Indorama Q2 earnings almost double

Indorama Q2 earnings almost double

Indorama Ventures Limited (IVL)’s second-quarter sales and earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply, year on year, on the back of strong sales volumes and improved profit margins, said the company.

Net profit, which the company reports in its home currency, more than doubled during the quarter to baht (Bt) 20.3bn (USD571m). IVL said it had managed to offset high energy prices in Europe and the US thanks to the “combination of strong sales and improved margins".

By division, the company said its largest unit producing polyethylene terephthalate (PET) and derivatives had posted 35% higher earnings during Q2, year on year, though they fell by 1% quarter on quarter. “[The division, called Combined PET] delivered strong EBITDA … on high margins driven by seasonally strong demand, supply chain constraints and overall market tightness,” said IVL.

IVL’s Integrated Oxides and Derivatives (IOD) division also posted higher earnings, both year on year and quarter on quarter. However, sales and earnings fell year on year and quarter on quarter in the Fibers division as it took a hit from China’s lockdowns to contain the pandemic as well as disruption in Russia.

We remind, seasonally strong demand, supply chain constrains, overall market tightness and production in key locations like the US has driven Indorama's polyethylene terephthalate (PET) business to a 35% year-on-year growth. As a domestic producer in western premium markets, the heightened freight rates and longer lead times for imported goods allowed Indorama to re-price domestic sales at attractive margins, allowing them to reach this growth year on year.
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Olin to permanently cut chlor-alkali capacity at Texas plant

Olin to permanently cut chlor-alkali capacity at Texas plant

Olin said that it plans to permanently shut down 225K ECU tons of diaphragm-grade chlor-alkali capacity at its Freeport, Texas, facility by the end of this year, said the company.

Following the closure, Olin (OLN) said it will have rationalized more than 1M ECU tons of diaphragm-grade chlor-alkali capacity in less than two years.

"These actions demonstrate our commitment to lift and maintain our ECU values, while developing a more sustainable asset configuration," the company said.

Olin (OLN) recently reported Q2 adjusted earnings of USD2.76/share on revenues of USD2.62B.

MRC reported earlier, that Olin is temporarily curtailing a "significant portion" of its ethylene dichloride and related chlor-alkali production at its Freeport, Texas, complex.

In June Olin restarted half of its chlor-alkali unit at its Plaquemine, Louisiana, complex, and expects to bring up other operations at the complex in August. The chlor-alkali facility can produce up to 970,000 mt/year of chlorine and 1 million mt/year of caustic soda. The site's EDC unit can produce up to 420,000 mt/year.

Chlorine reacted with ethylene makes EDC. Caustic soda is a byproduct of chlorine production and a key feedstock for alumina and pulp and paper industries.
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PetroChina’s Dagang refinery commissions new alkylation unit using Ionikylation Technology

PetroChina’s Dagang refinery commissions new alkylation unit using Ionikylation Technology

PetroChina Dagang Petrochemical Company successfully commissioned a 150,000 tpy Ionikylation unit for the production of high octane alkylate. Start-up activities were completed on August 14, 2022, said Hydrocarbonprocessing.

The Dagang alkylation unit is the third Ionikylation unit in PetroChina’s portfolio and the seventh commercial Ionikylation project to date.

The Dagang refinery has an annual crude processing capacity of 5,000,000 tpy and it produces 1,500,000 tpy of gasoline. According to PetroChina, Ionikylation was selected for its proven ability to achieve quality and efficiency of alkylate production, enabling the company to meet National VI gasoline specification requirements while improving its environmental and operational safety profile. Alkylate RON from the newly commissioned unit is reported at 98.

The Dagang Ionikylation unit occupies a plot space of 159m x 71m and is located at the site of a previously dismantled catalytic reforming unit. The total cost for the project was reported as ?330 MM RMB.

Ionikylation is the leading ionic liquids-based alkylation technology for the production of high octane alkylate that is free from sulfur, benzene, olefins, and aromatics. The inherently safe and sustainable process allows a refiner to transition away from using hazardous and corrosive acid catalysts and additives. All Ionikylation process equipment is manufactured using carbon steel and the process eliminates the need for costly containment systems for handling hazardous chemicals.

In 2020, Ionikylation achieved an industry milestone as the first ionic liquids-based technology to be used to revamp an existing hydrofluoric acid alkylation unit at Sinopec’s Wuhan refinery. Well Resources Inc. is the global licensor of Ionikylation.

As per MRC, PetroChina Urumqi Petrochemical is planning to revamp and upgrade its refining facilities by adding some new refining as well as petrochemical units. A 450,000 tonne/year polypropylene (PP), a 300,000 tonne/year styrene monomer (SM), a 200,000 tonne/year polystyrene (PS), and a 1.2m tonne/year purified phthalate acid (PTA) unit will be installed as the petrochemical part. The refining part will mainly include a new 1.2m tonne/year solvent deasphalting (SDA), a 2.2m tonne/year fluid catalytic cracking (FCC), and a 1m tonne/year gas fractionation units.The company is seeking environment approval for proceeding the project.
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Private refiners in China on tenterhooks as Beijing kicks off fresh round of inspection

Private refiners in China on tenterhooks as Beijing kicks off fresh round of inspection
Beijing has been stepping up efforts to tighten supervision and standardize operations of its refining sector, said S&P.

It launched a series of investigations on refineries beginning April 2021.

The latest round of inspections this month will focus mainly on tax issues, as small-scale private refiners often fail to fulfill their tax obligations in an attempt to stay competitive.

We remind, Wanhua Chemical, a major petrochemical producer in China, says it will spend USD3.6 billion to build a chemical complex in Penglai, China, by 2024. The project’s centerpiece will be a propane dehydrogenation plant (PDH) with 900,000 metric tons per year of capacity. The complex will also make propylene oxide, polyether polyols, ethylene oxide, acrylic acid, polypropylene (PP), and other products.

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Boosted by Eni, Mexico newest crude finds its way to U.S. refiners

Boosted by Eni, Mexico newest crude finds its way to U.S. refiners

MOSCOW MRC) - Exports of Mexico's newest crude are ramping up under Italy's Eni as U.S. refiners find it an apt replacement for banned Russian oil and one that complements domestic grades, said Reuters.

The shipments, which started in April according to Refinitiv Eikon data, represent the first crude exports made by an oil company other than state firm Pemex in Mexico's history. Known as Mizton crude, it comes from a cluster of offshore fields where Eni began output after securing a production sharing contract as part of the country's landmark energy reform, a market-opening now largely frozen under President Andres Manuel Lopez Obrador.

Four vessels chartered by Eni Trading & Shipping have discharged at U.S. ports since April. They have carried a total of about 2.2 MM barrels of the crude, a grade lighter and sweeter than Mexico's flagship Maya crude, to refiners including Marathon Petroleum and PBF Energy , U.S. Customs and Refinitiv Eikon data showed.

A fifth Eni cargo of 525,000 barrels of Mizton on Aframax tanker Nippon Princess is scheduled to discharge this week on the U.S. East coast, according to the tracking. The cargo was purchased by PBF Energy, an industry source said. Pemex, Eni and PBF Energy did not respond to requests for comment.

Marathon Petroleum declined to comment on its crude sourcing, saying the information was proprietary. More deals for Mizton crude are expected in the coming months, including the first cargo entitled to Mexico as its share of output. It will be marketed by Pemex's commercial unit PMI, according to two people familiar with the matter.

Mizton is similar in quality to other U.S. Gulf grades used by coast refiners, and a good replacement of Russia's flagship Urals crude, said Rohit Rathod, senior oil analyst at energy data firm Vortexa. Russian oil, which accounted for about 3% of total U.S. crude imports last year, was banned in April as part of U.S. sanctions after Russia's invasion of Ukraine.

The new Mexican crude comes from the Mizton field, part of the Mizton-Amoca-Tecoalli cluster in the southern Gulf of Mexico. Eni estimates the fields hold about 2.1 B barrels of oil and gas. The Miamte floating production storage and offloading (FPSO) facility, which can handle up to 90,000 barrels per day of output, began pumping the oil in February.

We remind, Eni believes it will be able to completely replace Russian gas imports by 2025 as uncertainty over Moscow's energy supplies to Europe forces countries to seek alternative sources. After signing new gas supply agreements with Algeria, Egypt and Congo earlier this year, Eni sees additional opportunities arising in other countries including Libya, Angola, Mozambique, and Indonesia, as well as in its home country.

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