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Williams, Williams Partners Agree to Sell Canadian Businesses to Inter Pipeline

Tulsa— Williams and Williams Partners said it has entered into an agreement with Inter Pipeline for the sale of its Williams Canada natural gas liquids (NGL) midstream businesses for a cash consideration of C$1.35-billion, subject to closing adjustments. Williams Canada’s assets include two liquids extraction plants near Fort McMurray, Alberta, with the capacity to recover approximately 40,000 b/d of NGL and olefins; a fractionator near Redwater, Alberta, and the Boreal NGL and olefins pipeline system that connects these facilities. Inter Pipeline will also assume responsibility to proceed with construction of a planned propane dehydrogenation (PDH) facility, based on UOP’s Oleflex process, near the Redwater fractionator (PCN, 2 Nov 2015, p 1). The facility would convert about 22,000 b/d of low-cost, locally sourced propane into approximately 525,000 t/y of polymer grade propylene. Start-up is planned for the end of 2019. “We are proud of the tremendous businesses our Canadian team has built since we first began operating in Canada in 2002,” said Williams President and Chief Executive Alan Armstrong. The transaction is expected to close in the third quarter of 2016, subject to customary closing conditions and Canadian regulatory approval.

KAP Announces Agreement to Buy PP, HDPE Manufacturer Safripol

Cape Town—KAP Industrial has reached an agreement with shareholders of Safripol Holdings to acquire the entire issued ordinary share capital of Safripol, a polypropylene (PP) and highdensity polyethylene (HDPE) producer in South Africa. The transaction, with an enterprise value of R4.1- billion, is expected to close 1 Jan. 2017, subject to customary closing conditions and competition authority approval. “The transaction represents an ideal fit for KAP in terms of its key investment criteria, being Safripol’s market leadership, high barriers to entry, strong cash generative qualities and competent management with sufficient depth and continuity,” KAP said. Safripol will form part of a diversified chemical segment, which also includes KAP’s Hosaf and Woodchem businesses.

Indorama Again Postpones Completion Of Rotterdam PTA Expansion Project

Bangkok—Indorama Ventures, in announcing its second quarter results for 2016, said completion of its 330,000-t/y purified terephthalic acid (PTA) brownfield expansion in Rotterdam, the Netherlands, will be delayed until the first half of 2017 (PCN, 16 May 2016, p 2). This past May, Indorama said it expected the project to be completed in the second half of this year, later than the originally scheduled 2014 completion date.

 

Sumitomo Chem & Zeon Agree to Study Potential Merger of S-SBR Businesses

Tokyo—Sumitomo Chemical and Zeon Corp. have reached a basic nonbinding

agreement for a joint study on the possible consolidation

of both companies’ solution styrene butadiene rubber

(S-SBR) businesses.

The parties are considering forming a new joint venture

company in April 2017, and will transfer their current SSBR

operations, including those of their respective subsidiaries,

to the new company. Completion of due diligence

and studies is expected by the end of next month.

With the aim of strengthening the S-SBR business, the

new partnership will accelerate new product development,

enhance cost competitiveness and secure a stable product

supply, the companies noted.

Sumitomo and Zeon will discuss and agree on particulars

relating to the business consolidation and the details

of the new joint venture company. Legally-binding agreement

will be settled after both companies finalize internal

authorization procedures. At the same time, necessary

steps will be taken to obtain regulatory approvals and

clearances in both Japan and abroad.

Signing of definitive agreements is expected by the end

of December 2016. Updates on the consolidation will be

“promptly released as details are finalized,” Zeon said.

 

DAK Completes Transaction with IMG For Controlling Interest in Selenis

Charlotte—DAK Americas has completed the acquisition of a controlling

stake in Selenis Canada from IMG Group of Portugal.

Selenis operates a polyethylene terephthalate (PET)

plant in Montreal, Quebec, Canada, which has the capacity

to produce 144,000 t/y of PET resin. No other details of the

transaction were given.

“The facility offers the ability to expand operations into

Canada, to produce differentiated products and enhance

raw material synergies,” DAK noted.

The Montreal facility began PET production in 2011

(PCN, 30 May 2011, p 1). It provides both melt and solid

state processing capabilities for copolyester commodities

and specialty polyesters production.

 

IRPC Concludes Acquisition of Thai ABS; Concurrently Dissolves Merged Business

Bangkok—IRPC Pcl, which has held 99.99% of the shares in Thai

ABS Co., completed the acquisition of the entire business

of Thai ABS on 1 Aug. and dissolved the subsidiary on the

same day.

IRPC said it took these measures to reorganize the

management structure and to manage the operating cost

more effectively.

Thai ABS was established in 1991 to manufacture and

sell styrenics such as acrylonitrile butadiene styrene, polystyrene

and expandable polystyrene. Thai ABS recently

began producing styrenics for IRPC, using raw materials

supplied by IRPC.

 

LyondellBasell Decides to Construct HDPE Facility on U.S. Gulf Coast

Houston—LyondellBasell has made a final investment decision to build a

500,000-t/y high-density polyethylene (HDPE) plant on the

U.S. Gulf Coast.

The facility, for which a specific location was not given,

will be the first commercial plant to employ Lyondell-

Basell’s new Hyperzone PE technology, the company noted.

Start-up is scheduled for 2019.

“Innovation is key to our future success,” said LyondellBasell

Chief Executive Bob Patel. “This new proprietary

technology will have the capability to produce a wide

range of HDPE products with enhanced properties, many

of which have the potential to exceed industry benchmarks,”

he added.

LyondellBasell currently produces 3.5-million t/y of

HDPE, including capacity of its joint venture facilities.

Production from the new plant will be available globally.

The project is expected to create up to 1,000 construction

jobs and about 75 permanent positions.

 

Acron Inaugurates New 700,000-T/Y Veliky Novgorod Ammonia Plant

Moscow—Acron said it has launched its new 700,000-t/y Ammonia-4 unit, “one

of the largest in the CIS,” at Acron’s production site in Veliky

Novgorod, Russia.

The approximately $500-million project, financed with

the company’s own funds, began construction in June 2014.

Novgorod GIAP was general designer, while Haldor Topsoe

supplied the technology.

The Ammonia-4 facility “will also contribute to the development

of the region by creating new jobs and increasing

tax payments,” noted Viatcheslav Kantor, chairman of

Acron Group’s coordinating committee. “Projects like Ammonia-

4 serve as [a] foundation for reindustrialization of

the country.”

With the new ammonia unit in operation, the site’s total

ammonia output will reach 1.9-million t/y. Acron also

produces 600,000 t/y of ammonia at it Dorogobuzh facility

in Russia’s Smolensk region and 100,000 t/y of ammonia at

Hongri Acron in China.

 

PKN Orlen Lets Elektrobudowa Contract To Install Metathesis Unit at Plock Site

Plock—PKN Orlen has awarded a contract to Elektrobudowa for a new

metathesis unit in Plock, Poland, that will increase propylene

capacity at the site (PCN, 25 July 2016, p 1).

Under the contract, valued at approximately PLN 250-

million, Elektrobudowa will design, supply, construct and

install the metathesis unit, which will raise propylene capacity

to 550,000 t/y from 450,000 t/y. Start-up is planned

in the second half of 2018.

The new unit will be built under a license from Lummus

Technology. Under the agreement, Lummus will also

provide technical and engineering consulting services for

the estimated PLN 400-million project.

 

Wison Engineering Awarded Contracts For Connel Chemical’s New MTO Unit

Shanghai—Wison Engineering has been awarded two contracts for the

first phase of Connel Chemical Industry Co.’s 600,000-t/y

methanol-to-olefins project in China.

One of the contracts is for the engineering, procurement

and construction of the first phase, which involves a

300,000-t/y MTO plant. Wison was also awarded a licensing

and design package contract for its olefin separation

technology.

The project will utilize an integrated solution that leverages

UOP’s MTO+OCP (olefins cracking process) technology

and Wison’s high recovery olefin separation technology,

Wison noted.

Specifically, Wison will be responsible for the engineering,

design, procurement and construction of the MTO reaction

and concentration unit, the olefin separation unit,

olefin cracking unit and additional auxiliaries. Delivery of

the project is scheduled for October 2017.

“The 600,000-t/y MTO project is an important step for

Connel Chemical’s industrial upgrading, as well as a key

link in Jilin City’s fine chemical supply chain,” said Connel

Group General Manager Wang Daxiang.

 

Solvay Divesting to Caffaro Its Italian Chlorine, Peroxide Derivatives Site

Brussels—Solvay said it has agreed to sell its chlorine and peroxide derivatives

site in Bussi sul Tirino, Italy, to Italian chemical producer

Caffaro.

Caffaro plans to further develop the site, which is

mainly dedicated to chlorine and its derivatives. It will

ensure sustainability of the plant by proceeding with a series

of investments at the site, as well as creating synergies

with its current portfolio of activities. Value of the transaction

was not disclosed.

Under the agreement, Caffaro will take over Solvay’s

production of Eureco organic peroxides and further develop

the product’s technology supported by the on-site teams.

“Solvay’s peroxides global business unit will continue to

market and develop Eureco as its exclusive distributor in

all countries except Italy and thereby ensures the long

term partnerships with key customers,” Solvay noted.

 

CF Industries Gives Further Updates On Its Capacity Expansion Projects

Deerfield—CF Industries, in discussing its second quarter 2016 results,

said its new ammonia plant in Donaldsonville, La., is expected

to begin production during the third quarter of

2016, and its new Port Neal, Iowa, ammonia plant complex

is now mechanically complete, and offsite and utilities are

operational.

The 3,300-t/d ammonia plant at Donaldsonville is part

of a project that will result in the largest nitrogen facility

in the world, CF earlier said. The project also includes a

3,500-t/d urea plant, which came on stream in late 2015,

and a 4,500-t/d urea ammonium nitrate facility that was

started up earlier this year (PCN, 9 May 2016, p 2).

At Port Neal, a new 2,200-t/d ammonia plant is expected

to begin production late in the third quarter or the

beginning of the fourth quarter of 2016 (PCN, 22 Feb 2016,

p 4). A 3,500-t/d urea plant at the site is expected to begin

production “closely thereafter.”

 

Acron Group Sells Interest in Hongri Acron Chinese Fertilizer Production Subsidiary

Beijing—Acron Group has sold its 50.5% stake in Chinese fertilizer

producer Hongri Acron to an independent investment holding

company based in Hong Kong, for an undisclosed

amount.

“In line with Acron Group’s long-term development

strategy, we decided to sell our stake in Hongri Acron plant

in China and focus on further development of our Russian

production assets,” explained Alexander Popov, chairman

of Acron’s board of directors. “Nevertheless, China has

been and will remain our key partner and a priority market

to sell our products outside Russia.”

Hongri Acron produces 100,000 t/y of ammonia, 400,000

t/y of sulphuric acid and 800,000 t/y of NPK. The facility

was fully commissioned in 2000.

 

Chemours Chooses Wilmington, Delaware As Location for Its Global Headquarters

Dover—The Chemours Co. has selected Wilmington, Del., as the location

for its new global headquarters.

Recent changes to Delaware’s corporate tax structure

brought about by the Delaware Competes Act, were key

components in Chemours’ decision, the company noted.

Chemours was launched as an independent, publiclytraded

corporation, following its spin-off from DuPont last

year (PCN, 6 July 2015, p 1). It consists of the chemical

solutions, fluoroproducts and titanium technologies business

of DuPont.

 

People on the Move

Petro Rabigh—Nasser al-Mahasher has been appointed

president and chief executive of Rabigh Refining

and Petrochemical Co. (Petro Rabigh), effective 1 Sept.

Previously chief executive of S-Oil, he succeeds Abdullah

bin Saleh al-Suwailem, who is retiring.

Huntsman—Pavneet Mumick has been named global

vice president of Technology & Innovation for the company’s

Polyurethanes Division, effective 22 Aug. 2016, to

replace Keith Day, who has retired. Mumick will join

Huntsman from Momentive Performance Materials, where

he was global vice president of technology.

LSB Industries—John Diesch, previously president

and a member of the board of Rentech Nitrogen, has become

executive vice president of manufacturing. He replaces

Richard Sanders, a director of the board of LSB,

who has served as interim executive vice president of

chemical manufacturing.

Plaza Group—Jose Flores has been named vice president

of Aromatics & Olefins, responsible for all commercial

and supply chain activities for products under the division.

He had been business manager of benzene, xylene and

toluene.

Ashland Inc.—Suzanne B. Rowland has joined the

company as group vice president, industrial specialties,

responsible for the coatings, adhesives and other industrial

end markets. She was most recently at Tyco and prior to

that was at Rohm and Haas, where she served as vice

president of Global Adhesives & Sealants; vice president of

Coatings for North America, and vice president of Procurement

& Logistics.

 

Innospec Purchasing Huntsman’s European Surfactants Business

The Woodlands—Specialty chemicals company Innospec Inc. has committed

to buy Huntsman’s European surfactants business for an

enterprise value of $225-million.

As part of the transaction, Innospec will acquire

Huntsman’s manufacturing facilities in Saint-Mihiel,

France; Castiglione delle Stiviere, Italy, and Barcelona,

Spain. Huntsman will retain its related account receivables

and trade payables.

Closing is expected by the end of the fourth quarter of

this year, subject to customary conditions, including the

representative bodies consultation processes where required

by applicable law.

Following close of the transaction, Huntsman will enter

into supply and long-term tolling agreements with Innospec

in order to continue marketing some of the products.

“The decoupling of our European surfactants business

would allow us to concentrate our focus and grow businesses

within our portfolio with greater long term strategic

fit,” said Huntsman President and Chief Executive Peter

R. Huntsman. “Additional reshaping of Huntsman will

occur soon, as we are actively working towards a spin-off of

our titanium dioxide, additives and textile effects businesses,”

he added.

 

HIP-Petrohemija Inviting Tenders For Feasibility Study of PP Unit

Pancevo—HIP-Petrohemija

is accepting tenders for a feasibility study for its

planned polypropylene (PP) facility in Pancevo, Serbia

(PCN, 10 Nov 2014, p 3).

In 2014, the company announced that it signed an

agreement with the directorate for the construction and

renovation of Pancevo, to begin developing a plan to build a

local PP facility. Petrohemija said the project would require

an investment of about €120-million. A capacity for

the plant was not disclosed.

Offers must be submitted to the company in written

form no later than 12:00 pm local time on 19 Sept. 2016.

For more information about the tender, contact Veselka

Mitić, email veselka.mitic@hip-petrohemija.rs.

 

Enterprise, Occidental Begin Service At JV Natural Gas Processing Plant

Houston—Enterprise Products Partners and Occidental Petroleum

have begun operations at their new joint venture cryogenic

natural gas processing plant in the Delaware Basin (PCN,

4 May 2015, p 3).

The 150-million cu ft/d facility is owned by Delaware

Basin Gas Processing, an equally-owned joint venture company

formed by Enterprise and Occidental for the purpose

of building the plant.

The new plant is supported by long-term contracts and

is designed to accommodate the growing production of

natural gas liquid (NGL)-rich natural gas from the Delaware

Basin.

Additionally, Enterprise has completed construction of

an 82-mile, 12-inch diameter pipeline that will transport

NGLs from the gas processing facility to Enterprise’s

Chaparrel NGL pipeline, which will allow customers access

to Enterprise’s NGL fractionation and storage complex in

Mont Belvieu, Texas.

 

Iran Selects Linde to Perform FEED Work For Planned Kian Petrochemical Facility

Tehran—Iran’s Kian Petrochemical Co. has awarded a front-end

engineering design (FEED) contract to Linde Group for

construction of an olefin, butadiene, benzene and hydrodealkylation

unit in Iran, according to local news

sources.

The $39.17-million project is expected to be completed

in 12 months. Kian plans to sign a complementary contract

with Linde in the future for engineering, procurement

and construction, purchase of equipment and operation of

the units.

Kian Petrochemical was established in 2012 in Asalouyeh

for the purpose of implementing the olefins complex.

 

Westlake Plans Offering of Senior Notes To Help Fund Planned Axiall Purchase

Houston—Westlake Chemical Corp. intends to offer senior unsecured

notes to finance the previously announced proposed acquisition

of Axiall Corp. (PCN, 20 June 2016, p 1).

Westlake will use the proceeds from the proposed offering,

cash on hand and proceeds from other financial transactions,

to finance the acquisition, to repay certain indebtedness

of Axiall and pay related fees and expenses.

The combination of Westlake and Axiall, valued at

about $3.8-billion, is planned to be completed by the fourth

quarter of 2016. The transaction, which has received approval

by the board of directors of both companies, is subject

to approval by Axiall stockholders and customary closing

conditions, including the applicable waiting period under

the Hart-Scott Rodino Antitrust Improvements Act.

 

Evonik Completes Capacity Expansion Of Sodium Methylate at Mobile Site

Mobile—Evonik Corp. recently completed an expansion at its Mobile, Ala.,

facility that increased sodium methylate capacity at the

site to 72,000 t/y.

The project “represents the first phase of expansion

plans for sodium methylate,” noted Alexander Weber, general

manager and vice president North America, business

line functional solutions. Details on further expansion

plans were not given.

 

Deepak Fertilisers Announces Project To Build Dahej Nitric Acid Facility

Dahej—Deepak Fertilisers and Petrochemicals Corp. said it is investing

approximately Rs 550 crore in a new state-of-the-art nitric

acid manufacturing plant to be set up in Dahej, India.

Deepak currently has a plant in Taloja, Maharashtra,

which produces approximately 840,000 t/y of various

grades of nitric acid, including dilute, concentrated and

strong. Most of the capacity is used for captive consumption,

with only about 160,000 t/y available for merchant

sale. With the new capacity at Dahej, the company will be

capable of providing an incremental capacity of close to

148,000 t/y.

The project, scheduled to be completed by the second

half of 2018, is being built to meet the expected rise in demand

for nitric acid. Land for the project has already been

acquired, the company noted.

 

MEO Australia Gives Updated Information On Tassie Shoal Methanol, LNG Project

Melbourne—MEO Australia has received updated environmental approvals

for the liquefied natural gas (LNG) portion of its

proposed Tassie Shoal methanol and LNG project offshore

northern Australia (PCN, 11 Aug 2014, p 4).

The updated approvals extend the approval period for

the LNG plant to 2052, aligned with the methanol portion

of the project, and allows the company to increase the flexibility

to process gas of varying qualities into LNG.

The project involves two 1.75-million-t/y methanol facilities,

based on technology from Johnson Matthey Davy

Technologies, which would use 4-trillion cu/ft of raw gas

over 25 years.

With a design capacity of 3-million t/y, the LNG plant

“provides significant cost savings relative to other LNG

development options,” MEO said. The project is surrounded

by “significant discovered but undeveloped high

CO2 gas fields, currently under retention leases,” it added.

“The industry is starting to recognize the need to take

steps to collaborate to secure lowest cost and efficient resource

development in Australia,” noted Peter Strickland,

chief executive and managing director.

 

Chiyoda Consortium Gets EPC Contract For Expansion of Tangguh LNG Plant

West Papua—Chiyoda, in a consortium with Tripatra, Saipem and Suluh

Ardhi Engineering, has been awarded a contract by BP

Perau for the engineering, procurement and construction

(EPC) of the Tangguh liquefied natural gas (LNG) expansion

project in Teluk Bintuni, West Papua (PCN, 11 July

2016, p 3).

The project involves construction of a third LNG process

train at the site with 3.8-million t/y of production capacity,

including an LNG jetty and associated infrastructure.

There are currently two LNG process trains at the

site with a total production capacity of 7.6-million t/y.

Work will begin this year with completion scheduled in

fiscal year 2020. Value of the lump-sum contract was not

disclosed.

BP Berau, operator of the Tangguh facility, and its affiliates

in Indonesia hold a 37.16% stake in the project.

Other partners include MI Berau (16.30%), CNOOC Muturi

(13.90%), Nippon Oil Exploration (12.23%), KG Berau

Petroleum (8.56%), Indonesia Natural Gas Resources Muturi

(7.35%), Talisman Wiriager Overseas (3.06%) and KG

Wiriager Petroleum (1.44%).

 

Sinopec LPEC Successfully Hands Over PP Plant to China’s Fude (Changzhou)

Beijing—Sinopec Luoyang Petrochemical Engineering Co. (LPEC)

said a new 300,000-t/y polypropylene (PP) plant and

90,000-t/y olefin conversion unit have reached mechanical

completion and were successfully handed over to Fude

(Changzhou) Energy & Chemical Development Co.

LPEC was engineering, procurement and construction

contractor for the project. No other details were given.

In addition to this project, LPEC said it was also the

main contractor for a 1-million-t/y methanol-to-olefin plant

and 500,000-t/y ethyl benzene facility. “The owner is very

satisfied by the successful commissioning of these projects,”

LPEC noted.

 

Beijing Offering Cash to Chem Companies Willing to Relocate Plants Out of the City

Beijing—Beijing is offering cash rewards as an incentive for chemical

companies to voluntarily move their plants out of the

city by 2018, according to the China Daily citing Beijing’s

local work safety watchdog.

The cash reward is based on a set of criteria including

the size of the plant, safety record and production process,

tax contributions and number of employees. Those who

apply early will receive additional bonuses. Value of the

cash incentives was not disclosed.

“Smaller chemical plants with simple production process,

poor management and high risk storage will be first to

go,” said the report quoting the watchdog. “The removal of

the facilities should not disrupt the city’s supply of hazardous

chemical goods,” it added.

About 60 chemical facilities are expected to leave the

city this year, with 20 more leaving between 2017 and

2018.

 

PetroChemical News Briefs

S. Korea is seeking to impose an anti-dumping duty

on butyl glycol ether from the U.S. and France, reported

local sources. The anti-dumping duty, ranging from 20.1%

to 25%, would be imposed for a period of five years.

Brenntag AG will invest over £50-million in its UK

operations over the next five years, including investments

in the North of England and Scotland. “Irrespective of the

current ‘Brexit’ concerns, the UK represents a significant

market for our products and services and will remain an

integral part of our European and global growth strategy,”

said Chief Executive Steven Holland.

Manali Petrochemicals received board approval to invest

an additional $500,000 in its wholly-owned Amchem

Specialty Chemicals subsidiary, for pursuing its overseas

investment plans.

 

 

Mitsubishi Chemical Selling Interests In Indian, Chinese PTA Businesses

Tokyo—Mitsubishi Chemical Holdings Corp. announced it has concluded
agreements to sell its Mitsubishi Chemical Corp. (MCC)
subsidiaries’ purified terephthalic acid (PTA) operations in
India and China (PCN, 6 June 2016, p 2).
Mitsubishi will divest its 99.4% interest in MCC PTA
India (MCPI) to Chatterjee Management Co., an affiliate of
the Chatterjee Group. Chatterjee Management operates
Haldia Petrochemicals Ltd. and has petrochemical operations
near MCPI’s Haldia facility. The transfer is scheduled
for completion by the end of October 2016.
MCC’s 100% stake in Ningbo Mitsubishi Chemical Co.
is expected to be transferred to Union King Holdings Ltd.
(UKH) and its affiliate Ningbo Hongbang Petrochemicals
Co. (NHP) by the end of December 2016.
Additionally, MCC will transfer to UKH and NHP, a
33% interest and 67% interest, respectively, in polytetramethylene
ether glycol producer MCC Advanced Polymers
Ningbo Co.
Since 2012, supply has significantly exceeded demand
in China’s PTA market, said Mitsubishi. Therefore, the
company had positioned PTA operations as businesses to
be restructured.
After examining all possible drastic measures and implementing
various rationalization measures, such as reducing
production costs at each country’s production sites,
Mitsubishi decided there would be no change in the PTA
business situation in India and China, and that it would be
difficult for MCC to continue those businesses.

 

Westlake Completes Ethylene Expansion At OpCo’s Petro 1 Unit in Lake Charles

Lake Charles–Westlake Chemical, in reporting its second quarter 2016
results, said it recently completed a turnaround and ethylene
expansion of its OpCo affiliate’s Petro 1 facility in Lake
Charles, La. (PCN, 25 Apr 2016, p 1).
Ethylene capacity at the site was increased by 250-
million lbs/yr to a total of around 1.5-billion lbs/yr. The
facility is currently in the process of restarting, Westlake
noted.
The additional capacity “helps in continuing our path of
increasing our distributions at a low double-digit growth
rate for our unitholders,” said Westlake President and
Chief Executive Albert Chao.

 

LG Chem Boosting Elastomer Production To Satisfy Rising Global Market Demand

Seoul—LG Chem Ltd. plans to invest 400-billion won to more than
triple elastomer production capacity in order to meet increased
global demand.
The company will build a new 200,000-t/y elastomer
plant in Daesan, S. Korea. The new output will increase
LG’s total elastomer production capacity to 290,000 t/y by
2018.

 

Sabic & ExxonMobil Consider Development Of New U.S. Gulf Coast Petrochemical JV

Houston—Sabic and ExxonMobil are evaluating the possible development
of a joint venture petrochemical complex on the
U.S. Gulf Coast.
The project would include a world-scale steam cracker
and derivative units to be built in Texas or Louisiana, near
natural gas feedstock. Capacities and other details were
not given.
The companies noted that before a final investment decision
is made, they will perform necessary studies and
work with state and local officials to help identify a potential
site with adequate access to infrastructure.
“We are focused on geographic diversification to supply
new markets,” said Sabic Vice Chairman and Chief Executive
Yousef Abdullah Al-Benyan. “The proposed venture
would capture competitive feedstock and reinforce Sabic’s
strong position in the value chain,” he added.
“We have the capability to design a project with a
unique set of attributes that would make it competitive
globally,” noted Neil Chapman, president of ExxonMobil
Chemical. “That is vitally important as most of the chemical
demand growth in the next several decades is anticipated
to come from developing economies.”

 

Alpek in Negotiations With Petrobras Over Petroquímica Suape & Citepe

Monterrey—Alpek is in exclusive 60-day negotiations with Petrobras for the
potential acquisition of Petrobras’ stakes in Petroquímica
de Pernambuco (Petroquímica Suape) and Compañhia Integrada
Tȇxtil de Pernambuco (Citepe).
Petroquímica Suape and Citepe operate an integrated
purified terephthalic acid/polyethylene terephthalate facility
in Ipojuca, Pernambuco, Brazil, with an installed capacity
of 700,000 t/y and 450,000 t/y, respectively. Citepe also
operates a 90,000-t/y texturized polyester filament plant at
the site.
The 60-day exclusive negotiation period may be extended
for an additional 30-days. If the parties reach an
agreement, the closing of the transaction will require approvals
by both companies and approval by appropriate
governmental authorities.

 

CVR Raises E. Dubuque NH3 Output With Installation of New Converter

Chicago—CVR Partners installed a new ammonia converter during a
turnaround, which has increased ammonia production at it
East Dubuque, Ill., facility.
The new converter has allowed the plant to produce
ammonia at rates above 1,000 t/d—an increase of more
than 75 t/d from prior levels.
CVR acquired the East Dubuque facility from Rentech
Nitrogen earlier this year (PCN, 11 Apr 2016, p 4). The
facility also includes the production of urea and urea ammonium
nitrate.

 

Dhunseri Gets Calcutta High Court Nod For Planned Scheme of Arrangement

Mumbai—Dhunseri Petrochem Ltd. (DPL) announced it has received
approval from the High Court of Calcutta for the scheme of
arrangement between DPL and Dhunseri Petglobal Ltd.
(DPGL) and their respective shareholders.
The scheme will be effective upon filing of the certified
copy of the Order of the High Court, DPG said, adding that
it has applied for a certified copy of the court order.
Earlier this year, Indorama Ventures (IVL) and DPL
agreed to form an equally-owned joint venture for the production
and sale of polyethylene terephthalate (PET) in
India (PCN, 7 Mar 2016, p 1).
As part of the agreement, IVL will divest a 50% stake in
its Indian PET manufacturing company, Micro Polypet, to
DPL. Micro Polypet has 216,000 t/y of PET capacity in
Panipat. DPL will divest to IVL its 50% stake in the newly
carved-out entity DPGL. The new entity is to own DPL’s
480,000-t/y PET production plant in Haldia, India.
The joint venture is expected to be completed in the
second half of this year.

 

Jindal Poly Films Recently Started Up New BOPP Production Line at Nashik

Mumbai—Jindal Poly Films in mid-July commissioned its seventh

biaxially oriented polypropylene (BOPP) line at Nishak,

Maharastra in India (PCN, 13 June 2016, p 4).

The facility’s BOPP capacity was increased by 41,000

t/y to a total capacity of 251,000 t/y. Jindal’s total worldwide

production capacity for BOPP is now 466,000 t/y.

Nashik is the “world’s single largest site for production

of BOPP and BOPET [biaxially oriented polyethylene

terephthalate],” Jindal noted adding that its current combined

global capacity of BOPP and BOPET is 593,000 t/y.

Jindal noted that the expansion project required an investment

of approximately Rs 240 crore, which was paid

with a combination of Indian rupee loans and foreign currency

loans.

The company expects to complete new BOPP lines at its

site in Brindisi, Italy, and LaGrange, Ga., by mid-2017.

The new lines will each add 60,000 t/y of BOPP capacity at

the sites.

 

Celanese Decides to End MMA Production At Its Cangrejera Manufacturing Plant

Cangrejera—Celanese Corp., following a strategic business review, has

decided to discontinue production, storage and distribution

of monomethylamine (MMA) at its acetyl intermediates

manufacturing facility in Cangrejera, Mexico.

The company concluded that production and distribution

of MMA are no longer a viable business option. The

production cessation includes both anhydrous and 50%

solution grades of MMA.

The site will continue to produce dimethylamine (DMA)

and trimethylamine (TMA) “with a focus on growing and

expanding the company’s amines business, along with

other key acetyl products manufactured at the site,” Celanese

noted.

Equipment at the facility has been completely converted

to produce increased volumes of DMA and TMA exclusively,

the company added.

 

Chevron Phillips Chemical Completes PE Pilot Unit at Bartlesville Facility

Bartlesville—Chevron Phillips Chemical Co. (CPChem) has completed a

new state-of-the-art polyethylene (PE) pilot plant at its

research and technology center in Bartlesville, Okla. (PCN,

22-29 Dec 2014, p 4).

The plant will utilize CPChem’s MarTech loop slurry

process and its newer MarTech advanced dual loop technology,

enabling production of bimodal PE resins for advanced

applications.

The site will provide leading-edge PE research, including

new catalyst and polymer development, to take place

on a pilot scale prior to implementation in full-scale operations,

including the company’s $6-billion investment along

the U.S. Gulf Coast (PCN, 29 Feb 2016, p 2).

CPChem’s Gulf Coast petrochemicals project involves

an ethane cracker to produce 1.5-million t/y of ethylene at

its Cedar Bayou plant in Baytown, Texas, and two 500,000-

t/y PE plants at its Sweeny complex in Old Ocean, Texas.

Start-up is expected next year.

 

RusTechnip Awarded Service Contract For Gazprom Neft’s Omsk Refinery

Omsk—RusTechnip, a joint venture of Technip and Rustechexport, has

been awarded a service contract for Gazprom Neft’s existing

refinery in Omsk, Russia.

The scope of work covers engineering, procurement and

construction management services for the construction of a

new crude distillation unit—vacuum distillation unit complex.

Value of the contract was not disclosed, however,

Technip said it was in the range of €50-million to €100-

million.

Front-end engineering design of the project was also

performed by RusTechnip.

 

Braskem’s CTI Invests in New EVA Lab

São Paulo—Braskem’s Center for Technology and Innovation (CTI)

recently invested R$500,000 in a new lab in Triunfo, Brazil,

for the purpose of processing ethylene vinyl acetate

(EVA).

The new facility will be used to develop new applications

for EVA and support customers in developing their

own formulations.

 

People on the Move

Jacobs Engineering—Steven J. Demetriou, president

and chief executive, has been appointed to the additional

position of chairman of the board, effective immediately.

Linda Fayne Levinson, a director since 1996, has been

elected to serve as lead director.

Petkim—Anar Mammadov, head of Socar Greece, has

also been named director general of Petkim. He replaces

Sadeddin Korkut.

Verdezyne—David Kelsey has been appointed chief financial

officer to replace Brian Conn, who left the company

earlier this year. Kelsey was most recently chief financial

officer of Elevance Renewable Sciences. He has held leadership

roles in a number of industries, from finance to renewable

chemicals.

 

Kraton Performance Polymers Preparing To Start Up New HSBC Unit in Taiwan

Mailiao—Kraton Performance Polymer, in its quarterly results ending

30 June 2016, said it was preparing for the start-up of

its new 30,000-t/y state-of-the-art hydrogenated styrenic

block copolymer (HSBC) plant in Mailiao, Taiwan.

In 2013, Kraton and Formosa Petrochemical Corp. revived

plans to form an equally-owned joint venture to

build, own and operate the HSBC facility at Formosa’s existing

site (PCN, 13 May 2013, p 2).

At the time, the companies said that Kraton would have

exclusive rights to purchase all production from the plant,

which was expected to cost $200-million and be based on

Kraton’s technology. It would also be obligated to purchase

a minimum volume each year, with the minimum obligation

increasing over the first three years the plant is operational.

“We are very pleased to announce that we now expect

the capital cost to be approximately $185-million, well below

our initial estimate of more than $200-million,” noted

Kraton President and Chief Executive Kevin M. Fogarty,

in discussing the results.

 

BIPC’s Chlor-Alkali Unit Halts Production; New Membrane Process Being Installed

Tehran—Iran’s Bandar Imam Petrochemical Co. (BIPC) has stopped production

at its chlor-alkali unit, according to local sources.

The unit will be modified to use membrane technology

and eliminate the use of mercury. Know-how for the project

will be supplied by ThyssenKrupp.

Electrolyzers to replace mercury cells in the unit will be

delivered soon, the reports said. Capacity of the unit and

an expected completion date for the project were not given.

 

Hindustan Petroleum Updates Schedule For Visakh Refinery Expansion Project

New Delhi—Hindustan Petroleum Corp. Ltd. (HPCL) expects to complete

an expansion of its Visakh refinery in Visakhapatnam,

Andhra Pradesh, within 48 months, according to local

sources citing the company.

The refinery, which currently has about 8.5-million t/y

of capacity, is being expanded to 15-million t/y of capacity

(PCN, 8 Feb 2016, p 4). No other details were given.

Earlier this year, PCN reported that HPCL completed a

feasibility study for a 1-million-t/y olefins and aromatics

complex to be built in the Petroleum, Chemicals and Petrochemicals

region being established in Vishakhapatnam.

The company is now considering setting up the project in

Machilipatnam.

 

Mitsui Chem Increasing Milastomer Capacity With Additional Production Line at Chiba

Tokyo—Mitsui Chemicals is building a new production line for Milastomer

brand thermoplastic olefinic elastomers at its

wholly-owned Sun Alloys subsidiary in Chiba, Japan.

The new 5,000 t/y Milastomer line is being added to respond

to upswings in demand for the product. Construction

will start in February 2017 and is scheduled for completion

in June 2017. Commercial operations are expected

to begin in October of next year.

 

Mexichem Secures VCM Feedstock After Force Majeure at PMV JV

Veracruz—Mexichem disclosed in its quarterly report that it has secured alternate

vinyl chloride monomer (VCM) supplies, enabling it to

cover its raw material needs for the rest of the year after

its Petroquímica Mexicana de Vinilo (PMV) joint venture

with Pemex declared force majeure on VCM this past April

(PCN, 2 May 2016, p 1).

On 20 Apr., PMV’s Pajaritos petrochemical complex in

Veracruz, Mexico, experienced an explosion, resulting in a

declaration of force majeure on VCM, ethylene, dichloroethane,

muriatic acid and anhydrous hydrogen chloride

shipped from the complex.

At the same time, Mexichem Resinas Vinilicas and

Mexichem Resinas Colombia placed polyvinyl chloride on

an allocation plan for the month of May and subsequent

months, Mexichem said.

A full report on the cause of the accident is expected “in

the coming weeks,” the company noted in its results.

 

CB&I Wins Contract from PERTAMINA For Balikpapan Refinery Upgrade

Jakarta—CB&I has been awarded the license and engineering design of a

grassroots alkylation unit by Pertamina, as part of the upgrade

of Pertamina’s refinery in Balikpapan, East Kalimantan,

Indonesia (PCN, 15 Dec 2014, p 3).

Pertamina’s Refinery Unit V will use CB&I’s CDAlky

advanced sulfuric acid alkylation technology and Haldor

Topsoe’s wet gas sulfuric acid technology.

In 2014, Pertamina signed memorandums of understanding

(MoUs) with Saudi Aramco, Sinopec and JX Nippon

Oil & Energy to partner in a $25-billion upgrade of

Indonesian refineries.

Under the MoUs, Saudi Aramco agreed to join Pertamina

in the upgrade of the Dumai refinery in Riau; the

Cilacap refinery in Central Java and the Balongan refinery

in West Java. Sinopec agreed to help with the upgrade of

the Plaju refinery in South Sumatra and JX agreed to work

with Pertamina to upgrade the Balikpapan refinery.

Pertamina earlier said it expected the upgrades to be

completed in three to four years and more than double its

refinery capacity to 1.68-million b/d from 820,000 b/d.

 

Bahri & Arab Petroleum Investments Launch $1.5-Billion Shipping Fund

Riyadh—The National Shipping Co. of Saudi Arabia (Bahri) and Arab Petroleum

Investments Corp. (Apicorp) have initiated a $1.5-

billion shipping fund.

The companies aim to acquire approximately 15 very

large crude carriers (VLCCs) over three phases with total

investments of up to $1.5-billion, composed of debt and equity.

Apicorp will invest 85% in the fund with Bahri investing

the remainder. The fund will be a closed-end fund with

a 10-year life period, and will deliver returns derived from

the commercial employment of the VLCCs.

Bahri will act as the exclusive commercial and technical

manager, while Apicorp will be the main investor and fund

manager.

The acquisition will make Bahri the “biggest VLCCs

operator in the international VLCC market segment,”

Bahri noted.

 

New Study Shows Environmental Benefits Of Using Plastics Versus Alternatives

Washington—The environmental cost of using plastics in consumer goods

and packaging is nearly four times less than if plastics

were replaced with alternative materials, according to a

new study by Trucost, which the American Chemistry

Council (ACC) commissioned.

The study, “Plastics and Sustainability: A Valuation of

Environmental Benefits, Costs, and Opportunities for Continuous

Improvement,” is based on natural capital accounting

methods, which measure and value environmental impacts—

such as consumption of water and emissions to air,

land and water—which are not typically factored into traditional

accounting.

Trucost’s latest study builds on earlier research by comparing

the environmental costs of using plastics to alternative

materials and identifying opportunities to help lower

the environmental costs of using plastics in consumer

goods and packaging.

“These significant results disrupt a common misperception

around plastics,” said the ACC. “Trucost found that

replacing plastics in consumer goods and packaging with a

mix of alternative materials that provide the same function,

would increase environmental costs from $139-billion

to $533-billion annually. That’s because strong, lightweight

plastics help us do more with less material, which

provides environmental benefits throughout the lifecycle of

plastic products and packaging.”

The study also concluded that the environmental cost of

alternative materials can be lower per ton of production

but are greater in aggregate due to the much larger quantities

of material needed to fulfill the same purposes as

plastics.

In addition, the authors of the latest report recommend

steps to help further reduce plastics’ overall environmental

costs, including increasing the use of lower-carbon electricity

in plastics production, adopting lower-emission transport

modes, developing even more efficient plastic packaging,

and increasing recycling and energy conversion of

post-use plastics to help curb ocean litter and conserve resources.

“Now is an exciting time for plastics and for sustainability,”

noted Steve Russell, vice president of plastics for the

ACC. “Emerging economies around the world are creating

opportunities for more people to have access to heath and

hygiene products, good nutrition and the things that help

us get more out of life. Making smart choices about what

we produce and how we produce it will benefit people and

the planet,” he added.

 

Vietnam Cancels Proposed Project For New Refinery & PC Complex

Hanoi—Vietnam has decided to cancel a $20-billion refinery and petrochemical

complex planned by Thailand’s PTT, according to local

news reports.

The project involved construction of a 400,000-b/d refinery

and production of 5-million t/y of olefins and aromatics

in Binh Dinh province (PCN, 11 July 2016, p 2).

This past June, PTT postponed the project, attributing

its decision to political changes in Vietnam and uncertainty

in the global oil markets and said it would review the investment

at the end of the year.

Saudi Aramco recently exited the proposed joint venture

project with PTT.

 

Sibur Completes Expansion at Tobolsk To Raise Gas Fractionation Capacity

Tobolsk—Sibur has finished an expansion of the natural gas liquids (NGL)

processing facility at its Tobolsk complex in Western Siberia’s

Tyumen Region, increasing gas fractionation capacity

at the site (PCN, 20 July 2015, p 3).

The RUB 5.5-billion project increased overall gas fractionation

capacity at Tobolsk to 8-million t/y from 6.6-

million t/y.

Nipigas was general designer of the project, which involved

installing additional equipment for internals, heat

exchange and pump equipment, construction of a cooling

tower and expanded feedstock range.

 

Oryx GTL Awards SNC-Lavalin Contract For Engineering Consultancy, Support

Doha—Oryx GTL has awarded a five-year engineering consultancy and

support services contract to SNC-Lavalin for Oryx GTL’s

gas-to-liquids (GTL) complex in Ras Laffan, Qatar.

The contract is with SNC-Lavalin’s local entity, Qatar

Kentz WLL, and is aligned to support Oryx’s long-term

sustaining capital plan, SNC-Lavalin noted. The agreement

includes general engineering, feasibility studies,

modeling, drawings and documentation.

“We are delighted to establish this . . . agreement with

Oryx GTL, at a time when the industry is looking for continued

development of assets,” said Christian Brown,

president of Oil & Gas at SNC-Lavalin.

Oryx GTL is a joint venture of Qatar Petroleum (51%)

and Sasol (49%).

 

Tank Storage Asia Conference/Exhibition Scheduled for 27-28 Sept. in Singapore

Singapore—Tank Storage Asia 2016 conference and exhibition is being

held in Singapore on 27-28 Sept. 2016 at the Marina Bay

Sands hotel.

The conference and exhibition is the only dedicated

show in the region for the South East Asian bulk liquid

storage industry to network, learn and do business.

For more information on Tank Storage Asia, contact

Amy Jordan at StockExpo by phone 44 (0) 20 8843 8837,

email amy@stocexpo.com or visit the conference website at

www.tankstorageasia.com.

PKN Orlen Receives Board Approval To Raise Plock Propylene Capacity

Plock—PKN Orlen has received management and supervisory board approval

to build a new metathesis unit that will increase

propylene capacity by 100,000 t/y at its site in Plock, Poland

(PCN, 1 Sept 2014, p 1).

The project, estimated to cost approximately PLN 400-

million, is now entering the execution stage. It will raise

propylene capacity at Plock to 550,000 t/y from 450,000 t/y.

A schedule was not given.

The new unit will be built under a license from Lummus

Technology. Under the agreement, Lummus will also

provide technical and engineering consulting services.

“We want to maximize capacity utilization in Poland

and the Czech Republic, and push for greater integration

between petrochemical and refining areas, which will give

us flexibility required to respond to market changes in demand

for fuels and petrochemicals,” said Wojciech Jasiński,

president of PKN’s management board.

“We will focus on products with a broad range of applications

in the plastics industry, because the industry’s purchasing

power is growing and its medium-term prospects

point to a steadily upward trend,” he added.

 

Unipar’s Offer for Solvay Indupa Stake Rejected by Argentine Regulator CNV

Buenos Aires—Unipar Carbocloro’s offer to purchase a 70.59% interest in

Solvay Indupa was rejected by Argentina’s securities regulator

CNV, the Comision Nacional de Valores (PCN, 11

July 2016, p 1).

This past May, Solvay signed a definitive agreement to

sells its stake in Solvay Indupa to Unipar for $202-million,

subject to customary closing conditions and approvals.

CNV said it rejected the offer based on interpretation of

the Argentine Capital Markets Law No. 26,831. Unipar

has 30 days to adjust the terms of the offer.

In 2013, Solvay signed a definitive agreement to sell its

70.59% interest in Solvay Indupa to Braskem and Braskem

was to buy the remainder of Solvay Indupa on the Buenos

Aires stock exchange (PCN, 13 Jan 2014, p 1).

CNV rejected Braskem’s takeover bid of $1.35 per

share for the remaining approximately 30% shares of Solvay

Indupa.

 

Odebrecht Uses Its Stake in Braskem As Guarantee for Outstanding Loans

São Paulo—Odebrecht Serviços e Participações has used its entire

stake in Braskem as collateral to certain financial institutions

for loans granted to Odebrecht, Braskem announced.

Odebrecht has a 38% interest in Braskem, but holds

50.1% of the voting shares. In March, Reuters reported

that Odebrecht was considering exiting Braskem.

Details of the agreement between Odebrecht and the financial

institutions were not disclosed.

 

YPFB Project Achieves Steam Generation; Urea Production Expected to Start ‘Soon’

La Paz—Bolivia’s Yacimientos Petroliferos Fiscales Bolivianos

(YPFB) project has successfully achieved the milestone of

steam generation and is looking forward to the final goal of

urea production, said Samsung Engineering.

When asked when production was expected, Samsung

told PCN that it “anticipates the start of urea production

soon.”

In 2013, YPFB began construction on the $843-million

urea plant in Bulo Bulo, Cochabamba province, Bolivia.

The plant is expected to produce 2,100 t/d of urea, using

1.4-million cu m/d of natural gas. At the time, YPFB said

completion was scheduled in 2015.

Toyo Engineering was awarded a contract for the project

in 2012, covering the supply of urea synthesis and

granulation technologies, development of basic design and

supply of proprietary equipment.

Samsung was awarded the contract for front-end engineering

design, engineering, procurement and construction

and pre-commissioning of the project, which includes an

ammonia unit.

 

Enterprise Adds Propylene Exports To Houston Ship Channel Offerings

Houston—Enterprise Products Partners has added propylene exports to its

service offerings at the Enterprise Hydrocarbons Terminal

(EHT) along the Houston Ship Channel in Texas.

The company has the capability to load 5,000 t/d of refrigerated

polymer-grade propylene (PGP) at the EHT dock

facilities, which are supplied directly by propylene fractionators

and storage wells from Enterprise’s Mont Belvieu,

Texas, complex. Enterprise said it has loaded its first

two vessels with PGP for export.

“With the addition of our 1.65-billion pound PDH [propane

dehydrogenation] plant, which is scheduled to begin

service in the second quarter of 2017, Enterprise will have

the capability to produce 7.5-billion pounds of propylene

per year,” noted A.J. Teague, chief executive of Enterprise’s

general partner.

The PDH unit had originally been scheduled for completion

in September 2016 (PCN, 14 Mar 2016, p 1).

 

U.S. ESBR Producers File Petition To Impose Anti-Dumping Duties

Washington—U.S. emulsion styrene butadiene rubber (ESBR) producers have

filed an anti-dumping petition with the U.S. Dept. of

Commerce and the U.S. International Trade Commission

against ESBR from Brazil, Korea, Mexico and Poland.

The petitioners said they seek the imposition of antidumping

duties to offset the margin of unfair pricing by

foreign producers in the U.S. market. The estimated

dumping margins for imports from these countries range

from 30% to 80%.

U.S. companies supporting the petition include Lion

Elastomers and East West Copolymer.

 

EBRD Arranges $155-Mn in Financing For Fertilizer Producer Rustavi Azot

Rustavi—The European Bank for Reconstruction and Development

(EBRD) said it has arranged a financing package, valued

at $155-million, to support Rustavi Azot, Georgia’s “largest”

fertilizer producer.

The funds will be used to upgrade and modernize the

company’s 220,000-t/y ammonia production line. The line

will be made more energy efficient, aiming to decrease energy

consumption by 30%. The funds will also be used for

debt restructuring.

“This is an important investment for Georgia’s chemical

sector and will significantly increase export capacities,”

noted Bruno Balvanera, EBRD’s director for Caucasus,

Moldova and Belarus.

EBRD will provide a $125-million syndicated loan, to be

split among three lenders, with $50-million from EBRD’s

own account, $25-million from the Dutch development

bank FMO and $50-million from East West United, a Luxembourg-

based bank. A $30-million parallel loan will be

extended by the Bank of Georgia.

Rustavi also has 500,000 t/y of ammonia nitrate production

capacity.

 

Dow, DuPont Get Stockholder Approval For Merger and Subsequent Spin-Off

Midland—Dow and DuPont have received approval from stockholders of

both companies for the proposed merger of equals, valued

at around $130-billion, and the subsequent separation of

the combined company (PCN, 20 June 2016, p 4).

The combined company, to be named DowDuPont, is

planned to be separated into three independent, publicly

traded companies—Material Science, Specialty Products

and Agricultural, subject to DowDuPont board approval

and receipt of required regulatory approvals. The separation

is not expected to take longer than 18 months to 24

months after the merger closing.

“We are now focused on important next steps toward

completing the merger transaction, including working with

regulators in the appropriate jurisdictions,” said DuPont

Chairman and Chief Executive Ed Breen. “We are confident

that this merger will create long-term, sustainable

value for stockholders and superior solutions and choices

for customers.” The transaction is expected to close in the

second half of 2016.

 

Westlake’s Calvert City Plant Restarting Following Unexpected June Shutdown

Houston—Westlake Chemical is in the process of restarting its Calvert

City, Ky., complex following an unexpected shutdown

on 1 June 2016.

A mechanical failure of its ethylene unit resulted in a

complete outage of the complex, causing Westlake, its subsidiaries

and affiliates to declare force majeure on all production,

including ethylene dichloride, vinyl chloride

monomer, chlor-alkali and polyvinyl chloride.

The company said it is working with its customers and

suppliers to mitigate the impact of the outage and meet

their needs as production resumes.

Impact of the outage is estimated at approximately $40-

million, and will affect both the second and third quarter

financial results.

 

Metabolix Plans Strategic Restructuring; Pursuing Sale of Biopolymers Business

Woburn—Metabolix said it is implementing a strategic restructuring,

which will involve eliminating about 45 positions in its

biopolymer operations and corporate organization, and

pursuing the sale of its biopolymers business assets.

Once the restructuring is complete, the company’s

Yield10 Bioscience platform will become its core business.

Consistent with its new strategy, Metabolix plans to rebrand

itself as Yield10 Bioscience in the coming months.

The company is actively looking to secure additional

capital resources over the next several weeks to support its

new strategy. In addition, it is holding its biopolymer assets

for sale and may sell or license all or portions of the

inventory, equipment and intellectual property.

“There can be no assurance that these efforts will be

successful,” Metabolix said. “If the company is not able to

secure such additional capital resources or otherwise fund

its operations, it will be forced to wind down its remaining

operations, including the Yield10 program, and pursue options

for liquidating the company’s remaining assets, including

intellectual property and equipment.”

 

Ineos & MSM Poly Sign Non-Binding MoU Related to Barex IP, Production Support

Rolle—Ineos Barex AG, Ineos Barex USA and MSM Poly LLC

have signed a non-binding memorandum of understanding

(MoU) for the possible sale of intellectual property (IP) and

production support related to the Barex brand acrylonitrile

methyl acrylate copolymer latex (AMAC) product line.

The agreement would allow MSM to purchase all existing

IP from Ineos, as well as specific physical assets, commercial/

operational support and a supply of Barex resin.

Both parties plan to complete the transaction in the third

quarter of this year.

Ineos announced plans in 2014 to discontinue production

of its AMAC formulation marketed under the name

Barex (PCN, 15 Feb 2016, p 4). MSM Poly said it formed

for that purpose and is “moving rapidly to commercial production.”

Earlier this year, MSM began production of pilot plant

quantities of its Anobex AMAC. At the time it said it expected

to scale up to full commercial production between

July and October of this year.

Ineos Barex has continued to operate its Lima, Ohio,

Barex facility in an effort to meet guaranteed production

volume by contracted customers. The production period is

expected to conclude in the third quarter of 2016, followed

by dismantling of the physical assets. Other Ineos businesses

at the Lima site are unaffected by the closure.

 

People on the Move

PPG—Michael H. McGarry, president and chief executive,

will become chairman and chief executive, effective 1

Aug. He will succeed Charles E. Bunch, who will retire on

the same day after 37 years with the company.

Occidental Petroleum—Oscar K. Brown will join the

company as senior vice president, worldwide business development,

effective 9 Aug. 2016. He was most recently

with Bank of America Merrill Lynch as managing director

and co-head of Americas energy investment banking.

 

India’s Union Cabinet Approves Revival Of Three Defunct Fertilizer Facilities

New Delhi—India’s Union Cabinet has approved a plan to revive three

closed fertilizer units in India, which were shut down between

1990 and 2002 (PCN, 22 Nov 2004, p 3).

The facilities to be revived include two urea units of

Fertilizer Corp. India Ltd. (FCIL), located in Sindri and

Gorakhpur, and Hindustan Fertilizers Corp. Ltd.’s (HFCL)

urea plant in Barauni.

Plans involve restoring the units by means of a special

purpose vehicle (SPV) of public sector units. The SPV will

include Indian Oil Corp., FCIL/HFCL, Coal India Ltd. and

National Thermal Power Corp.

In 2002, the government determined there was no future

use for the units unless they could be converted from

naphtha-based feedstock to natural gas feedstock. At the

same time, it questioned the availability of natural gas and

the capital to convert the plants.

Earlier in 2015, the government approved the revival of

these three units through a ‘bidding route,’ which failed

due to lack of applications.

Start-up of the fertilizer units is expected to create

1,200 direct and 4,500 indirect employment opportunities,

as well as meet the demand for urea.

Approval has already been given for gas pooling for the

urea sector, which will enable these units to get gas at

pooled price on its revival, making the units globally competitive,

the Union Cabinet noted.

 

Stolt-Nielsen Announces Plan to Purchase Chem Tanker Operations of Jo Tankers

London—Stolt-Nielsen Ltd. has agreed to acquire Jo Tankers’

chemical tanker operations, which includes 13 chemical

tankers and a 50% interest in a joint venture with eight

chemical tanker newbuildings.

The transaction, valued at about $575-million, includes

the proportional share of the newbuildings in the joint venture.

The acquisition is subject to competition authority

approval, with a decision expected before the end of September

2016.

The 13 chemical vessels consist of eight stainless steel

ships, ranging from 19,000 dwt to 38,000 dwt, and five

tankers with a combination of stainless steel and coated

tanks, all about 37,000 dwt. Six of the ships have been on

time chart to Stolt Tankers for the last five years.

The newbuildings consist of eight all stainless steel ecofriendly

ships of 33,000 dwt, on order from New Times

Shipbuilding in China. The first ship was delivered in

early July 2016, with the remaining scheduled to be delivered

in the second half of this year and in 2017.

“The transaction covers the tonnage replacement needs

of our current chemical tanker fleet for the next several

years,” said Stolt-Nielsen Chief Executive Niels G. Stolt-

Nielsen. “While giving us some operational savings, it

adds new trade routes to our service offering,” he noted.

 

Total & Iran Pursue Petchem Project

Tehran—Total is pursuing studies and economic evaluation with Iran on a

petrochemical complex to be built in the Parsian Special

Economic Energy Zone, reported the Mehr News Agency.

Total and Iran’s National Petrochemical Co. signed a

memorandum of understanding for the project last year,

which is expected to produce various grade of polyethylene.

 

Jacobs Engineering Completes Sale Of French Subsidiary to Nox Sarl

Pasadena—Jacobs Engineering entered a share purchase agreement to transfer

its Jacobs France operations to Nox Sarl, also located in

France. The sale, for which a value was not disclosed, was

settled in cash at closing.

“We carefully reviewed our strategy for our Jacobs

France subsidiary, and a sale to Nox evolved as the preferred

solution for all parties,” said Jacobs President and

Chief Executive Steve Demetriou. “The business in France

fits well with Nox and supports the company’s ambitions

for continued growth amongst its core market segments.”

Jacobs France has offices in Paris, Lyon, Le Havre and

Aix en Provence, and approximately 250 employees.

“For Jacobs, this represents our continued efforts to

streamline our overall operational efficiency in regions that

fit within our target markets and geographies,” Demetrious

added.

 

SCT&E LNG Signs Agreement with Technip For Monkey Island LNG Export Terminal

Cameron—Technip has been awarded a master services agreement

(MSA) by SCT&E LNG for a proposed 12-million t/y liquefied

natural gas (LNG) export terminal on Monkey Island,

in Louisiana’s Cameron Parish.

SCT&E is planning three 4-million-t/y natural gas liquefaction

trains, including necessary utilities, storage, and

marine facilities. Cost of the project and a schedule were

not disclosed.

The MSA will be used to perform engineering services

necessary to develop the project, including the front-end

engineering design and supporting the Federal Energy

Regulatory Commission process.

 

ExxonMobil Expanding Newport Plant To Increase TPV Elastomers Capacity

Newport—ExxonMobil said it plans to expand its elastomers facility

in Newport, Wales, UK, to increase capacity for Santoprene

high-performance thermoplastic vulcanizate (TPV).

The project will increase ExxonMobil’s total global TPV

capacity by 25% and is expected to be completed in late

2017.

“Santoprene elastomers perform like vulcanized rubber

and process like plastic fro applications in diverse markets,”

the company explained. The elastomers “provide

manufacturing flexibility, ease of processing and consistent

product durability.”

ExxonMobil also produces Santoprene TPV at its facility

in Pensacola, Fla.

 

Sumitomo Boosting PES Capacity

Tokyo—Sumitomo Chemical has decided to construct a new 3,000-t/y polyethersulfone

(PES) production facility at its Chiba Works in

Ichihara City, Japan.

Once fully operational, Sumitomo’s total PES production

capacity will grow “two-fold,” the company said.

Commercial production is scheduled to begin in 2018.

The company also has a PES unit at its Ehime site in

Niihama, Japan.

 

Port of Antwerp Enters Agreement To Collaborate with Iranian Port

Antwerp—The Antwerp Port Authority has signed a five-year collaboration

agreement with Shahid Rajaee Port Authority, which controls

the port of Bandar Abbas in Iran.

“Today we are restoring our trading relations with Iran,

a country with great economic growth potential that is also

a gateway to neighboring countries,” said Eddy Bruyninckx,

who signed the agreement on behalf of the Antwerp

Port Authority. “Antwerp is perfectly situated to support

the further growth of the trade with this country.”

Bandar Abbas is responsible for 90% of the imported

and exported containers of Iran and for almost half of the

200-million tons of freight handled by Iran’s 11 ports.

Before sanctions were applied, Antwerp was the most

important European destination port for Iranian cargo, the

Antwerp Port Authority noted. In March of this year, after

sanctions were lifted, Iranian shipping company IRISL

resumed shipments to Antwerp. Not only container traffic,

but break-bulk and bulk freight are expected to expand

rapidly in the next few months, it added.

Under the memorandum of understanding (MoU), the

port authorities of Antwerp and Bandar Abbas will collaborate

closely once more and develop trade between the two

regions. The parties will exchange information on statistics

and port development projects, as well as collaborate in

the field of training, among other things.

Antwerp Port Authority held a port seminar immediately

after the signing of the MoU, stressing advantages of

the port of Antwerp. In addition to the usual freight categories

of containers, the seminar focused on Antwerp’s petrochemical

cluster. The liquid bulk sector for its part accounted

for 67-million tons out of the more than 208-

million tons of freight handled in Antwerp last year.

 

APLA’s Latin American Logistic Meeting Being Held 9-10 Aug. in Panama City

Panama City—The Latin American Petrochemical and Chemical Assn.

(APLA) is holding its 18th Latin American Logistic Meeting

from 9-10 Aug. 2016 at the Sheraton Panama Hotel &

Convention Center in Panama City, Panama.

The event will focus on logistics in the petrochemical

and chemical industry and will feature the latest in process

improvements, new technologies and trends.

For more information and to register, contact APLA by

phone 54 (11) 4325 1422, email logistica@apla.com.ar or

visit online at www.apla.com.ar.

 

Amec Foster Wheeler Confirms Award For Cilicap Refinery Upgrade Project

Jakarta—Amec Foster Wheeler confirmed the award of an engineering and

project management services contract by Pertamina and

Saudi Aramco for an upgrade and expansion of the

348,000-b/d Cilicap refinery in Central Java, Indonesia

(PCN, 30 May 2016, p 2).

The project, estimated to cost between $4-billion and

$5-billion, will increase capacity of the refinery to 370,000

b/d and expand aromatics and polypropylene production to

more than 600,000 t/y and 160,000 t/y.

Amec Foster Wheeler, over the next nine months, will

perform the basic engineering design study, develop the

scope of the proposed project and finalize the process configuration

and licensors’ packages.

The front-end engineering design phase is planned to be

completed in 2018, with the engineering, procurement and

construction stage beginning in 2019. Completion of the

project is expected by the end of 2022.

 

U.S. DOE Grants $15-Mn for Three Projects Advancing Algae-Based Biofuel/Products

Washington-The U.S. Dept. of Energy (DOE) has awarded $15-million

for three projects aimed at reducing production costs of

algae-based biofuels and bioproducts through improvements

in algal biomass yields.

The projects, located in California and Florida, will develop

highly productive algal cultivation systems and combine

those systems with effective, energy-efficient, and lowcost

harvest and processing technologies.

Funding from the DOE will be used to “advance the research

and development of advanced biofuel technologies to

speed the commercialization of renewable, domestically

produced, and affordable fossil-fuel replacements,” the

DOE explained.

The grants are being awarded to Global Algae Innovations

in San Diego, Calif., Algenol Biotech in Ft. Myers,

Fla., and MicroBio Engineering, located in San Luis

Obispo, Calif.

 

PetroChemical News Briefs

DuPont Performance Materials announced the start

of operations at its “largest” engineering plastics compounding

facility in Shenzhen, China. The site produces

Zytel polyamide, Crastin polybutylene, Delrin acetal polyoxymethylene,

Bynel adhesive resins and Fusabond resins.

S-Oil will create 3,000 new jobs with its new residue

upgrading and olefin downstream complex in Onsan, S.

Korea, according to local sources. The project, on which

construction recently began, is expected to be completed in

the first half of 2018 (PCN, 6 June 2016, p 1).

Invista Announces Multi-Phase Restructuring Of Global Nylon 6,6 Production Capabilities

Wichita–Invista is planning a multi-phase restructuring of its

global nylon 6,6 polymer manufacturing capabilities, including

the discontinuation of nylon 6,6 production at its

Chattanooga, Tenn., facility.

“Unfortunately, the infrastructure at Chattanooga is

less competitive than other Invista North American regional

polymer assets,” said Kevin Robles, senior vice

president of Invista operations. “Therefore, to better position

the company for long-term success, we are consolidating

our North American polymer assets to most efficiently

meet our customers’ preference for regional supply.”

The impact of the restructuring on other Invista businesses

and assets at the facility has not yet been finalized.

Also, because this is a multi-phase restructuring process, it

is premature to know how many employees will be impacted

and when, the company noted.

Site leadership anticipates the ongoing need for a consistent

workforce into 2017 to assist with the transfer of

production assets in addition to completing necessary steps

to safely secure the nylon 6,6 polymer assets not needed in

the future, said Invista.

Invista has polymer facilities in Camden, S.C., and

Kingston, Ontario, Canada, where productivity improvements

and targeted investments have enabled the planned

restructuring. Capacities of the plants were not disclosed.

 

Iran’s Kavian Petrochemical Starts Up Second Phase of Ethylene Production

Tehran—Iran’s Kavian Petrochemical Co. (KPC) has launched the second

phase of ethylene production to supply petrochemical

plants along the West Ethylene Pipeline, reported Shana.

KPC has the capacity to produce 2-million t/y of ethylene

using ethane from phases 15 and 16 of the South Pars

gas field in Asaluyeh.

 

Tatarstan in Discussions with Saipem For Construction of Ammonia-2 Plant

Kazan—Tatarstan is in talks with Saipem SpA for construction of the

Ammonia-2 project in Tatarstan, reported the Russian

news agency Tass.

Saipem acted as licensor of the carbamide synthesis

technologies within the framework of the first ammonia

plant, which began operations in the third quarter of 2015.

Ammonia-1 has the capacity to produce 483,700-t/y of

ammonia, 233,800 t/y of methanol and 717,500 t/y of carbamide,

the news agency said. It began operating at full

capacity on 12 Feb. 2016.

Details of the Ammonia-2 project were not given, however,

according to a release on the Government of the Republic

of Tatarstan’s website, Tatarstan earlier this year

signed a memorandum of intent with Mitsubishi Heavy

Industries and Sojitz for construction of the project. Both

companies were involved in the first project.

 

LyondellBasell Lets WorleyParsons Contract For Proposed PO/TBA Facility in Texas

Houston—LyondellBasell has awarded an Integrated Project Management

Team (IPMT) contract to WorleyParsons for its

proposed propylene oxide and tertiary butyl alcohol

(PO/TBA) project in Channelview and Pasadena, Texas

(PCN, 15 Feb 2016, p 1).

The project, earlier described as the “world’s largest

PO/TBA plant,” involves a PO/TBA facility in Pasadena,

expected to produce 1-billion lbs/yr of PO and 2-billion

lbs/yr of TBA, as well as an ethers unit at LyondellBasell’s

Bayport Chaote site near Pasadena, Texas. Operations are

expected to begin in 2019.

WorleyParsons will work closely with LyondellBasell as

an integrated project team, to assist LyondellBasell in

managing the recently commenced front-end engineering

design (FEED), and project execution and site construction.

Fluor was awarded a contract for FEED services earlier

this year.

 

Metanor’s Copenor Subsidiary Indefinitely Halts Methanol Production at Camacari

Camacari—Metanor announced that effective 18 July, its Copenor subsidiary

will stop methanol production at its Camacari, Brazil,

site, indefinitely.

The decision was based on the significant reduction in

methanol production margins as the result of a fall in

methanol prices in the international market, without a

corresponding reduction in the price of local natural gas.

Copenor will continue producing formaldehyde and

hexamine at the site using imported methanol, which ensures

predictability and profitability, Metanor said.

Management will continue to evaluate the best use of

its methanol assets.

 

Enterprise Products Partners Starting Up Morgan’s Point Ethane Export Terminal

Houston—Enterprise Products Partners has begun start-up and commissioning

activities for its new Morgan’s Point ethane

export terminal in Texas, according to industry sources

citing a report from the Texas Commission on Environmental

Quality.

The 200,000-b/d facility, located along the Houston Ship

Channel, will be capable of loading fully refrigerated ethane

at rates up to 10,000 barrels per hour. The terminal

will receive supply from its natural gas liquids fractionation

and storage complex in Mont Belvieu, Texas, through

a 24-inch diameter pipeline (PCN, 16 Nov 2015, p 2).

Last November, Enterprise announced the terminal

was approximately 90% contracted in terms of operating

capacity and was on schedule to begin operations in the

third quarter of 2016.

The start-up process began 12 July and is expected to

last until 15 July. Enterprise did not respond to PCN’s

request for a comment.

 

Anellotech Names Toyota Tsusho Partner In Renewable Aromatics Supply Chain

Silsbee—Anellotech announced it has made public Toyota Tsusho as

a corporate partner and strategic equity investor in the

renewable aromatic chemicals supply chain (PCN, 21-28

Mar 2016, p 3).

Toyota’s investment has been used to fund development

of Anellotech’s Bio-TCat technology, including the installation

and commissioning of the TCat-8 development and

testing facility being installed at South Hampton Resources’

site in Silsbee, Texas, which is planned to be completed

shortly. Commissioning and start-up of the facility

is expected later this year.

The purpose of TCat-8 is to confirm the viability and

suitability of the Bio-TCat process for scale-up, and generate

the data needed to design commercial plants using the

technology, Anellotech explained. Following verification of

the continuous operation of TCat-8, Anellotech’s alliance

partner Suntory plans to move ahead with studies on the

development of the first commercial-scale Bio-TCat plant.

The TCat-8 unit was jointly designed by Anellotech and

its research and development partner IFPEN, and will use

a novel catalyst under joint development by Anellotech and

Johnson Matthey.

Earlier this year, Anellotech received an additional $3-

million equity investment for the project from an unnamed

and confidential investor and corporate partner. Anellotech

received $7-million from the same partner in late 2015.

 

Jurong Aromatics PC Complex Restarted; Commercial Production Expected Soon

Singapore—Jurong Aromatics Corp. (JAC) has restarted its refining

and petrochemical complex on Jurong Island, Singapore,

after being shutdown since December 2014 on a technical

issue, Reuters reported.

“The plant processed condensate on Wednesday [13

July] and operated smoothly,” said Reuters citing a source

with direct knowledge of the matter. “It may reach commercial

production in a few weeks’ time,” the source added.

Earlier reports said JAC’s $2.4-billion aromatics complex,

which was started up in 2014, was expected to produce

800,000 t/y of paraxylene, 450,000 t/y of benzene,

200,000 t/y of orthoxylene and 2.5-million t/y of fuels (PCN,

28 Apr 2014, p 1).

 

Indonesia’s Pupuk Sriwijaya Gives Update On Status of New Ammonia & Urea Unit

Jakarta—Pupuk Sriwijaya (Pusri) expects its new ammonia and

urea project to come on stream next month, following a

four-month delay, reported Antara News Agency.

The project, which was delayed due to a problem with

gas feedstock, is almost 100% complete and ready for trial

operation. It will have a production capacity of 660,000 t/y

of ammonia and 907,500 t/y of urea.

“With the new unit, the production capacity of Pusri

will total 2.65-million tons of urea and 1.85-million tons of

ammonia a year,” said the report citing Pusri President

Director Mulyono Prawiro.

Pertamina EP, ConocoPhillips, Medco Energy and

Pertagas Niaga have agreed to supply 85-million standard

cubic feet per day of gas to the new facility.

 

IFC Grants $73.5-Million Loan to Support Development of Port Harcourt Terminal

Nigeria—International Finance Corp. (IFC), a member of the World

Bank Group, is providing a $73.5-million loan to support

development of an export terminal at Port Harcourt, in

Nigeria, Reuters reported.

The project, Indorama Port, is a joint venture of Indorama

Eleme Petrochemicals and Oil and Industrial Services

Ltd. It will have the capacity to handle up to 2-

million t/y of dry bulk urea exports.

Indorama Port will handle fertilizers from Indorama

Eleme’s ammonia and urea plant under construction in

Port Harcourt (PCN, 19 May 2014, p 3).

The fertilizer facility, costing approximately $4.4-

billion, includes a 2,300-t/d ammonia plant, a 4,000-t/d

urea plant, a urea granulation unit, associated infrastructure

and utilities. IFC earlier said the terminal and fertilizer

facility were expected to be completed and begin operations

by April 2016. A new schedule was not available.

Rand Merchant Bank is also providing a $31.5-million

loan for the terminal.

 

LPEC Awarded Contract for Feasibility Study Of Chinese Integrated Refining, PC Project

Beijing—Sinopec’s Luoyang Petrochemical Engineering Corp.

(LPEC) was awarded a contract from Huatong Jinggang

(Tangshan Caofeidian) Chemical Co. to study the feasibility

of a 15-million-t/y integrated refining and petrochemical

project to be built in China.

The project will be located in Caofeidian, Tangshen,

Hebei Province, China. No other details were given.

 

Asahi Kasei Boosting Global S-SBR Production Capacity by 30,000 T/Y

Tokyo—Asahi Kasei plans to increase its annual production capacity of solution-

styrene butadiene rubber (S-SBR) by 30,000 t/y in

Singapore by the second half of 2018, the Nikkei Asian Review

reported.

Following the capacity expansion, Asahi Kasei will have

a global S-SBR production capacity of 260,000 t/y.

The company has also committed to investing $47.4-

million to remodel its Singapore production facilities, the

report said.

 

People on the Move

Celanese—Dr. Verghese Thomas has been appointed

chief technology and innovation officer. He is currently

global technology and innovation director of the Celanese

engineered materials and EVA polymers businesses.

Borealis—Maria Ciliberti has joined the company as

vice president of marketing and new business development,

polyolefins. She comes from Celanese Europe BV,

where she served as vice president of sales for Europe,

Middle East and Africa.

Thyssenkrupp—Johan P. Cnossen has been appointed

to the board of the Industrial Solutions business area as

chief operating officer, effective 1 Aug. 2016. He is currently

head of the transformation office for implementation

of the company’s “planets” program,

 

Participants in LNG Canada Joint Venture Decide to Delay Final Investment Decision

Kitimat—Participants in LNG Canada have decided to delay a final

investment decision (FID) on a liquefied natural gas (LNG)

project in Kitimat, B.C. (PCN, 26 May 2014, p 4).

The LNG Canada project is to be built in phases, with

the first phase initially comprising two processing trains,

each with about 6-million t/y of LNG production capacity,

with an option for two additional trains. A decision had

been expected to be made by the end of this year.

“In the context of global industry challenges, including

capital constraints, the LNG Canada joint venture participants

have determined they need more time prior to taking

a final investment decision. At this time, we cannot confirm

when this decision will be made,” said LNG Canada.

“In the coming weeks, LNG Canada will continue key

site preparation activities and work with its joint venture

participants, partners, stakeholders and First Nations to

define a revised path forward to FID,” the company added.

Foster Wheeler, in a joint venture with Chiyoda,

Saipem and WorleyParsons, was earlier awarded a contract

for the front-end engineering design and project execution

services for the project.

The LNG Canada participants are Shell (50%), Petro-

China (20%), Mitsubishi Corp. (15%) and Kogas (15%).

 

Siluria Technologies Raises Over $45-Mn In Latest Series E Financing Round

San Francisco—Siluria Technologies has successfully closed its latest Series

E Preferred financing round, in which it raised over

$45-million through a combination of new investments and

its existing investors.

The Series E round was led by National Petrochemical

Industrial Co., a Saudi Arabian producer of propylene and

polypropylene and a subsidiary of Alujain Corp. Other

major investors include Air Liquide Global E&C Solutions

and Maire Tecnimont.

“The advantages of Siluria’s proprietary technologies

are clearer than ever in a petrochemical and energy industry

challenged by market and financial volatility,” said

Erik Scher, interim chief executive, president and cofounder

of Siluria. “Entirely new options in feedstock flexibility,

combined with disruptive scalability, offer our customers

previously unavailable strategic solutions to their

problems,” he added.

“Our latest partnerships expand Siluria’s technology

reach into additional downstream markets and build on

the company’s proven competencies to translate first-of-akind

process technologies into steel in the ground,” Scher

noted.

 

Sipchem Awards Contract to Jacobs For General Engineering Services

Jubail—Saudi International Petrochemical Co. (Sipchem) has awarded a

three-year contract to Jacobs Engineering Group to provide

general engineering services.

Under the terms of the contract, Jacobs will provide a

wide range of engineering services, on an as-needed basis,

for a portfolio of minor capital expenditure projects at Sipchem’s

facilities in Jubail Industrial City, Saudi Arabia.

Value of the contract was not disclosed.

 

GPCA Schedules Annual Forum in Dubai Based on the Theme ‘Competitiveness’

Dubai—The Gulf Petrochemicals and Chemicals Assn. (GPCA) has selected

Competitiveness: Riding New Waves as the theme for

the 11th Annual GPCA Forum to be held 27-29 Nov. 2016

at the Madinat Jumeirah in Dubai, UAE.

Dr. Sultan Al Jaber, UAE Minister of State and chief

executive of Abu Dhabi National Oil Co. and Amin H. Nasser,

president and chief executive of Saudi Aramco, will

present the keynote address.

Among the other speakers are James R. Fitterling,

president and chief operating officer of Dow Chemical;

Yousef Al-Benyan, vice chairman and chief executive of

Sabic and chairman of GPCA; Lanxess Chief Executive

Matthias Zachert; Dr. Rudolf Staudigl, president and chief

executive of Wacker Chemie; Graham van’t Hoff, executive

vice president of Shell Chemicals and Tom Crotty, director

of Ineos, among others.

For registration and more information on the forum,

visit www.gpcaforum.net.

 

Superior Plus Begins Legal Action To Recover $25-Mn from Canexus

Calgary—Superior Plus has begun legal action to recover a $25-million termination

fee from Canexus Corp. (PCN, 4 July 2016, p 4).

On 30 June 2016, Superior announced that its board of

directors had decided to terminate an arrangement agreement

to acquire all issued and outstanding shares of Canexus

for about C$1.70 per share.

Superior claimed that Canexus made certain long-term

incentive compensation awards after signing the arrangement

agreement without Superior’s consent, thereby

breaching the agreement. Canexus failed to remedy those

breaches, Superior noted.

Canexus has failed to pay the termination fee, despite

Superior’s demands for payment, making this legal action

necessary, Superior said. Superior has also filed a statement

of defense to Canexus’ claim for a reverse termination

fee of $25-million from Superior.

 

Emery Opens New Application Lab For Its Green Polymer Additives

Cincinnati—Emery Olechemicals said it has opened a new state-of-the-art application

lab for its Green Polymer Additives business inside

its recently completed Technical Development Center

(TDC) in Cincinnati, Ohio.

The application lab will offer renewable and innovative

polymer additive solutions to high growth markets such as

automotive, building and construction, electronics, packaging

and toys and sports equipment. The products will be

marketed under the name Loxiol and Edenol.

“Our lab . . . is specifically designed to leverage our indepth

application knowledge of polymer processes and

technical capabilities to deliver customizable market-ready

solutions to the North American market,” noted Dr. Harald

Klein, global business director of the Green Polymer Additives

business.

“By providing our customers with the latest innovations,

we aim to be an instrumental partner in the development

of polymer additives that are sustainable, environmentally

friendly and exceed the requirements in today’s

polymer industry,” he added.

 

Europe’s Complex Regulatory Framework Poses ‘Burden’ on EU Chemical Industry

Brussels—The cost of implementing major regulations for the European

chemical industry doubled between 2004 and 2014,

posing a significant burden on EU chemical companies,

amounting to €10-billion per year over the studied period,

according to a study commissioned by Cefic, the EU chemical

industry council.

The newly released Cumulative Cost Assessment (CCA)

shows that the total cost as a result of EU legislation borne

by chemical companies from six sub-sectors between 2004

and 2014, amounts to 12% of the value added of the EU

chemical industry, with variations between sub-sectors

ranging from nearly 3% for plastics to 23% for crop protection

products. Compared to gross operating surplus, the

additional costs reaches 30%.

“This report, which is part of the Better Regulation

process of the Commission, shows facts, not opinions,” said

Cefic General Director Marco Mensink. “The picture is

very clear. Europe needs to focus on its competitiveness, of

which the regulatory burden is a big factor.”

According to the study, the three main drivers of regulatory

costs, among the legislative packages, are regulations

on chemicals, generating 29% of the cost, industrial

emissions, with 33% and worker safety, with 24%, as well

as energy legislation. The chemical industry will face an

increasing cost to comply with stricter emission limit values,

with more ambitious carbon dioxide reduction targets

and energy efficiency objectives.

The costs identified in the study are not the total cost of

regulation, the report stressed, they only include the portion

that is particularly European legislation. All other

horizontal legislation that impacts the chemical industry is

not included. Also, the regulatory costs in energy prices

are not accounted for in quantitative terms, and pending

future regulation is not yet considered.

Although the report indicates that costs almost doubled

during the studied period, no concrete conclusions about its

impact on global competitiveness can be drawn. In a second

phase, the study will compare these costs to other regions,

“shining a light” on the impact of regulation on competitiveness

on a broader scale, Cefic said.

“Cefic will continue to explore with the EU institutions

how the regulatory framework can be made more costeffective

and fit for purpose while upholding the same high

level of safety, health and environmental protection,” the

chemical industry council concluded.

For further information on the study, contact Dervla

Gleeson, Cefic’s media relation manager, at dgl@cefic.be.

 

AIChE Names BASF Chairman, CEO Smith Among Excellence in Innovation Honorees

New York–The American Institute of Chemical Engineers (AIChE)

will honor BASF Chairman and Chief Executive Wayne T.

Smith; Inge G. Thulin, chairman of the board, president

and chief executive of 3M, and Biogen Chief Executive

George A. Scangos, at its 2016 gala, which will spotlight

excellence in innovation.

“AIChE is thrilled to be recognizing and celebrating

these three innovative companies and their exemplary

leaders,” said AIChE Executive Director June Wispelwey.

“Innovation is a hallmark of chemical engineering. Chemical

engineers have brought, and are bringing, their knowledge,

imagination and versatility to efforts to improve the

quality of life and address the critical challenges society

faces,” Wispelwey added.

The gala, being held 28 Nov. in New York City, will also

feature the presentation of the Hoover Medal to Robert S.

Langer, the David H. Koch Institute professor at the Massachusetts

Institute of Technology. The medal is sponsored

by U.S. engineering societies for outstanding civic

and humanitarian achievements in engineering.

 

Kuwait Styrene Gets $280-Mn Loan

Kuwait City—The National Bank of Kuwait, in a filing to the Kuwaiti stock

exchange, said it has loaned Kuwait Styrene Co. $280-

million for general business purposes, Reuters reported.

Kuwait Styrene was formed in 2004 as a joint venture of

Kuwait Aromatics Co. and Dow Chemical Co.

 

PetroChemical News Briefs

Iran’s Bu Ali Sina petrochemical complex, which was

hit by a fire on 6 July, is expected to restart operations

within three weeks, reported local new sources. The cause

of the fire is under investigation (PCN, 11 July 2016, p 1).

Toray Plastics (America) has begun construction on a

facility designed to house a new, high-speed, 4.5-meter

metallizer. Construction is expected to be completed by

December, with production of the new metallizer beginning

in 2017.

Enterprise Products Partners has paid the second

and final installment of $1-billion to acquire 100% of the

membership interests in EFS Midstream (PCN, 8 June

2015, p 4). Enterprise made an initial $1.5-billion payment

on 8 July 2015, when it closed on the purchase of EFS.

Ineos Plans Major Investment at Hull To Increase Ethyl Acetate Capacity

London—Ineos Oxide is planning a multi-million pound investment to increase

ethyl acetate capacity by 100,000 t/y at its Saltend,

Hull site, in the UK.

A pipeline connecting Ineos’ Grangemouth petrochemicals

plant with the Hull site will allow the plant to use

ethylene feedstock produced from imported U.S. shale gas.

The additional capacity is expected to be available by the

end of 2017.

The Hull facility was designed to be expanded, so the

project should be completed quickly with very good cost

economics, Ineos said, adding that the expansion will support

its customers needs over the long term.

The company noted that this is the first major UK investment

decision made following the Brexit vote and reflects

its confidence in the UK economy and its ability to

continue to deliver for its customers.

“We believe in British manufacturing and will support

it wherever we can,” said Ineos Founder and Chairman

Jim Ratcliffe. “Our Hull plant is at capacity and this extra

investment will enable us to significantly increase production

that we will sell all over Europe and across the world.”

In 2008, Ineos acquired from BP a 250,000-t/y ethyl

acetate unit at Saltend (PCN, 7 Apr 2008, p 1).

 

Solvay Completes Divestment of Inovyn, Ending Its Chlorovinyls JV with Ineos

Brussels—Solvay has completed the sale of its 50% stake in Inovyn to

Ineos for €335-million, ending its chlorovinyls joint venture

with Ineos and making Ineos sole owner (PCN, 13 June

2016, p 1).

Inovyn was created in 2015 to combine the European

polyvinyl chloride, caustic soda and chlorine derivatives

businesses of Solvay and Ineos. At the time, it was

planned that after three years Solvay would withdraw its

interest in Inovyn and sell it to Ineos.

Solvay is planning to transform into a specialty chemicals

group. This past May, it signed a definitive agreement

to sell its 70.59% stake in Solvay Indupa to Unipar Carbocloro

for $202.2-million. The transaction is subject to customary

closing conditions and approvals.

 

MEGlobal Selects Dow’s Meteor Technology For New Freeport MEG Production Unit

Freeport—MEGlobal has selected Dow Chemical’s Meteor ethylene

oxide/ethylene glycol process technology and Meteor EORetro

catalyst for a new monoethylene glycol (MEG) facility

being built in Freeport, Texas (PCN, 4 Apr 2016, p 3).

The project, which will be located adjacent to Dow’s

Oyster Creek site, involves construction of a 700,000-t/y

MEG unit and is MEGlobal’s first manufacturing unit in

the U.S.

Dow will supply ethylene to the MEG plant, which is

expected to come online in mid-2019.

 

Casale’s Ammonia Technology Selected For Three Chinese Ammonia Plants

Beijing—Casale announced contract awards for three new ammonia facilities

that will be built in China using Casale’s ammonia

technology.

Under the first contract, Casale will be responsible for

process design, license of its synthesis technology and supply

of proprietary equipment for a new 1,800-t/d coal-based

ammonia plant being built by Henan Jindadi Chemical Co.

in Henan province.

Casale was also selected by Yihua Fertilizer Co. (YFC)

to provide its ammonia synthesis technology for two new

coal-based ammonia units.

The first ammonia facility, being built by YFC’s Hubei

Yihua Fertilizer Co. subsidiary, will have a capacity of

1,820 t/d and will be located near the city of Yichang, in

Hubei province.

Yichang Xingxing Bluesky Technology Co. will also utilize

Casale’s ammonia synthesis technology for a new 1,250-

t/d ammonia facility, which will be located near Yinchang

City. Casale will provide know-how, process design, ammonia

converter internals and site assistance for the

plants. Value of the contracts were not disclosed.

 

Oiltanking Buys Antwerp Gas Terminal NV; Will Focus on Further Expanding Terminal

Antwerp–Oiltanking GmbH has acquired a 100% interest in Antwerp

Gas Terminal NV, “one of Europe’s largest” independent

liquefied petroleum gas (LPG) and petrochemical

gas terminals, Oiltanking said, without disclosing the

value of the transaction.

The terminal, with an existing capacity of 138,400 cu m,

is located in the Port of Antwerp, which connects the site

with the most important chemical and petrochemical clusters,

while also providing direct access to the North Sea,

the company noted.

Antwerp Gas Terminal offers storage, throughput and

distribution services for both pressurized and refrigerated

LPG and petrochemical gases. It provides deep water access,

as well as pipeline, waterway, rail and road connectivity.

As part of the acquisition, Oiltanking will focus on

further expanding the terminal.

 

Iran Experiences Blaze in Mahshahr At Bu Ali Sina PC Refinery Complex

Tehran—A fire broke out at Iran’s Bu Ali Sina petrochemical refinery complex

on 6 July in the port city of Mahshahr, Iran, according

to Tasnim News Agency.

A crisis task force was established to deal with the fire,

which was brought under control on 7 July. The task force

was ordered to drain all the reservoirs of the refinery after

one, which was full of naphtha, caught fire.

The cause of the fire is under investigation. There are

no known casualties.

 

New Vesta Methanation Technology Successfully Passes Pilot Testing

Shanghai—Vesta Once-through Methanation New Technology with Wide

H2/CO Flexibility, jointly developed by Clariant, Wison

Engineering and Amec Foster Wheeler, has successfully

passed pilot plant testing (PCN, 17 June 2013, p 1).

The pilot plant, built in June 2014, completed all pilot

tests by the end of April 2016, signifying that the technology

is ready for commercial application, Clariant noted.

Vesta technology produces synthetic natural gas (SNG)

from synthesis gas obtained from gasification of coal or

petroleum coke. It is a once-through operation with no

need for expensive compressors, providing an economical

solution for the SNG process.

Clariant supplied the proprietary catalyst, Wison was

responsible for the engineering, design and construction,

and Amec Foster Wheeler licensed the technology.

“Substitute natural gas is an effective synthesis pathway

for clean fuel energy which can help alleviate the

shortage of China’s natural gas output,” noted Andy Hemingway,

Amec Foster Wheeler’s Vice President of Technology.

 

Solvay Installs Its First MyH202 Unit At Suzano Papel e Celulose in Brazil

Brussels—Solvay and its affiliate Peroxidos do Brasil have agreed to build a

small dedicated hydrogen peroxide (H202) production unit

using Solvay’s myH202 technology, at Suzano Papel e Celulose’s

site in Imperatriz, Maranhão, Brazil

“This is the first agreement that Solvay has signed for

its myH202 peroxide technology, developed for installation

at remote customer premises,” Solvay noted. The unit will

use Suzano’s hydrogen feedstock, utilities and site services

and supply all of the site’s H202 needs.

The myH202 units, with production capacities ranging

from 5,000 t/y to 20,000 t/y, have a low environmental footprint

as they limit H202 truck supplies and reuse the hydrogen

already available from other production processes

on the customer’s site, Solvay explained, adding that it is

discussing several opportunities for its satellite myH202

plants with customers at remote locations worldwide.

 

Heraeus Announces New Indian Facility To Recycle Spent Reforming Catalysts

Rajasthan—Heraeus, “one of the world’s largest” recyclers of reforming

catalyst, said it has opened a new plant in India to recover

precious metals from spent petroleum catalysts.

The new facility, located in Udaipur, Rajasthan, will be

operated by the German-Indian joint venture, Ravindra

Heraeus. It will offer India’s petrochemical industry more

capacity and state-of-the art technology to recycle platinum

and palladium.

“Indian companies will therefore benefit from larger national

recycling facilities, which will provide less transport

costs and easier file processing, faster recycling times and

better transparency in the market and overall improved

costing for catalyst recycling,” the company explained.

“The new recycling facility of Ravindra Heraeus in India

will allow our customers from the petrochemical sector

to receive outstanding catalyst recycling standards,” noted

André Christi, president of Heraeus Metal Management.

 

Aramco to Drop Out of JV Project with PTT For Vietnamese Refinery & PC Complex

Hanoi—Saudi Aramco has decided to exit the proposed joint venture

project with Thailand’s PTT for a refinery and petrochemical

complex in Vietnam, Bloomberg reported.

The project involves construction of a 400,000-b/d refinery,

expected to cost about $20-billion, and production of 5-

million t/y of olefins and aromatics in Binh Dinh province

(PCN, 4 July 2016, p 1).

PTT recently postponed the project, attributing its decision

to political changes in Vietnam and uncertainty in the

global oil markets. The company said it will review the

investment at the end of the year.

Aramco and PTT were planning on each holding a 40%

interest in the project, with the Vietnamese government

owning the remaining stake.

 

Talke Transfers Its Belgian and Dutch Logistics Locations to Katoen Natie

Cologne—Talke has sold its logistics locations and activities in Belgium and

the Netherlands to Katoen Natie, a logistics company

based in Antwerp, Belgium.

The sale, for which a value was not disclosed, is part of

a program to optimize Talke’s location portfolio. Talke is

divesting subsidiaries that no longer fit into its location

strategy. The company plans to focus more intensely on its

business in other parts of Europe, the Middle East, Asia

and the U.S., Talke noted.

 

People on the Move

Total SA—Bernard Pinatel will join the group as president

of Refining & Chemicals and member of Total’s executive

committee. He is currently a member of Arkema’s executive

committee, responsible for the high performance

business segment.

Philippe Sauquet, currently president of Refining &

Chemicals and member of Total’s executive committee, has

been appointed president of the newly created Gas, Renewables

& Power branch. He has also been appointed

executive vice president of Strategy & Innovation. He will

remain on the executive committee.

Jean-Jacques Guilbaud has been named senior advisor

to the chairman and chief executive. All appointments are

effective 1 Sept. 2016.

Carbon Recycling International—K-C Tran, cofounder

and chief executive, has decided to step down from

his position as chief executive, but will provide assistance

to the company’s advisory board.

Sindri Sindrason, chairman of the board of directors,

will assume the chief executive responsibilities and become

executive chairman.

William Companies—Dr. Kathleen Cooper, currently

a director, has been appointed chairman of the board of

directors. She will replace Frank T. MacInnis, who has

decided to step down from that position.

European Chemical Industry Council (Cefic)—

Aaron McLoughlin has been named executive director of

public affairs, effective 1 Aug. 2016. He is senior vice

president and senior advisor in the environment and

chemicals practice of FleishmanHillard.

 

Tangguh LNG Facility Being Expanded; Will Include Third LNG Process Train

West Papua—Shareholders of the Tangguh Production Sharing Contract

Partners led by BP announced approval of a final investment

decision to advance development of the Tangguh liquefied

natural gas (LNG) expansion project in Teluk Bintuni,

West Papua.

The project will add an additional LNG process train at

the site with 3.8-million t/y of production capacity. The

site currently has two LNG process trains with a total production

capacity of 7.6-million t/y.

Awards for the project’s key engineering, procurement

and construction contracts are expected in the third quarter.

Production is scheduled to begin in 2020.

The Tangguh facility is operated by BP Berau on behalf

of the other production sharing contract partners as contractor

to SKK Migas. BP Berau and its affiliates in Indonesia

hold a 37.16% interest in the project. Other partners

include MI Berau (16.30%), CNOOC Muturi (13.90%), Nippon

Oil Exploration (12.23%), KG Berau Petroleum

(8.56%), Indonesia Natural Gas Resources Muturi (7.35%),

Talisman Wiriagar Overseas (3.06%) and KG Wiriagar Petroleum (1.44%).

 

Iran Resumes PC Exports to Britain; Plans to Regain Lost Market Share

Tehran—Iran has once again begun exporting petrochemical products to Britain

following the lift of international sanctions imposed on

Iran, reported the Tehran Times, citing the Mehr News

Agency.

Before the international sanctions, European countries

accounted for 13% of Iran’s petrochemical exports, totaling

about $2.5-billion.

“With sanctions fully lifted, it is possible for Iran to regain

its lost market share within one and a half to two

years,” from its competitors in Saudi Arabia and Qatar,

said the report, quoting Fariborz Karimaei, deputy director

of Iran’s Petrochemical Employers Assn.

In Europe, Britain is the “fourth largest” country to receive

petrochemical products from Iran after France, Italy

and Germany, the report noted. Bulgaria, Romania and

Greece are customers as well.

 

EuroChem Acquires Controlling Stake In Brazilian Fertilizantes Tocantins

Brasília—EuroChem announced the acquisition of a 50% interest

plus one share in Brazil’s “leading fertilizer distribution

company,” Fertilizantes Tocantins, making EuroChem the

majority stakeholder.

The acquisition is in line with EuroChem’s strategy to

strengthen its presence in the fast growing Latin American

fertilizer market, EuroChem noted. The transaction, for

which a value was not disclosed, is planned to be completed

by the end of August 2016, subject to regulatory approval.

Under the terms of the acquisition, Jose Eduardo

Motta, owner of Fertilizantes Tocantins, will retain a significant

interest in the venture, while continuing as chief

executive. He will oversee the operational management

and the strategic growth of the business.

“The acquisition . . . creates compelling growth opportunities

for EuroChem in Brazil,” noted EuroChem Chief

Executive Dmitry Strezhnev.

 

Air Products Dedicates New World-Scale Hydrogen Plant in Fort Saskatchewan

Edmonton—Air Products held a dedication ceremony on 7 July for its new

world-scale hydrogen production unit in Fort Saskatchewan,

Alberta, Canada (PCN, 21 Oct 2013, p 2).

The 150-million standard cubic feet per day plant is

connected to Air Product’s existing hydrogen pipeline network,

which supplies chemical processors, refiners, upgraders

and other industries in the Alberta Industrial

Heartland region.

The new hydrogen facility features the latest technology

advancements to maximize energy efficiency, the company

noted.

Air Products earlier said the plant would be built under

a long-term agreement to supply Shell’s Scotford operations

with hydrogen and steam.

 

Linde Philippines Investing €25-MN To Upgrade ASU & Add New NLU

Manila—Linde Philippines, a member of the Linde Group, is investing

€25-million to upgrade its existing air separation unit

(ASU) and add a new nitrogen liquefaction unit (NLU) at

its Apalit Pampanga site in the Philippines.

Once upgrades are complete, the production facilities at

the site will be able to produce over 400 t/d of liquefied

gases and related solutions to support the growing demand

of the shipbuilding, fabrication, electronics, healthcare,

and food and beverage industries.

The NLU, scheduled to start up in 2018, will support

the expansion of Linde’s liquid nitrogen and liquid oxygen

capacity and “strengthen the position of Linde as one of the

leading and most reliable gas manufacturers in the country,”

the company said.

 

IHS Asia Chemical Conference/Workshop Scheduled for 9-11 Nov. in Singapore

Houston—IHS Chemical will host the 4th Annual Asia Chemical Conference

and Workshop 9-11 Nov. 2016 at the Grand Hyatt

Singapore in Singapore.

The conference will cover the global energy and feedstocks

outlook; transformation of the global chemical industry;

olefins market developments; coal-to-chemicals

updates; a deep dive into specific product chains including

polyolefins, aromatics, the polyester chain, fibers and feedstocks,

butadiene and elastomers, and logistics infrastructure

for increasing trade.

For further information on the conference, visit the IHS

website at www.ihs.com/events/annual-asia-chemicalconference/

overview.html.

 

Toray Completes Korean PPS Plant

Seoul—Toray Advanced Materials has completed the “world’s first” integrated

polyphenylene sulfide (PPS) resins and compounds

facility in Gunsan, Korea, according to local reports.

Located at Toray’s Saemangeum complex, the plant has

the capacity to produce 8,600 t/y of PPS resins and 3,300

t/y of PPS compounds, as well as their raw materials (PCN,

20 Oct 2014, p 4).

Toray will be able to export the products to China under

the Korea-China Free Trade Agreement.

 

Covestro Starts Up Second Facility For HDI Production in Shanghai

Shanghai—Covestro, formerly Bayer MaterialScience, has opened a second hexamethylene

diisocyanate (HDI) facility at its integrated site

in Shanghai, China (PCN, 31 Mar 2014, p 3).

The new world-scale 50,000-t/y HDI plant was built in

response to Asia’s growing demand for high performance

coatings and adhesives. “The addition of the new plant

makes Shanghai one of the largest HDI production centers

in the world,” noted Dr. Klaus Schäfer, member of the

Covestro management board, responsible for production

and technology.

The plant uses the “very latest technology,” Schäfer

said. “It’s not only very safe and highly efficient, it also

stands out because of its particularly environmentally

friendly production process.” Overall, the carbon footprint

of HDI production has been reduced by up to 70%, he

added.

Covestro said the new plant is part of an investment

program for the site with a volume of more than €3-billion,

which was launched over 10 years ago and is now expiring.

The program also calls for polycarbonate production capacities

at the site to double to about 400,000 t/y before the

end of 2016.

The company’s first HDI plant at the site, which started

up in 2006, was expanded in 2013 from its original capacity

of 30,000 t/y.

 

BASF & Markor Inaugurate New Plant For PolyTHF Production in China

Xinjiang—BASF and Xinjiang Markor Chemical Industry Co. have started

up a new polytetrahydrofuran (PolyTHF) facility in Korla,

Xinjiang Uygur autonomous region in China (PCN, 8 Feb

2016, p 1).

The 50,000-t/y PolyTHF facility, operated as a joint

venture between BASF and Markor under the name BASF

Markor Chemical Manufacturing (Xinjiang) Co., complements

BASF’s existing Asian production facilities in Shanghai,

China and Ulsan, Korea, BASF noted.

BASF also produces PolyTHF in Geismar, La., and

Ludwigshafen, Germany, and has a total global PolyTHF

capacity of 350,000 t/y.

In January, the two companies inaugurated a new 1,4-

butanediol plant at the Korla site. The 100,000-t/y facility

is operated by another joint venture between BASF and

Markor, registered under the name Markor Meiou Chemical

(Xinjiang) Co.

 

JBF Industries Provides Update Of New Mangalore PTA Plant

Mangalore—JBF Industries, in its latest financial results, said that its JBF Petrochemicals

subsidiary is proceeding satisfactorily with implementation

of a new purified terephthalic acid (PTA)

plant in Mangalore, India (PCN, 25 Apr 2016, p 4).

The 1.25-million-t/y facility, which is based on BP’s latest

technology, had originally been scheduled for commissioning

by June of this year. JBF Industries now expects

the project to be completed by the end of its current financial

year, 31 Mar. 2017.

JBF Petrochemical entered into a long-term agreement

earlier this year with ONGC Mangalore Petrochemicals for

the supply of paraxylene to the PTA plant.

 

ACC Announces Release of Its Annual Guide to the Business of Chemistry

Washington—The American Chemistry Council (ACC) has released its 2016

edition of the Guide to the Business of Chemistry, which it

describes as a detailed economic profile of the chemistry

industry and its contributions to the U.S. and world economics.

“2016 has so far proven to be another year of robust and

sustained growth for the American chemical industry,”

said ACC Chief Economist Kevin Swift. “Growth is happening

despite economic challenges, and compared to producers

in other parts of the world, American chemical

manufacturers are greatly advantaged with access to

cheaper and more abundant feedstock and energy, resulting

in significant capital investment in American chemistry—

nearly $44-billion in 2015.”

The report, prepared annually by ACC’s Economics and

Statistics Dept., divides the $797-billion chemistry business

into over thirty categories of production, ranging from

inorganic chemicals to plastic resins; from adhesives and

sealants to oilfield chemicals; and from fertilizers to pharmaceuticals

and consumer products. Each section of the

guide covers a variety of topics in detail.

For more information on the guide, phone the ACC at

301, 617-7824.

 

PetroChemical News Briefs

Synthomer has successfully completed the acquisition

of Hexion Performance Adhesives & Coatings from

Hexion. The existing leadership team will transfer with

the business to Synthomer.

Rashtriya Chemicals and Fertilizers confirmed that

on 2 July a boiler exploded at its chemical factory in

Chembur, India, while the facility was shut down for routine

maintenance and inspection. Three workers were

killed while working on the boiler. The incident has not

disrupted any operation of the company, Rashtriya noted.

Heurtey Petrochem has signed two contracts, totaling

€38-million, for the delivery of process furnaces. The first

contract is for delivery of delayed coker furnaces to a refinery

in the U.S. The second contract involves engineering,

supply and fabrication of a steam reforming furnace for an

ammonia-urea unit in India.

Dow to Reduce 2,500 Positions Globally Following Dow Corning Restructure

Midland—Dow Chemical said has taken a series of steps to “achieve synergy

capture and accelerate shareholder value creation”

from the restructuring of its ownership of Dow Corning,

which will result in a reduction of approximately 2,500 positions

globally.

Dow plans to shut down silicones manufacturing plants

in Greensboro, N.C., and Yamakita, Japan, as well as some

administrative, corporate and production facilities.

Cost synergies will also be achieved through a combination

of workforce consolidations and savings from actions

such as harmonizing energy contracts at large sites, optimizing

warehouse and logistics footprints, implementing

materials and maintenance best practices, combining information

technology service structures and leveraging

existing research and development knowledge management

systems, the company explained.

“We are moving quickly and effectively to integrate Dow

Corning and deliver the synergies that will drive new levels

of value creation for our customers and generate even

greater returns for our shareholders,” said Andrew N. Liveris,

Dow’s chairman and chief executive.

“With these difficult but necessary actions, we are

bringing together the best of each company’s talent and

technology, accelerating Dow’s strategy to go narrower and

deeper into attractive, targeted market sectors, and setting

the stage for the new Dow—the world’s leading material

science company,” he added.

On 1 June 2016, Dow completed an ownership restructuring

of Dow Corning, making Dow 100% owner of Dow

Corning’s silicones business.

 

Kinder Morgan Selling 50% Equity Stake In Utopia Pipeline Project to Riverstone

Houston—Kinder Morgan Inc. (KMI) is selling a 50% equity interest

in its Utopia Pipeline Project to Riverstone Investment

Group LLC (PCN, 6 Oct 2014, p 2).

The project includes approximately 215 miles of new,

12-inch diameter pipeline built entirely within Ohio, from

Harrison County to Fulton County. It will connect with an

existing KMI pipeline and associated facilities in order to

transport ethane and ethane-propane mixtures to petrochemical

companies operating in Ontario, Canada.

Riverstone will reimburse KMI at closing for its 50%

share of prior capital expenditures related to the project

and a payment in excess of capital expenditures to recognize

the value created by KMI in developing the project.

Riverstone will also fund its share of future capital expenditures

necessary to complete the project, which is estimated

to cost about $500-million.

In 2014, Nova Chemicals signed a long-term transportation

agreement with Kinder Morgan Energy Partners to

transport its product through the pipeline. At the time, the

companies said the project was expected to be in service by

early 2018 with the receipt of timely permitting and regulatory

approvals.

 

W.R. Grace Completes Acquisition of Assets Of BASF’s Polyolefin Catalysts Business

Columbia—W. R. Grace & Co. has completed the acquisition of the assets

of BASF’s polyolefin catalysts business for an undisclosed

amount (PCN, 2 May 2016, p 1).

The purchase includes BASF’s Lynx high-activity polyethylene

catalyst technologies and its Lynx polypropylene

catalyst technologies. The transaction also includes production

plants in Pasadena, Texas, and Tarragona, Spain,

as well as patents, trademarks and about 170 employees.

The assets will provide Grace with significant additional

flexibility and capacity for its global polyolefin catalysts

manufacturing network, Grace noted, adding that

with this acquisition the company now has the broadest

portfolio of polyolefin catalyst technologies of any independent

catalysts producer.

“We are excited to begin working with our new customers

and to add the high-performing Lynx products to our

portfolio of polyolefin catalysts,” said Grace Chairman and

Chief Executive Fred Festa. “We are equally excited to

welcome a group of talented employees to Grace. They are

an important part of serving our customers and achieving

our business strategy in polyolefin catalysts.”

 

Thailand’s PTT Decides to Postpone Vietnamese Refinery, PC Complex

Hanoi—PTT of Thailand has shelved plans to build a $20-billion refinery

and petrochemical complex in Vietnam and will review the

investment at the end of the year, reported Reuters, citing

PTT, which attributed the decision to political changes in

Vietnam and uncertainty in global oil markets.

The project, to be built in partnership with Saudi

Aramco, involves a 400,000-b/d refinery and the production

of 5-million t/y of olefins and aromatics in Binh Dinh province

(PCN, 2 Feb 2015, p 3).

PTT and Aramco are planned to each own a 40% interest

in the project, with the Vietnamese government owning

the remaining stake.

 

Saudi Aramco & Sabic to Conduct Study On Proposed Oil-to-Chemicals Facility

Yanbu—Saudi Aramco and Sabic have signed a heads of agreement to

study the feasibility of building a fully integrated crude oilto-

chemicals complex in Yanbu, Saudi Arabia (PCN, 11 Apr

2016, p 3).

“Derived from improved refining technology, the crude

oil-to-chemicals process will involve innovative configurations

with proven conversion technologies,” said Aramco.

“This will create a fully integrated petrochemical complex

which maximizes chemical yield, transforms and recycles

by-products, drives efficiencies of scale and resource optimization

and diversifies the petrochemical feedstock mix in

the Kingdom.”

Under the agreement, the companies may form a joint

venture if the study has a positive outcome. A schedule for

the study was not given.

 

Energy Transfer Equity Terminates Merger Agreement with Williams

Dallas—Energy Transfer Equity (ETE) has terminated its merger agreement

with the Williams Companies, effective 29 June 2016

(PCN, 23 May 2016, p 2).

The agreement involved ETE acquiring Williams in a

transaction valued at approximately $37.7-billion, including

the assumption of debt and other liabilities.

On 24 June 2016, the Delaware Court of Chancery issued

an opinion finding that ETE was contractually entitled

to terminate the merger agreement with Williams in

the event ETE’s counsel was unable to deliver a required

tax opinion prior to the 28 June 2016 outside date in the

merger agreement. The counsel was unable to deliver an

opinion by the outside date that tax authorities would treat

the transaction as tax free.

Williams said it has concluded that it is in the best interests

of its stockholders to seek among other remedies,

monetary damages from ETE for its breaches, and has appealed

the Delaware Court of Chancery’s decision to the

Delaware Supreme Court.

“While taking appropriate actions to enforce its rights

and deliver benefits of the merger agreement to its stockholders,

Williams will renew its focus on connecting the

best natural gas supplies to the best markets,” Williams

noted.

 

LSB’s El Dorado Ammonia Facility Operating at Nameplate Capacity

El Dorado—LSB Industries’ new 375,000-t/y ammonia plant in El Dorado,

Ark., which began production earlier this year, has been

operating at nameplate capacity since 22 June (PCN, 23

May 2016, p 1).

The project, costing about $830-million, includes a

300,000-t/y nitric acid plant and 40,000-t/y concentrator.

Both units were completed in 2015.

“The addition of ammonia production capabilities at El

Dorado will be transformative to that facility’s economics,

which we expect to be reflected in LSB’s overall financial

performance in the second half of 2016,” said LSB Chief

Executive Daniel Greenwell.

El Dorado has become a net seller of ammonia since

reaching nameplate capacity, with all ammonia that the

facility has not upgraded into other products being sold via

pipeline to Koch Fertilizer under a three-year offtake

agreement, the company noted.

 

Abu Dhabi Government Plans Merger Of IPIC and Mubadala Development

Abu Dhabi—Abu Dhabi Crown Prince Mohamed bin Zayed Al Nahyan has

issued a resolution to merge International Petroleum Investment

Co. (IPIC) and Mubadala Development Co.

The resolution stipulated that a joint committee is to be

created and will be responsible for merging the businesses

of the two companies, which “would create greater benefits

and enhanced economic value to the Government of Abu

Dhabi,” Al Nahyan said.

The combined entity will realize synergies and growth

in multiple sectors, including energy, technology, and financial

investments, among others. It may also have the

ability to contribute more significantly to the diversification

of the economy, he added.

 

ChemChina, Rosneft Agree to Cooperate In Far East Petrochemical Co. Project

Moscow—China National Chemical Corp. (ChemChina) and Rosneft

have signed a heads of agreement to cooperate in a feasibility

study of Rosneft’s Far Eastern Petrochemical Co.

(Fepco) project at Nakhodka in Russia’s Primorsk region

(PCN, 14 Sept 2015, p 2).

Under the agreement, ChemChina will acquire a 40%

stake in the project, which Rosneft earlier said would process

3.4-million t/y of hydrocarbon feedstock and have the

capacity to produce 2-million t/y of ethylene and propylene.

No other details are available.

“The agreement marks a new and important step in the

development of Fepco—one of the largest industrial complexes

in Russia,” said Rosneft Chief Executive Igor

Sechin. “Bringing ChemChina will enable Rosneft to optimize

the project financing and co-organize the sale of highmargin

products of the future complex.”

 

Technip & FMC Union Progresses; U.S. Antitrust Review Concluded

Paris—Technip and FMC Technologies’ pending merger has received an early

decision from U.S. antitrust regulators under the Hart-

Scott-Rodino Antitrust Improvement Act of 1976, successfully

concluding U.S. antitrust review of the proposed

transaction (PCN, 20 June 2016, p 4).

Under a memorandum of understanding signed this

past May, the companies will combine in an all-stock

merger valued at $13-billion. Each of the company’s shareholders

will own close to 50% of the combined company,

which will be named TechnipFMC.

The transaction remains subject to shareholder approval

of both companies, conclusion of antitrust review in

other countries, regulatory approvals, and other customary

closing conditions.

 

Dow Signs Contract with RSA-Talke For Storage of Chemical Products

Dubai—Dow Chemical Co. and RSA-Talke have signed a supply chain contract

for the storage of chemical products manufactured at

Dow’s various global production sites.

RSA-Talke, a joint venture of RSA Logistics and Talke

Group, will receive and store the chemical products in specialized

chemical warehouses at Dubai South in the United

Arab Emirates.

“The signing of this significant agreement with Dow has

again confirmed the interest of our customers in our strategy

of providing a full service portfolio for chemical logistics

in Dubai,” said Richard Heath, director, Middle East &

USA at Talke and director of RSA-Talke.

 

People on the Move

Honeywell—Darius Adamczyk, currently president

and chief operating officer, has been named chief executive,

effective 31 Mar. 2017. He will succeed Chairman and

Chief Executive Dave Cote, who will continue as chairman

until the company’s annual shareowners meeting in April

2018. Cote will then begin a five-year consulting and noncompete

agreement with Honeywell.

 

Rosneft and Sinopec Sign Agreement For Gas Processing & PC Complex

Moscow—Rosneft and Sinopec have signed a framework agreement for a joint

pre-feasibility study of a project that involves construction

of a gas processing and petrochemical complex in east Siberia

(PCN, 21-28 Dec 2015, p 4).

Further to a memorandum of understanding signed between

the parties last year, the agreement provides for

technology selection, as well as selection of a project management

consultant. The partners will also identify competitive

challenges and when to address them prior to the

front-end engineering design stage. The parties plan to

create a joint venture in 2017.

“The project will meet the growing demand for polyethylene

and polypropylene in Russia and China,” Rosneft

noted. The integrated complex, to be located near the administrative

center of Boguchany district, is expected to

have a capacity of 5-billion cu m/yr of gas yielding up to 3-

million t/y of polymers and petrochemical products.

Last year Rosneft said the complex was expected to

process up to 10-billion cu m/yr of gas and produce up to 3-

million t/y of ethylene with about 6-million t/y of derivative

production.

 

AGC Renames Vietnamese Subsidiary; Sets Southeast Asia as Priority Area

Hanoi—Asahi Glass Co. (AGC) has changed the name of its Phu My Plastics

& Chemicals subsidiary in Vietnam to AGC Chemicals

Vietnam, effective 23 June 2016.

AGC Chemicals Vietnam, located in Ba Ria-Vung Tau

province, has a polyvinyl chloride (PVC) production capacity

of 150,000 t/y. The subsidiary is owned by AGC (78%),

Mitsubishi Corp. (15%) and Vung Tau Shipyard Corp. (7%).

The AGC Group, under its management policy, has set

the chlor-alkali and PVC business in Southeast Asia as a

priority area. AGC has integrated the brand name of its

PVC products for the Southeast Asian market to ASNYL,

which is the brand name used by AGC’s Indonesian chemical

subsidiary Asahimas Chemical.

By changing the company name and the PVC brand

name, AGC said it will increase the sales of PVC products

in the region through a close cooperation between its Vietnamese

and Indonesian subsidiaries.

 

Clariant Joins Carbon2Chem Project To Lower Industrial CO2 Emissions

Munich—Clariant is participating in the Carbon2Chem project, a crossindustry

project for the reduction of carbon dioxide (CO2)

emissions of industrial steel production plants.

The project, which has now begun its “active phase,”

aims at transforming smelting gases from the steel industry

into valuable chemicals, said Clariant.

“Currently, these chemicals are only used energetically—

as a source of power generation in the steel power

plant. The objective of the Carbon2Chem project is to find

a solution for using the smelting gases for the production of

materials, for example methanol,” the company explained.

Clariant is providing methanol catalysts and know-how

in order to validate the suitability. It will also participate

in the upstream processing of the smelting gases. For the

gas purification, Clariant is contributing adsorbents, catalysts

and know-how of their application.

 

Fibrant Discontinuing U.S. Operations; Closing Augusta Caprolactam Plant

Sittard—Fibrant LLC is discontinuing operations in the U.S. with the closure of

its caprolactam facility in Augusta, Ga., according to several

media reports.

In January, Fibrant announced that business activities

previously known as DSM Caprolactam have been renamed

Fibrant. The decision to change the name followed

completion of a joint venture transaction between CVC

Capital Partners and DSM to acquire DSM’s global

caprolactam activities. CVC holds a 65% stake in the venture,

with DSM holding the remaining 35%.

Fibrant produces a total of 900,000 t/y of caprolactam

and 1.5-million t/y of ammonium sulfate at its sites in Nanjing,

China; Augusta, Ga., and Geleen, the Netherlands.

Operations at Augusta are expected to shut down in approximately

16 months.

The company will “meet all obligations to its employees,

and serve the needs of its customers to the extent possible,”

the reports quoted Fibrant as saying. Between 500 and

600 employees will be affected by the closure.

 

JX Nippon Further Studying Feasibility Of Polyisobutylene Expansion in Japan

Kawasaki—JX Nippon Oil & Energy has launched front-end engineering

design and is proceeding with a further detailed feasibility

study to increase polyisobutylene (PIB) capacity at

its site in Kawasaki, Kanagawa, Japan.

The company is planning to build a 5,000-t/y PIB plant

at the site of its existing 7,000-t/y PIB facility, in order to

respond to the global demand of 35,000 t/y of PIB. Cost of

the project was not given.

Construction is expected to begin between January and

March 2018 with commercial operations scheduled to start

in October 2019.

 

Wison Engineering Wins EPC Contract For EO/EG Facility in Saudi Arabia

Riyadh—Wison Engineering has been awarded an engineering, procurement

and construction (EPC) contract for an ethylene oxide/

ethylene glycol (EO/EG) project in Saudi Arabia.

Under the contract, Wison will be responsible for expansion

of the EO/EG plants and auxiliary units. Mechanical

completion is expected in the third quarter of

2017. No other details were available.

“The award of this EO/EG project will reinforce Wison’s

project execution capabilities in glycol facilities featuring

different mainstream technologies,” the company noted.

 

Qatar’s Tasweeq Being Absorbed by QP

Doha—Qatar International Petroleum Marketing Co. (Tasweeq) will be

absorbed into Qatar Petroleum (QP), both owned by the

State of Qatar.

The integration will involve transitioning Tasweeq’s assets,

employees and customer relationships into the QP

organization before the end of the year.

Combining the companies will “help us maximize

greater value for QP and the State of Qatar across the entire

oil and gas value chain,” said Saad Sherida al-Kaabi,

president and chief executive of QP

 

Borealis Completes Purchase of 100% Stake In German Plastics Recycler MTM Plastics

Berlin—Borealis has completed the acquisition of a 100% interest

in German plastics recycler MTM Plastics and MTM Compact,

for an undisclosed amount (PCN, 6 June 2016, p 4).

Based in Niedergebra, MTM Plastics said it is regarded

as a “technology leader” in the recycling of mixed postconsumer

plastic waste and as “one of Europe’s largest”

producers of post-consumer polyolefin recyclates.

“Over the past decade, innovations are increasingly addressing

sustainability issues and caused stakeholders to

rethink and reshape their approach to value creation,”

noted Alfred Stern, executive vice president of Polyolefins

and Innovation & Technology at Borealis.

“As a leader in our industry, it is a part of our responsibility

to be in the driving seat to couple growth ambitions

with providing solutions to solve society’s global challenges,”

he said. “This is why we are fully committed to

the principles or the circular economy and with this acquisition

we now take our engagement to plastics recycling to

the next level,” Stern added.

The recycling companies will retain the current managing

directors to ensure business continuity, and will become

part of the Borealis Group.

 

Superior Plus Cancels Agreement To Buy 100% Interest in Canexus

Calgary—Superior Plus announced that its board of directors has decided to

terminate an arrangement agreement to acquire all issued

and outstanding shares of Canexus for about C$1.70 per

share (PCN, 23 May 2016, p 2).

Late last month, the Federal Trade Commission (FTC)

filed an administrative complaint, alleging that the

planned acquisition of Canexus by Superior Plus would

violate U.S. antitrust laws. The FTC authorized its staff to

seek a temporary restraining order and a preliminary injunction

to prevent closing of the proposed acquisition,

pending completion of the administrative proceeding.

Canexus and Superior had been engaged in discussions

to potentially extend the 29 June 2016 outside date of their

arrangement agreement, in order to allow Superior time to

defend the action by the FTC.

“The arrangement agreement provides that the transaction

may be terminated by Superior under certain circumstances,

which have occurred,” Superior said, adding that

it “had been in discussions with Canexus, but the parties

have failed to reach agreement on terms that would allow

the transaction to proceed.”

 

India to Set up PC Hubs Around Refineries To Create Additional Jobs in the Region

New Delhi—The government of India plans to set up petrochemical

complexes in and around all 22 of India’s refineries to help

create more jobs and attract major investment, reported

the Times of India, citing Union Chemicals and Fertilizers

Minister Ananth Kumar.

“This will result in savings as cluster approach can reduce

costs. The projects need not be confined only to

greenfield projects, but also cover brownfield projects already

running at various places,” he said.

India is urging the chemical industry to become competitive

and not rely only on government incentives.

The government can provide common facilities in these

clusters, including infrastructure, effluent plants, testing

and trading facilities, which can lower expenses by 25% to

30%, Kumar noted.

 

Arkema Opening Innovation Lab At HanYang University in Seoul

Seoul—Arkema is “strengthening its research network” by opening an innovation

center, which will be based within HanYang University

in Seoul, Korea, the company announced.

The new laboratory will specialize in high performance

polymers and renewable energies, two of HanYang’s areas

of excellence, Arkema noted.

Arkema already operates research centers in China and

Japan. The new application laboratory will complement its

existing research and development facilities, the company

noted. It will also enable Arkema’s teams in the region to

provide local support, in particular to customers in the adhesives

and technical polymers markets.

 

Socma & DHS Schedule 10th Annual Chemical Sector Security Summit

Alexandria—The Society of Chemical Manufacturers and Affiliates (Socma),

in conjunction with the Dept. of Homeland Security (DHS),

will hold the 10th annual Chemical Sector Security Summit

19-21 July 2016 at the Hilton Mark Center in Alexandria,

Virginia.

The summit, based on the theme “Securing Our Nation

Together, Now and in the Future,” will feature a keynote

address by DHS Deputy Secretary Alejandro Mayorkas. It

will also include regulatory updates from key DHS officials

on chemical facility anti-terrorism standards and other

issues impacting the sector, as well as sessions on cyber

security and threats to the chemical sector.

There is no fee to attend the summit, but those interested

in attending must register. For further details, visit

www.socma.com.

 

Socar Signs Financing, Construction MoU For Azerbaijani Gas Chemical Complex

Baku—Socar, Gazprombank, Italian export credit agency Sace and Russia’s

export credit agency Exiar have signed a memorandum

of understanding (MoU) for the financing and construction

of Socar Gas Plastics Co.’s gas chemical complex

in Garadagh, Azerbaijan.

According to preliminary estimates, the total investment

budget of the project is $3.5-billion and involves construction

of a gas processing unit with an annual capacity

of approximately 10-billion cu m of natural gas, a polyethylene

plant with about 570,000 t/y of capacity and a propylene

unit with approximately 120,000 t/y of capacity, as

well as related infrastructure.

Tecnimont, promoter of the project, said it would be

best positioned for the project’s engineering, procurement

and construction phase.

“Gazprombank Group is already implementing a number

of large projects with Socar in Azerbaijan, said Andrey

Akimov, chairman of the board of Gazprombank. “This

mutually beneficial cooperation is a good example of combining

the financial and technological capabilities of the

group.”

 

Azot Selects Tecnimont, Codest to Build Kemerovo Fertilizer Project in Russia

Kemerovo—Russian chemical company Azot has signed a memorandum

of understanding with Tecnimont and construction

company Codest for development of a fertilizer complex in

Kemorovo, southwestern Siberia, Russia.

The project consists of a “world-scale” complex with the

capacity to produce 2,000 t/d of ammonia, a 1,250-t/d nitric

acid unit, a 1,000-t/d porous ammonium nitrate plant and

a 1,250-t/d ammonium nitrate solution unit, Tecnimont

noted. Cost of the project and an expected completion date

were not given.

 

DCM Shriram Nearing Completion Of Indian Chlor-Alkali Expansions

New Delhi—DCM Shriram has notified the Bombay Stock Exchange that it

expects to complete a chlor-alkali capacity expansion at its

facilities in Bharuch and Kota, India, by September or October

of this year.

At Bharuch, chlor-alkali capacity is being increased by

499 t/d to a total of 949 t/d. DCM Shriram already commissioned

420 t/d of the new chlor-alkali capacity on 14

June 2016.

Chlor-alkali capacity at Kota is being raised by 6 t/d to

a total of 336 t/d. The company is also expanding the

power plant at both locations. Total investment for the

projects is Rs 607.20 crore.

“The brownfield expansion and technology upgradation

will strengthen our competitiveness and industry position,”

the company noted. According to DCM Shriram, it is the

third largest chlor-alkali producer in India.

 

Braskem Idesa Joint Venture Opens Ethylene XXI Project in Veracruz

Veracruz—Braskem Idesa, a joint venture of Braskem (75%) and Idesa

(25%), has inaugurated its Ethylene XXI complex in Veracruz,

Mexico (PCN, 9 May 2016, p 1).

The $5.2-billion petrochemical complex consists of a 1-

million-t/y ethane-based cracker, two high-density polyethylene

plants with a combined capacity of 750,000 t/y and a

low-density polyethylene unit. Production will be sold locally

and will also be exported to the U.S., Europe, Asia

and Central and South America.

The complex is the “largest greenfield industrial investment

ever made by a Brazilian company abroad,”

Braskem noted. “With the additional production from

Mexico, Braskem will have capacity to produce 8.7-million

tons of thermoplastic resins, including polyethylene, polypropylene

and polyvinyl chloride. With this volume,

Braskem strengthens its global leadership being the five

largest producers of thermoplastic resins.”

 

Gables Energy Partners Forms Company To Build, Own and Operate PC Plants

Coral Gables—Gables Energy Partners has formed a new company, Encina

Solutions, to build, own and operate petrochemical

plants in key markets utilizing established technologies.

“We are currently working with our team on the development

of small- to mid-sized petrochemical plants that

are capable of capturing 100% of the CO2, as well as eliminating

sulfur and substantially reducing mercury, from low

value coal feedstock through the plant process,” said David

Schwedel, lead investor and executive director of Encina.

“We are excited to be deploying technology that is designed

to extract value from coal while at the same time

maintain our commitment to the environment,” he noted.

“Our team is gearing up to manage more than $2-billion in

opportunities over the next several years.”

Based in Coral Gables, Fla., Encina will initially aim

for projects in North America, with plans to expand into

the UK, Germany and Australia.

 

Velesstroy Working with Maire Tecnimont On EuroChem’s Kingisepp NH3 Facility

Moscow—Russian construction company Velesstroy has signed a collaboration

agreement to cooperate with Maire Tecnimont

on construction of EuroChem’s 1-million-t/y high-tech ammonia

plant in Kingisepp, Russia (PCN, 7 Sept 2015, p 2).

The project, valued at around €900-million, will be

based on KBR’s latest ammonia production technology.

Construction is scheduled to begin in October, with production

expected in 2018.

Maire Tecnimont was last year awarded the engineering,

procurement and construction (EPC) contract, valued

at €660-million. Sace is providing a €575-million loan

guarantee to EuroChem for the EPC contract.

 

Primus Announces Methanol Plant Project; Delivery to Alberta Scheduled for 2018

Alberta—Primus Green Energy has signed a memorandum of understanding

with an Alberta-based capital and operating

partner to develop and deliver a 160-t/d methanol plant to

an operating site in Alberta, Canada.

The plant will use a standardized modular gas-toliquids

system to convert low-cost feedstock from Alberta

natural gas fields into methanol, thus saving natural gas

producers and processors in the region on production and

transportation costs of methanol, Primus explained. Production

will begin in the first quarter of 2018.

Primus has applied to Alberta Energy’s Petrochemicals

Diversification Program, which encourages companies to

invest in the development of new Alberta petrochemical

facilities by providing up to $500-million in incentives

through royalty credits.

“Royalty credits are an important incentive as we make

a final investment decision and will affect the final location

decision of our methanol plant,” said George Boyajian,

chief commercial officer at Primus.

In addition to its 160-t/d Marcellus methanol plant announced

earlier this year, Primus plans to deliver up to

three additional units in North America, with capacities

ranging from 160 t/d to 640 t/d (PCN, 9 May 2016, p 2).

 

Talke Building Logistics Facility in Litvinov For Unipetrol’s New Polyethylene Facility

Litvinov—Unipetrol has awarded a 700-million CZK contract to

Talke to build a logistics facility for Unipetrol’s new highdensity

polyethylene (PE3) plant under construction in

Litvinov, Czech Republic (PCN, 13 June 2016, p 2).

Talke, general contractor for the project, will be responsible

for the engineering, procurement and construction of

the logistics facility. When complete in the first quarter of

2018, the facility will have the capability to handle and

package 270,000 t/y of HDPE from the PE3 project.

The PE3 unit is based on Ineos’ Innovene S technology

and will replace the older PE1 plant. The 200,000-t/y PE2

unit will continue operating. Construction on PE3 is expected

to be completed in mid-2018.

 

Chemical Industry Bracing for Aftermath Of UK’s Vote to Exit the European Union

London—The UK’s 23 June decision to leave the European Union

(EU) is a “negative signal for the further economic development”

in Europe, said Marijn Dekkers, president of VCI,

the German Chemical Industry Assn.

“Less economic growth in the EU member states and

weaker export business will be the consequences. But the

political damage weighs just as heavily,” he noted.

Cefic, the EU chemical industry council, said its members

and the members of the UK Chemical Industries

Assn. had jointly supported the UK remaining part of the

EU, because it opens markets and reduces trade barriers

for the UK industry. However, Cefic added that it “fully

respects” the UK’s decision.

“We need to work closely to ensure that existing trade

and investment is not weakened and future opportunities

are seized. . . . We look forward to playing our part towards

carving out a strong and reformed Europe,” Cefic added.

 

Covestro Gets Go Ahead to Enhance German MDI Production Capacity

Brunsbüttel—Covestro has received approval from the board of management

to nearly double diphenylmethane diisocyanate

(MDI) production capacity at its Brunsbüttel, Germany,

site to about 400,000 t/y.

Preliminary plans call for a total investment volume (in

euros) in the “low hundreds of millions,” Covestro noted.

The company will convert an existing idled toluene diisocyanate

unit at the site for the production of MDI. Commissioning

of the new plant is scheduled for late 2018.

“The planned MDI plant complex is a milestone in

terms of energy efficiency, environmental compatibility

and productivity, in addition to meeting the highest safety

standards,” said Dr. Steffen Kühling, site and production

manager at Brunsbüttel.

“The Covestro Brunsbüttel Industrial Park is particularly

well-suited for the MDI expansion because raw materials

and other precursors are available there,” the company

noted, adding that the site’s employees also have “extensive”

expertise and experience.

 

Sadara Chemical Increases Capital With Loans from Its Shareholders

Jubail—Sadara Basic Services Co., a subsidiary of Sadara Chemical Co.,

said in a letter to Tadawul that Sadara has increased its

capital by approximately 22.9% with a loan from shareholders.

The additional capital is needed to offset losses resulting

from an increase in the operational activities of Sadara.

It will not result in any financial impact on Sadara Basic

Services Co.

Sadara is a joint venture of Saudi Aramco’s Performance

Chemicals Holding Co. subsidiary (65%) and Dow

Chemical Co.’s Dow Saudi Arabia Holding BV subsidiary

(35%). The partners will retain their original ownership

percentage.

Sadara is investing $20-billion in construction of a

world-scale chemical complex in Jubail, Saudi Arabia. The

complex, comprised of 26 manufacturing units, is expected

to achieve full operation by 2017 (PCN, 14 Dec 2015, p 1).

 

Idemitsu and SSSKK Amend Schedule Of Integration & Share Acquisition

Tokyo—Idemitsu Kosan and Showa Shell Sekiyu KK (SSSKK) have changed

the schedule of a planned business integration of the two

companies and Idemitsu’s acquisition of a 33.3% interest in

SSSKK (PCN, 16 Nov 2015, p 2).

The schedule was amended due to the Japan Fair Trade

Commission’s ongoing review of the proposed combination,

said Idemitsu, noting that the share acquisition is contingent

upon the completion of the review. All required reviews

in other jurisdictions have been completed.

Idemitsu and SSSKK signed a memorandum of understanding

last November to form a new equally-owned company

in order to support Japan’s energy security. The new

company was planned to be launched between October

2016 and April 2017. The new effective combination date

is 1 April 2017.

The share purchase agreement, expected to be completed

in the first half of 2016, is now planned for completion

in September 2016.

 

TCI Sanmar Awards Jacobs Contract For PVC-2 Expansion in Port Said

Port Said—TCI Sanmar Chemicals awarded a contract for detailed engineering

and procurement assistance services to Jacobs Engineering

for TCI Sanmar’s polyvinyl chloride plant expansion

(PVC-2) in Port Said, Egypt (PCN, 18 Apr 2016, p 3).

Production capacity at the site will be doubled to

400,000 t/y from 200,000 t/y. The project’s schedule includes

18 months of engineering and 21 months for mechanical

completion.

TCI Sanmar currently has a combined total of 300,000

t/y of PVC capacity in Mettur and Cuddalore, India. Once

the Port Said expansion is complete, TCI Sanmar will be

“among the largest PVC companies in the world,” according

to Fairfax India Holdings, which is in the process of acquiring

a stake in the Sanmar Chemicals Group.

Fairfax earlier this year agreed to invest $300-million,

through a combination of equity and fixed income securities,

into Sanmar in exchange for a 30% interest.

 

Arkema & Jurong Amend, Restate Contract For Sunke Acrylics Joint Venture in China

Taixing—Arkema, which earlier this year decided not to exercise a

first call option to raise its equity stake in its Chinese

Sunke joint venture with Jurong Chemical to 67% from

55%, said the partners have entered into an amended and

restated joint venture contract (PCN, 8 Feb 2016, p 3).

Under the new contract, Jurong no longer has the right

to dilute Arkema’s interest in Sunke from 55% to 33%. The

parties have agreed that all call options be terminated and

the shareholding in Sunke shall remain with Arkema holding

55% and Jurong holding 45%.

Sunke and Arkema are obligated to pay an aggregate

consideration of RMB 800-million to Jurong for assets

which had been injected into Sunke in July 2015, and to

maintain the joint venture equity proportion.

The partners also agreed that effective 18 June 2018,

Arkema has the right to appoint four directors to the

Sunke board. The board currently consists of six director,

three of whom are appointed by Jurong and the remaining

three appointed by Arkema.

The venture owns and operates acrylic acid and butyl

acrylate production units in Taixing, China.

 

Invista Resolves Arbitration in China For Its Proprietary PTA Technology

Shanghai—Invista has resolved an intellectual property arbitration

against a Chinese company for misuse of Invista’s confidential

and proprietary purified terephthalic acid (PTA)

technology.

“We are glad to see that our intellectual property protection

initiatives in China align well with the government’s

increased enforcement of these rights,” said Mike

Pickens, president of Invista Performance Technologies.

“This allows Invista to confidently continue developing and

licensing leading-edge technology in China.”

During the course of this arbitration, the company introduced

its P8 technology, which it describes as a new

PTA platform that drives customers’ variable and capital

costs even lower.

“We will take similar steps to protect this latest generation

technology, using legal actions as necessary to ensure

protection of our intellectual property,” Pickens noted.

 

Matheson Tri-Gas Agrees to Purchase Certain U.S. Assets from Air Liquide

Trenton—Matheson Tri-Gas, a single source provider of industrial and

specialty gases, has executed an agreement for the purchase

of 18 air separation plants in 16 locations from Air

Liquide in the U.S.

The assets include four carbon dioxide plants, two nitrous

oxide units, and related assets. The agreement also

includes Matheson’s purchase of three Airgas retail stores

in Alaska.

The assets sale is required by the U.S. Federal Trade

Commission in connection with Air Liquide’s recently completed

acquisition of Airgas (PCN, 30 May 2016, p 4).

Matheson, a subsidiary of Taiyo Nippon Sanso, last

year entered into an agreement with Sasol to build an air

separation unit (ASU) to supply tonnage oxygen and nitrogen

to Sasol’s 1.5-million-t/y ethane cracker being built in

Lake Charles, La. (PCN, 26 Jan 2015, p 2).

The ASU will be owned and operated by Matheson and

is scheduled for start-up in 2018. It will “augment existing

operations, supplying both Sasol and existing customers,

while also providing for additional expansion in the Lake

Charles area,” Matheson earlier noted.

 

RIL & IIP Develop Indigenous Technology To Extract Benzene from Light Naphtha

New Delhi—Reliance Industries Ltd. (RIL), in partnership with the Indian

Institute of Petroleum (IIP), has developed a new indigenous

technology to extract benzene from naphtha produced

in fluid catalytic cracker units, RIL announced.

“Due to health and environmental concerns, there has

been an increasing pressure on refiners around the world

to reduce the amount of benzene and other hazardous air

pollutants in the gasoline pool,” said RIL.

In 2011, RIL and IIP signed an agreement to co-develop

an extractive distillation process using a solvent that

would not significantly degrade in the presence of difficult

species and contaminants. Following several experiments,

the partners established a selected solvent that met required

performance criteria.

The process, named Benzene Recovery Unit, was commissioned

on 23 May and the on-specification raffinate

product (less that 0.2 volume-% benzene) was sent to storage

for blending and sales.

RIL claims that there are many enquiries for licensing

the new technology.

 

Eni Terminates Talks with SK Capital For Sale of Majority Stake in Versalis

Milan—Eni

announced that negotiations with SK Capital over the sale

of a majority interest in Eni’s wholly-owned subsidiary

Versalis have been terminated (PCN, 29 Feb 2016, p 4).

The parties could not reach an agreement on certain

issues, including the future governance of the company.

Therefore, starting from the second quarter results, Eni

will fully consolidate Versalis within the group’s accounts.

Eni earlier this year said it had classified Versalis as

“discontinued operations” in its fourth quarter and full

year 2015 results, and that selling a majority interest in

Versalis would support Eni in implementing the industrial

plan designed to upgrade the business.

 

Worldwide Ammonia Capacity Set to Grow ‘Considerably’ by 2020, Says GlobalData

London—Over the next five years, global ammonia capacity is expected

to rise “considerably,” from 225.3-million t/y in 2015

to 271-million t/y by 2020, according to a new report by

research and consulting firm GlobalData.

The U.S. and Iran will be responsible for the majority of

the 80 ammonia projects planned to come online during

that period. The U.S. will add about 8.3-million t/y of capacity

with 15 projects, and Iran will add about 7.4-million

t/y of capacity by 2018 with 12 planned projects. Capital

expenditure for the U.S. and Iran’s projects over the next

five years total $3.47-billion and $3-billion, respectively.

In the U.S., CF Industries and Incitec Pivot will account

for major capacity additions. A majority of the capacity

additions in Iran will come from the country’s National

Petrochemical Co.

Asia will also see major additions by 2020, led by India

and China, which are adding about 6.2-million t/y of ammonia

capacity with an investment of $4.07-billion.

A majority of the $1.39-billion capacity additions in Africa

will be located in Nigeria. Ammonia capacity will be

increased by about 4.2-million t/y in 2017. Dangote Group

will account for the major ammonia projects in the country.

In Europe, most ammonia projects will be located in

Russia and will add about 3.5-million t/y of capacity by

2018. Total cost of the projects is estimated at $2.05-

billion.

Finally, Brazil plans to spend $1.17-billion to add approximately

1.7-million t/y of ammonia capacity, which is

scheduled to come on stream by 2020.

For more information on the report, phone GlobalData

at 44 (0) 161-359-5822 or email pr@globaldata.com.

 

Obama Signs Chemical Safety Act into Law To Reform Toxic Substances Control Act

Washington–President Barack Obama has signed into law the bipartisan

Frank R. Lautenberg Chemical Safety for the 21st

Century Act, legislation to reform the 40-year old Toxic

Substances Control Act (PCN, 13 June 2016, p 2).

Under the new law, chemical evaluation and regulation

will meet new 21st century standards, which will improve

the lives of American families, support American manufacturing

and bolster U.S. economic growth, according to

American Chemistry Council President and Chief Executive

Cal Dooley.

 

Cryogenmash to Supply Nitrogen Unit For Socar Polymer’s HDPE, PP Plant

Baku—Cryogenmash

will build a nitrogen unit for Socar Polymer’s highdensity

polyethylene (HDPE) and polypropylene (PP) project

under construction at the Sumgait Chemical Industrial

Park in Azerbaijan (PCN, 2 May 2016, p 3).

A cooperation agreement for the nitrogen unit was

signed between the State Oil Co. of Azerbaijan Republic

(Socar) and Gazprombank, the largest shareholder in Cryogenmash.

Socar Polymer, a venture of Socar, Pasha Holding, Azersun

Holding and Gilan Holding, plans to commission the

120,000-t/y HDPE unit and 180,000 t/y PP plant in 2018.

 

PetroChemical News Briefs

Lukoil is in discussions with Shell and Total for a

petrochemical complex in Iraq, reported the Russian news

agency Tass. “The Iraqi side supports our efforts,” said the

report citing Lukoil President Vagit Alekperov. No specific

details were given.

Wison Engineering has begun construction on its

first engineering, procurement and construction project on

site in Abu Dhabi, the United Arab Emirates. The project

is part of the ethylene plant expansion of a “leading provider

of innovative, value creating plastics solutions,”

Wison said, without disclosing the company’s name. Mechanical

completion is expected in October 2017.

Rabigh Refining and Petrochemical Co. has initiated

a precautionary shutdown of its ethane cracker following a

fault in a turbine generator. A technical evaluation is being

done ahead of the necessary repair and maintenance

operations and restart of the unit. Financial impact of the

shutdown is also being evaluated. Further developments

will be announced as they occur.

ONGC Petro additions (OPaL) may sell up to a 25%

stake in the company, according to Indian reports. The

company is in talks with petrochemical companies for the

sale. OPaL is a joint venture of ONGC, Gail and Gujarat

State Petroleum Corp.

Trinseo has broken ground for new research and development

facilities in Terneuzen, the Netherlands, to increase

collaboration and innovation, the company said.

Covestro has launched its carbon dioxide (CO2)-

based products under the brand name cardoyn. The company

said it will soon begin operations at the first production

plant for CO2-based polyether polyols at its site in

Dormagen, Germany (PCN, 20 June 2016, p 3).

Lotte & Axiall JV Begins Construction On Lake Charles Chemical Complex

Lake Charles—LACC LLC, a joint venture of Lotte Chemical and Axiall

Corp., has broken ground on a $3-billion chemical manufacturing

project in Lake Charles, La. (PCN, 21-28 Dec

2015, p 2).

The project includes an ethane cracker with the capacity

to produce 1-million-t/y of ethylene, to be shared

equally by the partners. The cracker will provide partial

backward integration for Axiall’s vinyls business and will

supply an adjacent 700,000-t/y monoethylene glycol (MEG)

plant being built by Lotte, which is expected to be the largest

MEG plant in the U.S., according to Louisiana Economic

Development’s website.

“Among Korean petrochemical companies, Lotte Chemical

is the first to locate a project in the United States; as

such, this project represents a significant investment by

Lotte chemical,” said Soo Young Hoo, president and chief

executive of Lotte.

CB&I will execute the main steam cracker contract, using

its proprietary technology, following successful completion

of front-end engineering and design, and other earlystage

engineering works.

Louisiana has offered the companies an incentive package

that includes a Modernization Tax Credit of $4.55-

million for the ethane cracker. The projects will receive

Economic Development Award Program incentives of

$700,000 for the cracker and $1.47-million for the MEG

facility to pay for site infrastructure improvements. In

addition, the companies are expected to utilize the state’s

Quality Jobs and Industrial Tax Exemption programs.

 

Unipetrol Once Again Becoming Owner Of Czech Chemical Producer Spolana

Prague—Unipetrol has concluded a share purchase contract with Anwil,

under which Unipetrol will acquire Czech polyvinyl chloride

and fertilizer producer Spolana, which Anwil bought

from Unipetrol in 2006 (PCN, 27 June 2011, p 2).

Unipetrol noted that the €1-million acquisition will enable

the group to better plan and optimize the production

function, make it more resilient to external conditions and

prepare for the planned start-up of its PE3 installation,

expected in mid-2018 (PCN, 13 June 2016, p 2).

The PE3 facility, on which construction recently began,

will have the capacity to produce 270,000 t/y of highdensity

polyethylene.

“We see the acquisition of the Spolana company as a

very important step for further improvement of management

and coordination of our value chain, namely with regard

to the utilization of the steam cracker,” said Unipetrol

Chief Executive Marek Świtajewski. “Takeover of Spolana

opens up additional possibilities to further strengthen and

integrate Unipetrol’s position in the Czech Republic.”

Spolana, headquartered in Neratovice, is a major consumer

of ethylene, Unipetrol noted, adding that Unipetrol

and Spolana are both connected with the Litvinov-

Neratovice pipeline system for product deliveries.

 

Westlake, Axiall Sign Definitive Agreement For the Acquisition of Axiall by Westlake

Houston—Westlake Chemical and Axiall Corp. have entered into a

definitive agreement, under which Westlake will acquire

all outstanding shares of Axiall for $33 per share in an allcash

transaction (PCN, 13 June 2016, p 1).

The combination, valued at approximately $3.8-billion,

was unanimously approved by the board of directors of

both companies. Subject to approval by Axiall stockholders

and customary closing conditions, including the applicable

waiting period under the Hart-Scott Rodino Antitrust Improvements

Act, the sale is expected to be completed by the

fourth quarter of this year.

“We believe this strategic combination will drive significant

value for our customers and business partners as we

create a North American chlorovinyls leader with a highly

integrated chain, diverse product portfolio and a globally

competitive cost structure,” said Axiall President and Chief

Executive Timothy Mann Jr.

The combined company will be “the third largest” chloralkali

producer and “the second largest” polyvinyl chloride

producer in North America, with expected combined pro

forma revenues of $7.6-billion, the companies noted.

As part of the agreement, Westlake will withdraw its

nomination to replace Axiall’s board with nine independent

directors.

 

Jacobs Awarded Engineering Contract For Sahara’s Jubail Petchem Plants

Jubail—Jacobs Engineering Group has been awarded a three-year contract

from Sahara Petrochemicals to provide general engineering

services at Sahara’s chemical facilities in Jubail Industrial

City, Saudi Arabia.

Specifically, Jacobs will provide engineering, procurement,

construction supervision, project management, precommissioning

and commissioning support to a range of

small- to medium-sized capital projects for Sahara’s propane

dehydrogenation, polypropylene, chlor alkyl, ethylene

dichloride and peripheral utilities operating units.

 

Honeywell UOP Opens Production Line For Catalysts at Shreveport Facility

Shreveport—Honeywell UOP has started up a new $150-million production

line at its catalyst manufacturing facility in Shreveport, La.

The new line will allow Honeywell UOP to produce a

new range of catalysts for hydroprocessing and meet the

industry’s increased demand for hydroprocessing catalysts.

With the new line, and other investments at the site,

the Shreveport plant will now “be able to produce catalysts

in less time, while keeping inventories lower,” the company

said, noting that most of the plant’s production is exported.

The Shreveport facility produces catalysts that can be

used in Honeywell UOP’s Oleflex, isomerization and hydroprocessing

processes, and for processing naphtha.

 

Technip Acquires Hummingbird Technology From BP to Convert Ethanol-to-Ethylene

Paris—Technip has completed the acquisition of Hummingbird

ethanol-to-ethylene technology from BP Chemicals for an

undisclosed amount.

The process converts a wide range of ethanol feedstocks

to ethylene through dehydration, and can be easily integrated

into existing ethylene facilities, Technip noted.

“This acquisition progresses Technip’s onshore strategy

to add process technologies that differentiate us and bring

value to our customers,” said Stan Knez, president of

Technip Stone & Webster Process Technology. “Hummingbird

allows us to offer customers an alternative

method to produce sustainable products from bio-based

materials while expanding our technology positions in ethylene-

derived chemicals and plastics such as PE [polyethylene],

EB/SM [ethyl benzene/styrene monomer] and PET

[polyethylene terephthalate],” he added.

Hummingbird is available for license through Technip’s

center in Milton Keynes, UK. Ongoing catalyst development

will be provided by the Technip Research Center in

Weymouth, Mass.

Technip noted that acquiring Hummingbird builds on

its long-standing purified terephthalic acid (PTA) alliance

with BP, “one of the largest PTA producers in the world.”

 

Felda, Newlight & Innogas Drop Plans To Explore Palm Oil Waste-to-Plastic

Kuala Lumpur–Felda Global Ventures (FGV), Newlight Technologies and

Innogas Technologies are terminating a memorandum of

understanding (MoU) the parties signed last year to produce

biodegradable plastics from palm oil biomass waste in

Malaysia (PCN, 4 Jan 2016, p 4).

FGV’s board of director’s said that the companies were

unable to reach acceptable agreement terms, and thus had

taken steps to terminate the MoU. There will be no financial

impact from the decision.

Last December, the parties agreed to convert biogas

from FGV’s palm oil mills into thermoplastics, using Innogas’

technology.

 

Dow Receives First Trading License From the Kingdom of Saudi Arabia

Riyadh—Dow Chemical said it has become the first company to receive a

trading license from the Saudi Arabian government, allowing

100% ownership in the country’s trading sector.

Saudi Arabia recently approved the issuance of trading

licenses to companies outside the Kingdom in alignment

with the country’s strategy to diversify its economy and

address challenges brought by lower global energy prices.

The licenses are expected to create additional employment

opportunities in the country, with a particular focus

on improving women’s participation in the workforce.

Dow, the largest foreign investor in Saudi Arabia, currently

has 500 employees there.

“Dow has been a strategic partner in Saudi Arabia for

nearly 40 years and we look forward to playing a key role

in helping advance the Saudi’s Vision 2030 plan, designed

to create a vibrant society and a thriving diversified economy,”

commented Dow Chairman and Chief Executive Andrew

N. Liveris.

 

S2G Achieves Commercial Production Of Sugar-Based Glycols from Waste

Memphis—Vancouver-based S2G BioChemicals Inc. has successfully initiated

commercial production of sugar-based glycols from

natural, non-food waste at the site of its operating partner,

Pennakem, in Memphis, Tenn.

S2G’s proprietary process was integrated into Pennakem’s

existing chemical facility in April 2016 and has

produced industrial-grade bio-based glycols during a fiveweek

scale-up. The glycols will be used as a drop-in replacement

for common petroleum-based chemicals currently

being used. Production capacity was not given.

“While glycol supply has long been dominated by oil and

natural gas, S2G has proven our ability to provide natural,

fossil-free glycols that challenge petrochemical glycols on

both cost and performance,” noted S2G President and Chief

Executive Mark Kirby.

S2G said it also achieved successful product evaluations

by several industrial customers; the sale of bio-glycols to

an industrial resin plant; and, the production of sample

quantities of United States Pharmacopeia (USP) quality

propylene glycol that has been reserved for select glycol

customers who has shown interest in sourcing high-quality

bio-glycols as a replacement for their petrochemicalderived

sources.

 

Methanex, Petrobras to Settle Dispute Relating to Gas Delivery Obligations

Vancouver—Methanex, via its Methanex Chile subsidiary, has reached

an agreement with Petrobras Argentina to settle a legal

dispute in relation to Petrobras’ natural gas delivery obligations

to Methanex.

Petrobras has agreed to pay a lump sum of $32.5-

million to Methanex in order to terminate both a long-term

natural gas supply agreement between the two companies

and any and all claims related to the agreement.

 

Kuraray Building Ulsan PVB Film Unit

Ulsan—Kuraray has broken ground on a new polyvinyl butyral

(PVB) film production plant in Ulsan, S. Korea, according

to Yonhap News Agency.

Construction on the new $50-million facility is expected

to be completed by the end of next year. No other details

were available.

The project is part of the company’s plan to make the

Ulsan plant a production hub for entry into the Asian market,

the report said.

 

People on the Move

Pemex—Luis Rafael Sanchez Montanaro has been appointed

chief executive of the company’s ethylene production

subsidiary Pemex Etileno. He had been manager of

Pemex’s Morelos petrochemical complex and deputy director

of petrochemical planning.

Rashtriya Chemicals and Fertilizers Ltd.—Manoj

Mishra, chairman and managing director of National Fertilizers

Ltd., has taken over the additional roles of chairman

and managing director of Rashtriya, effective immediately.

He succeeds R. G. Rajan.

 

Wison’s Olefin Separation Technology Achieves ‘Highest’ Recovery Globally

Shanghai—

Wison Engineering said it has achieved the “highest” olefin

recovery in the industry worldwide at Shandong YangMei

Hengtong Chemicals Co.’s new methanol-to-olefins plant in

China (PCN, 23 Feb 2015, p 1).

Wison was responsible for the olefin separation technology,

procurement of equipment and materials, construction

and project management of the 300,000-t/y facility, which

it handed over to YangMei in February 2015 and has been

operating steadily for 10 months.

During a 72-hour performance test, the plant maintained

stability running at full capacity. The product recovery

of ethylene and propylene reached 99.89% and

99.96%, respectively, higher than the guaranteed value,

Wison noted. Energy consumption was also above the

guaranteed requirement.

 

SCG Plans to Invest in New HVA PE Grade; Production Aimed to Begin by Year-End

Bangkok—Siam Cement Group’s SCG Chemicals subsidiary plans to

invest in a new grade of high value added (HVA) polyethylene

(PE), with commercial production beginning by the

end of the year, reported the Bangkok Post, citing SCG

President Chonlanat Yanaranop.

SCG plans to submit a proposal at next month’s board

meeting for the project, Chonlanat said. No other details

were given.

The company has budgeted 4-billion baht this year to

invest in segments highlighted by Thailand’s super-cluster

policy and another 6-billion baht to use towards maintenance

and new equipment.

 

Total’s Petrochemical Subsidiary Fined For ’09 Explosion at Carling Facility

Paris—Total’s

petrochemical subsidiary was found guilty by a French

court and fined $225,100 for an explosion at Total’s Carling

petrochemical plant in 2009, Reuters reported.

In July 2009, a steam generator exploded at the site

during the restart of the cracker, resulting in two deaths

and six injuries (PCN, 5 Oct 2009, p 1).

“The disrespect of the procedure by field operators is

the direct cause of the explosion but is not the sole and exclusive

cause,” the court said, adding that the explosion

would not have occurred if flame detectors had worked

properly.

 

EC Clears Proposed LNG Joint Venture Between Air Liquide and Russian OMZ

Brussels—The

European Commission (EC) has approved the proposed

creation of a liquefied natural gas (LNG) joint venture by

Air Liquide Global E&C Solutions France SA and OMZ, a

Russian heavy machine building company.

The venture will be active in the research and development,

design and engineering of natural gas liquefaction

technology, mainly in Russia. No other details were given.

The commission concluded that the proposed transaction

would raise no competition concerns because of the

negligible combined market shares of the companies in the

provision of LNG engineering services and the production

of cold boxes used in the liquefaction process.

 

Covestro Begins Using CO2 at Dormagen To Produce Polyols at Industrial Scale

Dormagen—Covestro has begun industrial scale production of a new

type of polyol made with 20% carbon dioxide (CO2) at its

Dormagen, Germany, site (PCN, 21-28 Mar 2016, p 4).

The company invested €15-million in the plant, which

has a production capacity of 5,000 t/y. The new polyol has

been engineered initially for flexible polyurethane foam

and has the same standards as conventional material produced

using only petrochemical raw materials.

“If the new CO2-based products are received as warmly

as is hoped, Covestro can envisage significant production

expansion,” the company said, adding that it is working on

producing many other plastics with CO2 and its “vision is

to one day largely dispense with crude oil in plastics production.”

 

Chevron Lummus Global Awarded Contract For Swedish Residue Upgrading Complex

Stockholm–

Chevron Lummus Global, a joint venture of CB&I and

Chevron, received a contract for the technology license and

design of a residue upgrading complex in Lysekil, Sweden,

from Beowulf Energy, who recently signed a cooperation

agreement with Preem for the project.

The contract involves the license of Chevron Lummus

Global’s LC-Slurry technology with integrated Isocracking

and ancillary units. Also, CB&I will develop a detailed

cost estimate and execution plan for the engineering, procurement

and construction phase of the complex.

A schedule for the project was not given, but Preem last

month said the analysis, detailing and permitting processes

is estimated to take two to three years.

 

Cabot Plans New Asia Technology Center; Will Include Application Innovation Lab

Shanghai—

Cabot Corp. plans to establish a new Asia Technology Center

in Shanghai, China, which will encompass an application

innovation laboratory to accelerate innovation and

applications development.

The new laboratory will be co-located at Cabot’s regional

headquarters and will feature state-of-the-art analytical

and application testing equipment. It will initially

house over 30 researchers and scientists, working together

with extended research teams throughout the company’s

global network.

 

BASF SE Reopens Office in Tehran

Tehran—BASF SE

has announced the reopening of its office in Tehran, Iran,

reported the Mehr News Agency.

The reopened office is expected to “accelerate and facilitate

the talks with BASF SE over investment and exports of

petchem products to Europe and Germany in particular,” said

the report quoting Kambiz Mirkarimi, commercial and executive

director of Iran’s Jam Polypropylene Co.

BASF signed a €6-billion memorandum of understanding

with Iran earlier this year for construction of a petrochemical

complex in Asaluyeh, that would involve the production

of ethylene in the first phase and various grades of

polyethylene in a second phase (PCN, 25 Apr 2016, p 3).

No new agreements have been signed between the parties,

the report said.

 

Sabic Joins Teesside Collective Network, UK’s ‘Leading’ Green Growth Initiative

Teesside—

Sabic has become a member of the Teesside Collective network,

the UK’s “leading” green growth initiative aimed at

reducing industrial carbon emissions and attracting investment

to the region, announced the Teesside Collective.

Following confirmation from the Dept. of Energy and

Climate Change of further funding for Teesside Collective’s

work, the cluster will scope out how carbon capture and

storage, carbon usage, hydrogen production and other technologies

could reduce carbon emissions from industrial

processes.

Sabic noted that it operates the “world’s largest” carbon

dioxide (CO2) utilization plant in Saudi Arabia, which currently

compresses 1,500 t/d of raw CO2 from its glycol

plants to make urea and methanol.

“Sabic’s recent work on carbon re-use in Saudi Arabia

has shown us first-hand the feasibility of Teesside Collective’s

vision and the benefits that realizing income streams

can bring,” said John Bruijnooge, site director of Sabic’s

Teesside operations.

The group of companies involved in the project include

Lotte Chemical UK, BOC, CF Fertilisers, Sembcorp Utilities

UK, Tees Valley Unlimited and Nepic.

 

Technip & FMC Execute Agreement For Planned Business Combination

Paris—Technip

and FMC Technologies have signed a business combination

agreement (BCA) regarding their proposed merger (PCN,

23 May 2016, p 3).

The companies signed a memorandum of understanding

(MoU) last month to combine in an all-stock merger valued

at $13-billion. Under the MoU, Technip shareholders will

receive two shares of the new company for each share of

Technip, and FMC shareholders will receive one share of

the new company for each share of FMC.

Each company’s shareholders will own close to 50% of

the combined company, which will be called TechnipFMC.

Subject to approval of Technip and FMC’s shareholders,

regulatory approvals, and other customary closing conditions,

the transaction is expected to close early next year.

“With the signing of the BCA, we have reached an important

milestone paving the way to building a unique offering,

driving change by redefining the production and

transformation in the oil and gas industry,” said Technip

Chairman and Chief Executive Thierry Pilenko, who will

serve as executive chairman of TechnipFMC.

 

Hexion Building New Analytical Lab At Technology & Business Center

Houston—Hexion is

building a new analytical laboratory at its Technology &

Business Center in Stafford, Texas, to support expanded

research and development (R&D).

The new laboratory will increase the size of the R&D

facilities at the site, accommodating the growing need for

chromatography, spectroscopy, rheology, microscopy and

materials characterization to support new product, process

and application development for the company’s Epoxy

Phenolic and Coating Resins and Forest Products Divisions.

Completion is expected by the end of the year.

“This new state-of-the-art facility will provide expanded

resources for our researchers for the Epoxy Specialties

business as well as other Hexion divisions,” said Scott Bastian,

business director, Epoxy Specialties Americas. “The

expansion will enable us to consolidate analytical instruments

and add new capabilities to increase efficiency and

capacity.” The facility will house the recently formed Analytical

& Materials Testing Group.

 

PetroChemical News Briefs

Lotte Group has postponed plans for an initial public

offering of shares in Lotte Chemical Titan, which could

have raised over $500-million, Bloomberg reported. The

decision was due to widening investigations into alleged

slush funds and embezzlement at Lotte.

Dow Chemical plans to invest 2.3-billion baht to set

up its first analytical technology center in Map Ta Phut,

Thailand, and increase production of rigid polyol, according

to the Bangkok Post. Construction of the polyol plant is

expected to start next year and commercial operations are

planned to begin in 2018. A capacity was not given.

Evonik will begin preparations for reopening its midmolecular

polyester facility in Mobile, Ala. The plant is

being revitalized and will have an annual capacity of “several

thousand metric tons,” the company said. Completion

is scheduled in 2018.

Dow and DuPont have each scheduled special meetings

of shareholders on 20 July to seek adoption of their

proposed merger agreement and approval of related matters

(PCN, 30 May 2016, p 2). The companies last year

agreed to combine in an all stock merger of equals, valued

at around $130-billion. The combined company will be

named DowDuPont. The transaction is expected to close in

the second half of 2016.

Albemarle has signed a definitive agreement to sell

its Chemetall Surface Treatment business to BASF for approximately

$3.2-billion. Subject to regulatory approvals

and other customary closing conditions, the transaction is

expected to close by the end of the year.

Shell Makes FID to Proceed with Plans For Pennsylvania Petrochem Facility

Pittsburgh—

Shell Chemical Appalachia (Shell) announced a final investment

decision (FID) to build a “major” petrochemical

complex at Potter Township in Monaca, Penn. (PCN, 29

June 2015, p 3).

The complex, earlier estimated to cost $2.5-billion, will

include an ethylene cracker and polyethylene (PE) derivatives

unit. Main construction will start in about 18

months, with commercial production expected to begin

early in the next decade.

Shell’s new complex will use low-cost ethane from shale

gas producers in the Marcellus and Utica basins to produce

about 1.6-million t/y of PE. Because of the close proximity

to gas feedstock, “the complex, and its customers, will

benefit from shorter and more dependable supply chains,”

compared to supply from the Gulf Coast, the company explained.

“Shell Chemicals has recently announced final investment

decisions to expand alpha olefins production at our

Geismar site in Louisiana and, with our partner CNOOC

[China National Offshore Oil Corp.] in China, to add a

world-scale ethylene cracker with derivative units to our

existing complex there,” said Graham van’t Hoff, executive

vice president for Royal Dutch Shell’s global chemicals

business.

Shell broke ground early this year for a new 425,000-t/y

linear alpha olefins (LAO) plant in Geismar, which will

increase LAO capacity at the site to over 1.3-million t/y

(PCN, 22 Feb 2016, p 1). Production is planned to begin in

early 2018.

The project with CNOOC involves completing construction

of a 1-million-t/y ethylene cracker and derivative units

in Huizhou (PCN, 4 Apr 2016, p 2). Completion is expected

in about two years.

 

Commission Clears Ineos’ Acquisition Of Sole Control Over Inovyn Venture

Brussels—The

European Commission has approved Ineos’ acquisition of

sole control over its 50-50 Inovyn chlorovinyls joint venture

with Solvay (PCN, 9 May 2016, p 1).

Inovyn was formed in 2015 to combine the European

polyvinyl chloride, caustic soda and chlorine derivatives

businesses of Ineos and Solvay. At formation, it was

planned that after three years Solvay would withdraw its

interest in Inovyn, making Ineos the sole owner.

The companies recently signed a binding agreement to

end their joint venture ahead of the original July 2018

schedule. Upon completion of the transaction, expected in

the second half of this year, Solvay will receive a final payment

of €335-million.

Last month, Solvay announced that it had signed a definitive

agreement to sell its 70.59% interest in Solvay Indupa

to Unipar Carbocloro for $202.2-million. The sale is

subject to customary closing conditions and approvals.

Solvay’s divestitures are part of a plan to transform into

a specialty chemicals group.

 

Lotte Chem Makes Offer to Acquire Axiall; Westlake Continues Takeover Attempts

Atlanta—

Lotte Chemical, joint venture partner with Axiall Corp. in

an ethane cracker project, has submitted a proposal to acquire

Axiall for an undisclosed amount.

Axiall Chief Executive Timothy Mann Jr., in a letter

dated 7 June to Axiall employees, said: “As I have shared

previously, our board is open to considering strategic alternatives

for Axiall in addition to continuing as a stand-alone

company. Our board is willing to consider all alternatives

that deliver full and fair value for all stockholders. At this

time, our board has not made any decisions concerning the

Lotte offer.”

Since the beginning of 2016, Westlake Chemical has

been attempting to take over Axiall (PCN, 11 Apr 2016, p

2). Its original offer to acquire Axiall for $20 per share was

unanimously rejected by Axiall’s board.

In April, Westlake increased it proposal for all of the

outstanding shares of Axiall to $23.35 per share. Its offer

was again turned down by the Axiall board.

Westlake last month said it intended to submit a revised

proposal by 3 June 2016 and will continue to proceed

with its current proxy contest to replace Axiall’s board with

nine independent directors.

 

BASF Shelves FID On Proposed Freeport Natural Gas-Based Propylene Complex

Freeport—

BASF has postponed a final investment decision (FID) for

its proposed world-scale methane-to-propylene complex at

its site in Freeport, Texas (PCN, 23 Mar 2015, p 1).

The facility, planned to have a production capacity of

475,000 t/y of propylene, would be the “largest single-plant

investment to date,” the company earlier noted.

BASF attributed its decision to shelve the project to the

current volatility of raw material prices and the prevailing

economic environment.

“On-purpose production of propylene based on favorable

U.S. shale gas is interesting for BASF,” said Wayne T.

Smith, member of the board of executive directors. “We

will regularly review the development of raw material

prices and the relevant market conditions to determine the

right point in time to commence such a major investment.”

 

SK Advanced Begins Commercial Production At New Joint Venture PDH Plant in Korea

Ulsan—

SK Advanced Co. has begun commercial operations at its

new 600,000-t/y propane dehydrogenation (PDH) facility in

Ulsan, South Korea (PCN, 21-28 Mar 2016, p 1).

The plant, which required an investment of approximately

$1-billion, ran “safe and stable at design capacity

for one full month,” after successfully completing performance

tests on 13 April, and on 14 May began commercial

production, SK Advanced said.

SK Advanced is a joint venture of SK Gas, Advanced

Petrochemical’s Advanced Global Investment Co. and Kuwait

Petroleum Corp.’s Petrochemical Industries Co.

 

Unipetrol Breaks Ground on PE Facility At Existing Czech Republic Complex

Litvinov—

Unipetrol has begun construction on a new 270,000-t/y

high-density polyethylene plant (PE3) at its existing complex

in Litvinov, Czech Republic (PCN, 25 Apr 2016, p 1).

The 8.5-billion CZK facility, based on Ineos’ Innovene S

technology, will be “among the most advanced production

facilities of its kind in Europe,” the company noted. Construction

is expected to be completed in mid-2018.

“The new polyethylene unit will push Unipetrol into the

group of European leaders in terms of plastic production

quality and enable the company to reach more industrial

sectors,” said Marek Świtajewski, chief executive and

chairman of the board of directors.

Technip is the engineering, procurement and construction

contractor for the PE3 facility, which will replace the

older PE1 unit. The 200,000-t/y PE2 unit will continue

operating.

 

U.S. Senate Passes Legislation to Reform 40-Yr Old Toxic Substances Control Act

Washington—

The U.S. Senate on 7 June passed the bipartisan Frank R.

Lautenberg Chemical Safety for the 21st Century Act (H.R.

2576), legislation to reform the 40-year old Toxic Substances

Control Act (TSCA).

“This legislation is significant not only because it is the

first major environmental law passed since 1990, but because

TSCA reform will have lasting and meaningful benefits

for all American manufacturers, all American families

and for our nation’s standing as the world’s leading innovator,”

said American Chemistry Council President and Chief

Executive Cal Dooley. “We look forward to the enactment

of H.R. 2576 by President Obama in the coming days.”

Commenting on the congressional passage of H.R. 2576,

Dow Chairman and Chief Executive Andrew N. Liveris

noted that this “landmark legislation will fundamentally

reform our nation’s chemical regulatory program, restore

confidence in the safety of chemicals and provide companies

like Dow with the regulatory certainty necessary to

drive investment.”

For more information on H.R. 2576, visit the U.S. Congress’

website at https://www.congress.gov/bill/114thcongress/

house-bill/2576.

 

JG Summit Planning Feasibility Study On Expanding Batangas PC Capacity

Manila—JG

Summit Holdings will conduct a feasibility study on the

potential expansion of its petrochemical facility in Batangas,

the Philippines, according to Business World, citing

Lance Y. Gokongwei, JG Summit’s president and chief operating

officer.

“We’re planning to spend $500-million to $600-million

in expanding our petrochemical operations. This will require

us to expand the cracker, build further downstream

for butadiene and aromatics stream,” Gokongwei noted.

JG Summit expects to expand the capacity of the petrochemical

plant at Batangas to 500,000 t/y from 320,000 t/y

by 2019.

In 2014, JG Summit started up the Philippines’ first

naphtha cracker at Batangas, which was designed to produce

320,000 t/y of ethylene and 190,000 t/y of propylene

(PCN, 16 June 2014, p 1).

 

Orion Engineered Carbons Considering Closure of French Carbon Black Plant

Paris—Orion

Engineered Carbons SAS is considering ending carbon

black production at its Ambès, France, site.

Management has begun consultations with the Works

Council at the site in order to implement a restructuring

and down-staffing with a potential discontinuation of carbon

black production by the end of the year.

“In order for the group to remain competitive in today’s

global marketplace, it must fully utilize the capabilities of

its carbon black operations, concentrating resources at

more efficient facilities and those capable of producing

technically special and unique grades that can compete in

today’s challenging environment,” said Jack Clem, Orion’s

group chief executive.

If production is discontinued at Ambès, the facility will

be deactivated simultaneously with the depletion of existing

capacity.

 

Borealis Plans €40-Million Investment To Upgrade Porvoo Steam Cracker

Porvoo—Borealis

is investing €40-million in an upgrade of its steam cracker

at Porvoo, Finland, to increase propylene production capacity

and enhance energy efficiency.

Scheduled for completion in the third quarter of 2017,

the project will increase propylene production capacity by

30,000 t/y and crude C4 capacity by 10,000 t/y.

“The project will also upgrade the quality of all produced

propylene to polymer grade, thereby increasing

value as well as productivity in the adjacent polypropylene

production plant,” Borealis said.

“Through continuous investments, Borealis is securing

its position among the most innovative and reliable polyethylene

and polypropylene suppliers in Europe,” noted

Markku Korvenranta, executive vice president of base

chemicals.

 

KP Engineering Completes Acquisition Of Consulting & Design Firm MPEC

Houston—Engineering,

procurement and construction solutions company

KP Engineering has completed the purchase of McDaniel

Process Engineering Consultants, a chemical engineering

consulting and design firm in Houston, Texas.

KP said the acquisition will enhance its expertise in

petrochemical process engineering, refining and midstream,

particularly fractionation applications. Value of

the transaction was not disclosed.

 

People on the Move

Lubrizol Corp.—Eric R. Schnur has been named

president, effective immediately, and will become chairman

and chief executive on 2 Jan. 2017, to succeed James L.

Hambrick, who is retiring. Schnur has been serving as

executive vice president and chief operating officer.

Nexam Chemical—Johan Arvidsson, most recently

chief executive of aXichem AB, will join Nexam as chief

sales officer, effective 1 Aug. 2016.

Thyssenkrupp—P. D. Samudra has been appointed

chief executive of Regional Cluster India for Thyssenkrupp

Industrial Solutions. He has been managing director.

 

Sasol Says Louisiana PC Project Cost Could Increase to About $11-Billion

Lake Charles—

Sasol announced that the total capital expenditure of its

Lake Charles, La., ethane and derivatives project could

increase up to $11-billion from $8.1-billion (PCN, 14 Mar

2016, p 1).

The project includes a 1.5-million-t/y ethane cracker

and downstream production of low- and linear low-density

polyethylene, ethylene oxide and ethylene glycol. It also

includes three smaller, higher-value derivative units for

the production of specialty alcohols, ethoxylates and other

products.

This past March, Sasol said it would conduct a detailed

review of the project, after deciding to pace the execution of

the project to support the company’s low oil price response

plan. The increased project cost was from a preliminary

finding from the ongoing review, which is planned to be

completed during the third quarter of 2016.

The company noted that current indications are that

the estimated increase is mainly caused by construction

delays from rainfall, higher labor costs, lump-sum bid contract

prices being higher that originally estimated, as well

as quantities of bulk materials being in excess of those included

in the original estimate.

As of 30 Apr. 2016, project completion has progressed to

over 40%. The cracker is expected to achieve beneficial

operation in the second half of 2018, which will enable

around 80% of the total output from the project to reach

beneficial operation in late 2018 or early 2019. Remaining

volumes from the other derivative units will become operational

by the second half of 2019, Sasol said.

 

Alberta’s PCs Diversification Program Receives Significant Investor Interest

Calgary—

Alberta’s new Petrochemicals Diversification Program,

which encourages companies to invest in the development

of new local petrochemical plants through C$500-million in

royalty credits, has received “roughly double” the amount

of applications expected.

On 1 Feb. 2016, companies were invited to apply for up

to C$200-million in royalty credits for a single project, with

credits being awarded following completion of the project

and start of production (PCN, 8 Feb 2016, p 4). Applications

to the program closed 22 Apr.

Each application will be evaluated by a third-party

monitor to ensure the proposed project is economically viable,

meets Alberta’s strict environmental performance

conditions and demonstrates the best overall benefits to

Alberta. Final decisions will be made within 60 days from

6 June 2016.

The program is expected to create up to 3,000 jobs during

construction and over 1,000 jobs once operation begins.

 

BASF Boosting Production Capacities At German UV/EB Acrylates Plants

Ludwigshafen—

BASF said it is “significantly” increasing its production

capacities for Laromer UV/EB (ultraviolet/electron beam)

acrylates at existing production units at its Ludwigshafen,

Germany, site.

The additional capacities will be available as of the

third quarter of this year and will help BASF respond to

the rising demand for high-quality UV/EB acrylates.

 

Global Bioenergies & IBN-One Get Funds For Commercialization of Bioisobutene

Paris—Global

Bioenergies and IBN-One, a joint venture of Global Bioenergies

and Cristal Union, have been approved to receive

€9-million in funding by the Investissements d’Avenir program

for the commercialization of bio-based isobutene

(PCN, 27 July 2015, p 2).

Global Bioenergies, Cristal and L’Oréal have launched

a 44-month industrial and commercial project focused on

the first bioisobutene plant in France, which will use

Global Bioenergies’ process to produce isobutene from renewable

resources.

“The process is now entering a new phase of development:

step by step, we are leading up to our targeted performance,

and we are getting ready to run the process in

our demo plant, whose construction in Germany will be

completed within the next few months,” said Global Bioenergies

Chief Operations Officer Frédéric Pâques.

Global Bioenergies is the project coordinator, mainly responsible

for completing the industrial development of the

process, and may receive up to €5.7-million. IBN-One may

receive €3.3-million, which will mostly be dedicated to life

cycle analyses, engineering design work in the French

plant and market value validation of derivatives intended

for the fuels, materials and cosmetics.

The new commercial plant is now entering the detailed

engineering phase and is expected to begin operations in

2019. It will have a capacity of 50,000 t/y. CO2 emissions

will be reduced by more than twice the amount of isobutene

produced, noted Bernard Chaud, chief executive of

IBN-One.

Cristal is working on the supply of sugar beet substrates

and preparing the integration of the future production

unit into one of its sites.

“This project is developing in the context of the impending

end to sugar quotas, which is inspiring the entire

European beet growing industry to identify additional outlets,”

said Xavier Astolfi, deputy chief executive of Cristal.

L’Oréal will test batches of compounds from the bioisobutene

and may become a customer of IBN-One once the

operations begin.

 

Siluria, Air Liquide Partner to Develop Novel Catalytic Process Technologies

San Francisco–

Siluria Technologies and Air Liquide Global E&C Solutions

have entered into a strategic partnership to collaborate on

the development of novel catalytic processes using both

companies’ expertise in gas conversion technologies.

The new process offering will be developed using the

same platform as Siluria’s Oxidative Coupling of Methane

(OCM) technology, but will be focused on new fields beyond

the companies’ current product offerings. The partners

will work together in the commercialization, licensing and

marketing of the new process technologies.

As part of the agreement, Air Liquide Global E&C Solutions

has invested in Siluria’s Series E financing.

“Global markets require compelling new solutions to

meet the ever changing demand for petrochemicals and

other energy products,” said Erik Scher, interim chief executive

and president of Siluria.

Siluria’s OCM technology is the first commercial process

to directly convert natural gas into ethylene. The company

last month said it has proven the commercial viability

of the technology (PCN, 16 May 2016, p 2).

 

Looming Retirement of ‘Baby Boomers’ Challenges N. American Companies

Washington—The

large number of retiring “baby boomers” in the next three

to five years, combined with a shortage of experienced

workers, could cause challenges for North American

chemical companies, if not resolved, said a new survey by

Accenture and the American Chemistry Council (ACC).

These workforce turnover issues could mean more unplanned

operations disruptions, more hiring and training

costs and more efforts to maintain safety.

Of the chemical companies surveyed, 86% agree that if

the aging workforce issue is not resolved in the next three

to five years, the chemical industry’s profitability will suffer

significantly at a time when industry expansion is expected

to continue in North America.

Only about 25% of North American chemical companies

retained 90% or more of their millennial employees hired

in the past three years. Most saw a 30% to 50% attrition

rate among millennials, said the survey, noting a new Accenture

strategy study that shows new university graduates

expect to stay on the job for more than three years.

“Abundant supplies of domestic natural gas from shale

have moved the U.S. from being a high-cost producer of key

petrochemicals and resins to among the lowest cost producers

globally, creating a period of unprecedented

growth,” stated ACC President and Chief Executive Cal

Dooley.

“We currently have more than 262 new chemical projects

announced that are valued at over $161-billion. For

the first time in more than a decade, the U.S. chemical industry

is once again creating good, high-paying American

jobs and it’s vital that we be able to attract and retain a

talented workforce that helps us continue to drive economic

expansion, innovation, and global competitiveness,”

he added.

“We must not only hire the right people as older workers

retire and transfer their knowledge to a younger work

force, we must bridge the gap with millennials and get

them excited about what we do with chemistry, as we develop

new products to meet the needs of their generation,”

noted Inga Carus, ACC board member.

New technologies are also challenging the industry,

however, “60% of chemical companies said they are adapting

to digital technologies, but with some resistance,” commented

David Yankovitz, managing director and chemical

practice lead for Accenture. “They also recognize a greater

need to embrace digital technologies to gain a competitive

advantage. So as the industry overcomes this resistance . .

. , success will come in many areas.”

 

Jindal Poly Films Extends Completion Date Of BOPP Capacity Boost for Europe, U.S.

New Delhi—

Jindal Poly Films Ltd., in its recent earnings conference

call, said a new biaxially oriented polypropylene (BOPP)

line at its sites in Brindisi, Italy, and LaGrange, Ga., will

be complete by mid-2017 (PCN, 21-28 Dec 2015, p 3).

The new lines, originally scheduled for completion by

the fourth quarter of 2016, will each add 60,000 t/y of

BOPP capacity at the sites. Jindal is also increasing metallizing

and extrusion capabilities at the sites.

Also, the company said an additional BOPP line in India

is complete and likely to be operational in the next two

months, adding 41,000 t/y of capacity.

There are no plans to expand biaxially oriented polyethylene

terephthalate capacity, Jindal noted.

 

TCEQ Issues Trecora Resources Permit To Build, Operate New Reformer Unit

Sugar Land—

Trecora Resources has received a construction and operating

permit from the Texas Commission on Environmental

Quality (TCEQ) for a new 4,000-b/d reformer unit at its

South Hampton Resources (SHR) subsidiary in Silsbee,

Texas (PCN, 7 Dec 2015, p 4).

Utilizing Chevron Phillips Chemical Co.’s Aromax Process,

the new unit will support the recently completed DTrain

expansion. Cost of the project is estimated between

$45-million to $50-million. Construction will begin immediately

with completion expected in the second quarter of

next year.

The unit will produce a “significantly higher value byproduct

stream compared with our existing reformer,” said

Trecora President and Chief Executive Simon Upfill-

Brown. “In addition, the new reformer will provide a secure

and reliable source of hydrogen for SHR’s high purity

pentane production and custom processing activities.”

Trecora expects the Aromax Process benzene, toluene

and xylene by-product stream to be sold well above feedstock

costs, unlike recent quarters, where by-product volume

was sold at average prices below feedstock cost, significantly

impacting gross margins, Upfill-Brown noted.

 

Amec Foster Wheeler Gets Contract For LNG Terminal In Tamil Nadu

Chennai—Amec

Foster Wheeler has been awarded a contract by Indian Oil

LNG Private Ltd. for a liquefied natural gas (LNG) terminal

in Ennore, Tamil Nadu, India.

Amec Foster Wheeler’s scope of work includes supervision

of works related to various engineering, procurement

and construction contracts for the LNG regasification and

marine import facilities, as well as the LNG storage tanks.

Included in Amec Foster Wheeler’s contract is responsibility

for project management consultancy activities for the

entire project, from engineering development and construction

phases, through to pre-commissioning, commissioning

and start-up.

The contract, which will be delivered at the end of 2018,

follows the successful completion of a front-end engineering

and design contract for the terminal in 2012.

IFC Investing $25-Million to Support Carbon Holdings’ PC Capacity Boost

Washington—

International Finance Corp. (IFC), a member of the World

Bank Group, has decided to invest $25-million in the expansion

of Carbon Holdings’ petrochemicals capacity.

Carbon Holdings late last year entered into a partnership

with French asset management firm Lazard to attract

about $3-billion in financing for Carbon Holdings’ Tahrir

petrochemical project in Ain Sokna, Egypt (PCN, 14 Sept

2015, p 3).

The project, estimated to cost $7-billion, includes a

1.36-million-t/y ethylene facility, three 450,000-t/y polyethylene

plants, a 350,000-t/y polypropylene unit and a

400,000-t/y ethylbenzene/styrene monomer facility.

“We look forward to partnering with IFC and tapping

the potential for Egypt’s chemicals sector to grow and

make a meaningful contribution to job creation and tax

revenues in a country where unemployment is very high,”

said Carbon Holdings Chief Executive Basil El Baz.

 

Sabic Enters Agreement with SNCG To Potentially Develop PC Complex

Ningxia—Sabic

signed a project development agreement with Shenhua

Group’s Shenhua Ningxia Coal Industry Group (SNCG)

subsidiary for a proposed greenfield petrochemical complex

in Ningxia, China, using local coal feedstocks.

The partners will conduct a feasibility study on the project

within three years, starting 30 May 2016. Subject to a

positive outcome, they will submit the necessary paperwork

to obtain project approval from China’s National Development

and Reform Commission.

“This project reflects our enthusiasm to diversify our

sources of feedstock, paving the way for further investment

opportunities that depend on different and untraditional

sources of feedstock,” said Yousef Al-Benyan, Sabic vice

chairman and chief executive. “This protects Sabic against

the fluctuations and cyclical movements in feedstock price

in the international markets, which helps ensure a profitable

growth strategy.”

Once all government approvals are received and a final

investment decision is made, the partners will proceed

with further actions to implement the project.

 

S-Oil Breaks Ground on RUC & ODC At Onsan Refinery in South Korea

Ulsan—S-Oil has

broken ground for its residue upgrading complex (RUC)

and olefin downstream complex (ODC) at its Onsan refinery

in Ulsan, S. Korea, reported the Korea Herald.

The project, valued at about $4-billion, involves construction

of a plant to upgrade low-value residue oil to

high-value gasoline and propylene (PCN, 25 Apr 2016, p 1).

The propylene will be used for the production of 405,000 t/y

of polypropylene and 300,000 t/y of propylene oxide. Completion

is planned in the first half of 2018.

 

YPFB Selects Spheripol PP Process For New $2.2-Bn Project in Bolivia

La Paz—Bolivia’s

Yacimientos Petroliferos Fiscales Bolivianos (YPFB) has

selected LyondellBasell’s Spheripol polypropylene (PP)

technology for a new $2.2-billion propylene and PP facility

in Tarija, Bolivia (PCN, 9 May 2016, p 1).

The project, on which construction is planned to start

next year, will have the capacity to produce 250,000 t/y of

PP. Operations are scheduled to begin in late 2021.

“We selected the Spheripol process for Bolivia’s first

polymer plant because of its superior economics, proven

track record and broad product slate,” said Mario Salazar

Gonzales, YPFB’s petrochemical plants manager.

The Central Bank of Bolivia has granted a $1.8-billion

credit for the project.

 

Maire Tecnimont, Siluria Agree to Develop Natural Gas Based Technologies for PCs

Rome—

Maire Tecnimont and Silura Technologies have entered

into a collaboration agreement to jointly develop new natural

gas based technologies for petrochemical markets.

Under the agreement, the partners will combine their

respective technologies and expertise to bring to the marketplace

a unique process to convert natural gas directly

into commodity chemicals and their derivative products,

the companies explained.

“We are excited to expand our product portfolio by

teaming with Maire Tecnimont to enable a completely new

pathway to produce additional petrochemical derivatives

from natural gas,” said Erik Scher, interim chief executive

and president of Siluria.

“This new product offering will expand Siluria’s portfolio

beyond our current solutions focused on gasoline and

ethylene, to address an even larger share of the global petrochemical

and energy market,” he added.

Along with the signing of the collaboration agreement,

Maire Tecnimont has made a $10-million minority investment

in Siluria’s share capital through a Series E financing

round. Siluria has raised over $40-million in equity

through the Series E offering since last November.

 

Iran Inaugurates Mahabad PC Facility; Production to Include PE & Butane

Tehran—Iran on

31 May inaugurated the Mahabad petrochemical plant in

West Azerbaijan province, according to a report from

Shana on National Petrochemical Co.’s (NPC) website.

The plant will produce 300,000 t/y of linear low- and

high-density polyethylene (PE) and 30,000 t/y of butane.

The West Ethylene Pipeline will supply feedstock for the

new facility.

Last year, NPC said it would also commission new PE

plants in Kordestan and Lorestan provinces and a new 1-

million t/y ammonia and urea project in Fars province by

March 2016 (PCN, 1 June 2015, p 1).

 

Stepan Targets Mid-2016 Completion Of Polyester Polyol Boost in Poland

Warsaw—Stepan

Co. confirmed that an expansion of its polyester polyol facility

in Brzeg Dolny, Poland, will be completed in the middle

of this year.

The company added a new reactor to the facility, which

is required to support Stepan’s growth in the coatings, adhesives,

sealants and elastomers (CASE) business for its

European customers. No other details were given.

In addition, Stepan has completed a relocation of its

European research and development and technical center

to new laboratories in Wroclaw, Poland. The expanded

facilities, which include a wide range of test and production

equipment for Stepan’s customers with innovation and

technical development projects, will serve its business in

insulation foams and CASE.

“The completion of this expansion to our facilities in Poland

marks a significant milestone in our growth story

within the European polyester polyol industry,” said Roger

Stubbs, vice president, polymers Europe. “Together with

manufacturing and technical centers in the Americas and

Asia, Stepan is one of the leading suppliers of polyester

polyols around the world.”

 

Mitsubishi Chem Explores Options to Exit MCC PTA Manufacturing Joint Venture

Haldia—

Mitsubishi Chemical Corp. is considering exiting its purified

terephthalic acid (PTA) joint venture, MCC PTA India,

and selling a majority interest in the venture, reported the

Economic Times (ET) Now, citing sources familiar with the

company’s plans.

Mitsubishi Chemical “is looking at selling a majority

stake in the venture MCC PTA located in Haldia, West

Bengal, in which they hold 66%. The venture has incurred

losses in the past due to a difficult market environment

and the imports from China,” said one of the sources, adding

that Mitsubishi is in an “advanced stage of negotiations

with private equity firm The Chatterjee Group.”

Mitsubishi told ET that the company is considering

various measures, however, no decisions have been made.

In 2009, MCC PTA completed an expansion in Haldia,

increasing PTA capacity at the site to 1.27-million t/y

(PCN, 2 Nov 2009, p 1).

 

Petronas and JX Nippon Oil & Energy Sign Sales & Purchase Agreement for PL9SB

Sarawak—Petronas and JX Nippon Oil & Energy (JX NOE) have

signed an agreement for the sale and purchase of equity in

Petronas LNG 9 Sdn Bhd (PL9SB), a wholly-owned subsidiary

of Petronas (PCN, 2 Feb 2015, p 3).

Under the agreement, JX NOE will acquire a 10% interest

in PL9SB, which owns the ninth liquefied natural

gas (LNG) liquefaction train within the Petronas LNG

complex in Bintulu, Sarawak, Malaysia.

The 3.6-million-t/y state-of-the-art train, expected to

begin commercial operations in the first quarter of 2017,

will increase capacity at the Petronas LNG complex to 30-

million t/y.

The partnership aims to expand the LNG business even

further and ensure a reliable supply of energy for their

customers. A marketing support agreement was also

signed.

 

Petro Rabigh Studying Polyols Project; Awards Clean Fuels Contract to KT

Rabigh—Rabigh

Refining and Petrochemical Co. (Petro Rabigh), a joint venture

of Saudi Aramco and Sumitomo Chemical, said in a

statement to Tadawul that it is studying the possibility of a

polyether polyol production facility and future developments

will be announced in a timely manner.

Also in the filing, the company said it has awarded an

SAR 563-million contract to Kinetics Technology (KT), a

subsidiary of Tecnimont, for a clean fuels project that includes

a 17,000-b/d naphtha treating unit and a 106,000-

t/y sulfur recovery unit. Completion is expected during the

third quarter of 2019.

Petro Rabigh noted it will be “self-financing” the clean

fuels project.

 

Gevo Exploring Strategic Alternatives

Englewood—

Gevo Inc. has begun a review of strategic alternatives and

has engaged Cowen & Company LLC as financial advisor

to assist in the review.

“After careful consideration, including discussions with

a range of stakeholders, we believe it is an appropriate

time to undertake a comprehensive review of the company’s

strategic and financial alternatives,” said Ruth I.

Dreessen, chairman of the board. “The board is thoroughly

committed to exploring . . . alternatives, while simultaneously

supporting management in the development of

Gevo’s technology and business.”

Gevo did not disclose if the review included a potential

sale of assets.

 

People on the Move

Yara International—Terje Tollefsen has become chief

strategy and business development officer of the executive

management group. He had been head of strategy and

business development.

Pierre Herben has joined the executive management

group as chief technology officer. He was previously chief

technology officer, reporting to Yara’s chief executive.

Archer Daniels Midland (ADM)—Pierre Duprat has

been appointed president of ADM’s business in Europe,

Middle East and Africa and India. He was most recently

director of international business development for the company’s

corn processing unit.

Toray Plastics—Justin Larson, most recently key accounts

manager of the Lumirror Polyester Film Division,

has been named product manager of the division.

Kline—Frances Davidson and Hardeep Parmar have

both been named a director in the chemicals practice of

Kline’s management consulting business. They will succeed

Ian Butcher, who has decided to retire, but will maintain

a directorship of Kline Europe.

Davidson, who recently joined Kline’s U.S. office, was

previously with Townsend Solutions as a business development

director.

Parmar recently joined the firm’s London office and has

experience accrued at consultancies including Nexant, Jacobs

Consultancy and Arthur D. Little.

Mark De Decker will become managing director of

Kline’s office in Brussels. He has been serving as vice

president of custom research.

 

Sace Guarantees $840-Million Credit Line To Support Construction of Liwa Project

Muscat—

Sace, wholly-owned by Cassa Depositi e Prestiti (CDP), has

guaranteed an $840-million credit line issued by CDP for

construction of Oman Oil Refining and Petroleum Industries’

(Orpic) Liwa Plastic Industries Complex in Oman.

The $6.5-billion project, located in Sohar, includes a

steam cracker with over 800,000 t/y of capacity, 838,000 t/y

of linear low- and high-density polyethylene capacity,

215,000 t/y of polypropylene capacity and a 300-km natural

gas liquids pipeline between Fahud and Sohar (PCN, 21-28

Mar 2016, p 4). Commissioning is scheduled in 2020.

“The financing is intended to sustain supply contracts

awarded by Orpic to Maire Tecnimont, and subcontracts

that will be assigned to numerous Italian companies, especially

SMEs [small to medium enterprises], that produce

machinery tools for the oil and gas sector,” explained Sace.

Once complete, Liwa will become one of the world’s

most technologically advanced petrochemical complexes,

enabling the country to develop a solid local plastics industry,

Sace noted.

 

Hemla Vantage, Kharg Petrochemical May Partner for Iranian Gas Project

Tehran—Hemla

Vantage and Iran’s Kharg Petrochemical Co. may form a

joint venture to produce and export liquefied natural gas

(LNG) and liquefied petroleum gas (LPG) in Iran by 2017,

reported a local news source citing the Financial Times.

The $600-million project will be equally-owned by both

companies and will produce 500 t/y of LNG and 200 t/y of

LPG in the first phase. A floating production vessel will be

shipped to Kharg Island by October. It will be leased from

Exmar, a Belgian company.

“We are inspired that Iran really wants to shift from a

traditional player to a modern player,” said the report

quoting Gerhard Ludvigsen, founding member of Hemla

Group and director of Hemla Vantage. “Nobody would believe

that Iran could be the first in the world to produce

LNG from a floating production vessel,” he added.

 

Praxair Purchases Yara’s CO2 Business; Includes 34% Stake in Yara Praxair JV

Danbury—

Praxair has completed the acquisition of Yara International

ASA’s European carbon dioxide (CO2) business and

Yara’s remaining 34% stake in the Yara Praxair Holding

industrial gas joint venture for €300-million.

The CO2 business operates liquefaction plants and dry

ice production facilities across the UK, Ireland, Scandinavia,

Germany, Benelux, France and Italy.

 

APLA Schedules Annual Meeting 19-22 Nov. 2016 in Buenos Aires

Buenos Aires—

Asociacion Petroquímica y Quimica Latinoamericana

(APLA) has scheduled its 36th Latin American Petrochemical

Annual Meeting from 19-22 Nov. 2016 at the

Sheraton Buenos Aires Hotel & Convention Center in Buenos

Aires, Argentina.

For further information and registration, contact APLA

by phone 54 (11) 4325 1422; fax 54 (11) 4325 0086; email

reunionanual@apla.com.ar or visit www.apla.com.ar.

 

ADKL Awarded Contract from MSPIC For Iranian Petrochemical Facilities

Tehran—Abels

Decker Kuhfuß Lenzen (ADKL) has received a contract

from Iranian firm Masjed Soleyman Petrochemical Industries

Co. (MSPIC) for a petrochemical project in Masjed

Soleyman, Iran, reported Shana News Agency.

The project involves the production of 2,050 t/d of ammonia

and 3,250 t/d of urea in the first phase. No other

details were given.

Under the contract, valued at €2-billion, ADKL will in

the first phase cooperate in providing funds, transferring

technology and implementing contracts for the project

within the framework of engineering, procurement, construction

and finance. The contract value may be increased

to up to €10-billion in the future.

 

Brenntag Getting Remaining Interest In Chinese Distributor Zhong Yung

Beijing—Brenntag

has signed an agreement to purchase the remaining 49%

interest in Chinese distributor Zhong Yung Chemical Ltd.,

for an undisclosed amount.

Since acquiring a 51% stake in Zhong Yung in 2011, the

Chinese firm has demonstrated a positive development,

Brenntag said, noting that Zhong Yung has a significant

presence across the mainland of China with modern

equipped distribution facilities in Beijing, Tianjin, Shanghai

and Guangzhou.

“The successful cooperation between Brenntag and

Zhong Yung laid a strong foundation for the positive expansion

and further growth in China,” said Ni Jianzhong,

chairman of the board of Zhong Yung and future chairman

of the board on Brenntag in China. “We will continue to

build upon this solid platform to broaden our product portfolio

further.”

 

Crest Acquires Optimal Field Services

Geismar—

Crest Industries LLC has acquired U.S. industrial field

services company Optimal Field Services.

Optimal provides turn-key industrial services to the

petrochemical, specialty chemical, petroleum, gas processing

and paper processing industries. Value of the transaction

was not disclosed.

“The strength of the Crest Industries foundation and its

leadership team will be the catalyst for Optimal Field Services

to emerge and become the go-to turnaround company

in the refining, petrochemical and chemical markets,” said

Optimal President Andre Folse.

Optimal will operate as a subsidiary of Crest Industries

at its current location in Geismar, La., and will retain all

employees and key leaders.

 

NCC Receives Fifth Chemical Tanker

Riyadh—The

National Shipping Co. of Saudi Arabia’s National Chemical

Carriers (NCC) subsidiary has now received all five second

hand chemical tankers ordered from Scorpio Tankers Inc.

(PCN, 14 Mar 2016, p 3).

NCC signed a memorandum of understanding earlier

this year to purchase the five ships from Scorpio at a total

price of $166.5-million. The tankers were built at the

Hyundai Mipo Dockyard in South Korea in 2014.

 

SES, Simon Renew & Extend Agreement To Include Global Engineering Support

Houston—

Synthesis Energy Systems (SES) and Simon India, an engineering,

procurement and contracting subsidiary of Zuari

Global, have renewed an agreement to jointly market SES

Gasification Technology (SGT) for coal and biomass gasification

projects in India, and have added global engineering

support to the partnership.

The new engineering services agreement will extend

SES’s capability to engage Simon for broader SGT engineering

support globally.

“We value the relationship we have built with Simon,

and Simon will continue to advance SES’s interests in India,

a country increasingly desirous of an affordable and

environmentally beneficial clean energy solution to address

ever-growing energy demand,” said DeLome Fair, president

and chief executive of SES.

SGT, known for its unparalleled feedstock flexibility, is

well-suited for the high-ash, low-grade coals that comprise

about 80% of all locally available coal in India, SES noted.

“We are committed to SGT as the clean energy technology

solution for India,” said Simon India Chief Executive

and Executive Director Ashok Grover. “We look forward to

working with SES to develop the first SES Gasification

Technology project in India.”

 

Borealis Enters Agreement for 100% Interest In German Plastics Recycler MTM Plastics

Berlin—

Borealis has agreed to acquire a 100% stake in German plastics

recycler MTM Plastics and MTM Compact for an undisclosed

amount, subject to regulatory approvals.

“Plastics are simply too valuable to be disposed of in

landfills,” said Alfred Stern, executive vice president of

polyolefins and innovation and technology at Borealis.

“Plastic recycling provides a circular business opportunity

in a growing market within a broader sustainability

agenda,” he continued.

“There are many areas in which mechanical recycling of

post-consumer waste make business and ecological sense.

The acquisition of MTM Plastics and MTM compact reflects

our pro-active and dedicated ‘keep discovering’ approach

to provide specific and innovative solutions in tackling

core global challenges,” he added.

MTM Chief Executive Michael Scriba said that with

Borealis as its partner, MTM “will continue the successful

growth of the last years also in the future.” A completion

date for the transaction was not given.

 

Messer Subsidiary Gains Air Liquide’s Hungarian Industrial Gases Business

Budapest—The

Hungarian subsidiary of Messer Group has completed the

acquisition of Air Liquide’s Hungarian industrial gases

business, Air Liquide Hungary Ipari Gaztermelo Kft.

(PCN, 21 Sept 2015, p 3).

The purchase includes an on-site air separation unit

(ASU), two nitrogen generators, a gas cylinder filling plant,

tankers, customer tanks and steel cylinders, as well as

about 50 employees and Air Liquide’s existing customers.

Value of the transaction was not given.

Messer will fully integrate and merge the two companies

in the short term to boost efficiency. In the meantime,

Air Liquide Hungary will continue to exist unchanged under

the name Messer Iparigaz Kft., Messer noted.

Separately, Messers said it plans to soon commission a

new ASU in Tiszaújváros, Hungary. There are also plans

to increase carbon dioxide production capacity in Olbo, set

up additional on-site nitrogen generators, and develop and

modernize the tank container and gas cylinder inventory.

 

Royal Vopak Sells 40% Ownership In Japanese Terminals Venture

Tokyo—Royal Vopak

has completed the sale of its 40% stake in Nippon Vopak to

Macquarie Asia Infrastructure Fund for about €26-million.

Nippon Vopak owns and operates five terminals in Japan

with a combined operational capacity of 203,200 cubic

meters. The terminals are located in Kawasaki, Kobe,

Moji, Nagoya and Yokohama.

The sale is in line with Vopak’s plan announced last

year to divest about 15 smaller terminals (PCN, 4 Apr

2016, p 3).

Earlier this year, Vopak sold its UK terminals and

Thames Oilport to Macquarie Capital and Greenergy, respectfully.

 

Solvay Becomes Sole Owner of Primester

Kingsport—

Solvay has completed the acquisition of Eastman Chemical’s

interest in their former cellulose acetate production

joint venture Primester (PCN, 23 May 2016, p 4).

Eastman will provide the long-term supply of basic

utilities and raw materials to the Kingsport, Tenn., plant.

Value of the transaction was not given.

Honeywell UOP Breaks Ground in China For Facility to Produce MTO Catalysts

 

Honeywell UOP has broken ground on a new manufacturing

facility in China to produce state-of-the-art catalysts

used in Honeywell’s advanced methanol-to-olefins (MTO)

technology.

The MTO technology converts methanol, which can

readily be produced from coal or natural gas, into ethylene

and propylene. The new catalysts line, located in an industrial

park in Zhangjiagang City, is expected to begin production

in 2017.

“MTO is an innovative, proven technology that enables

countries such as China that are rich in coal, but which

have had to import petroleum, to make plastics,” said Rajeev

Gautam, president and chief executive of Honeywell’s

Performance Materials and Technologies business group.

“While global demand for ethylene and propylene is

growing 4% to 5% per year, China is expected to invest

more than $100-billion in coal-to-chemicals technology by

2020,” Honeywell explained. “This would reduce China’s

dependence on imported oil for the manufacture of plastic

resins, films and fibers that are used to make millions of

different products.”

The site, open since 2015, also produces catalysts for

Honeywell’s Oleflex process and produces adsorbent materials

used in petrochemical and refining production and

natural gas processing.

 

Repsol Finishes Construction in Spain On New Metallocene-Based PE Plant

Tarragona—

Repsol has completed construction on a new metallocenebased

polyethylene (PE) plant at its site in Tarragona,

Spain (PCN, 1 Feb 2016, p 1).

The new swing plant, based on Chevron Phillips Chemical’s

proprietary technology, is capable of producing both

linear low-density and high-density PE. Repsol has completed

the first tests on the facility with success.

Earlier this year, Repsol said it planned to start up the

plant during the second quarter.

The new range of metallocene-based PE grades will be

marketed under Repsol’s Resistex trademark.

 

Uz-Kor Gas Chemical Inaugurates Ustyurt Gas Chemical Complex

Tashkent—Uz-Kor Gas

Chemical LLC has inaugurated its new $3.9-billion Ustyurt

gas chemical complex in Surgil, Uzbekistan, according

to local sources.

The complex is designed to process 4.5-billion cu m/yr of

gas and has the capacity to produce 400,000 t/y of highdensity

polyethylene, 100,000 t/y of polypropylene, sales

gas, pyrolysis gas and pyrolysis oil, according to Uz-Kor’s

website (PCN, 19 Oct 2015, p 4).

Uz-Kor is a 50-50 joint venture of Uzbekistan and a Korean

consortium of Lotte Chemical (24.5%), Korea Gas

Corp. (22.5%) and GS E&R (3%).

 

CF Industries and OCI NV Terminate Planned Combination of Businesses

Deerfield—CF

Industries and OCI NV have terminated the proposed

combination of CF with OCI’s European, North American

and global distribution businesses for approximately $8-

billion (PCN, 4 Jan 2016, p 2).

An announcement from the Treasury on 4 Apr. 2016

“materially reduced the structural synergies of the combination,”

the companies said. “Since that time, both companies

have worked together collaboratively to explore alternative

transactions and structures that would be attractive

to their respective shareholders. However, the companies

were unable to identify an alternative acceptable to

both parties and, therefore, agreed to terminate the combination,”

they explained.

“Although the original deal created significant value for

both parties, changes in the regulatory and commercial

environments forced us to re-evaluate the combination and

led us to the conclusion that terminating the agreement is

in the best interests of CF Industries and its shareholders,”

said CF President and Chief Executive Tony Will.

Under the combination agreement, CF will pay OCI

$150-million in connection with the termination.

 

Technip Wins Contract from CTCI For New Jubail Cracking Furnace

Jubail—Technip

has been awarded a contract by CTCI to supply basic engineering

and proprietary equipment for Saudi Kayan’s new

ethylene cracking furnace in Jubail, Saudi Arabia (PCN,

22 Feb 2016, p 2).

The additional furnace, which will add 93,000 t/y of ethylene

capacity, will be based on Technip’s proprietary USC

furnace technology. Cost of the project is estimated at

around $94.5-million.

CTCI won a contract from Saudi Kayan earlier this

year to provide engineering, procurement and construction

for the project. Completion is expected during the second

half of 2017.

Technip said it will execute the project through its operating

center in Milton Keynes, UK.

 

Stepan Closing Longford Mills Facility; Production to be Moved to Other Sites

Toronto—

Stepan Co. has decided to end production activities and

shut down its facility in Longford Mills, Canada, by the

end of this year.

Production at the facility will be relocated to Stepan’s

existing North American manufacturing sites.

According to the company’s website, Stepan produces

alkoxylates, amides, sulfonates, sulfates, blends and phosphate

esters at Longford Mills. Ethoxylation production

was discontinued at the site earlier this year.

“The plant closure will allow us to improve our asset

utilization in North America and further reduce our fixed

cost base,” said Stepan President and Chief Executive F.

Quinn Stepan Jr.

 

Dow & DuPont Name New Appointments To DowDuPont Senior Leadership Team

Midland—

Dow Chemical and DuPont have announced additional appointments

for DowDuPont’s senior leadership team, following

consummation of the proposed merger of equals

(PCN, 8 Feb 2016, p 2).

Last year, Dow and DuPont said they will combine in

an all-stock merger of equals, valued at around $130-

billion. The combined company, to be named DowDuPont,

is planned to be separated into three independent, publicly

traded companies—Material Science, Specialty Products,

and Agriculture, subject to DowDuPont board approval.

The new senior leadership appointments include Howard

Ungerleider as chief financial officer of DowDuPont.

He is vice chairman and chief financial officer of Dow.

Jim Fitterling, president and chief operating officer of

Dow, will become chief operating officer of the new Material

Science business, which will be named Dow.

James C. Collins Jr. will become chief operating officer

of the DowDuPont Agriculture business. He is currently

executive vice president for DuPont and leader of DuPont’s

agriculture business segment.

Marc Doyle, now executive vice president and leader of

DuPont’s Electronics & Communications, Industrial Biosciences,

Nutrition & Health, Performance Materials and

Safety & Protection businesses, will become chief operating

officer for DowDuPont’s Specialty Products business.

As previously disclosed, Andrew N. Liveris, chairman

and chief executive of Dow, will become executive chairman

of DowDuPont. Edward D. Breen, chairman and chief

executive of DuPont, will be chief executive of DowDuPont.

The DowDuPont board of directors and other leadership

roles are expected to be announced prior to closing, which

is expected in the second half of 2016, subject to customary

closing conditions and shareholder approval.

 

Sabic & Saudi Aramco Deny Reports Of Merging Petrochems Businesses

Riyadh—Sabic

and Saudi Aramco have denied recent press reports about

the possible merger of the two companies’ petrochemicals

businesses and clarified that they have no plans of pursuing

this option.

However, noted Sabic, “both companies will continue to

explore mutually beneficial opportunities to work together

as partners and contribute to the continued growth and

diversification of the Kingdom’s economy.”

 

RSA-Talke Completes First Phase Of Dubai Integrated Chems Hub

Dubai—RSA-Talke

has completed the first phase of its integrated chemicals

hub in Dubai’s Jebel Ali Free Zone in the United Arab

Emirates (PCN, 7 Sept 2015, p 4).

The site is designed to handle hazardous and nonhazardous

liquid chemicals and includes 1,800 TEU (20-

foot equivalent unit) ISO tank and storage capacity as the

central element. Cleaning, maintenance, inspection and

certification services for ISO tank containers are also

available.

A second and third phase is planned and includes construction

of facilities for drumming hazardous and nonhazardous

liquid chemicals, as well as a warehouse for

packed products.

 

Amec Foster Wheeler Awarded Contract For Cilacap Refinery Upgrade Project

Jakarta—

Pertamina and Saudi Aramco have awarded an engineering

and project management services contract to Amec Foster

Wheeler to conduct the basic engineering design study

for their Cilacap refinery upgrade project in Central Java,

Indonesia (PCN, 15 Dec 2014, p 3).

The project, estimated to cost between $4-billion and

$5-billion, will increase the refinery’s capacity to 370,000

b/d. Gasoline and diesel production will be maximized and

higher quality base oils will be produced for domestic use.

Petrochemicals capacity will also be enhanced at the refinery

to over 600,000 t/y of aromatics and 160,000 t/y of

polypropylene. The front-end engineering design phase is

planned to be completed in 2018, with the engineering,

procurement and construction stage beginning in 2019.

Project completion is expected by the end of 2022.

 

Braskem Enhancing R&D Capabilities To Support New La Porte PE Facility

Pittsburgh—

Braskem has implemented new ultra-high molecular

weight polyethylene (UHMWPE) capabilities at its Innovation

and Technology (I&T) Center to support a new

UHMWPE plant being built in La Porte, Texas (PCN, 4

Jan 2016, p 2).

The improvements at the I&T Center in Pittsburgh,

Penn., are in anticipation of the fourth quarter 2016 startup

of the new UTEC UHMWPE plant, the company noted.

“The new capabilities will continue to enable Braskem

to expand its technical leadership in UHMWPE by providing

instrumentation for testing, application development,

and new product research,” said Braskem.

Capacity of the new La Porte plant was not disclosed.

The company earlier said the unit would complement its

existing UHMWPE facility in Brazil.

 

Sabic’s Al-Benyan Elected GPCA Chair

Dubai—

Yousef Abdullah Al-Benyan, chief executive and vice

chairman of Sabic, has been elected chairman of the Gulf

Petrochemicals and Chemicals Assn. (GPCA), effective

immediately.

Previously vice chairman of the GPCA, Al-Benyan will

replace Rashed Saud Al-Shamsi, former petrochemicals

director at Abu Dhabi National Oil Co. (Adnoc).

Abdulaziz Al-Hajri, Adnoc’s new director of refining and

petrochemicals, assumes the role of vice chairman of the

GPCA. Qatar Vinyl Co. Chief Executive Hamad Al-Nuaimi

has become the GPCA’s new treasurer.

 

People on the Move

Solvay—Pascal Chalvon, most recently president of

energy services, has been appointed chief sustainability

officer. He succeeds Jacques Kheliff, who is retiring.

Trinseo—Barry Niziolek has been named vice president

and chief financial officer, effective 13 June. He will

also join the executive leadership team. Niziolek had been

vice president and controller at DuPont.

Petrobras—Pedro Parente has been appointed chief

executive and director, replacing Aldemir Bendine. Parente

is chairman of BM&FBovespa.

 

TonenGeneral Sekiyu Begins Operations At New Mixed Xylene Unit in Ichihara

Tokyo—Tonen-

General Sekiyu recently began operations at a new

230,000-t/y mixed xylene recovery unit at its Chiba refinery

in Ichihara, Japan (PCN, 12 Jan 2015, p 3).

The new unit, based on GTC’s Advanced Distillation

technology, has a “unique” design, which allows for the

production of high-purity toluene and C9 aromatics out of

the same column with the xylenes, GTC explained.

The unit uses GTC’s Dividing Wall Column technology

for high energy efficiency. GTC also provided the process

license, basic engineering design, equipment supply and

process guarantees.

“Construction of the new unit is aligned with the company’s

shift from fuels to petrochemicals,” said TonenGeneral.

The unit “will enable the company to respond flexibly

to the drop in domestic demand for petroleum products and

the anticipated increase in demand for petrochemical

products in China and elsewhere,” TonenGeneral added.

Earlier reports said the unit was expected to cost about

$42-million and would have 200,000 t/y of capacity. Commercial

operations were planned to begin as early as 2017.

 

EPCA’s 50th Annual Meeting Scheduled To Be Held 1-4 Oct. 2016 in Budapest

Brussels—The

European Petrochemical Assn. (EPCA) will hold its 50th

annual meeting from 1-4 Oct. 2016 at the Budapest Marriott

Hotel, Hotel InterContinental Budapest and Hotel

Sofitel Chain Bridge in Budapest, Hungary, based on the

theme “50 Years of Global Chemical Industry Evolution:

What’s Next?”

The speakers include Arkema’s Chairman and Chief

Executive Thierry Le Henaff; Dr. Martin Brudermueller,

chief technology officer at BASF SE and vice chairman of

the board of executive directors; Bob Patel, Lyondell-

Basell’s chief executive and chairman of the management

board; Nathalie Brunelle, senior vice president of strategy,

development and research at Total, and Vopak Chairman

and Chief Executive Eelco Hoekstra.

For further details and registration information, contact

EPCA by phone at 32(02)2 741 8660, fax 32(02)2 741 8680

or email meetings@epca.eu.

 

Mountaineer Proceeding with Plans For Its Natural Gas Storage Project

Clarington—

Mountaineer NGL Storage has concluded a successful nonbinding

open season for its natural gas storage project near

Clarington, Ohio, which resulted in requests for more than

three times the amount of initial planned capacity (PCN,

18 Apr 2016, p 3).

The project plans to offer up to 2-million barrels of initial

storage capacity with over 40,000 bbls/day of load-in

and load-out. It will be designed to store ethane, propane,

butane and y-grade products. Construction is planned to

begin in early 2017 with operations starting in early 2018.

“We’re pleased to see that the support of this project in

the heart of the Marcellus/Utica wet gas shale play is as

strong as it is,” said David Hooker, managing director of

Mountaineer NGL.

The project is “strategically placed” to provide service to

the expanding network of pipelines, rail, truck and barge

infrastructure that is currently being built to transport

Marcellus and Utica natural gas liquids, he added.

 

Sadara in Agreement to Supply EO & PO To SDC Joint Venture at PlasChem Park

Jubail—

Sadara Chemical Co. has signed an agreement with Surfactants’

Detergent Co. (SDC) to supply ethylene oxide

(EO) and propylene oxide (PO) for a new chemical production

facility planned to be built in PlasChem Park in Jubail

Industrial City II, Saudi Arabia.

Under the agreement, Sadara will supply EO and PO to

SDC via pipeline. No other details were disclosed.

“Infrastructure development on site at PlasChem Park

is nearly complete, with power and utilities tie-ins being

finalized in each of the divided lots,” noted Sadara’s Value

Park Director Mohammad Alazzaz.

The park “is uniquely positioned to enable and support

downstream opportunities in many market segments, such

as those industries that rely on EO and PO, and we look

forward to welcoming SDC to the EO/PO cluster,” he said.

PlasChem Park is collaborative effort between Sadara

and the Royal Commission for Jubail and Yanbu.

 

Ford Motor Co. Touts “First Automaker” Using Captured CO2 for Plastic, Foam

Dearborn—

Ford Motor Co. is the “first” automaker to develop and test

new plastics and foams using captured carbon dioxide

(CO2), and researchers expect to see the new biomaterials

in Ford production vehicles within five years, Ford said.

The foam, formulated with up to 50% CO2-based polyols,

is “showing promise” as it meets rigorous automotive

test standards. It could potentially reduce petroleum use

by more than 600-million lbs/yr.

In 2013, Ford began working with several companies,

suppliers and universities to discover applications for captured

CO2. Novomer, which uses captured CO2 from production

plants to produce innovative materials, is one of

the firms working with Ford.

Through a system of conversions, Novomer produces a

polymer that can be formulated into a variety of materials

including foam and plastic that are easily recyclable.

“Novomer is excited by the pioneering work Ford has

completed with our Converge CO2-based polyols,” noted

Peter Shepard, chief business officer at Novomer.

 

Obama Signs into Law New MTB Process To Help U.S. Specialty Chem Producers

Washington–

President Obama has signed into law the American Manufacturing

Competitiveness Act of 2016, bipartisan legislation

that would create a Miscellaneous Tariff Bill (MTB)

process, representing a “landmark victory” for specialty

chemical producers, noted the Society of Chemical Manufacturers

and Affiliates (SOCMA).

The law will eliminate tariffs on inputs and other products

that aren’t produced or available in the U.S., by requiring

a review of domestic availability, including public

comments, by the International Trade Commission (ITC).

After its analysis, the ITC will issue a public report to

Congress recommending certain products that meet the

MTB tests. Congress will then be able to consider the MTB

within existing rules. The new process is expected to be in

place by October.

“With federal regulatory costs on the rise and increased

foreign competition, this victory could not have happened

at a better time,” said William E. Allmond, vice president

of government and public relations at SOCMA.

 

SNF Vostok Breaks Ground in Russia For New Polymers Production Plant

Moscow—SNF

Vostok has broken ground for a new polymers production

facility in Saratov, Russia.

Saratovorgsintez, a wholly-owned subsidiary of Lukoil

and the sole producer of acrylonitrile in Russia, will supply

acrylonitrile feedstock to the new plant.

The unit is being built near Lukoil’s petrochemical facility

to enable the transport of feedstock and end products at

lower cost. The close proximity will also allow for the import

substitution of considerable volumes of chemicals.

In 2013, Lukoil said it entered into an agreement with

SNF SAS of France to proceed with acrylamide and polyacrylamide

production by SNF at Saratovorogsintez’s existing

site in Saratov (PCN, 27 May 2013, p 1).

In a first phase, which was scheduled to come on

stream in the first quarter of this year, SNF was to establish

the production of 50,000 t/y of acrylamide and 30,000

t/y of polyacrylamide. Saratovorgsintez agreed to supply

up to 20,000 t/y of acrylonitrile feedstock.

In the second phase, SNF plans to expand acrylamide

production to 60,000 t/y and consider increasing polyacrylamide

production to 100,000 t/y, depending on market

conditions. A completion date was not given for this phase.

 

Air Liquide Completes Airgas Purchase; Announces Executive Appointments

Paris—Air Liquide

said it has completed the acquisition of Airgas for

$13.4-billion, making Air Liquide the “leader” in the North

American industrial gas business (PCN, 23 May 2016, p 3).

Airgas will operate as a wholly-owned subsidiary of Air

Liquide within Air Liquide’s U.S. operations and, commercially,

will go to market as Airgas, an Air Liquide company.

Pascal Vinet, member of Air Liquide Group’s executive

committee, will become chief executive of Airgas, following

a short, post-closing transition phase. During the transition,

Michael Molinini will continue to serve as interim

chief executive of Airgas, and will retire later this year.

Other appointments include Andrew Cichocki, who has

been named chief operating officer of Airgas; Pierre Dufour,

senior executive vice president and board director of

Air Liquide, has been appointed chairman of the board of

Airgas, and Michael Graff, member of the Air Liquide

Group’s executive committee and executive vice president

of the Houston hub, has been named vice chairman of the

board of Airgas. Peter McCausland, Airgas’ executive

chairman of the board, has retired.

 

Rosneft, Pertamina Sign Agreement For Refinery & PC Complex in Java

Jakarta—Rosneft

and Pertamina have signed a framework agreement to

study the feasibility of a new refinery and petrochemical

complex in Tuban, East Java, Indonesia, and establish a

joint venture for the project.

Estimated to cost about $13-billion, the project will

have a refining capacity of 300,000 b/d. Details of the petrochemical

portion of the complex were not given. Start-up

is planned in 2022, according to local sources.

Pertamina will have a majority stake in the joint venture.

A final investment decision on the project will be

made upon results of the feasibility study.

 

Honeywell & PetroVietnam Ink MoU To Advance Cooperation in Vietnam

Hanoi—Honeywell

has signed a memorandum of understanding (MoU)

with PetroVietnam to advance cooperation in Vietnam’s oil

and gas industry.

Under the terms of the MoU, Honeywell will have the

opportunity to provide consulting services to PetroVietnam

and its subsidiaries for potential investment projects, as

well as perform engineering design and economic and

technical project feasibility studies for all of PetroVietnam’s

facilities.

 

PetroChemical News Briefs

Mitsui Chemicals plans to increase diphenylmethane

diisocyanate capacity in Korea to 350,000 t/y from 250,000

t/y, through its Mitsui Chemicals & SKC Polyurethanes

joint venture with SK Holding.

CVC Capital Partners is selling its remaining 4.2%

interest in Evonik, according to Reuters. The stake is valued

at around $598-million and will be sold via an accelerated

book building process, which is expected to be complete

by 31 May 2016.

The Government of Oman has OK’d a 35% tax on petrochemical

companies and a tax increase on liquefied natural

gas (LNG) companies to 55%, reported the Times of

Oman. Tax on LNG firms is currently 15%. The new taxes

are being attributed to the government’s budget deficit.

Allnex New Zealand’s proposed acquisition of Nuplex

Industries by way of scheme of arrangement has received

clearance from the Federal Antimonopoly Service of the

Russian Federation (PCN, 23 May 2016, p 2). Necessary

regulatory approvals in all remaining jurisdictions are expected

by the end of June 2016.

Russia’s Prime Minister has approved the country’s

development plan for its chemical and petrochemical industry

until 2030. The plan calls for technical upgrade and

modernization of existing chemical and petrochemical facilities

during the period 2016-2030. New cost-effective,

environmentally-friendly plants will also be set up.

Ineos Oligomers Makes FID for World-Scale LAO Unit at Ineos’ Chocolate Bayou Site

Houston—

Ineos Oligomers has made a final investment decision

(FID) to build a new world-scale linear alpha olefin (LAO)

plant at Ineos’ Chocolate Bayou site in Texas (PCN, 13

July 2015, p 3).

The 420,000-t/y LAO unit will be 20% larger than originally

planned and will be based on the company’s own proprietary

and differentiated “broad-based” LAO technology,

which includes improvements that will reduce the company’s

variable costs. Once the project comes on stream in

November 2018, Ineos Oligomers global LAO production

capacity will reach about 1-million t/y.

“We continue to believe our market and technology focus,

combined with our access to U.S. Gulf Coast ethylene

economics, makes this a very attractive opportunity,” said

Ineos Oligomers Business Director Joe Walton. “Hence,

our ultimate decision to build a unit larger than the

350,000 t/y originally envisioned.”

The Chocolate Bayou site is home to two world-scale

ethylene crackers with ready access to the U.S. Gulf Coast

ethylene pipeline distribution network, and has enough

space for future expansions, noted Peter Steylaerts, project

general manager.

“Our new unit will be well placed to supply the significant

polyethylene capacity being built on the Gulf Coast

over the next several years,” said Walton. “In addition, the

unit will also provide the feedstock that will enable our

long term PAO [polyalphaolefin] capacity growth.”

 

LSB Industries Announces Production At New El Dorado Ammonia Facility

El Dorado—LSB

Industries announced that its new 375,000-t/y ammonia

plant in El Dorado, Ark., is operational and has begun production

(PCN, 22 Feb 2016, p 1).

The plant will gradually ramp up production volume

over the next two months and is anticipated to reach full

capacity by the beginning of the third quarter of this year.

Ammonia is expected to be sold into the pipeline by the end

of the month.

Costing approximately $830-million, the project includes

a 300,000-t/y nitric acid plant and 40,000-t/y concentrator

that were completed last year.

 

Hanwha Total Petrochemicals Venture Planning Third SM Plant at Daesan

Daesan—Hanwha

Total Petrochemicals, a 50-50 joint venture of Hanwha

and Total SA, is planning to build a third styrene monomer

(SM) unit in 2018 at Daesan, South Korea, according to an

industry source.

Expected to produce 600,000 t/y of SM, the new plant

will increase Hanwha Total Petrochemicals’ total nameplate

capacity to 1.65-million t/y.

The joint venture already owns a 400,000-t/y and

650,000-t/y SM facility at Daesan.

 

Shandong Luqing Reaches Full Production At New Chinese Oleflex Isobutylene Unit

Beijing—

Shandong Luqing Petrochemical has reached full production

capacity of isobutylene at “China’s first” standalone

Honeywell UOP C4 Oleflex unit, located in Shandong Province,

China (PCN, 23-30 Nov 2015, p 1).

Performance of the 170,000-t/y isobutylene plant, which

started up late last year, has been accepted by Shandong

Luqing, Honeywell noted. The unit will support the growing

demand for petrochemicals and fuels in China.

“While Shandong Luqing is the first Chinese operator of

a standalone Honeywell UOP C4 Oleflex process, the technology

now has seven customers in the country with three

of them anticipated to start up by the end of 2016,” Honeywell

noted.

 

 

Clariant Enters Agreement To Develop Catalysts for Gevo’s ETO Technology

Englewood—

Clariant has entered into an agreement with Gevo to develop

catalysts for Gevo’s ethanol-to-olefins (ETO) technology,

which uses ethanol to produce tailored mixes of propylene,

isobutylene and hydrogen.

Clariant will focus on the development and scale-up of

the catalyst, while Gevo will continue focusing the majority

of its internal resources on optimizing its core isobutanol

technology. Once the ETO technology has been successfully

developed and scaled-up, Clariant can produce quantities

needed for commercial production requirements.

Gevo has filed a series of patent applications related to

this technology and said it expects to grow its ETO business

through licensing.

“We see the opportunity for Clariant catalysts to convert

ethanol, produced from cellulosic or other carbohydrate

sources, into more value-added products to create

greater growth potential for the ethanol industry,” noted

Stefan Brejc, head of specialty catalysts business segment

of Clariant.

 

Jacobs Awarded Contract by Satorp For General Engineering Services

Jubail—Jacobs Engineering

Group was awarded a two-year contract from

Saudi Aramco Total Refining and Petrochemical Co.

(Satorp) to provide general engineering services at Satorp’s

Jubail Industrial City II facilities in Saudi Arabia.

Under the terms of the contract, Jacobs will provide

feasibility studies, concept design and detailed engineering

services for minor capital expenditure projects.

Satorp began operations in 2015 at its $12.8-billion

Jubail complex, which includes a 400,000-b/d full conversion

refinery with 200,000 t/y of polymer-grade propylene,

700,000 t/y of paraxylene and 140,000 t/y of benzene capacity

(PCN, 19 Oct 2015, p 2).

Saudi Aramco and Total late last year said they were in

talks to expand petrochemical production in Jubail. The

project would involve production of elastomers, linear alpha

olefins and polyalphaolefins.

 

Williams Files Lawsuit Against ETE; Claims Breach of Merger Agreement

Tulsa—Williams

has filed a lawsuit with the Delaware Court of Chancery

seeking a Declaratory Judgment and injunction preventing

Energy Transfer Equity (ETE) from terminating or otherwise

avoiding its obligations under the merger agreement

signed on 28 Sept. 2015 between the companies (PCN, 5

Oct 2015, p 1).

The agreement involves ETE acquiring Williams in a

transaction valued at about $37.7-billion, including the

assumption of debt and other liabilities.

Williams alleges that ETE has breached the merger agreement

through a pattern of delay and obstruction designed

to allow ETE to avoid its contractual commitments.

Williams believes that the merger agreement prevents

ETE from doing so.

Responding to the claim, Kelcy Warren, chairman of the

board of ETE’s general partner said ETE is “disappointed

that Williams, rather than seriously engaging in discussions

regarding the transaction, has chosen to file a third

lawsuit in the last six weeks regarding our pending

merger. The filing of these lawsuits has contributed materially

to the very delay in completing the Securities and

Exchange Commission’s review . . . and proceeding towards

a stockholder meeting.”

In May 2015, Williams announced plans to acquire Williams

Partners for $13.8-billion. Because of its agreement

with ETE, Williams cancelled merger plans with Williams

Partners and agreed to pay a $428-million termination fee.

ETE’s willingness to acquire Williams was dependent

on termination of the transaction with Williams Partners.

 

Canexus, Superior Plus Expect Closure Of Transaction in First Half of 2016

Calgary—Canexus,

in reporting its first quarter 2016 results, said the

planned acquisition by Superior Plus of all issued and outstanding

common shares of Canexus is expected to be completed

in the first half of this year (PCN, 12 Oct 2015, p 3).

The companies entered into an arrangement agreement

last October, under which Superior will acquire the shares

of Canadian-based sodium chlorate and chlor-alkali producer

Canexus for a value of approximately C$1.70 per

share. Canexus shareholders will receive 0.153 of a Superior

share for each Canexus share.

“Having obtained both shareholder and court approvals

on 11 Dec. 2015, closing of the transaction now depends on

the receipt and timing of regulatory approvals,” Canexus

noted.

Canexus has a chlor-alkali facility in North Vancouver,

Canada, and Espirito Santo, Brazil, and three sodium chlorate

units in Canada located in Nanaimo, Brandon and

Beauharnois.

 

Mofcom OKs Proposed Acquisition Of Nuplex By Allnex New Zealand

Beijing—China’s

Ministry of Commerce (Mofcom) has unconditionally approved

Allnex’s proposed acquisition of Nuplex Industries

Ltd. for NZ$5.43/share in cash by way of a scheme of arrangement

(PCN, 9 May 2016, p 3).

Subject to obtaining other necessary regulatory approvals

in all remaining jurisdictions, the transaction is expected

to close in November of this year. The parties received

U.S. regulatory clearance earlier this month.

 

Metabolix Exploring Strategic Alternatives For Its Mirel PHA Biopolymers Business

Cambridge–

Metabolix is exploring strategic alternatives for its Mirel

polyhydroxyalkanoate (PHA) biopolymers business, which

may include selling the business to a third party.

The company said it is currently in talks with interested

parties regarding the potential sale of the biopolymers

business as an operating business. In addition, Metabolix

has been working on the possible “spin-out” of its

Yield 10 crop science program.

Metabolix is seeking additional funding to complete its

review. “If the company is not able to secure such additional

funding or otherwise fund its strategic review process

and operations, it will be forced to wind down some or

all of its operations and pursue options for liquidating the

company’s assets, including inventory, equipment and intellectual

property,” the company explained.

In January, Metabolix said it was continuing to ramp

up its PHA biopolymer market development activities and

work to transition from pilot scale to commercial scale operations

(PCN, 1 Feb 2016, p 4).

 

Mukesh Ambani Receives CHF Award For His Entrepreneurial Leadership

Philadelphia—

Mukesh Ambani, chairman and managing director of Reliance

Industries (RIL), has been chosen by the Chemical

Heritage Foundation (CHF) as the new recipient of the

prestigious Othmer Gold Medal for his entrepreneurial

leadership.

The annual award recognizes individuals who have

made multifaceted contributions to the chemical and scientific

heritage through outstanding activity in such areas as

innovation, entrepreneurship, research, education, public

understanding, legislation or philanthropy.

Ambani was recognized for his leadership, which resulted

in the expansion of India’s petroleum refining industry,

creation of the Jamnagar refinery in Gujarat—the

world’s “largest” grassroots petroleum refinery, and pathbreaking

initiatives in oil and gas exploration, CHF said.

The medal was presented to Ambani on 16 May during

CHF’s Heritage Day in Philadelphia, Penn.

 

People on the Move

Oxea—Dr. Salim Al Huthaili has been appointed chief

executive under the company’s new management structure.

He had been a member of the executive board.

Dr. Martina Floel, who has been serving as a spokeswoman

for the company’s executive board, will leave the

company.

Wood Group—Raymond Schlaff has been named senior

vice president and chief procurement officer. He had

been senior vice president and group chief procurement

officer for National Grid in London and Boston.

Sibur International—Marat Avetisov, most recently

head of the Moscow branch and chief operating officer of

the trading company, has been appointed chief executive.

He succeeds Andrey Frolov, who will continue as sales director

of Sibur’s Plastics, Elastomers and Organic Synthesis

Division.

OMV—Peter Loscher has been elected chairman of the

supervisory board. He had been chief executive at Siemens.

 

Technip & FMC Technologies to Merge; Combination to be Called TechnipFMC

Paris—Technip

and FMC Technologies have entered into a memorandum

of understanding (MoU) and expect to sign a definitive

business combination agreement to combine the two

companies in an all-stock merger valued at $13-billion.

Under the terms of the MoU, Technip shareholders will

receive two shares of the new company for each share of

Technip, and FMC shareholders will receive one share of

the new company for each share of FMC.

Each company’s shareholders will own about 50% of the

combined entity, which will be called TechnipFMC and be

headquartered in Paris, France.

“The new company will combine Technip’s innovative

systems and solutions, state-of-the-art assets, engineering

strengths and project management capabilities with FMC

Technologies’ leading technology, manufacturing and service

capabilities,” said the companies.

“Together, TechnipFMC will engage with customers

earlier in the development process to design, deliver and

install more comprehensive solutions, redefining the production

and transformation of hydrocarbons,” they added.

Technip Chairman and Chief Executive Thierry Pilenko

will serve as executive chairman of the new company,

while Doug Pferdehirt, president and chief operating officer

of FMC, will be chief executive of TechnipFMC.

Subject to approval of both companies’ shareholders,

regulatory approvals and consents, as well as other customary

closing conditions, the transaction is expected to

close in early 2017.

 

U.S. FTC Gives Conditional Approval To Air Liquide’s Purchase of Airgas

Washington—The

U.S. Federal Trade Commission (FTC) has approved the

acquisition of Airgas by Air Liquide, subject to certain conditions

(PCN, 29 Feb 2016, p 4).

As part of the $13.4-billion transaction, Airgas will become

a wholly-owned subsidiary of Air Liquide and the

combined entity will be the “largest industrial gas company

in the world,” Airgas earlier said.

Air Liquide has agreed to the FTC’s conditions, which

include the sale of certain assets. The conditions are to be

satisfied following the closing of the transaction. “A divestiture

package has been prepared and the divestiture process

is well underway,” Air Liquide noted, without disclosing

any details.

Subject to the satisfaction of remaining customary closing

conditions, the sale is expected to be completed on 23

May 2016.

 

Azelis Americas to be Sole Distributor For Chemtura’s Urethanes Business

 

Philadelphia—

Chemtura Corp. has chosen Azelis Americas to become the

sole distributor for its pre-polymer urethanes, curatives

and polyester polyols product lines in North America, effective

26 July 2016.

“Chemtura is committed to enabling our customers’

growth; hence consolidating our distribution channel with

Azelis makes sense given their world-class technical capabilities

and supply chain expertise allowing Chemtura to

more effectively serve all market segments,” said Bill Wallace,

business director for the Americas at Chemtura.

 

Dow Chemical Partners with NRG Energy To Supply Wind Power to Freeport Units

Midland—

Dow Chemical said it has partnered with NRG Energy and

NRG Yield to supply wind power to Dow’s Freeport, Texas,

facilities, advancing Dow’s vision to accelerate the development

of cost-effective clean energy alternatives and reduce

carbon emissions.

Under a 10-year wind power purchase agreement, NRG

will supply power to Dow’s Freeport units, from its 150-

MW Goat Mountain I and Goat Mountain II wind farms.

“Dow’s 2025 sustainability goals define the path forward

for our company, and today we are pleased to increase

our renewable energy targets from 400 MW up to

750 MW by 2025,” said Dr. Neil Hawkins, corporate vice

president and chief sustainability officer at Dow.

“Dow is proud to be the first company in the U.S. to

power manufacturing sites with renewable energy at this

kind of scale and that we’ve become one of the largest corporate

purchasers of wind energy in America,” he added.

Dow noted it is now one of the top five industrial users of

renewable power in the U.S.

Last year Dow signed an agreement with a subsidiary

of Bordas Wind Energy to supply 200 MW of wind power

annually (PCN, 23 Mar 2015, p 3). Dow currently supplies

its Freeport facilities with 350 MW a year of wind power.

 

Air Products Offering Support Services For Customer-Owned Hydrogen Units

Lehigh Valley–

Air Products has launched a new Hydrogen Services business

to help customers improve the reliability and productivity

of their own hydrogen plants.

“Air Products has been reactively providing service on

customer-owned hydrogen plants for more than 30 years,”

said Kevin Michaelis, vice president, products and technology–

industrial gases. “We have seen such market pull that

we are proactively packaging our technical knowledge and

experience into an offering that can help customers run

their hydrogen plants more effectively, as well as solve operational

issues.”

Hydrogen Services helps customers with inquiries such

as producing more or less hydrogen from steam methane

reformers (SMR), planning SMR turnarounds, solving mechanical

integrity issues, feedstock changes, pressure

swing adsorber revamps, and improving energy efficiency.

“Whether our customers need know-how, elbow grease

or both, engaging Air Products’ Hydrogen Services business

allows them to focus on their area of expertise, while

we focus on ours,” noted Scott Siegmund, global manager of

customer plant support.

 

Worley Parsons, CNCEC Form Alliance

Beijing—

Worley Parsons and China National Chemical Engineering

Co. (CNCEC) have signed a strategic alliance agreement in

order to promote CNCEC’s globalization and speed up the

implementation of the Chinese government’s “Going Out”

strategy, which encourages Chinese companies to invest in

overseas expansion.

“CNCEC and Worley Parsons’ scope of work highly

match each other, especially in the field of chemical and

petrochemical,” said CNCEC. “The combination of the two

groups will bring each other bigger market and greater

opportunities,” the company added. No other details were

provided.

 

Aramco Stresses Importance of PC Sector In Implementing the Kingdom’s Vision

Dhahran—

Saudi Aramco’s Warren W. Wilder said that the petrochemical

sector and the company’s continued growth of its

downstream business has the potential to play a pivotal

role in the Kingdom’s Vision 2030 for a diversified and sustainable

economic future.

In addressing the audience at a technical dinner of the

Saudi Arabia section of the American Institute of Chemical

Engineers, Wilder noted that Aramco’s entry into chemicals

and its ambitious strategic plans to become a fully integrated

global petroleum and chemicals enterprise will

leverage its capabilities and resources to create jobs and

help diversify the Saudi economy beyond oil, which is a key

national objective.

The country’s petrochemical sector employees 89,000

people and provides indirect employment for at least three

times as many, Wilder said. “Employment in this sector

has been growing at a very healthy 9% per year over the

past 10 years,” with the petrochemical sector employing

the highest percentage of Saudis. “It is therefore not surprising

that the petrochemicals sector was highlighted as

an important vehicle for implementing the National Transformation

Vision.”

In order to maintain competitiveness and achieve its

full potential, the industry must address certain key challenges,

said Wilder, identifying diversification of feedstocks

and product slate, and the promotion of downstream industries

as the three main challenges.

“Most of the Kingdom’s petrochemicals presently being

exported are commodities. These products, such as polyethylene,

polypropylene, and MEG [monoethylene glycol]

account for 98% of Saudi petrochemical production, compared

to only 60% to 70% for Germany and the U.S.

“While Saudi Arabia certainly needs its commodities

production strength, we also need to radically alter the

downstream equation to derive greater benefits in-

Kingdom, through knowledge-based and innovation-driven

small and medium-sized enterprises,” he explained.

Aramco’s approach to growth in the chemicals sector is

based on a two-pronged integration strategy, involving integration

with refineries and other feedstock providers,

and integration, or closer ties, with customers.

The company “will be a powerful force for the future,

helping to diversify the industry, attracting foreign and

local investment into the Kingdom and facilitating the development

of a knowledge economy,” Wilder concluded.

For more information on Saudi Arabia’s Vision 2030,

visit http://vision2030.gov.sa/en.

 

Sabic Inaugurates New State-of-the-Art Research Facility in the Netherlands

Geleen—Sabic

has opened a new state-of-the-art research center at the

brightlands Chemelot Campus in Geleen, the Netherlands,

to support its vision of becoming the world leader in the

chemical industry.

“This research center . . . combines our expertise in

chemicals, polymers and excellence in innovative application

development,” said Bert Groothuis, director, corporate

sustainability Europe.

“With Sabic’s new research building, as well as some

300 Sabic scientists now active, the campus community

will develop further,” noted Bert Kip, chief executive of

Brightlands Chemelot Campus. “We are on our way to

turning this community into a European material hotspot

for businesses and research institutes with new and unprecedented

opportunities to grown and innovate.”

 

Rosneft & PetroVietnam Sign Agreement To Pursue Hydrocarbon Opportunities

Moscow—

Rosneft and PetroVietnam have signed an agreement to

pursue opportunities in the exploration and production of

hydrocarbons.

Under the agreement, the companies will expand their

cooperation in Russia, Vietnam and third countries in the

area of hydrocarbons exploration and production, processing,

commerce and logistics, and staff training.

The partners will consider potential joint projects and

define the basic terms of cooperation, as well as form a

working group for each area of cooperation.

“Rosneft is interested in further expansion of its business

in the country, including refining, petrochemicals,

commerce and logistics,” said Igor Sechin, chairman of the

management board of Rosneft. “The new stage of cooperation

will enable the company to get a new channel of marketing

hydrocarbons in the Asia-Pacific market and create

additional synergies due to refining in the region.”

 

PetroChemical News Briefs

Solvay and Eastman Chemical have signed a definitive

agreement to terminate their cellulose acetate production

joint venture. Solvay is expected to become sole owner

in the second quarter of 2016, subject to customary regulatory

approvals.

Akzo Nobel has completed the first phase of its €2.5-

million performance coatings plant expansion in Cikarang,

Indonesia. The investment will increase capacity at the

unit by 40%.

Novatek and Thailand’s PTT inked a memorandum

of understanding to cooperate and study potential joint

opportunities in the exploration and production of hydrocarbons,

the implementation of liquefied natural gas projects

(LNG), the supply of LNG and the development of

LNG markets, and the supply of liquid hydrocarbons.

Emerald Performance Materials has agreed to sell its

Emerald Specialties and Polymer Additives and Nitriles

business groups to DyStar LP. The sale involves five of

Emerald’s nine plants. The sale is expected to close in the

third quarter of this year, subject to regulatory approvals.

Honeywell Makes Decision to Spin Off Resins & Chemicals to Shareholders

Morris Plains―

Honeywell has announced its intention to spin off its resins

and chemicals business to shareholders, creating a standalone,

publicly-traded company to be named AdvanSix Inc.

“Our $1.3-billion resins and chemicals business enjoys a

leading position in the industries its serves and a global

cost advantage,” noted Honeywell Chairman and Chief

Executive Dave Cote. “It is favorably positioned to continue

to achieve global growth as a standalone enterprise,

with added flexibility to make capital investments that

enhance its offerings and service to customers,” he said.

“Following the spin-off, Honeywell and AdvanSix will

each have a more focused business and be better positioned

to invest more in growth opportunities and execute strategic

plans best suited to its respective business,” Cote explained.

“The transaction will create added value for our

shareholders, who will receive AdvanSix shares tax-free in

addition to the Honeywell shares they already own.”

Completion of the transaction is expected by early 2017,

subject to certain customary conditions, including, among

others, assurance that the spin-off will be tax-free to Honeywell

shareholders.

With completion, AdvanSix will be a leading producer

of nylon 6. It will also produce ammonium sulfate fertilizers

and chemical intermediates, including phenol, acetone

and cyclohexanone, and will be the largest single-site producer

of caprolactam.

Erin Kane, who is currently serving as vice president

and general manager of Honeywell’s resins and chemicals

business, will serve as president and chief executive of the

new AdvanSix.

 

Reichhold, Polynt in Definitive Accord To Merge The Two Resin Businesses

Durham—Reichhold

Group and Polynt Group have entered into a definitive

agreement to merge the two businesses, which they

said is expected to create a leading global, verticallyintegrated

manufacturer of resins for specialized chemicals,

including intermediates, plasticizers, additives and

compounds.

Subject to necessary regulatory approvals and customary

closing conditions, the transaction is expected to be

completed in the second half of 2016.

“This compelling deal is expected to result in significant

synergy opportunities and will enable our combined businesses

to be more competitive, offer better services and

more innovative solutions to our customers,” said Reichhold

President and Chief Executive John S. Gaither. “It

will allow us to respond more effectively to evolving industry

dynamics and customer needs.”

Reichhold is owned by a group of investors, including

funds managed by Black Diamond Capital Management,

and Polynt is wholly-owned by funds managed by Investindustrial.

Black Diamond and Investindustrial intend to

invest equally in the combined business, and become majority

stakeholders.

 

AGC’s Asahimas Chem Subsidiary Plans Further VCM Capacity Boost at Cilegon

Jakarta—

Asahimas Chemical (ASC), a subsidiary of Asahi Glass Co.

(AGC), is planning a further increase of vinyl chloride

monomer (VCM) production capacity in Cilegon, Indonesia

(PCN, 22 Feb 2016, p 1).

ASC, which earlier this year completed an expansion

project at Cilegon that raised VCM capacity to 800,000 t/y

from 400,000 t/y, has decided to increase VCM capacity to

900,000 t/y. Completion is expected in 2018.

“The volume increase from the two-phased capacity enhancement

will be allocated for the exports to Phu My

Plastics and Chemicals Co. Ltd., which is AGC’s consolidated

subsidiary in Vietnam, and other customers in

Southeast Asian countries, as well as for the domestic PVC

[polyvinyl chloride] production at ASC,” AGC said.

The recently completed expansion project at Cilegon

also included an increase of PVC capacity to 550,000 t/y

and caustic soda capacity to 700,000 t/y.

 

Ineos Agrees to Sell EPS Assets To Synthos SA for €80-Million

Rolle—Ineos Enterprises

has reached an agreement in principle to sell its expandable

polystyrene business (EPS), Ineos Styrenics, to Synthos

SA for €80-million.

The transaction, expected to close in the second half of

2016, includes EPS manufacturing sites in Wingles and

Ribecourt, France, and in Breda, the Netherlands. The

sale is subject to customary closing conditions.

The three sites are supported by a purpose-built research,

development and product testing facility in Breda,

including a research laboratory and pilot plant facilities.

The approximately 250 employees of Ineos Styrenics are

included in the deal.

 

Ube, JSR & Mitsubishi Rayon in Talks To Combine Their ABS Subsidiaries

Tokyo—Ube Industries,

JSR Corp. and Mitsubishi Rayon have reached a

basic agreement to begin discussions on the feasibility of a

merger of the three companies’ respective acrylonitrile butadiene

styrene (ABS) subsidiaries.

The combination involves JSR’s Techno Polymer Co.

subsidiary, and UMG ABS, a 50-50 joint venture of Ube

and Mitsubishi. A final agreement is expected to be concluded

by 31 Oct. 2016, with completion of the merger targeted

for 1 Oct. 2017.

“The main purpose of the merger is to optimize operations,

improve manufacturing efficiencies, and secure cost

competitiveness for the ABS resin business, in order to secure

the stable supply of products in Japan and expand

sales in global markets, amid an increasingly severe business

environment,” the companies explained.

Techno Polymer and UMG ABS are both located in Tokyo,

Japan.

 

Siluria Confirms OCM Process Viability; Ready for Commercial Ethylene Units

San Francisco—

Siluria Technologies said it has proven the commercial viability

of its Oxidative Coupling of Methane to ethylene

(OCM) technology through a successful first year of operations

at its La Porte, Texas, demonstration plant (PCN, 13

Apr 2015, p 4).

Siluria’s OCM technology is the first commercial process

to directly convert natural gas into ethylene, the company

noted. The demonstration plant, co-located with a

polymer plant operated by Braskem America, is the final

pre-commercial scale-up of Siluria’s OCM process. “Braskem’s

world-class operations team has worked closely with

Siluria and has been key in making this demonstration

facility a success,” noted Gary Koehler, Siluria’s vice president

of operations.

“Both our proprietary catalyst and OCM process have

performed reliably at our demonstration plant, further

validating the commercial performance of our multiple

years of pilot plant operations,” said Erik Scher, interim

chief executive and president of Siluria. “This paves the

way to move forward with commercial ethylene production

projects in process in the U.S. and abroad.”

Siluria is working jointly with Linde Engineering to deliver

this technology to the marketplace.

 

Indorama Eyes 2nd Half ’16 Completion Of Brownfield PTA Boost in Rotterdam

Bangkok—

Indorama Ventures now expects the brownfield expansion

of its purified terephthalic acid (PTA) capacity in Rotterdam,

the Netherlands, to be completed in the second half of

this year, later than the originally scheduled 2014 completion

date (PCN, 10 Oct 2011, p 1).

In announcing the project, the company said the expansion

would add 330,000 t/y of PTA capacity. Earlier reports

listed Indorama as currently having a 350,000-t/y

PTA plant at its Rotterdam site.

 

EC Clears Celanese’s Sale to Ineos Of Certain European BuAc Assets

Brussels—The

European Commission (EC), under the European Union

Merger Regulation, has approved Celanese’s sale to Ineos

of certain European n-butyl acetate (BuAc) assets.

The sale involves assets used to market BuAc, including

existing European commercial relationships that will enable

Ineos to continue supplying Celanese’s current BuAc

customers. The acquisition does not include Celanese’s

manufacturing assets in Frankfurt, Germany, which will

be shut down. No other details were available.

 

BASF Increasing Capacity in Germany Of Basonat Aliphatic Polyisocyanates

Ludwigshafen–

BASF said it is planning to invest in an expansion of its

Basonat aliphatic polyisocyanates capacity in Ludwigshafen,

Germany, significantly increasing its local production

capacity.

The company noted a “considerable increase in global

demand” for the product over the last few years. The additional

capacity will be available by the end of 2017. No

other details were given.

 

Kuraray Decides on Expansion Project To Boost EVOH Capacity in the U.S.

Pasadena—

Kuraray Co. is increasing production capacity for EVAL

ethylene vinyl alcohol (EVOH) at its Kuraray America subsidiary

in Pasadena, Texas.

The project will increase EVOH capacity at the site by

11,000 t/y to a total of 58,000 t/y. Operations are expected

to begin in mid-2018.

“Previously, the increase in EVAL demand had been

centered primarily in industrialized nations, such as Japan

and the United States as well as those in Europe,” Kuraray

said. “However, demand is now rising in emerging nations.

To secure a stable supply structure, Kuraray has concluded

that it is necessary to boost its EVAL production capacity.”

Last year, the company announced a project to increase

EVOH production capacity at its Antwerp, Belgium, site by

11,000 t/y to a total of 35,000 t/y (PCN, 9 Feb 2015, p 4).

Operations are scheduled to start at the end of this year.

Kuraray also has an EVOH facility in Okayama, Japan,

with 10,000 t/y of capacity.

 

Incitec Pivot Obtains Full Commitment For Waggaman Ammonia Production

Waggaman—

Australian chemicals and fertilizer producer Incitec Pivot

Ltd. (IPL) announced that production offtake from its new

800,000-t/y ammonia plant in Waggaman, La., “is fully

committed through to 2026” (PCN, 10 Aug 2015, p 3).

The $850-million facility is now 97% complete and is on

track and on budget, with “beneficial production” expected

in the third quarter of this year.

“In 2011, we identified the productivity challenge confronting

Australia,” noted IPL Managing Director and

Chief Executive James Fazzino. “At the same time, we

foresaw the future economic impact of the shale gas revolution

in the U.S. and seized a classic first mover advantage

with the decision to develop a world-scale ammonia plant

in Louisiana,” he continued. “Today, U.S. gas prices sit at

around $2.00/MMBTU and our investment thesis remains

intact.”

Located within Cornerstone Chemical Co.’s Fortier

manufacturing complex, the plant is based on KBR’s ammonia

technology.

 

People on the Move

Braskem America—Mark Nikolich has become chief

executive, responsible for leading the polypropylene (PP)

and ultra-high molecular weight polyethylene business

units, as well as U.S. growth projects. He previously led

the PP business unit in the U.S.

Sinopec Group—Dai Houliang, most recently senior

vice president and chief financial officer of Sinopec Corp.,

has been named general manager of the group. He succeeds

Wang Tianpu.

Evonik Industries—Christian Kullmann has been

appointed deputy chairman of the executive board, effective

immediately. He has been on the executive board

since July 2014 and also serves as chief strategic officer.

DuPont-Mitsui Polychemicals—Hitoshi Tachino,

currently director of the board, has been named president

of the DuPont and Mitsui Chemicals joint venture, effective

23 June. He replaces Sohei Morita, who is retiring.

 

Petronas Confirms Three EPCC Contracts For Pengerang Petrochemical Facilities

Johor—

Petronas’ PRPC Polymers and PRPC Glycols subsidiaries

have awarded engineering, procurement, construction and

commissioning (EPCC) contracts for petrochemical plants

being built as part of the Refinery and Petrochemical Integrated

Development (Rapid) project in Pengerang, Malaysia

(PCN, 7 Dec 2015, p 2).

An EPCC contract was awarded by PRPC Polymers to a

joint venture of Tecnimont and China HuanQiu Contracting

& Engineering for a new 900,000-t/y polypropylene

(PP) plant, which will based on LyondellBasell’s Spherizone

and Spheripol PP technologies.

A consortium of Samsung Engineering Co., Samsung

C&T and Samsung Engineering Sdn Bhd received an

EPCC contract from PRPC Glycols for a 740,000-t/y ethylene

oxide/ethylene glycol (EO/EG) facility.

The Samsung consortium also received the EPCC contract

for a 350,000-t/y linear low-density polyethylene

(LLDPE) facility from PRPC Polymers.

The contracts follow a Letter of Award issued to the

companies late last year. At the time, Petronas said the

PP contract was valued at $482-million, the EO/EG contract

was valued at about $577-million and the LLDPE

contract was valued at approximately $305-million.

Expected to be operational by early 2019, the Rapid project

includes a 300,000-b/d refinery.

 

Jacobs Providing Engineering Services For Mitsubishi’s Polyester Film Plant

Pasadena—

Jacobs Engineering has been awarded a contract to provide

engineering services for the $100-million expansion of Mitsubishi’s

polyester film plant in Greenville County, S. C.

Under the terms of the agreement, Jacobs’ scope of

work includes installation of a polyester film production

line, which is expected to combine high level technology

with production efficiency, Jacobs noted. Completion is

planned by late 2017.

 

Nova Unveils Newly Transformed Center For PE Resin Testing and Applications

Calgary—

Nova Chemicals has unveiled its transformed Centre for

Performance Applications, which expands on the former

Nova Chemicals Technical Centre and is dedicated to polyethylene

(PE) resin testing and applications development.

Located in Calgary, Canada, the facility has a new

wing, much of it focused on customer collaboration, and

serves as a hub for supporting customers in developing

higher-value products and applications. It includes industry-

leading research and development capabilities for a

number of markets.

“Our expanded capabilities allow us to perform product

development work and trials that simulate customer manufacturing

methods and application performance under

real-world conditions—a distinct advantage in our competitive

landscape,” noted Daryll Harrison, Nova’s vice president

of technology.

The installation of new equipment and upgrades, including

an extensive suite of conversion equipment, physical

and analytical test lab equipment and more, allows

Nova’s applications development experts to perform critical

work and even reimagine how PE resins are used.

 

Fujian Shenyuan New Materials Plans Caprolactam Production by Year End

Fujian—Fujian

Shenyuan New Materials is expected to begin operations of

the first phase of its caprolactam project by the end of this

year (PCN, 27 May 2013, p 2).

China Chemical Fiber Group said the first phase includes

a 400,000-t/y caprolactam line, with a total investment

of 15-billion yuan. In a second phase, for which a

schedule was not disclosed, a 600,000-t/y caprolactam line

will be built with an investment of 25-billion yuan.

In 2013, Air Liquide was awarded a contract to supply

industrial gases for the project.

Under the contract, Air Liquide was to invest in an

eight-unit industrial gases complex that would include an

air separation unit of 2,000 t/d of oxygen, a gasification

unit, a purification unit of synthesis gas and an ammonia

plant to supply hydrogen, nitrogen and ammonia. The

plants were scheduled to be commissioned in early 2016.

 

TUM Opens New Catalysis Research Center To House Research Alliance with Clariant

Munich—

The Technical University of Munich (TUM) has opened a

new world-class Catalysis Research Center (CRC) in Munich,

Germany, which will be the new home to MuniCat,

the catalysis research alliance between TUM and Clariant.

The new €84.5-million CRC is dedicated entirely to research

work, noted Clariant. It comprises over 75 state-ofthe-

art chemistry and physics laboratories, and is designed

to facilitate collaboration among the 19 CRC research

teams, which represent complementary aspects of catalysts

studies, from theory and development to technological application.

 

LG Duped into Fraudulent Payment For Naphtha Supplied by Aramco

Seoul—LG Chem

has become the victim of a scam that resulted in the company

making a $21-million payment for naphtha purchased

from Aramco Products Trading Co. to a fraudulent

bank account, according to several local business reports.

LG spokesman Song Choong-seop explained that the

company received an email that appeared to be from

Aramco Products Trading stating there had been a change

in bank accounts. The sender, which has not been identified,

was aware of the amount of money owed by LG and

requested that the amount be wired to the new account.

“We have requested an investigation by prosecutors,”

said Song, adding that his company is considering legal

action against Aramco on the grounds that it failed to protect

its email accounts.

 

China Reviewing Chloroprene Dumping

Beijing—

China’s Ministry of Commerce on 10 May began an antidumping

review of chloroprene rubber from Japan, the

U.S. and European Union (PCN, 16 May 2011, p 2).

The review is to determine whether dumping or damages

to the domestic industry would reoccur if dumping

measures were terminated. The ministry expects to complete

the review by 9 May 2017.

Duties were originally imposed in May 2005 and extended

for an additional five years in 2011.

 

German Chemical Production Increased, While Prices, Sales Fell in 1st Quarter

Frankfurt—

The German chemical industry, including the pharmaceutical

sector, had a mixed start in 2016, with production up,

but prices and sales down, according to the latest quarterly

report by Verband der Chemischen Industrie (VCI), the

German chemical industry association.

For the first three months of this year, production

“clearly improved” over the weak previous quarter, rising

2.2% over the previous quarter and 0.6% over the 2015

first quarter, said VCI. Capacity utilization was 83.6%.

From January to March 2016, chemical product prices

fell 1.3% from the last quarter of 2015 and 1.4% from the

first quarter of last year. The decline, attributed to the low

oil price, is “a new record low,” VCI noted.

The cut in prices led to a drop in sales for the third consecutive

quarter, down 0.9% compared to the previous year

fourth quarter and 3.5% from the 2015 first quarter.

The chemical business will remain difficult in the current

year, predicted VCI President Marijn Dekkers. “So

far, the overall economic development in Germany and

Europe is reaching our companies only to a limited extent,”

he said. “Exports to major markets . . . are weaker than in

the previous year. Furthermore, the fall in prices continues.

All this speaks against brisker business in the short

term.”

VCI is forecasting a 1% increase in chemical production

for 2016. However, as prices are expected to fall by 2%,

chemical sector sales are seen dropping 1% to €187-billion.

 

Mitsui Chem, SKC Announce Start-Up Of New PU System House in Mexico

Nuevo Leon—

MCNS Polyurethanes Mexico (MCNS-MX), a wholly-owned

company of Mitsui Chemicals SKC Polyurethane Co.

(MCNS), which is an equally-owned joint venture of Mitsui

Chemicals and SKC, has opened a new 13,000-t/y polyurethane

system house in Nuevo Leon, Mexico.

The $4-million facility produces and sells polyurethane

system products, and has the capability to adjust polyurethane

foam material formulations, including those derived

of polyol, to cater to customer’s individual needs.

“Our new venture will not only support our customers

and the growth of the Mexican automotive industry

through safe and stable plant operations and business activities,

but will also seek to contribute to the welfare of

the neighboring community and all our stakeholders,” said

SKC Chairman Shin Won Choi.

 

Honeywell Aiding EagleClaw Midstream In Recovery of NGLs with UOP Process

Des Plaines—

Honeywell UOP is providing a modular Russell cryogenic

gas processing plant to help EagleClaw Midstream Ventures

recover natural gas liquids (NGLs) in the Permian

Basin.

The skid-mounted modular plant will be shipped to

EagleClaw’s East Toyah plant in Reeves County, Texas.

When it begins operating, the plant is capable of processing

200-million standard cubic ft/d of natural gas to extract

NGLs. An operational start date was not given.

“Because this unit is shop-fabricated and shipped as a

modular system, it benefits from standardized design and

construction techniques that ensure fast project completion

and highly reliable performance,” noted John Gugel, vice

president and general manager for Honeywell UOP’s Gas

Processing and Hydrogen business.

Modular gas processing plants allow midstream gas

companies to expand incrementally as feed volumes increase

over time using parallel process trains, and to upgrade

facilities with additional process capabilities or to

adapt to changing feedstocks and product slates.

 

A Personal Note from the Publisher

With this issue, I

am stepping down as senior editor and publisher of Petro-

Chemical News and turning those responsibilities over to

my very capable daughter, Tammi Weir, who has been a

part of PCN for over 20 years, and an editor for the past

three years.

I have been with PCN for 39 years and have worked in

every aspect of this business. I started out in promotion

and circulation, was promoted to production assistant, became

editor of PCN in 1985 and took over my father Bill

Bland’s role as publisher in 1996. It has been a wonderful

journey, during which I have witnessed a lot of changes.

In 1977, when I first started with PCN, computers,

internet, email and fax didn’t exist. We typed the issue on

galley sheets using an electric typewriter. Typos were not

fixed using spell check or copy and paste, but were corrected

with a straight edge and razor blade on a light box.

We received the majority of our news by mail or telex from

correspondents located around the world or press releases

sent by your companies. Today, we are very grateful for

websites, the speed of email and for change.

It has been my pleasure and a wonderful experience to

be able to travel and get to know many of you personally

over the years. Many friendships and many fond memories

have been made.

I thank you for your continued loyalty and support and

wish you all the very best as I move on to the next chapter

of life—retirement and pursuing personal interests.

Solvay Agrees to Sell Solvay Indupa Stake To Unipar Carbocloro for About $202-MN

Brussels—

Solvay has signed a definitive agreement to sell its 70.59%

interest in Solvay Indupa to Unipar Carbocloro for a total

enterprise value of $202.2-million.

“Solvay’s divestment of Indupa follows our announced

early exit of our European PVC (polyvinyl chloride) joint

venture as Solvay is transforming into a specialty chemicals

group,” said Vincent De Cuyper, member of Solvay’s

executive committee.

Solvay and Ineos recently signed a binding agreement

to end their equally-owned Inovyn PVC venture ahead of

the original July 2018 schedule (PCN, 4 Apr 2016, p 2.

Solvay Indupa, in which Braskem holds the remaining

interest, has facilities for the production of 220,000 t/y of

PVC, 185,000 t/y of caustic soda and 40,000 t/y of caustic

soda pearls in Bahia Blanca, Argentina.

“In acquiring Solvay Indupa, Unipar will strengthen its

strategic position in the caustic soda and chlorine value

chain, extending its chemical footprint in PVC and allowing

for the further development of Indupa,” De Cuyper

added. The transaction is subject to customary closing

conditions and antitrust approval.

 

Bolivia Seeks Engineering Study Bids For Yacuiba Propylene & PP Project

La Paz—The

Bolivian government has invited tenders on the basic engineering

study for a propylene and polypropylene (PP) facility

to be built by state-owned YPFB at Yacuiba, Tarija, in

southern Bolivia (PCN, 18 Apr 2016, p 1).

The $2.2-billion project, for which the Central Bank of

Bolivia has granted a $1.8-million credit, will have the capacity

to produce 250,000 t/y of PP.

YPFB Chief Executive Guillermo Acha said bids must

be received by 2 Sept. 2016. Construction is expected to

begin during the second half of next year, with operations

scheduled to begin in late 2021.

Acha noted that the construction contractor will be required

to hire domestic workers and a Bolivian supplier.

 

Zhejiang Petrochem Awards Design Contract For New Refinery & PC Complex in China

Ningbo—

Zhejiang Petrochemical, owned 51% by Rongsheng Holding

Group, has awarded a design contract to three firms for a

new $15-billion refinery and petrochemical complex in

China, reported Reuters citing industry sources.

The complex, to be built in Zhoushan, involves a

400,000 b/d refinery and a 1.4-million-t/y ethylene plant.

Start-up is expected around 2020.

China Huanqiu Contracting and Engineering Corp. and

Sinopec’s Luoyang Petrochemical Engineering Corp. are

two of the three companies to receive the design contract.

The third company was not identified.

This project will be China’s “first and largest energy installation

to be built by a non-state investor,” the report

noted.

 

Lotte Chemical’s Louisiana EG Project To Use Scientific Design’s Technology

Lake Charles—

Lotte Chemical Louisiana LLC has selected Scientific Design’s

(SD) ethylene oxide/ethylene glycol (EO/EG) technology

for a 700,000-t/y EG plant to be built in Lake Charles,

La. (PCN, 2 Nov 2015, p 2).

SD said the award includes the license of process technology,

the provision of a process design package, technical

assistance and start-up services and the initial charge of

SD’s EO catalyst. A project schedule has not been given.

Samsung Engineering last year received an early works

contract to provide detailed engineering, procurement and

construction plans for the EO plant.

Lotte is erecting the plant adjacent to an ethane-based

ethylene cracker it is building in a joint venture with Axiall

Corp (PCN, 21-28 Dec 2015, p 1). The cracker is expected

to begin production in early 2019.

 

Braskem Confirms 2nd HDPE Facility Has Started Production in Veracruz

São Paulo—

Braskem, in discussing the company’s first quarter earnings,

disclosed that its Braskem Idesa joint venture has

started up the second high-density polyethylene (HDPE)

plant at the Ethylene XXI complex in Veracruz, Mexico.

The first HDPE plant came on line in early April (PCN,

11 Apr 2016, p 1). Braskem Idesa is already selling HDPE

in the Mexican market, and has made its first exports.

Braskem Idesa’s complex consists of a 1-million-t/y ethane-

based cracker, which came on stream in March, two

HDPE plants with a combined 750,000 t/y of capacity, and

a 300,000-t/y low-density polyethylene (LDPE) unit.

“The next step will be the start-up of the third and last

LDPE plant and the stabilization of operations,” Braskem

noted.

 

Sinopec Yangzi Boosting PC Production Using Honeywell UOP MaxEne Process

Nanjing—

Honeywell’s first commercial installation of its UOP Max-

Ene process has successfully entered production at Sinopec

Yangzi Petrochemical Co.’s (YPC) integrated refinery and

petrochemical facility in Nanjing, China, allowing for

higher yields of petrochemicals.

Sinopec partnered with Honeywell UOP to jointly commercialize

the process using Honeywell’ UOP’s pilot plant

technology. Honeywell UOP provided the basic engineering,

key equipment, adsorbents and technical support for

the new unit.

The MaxEne process separates full-range naphtha into

a stream rich in normal paraffins, and a second stream of

iso-paraffins, naphthenes and aromatics, Honeywell explained.

“The normal paraffins are ideal for steam crackers

because they produce high yields of light olefins. The

remaining components are perfect for catalytic reforming

units because they produce high yields of aromatics.” The

process results in up to a 40% higher yield of ethylene from

an existing naphtha cracker without loss in propylene.

 

Braskem Secures Supplies of Propylene To Meet 16% of U.S. & European Needs

São Paulo—

Braskem has entered into a long-term agreement with Enterprise

Products for the supply of sufficient propylene to

meet approximately 16% of the requirements for Braskem’s

polypropylene (PP) plants in the U.S. and Europe.

Braskem has five PP plants in the U.S. with a combined

capacity of 1,465,000 t/y of capacity, and two in Europe

with a total of 545,000 t/y of capacity. The company noted

that its U.S. and European PP plants operated at 100% of

capacity during the first quarter of this year.

Under the 15-year agreement with Enterprise, Braskem

will purchase the propylene at a price based on the

international reference for propane.

Enterprise is currently building a propane dehydrogenation

unit in Mont Belvieu, Texas, that will have the capacity

to produce 750,000 t/y of polymer grade propylene

(PCN, 14 Mar 2016, p 1). The unit is scheduled to begin

commercial operations in the second quarter of 2017.

 

Primus Signs Offtake Accord with Tauber For Marcellus Region Methanol Output

Pittsburgh—

Primus Green Energy has entered into an offtake agreement

with Tauber Oil for all of the methanol to be produced

by Primus at a yet-to-be-determined site in the Marcellus

shale region (PCN, 4 Apr 2016, p 4).

Primus plans a 160-t/d plant that will use its standardized

modular gas-to-liquids systems to convert low-cost

Marcellus gas feedstock into methanol, saving clients in

the region both production and transportation costs.

In addition to Tauber being responsible for the marketing,

sale and distribution of the methanol into the regional

market, its Interconn Resources subsidiary will be responsible

for the supply of natural gas for the Primus plant.

Methanol production is anticipated to come on line in

the fourth quarter of 2017, and Primus has said it expects

to add three additional methanol trains, eventually expanding

capacity to 640 t/d. A site location for the plant

will be announced “in the coming months,” Primus noted.

 

Lotte Chemical Finalizes Acquisition Of Some Samsung Chemical Assets

Seoul—Lotte

Chemical has completed the previously announced acquisition

of interests in Samsung Group’s chemical businesses,

according to local media reports.

Late last year, Samsung confirmed plans to sell a 49%

interest in Samsung BP Chemicals, a 90% interest in Samsung

SDI and the entire stake in Samsung Fine Chemicals

to Lotte in a transaction valued at approximately $2.6-

billion (PCN, 2 Nov 2015, p 1).

 

Iran Commissions Lorestan PE Plant

Tehran—Iran

has started commercial operations at a high-density polyethylene

(HDPE) plant in the western province of Lorestan,

according to Shana News Agency.

The plant is designed to produce 300,000 t/y of HDPE

and 30,000 t/y of butane-1 using 324,000 t/y of ethylene

feedstock supplied via the West Karoun Ethylene Pipeline.

The Iranian Bank of Industry and Mine invested €250-

million to finance development of the project.

 

CF Industries ‘Almost to Finish Line’ With Capacity Expansion Projects

Deerfield—CF Industries,

in reporting its first quarter 2016 results, said

that the company “is almost to the finish line” with its capacity

expansion projects, which are expected to be fully on

line later this year (PCN, 4 Apr 2016, p 2).

A new 3,300-t/d ammonia plant at its Donaldsonville,

La., nitrogen complex is mechanically complete, with precommissioning

and commissioning activities taking place.

The unit is part of a project that will result in the largest

nitrogen facility in the world and includes a 3,500-t/d

urea plant, which came on stream in late 2015, and a

4,500-t/d urea ammonium nitrate plant that was started

up earlier this year.

“These investments will increase our production capacity

and corresponding cash flow by more than 25%,” said

Tony Will, president and chief executive of CF Industries

Holdings.

 

Socar Signs Agreement With Air Liquide For Heydar Aliyev Oil Refinery Project

Baku—State

Oil Co. of Azerbaijan Republic (Socar) and Air Liquide

have signed license, engineering and guarantee agreements

for the Heydar Aliyev oil refinery modernization

project in Baku, Azerbaijan (PCN, 2 May 2016, p 3).

The reconstruction and modernization of the refinery is

expected to be completed in several phases by 2020. No

other details were available on the contract.

Socar last month awarded a front-end engineering design

contract to Amec Foster Wheeler for the project.

 

APNA Opens U.S. Plastic Compounds Unit

Athens—

Asahi Kasei Plastics North America (APNA) has opened a

new plastics compounding unit in Athens, Greece (PCN, 26

May 2014, p 3).

APNA earlier said the facility would have the capacity

to produce 30,000 t/y of Thermylene polypropylene, Leona

polyamide 66 and other performance plastic compounds.

APNA has begun the process to evaluate sites for a new

plastics compounding facility in Queretaro, Mexico.

 

People on the Move

Braskem—Fernando Musa has been appointed president,

replacing Carlos Fadigas, who will continue working

in the Odebrecht Group. Musa was most recently president

of Braskem America.

Ascend Performance Materials—Phil McDivitt, previously

president of the company’s nylon business, has become

president and chief operating officer.

Univar—Stephen D. Newlin has been named president

and chief executive, effective 31 May. He currently serves

as executive chairman of the board at PolyOne and will be

retiring from that position as of 12 May. Newlin will replace

Erik Fyrwald, who is leaving Univar later this month

to become chief executive of another company.

Occidental Petroleum—Vicki A. Hollub has become

president and chief executive, succeeding Stephen I.

Chazen (PCN, 21-28 Dec 2015, p 2). She was most recently

president and chief operating officer.

 

Phillips 66 Partners Reaches Agreement To Buy Sweeny Frac, Standish Pipeline

Houston—

Phillips 66 Partners (the partnership) has reached an

agreement with Phillips 66 to acquire the remaining 75%

interest in Phillips 66 Sweeny Frac LLC (Sweeny Frac)

and the Standish products pipeline, for a total consideration

of $775-million.

Sweeny Frac owns the newly built Sweeny Fractionator

One, a 100,000-b/d natural gas liquids (NGL) fractionator

at Phillips 66’s Sweeny complex in Old Ocean, Texas. It

also owns the Clemens Cavern storage facility that includes

five newly developed caverns that will have an approximate

storage capacity of 7.5-million bbls of Y-grade

NGL, propane and butane, with the capability for future

expansion (PCN, 14 Dec 2015, p 4).

Once the acquisition is complete, the partnership,

which acquired a 25% interest in Sweeny Frac this past

March, will have full ownership. The sale is expected to

close later this month.

 

JX Nippon Develops New Elastomer Type With Rubber and Plastic Characteristics

Tokyo—JX

Nippon Oil & Energy has developed a new type of elastomer,

which is easy to process, and combines the elasticity

of rubber and the cost-competitiveness of plastic, reported

Nikkei Asian Review.

Previous grades lacked flexibility and elasticity, pushing

the company to improve the feedstock mix. The new

elastomer can be produced in large quantities at low cost

and is more environmentally friendly.

The product will be introduced into the local market by

the end of fiscal 2016. Annual demand in Japan is expected

to reach approximately 1-million t/y.

 

U.S. Regulatory Clearance Is Granted For Acquisition of Nuplex by Allnex

Auckland—The

U.S. anti-trust regulatory review process for the proposed

acquisition of Nuplex Industries Ltd. by Allnex Belgium, a

subsidiary of Advent International, has been successfully

completed and approved.

Nuplex, a polymer resins producer, and Allnex, a coating

resins producer, have entered into a Scheme Implementation

Agreement whereby Allnex will acquire all outstanding

shares in Nuplex for NZ$5.43/share in cash.

Subject to the parties obtaining other necessary regulatory

approvals, the transaction is expected to be completed

in November of this year.

 

PQ Completes Merger with Eco Services

Malvern—

PQ Corp. has completed the combination with Eco Services

Operations LLC, a provider of sulfuric acid recycling services,

creating a leading global producer of inorganic specialty

materials and catalysts (PCN, 24-31 Aug 2015, p 3).

The combined business, which retains the name PQ,

will provide “mission-critical products and services to the

refinery industry, with PQ supplying catalysts necessary

for the refining of crude oil and Eco Services providing sulfuric

acid regeneration services needed in the alkylation

process,” said George J. Blitz, president and chief executive

of the combined company.

 

PGPIC Seeking Public Contributions To Finance Petrochemical Projects

Tehran—Persian

Gulf Petrochemical Industries Co. (PGPIC) said it needs

$7-billion to finance new petrochemical projects this calendar

year and is seeking public contributions.

“In the first step, we will renovate the holding’s plants

as much as possible, and will then move on to carrying out

new projects to supply domestic and international markets,”

noted Adel Nejad Salim, head of PGPIC.

In a final step, the company will consider stakes in “lucrative”

petrochemicals firms.

PGPIC has begun talks with 15 international petrochemicals

companies for completing the projects.

 

Sabic Looking to the U.S. for Supplies Of Shale Gas for Petchem Production

Riyadh—Saudi

Basic Industries Corp. (Sabic), due to a shortage of local

natural gas, is considering the U.S. for the supply of shale

gas feedstock for petrochemicals production, according to

Reuters.

“In terms of industry growth, we see growth chasing

where feedstock is competitive, and the U.S. is top of the

list,” said the report quoting Mosaed Ohali, chief financial

officer of Sabic.

Last year, the company signed its first agreement with

an unidentified party for the supply of ethane from the

U.S. to Sabic’s Wilton, Teeside, site in the UK, where its

cracker is being modified to use shale gas (PCN, 27 Apr

2015, p 2). That project is due to be completed this year.

Separately, Ohali noted that Sabic is eyeing technologies,

such as coal-to-chemicals in China. No other details

were available.

 

AkzoNobel, Royal Cosun to Process Sugar Beets for Cellulose Products

Amsterdam—Akzo-

Nobel and Royal Cosun, an agro-industrial cooperative,

have partnered to develop novel products from cellulose

side stream resulting from sugar beet processing.

The companies will combine AkzoNobel’s expertise in

the chemical modification of cellulose with Royal Cosun’s

knowledge in separating and purifying agricultural process

side streams.

“This is an exciting collaboration with a lot of possibilities,”

said Geert Hofman, general manager of performance

additives in AkzoNobel’s Ethylene and Sulfur Derivatives

business. “It has the potential to deliver a wide range of

innovative cellulose-based products . . . , addressing the

need for more sustainable raw materials from a variety of

industries, such as food and healthcare, as well as the coatings

and construction sectors.”

 

U.S. Chemicals Acquired by Maroon

Avon—Maroon

Group LLC, owned by Maroon Group management and

affiliates of equity firm CI Capital Partners, has acquired

U.S. Chemicals for an undisclosed amount.

U.S Chemicals supplies specialty chemicals to the plastics,

lubricants and CASE (coating, adhesives, sealants and

elastomers) industries.

The management team of U.S. chemicals will continue

to actively manage the business.

 

‘World’s Largest’ Ethane Vessel to Deliver Ethane to Borealis’ Stenungsund Units

Stenungsund–

Navigator Aurora, which will be the “world’s largest” ethane

carrier after its commissioning in the fourth quarter of

this year, will deliver ethane to Borealis’ production facilities

in Stenungsund, Sweden (PCN, 11 Aug 2014, p 3).

In 2014, Borealis signed a shipping agreement with

Navigator Holdings to build a ship to ensure long-term,

reliable ethane supply to Sweden. The 35,000 cubic meter

state-of-the-art vessel is equipped with dual fuel engines

and has the capacity to hold up to 20,000 tons of ethane.

The carrier will transport ethane from the Marcus

Hook, Penn., refinery to Stenungsund. Commercial operations

are scheduled to begin in the fourth quarter of 2016.

Additionally, Borealis noted that its €160-million project

at Stenungsund to upgrade and revamp four of six

cracker furnaces is proceeding according to plan (PCN, 7

Dec 2015, p 2).

The project involves upgrading the four furnaces to the

highest currently available standards in process safety and

energy efficiency. Completion is expected by 2020. The

project also includes a new unloading and storage facility,

which will begin commissioning in the fourth quarter of

this year.

 

Biochemtex & Valmet Join to Develop Process for Biochemicals from Lignin

Tortona—Biochemtex,

a subsidiary of Mossi Ghisolfi Group, and Valmet

are collaborating in a project that will combine the companies’

technologies to convert lignin into biochemicals.

The project will combine Valmet’s proprietary Ligno-

Boost technology for the extraction of purified lignin from

black liquor, with Biochemtex’s proprietary Moghi technology,

which converts lignin into biofuels and biochemicals.

The partnership will provide the biochemical industry with

a consistent lignin stream for use as feedstock to produce

bio-based thermoplastic polymer.

“Cooperation with Valmet will allow to increase the

feedstock available to produce bioPX [bio paraxylene], a

key raw material for the production of PET [polyethylene

terephthalate] made from 100% renewable sources,” said

Biochemtex Chief Executive Giovanni Bolcheni.

Existing pilot plant facilities, and a dedicated demonstration

unit under construction in Italy, “combined with

the skills and know-how of both organizations, will provide

a solid base to deliver a fast and positive outcome for this

exciting opportunity,” he added.

 

Air Products in Definitive Agreement to Sell Performance Materials Division to Evonik

Allentown–

Air Products has signed a definitive agreement to sell its

Performance Materials Division (PMD) to Evonik Industries

for $3.8-billion in cash (PCN, 21-28 Mar 2016, p 4).

Under the terms of the agreement, the operational facilities,

supplier contracts, labs, contracts, customers, and

employees and certain legal entities associated with PMD

would transfer to Evonik. Evonik plans to continue running

the PMD from Allentown, Penn.

The sale, subject to regulatory approvals and customary

closing conditions, is expected to close before the end of this

year.

Air Products previously announced its intention to spinoff

its Electronic Materials Division (EMD) to shareholders

and rename it Versum Materials. The company said it is

on track to separate EMD by the end of September and will

continue to evaluate whether debt and equity market conditions

are favorable for a tax-free spin off.

PMD and EMD are both part of Air Products’ Materials

Technologies segment.

 

M. Holland Expands Resins Distribution With Acquisition of Puerto Rican Firms

San Juan—

M. Holland Co. has expanded its thermoplastic resins distribution

business with the acquisition of sibling companies

Able International Corp. and Tril Export Corp., both

based in San Juan, Puerto Rico.

M. Holland said Able is the leading resin distributor in

Puerto Rico, while Tril is the leading resin distributor in

the Caribbean, in addition to serving customers in Central

and South America. Combined, the two companies sell

about 50-million lbs/yr of thermoplastic resins.

“This expansion will help position M. Holland as the

resin distribution leader in Latin American markets,”

commented M. Holland President and Chief Executive Ed

Holland.

 

ChemChina Finalizes $1-BN Purchase Of Machinery Producer KraussMaffei

Munich—Chem-

China, in a consortium with Guoxin International Investment

Corp. and AGIC Capital, has completed the purchase

of Munich, Germany-based KraussMaffei Group from Onex

Corp. for $1-billion (PCN, 18 Jan 2016, p 4).

Going forward, KraussMaffei will remain headquartered

in Munich and will serve as ChemChina’s principal

business entity in the operating and managing of related

machinery enterprises. ChemChina’s existing rubber machinery

and related production businesses will integrate

with the KraussMaffei Group.

“Through our strong management and technology skills

we will be able to develop several fields and strengthen

them to compete within the international market,” said

Frank Stieler, chief executive of KrassMaffei. “We are

thereby expanding our existing product portfolio, especially

in the field of machines for the production of tires. The

necessary steps will be initiated in the coming weeks.”

W. R. Grace Initials Accord for Purchase Of BASF’s Polyolefin Catalysts Business

Columbia—

W. R. Grace & Co. has signed an agreement to acquire the

polyolefin catalysts business assets of BASF for an undisclosed

amount.

BASF’s polyolefin catalysts business includes its Lynx

high-activity polyethylene catalysts technologies and its

Lynx polypropylene catalyst technologies. The acquisition

also includes production plants in Pasadena, Texas, and

Tarragona, Spain, as well as patents, trademarks and

about 170 employees worldwide.

The assets will provide Grace with significant additional

flexibility and capacity for its global polyolefin

manufacturing network, Grace noted. The transaction is

expected to close in the third quarter of this year, pending

customary closing conditions.

“This is an important addition to Grace’s strong portfolio

of polyolefin catalysts technologies,” said Grace Chairman

and Chief Executive Fred Festa. “Grace is uniquely

positioned to serve the growing needs of the polyolefins

market and benefit from operational synergies. This opportunity

is perfectly aligned with our focus on core catalysts

and materials technologies.”

 

Maharashtra Refinery and PC Complex Under Study by IOCL, BPCL & HPCL

New Delhi—

Indian Oil Corp. Ltd. (IOCL), Bharat Petroleum Corp. Ltd.

(BPCL) and Hindustan Petroleum Corp. Ltd. (HPCL) are

planning to jointly establish a refinery and petrochemical

complex in Maharashtra, India, according to local business

reports citing Dharmendra Pradhan, Minister of State for

Petroleum & Natural Gas.

Engineers India Ltd. is conducting a detailed feasibility

study for the project, which would be undertaken in two

phases and include a 60-million-t/y refinery.

IOCL, BPCL and HPCL, in consultation with the Maharashtra

government, are in the process of selecting a site

for the project.

Once the financial and operational parameters of the

complex are determined, the three companies will make a

decision on the project’s equity structure and financing.

 

Xinjiang Blue Ridge Tunhe Chem Starts PTMEG Line Using Invista Technology

Shanghai—

Xinjiang Blue Ridge Tunhe Chemical Industry JSC has

started up a new 46,000-t/y polytetramethylene ether glycol

(PTMEG) line in Changji City, China.

The line utilizes Invista’s latest methanolysis catalyst

removal technology.

“We look forward to extending the successful cooperation

between Tunhe and Invista on a more long-term prospect

involving expansion of Tunhe’s BDO (1,4 butanediol)

asset, expansion of Tunhe’s polyester assets and backward

integration into PTA (purified terephthalic acid),” said

Tunhe Chairman Li Peng.

 

Nova Chem Suspends Work at PE1 Site Due to Accident/Death of a Contractor

Joffre—Nova

Chemicals has suspended construction on its PE1 expansion

project, following the injury and death of a contractor

working on a stationary crane at the site.

The site has been secured and an investigation has begun.

“We are collaborating fully with the regulatory authorities

as they carry our their investigation,” said Bill

Greene, senior vice president of Nova. An expected restart

date was not given.

The PE1 project will add between 950-million and 1.1-

billion lbs/yr of linear low-density polyethylene (PE) capacity,

increasing the site’s PE capacity by about 40% (PCN,

23 June 2014, p 4).

When announcing the project in 2014, Nova said the

project was due to be commissioned in the fall of 2015.

Last month, the company said mechanical completion is

scheduled in the third quarter of this year, with commissioning

and start-up expected in the fourth quarter.

 

PMV Venture Declares Force Majeure; Pajaritos Death Toll Increases to 32

Pajaritos—The

Petroquímica Mexicana de Vinilo (PMV) joint venture between

Mexichem and Pemex has declared force majeure on

vinyl chloride monomer, ethylene, dichloroethane, muriatic

acid and anhydrous hydrogen chloride shipped from its

Pajaritos petrochemical complex in Veracruz, Mexico, as a

result of a 20 Apr. explosion (PCN, 25 Apr 2016, p 1).

At the same time, Mexichem Resinas Vinilicas and

Mexichem Resinas Colombia have placed polyvinyl chloride

on an allocations plan “for the month of May and subsequent

months,” Mexichem noted.

As of PCN’s press deadline, the death toll from the incident

had risen to 32, and PMV had not yet determined the

cause of the incident or extent of damage.

 

CPDC Exercises an Option to Sell Axiall Its 40% Stake in TCI Chlor-Alkali JV

Atlanta—Axiall

has confirmed that China Petrochemical Development

Corp. (CPDC) has exercised its option to sell its 40% interest

in Taiwan Chlorine Industries (TCI), a chlor-alkali joint

venture of Axiall and CPDC, to Axiall for $100-million.

In 2013, PPG Industries separated its commodity

chemicals business and merged the business with Georgia

Gulf to establish Axiall, making TCI a joint venture of Axiall

and CPDC (PCN, 4 Feb 2013, p 1).

Axiall, which currently holds a 60% interest in TCI, has

the contractual option to have PPG rather than Axiall acquire

CPDC’s 40% interest. Axiall said it is assessing the

matter.

TCI noted that it uses the most advanced membrane technology

to produce chlor-alkali. It produces liquid chlorine,

liquid caustic soda, hydrochloric acid, bleach and hydrogen.

The company has about 120,000 t/y of liquid chlorine

capacity.

 

Aramco Supporting Saudi Vision 2030 To Move Away from Oil Dependence

Dhahran—Saudi

Aramco has expressed its unequivocal support for Saudi

Vision 2030, a plan announced 25 Apr. by the Council of

Ministers to transform the Saudi economy away from its

dependence on oil.

Khalid A. Al-Falih, chairman of the company’s board of

directors, noted Saudi Vision 2030, which includes an initial

public offering of 5% of Saudi Aramco, is a “pioneering

and game-changing plan that will enable sustained economic

growth, diversification and job creation to benefit

the Kingdom and its citizens for generations to come.” He

said Saudi Aramco “will remain fully engaged as a champion

of transformation.”

Al-Falih agreed on the urgent need to shift Saudi Arabia

from an oil-based economy. “There needs to be a fundamental

shift in our economic landscape if we are to reduce

our unsustainable over-reliance on oil. Therefore,

accelerating reforms across key economic sectors, privatization

of key industries and the creation of a globally competitive

small- and medium-sized enterprise sector are essential

to delivering Saudi Vision 2030.

“The message is clear: Saudi Arabia is opening itself for

further investment by those already in the Kingdom, as

well as openly inviting potential future investors,” Al-Falih

continued. “Investment and export opportunities exist for

global companies who want to take advantage of Saudi

Arabia’s ready access to infrastructure and abundant supply

of energy. . . . The government will continue to ease

regulations to make the Kingdom one of the most attractive

locations in the world to do business.”

 

Praxair Investing in Geismar Facility To Add New CO Purification Train

Geismar—Praxair

is spending over $100-million at its Geismar, La., facility to

add a new carbon monoxide (CO) purification train to support

growing customer demand in the Mississippi River

corridor.

The 13-million standard cu ft/day train will include a

new CO cold box and other upgrades that utilize Praxair’s

own technologies. Completion is expected in the second

half of 2018.

“Our investment will result in increased supply for our

customers throughout the region as we continue to see the

growth of their own production capabilities,” said Dr.

Samir Serhan, president of Global Hydrogen. “We are

committed to serving this accelerating marketplace by expanding

our network.”

 

Air Liquide Finishes Redevelopment Of Its Bayport Industrial Complex

Houston—Air Liquide

has completed a $230-million upgrade and expansion

of its world-scale industrial complex in the Bayport industrial

district in Texas (PCN, 1 July 2014, p 4).

The project included upgrades to four state-of-the-art,

energy efficient cogeneration units to increase capacity and

extend the life of the units by more than 20 years. It also

included the upgrade and expansion of an air separation

unit, as well as additional infrastructure upgrades.

Air Liquide announced the project in 2013, when it

signed a new long-term contract to provide steam, power,

air gases and water to three LyondellBasell sites at the

Bayport industrial hub.

 

AkzoNobel Teams with Atul to Study Possible Monochloroacetic Acid JV

Gujarat—Akzo-

Nobel and Atul Ltd. have signed a letter of intent to explore

the feasibility of establishing a joint venture to produce

monochloroacetic acid (MCA) in India.

The two companies plan to build a world-scale MCA

plant at Atul’s existing site in Gujarat. The project would

use chlorine and hydrogen produced by Atul, and would

take advantage of Atul’s existing infrastructure and Akzo-

Nobel’s eco-friendly hydrogenation technology.

“As a company, we are committed to achieving growth

in India and this cooperation presents a unique opportunity

for us to participate in the Indian MCA market,” said

Werner Fuhrmann, member of AkzoNobel’s executive

committee responsible for specialty chemicals.

 

Kayan Restarts EO/EG Dependent Units

Jubail—

Sabic affiliate Saudi Kayan has notified Tadawul that as of

26 Apr. 2016 it has restarted all units at its Jubail complex

that rely on ethylene oxide (EO) and ethylene glycol (EG).

The company on 10 Apr. resumed operations of the

EO/EG plant after completing periodic scheduled maintenance

and necessary technical reforms.

Saudi Kayan, in which Sabic holds a 35% interest, has

the capacity to produce 550,000 t/y of EO and 566,000 t/y of

EG in Jubail.

 

Sergey Vasnetsov Leaving LyondellBasell

London—

Sergey Vasnetsov, LyondellBasell’s senior vice president of

Strategic Planning and Transactions, has announced his

decision to leave the company at the end of May for personal

and family reasons.

Having held the position since joining the company in

2010, Vasnetsov “has played a key role in guiding the company

to its leading industry position,” commented Chief

Executive Bob Patel. No replacement has been named.

 

People on the Move

Shin-Etsu Chemical—Yasuhiko Saitoh, currently an

executive vice president, has been named president to succeed

Shunzo Mori, who will become director and counselor.

Fumio Akiya has been named vice chairman. He is

presently an executive vice president. The appointments

will be formally decided at a board of director’s meeting on

29 June.

China Petrochemical Development Corp.—Lin

Keh-ming has been appointed chairman, effective immediately,

to replace Shen Ching-ching, who has resigned for

health reasons. Lin has been a member of the board.

Amec Foster Wheeler—Dr. Jonathan Lewis has been

appointed chief executive, effective 1 June, to replace interim

chief executive Ian McHoul, who will remain as chief

financial officer. Lewis is currently at Halliburton as senior

vice president of the Completions and Production Division

and a member of the executive committee.

BASF Vietnam—Tanachart Ralsiripong, most recently

local business manager – ASEAN, Intermediates, has been

named managing director of BASF Vietnam, effective 1

May. He succeeds Petrus Ng, who will become managing

director of BASF Thailand.

 

Arkema Joins Project to Recycle PMMA To Make New Thermoplastic Materials

Colombes—

Arkema has signed an agreement to join Reverplast—a

project aimed at introducing recycled materials, namely

polymethyl methacrylate (PMMA), into the production of

new thermoplastic materials.

The Reverplast project is part of new measures

launched by the French government to assist companies in

their circular economy approach based on committing to

green growth. “Given the growing scarcity of raw materials,

the circular economy goes well beyond mere recycling;

it also has to contribute to securing supply to fast growing

markets and to minimizing extraction at source,” Arkema

explained.

Altuglas PMMA best meets the criterion, the company

noted, as it is “able to be regenerated into its original

monomer and so be reintroduced into the new ‘resins’

manufacturing process.”

Accordingly, the Reverplast project aims to create an

end-of-life PMMA recovery stream to obtain the new

acrylic resins. The resins will then be used to manufacture

thermoplastic composite materials.

Other partners in the project include Canoe, Paprec,

Indra and Plastinov.

 

PTTGC Firming Partners, Financing And Design of Ohio Ethane Cracker

Bangkok—PTT

Global Chemical’s (PTTGC) plans for an ethane cracker

and petrochemical complex in Belmont, Ohio, are expected

to be finalized in terms of partnership, finance and design

in early 2017, reported the Bangkok Post, citing PTTGC

Chairman Prasert Bunsumpun.

The $5.7-billion complex will use shale gas from the

Marcellus basin and will be designed to produce 1-million

t/y of ethylene, 700,000 t/y of high-density polyethylene

(HDPE), 500,000 t/y of ethylene glycol and 100,000 t/y of

ethylene oxide (PCN, 16 Nov 2015, p 1).

PTTGC earlier awarded Technip a contract for the supply

of its ethylene technology and the process design package

for the cracker, and selected Ineos’ Innovene S process

for the HDPE plant.

 

Amec Foster Wheeler Wins Feed Contract To Modernize Heydar Aliyev Oil Refinery

Baku—

Amec Foster Wheeler has been awarded a front-end engineering

design contract by State Oil Co. of Azerbaijan Republic

(Socar) for the modernization of the Heydar Aliyev

oil refinery in Baku, Azerbaijan.

In an alliance with Socar Foster Wheeler Engineering,

Amec Foster Wheeler’s scope of work includes the development

of several facilities and the integration of technologies

by other providers at the refinery to increase the refinery’s

capacity and improve the quality of fuel produced.

A number of existing facilities will also be revamped.

Amec Foster Wheeler’s portion of the project is scheduled

for completion in the first quarter of 2017, while the

whole refinery modernization process is expected to be

completed in several phases by early 2020.

In 2011, Socar completed a pipeline for the transport of

dry gas from the refinery to its Azerikimya subsidiary’s

ethylene and polyethylene facilities at Sumgayit in Azerbaijan

(PCN, 15 Aug 2011, p 4).

 

BioAmber Secures C$10-Million Loan To Grow Renewable Chems Business

Sarnia—Bio-

Amber Sarnia, a joint venture of BioAmber and Mitsui &

Co., has secured a C$10-million loan from BDC Capital to

strengthen the balance sheet and increase the working

capital of the venture’s bio-succinic acid plant in Sarnia,

Ontario, Canada (PCN, 15 Feb 2016, p 3).

BioAmber Sarnia recently began commercial scale production

of bio-succinic acid at its new 30,000-t/y plant. The

facility, which uses glucose as feedstock, is expected to

reach full capacity in 2017.

“The financing announced today will enable BioAmber

Sarnia to expand its working capital and grow its renewable

chemicals business,” said Jerome Nycz, executive vice

president of BDC Capital.

“By supporting companies that invest in clean technologies,

we will help diversify and strengthen our economy

while also generating jobs and prosperity for the longterm,”

Nycz explained.

The loan is subject to completion of certain customary

conditions.

 

Mofcom Maintains Anti-Dumping Duties On PA6 from U.S., EU, Russia & Taiwan

Beijing—

China’s Ministry of Commerce (Mofcom), following an expiry

review that began on 22 Apr. 2015, has decided to

maintain measures against polyamide 6 (PA6) from the

U.S., EU, Russia and Taiwan for five years (PCN, 29 June

2015, p 4).

The ministry has determined that “if the anti-dumping

measures were terminated, the dumping of [PA6] may continue

or recur in China and their damages made to the

mainland industry may continue or recur.”

 

BASF Opens New Specialty Amines Unit

Nanjing—

BASF has inaugurated a new specialty amines production

plant at its existing site in the Nanjing Chemical Industry

Park in Nanjing, China.

The new facility produces polyetheramines and dimethylaminopropylamine.

The plant complements existing

facilities in the U.S. and Germany, the company noted.

“This new production plant improves our flexibility to

better and quicker serve our customers by ensuring a stable

supply in the Asia Pacific region,” said Narayan Krishnamohan,

senior vice president, BASF Intermediates Asia

Pacific.

 

Socar Polymer Arranges Product Sales

Baku—Socar

Polymer has arranged for the sale of high-density polyethylene

(HDPE) and polypropylene (PP) from plants under

construction at the Sumgayit Chemical Industrial Park in

Azerbaijan to be handled by subsidiaries of State Oil Co. of

Azerbaijan Republic (Socar), according to the Azerbaijan

Business Center.

Socar Polymer, a venture of Socar, Pasha Holding, Azersun

Holding and Gilan Holding, expects to commission

facilities for the production of 120,000 t/y of HDPE and

180,000 t/y of PP in 2018 (PCN, 25 Jan 2016, p 2).

The Socar Marketing & Economic Operations Dept. will

be responsible for sale of HDPE and PP locally, while Socar

Trading will be responsible for foreign sales.

 

Clariant Discloses Strategy in China With Focus on 5 Local Components

Shanghai—

Clariant has unveiled steps it plans to take to become a

“China insider,” focusing on five local components (5Ls)—

local insight, competitiveness, empowerment, innovation

and partnership.

The 5Ls strategic framework is intended to bring the

Greater China region of Clariant into more focus, Clariant

explained. The company is taking decisive measures to

manage this market differently, including the relocation of

Christian Kohlpainter, member of Clariant’s executive

committee, to China as of 1 May.

“China is a decisive market for Clariant,” said Kohlpainter.

“When we look at the specialty chemicals market

in China, we expect growth of about 7% per year. There is

a clear trend for more consumption driven growth, with

increasing consumer demands and a shift towards innovative

products and service offerings.”

Jay Kreibaum, regional head for Clariant in Greater

China, provided details on the 5Ls plan. He noted the One

Clariant Campus, on which construction is set to begin at

the end of this year to house the company’s regional headquarters

and a regional innovation center.

Additionally, Clariant intends to invest 40% of its

global investments in China during 2017.

“Our vision is to support China’s transformation with

our innovative and sustainable solutions. Through our 5Ls

strategic framework, Clariant is continuing to extend the

depth and breadth of our vision in China’s changing business

landscape as we become a true China insider,” Kreibaum

said during Chinaplas 2016. “We will be able to focus

on those segments relevant to China’s development

going forward, enhance our innovation activities, take a

more active part in the collaboration with partners, and

improve our routes to market in order to help bring sustainable

development here to benefit the rest of the world.”

 

NKNK Starts Up Purification Unit

Nizhnekamsk—

Nizhnekamskneftekhim (NKNK) has started up a glycol

purification unit in the ethylene glycol (MEG)-1 unit of its

ethylene oxide plant in Nizhnekamsk in Russia’s Tatarstan

Republic.

Pilot-scale tests have shown that the quality of MEG

meets the requirements of polyethylene terephthalate and

synthetic fiber producers.

The company said it plans to install a similar unit in its

MEG-3 facility.

 

Society of Plastics Engineers Names Three Dow Researchers as Fellows

Midland—The Society

of Plastics Engineers (SPE) has elected three Dow researchers

among the newest Fellows of the society to be honored

for their outstanding contributions in plastics science,

engineering, or management.

The Dow honorees include Bharat Chaudhary, principal

research scientist. He has more than 26 years of experience

leading research and development in a variety of areas

related to polymer modification.

Stephane Costeux, research and development fellow,

has applied his expertise in rheology, materials science,

polymer processing and modeling to the design of commercial

high-melt strength resins and new foam materials, and

to the advancement of nanocellular foam technology.

Finally, Mridula Kapur, a materials science fellow in

Dow’s Packaging and Specialty Plastics business unit, is

being recognized for her research work in a number of areas

including a novel multifunctional analyzer approach

for product quality control; combination of catalyst, process,

and materials science with application performance

requirements resulting in new, enhanced performance

polyethylene product portfolios; and intellectual property

protection.

They will be honored at SPE’s Antec 2016 conference on

23-25 May 2016 in Indianapolis, Indiana.

 

Covestro Announces Goal to Reduce Its CO2 Emissions in Half by 2025

Leverkusen—Covestro

said it has set “ambitious” sustainability targets for

itself with plans to reduce its specific carbon dioxide (CO2)

emissions per ton of product by 50% by 2025 using a base

line of 2005.

“We set our first target of a 20% reduction of CO2 emissions

in 2005 and hit this within six years. We then set a

target of 30% and achieved that within three years. The

next target was 40%, and, while we are still on the home

stretch, we are already planning for a new record,” explained

Richard Northcote, chief sustainability officer.

The company noted it is joining global governments,

civil society and forward-looking private sector businesses

in making a commitment to the United Nations Sustainability

Development Goals.

 

NAC Global Signs LoI for Merger With Swiss Heights Engineering

Jacksonville—NAC

Global Technologies Inc. (NACG) has signed a letter of intent

to acquire Swiss Heights Engineering SA, a Lugano,

Switzerland-based company that holds 100% of the Bellelli

group of companies and 100% of the Petrochem Industrie

group of companies.

NACG said the proposed merger would “vastly” expand

its business size and global footprint in the petrochemical,

chemical processing, engineering services and energy markets.

The acquired companies would become wholly-owned

subsidiaries of NACG.

Additional details will be disclosed once a definitive

agreement is executed, which is expected during the second

quarter of this year.

Mexichem Confirms Explosion, Deaths At VCM Plant of PMV Joint Venture

Pajaritos—Mexichem

has confirmed a 20 Apr. explosion and resulting

deaths at the Clorados III vinyl chloride monomer (VCM)

plant belonging to its Petroquímica Mexicana de Vinilo

(PMV) joint venture with Pemex at the Pajaritos petrochemical

complex in Veracruz, Mexico.

Following the explosion, all pipelines and valves were

turned off and the plant was shut down. After the facility

is cooled, work will begin to determine the cause of the accident

and to assess the damage, Mexichem said.

The company also confirmed the deaths of at least 24

workers, with a total of 136 injured workers taken to area

hospitals.

In 2013, PMV launched a project to increase the site’s

VCM production to its nameplate capacity of 405,000 t/y

from an actual production rate of about 200,000 t/y (PCN, 7

Mar 2016, p 3).

 

Unipetrol Sets Damaged Cracker Restart; PE Plant Construction to Begin in June

Litvinov—

Unipetrol expects in August to begin partial operation of

the steam cracker damaged by a fire last August at its Litvinov,

Czech Republic, complex (PCN, 7 Dec 2015, p 1).

Chief Executive Marek Switajewski said the company

has transported four new furnaces to the site and plans to

complete all repairs in July. It is expected the 544,000-t/y

ethylene plant will resume operations at 80% of capacity in

August and achieve maximum capacity utilization in October

2016.

“In the first quarter of 2016 we also proceeded with intensive

preparatory works for construction of the new polyethylene

(PE) unit,” Switajewski added. “The main part of

the production, the construction of the modern production

facility, will begin in June.”

Unipetrol last year awarded Technip the engineering,

procurement and construction contract for a 270,000-t/y

high-density PE plant in Litvinov based on Ineos’ Innovene

S technology (PCN,1 Feb 2016, p 3).

 

Invista Successfully Starts Up Facility For Production of HMD in Shanghai

Shanghai—Invista

has successfully started up a new 215,000-t/y hexamethylene

diamine (HMD) facility at the Shanghai Chemical

Industry Park in China (PCN, 31 Mar 2014, p 1).

“Asia—and China in particular—remains a region with

long-term potential for demand growth in nylon 6,6, and

the new HMD facility enables us to better support our customers,”

noted Bill Greenfield, president of Invista Intermediates.

The HMD facility is part of an approximately $1-billion

project that includes a new 150,000-t/y nylon 6,6 plant and

300,000-t/y adiponitrile unit. All the plants are based on

Invista’s advanced technologies. Expected start-up of the

remaining plants was not given.

 

Westlake Begins Ethylene Expansion At Petro 1 Olefins Unit in Louisiana

Lake Charles—

Westlake Chemical told PCN it has begun an ethylene expansion

at its Petro 1 olefins unit in Lake Charles, La.

(PCN, 24 Nov-1 Dec 2014, p 1).

The expansion, being done during a planned turnaround

that is expected to last approximately 80 days, will

increase ethylene capacity at the site by about 250-million

lbs/yr to a total of around 1.5-billion lbs/yr.

In 2014, Westlake awarded Technip a contract to provide

detailed engineering and procurement services for the

expansion. At the time, Westlake said it planned to invest

more than $330-million in the project.

 

Technip to Supply Proprietary Equipment For S-Oil’s Fluid Catalytic Cracking Unit

Ulsan—

Daelim has awarded Technip a contract by to provide its

proprietary equipment for the “world’s first” commercial

high severity catalytic cracking (HS-FCC) unit at S-Oil’s

refinery in Onsan, S. Korea (PCN, 20 July 2015, p 2).

The HS-FCC unit, being built as part of an expansion of

S-Oil’s existing residue conversion facilities at the refinery,

cracks heavy hydrocarbons into lighter olefins, such as

propylene, and lighter fuels, such as gasoline.

Last May, a consortium of Daelim and Daewoo Engineering

received an order from S-Oil to build a $4.1-billion

refinery and olefins project at S-Oil’s Onsan refinery that

is planned for completion in the first half of 2018.

 

LyondellBasell Initiates Planned Boost Of Corpus Christi Ethylene Capacity

Houston—LyondellBasell,

in reporting its first quarter 2016 results, said it

has begun an ethylene capacity expansion at its Corpus

Christi site in Texas (PCN, 8 Feb 2016, p 1).

The expansion, being performed during a planned

maintenance turnaround, will add 800-million lbs/yr of

ethylene capacity. The company expects to ramp up toward

full utilization of the expanded capacity during the

third quarter.

 

Kuraray America Completes Construction Of New Bayport Polyvinyl Alcohol Plant

Houston—Kuraray’s U.S. subsidiary Kuraray America has completed

construction of a new polyvinyl alcohol (PVA) plant in Bayport,

Texas, costing approximately $300-million.

The 40,000-t/y facility “is capable of integrated manufacturing

from dealing with the raw material vinyl acetate

monomer to creating finished products, and is highly costcompetitive

owing to its ability to use shale gas and other

inexpensive raw materials and fuels,” the company noted.

With this plant, Kuraray now has a total worldwide

PVA production capacity of 361,000 t/y.

 

NWIW Cancels Tacoma Methanol Project Following Careful Review & Evaluation

Tacoma—

Northwest Innovation Works (NWIW), after a careful review

and evaluation, has decided to cancels plans for a new

methanol facility on the Port of Tacoma site (PCN, 18 Apr

2016, p 2).

Plans for the project included a two-phase, $3.6-billion

natural gas-to-methanol facility that would include up to

four lines, each with a capacity of 5,000 t/d using Johnson

Matthey’s ultra-low emission reforming technology.

NWIW’s decision to terminate the project was based on

several factors, including the length of time it would take

to resolve pollution that remains at the former smelter site;

the lack of time to conduct necessary due diligence and

environmental analysis, and the various proposals to

change the regulatory requirements for the site, which

have injected additional risk into the process.

“Given what we know about the site and the process going

forward, we estimate that we would need at least three

more years of development activities to perform the necessary

due diligence, public process, and environmental

analysis,” NWIW President Vee Godley said.

“While we do not see a way forward with the Port of Tacoma

to realize this vision at this location, we remain

committed to building facilities that offer a cleaner way to

make products necessary for daily life, and to investing

billions in local communities in the Pacific Northwest,”

noted Godley. The company plans to build similar projects

at Port of Kalama, Wash., and Port Westward, Oregon.

 

Malaysia Receives Proposal for 2nd Ammonia Plant in State of Sabah

Sipitang—Malaysia’s

Sabah state cabinet has accepted a proposal from an unidentified

petroleum firm for construction of a second ammonia

plant in the state, Malaysian sources reported.

State Deputy Chief Minister Raymond Tan Shu Kiah

said the project, costing between $3-billion and $5-billion,

would be the largest gas to liquid project in the Sipitang

Oil and Gas Industry Park (SOGIP) and turn the state into

a world-class petrochemical hub.

Petronas Chemicals Group (PCG) is currently completing

the first ammonia and urea facility in SOGIP (PCN, 14

Mar 2016, p 3). Tan said PCG’s plant, designed to produce

740,000 t/y of ammonia and 1.2-million t/y of urea, is on

schedule to begin commercial production in the third quarter

of this year, marking the start of Sabah’s petrochemical

industry.

 

DSM Opens New Research & Tech Center In Ranjangaon for Engineering Plastics

Pune—DSM

has opened its new research and technology center for engineering

plastics in Ranjangaon, Pune, India.

DSM will be able to work closely with customers in supporting

new product and application development using a

wide variety of equipment for material and application

testing, including injection molding, polymer characterization,

physical property testing and thermal and thermal

analysis, the company explained.

The facility, capable of providing test data for DSM’s

wide portfolio of engineering plastics, also includes a laboratory-

scale twin screw extruder. New testing equipment

and capabilities can be added as needed.

 

Indorama Ventures Lifts Force Majeure Declared on Clear Lake EO/EG Facility

Houston—

Indorama Ventures has lifted the force majeure declared

on ethylene oxide (EO) and ethylene glycol (EG) at its Indorama

Ventures Oxide and Glycols Ltd. facility in Clear

Lake, Texas (PCN, 29 Feb 2016, p 2).

The force majeure, declared on 16 Feb. 2016, was the

result of a mechanical problem, which occurred while

changing a catalyst. The plant has returned to normal

operations, Indorama said.

Indorama Ventures Oxide and Glycols has a total capacity

of 550,000 t/y of EO and EG.

 

Competitive Pressures Continue to Rise For EU Chem Sector, Says Cefic Report

Brussels—

Despite growing global demand for chemicals and better

environmental and energy efficiency performance of the

EU chemical industry, competitive pressures on the sector

keep rising, according to a new report by Cefic, the EU

chemical industry council.

The world landscape of the industry is changing rapidly.

China continues to dominate and is planning an ambitious

industrial policy strategy to take its chemical industry

to the next stage of development, Cefic noted. The

U.S., which is riding the shale gas boom, is challenging the

EU chemical industry, and in the Middle East, Saudi Arabia

is embarking on an ambitious strategy aiming to increase

downstream production of chemicals.

By comparison, the European chemical industry faces

high energy and feedstock costs and a complex regulatory

environment, resulting in declining export competitiveness.

Producing ethylene in Europe is twice as expensive

as in the U.S. This is boosting profits abroad and attracting

billions of dollars in investment, which Europe is missing

out on.

“It is crucial for Europe to enable this sector to innovate

and transform from the existing asset base, to allow it to

act as enabler of key materials and supplier for other sectors

in Europe, also in the next decades,” said Marco Mensink,

incoming Cefic director general.

“Keeping Europe an attractive place for chemical investment

requires urgent action on the cost of energy and

feedstock and on better regulation.” He predicted that

“90% of global GDP growth will happen outside the EU in

the coming decades, of which we need to take our share.

Growth and jobs are highly dependent on a strong domestic

business climate.”

 

People on the Move

MHG—Stephen Croskrey will join the biopolymer

manufacturing firm as chief executive, effective immediately.

Previously chief executive of Armor Holdings Products,

he succeeds Paul A. Pereira.

Univar—David Jukes has been named executive vice

president, and president of Univar USA and Latin America,

effective 1 June. He has been serving as president of

Europe, Middle East and Africa (EMEA), Latin America

and Asia Pacific.

Chris Oversby, who has been president of Global Oil,

Gas and Mining since 2012, has been appointed to the new

role of president, Univar EMEA. He will relocate to Surrey,

UK, later this year

 

Petro Rabigh JV Commences Operations At Expanded Rabigh Ethane Cracker

Rabigh—Petro

Rabigh, a joint venture of Saudi Aramco and Sumitomo

Chemical, begun full operations on 19 Apr. at its ethane

cracker expansion in Rabigh, Saudi Arabia (PCN, 14 Mar

2016, p 1).

The expansion, part of the Rabigh Phase II project, increased

the cracker’s production capacity to 1.6-million t/y

from 1.3-million t/y.

Phase II, expected to be completed in September, includes

units to produce ethylene propylene rubber, thermoplastic

polyolefins, methyl methacrylate, polymethyl

methacrylate, low-density polyethylene/ethylene vinyl acetate,

paraxylene/benzene, cumene and phenol/acetate.

In addition to the ethane cracker, the complex currently

has 900,000 t/y of propylene capacity and downstream

units for the production of polyethylene, polypropylene,

propylene oxide, ethylene glycol and butene-1.

 

BASF Opens New World-Scale Facility In the UK to Produce Bioacrylamide

Bradford—BASF

has opened a new world-scale bioacrylamide (BioACM) production

facility at its Bradford, UK, site.

“With the start-up of the BioACM plant at Bradford, we

will increase our operational efficiency and supply reliability

for polyacrylamide, whilst securing the location where

we have a long history and strong relationships,” said

Christian Fischer, president of BASF’s Performance

Chemicals Division.

The enzymatic process for producing the acrylamide

consumes less energy and produces less waste. It operates

at ambient temperature and normal atmospheric pressure

and generates fewer interfering byproducts for easier

downstream processing.

Bradford is the company’s polyacrylamides production

hub. “This major investment will help to ensure the longterm

future of one of the UK’s largest chemical manufacturing

facilities,” the company noted.

BASF said it is actively investigating potential BioACM

projects at other locations, including Asia Pacific.

 

TSRC’s Lam Elected President of IISRP; Executive Committee Members Named

Houston—TSRC

Corp. Senior Vice President Hendrick Lam has been elected

president international of the International Institute of Synthetic

Rubber Producers (IISRP) for 2016-2017.

Lam, who will also serve as president to IISRP’s Asia

Pacific Section, succeeds Greg Nelson, who has become

past president international.

Other members appointed to IISRP’s executive committee

for the 2016-2017 year are: Yaumasa Yamokoshi of

Asahi Kasei Chemicals as Asia Pacific vice president; Ralf

Irmert of Trinseo and Enrico Lucchese of Versalis as president

and vice president, respectively, of the EMEA Section;

Peter Herzog of TSRC Dexco Polymers and Robert Handlos

of Firestone as president and vice president, respectively,

of the Americas Section, and Ken Hertl of Goodyear

Chemical as treasurer.

Abraham Brink of Karbochem will continue to serve as

a member of the executive committee, along with IISRP

Managing Director, Chief Executive, Assistant Treasurer

and Secretary Juan Ramon Salinas.

 

BASF Signs MoU with Iranian Firm To Build PC Complex in Asaluyeh

Tehran—BASF has

signed a memorandum of understanding (MoU) with an

Iranian petrochemical company to construct a “huge” petrochemical

complex in Asaluyeh, according to a report by

Mehr News Agency, which PCN could not confirm.

The MoU, valued at €6-billion, involves the production

of ethylene in the first phase and various grades of polyethylene

in the second phase. BASF will purchase some of

the products, with the remainder being exported.

“Final talks are being held with BASF on gas sale

prices, as well as creation of processing units and value

chain, and the final agreement will soon be sealed,” said

the report citing Parviz Sahafzadeh, deputy director of

Iran’s Petrochemical Employers Assn.

“Apparently, the first deals for development of petrochemical

industries in the post sanction era will be inked

with Total and BASF,” he added.

Last month, National Petrochemical Co. of Iran signed

an MoU with Total of France for a petrochemical complex

to be built on the coast of Iran (PCN, 21-28 Mar 2016, p 3).

 

Avantium Raises Funds to Use Toward Commercializing Its YXY Technology

Amsterdam—

Avantium has raised €20-million in a financing round to be

used to commercialize its YXY technology for producing

polyethylenefuranoate (PEF), a 100% bio-based packaging

material (PCN, 21-28 Mar 2016, p 4).

The investments are being made by PMV, an independent

investment company for Flanders; FPIM, a federal

holding and investment company in Belgium, and Avantium’s

existing shareholders.

Avantium’s “roll-out” plan includes construction of a

reference plant, with a capacity of up to 50,000 t/y, in Antwerp,

Belgium. It will be the “world’s first” commercial

facility to produce furandicarboxylic acid (FDCA), the

building block for PEF.

Last month, Avantium and BASF signed a letter of intent

to establish a joint venture for the production and

marketing of FDCA, as well as the marketing of PEF. The

partners intend to license the YXY technology for industrial

scale applications.

 

Sabic’s Strengthening Strategy Includes Acquisitions & Sale of Some Businesses

Riyadh—

Sabic, as part of its efforts to consolidate operations, increase

efficiency and reduce costs, is considering acquisitions,

as well as the sale of some assets, reported Reuters,

citing Acting Chief Executive Yousef Abdullah al-Benyan.

In the fertilizer sector, the sale of its 50% interest in

Ibn Al-Baytar to Sabic affiliate Saudi Arabia Fertilizers

Co. (Safco) is being evaluated.

Safco, at the same time is looking to invest in ammonia,

urea and specialty urea projects outside of Saudi Arabia.

Sabic is also considering the sale of portions of its specialties

plastics business, particularly in Asia and the U.S.

“I think by the end of this year, we should really know

which one to let go,” Benyan said.

Regarding possible acquisitions, he noted: “It is all

about chemicals and polymers, our core business products

that we need to strengthen, but the second part is also

technology.”

 

EPA Annual U.S. GHG Inventory Shows 9% Drop in Emissions over Last 10 Yrs; API Says Report Is ‘Seriously Flawed’

Washington—

The U.S. Environmental Protection Agency’s (EPA) newly

released 21st annual Inventory of U.S. Greenhouse Gas

Emissions and Sinks (GHG Inventory) shows a 9% drop in

GHG emissions since 2005.

Total U.S. GHG emissions were 6.108-billion tons of

carbon dioxide equivalent in 2014. By sector, power plants

were the largest source of emissions, accounting for 30% of

total GHG gas pollution, followed by the transportation

sector at 26%, and industry and manufacturing at 21%.

EPA noted that a 1% increase in GHG emissions between

2013 and 2014 was driven by increased fuel use,

largely due to increased demand for heat during the winter

and in the transportation sector.

National GHG emissions are going down over the long

term, but minor variability year-to-year is to be expected,

said EPA, adding that there has been tremendous momentum

in the energy sector toward low-carbon solutions over

the last decade.

The inventory covers seven key GHGs—carbon dioxide,

methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons,

sulfur hexafluoride and nitrogen trifluoride.

EPA explained that it revises methods in the annual

GHG Inventory whenever new, improved data become

available. This year’s inventory incorporates significant

new emissions data from EPA’s Greenhouse Gas Reporting

Program and other sources. “Data on oil and gas show that

methane emissions from the sector are higher than previously

estimated. The oil and gas sector is the largest emitting

sector for methane and accounts for a third of total

U.S. methane emissions,” EPA stated.

Separately, the American Petroleum Institute (API)

said EPA’s inventory is “seriously flawed and inconsistent

with previous EPA reports and other scientific research.”

Kyle Isakower, API’s vice president of regulatory and

economic policy, commented: “EPA’s inventory has consistently

shown a downward trend in emissions even as oil

and natural gas production has soared. Somehow, in this

year’s inventory, using a flawed new methodology, EPA

has erased that progress from its historic data.”

Since 2000, the industry’s investments in zero- and lowcarbon

technologies have totaled $90-billion. “EPA’s prior

inventories reflect these investments . . . in reducing methane

and other emissions. It doesn’t make sense that all of

a sudden those reductions would stop,” Isakower said. “We

think these new figures are not an accurate reflection of

science or reality.”

 

ONGC Mangalore to Supply Paraxylene To Feed JBF’s PTA Unit in Karnataka

Mangalore—

JBF Industries confirmed that its JBF Petrochemicals subsidiary

has entered into a long-term agreement with

ONGC Mangalore Petrochemicals (OMPL) for the supply of

paraxylene to JBF’s purified terephthalic acid (PTA) plant

in Mangalore, India (PCN, 28 Jan 2013, p 1).

JBF Petrochemicals expects to commission the 1.25-

million-t/y PTA facility, which is based on BP’s latest technology,

by June of this year.

Under the10-year agreement, OMPL will supply paraxylene

through a dedicated pipeline, an industry source

explained. Paraxylene supply may be extended for an additional

five to 10 years, with the consent of both parties.

 

Muntajat & Milaha Extend Agreement For Export of Qatari Petrochemicals

Doha—Qatar

Chemical and Petrochemical Marketing and Distribution

Co. (Muntajat) and Qatar Navigation (Milaha) have signed

a one-year feeder contract for the export of petrochemicals

from Qatar, extending their previous two-year agreement

(PCN, 21 July 2014, p 3).

The contract, which is in effect from 1 Apr. 2016 to 31

Mar. 2017, calls for Milaha to transport up to 150,000

twenty foot equivalent units of petrochemicals.

Milaha said it will support Muntajat in the optimization

of vessel sizes to improve operational efficiency and

reduce the number of weekly calls required at the port of

Mesaieed. Milaha has also introduced fixed berthing windows

in Doha, reducing the possibility of delays at Doha

Port and improving schedule reliability for Muntajat at

Mesaieed.

Muntajat is responsible for the marketing, sales and

distribution of all petrochemicals produced in Qatar.

 

Jubail United Petrochemical Plant Fire Kills 12 & Injures 11 in Saudi Arabia

Jubail—Jubail

United Petrochemical Co., an affiliate of Sabic, experienced

a fire on 16 Apr. at a chemical facility in Jubail Industrial

City, Saudi Arabia, killing 12 people and injuring 11.

The fire, which began during maintenance of the plant,

was extinguished immediately. Smoke inhalation contributed

to the death and injuries.

The company produces ethylene, polyethylene, ethylene

glycol and linear alpha olefins at the site.

 

Johor Eyes Ban on PS and Plastics

Iskandar Puteri—

Malaysia’s Johor State is planning to ban the use of polystyrene

(PS) and other plastics in containers in order to

protect the environment, Bernama news agency reported.

To accomplish this plan, the Johor Biotechnology and

Biodiversity Corp. is preparing a working paper on the use

of biodegradable and biocompostable containers to replace

PS and plastics, according to the report citing State Health

and Environment Committee Chairman Ayub Rahmat.

He said the ban is expected to be announced at the end

of next year.

Petronas Scrapping Elastomers Portion Of Rapid Project Being Built in Johor

Pengerang—

Petronas Chemicals Group (PCG) has cancelled the $1.3-

billion elastomers project, which was planned as part of the

Refinery and Petrochemicals Integrated Development

(Rapid) project in Johor, Malaysia (PCN, 9 Nov 2015, p 1).

“The decision was based on a review which was conducted

on various key aspects of the elastomers project,

including the product’s market outlook and project return

on investment,” the company explained. “The project cancellation

is expected to improve the overall returns of

PCG’s investments.”

PCG last November acquired from Petronas Refinery

and Petrochemical Corp. (PRPC) the entire equity in three

companies participating in the Rapid project. The RM

13,000 investment included PRPC Glycols, PRPC Polymers

and PRPC Elastomers.

The initial total projected investment cost for the glycols,

polymers and elastomers segments was about $3.9-

billion and included a combined capacity of 3.5-million t/y.

Cancellation of the elastomers project will reduce capacity

by 350,000 t/y and project cost by $1.3-billion.

The commencement date for PRPC Polymers and PRPC

Glycols is on schedule to start in 2019.

Petronas’ Rapid project consists of a 300,000-b/d refinery,

expected to be operational by early 2019, and a petrochemical

complex with the capacity to produce over 7-million

t/y of products.

 

CEL Signs Definitive Agreement to Invest In 50% Interest in OCI NV’s Natgasoline

Houston—

Consolidated Energy Ltd. (CEL) has entered into definitive

agreements to acquire a 50% stake in OCI’s Natgasoline

subsidiary, which is constructing a methanol production

plant in Beaumont, Texas (PCN, 21-28 Mar 2016, p 2).

As part of the agreement, CEL will inject $630-million

in equity and an additional $50-million shareholder loan

via its G2X subsidiary. Combined with OCI’s existing equity

of $520-million and shareholder loans of $511-million,

CEL’s investment will complete the funding requirements

for the project.

The methanol plant is expected to have a capacity of up

to 1.75-million, based on Lurgi’s MegaMethanol technology,

and will be the “United States’ largest methanol production

facility,” OCI said. Production is expected to start

in the second half of 2017.

CEL, owned by the Proman Group and its long-term

partner Helm, will lead efforts to market and distribute

the methanol. Proman and G2X will contribute key management

personnel and will provide technical leadership in

the start-up, operations and maintenance of the facility.

“The addition of the world-scale Natgasoline investment

to our global portfolio allows our group to expand in

North America and to better serve our customers worldwide

with high quality competitively priced methanol,”

noted David Cassidy, chief executive of Proman and chairman

of CEL.

 

Pembina & PIC Commit to Joint Study For Integrated PP Project in Alberta

Calgary—

Pembina Pipeline Corp. and Kuwait Petroleum Corp.’s Petrochemical

Industries Co. (PIC) subsidiary are undertaking

a joint feasibility study for a world-scale combined propane

dehydrogenation and polypropylene (PP) upgrading facility

in Alberta, Canada.

The project, which could consume about 35,000 b/d of

propane and produce up to 800,000 t/y of PP, represents an

opportunity to develop crucial new market demand for propane

in Alberta, noted Pembina.

The two companies will conduct a detailed technical, financial

and commercial study to determine the viability of

the project. The study is expected to take approximately

six months, followed by Pembina and PIC approval to proceed

to front-end engineering design. A final investment

decision is expected in mid-2017, and, subject to necessary

approvals, operations are targeted to begin by 2020.

“This project potentially builds on both Pembina’s position

as the largest supplier to Alberta’s existing petrochemical

industry, as well as being one of Canada’s leading

energy infrastructure companies,” said Pembina President

and Chief Executive Mick Dilger.

 

Bolivia’s YPFB Plans $1.8-Bn Project To Produce Propylene, PP in Tarija

La Paz―Bolivia’s

Yacimientos Petroliferos Fiscales Bolivianos (YPFB) has

announced plans for a $1.8-billion propylene and polypropylene

(PP) project to be set up in Yacuiba, Tarija, Bolivia.

The project, being made possible “thanks to the nationalization

of hydrocarbons,” will use 1,498 t/d of propane to

produce 250,000 t/y of PP, said YPFB. Construction is expected

to begin in 2017, with commissioning anticipated in

the last quarter of 2021.

Between 10% and 20% of the PP production is intended

for domestic consumption, with the remainder to be exported

to Brazil, Argentina, Peru and China.

YPFB in 2014 awarded Tecnimont a consulting services

contract for the realization of a 350,000-t/y propylene and

PP facility in Tarija (PCN, 17 Nov 2014, p 1).

 

Alpek Concludes Purchase from BASF Of Expandable PS Facility in Chile

Monterrey—Alpek,

in reporting its first quarter 2016 results, announced it has

successfully completed the acquisition of BASF’s 20,000-t/y

expandable polystyrene (EPS) plant in Concon, Chile

(PCN, 26 Oct 2015, p 1).

“The facility began operations under Alpek’s control as

of 1 Apr. 2016, thus complementing our assets in the region,”

the company said. Value of the transaction was not

disclosed.

Alpek has a 5,000-t/y molded EPS facility in Santiago,

Chile, and a 2,000-t/y molded EPS plant in Puerto Montt,

Chile. Both facilities are operated by Styropek Chile.

 

Ineos & Rex Enter NGL Supply Agreement For Ineos’ European Cracker Complexes

London—

Ineos Europe and Rex Energy have entered into a sale and

purchase agreement for the supply of natural gas liquids

(NGLs) from the Appalachian shale basin to Ineos’ European

cracker complexes.

The agreement covers ethane, propane and butane,

which will transported through the Mariner East infrastructure

and exported by sea from Marcus Hook, Penn., to

the crackers.

Ethane transport will begin this month. Propane and

butane shipments will begin in 2017, following completion

of Sunoco Logistics’ Mariner East 2 pipeline project (PCN,

22 Feb 2016, p 2).

“This contract adds value to our supply portfolio providing

for long-term sourcing of advantageously priced U.S.

natural gas liquids for our European crackers,” said David

Thompson, chief executive of Ineos Trading and Shipping.

Ineos has invested $2-billion to bring U.S. shale gas to

Europe. “Shale gas economics has revitalized U.S. manufacturing;

it has the potential to do the same for European

manufacturing,” noted Ineos Chairman and Founder Jim

Ratcliffe.

On 23 Mar. 2016, Ineos confirmed that its Ineos Intrepid

Vessel arrived at its petrochemicals plant in Rafnes,

Norway, carrying U.S shale gas ethane (PCN, 14 Mar

2016, p 4). “This was the very first time that ethane from

U.S. shale gas had ever been exported from the U.S. and

the first time it has been imported into Europe,” the company

noted.

 

EC Investigating Write-Off of Debt By Govt. of Romania for Oltchim

Brussels—The European

Commission (EC) has opened an in-depth investigation

to verify whether Oltchim debt written off by the Romanian

government and continued supplies to Oltchim by

state-owned enterprises, despite the company’s deteriorating

financial situation, were in line with European Union

state aid rules.

“Following the economic difficulties of Oltchim and the

cancellation of public debts owned by the company, we

need to verify whether a private creditor would have accepted

to act in the same way,” said EC Commissioner

Margrethe Vestager.

“Thanks to its recent reorganization, Oltchim’s financial

situation has improved and Romania hopes to find a

new investor,” she continued. “Our aim is to facilitate a

sustainable future for the economic activities of the company

without the need for further government support.”

The Romanian government holds a 54.8% interest in

Oltchim, which was declared insolvent in 2013 (PCN, 9

Sept 2013, p 4).

 

Chemtura Expanding Capacity in Italy For LF MDI Polyurethane Elastomers

Philadelphia—

Chemtura is expanding production capacity of Adiprene

Low Free (LF) diphenylmethane diisocyanate (MDI) polyurethane

elastomers at its Latina, Italy, facility.

The expansion, for which a capacity was not given, will

complement the company’s existing LF MDI capability in

Gastonia, N.C., and ensure a flexible, reliable supply of LF

MDI to its customers, Chemtura noted.

 

NWIW Updates Operational Impact, Benefits of Tacoma Methanol Plant

Tacoma—Northwest

Innovation Works (NWIW) has released updated information

on the safety, operational impacts and economic

benefits of its planned methanol project in Tacoma, Wash.,

on which work was halted in February following local opposition

(PCN, 29 Feb 2016, p 1).

NWIW has plans to build a two-phase, $3.6-billion

natural gas-to-methanol plant that will include up to four

production lines, each having a capacity of 5,000 t/d using

Johnson Matthey’s ultra-low emission (ULE) reforming

technology.

The risk assessment shows “no measurable risk of an

offsite fatality” and the project would have “no significant

risk of injury to workers during operation,” said NWIW.

Regarding emissions, the use of ULE reforming technology

will reduce greenhouse gas emissions by 92% compared

to coal-to-methanol processes and by 61% compared

to conventional natural gas reforming technology.

Replacing coal with natural gas to produce methanol for

olefins cuts carbon emissions by up to 70%, noted NWIW,

citing Asia Chem, a coal-chemical consultancy.

Based on an analysis completed by economic consulting

firm ECONorthwest, the plant will generate millions in

annual taxes for the region and the state, and significantly

boost local economic activity. “This facility could become a

crucial component of Tacoma’s economy, providing familywage

jobs and long-term growth,” stated NWIW President

Murray V. Godley III.

 

Air Liquide Building ASU in Maoming To Supply Gases to MPCC’s EO Units

Shanghai—Air

Liquide has signed a long-term contract with Maoming

Petrochemical Co. (MPCC), a subsidiary of Sinopec, to

build a new air separation unit (ASU) to supply gases, including

oxygen and nitrogen, to MPCC’s new and existing

ethylene oxide (EO) plants in China.

The ASU, expected to cost about €40-million, will have

a total capacity of 850 t/d of oxygen and will be located in

Maoming City, Guangdong Province. It will be owned and

operated by the ALMPCC joint venture of Air Liquide and

MPCC. A schedule for the project was not given.

 

People on the Move

Israel Chemicals Ltd. (ICL)—Charlie Weidhas, currently

president of ICL Industrial Products, has been

named executive vice president and chief operating officer

of ICL, effective 1 July 2016. Weidhas will succeed Asher

Grinbaum, who is retiring after 41 years with the ICL

Group.

Cabot Corp.—Jay R. Doubman has been appointed

senior vice president, corporate strategy and development.

He had been vice president and general manager of the tire

and elastomer composites product lines within the Reinforcement

Materials segment.

Hobart C. Kalkstein, most recently vice president of

corporate strategy and development, has become senior

vice president of the Reinforcement Materials segment.

Amec Foster Wheeler—Eoin Quirke has been named

president, Asia Pacific, effective immediately. He had been

project delivery director for the Asia, Middle East, Africa

and Southern Europe region.

 

State Oil Co. of Azerbaijan Republic Estimates Sumgait Urea Plant Cost

Baku—The State

Oil Co. of Azerbaijan Republic (Socar) has estimated the

cost of its urea plant being built in Sumgait, Azerbaijan, at

between €910-million and €920-million, reported the Azerbaijan

Business Center.

The facility, which will consist of plants to produce

2,000 t/d of urea and 1,200 t/d of ammonia, was originally

planned to come on stream in 2015 (PCN, 9 Nov 2015, p 4).

Samsung Engineering, the engineering, procurement,

construction and pre-commissioning contractor for the project,

expects to complete construction of the urea plant in

the first quarter of 2018.

The estimated project cost includes Samsung’s contract,

valued at €498-million, infrastructure costs, and tax and

customs payments of about €200-million.

“We’ve applied to the government with a request to

provide guarantees for loans of the urea plant,” said the

report quoting Khayal Jafarov, director of the Sumgait

urea facility. “We hope to have the governmental guarantee

in June or July and the financing for the project will be

defined.”

 

Mountaineer Holding Open Season For Natural Gas Liquids Storage

Denver—Privatelyheld

energy firm Mountaineer NGL Storage LLC is holding

a non-binding open season for up to 1.6-million barrels of

initial storage capacity with more than 25,000 bbls/day of

load-in and load-out, which will be made available through

a natural gas liquids (NGL) storage facility in Monroe

County, Ohio.

The Mountaineer NGL storage project will be designed

to store ethane, propane, butane and y-grade products and

“will be strategically located to provide service to the expanding

network of pipelines, rail and barge infrastructure

that is currently being built to transport Marcellus and

Utica NGLs to markets throughout the Northeast, Mid-

Atlantic, Mid-Continent and Gulf Coast,” said David

Hooker, managing director of the company.

The Marcellus shale and the Utica shale “have surprised

the entire industry and are fast becoming the next

super-producers of natural gas in this country, but there is

a dire need for reliable storage solutions,” he added.

Open season began on 11 Apr. and will end on 9 May.

For questions about the open season or for a bid package,

contact Hooker at dhooker@mngls.com, 720, 318-9738; or

Tim Hanley at tehanley@mngls.com, 816, 810-8588.

 

Linde Building East Malaysian ASU For Region’s Growing Industries

Sarawak—Linde

Eastern Oxygen (Linde EOX), a subsidiary of Linde Malaysia,

will invest €7.4-million to build an air separation unit

(ASU) at Tanjung Kidurong, Sarawak, in East Malaysia, to

serve the region’s growing industries.

Linde will design, build and manage the new ASU,

which will have a total production capacity of 33 t/d. Combined

with an existing 33-t/d ASU, Linde EOX will be become

the largest ASU gases producer in East Malaysia.

Once the plant comes on stream in 2017, it will provide

liquefied gases to East Malaysia’s emerging chemical, engineering,

construction, oil and gas, healthcare and metal

processing industries.

 

Eagle Mountain, Shandong Pusheng in JV For Oil, Gas, Petroleum Product Trading

Houston—

Eagle Mountain Corp. and Shandong Pusheng Petrochemical

Co. have signed an agreement creating a new joint venture

for oil, gas and petroleum products trading.

The two companies have also signed their first purchase

order, a binding contract commitment to purchase light

naphtha through the joint venture company.

The contract provides for Eagle Mountain to source and

negotiate the purchase and delivery of about 300,000 tons

of naphtha per month for a period of five years.

Shandong, Pusheng, which is currently developing

large-scale storage facilities in China, will be responsible

for the sale of the naphtha into Southeast Asian markets,

in cooperation with China’s state enterprises.

 

India Hopes to Increase Ties with UAE; Offers Stakes in PC, Refinery Projects

Dubai—India’s

Minister for Petroleum and Natural Gas Dharmendra

Pradhan, during a recent visit to the United Arab Emirates

(UAE), called for greater economic and strategic cooperation

between India and the UAE, according to local business

reports.

Citing the UAE’s pledge to invest $75-billion in India,

he promised “fair, transparent and attractive” policy regime

for those investments through “appropriate policy,

regulatory and fiscal interventions.”

As part of India’s strategy to increase ties, Pradhan

said India is offering interests in several projects. Among

those projects is a 26% stake in ONGC PetroAdditions’ Dahej

petrochemical complex (PCN, 23-30 Nov 2015, p 4).

India is also offering an equity interest of between 25%

and 40% in a greenfield petrochemical complex to be undertaken

as a joint venture of Hindustan Petroleum and

GAIL in Andhra Pradesh (PCN, 8 Feb 2016, p 4).

Pradhan noted another potential area of investment is

a 24% stake in a project that will expand the capacity of

Bharat Petroleum’s Bina refinery in Madhya Pradesh.

 

Fairfax India Investing $300-Million For 30% Sanmar Chemicals Stake

Mumbai—Fairfax

India Holdings Corp., through wholly-owned subsidiaries,

has agreed to invest $300-million in exchange for a 30%

equity interest in the Sanmar Chemicals Group.

Fairfax is limited to investing no more than 25% of its

total assets in any single investment, with a current limit

of about $250-million. The company said it will fund an

initial tranche of $250-million upon the closing of the

transaction, and the second tranche of $50-million will be

funded within 90 days thereafter by subsidiary Fairfax

Financial Holdings Ltd. The first tranche is expected to be

completed during the second quarter of this year.

Sanmar currently has a combined total of 300,000 t/y of

polyvinyl chloride (PVC) capacity at facilities in Mettur

and Cuddalore, India. The company is also expanding its

Egyptian PVC capacity to 400,000 t/y from 200,000 t/y

(PCN, 10 Nov 2014, p 3).

“Once the expansion is completed, Sanmar will have a

total PVC capacity of over 700,000 t/y, making it among

the largest PVC companies in the world,” noted Fairfax.

Additionally, Sanmar produces ethylene, caustic soda and

other chemicals.

 

With Sanctions Lifted, Iran Is Focused On Development of PC Value Chain

Tehran—The lifting

of sanctions on Iran has made development of the country’s

petrochemical value chain one of the most promising

avenues to significantly add value to its economy, according

to a new Frost & Sullivan report.

“Abundance of feedstock, relatively suitable infrastructure,

low cost of production and access to skilled labors are

key factors that make Iran interesting for investors in the

petrochemical space,” in the opinion of Ali Mirmohammad,

Frost & Sullivan’s senior consultant and business development

manager for Iran. “The country’s natural reserves

of ethane, propane and naphtha are sufficient to set up

new petrochemical complexes within the next 10 years.”

Additionally, he noted, “the government is adopting a

foreign policy approach to not only strengthen local capabilities,

but also to increase non-oil exports to more than

$50-billion based on downstream verticals derived from

petrochemical and mining industries.”

The “Iran Vision 2025” aims to make the country the

largest producer of petrochemical products along the value

chain in the region. To achieve this goal will require at

least $70-billion of financial resources. Such an investment

is expected to increase petrochemical industry exports

to over $40-billion by the end of 2025 from less than

$12-billion in 2015.

Iran plans to attract foreign investments to resume over

60 halted petrochemical projects that would increase production

capacity to 130-million t/y in the next five years

from 58-million t/y currently. The government has proposed

36 new investment projects that could raise the production

capacity to over 180-million t/y in 2025.

“Creating value-added opportunities along the entire

propylene industry value chain is one of the primary focus

areas for the government for the next 10 years with regard

to the petrochemical sector,” said Ali. “Importing high

technologies and catalysts to produce various grades of

polypropylene . . . are other key policies.”

To encourage investment, the government is offering

several incentive plans, including discounts on natural gas,

long-term tax-exempt savings plans, and 25-year guaranteed

feedstock supply agreements. The country also plans

to develop infrastructure, such as power plants, desalinated

water facilities and road and rail transportation.

“Lifting of sanctions is expected to usher huge opportunities

for the country through access to advanced technologies

and international financial resources. This is expected

to significantly boost Iran’s image in the global petrochemical

industry landscape,” he concluded.

 

Amec Foster Wheeler Awarded Contracts For Sonatrach’s New Algerian Refineries

Algiers—

Amec Foster Wheeler has been awarded front-end engineering

design contracts by Sonatrach for three new refineries

to be built in Algeria.

Located in Biskra, Tiaret and Hassi Messaoud, the refineries

will each have 5-million t/y of crude oil capacity.

Each refinery will include facilities for atmospheric distillation,

liquefied petroleum gas separation, hydrocrackers,

desulphurization, bitumen production, utilities, blending,

effluents treatment, control room and laboratories, as well

as storage tanks, shipping facilities and administrative

buildings.

Amec Foster Wheeler will also support the selection of

technology licensors for all three refineries. Its scope of

work is scheduled for completion in the third quarter of

2017.

 

Iran’s PGHC Eying $7-BN Agreement For PC Project with European Firm

Tehran—Iran’s

Persian Gulf Holding Co. (PGHC) expects to sign an agreement

with an unidentified “prominent” European company

for the development of a $7-billion petrochemical project in

Assaluyeh, Iran, reported Shana News Agency.

Adel Nejad Salim, head of PGHC, said PGHC has held

constructive talks with major European and Asian firms

since the removal of sanctions on Iran, and the result of

these negotiations will become evident in coming months.

“Over the course of the past 12 years, the relations between

Iran’s petrochemical industry and foreign firms were

nearly severed, but during the past two years, given the

removal of western sanctions, ground is being paved for

restoration of Iran’s relations with other countries.”

Salim did not give specific details on the project, other

than it will take five years to complete and it entails all

parts of the value chain.

 

Kuwaiti Oil & PC Union Plans Strike

Kuwait City—

Members of Kuwait’s Oil and Petrochemical Industries

Workers Confederation plan a strike starting on Sunday,

17 Apr. to protest a government plan to reduce benefits

and wages, reported Reuters.

Companies where workers plan to join the strike include

Equate Petrochemical Industries Co., Kuwait Petroleum

Corp. (KPC), Kuwait Oil Co., Kuwait Oil Tanker Co.

and Kuwait Gulf Oil Co.

“If the strike happens, we do have a strategy in place to

deal with this kind of action where extra staff will be used

to run operations,” said Khaled Al-Asousi, deputy chief

executive for support services of KPC’s Kuwait National

Petroleum Co. subsidiary.