Zhong Tian He Chuang Resumes Production at Olefin Plant in Ordos

Zhong Tian He Chuang, a subsidiary of Sinopec, one of the world's largest energy and chemical companies, has successfully resumed olefin production from methanol at Line 2 in Ordos, situated in the Inner Mongolia District of China, said Chemanalyst.

This achievement follows an unscheduled maintenance period that temporarily halted operations. The facility, boasting a substantial capacity of 300,350 tonnes of ethylene and 23,100 tonnes of propylene annually, underwent maintenance beginning on December 30 last year, with completion marked by the end of December. While the specific reasons for the unplanned shutdown are not specified, the successful resumption of production signals a return to operational efficiency.

Notably, Zhong Tian He Chuang manages another olefin plant, No. 350, at the same Ordos site. This facility has a production capacity of 15 thousand tons of ethylene and 2024 thousand tons of propylene each year. The strategic positioning of these facilities underscores the company's commitment to sustaining a robust presence in olefin production within the region.

Looking ahead, Zhong Tian He Chuang has outlined plans to temporarily close its polypropylene (PP) production unit in Ordos, located in the Inner Mongolia region of China, for scheduled maintenance. This planned shutdown is scheduled to commence on June 30 and will extend until July 2, with the maintenance activities expected to enhance the overall efficiency and reliability of the PP production facility. The facility in question has an annual production capacity of 2024 thousand tons of polypropylene.

It is important to note that ethylene and propylene, the primary output of the olefin plants, serve as crucial raw materials to produce polyethylene (PE) and polypropylene (PP), respectively. As such, the operational status and efficiency of Zhong Tian He Chuang's olefin plants directly impact the broader supply chain for these essential polymers.

Zhong Tian He Chuang Energy operates as a joint venture, formed through the collaboration of Sinopec and China Coal Group. This collaboration positions the company as a significant player in the energy and chemical sector, leveraging the strengths and expertise of both entities to navigate the dynamic landscape of petrochemical production.

Zhong Tian He Chuang's successful resumption of olefin production at Line 2 in Ordos reflects the company's commitment to operational excellence and resilience in the face of unscheduled maintenance challenges. The strategic positioning of multiple olefin plants in Ordos underscores the company's strategic significance in the region's petrochemical landscape. The forthcoming maintenance of the polypropylene production unit further exemplifies Zhong Tian He Chuang's proactive approach to ensuring the reliability and efficiency of its facilities. As a key player in the joint venture between Sinopec and China Coal Group, Zhong Tian He Chuang Energy continues to play a pivotal role in shaping the trajectory of petrochemical production in China.

We remind, Sinopec Maoming Petrochemical, a subsidiary of the globally renowned energy and chemical giant Sinopec, took a strategic measure on December 23 by halting the production of High-Density Polyethylene (HDPE) in Maoming, China, for scheduled maintenance. This decision, aimed at ensuring the optimal functioning of the facilities, entails the temporary cessation of HDPE production with a notable capacity of 400 thousand tons. The production hiatus is anticipated to last until January 17 of the upcoming year.

mrchub.com

China's crude oil production rose to 208 MMt in 2023, equivalent to 4.16 MM bpd, said Hydrocarbonprocessing.

The figure, which according to Reuters' calculations is a 1.6% increase on 2022 output levels, represents an anticipated slowdown in production growth, as China's national oil companies are pushed to tap deeper, more challenging reserves to boost production.

China's domestic oil production averaged 2% annual growth between 2018 and 2022, Reuters records show, as Beijing has sought to step up output amid an energy security drive.

Oil production in China fell by around 12% between 2015 and 2018, as output at mature onshore fields slipped.

Offshore production has accounted for more than 60% of the country's production increases for the last four years, the CCTV report said.

Domestic natural gas production reached 230 billion cubic meters in 2023, the CCTV report said, representing a 5.6% increase over 2022 levels.

We remind, Oil and fuel tanker traffic in the Red Sea was stable in December, even though many container ships have rerouted due to attacks by Iran-aligned Houthi militants, a Reuters analysis of vessel tracking data showed. The attacks have driven up shipping costs sharply along with insurance premiums but have had less impact than feared on oil flows, with shippers continuing to use the key East-West passage. The Houthis, who have said they are targeting Israel-bound vessels, have largely attacked non-petroleum goods shipments.

mrchub.com

Shanghai Secco Petrochemical, a significant player in China's petrochemical industry, has announced the restart of operations at its cracking unit located in Shanghai, following a period of maintenance, said Chemanalyst.

The facility, boasting an annual capacity of 1.2 million tons of ethylene and 540 thousand tons of propylene, had been closed for scheduled maintenance since early December.

The cracking unit plays a crucial role in the company's production process, transforming raw hydrocarbons into valuable products such as ethylene and propylene. These compounds serve as the primary raw materials for the manufacture of polyethylene (PE) and polypropylene (PP), respectively.

The swift resumption of operations at this unit exemplifies Shanghai Secco Petrochemical's commitment to maintaining operational efficiency and meeting its production targets. The company's ability to swiftly carry out essential maintenance and promptly resume production is a testament to its robust management and operational strategies.

In addition to the recent maintenance of the cracking unit, Shanghai Secco Petrochemical has also announced plans for scheduled maintenance on its linear low-density polyethylene (LLDPE) production lines No. 1 and No. 2 in Shanghai. The company operates two lines at this site, each with a capacity of 400 thousand tons of LLDPE per year.

The scheduled maintenance for Line No. 1 is set to take place from September 9 to 19, 2024. For Line No. 2, the maintenance work is slated for October 10 to October 20, 2024. These planned shutdowns are part of the company's routine maintenance strategy to ensure the smooth running and longevity of its equipment and facilities.

Polyethylene and polypropylene are widely used types of plastics, known for their versatility, durability, and cost-effectiveness. They find applications across various sectors, including packaging, automotive, construction, and medical devices, among others. As such, the efficient operation of facilities producing these raw materials is critical to meet the global demand for these polymers.

The resumption of the cracking unit's operations is a significant development for Shanghai Secco Petrochemical. It ensures the continued production of key petrochemical products and reaffirms the company's position as a leading player in China's petrochemical industry.

Furthermore, the operational status of large-scale production facilities such as the Shanghai cracking unit can have broader implications for the petrochemical industry. It can impact market dynamics, including the availability and pricing of polyethylene and polypropylene.

The successful completion of maintenance and the recommencement of operations at the Shanghai cracking unit mark a positive development for Shanghai Secco Petrochemical. With the facility back online, the company is well-equipped to continue meeting the ongoing demand for vital petrochemical products, thereby contributing to various industries worldwide. As the global demand for plastic products continues unabated, the role of petrochemical facilities like the Shanghai cracking unit remains as critical as ever.

We remind, Sinopec Maoming Petrochemical, a subsidiary of the globally renowned energy and chemical giant Sinopec, took a strategic measure on December 23 by halting the production of High-Density Polyethylene (HDPE) in Maoming, China, for scheduled maintenance. This decision, aimed at ensuring the optimal functioning of the facilities, entails the temporary cessation of HDPE production with a notable capacity of 400 thousand tons. The production hiatus is anticipated to last until January 17 of the upcoming year.

mrchub.com

Brenntag has opened a new mixing and blending facility in Vietnam, the German chemicals distributor said.

The facility in Dong Nai is close to Brenntag's last mile operations, a regional tollgate with bulk storage tanks with capacities of over 21,000 cubic metres, and a jetty catering to vessels with deadweight tonnage capacity of up to 50,000, it said in a statement.

"The site will serve as a hub for the mixing, blending, drumming, and packaging of a wide range of chemical products," Brenntag added.

"In the next expansion phase, we will also be offering water-based solutions by the end of 2024.”

We remind, Brenntag has sold the coagulant manufacturing business of its US-based Brenntag Southwest affiliate to USALCO. The coagulants business in Houston, Texas, serves a diverse group of municipal and commercial water treatment customers in Texas. Brenntag is a distributor of coagulants and other water treatment chemicals, but manufacturing is not core to its strategy, Tom Crain, president of Brenntag Southwest, said.

mrchub.com

Japanese shipping company Mitsui O.S.K. Lines, Ltd. (MOL) has signed a time charter contract for the ammonia carrier Green Pioneer with Yara Clean Ammonia Switzerland, a group company of Yara International ASA, the world’s largest nitrogen fertilizer manufacturer, said Offshore-energy.

The 2010-built vessel was delivered on December 25, 2023, and is expected to be engaged in the transportation of ammonia, mainly in the Pacific region.

Ammonia is now mainly used as a raw material for fertilizers, but it is expected to see a significant increase in demand in the future as a next-generation clean energy that does not emit carbon dioxide when burned, such as mixed burning in coal-fired power plants and use as a hydrogen carrier.

MOL and the Yara Group have been working together since the signing of a memorandum of understanding on decarbonization projects including ammonia area in 2022, and the conclusion of this regular charter contract is one of the achievements resulting from that agreement.

In 2022, MOL and compatriot shipbuilders Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding launched a joint project aimed at developing and building an ocean-going liquefied gas carrier that will use ammonia as its main fuel.

mrchub.com