Chennai Petroleum board approves refinery JV with IOC and seed equity investors

Chennai Petroleum board approves refinery JV with IOC and seed equity investors

MOSCOW (MRC) -- Chennai Petroleum Corporation Ltd, (CPCL), belonging to Indian Oil Corporation Ltd, said on August 23 its board of directors has approved the proposal for the formation of a joint venture company for implementing the refinery and petrochemical complex, said Business-standard.

The nine million tonne per annum (MTPA) refinery project at Cauvery Basin Refinery, Nagapattinam district, Tamil Nadu, is being set up at an estimated investment of Rs 31,580 crore.

The investors include Chennai Petroleum Corporation, Indian Oil Corporation and other seed equity investors, namely Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company.

Also Read: 22 entities, including Indian Hotels and DLF, show interest in The Ashok Hotel’s monetisation. Further, the board of directors of the company has accorded approval for equity investment of up to Rs 2,570 crore in the joint venture, towards CPCL's contribution of 25 percent.

IOC and its subsidiary Chennai Petroleum Corporation will hold 25 percent each in the proposed 9 MTPA refinery, the remaining 50 percent will be held by a strategic or financial partner.

Earlier it was reported that Indian Oil Corp Ltd (IOC), the second largest petrochemical producer in India with a share of 16%, plans to close the production of polyethylene in Panipat (Panipat, India) in mid-September for scheduled repairs. This enterprise with a capacity of 350 thousand tons of LDL and 300 thousand tons of HDPE per year will be closed for approximately 65 days. According to an official statement from IOCL, the plant will be closed as part of scheduled maintenance of the petrochemical complex in Panipat.

Indian Oil Corporation (IOC) is an Indian state oil and gas corporation headquartered in New Delhi.

INEOS supplies Covestro with mass-balanced raw materials for polycarbonate plastics

INEOS supplies Covestro with mass-balanced raw materials for polycarbonate plastics

MOSCOW (MRC) -- Covestro will now be supplied with the two mass-balanced raw materials phenol and acetone from INEOS’ INVIRIDIS product range, said the company.

Covestro uses these CO2-reduced products to manufacture its high-performance polycarbonate plastic. It is used in headlights and other automotive parts, but also in housings for electronic devices, light guides and lenses, medical devices, and many other high-value applications.

"By switching to mass-balanced renewable raw materials, we aim to significantly reduce our indirect emissions in the supply chain and offer products with a reduced carbon footprint," says Sucheta Govil, Chief Commercial Officer of Covestro. "In doing so, we’re helping our customers to meet their climate goals and advance the transition to a circular economy."

Lily Wang, global head of the Engineering Plastics segment, emphasizes the further benefits for customers: "We offer them a drop-in solution that they can quickly and easily integrate into existing production processes without requiring any technical changes. The products show the same good quality as their fossil-based counterparts." As part of the CQ family of circular intelligent solutions, Covestro offers them under the names Makrolon® RE, Bayblend® RE, Makroblend® RE, and Apec RE. With its new CQ concept, Covestro highlights the alternative raw material basis in products and thus gives a clear indication to customers who are looking for such products.

INVIRIDIS™ brand phenol and acetone are produced from bio-attributed cumene at INEOS’ Gladbeck and Antwerp sites – without competing with the food supply. Both sites are certified according to the internationally recognized ISCC PLUS as well as the RSB standard. The raw materials have a lower carbon footprint than petroleum-based products.

Certification by ISCC PLUS and RSB underlines INEOS’ strong commitment to working with the bioeconomy and reflects the strong sustainability of INVIRIDIS™.

Gordon Adams, Business Director of INEOS Phenol, said, "As part of our sustainability strategy, we have developed these more sustainable phenol and acetone products, which we have named INVIRIDIS™. This new product range provides our customers with drop-in product options that meet their stringent quality and performance requirements. At the same time, we’re moving the industry toward a more climate-friendly economy for phenol and acetone without compromising its unique product attributes."

As per MRC, INEOS and Sinopec have signed three back-to-back deals worth a combined value of USD7bn.
These landmark agreements are expected to generate a combined turnover of around USD10bn from 7 million tonnes of capacity. The three agreements will significantly reshape Ineos’ petrochemicals production and technology in China.

INEOS is a global chemicals company making the raw materials and energy used for everyday life. Its products make an indispensable contribution to society by providing the most sustainable options for a wide range of societal needs. For example, preservation of food and clean water; construction of wind turbines, solar panels and other renewable technologies; for construction of lighter and more fuel-efficient vehicles and aircraft; for medical devices and applications; for clothing and apparel; and for insulation and other industrial and home applications.

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, cosmetics and health, as well as in the chemical industry itself.

Dow Chemical cuts global polyethylene production by 15%

Dow Chemical cuts global polyethylene production by 15%

MOSCOW (MRC) -- Dow is cutting global polyethylene (PE) production rates by 15%, said S&P.

“Given continued global logistics constraints, including port and rail congestion in the US Gulf Coast and dynamic conditions in Europe, Dow is reducing operating rates across our polyethylene assets, resulting in temporarily lowering 15% of our global polyethylene nameplate capacity,” says the letter, dated 24 August.

The letter says Dow expects the cutbacks to help balance high inventories at key global ports and packaging warehouses, particularly in the US Gulf Coast during August and September, the months when strong hurricanes are most likely to strike the region. Hurricane season, which lasts from June to November, has been quiet so far this year, although the National Oceanic and Atmospheric Administration (NOAA) predicted an above-average number of storms.

Dow did not respond to a request for comment. The company is the second-largest PE producer in the world, with a total of 9.8 million mt/year (MMt/y) of capacity, according to Platts petrochemical analytics. ExxonMobil is largest, with 10.6 MMt/y of capacity.

With global resin demand softening and logistics already a challenge, US polymer producers have been expected to reduce rates. PE prices have nosedived in recent months both in the US and globally, as have prices for polyvinyl chloride (PVC) and polypropylene (PP), which are used to make the more durable plastics used in construction and the automotive industry.

Asian polymer exports have meanwhile ramped up, in part because domestic demand has not rebounded following the COVID-related shutdowns of early 2022, but also because freight rates out of the region have fallen back from record-highs. US prices have retreated to compete, but logistical problems at ports have impeded outflows just as domestic demand slowed.

European ports have also seen clogs emerge, slowing imports, while demand in the region has waned amid recession fears and record-high energy costs exacerbated by Russia’s ongoing invasion of Ukraine. “Dow’s notification made it official, but everybody already knew,” a US PE source says.

“This is a very defensive and well thought-out plan to prevent additional price and margin erosion,” says Rob Stier, senior lead of global petrochemical analytics at S&P Global Commodity Insights. “We’re quickly approaching a global net-zero margin environment where supply rationalization like Dow just did is going to be required for the foreseeable future, and all it will do is provide a temporary reduction in price and margin pressure.”

The duration of the rate cuts will depend on how long it takes for European market dynamic as well as jammed-up US and European logistics to normalize, Dow’s letter says.

Europe-based INEOS’s US division gave an early view several months ago of what was to come. In mid-April, the company declared force majeure on polymers produced at all of its US manufacturing sites in anticipation of a cutback in rail shipments resulting from congestion and backlogs. INEOS has five US manufacturing sites with a total of 1.25 MMt/y of HDPE capacity and 1.43 MMt/y of PP capacity.

As per MRC, Dow has signed a memorandum of understanding (MoU) with Chinese food and beverage firm Want-Want for zero-solvent emissions and to develop a circular economy for flexible packaging, said the company.

We remind, Dow, recycler KW Plastics of Troy, Alabama; molder Core Technology Molding Corp. of Greensboro, North Carolina; and sustainable golf company Evolve Golf of Wilmington, North Carolina, collaborated to reuse high-density polyethylene (HDPE) plastic mesh fencing from the previous year’s GLBI in the form of 20,000 ball markers and 5,500 divot tools for this year’s event.

PPG invests USD11 million to double powder coatings capacity in Mexico

PPG invests USD11 million to double powder coatings capacity in Mexico

MOSCOW (MRC) -- PPG will invest USD11 million to double the production capacity of its powder coatings plant in San Juan del Rio, Mexico, said the company.

The expansion project is expected to be completed by mid-2023 and will allow the plant to meet the expected future demand for powder coatings in Mexico. “With this investment, the plant will have new, state-of-the-art manufacturing technology, enhancing production practices and process flow,” said Guillermo Pena, PPG director, Industrial Coatings, Mexico. “It will further improve the plant's productivity and benefit our customers with improved service levels and faster response."

The project will involve the installation of new production lines, upgrades to existing equipment and increased application capabilities. The increase in production will also allow PPG to locally manufacture new, innovative powder coatings products.

Powder coatings are a sustainable product offering with low VOC emissions, enhanced durability, high transfer efficiency and the ability to be reclaimed or reused during application. They are an important part of the company’s commitment to achieve 40% of sales from products and processes that have improved sustainability by 2025.

The expansion plan for PPG’s San Juan del Rio powder plant, which meets the key IATF-16949 quality certification, is the latest in a series of actions that underline PPG’s commitment to investing in further growth for powder coatings. Earlier in 2022, PPG acquired Arsonsisi’s powder coatings manufacturing business, and in 2020, PPG purchased Alpha Coating Technologies, a manufacturer of powder coatings for light industrial applications and heat-sensitive substrates.

As per MRC, PPG announced PPG INNOVEL PRO, an enhanced internal spray coating that uses no bisphenol-A (BPA) or bisphenol starting substances and provides more robust application properties for the infinitely recyclable aluminium beverage can. PPG Innovel PRO is a next-generation, high-performance acrylic coating that draws on PPG Innovel's nearly 10 years as the market's most widely used non-BPA internal beverage spray coatings. The company estimates that PPG Innovel coatings have been used on more than 220 bn cans in more than 40 countries to date.

EU watchdog reviewing SK Chemicals anti-Covid jab

EU watchdog reviewing SK Chemicals anti-Covid jab

MOSCOW (MRC) -- The European medicines watchdog said Thursday it was reviewing German-based pharmaceutical SK Chemicals' coronavirus vaccine which uses nanotechnology to combat the virus, amid concern of a possible comeback later in the year, said Philstar.

If eventually approved, the vaccine called Skycovion will be the seventh jab to join the European Union's growing toolkit, although other vaccines are also currently being reviewed. The Amsterdam-based EMA's human medicines committee "has started a review of a conditional marketing authorisation application for Skycovion, a vaccine for protecting against COVID-19," it said.

SK Chemicals GmbH "has submitted data on how well the vaccine triggers the production of antibodies against the original strain of SARS-CoV-2, the virus that causes COVID-19," the EMA added in a statement. The vaccine works with nanoparticles that contains parts of the spike protein found on the coronavirus' surface.

"When a person is given the vaccine, their immune system is expected to identify the nanoparticles containing parts of the spike protein as foreign and produce natural defences -- antibodies and T cells -- against them," the EMA said. Later, if the person is in contact with the virus, the immune system will recognise the spike protein on the virus and attack it.

The vaccine also contains an "adjuvant", a substance to help strengthen the immune response to the vaccine, the EMA said. Currently, the EU has approved vaccines by AstraZeneca, Janssen, BioNTech-Pfizer, Moderna, Novavax and Valneva, although the latter has suspended production.

Milder, but more infectious than earlier types of the Covid virus, the BA.4 and BA.5 types, have helped to drive a wave of new cases of the disease in Europe and the United States, the number of cases is dropping off.

European nations are now starting to look ahead to the autumn and winter season, when cases are expected to peak once more. We remind, SABIC, a global leader in the chemicals industry, has announced that its SABIC SK Nexlene Company (SSNC) joint venture with SK Geo Centric (formerly SK Global Chemicals) in South Korea will expand the capacity of their plant in Ulsan for production of advanced material solutions using NEXLENE technology. The plant, operated by Korea Nexlene Company (KNC), supports the production of SABIC’s broad portfolio of COHERE™ metallocene polyolefin plastomers (POP), SUPEER™ metallocene linear low density polyethylenes (mLLDPE) and FORTIFY™ polyolefin elastomers (POE).