LG Chem Plans to Suspend Caustic Soda Production in South Korea

LG Chem, a leading petrochemical company in South Korea, has announced plans to halt operations at its caustic soda production line in Yeosu, South Korea, said Chemanalyst.

Scheduled for the 20th of February, this shutdown is part of a routine maintenance strategy. The affected production line has an annual capacity of 320,000 tons of caustic soda, contributing significantly to LG Chem's total annual capacity of 728,000 tons.

The forthcoming shutdown follows a similar event in December 2021 when LG Chem suspended the operation of production line No. 2 at the same location. Initially, the company had planned to conduct repairs on this line, which also has a capacity of 320,000 tons of caustic soda per year, in early December. However, the exact timeline for these repairs remains uncertain.

As one of the world's largest chemical companies, LG Chem offers a diverse range of products. Its portfolio extends from petrochemicals to advanced plastics, demonstrating its broad manufacturing capabilities.

LG Chem's decision to suspend caustic soda production comes at a time of significant changes and challenges within the global chemical industry. With supply disruptions and high freight charges pushing caustic soda prices upwards in the USA towards the end of August 2023, the impact of LG Chem's shutdown on the market will likely be closely watched by industry stakeholders.

Moreover, other global chemical giants have been making strategic adjustments to their caustic soda production capacities. For instance, Olin Corporation announced further cuts in its diaphragm-grade chlorine and sodium hydroxide or caustic soda production. The company expects to complete the shutdown of more caustic soda capacity at its Alabama plant by the third quarter of 2022.

Similarly, Dow and other manufacturers are facing hurdles in restarting their caustic soda production capacities. With a production capacity of 2.9 million tons per year for caustic soda and over 2 million tons per year for polyvinyl chloride, the adjustments in Dow's operations underscore the complexities involved in managing large-scale chemical production in a rapidly evolving market context.

In light of these developments, it is clear that managing production capacities and maintenance schedules effectively is crucial for chemical companies like LG Chem. The upcoming shutdown of LG Chem's caustic soda production line in Yeosu is part of this larger industry-wide trend, reflecting the company's ongoing commitment to maintaining its operational efficiency and product quality.

As the shutdown progresses and the maintenance work commences, LG Chem will likely continue monitoring market trends and making strategic decisions in response to changing circumstances. The outcome of these efforts will undoubtedly influence the company's future operations and potentially shape the broader dynamics within the global caustic soda market.

We remiind, in January, Hanwha Solutions implemented a 10% reduction in the utilization of caustic soda production at its facility in Yeosu, South Korea. The decision was driven by commercial considerations, although the duration of this reduced production load has not been disclosed. The facility boasts a production capacity of 873 thousand tons of caustic soda annually.
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China's Sinopec Corp announced on Tuesday that it has encountered substantial oil and gas flows in a pivotal exploration shale well located in southwest China, said Chemanalyst.

The Xingye-9 well, situated in the Liangping area of Chongqing municipality, is positioned within the gas-rich Sichuan basin. Sinopec has revealed that the well exhibited a daily production of 108.15 cubic meters of oil and 15,800 cubic meters of gas during its testing phase.

According to a press release by the state oil and gas major, the Xingye-9 well holds the potential for the discovery of approximately 100 million metric tons of reserves. This successful drilling outcome is reminiscent of Sinopec's achievements in late 2021, when the company identified an initial 458 million tonnes (equivalent to 3.34 billion barrels) of shale oil reserves at the Jiyang trough of its Shengli field in the eastern Shandong province.

In recent years, China's national oil and gas producers have intensified their efforts in exploring challenging-to-extract shale oil and gas resources. This includes drilling to depths as profound as 12 kilometers (7.46 miles) beneath the surface, aiming to enhance domestic production capabilities.

Tuesday's announcement coincided with the revelation that China's crude oil production experienced growth last year, reaching 208 million metric tons or 4.16 million barrels per day. This represents an increase of 3 million metric tons compared to the previous year, reflecting a 1.6% growth over the 2022 figures.

Sinopec's achievements in the Chongqing shale well mark a significant stride in China's quest for energy security and self-sufficiency. The success of the Xingye-9 well adds to the strategic reserves of oil and gas in the gas-rich Sichuan basin. This emphasis on exploring unconventional energy sources aligns with broader global trends, where oil and gas companies are pushing boundaries to tap into resources previously deemed difficult to extract.

As China continues to bolster its domestic energy production, advancements in shale exploration play a crucial role in meeting the nation's growing energy demands. The positive results from the Xingye-9 well position Sinopec as a key player in the nation's efforts to secure a robust and sustainable energy future. The ongoing commitment to technological innovation and exploration in challenging terrains underscores China's determination to diversify its energy mix and reduce dependency on external sources.

Sinopec's announcement of substantial oil and gas flows in the Chongqing shale well reflects a promising development in China's energy landscape. The successful exploration efforts contribute to the nation's strategic reserves and exemplify the industry's dedication to pushing the boundaries of conventional drilling to secure energy resources for the future.

We remind, Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced a contract from Sinopec Ningbo Zhenhai Refining & Chemical Co. Ltd. (Sinopec NZRCC), a subsidiary of the Sinopec Group and its flagship refining and petrochemical company. Sinopec NZRCC will license Lummus' Novolen technology for a new 500 kilo ton per annum polypropylene plant in Ningbo, China.

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Bora LyondellBasell Petrochemical, a collaborative venture between the privately owned Liaoning Bora Enterprise and the global petrochemical leader LyondellBasell (LBI), successfully recommenced the production of low-density polyethylene (HDPE), linear polyethylene (LDL), and polypropylene (PP) at its Panjin facility in China on January 5, said Chemanalyst.

This resurgence follows a scheduled shutdown for preventive maintenance that commenced on December 27 of the previous year. The production facility, boasting an annual capacity of 350 thousand tons of HDPE, 450 thousand tons of LDL, and 200 thousand tons of PP, has played a pivotal role in the regional petrochemical landscape.

Bora LyondellBasell Petrochemical underwent maintenance and resumed operations at its cracking unit in Panjin, China, on January 5. This integral facility, equipped with a yearly production capacity of 1.1 million tons of ethylene and 690 thousand tons of propylene, had temporarily ceased operations on December 27 for routine maintenance procedures. The cracker, commissioned in June 2020, has been a cornerstone in the joint venture's pursuit of excellence. Bora LyondellBasell Petrochemical, a 50:50 collaboration between LyondellBasell and Liaoning Bora Enterprise Group (Bora), officially solidified their partnership with the signing of the definitive agreement on March 6, 2020, following a memorandum of intent inked on September 5, 2019, to establish the joint venture in Panjin.

The revival of production at Bora LyondellBasell Petrochemical's Panjin facility marks a significant milestone in the collaborative venture's operational efficiency. The resumption aligns with the company's dedication to maintaining and enhancing its facilities through strategic preventive maintenance. The Panjin facility, with its substantial capacities in HDPE, LDL, and PP, plays a crucial role in meeting the regional demand for these essential petrochemical products.

The cracking unit's return to operation in early January also signifies the successful execution of planned maintenance activities, ensuring the facility's reliability and longevity. The meticulous attention to maintenance underscores Bora LyondellBasell Petrochemical's commitment to upholding the highest standards in safety, operational integrity, and environmental stewardship.

Bora LyondellBasell Petrochemical's joint venture, with the backing of Liaoning Bora Enterprise and LyondellBasell, has not only weathered routine maintenance challenges but has also navigated the complexities of establishing and sustaining a partnership of international significance. The 50:50 collaboration model has proven effective in leveraging the strengths and expertise of both partners, contributing to the success and resilience of the Panjin facility.

The Spheripol process, pioneered by LyondellBasell, represents a milestone in polypropylene production technology. Its adoption by Omsk Poliom and Nizhnekamskneftekhim exemplifies the global impact of LyondellBasell's innovations, reinforcing its position as an industry leader. The company's influence extends beyond manufacturing, encompassing catalyst supply and polyethylene production, making it a comprehensive player in the petrochemical landscape.

We remind, Bora LyondellBasell Petrochemical, a joint venture between the privately-owned refiner Liaoning Bora Enterprise Group and the global petrochemical titan LyondellBasell Industries (LBI), has announced the recommencement of operations at its Panjin cracker facility, following a scheduled maintenance period.

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BASF, a global battery materials producer and battery recycler, and Stena Recycling, one of Europe's leading recycling companies, offering comprehensive solutions in recycling and circular services, have entered into a black mass purchase agreement, said the company.

This agreement is part of a broader collaboration envisaged by BASF and Stena Recycling with the goal of setting up a battery recycling value chain for the European electric vehicle battery market.

The focus of the co-operation will be on developing improved black mass production processes to achieve high recovery rates for metals such as lithium, nickel, and cobalt to support closed loop solutions for the European electric vehicle battery market. Collection, assessment, and pre-treatment of end-of-life lithium-ion batteries, followed by black mass production are the first steps in the battery recycling process. Black mass is produced by mechanical treatment of end-of-life lithium-ion batteries and battery production scrap. In a second step, valuable metals, such as lithium, nickel, cobalt and manganese, in the black mass can be chemically recovered. Following the collection of end-of-life lithium-ion batteries and battery production scrap, and the production of black mass by Stena Recycling in Halmstad, the black mass will be further processed in BASF’s prototype metal refinery in Schwarzheide. Stena Recycling and BASF aim to transfer such a model into BASF’s planned commercial scale battery recycling metal refinery in Europe.

“The electrification of society has only just begun, and we want to boost a circular approach to battery production. Cooperation between industry actors will be essential for a successful green transition. With this agreement in place, Stena Recycling strengthens its position as one of the leading recycling partners in Europe, to both battery manufacturers and the vehicle industry,” says Marcus Martinsson, Product Area Manager Batteries at Stena Recycling Group.

The use of recycled metals in the production of new batteries reduces a battery’s carbon footprint significantly. Battery producers and electric vehicle manufacturers in Europe can choose from a range of services. Under this collaboration, Stena Recycling will be responsible for collection of end-of-life lithium-ion batteries and battery production scrap, dismantling and discharging, as well as the black mass production. BASF will recover valuable metals from black mass and can produce new cathode active materials for new lithium-ion batteries.

“By entering into a co-operation with Stena Recycling, we are strengthening BASF’s ability to offer a broadened battery collection network with a strong partner in the Scandinavian countries so that we can expand our offer for individual and closed loop solutions to battery producers and electric vehicle manufacturers in Europe,” said Dr. Daniel Schonfelder, President of BASF’s Catalysts division, who is also responsible for the company’s battery materials and battery recycling business. “This is an important step towards a circular economy for the European electric vehicle battery market.”

We remind, BASF has completed its capacity expansion for key specialty amines manufactured at its Geismar, Louisiana site. As a result, BASF will be able to produce more of its key polyetheramines and amine catalysts marketed under the Baxxodur® and LupragenTM brands.

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Thyssenkrupp Uhde has signed a master agreement with Ma’aden for the development, engineering and licensing of a calcination plant for phosphogypsum processing, said Hydrocarbonprocessing.

The purpose of the proposed plant, to be located at Ma’aden’s Ras al Khair site in Saudi Arabia, will be to recycle phosphogypsum and enable the capture of CO2 emissions. The joint research and development will be carried out together with thyssenkrupp Polysius and Metso Outotec.

Hassan Al-Ali, Executive Vice President, Ma’aden Phosphate: “We look forward to working with our partners to develop this unique solution, utilizing our new patented technology to reduce carbon emissions and recycle phosphogypsum into a useful resource. With this ambitious project, we will contribute significantly to the Saudi Green Initiative and create lasting impact in line with our Kingdom’s Vision 2030.”

“We are honored to be chosen by our esteemed customer to provide our technology and expertise,” said Lucretia Loscher, COO thyssenkrupp Uhde. “We are providing the innovative process to turn the phosphate industry into a circular economy. This project will be another important milestone for thyssenkrupp Uhde in enabling the green transformation of our customers.”

Currently, significant amounts of phosphogypsum are produced as a by-product of phosphoric acid production, which is essential for producing phosphate fertilizers. The options for using phosphogypsum directly are very limited due to impurities and the general properties of this material. The innovative phosphogypsum treatment process will have three major benefits: First, it converts phosphogypsum into quicklime (calcium oxide, CaO). By using alternative fuels such as hydrogen or sulfur, this calcination step is low in CO2 emissions. Additional know-how for this process is provided by thyssenkrupp Polysius, a full range-supplier of the cement and lime industry. Secondly, it enables the recovery of sulfuric acid, which can be recycled and reused as feedstock for phosphoric acid production. And thirdly, the quicklime binds CO2 through a carbonization process to form limestone. The limestone can then be used, for example, in the construction industry or for cement production.

We remind, Thyssenkrupp Uhde has secured a basic engineering package and front-end engineering design package for the establishment of a biopolymer plant on the Arabian Peninsula. The plant is intended to produce an industrial large-scale volume of polylactic acid polymer, utilizing lactic acid from corn as the primary feedstock. While polymer specialist Uhde Inventa-Fischer will perform the BEP for the PLA production based on its proprietary state-of-the-art technology, its sister company thyssenkrupp Uhde India will perform the FEED which covers the complete production complex including associated offsite and utilities.

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