biopropylene, and their derivatives and conduct a concrete feasibility assessment with an aim to commercialize by 2025.

As MRC reported earlier, in February 2022, MCC and its subsidiary, Mitsubishi Chemical Methacrylates (MCM announced plans to design and build a pilot plant to further validate the technology. Three possible pathways to creating sustainable MMA, including the molecular recycling of acrylic resin; substituting conventional materials with drop-in plant-derived raw materials in the existing MMA monomer manufacturing process; and the direct production of MMA monomers from plant-derived raw materials by fermentation were explored. The promising results using the drop-in route have now led to the decision to commence with the design process for a new pilot plant using this technology.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

The Japanese integrated chemical company Mitsubishi Chemical was established on October 1, 1990 as a result of the merger of Mitsubishi Kasei and Mitsubishi Petrochemical Co. Due to the wide scope of its activities, it is one of the ten leading chemical companies in the world.
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