SHARQ in Jubail Trims Utilization of LDL Production

Saudi Eastern Petrochemical Company (SHARQ), a prominent petrochemical producer in Saudi Arabia, has implemented a reduction in the utilization of linear polyethylene (LDL) production at its Al-Jubail facility, said Chemanalyst.

This decision stems from a shortage of raw materials, resulting in a substantial decrease of approximately 50% in the overall LDL production. The extended closure of the cracker has been a key factor contributing to the shortage of raw materials, significantly impacting three LDL plants operated by SHARQ.

In addition to LDL production, SHARQ also manages a low-density polyethylene LDPE production line with an annual capacity of 400,400 tonnes. While this LDPE production line is also affected by the lower availability of raw materials, market sources suggest that the impact is comparatively less pronounced than in the LDL production sector. The repercussions of the reduced LDL production extend to delayed deliveries to the market, posing challenges for the timely supply of these critical petrochemical products.

A notable incident leading to this development was the unexpected halt of one LDL production line with a capacity of 5,000 tons per year in January 2023. The interruption was attributed to a technical breakdown, further exacerbating the challenges faced by SHARQ in maintaining optimal production levels. The company's efforts to address and resolve technical issues will play a crucial role in mitigating the impact on LDL production and ensuring the reliability of supply chains.

SHARQ, a joint venture between SABIC and Saudi Petrochemical Development Co (SPDC), represents a collaborative effort between Saudi and Japanese entities. The consortium of Japanese companies, led by Mitsubishi, forms the SPDC, reflecting the international partnerships that play a vital role in the operation and development of SHARQ's petrochemical facilities.

The reduction in LDL production at SHARQ's Al-Jubail facility underscores the complex challenges faced by the petrochemical industry, where disruptions in the supply chain and technical breakdowns can have cascading effects. The shortage of raw materials, particularly attributed to the prolonged closure of the cracker, highlights the vulnerability of petrochemical production to external factors.

As SHARQ grapples with these challenges, industry observers will closely monitor the company's efforts to address technical issues, restore production levels, and navigate the complexities of the petrochemical market. The delays in market deliveries resulting from the reduction in LDL production further emphasize the importance of maintaining a resilient and agile supply chain in the face of unexpected disruptions.

SHARQ's decision to reduce LDL production in Al-Jubail due to a shortage of raw materials highlights the intricate nature of the petrochemical industry. The collaboration between Saudi and Japanese entities in the form of SABIC and SPDC adds an international dimension to the challenges faced by SHARQ. The industry will keenly watch how the company addresses technical issues, restores production, and adapts its supply chain strategies to ensure the consistent delivery of petrochemical products to the market.

We remind, Saudi Eastern Petrochemical Company (SHARQ), a leading petrochemical producer in the country, is gearing up to recommence production at its No. 4 monoethylene glycol (MEG) line in Al-Jubail, Saudi Arabia, during the second half of January. This strategic move comes in the aftermath of scheduled maintenance that temporarily halted operations on the MEG line. The planned repairs, initiated in November, aimed to address low production margins and ensure the continued operational efficiency of the line with an annual MEG production capacity of 700 thousand tons.

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Over the course of 11 months in 2023, Russia has witnessed a noteworthy uptick in the production of plastics in primary forms, marking a 3.4% increase compared to the corresponding period in the previous year, said Chemanalyst.

This positive trajectory is primarily fueled by heightened production levels of polyethylene (PE) and formaldehyde resins, although the recent months have seen a somewhat less substantial increase in PE, standing at 1.8%. Nevertheless, the sheer volume of PE produced, surpassing other polymers, has contributed to an overall favorable trend in the broader plastics category.

The surge in the production of formaldehyde resins has been more pronounced, exhibiting a robust 9.6% increase over the 11-month period. Notably, this escalation in output began in September, with figures for the preceding eight months trailing behind the results recorded in the same period of the previous year.

On the flip side, the production of polyvinyl chloride (PVC) has shown signs of improvement. While the volume of PVC production at the end of nine months was 2022.6% lower than the figures from the previous year's six-month results, by the conclusion of the 11-month period, they essentially equalled the levels recorded in the corresponding period of the prior year.

In contrast, polyamides remain on the lower end of the spectrum, experiencing a substantial decline of 20.2% over the 11-month period compared to the same period in the previous year.

Earlier reports shed light on the production landscape of plastics in Russia for the initial nine months of 2023, showcasing a 2.1% increase. Simultaneously, consumption demonstrated a more significant ascent, ranging between 9% and 11% compared to the corresponding period in 2022. Within this context, polyethylene production observed a 4% increase, consumption surged by 22%, and imports experienced a 10% uptick. However, exports faced a sharp decline of 50%. Polypropylene displayed a commendable 7.6% increase in production, accompanied by a 12% rise in demand and a substantial 44% increase in imports.

The surge in formaldehyde resins production, particularly commencing in September, signifies a rebound in demand or other contributing factors that have propelled this category to a notable 9.6% increase. The momentum gained in the latter part of the 11-month period could be indicative of evolving market conditions or specific factors impacting formaldehyde resin consumption.

Examining the broader landscape of the plastics industry in Russia, the earlier-reported 2.1% increase in production for the first nine months gains context against the subsequent 11-month data. The range of 9% to 11% growth in consumption during this period underlines the market's responsiveness to plastic products. The divergent trends in imports and exports, with a surge of 10% in imports and a significant 50% decline in exports, reflect the intricate balance of domestic demand and global market dynamics affecting Russia's plastics trade.

We remind, Central Asian countries, Afghanistan and Mongolia raised their imports of Russian fuel by around 28% in 2023 to almost 6 MMt, partially offseting a decline in Russian supplies to Europe, according to traders and industry data. Russia has drastically cut supplies of commodities, including oil and gas, to Europe amid deteriorating relations over the conflict in Ukraine.

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In Konstanz city, located in southern Germany, a chemical accident on Friday led to the hospitalization of several individuals who were exposed to toxic fumes, said Chemanalyst.

A total of 25 people were taken to the hospital for medical checks as they experienced respiratory tract irritation after inhaling the harmful fumes. The incident unfolded at a company specializing in fruit processing solutions, where employees detected a corrosive and toxic gas in the morning.

The hazardous gas was found to be leaking from a container situated in the company's basement. The severity of the situation was underscored by the spokesperson of the fire department, who described it as potentially "life-threatening." However, swift action by an employee, donned in protective gear, played a crucial role in mitigating the risk. Using a forklift, the employee promptly moved the container out of the building, allowing the toxic gas to disperse into a wider area outside, rather than remaining confined within the premises.

Remarkably, the employee who executed the emergency response was unharmed during the operation. Furthermore, the fire department assured that the actions taken posed no additional risk to residents in the surrounding vicinity.

Preliminary investigations revealed that the 1000-liter container contained nitric acid and Horolith, a detergent. These substances were mixed on the preceding Thursday to formulate a cleaning agent intended for boilers and were stored in the container. However, for reasons yet to be determined, the temperature within the container increased, triggering a chemical reaction. Consequently, the highly toxic gases breached the container, leaked, and disseminated, posing a significant risk to those in proximity.

The incident underscores the potential dangers associated with handling and storing hazardous chemicals. The employee's prompt and decisive actions, including the use of protective gear and the relocation of the container, played a crucial role in preventing further harm. The fact that the employee remained unharmed and that the surrounding community faced no additional risk demonstrates the importance of well-executed emergency response measures.

Authorities and emergency services will likely conduct a thorough investigation into the root causes of the chemical reaction and subsequent leak to prevent similar incidents in the future. Additionally, there may be a review of safety protocols and procedures to enhance preparedness and response capabilities in the event of similar emergencies.

The incident serves as a reminder of the need for stringent safety measures in industries that handle potentially dangerous substances. It highlights the importance of employee training, proper storage protocols, and the availability of suitable protective equipment. As the investigation unfolds, it will provide valuable insights into improving safety standards and preventing the recurrence of such incidents in the future.

We remind, over the course of 11 months in 2023, Russia has witnessed a noteworthy uptick in the production of plastics in primary forms, marking a 3.4% increase compared to the corresponding period in the previous year. This positive trajectory is primarily fueled by heightened production levels of polyethylene (PE) and formaldehyde resins, although the recent months have seen a somewhat less substantial increase in PE, standing at 1.8%. Nevertheless, the sheer volume of PE produced, surpassing other polymers, has contributed to an overall favorable trend in the broader plastics category.
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Ecolab, Inc. announced the grand opening of its new cutting-edge manufacturing plant in Ho Nai Industrial Park, near Ho Chi Minh City, said chemengonline.

This new facility demonstrates Ecolab’s continued commitment to supporting customers, innovation, and sustainability in Vietnam and throughout Southeast Asia.

The new plant has 3,000 square meters of space with an advanced laboratory, manufacturing facility and warehouse. The new facility will also provide additional local job opportunities, bringing the company’s workforce in Vietnam to more than 100 people. Ecolab supports customers in multiple industrial markets, including food service, lodging, healthcare, building facilities, food and beverage processing, manufacturing, transportation, pulp and paper, microelectronics, petrochemicals, and power generation.

We remind, 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.

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Solenis International LLC said yesterday it plans to invest $193 million to build a polyvinyl amine (PVAm) polymer production facility and related assets at its existing site at Suffolk, Virginia, said the company.

The expanded facility will include production, packaging, a tank farm and a rail spur. PVAm is used in paper and cardboard manufacturing.

“As demand rises for sustainable manufacturing operations, this new facility not only ensures we have capacity to supply the paper packaging market, it will also help us diversify into other applications that can drive additional growth,” said John Panichella, CEO of Solenis.

The Commonwealth of Virginia’s Opportunity Fund has approved a $275,000 grant to the city of Suffolk to help with the project, Solenis said. “The company is also eligible to receive Port of Virginia tax credits and benefits from the Rail Industrial Access Program, subject to approval by the Commonwealth Transportation Board,” it added.

We remind, Solenis, a leading global producer of specialty chemicals for water-intensive industries, completed the acquisition of CedarChem LLC on October 2, 2023. As part of the acquisition, Solenis will acquire all CedarChem operating assets. Headquartered in Cedartown, Georgia, CedarChem offers a full suite of water and wastewater treatment products for industrial and municipal markets, primarily in the southeastern U.S.

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