CNOOC & Shell JV Starts Up New Units At Its Nanhai Petrochemicals Complex
CNOOC and Shell Petrochemicals Co., a 50-50 joint venture
of CNOOC Oil & Petrochemicals Co. (CNOOC) and
Shell Nanhai BV, announced the start-up of several new
petrochemical units at its Nanhai petrochemicals complex
in Huizhou, Guangdong Province, China (PCN, 25 May
2020, p 1).
The first new unit, based on Shell’s SMPO process
technology, is producing up to 630,000 t/y of styrene monomer
(SM) and 300,000 t/y of propylene oxide (PO). It is the
“largest” of its type in China and the second of its kind
built at the complex, Shell noted.
Three additional new plants that started up process PO
into up to 600,000 t/y of polyols, utilizing Shell’s advanced
The start-up of the new units concludes the phase two
expansion of the complex, which now supplies customers
with up to 6-million t/y of diverse, high-quality intermediate
and performance chemicals, including polyols, ethylene
glycol, polyethylene (PE) and polypropylene.
A third phase is already being planned for the complex
and will include a 1.5-million-t/y ethylene plant, as well as
14 units for the production of propylene, butadiene, ethylene
oxide/ethylene glycol, SM/PO, linear alpha olefins,
metallocene PE, and other products. No schedule was
Sumitomo Awards Toyo Contract to Build Ethanol-to-Ethylene Pilot Plant in Japan
Toyo Engineering has been awarded an engineering, procurement
and construction contract by Sumitomo Chemical
for an ethylene pilot plant at Sumitomo’s Chiba site in Japan
that utilizes waste-derived ethanol as raw material
(PCN, 21-28 Dec 2020, p 2).
The facility will use Axen’s Atol technology to transform
the ethanol into polymer-grade ethylene that will be polymerized
into polyolefins. Pilot production is scheduled to
begin from fiscal year 2022, with full-scale market launch
of the production in fiscal 2025.
Last year, Sumitomo and Sekisui Chemical agreed to
form a strategic alliance that combines Sekisui’s production
technology for converting waste into ethanol with Sumitomo’s
technological know-how in manufacturing polyolefins.
Sekisui will provide the ethanol feedstock for the
Toyo was also responsible for the basic design of the pilot
ExxonMobil Lets Contract to Sinopec For Proposed Huizhou Chem Project
Sinopec Engineering (Group) Co. said it has received a contract
from ExxonMobil (Huizhou) Chemical Co. for the construction
of phase one of ExxonMobil’s planned Huizhou
chemical complex project in Guangdong, China (PCN, 27
Apr 2020, p 1).
The proposed project, to be located in the Daya Bay
Petrochemical Park, will include a 1.6-million-t/y ethylene
flexible feed steam cracker, two performance polyethylene
lines and two differentiated performance polypropylene
lines. ExxonMobil earlier said the project was expected to
start up in 2023.
The main scope of services under the multibillion-dollar
contract includes the basic design, engineering, procurement
and construction of all the process units, utilities and
Enter Selects Grace’s Unipol Technology For Jizzakh’s Planned Uzbek PP Plant
W.R. Grace & Co. has licensed its Unipol PP (polypropylene)
process technology to Enter Engineering for a new PP
line to be built as part of Jizzakh Petroleum’s new methanol-
to-olefins gas chemical complex n the Bukhara region
of Uzbekistan (PCN, 8 Feb 2021, p 1).
The PP unit, expected to start up by 2025, will have the
capacity to produce 257,000 t/y of PP. Enter is acting as
licensee on behalf of Jizzakh, who will own and operate the
gas chemical complex.
The Unipol process provides a broad range of PP homopolymers,
random copolymers, and impact copolymers.
Earlier this year, Versalis licensed its low-density polyethylene
(LDPE)/ethyl vinyl acetate (EVA) technology to
Enter for a new LDPE/EVA swing unit to be built as part
of the complex. The plant will be designed for a maximum
EVA-equivalent production capacity of 180,000 t/y.
Jizzakh previously said the complex would process 1.5-
billion cu m/yr of natural gas for the production of 500,000
t/y of olefins. No other details were available.
Samsung Wins EPC Contracts from AGIC For New PDH Plant at Jubail Complex
Advanced Petrochemical’s Advanced Global Investment Co.
(AGIC) subsidiary has awarded engineering, procurement
and construction (EPC) contracts to Samsung Engineering
Co. and Samsung Saudi Arabia Co. for a new propane dehydrogenation
(PDH) unit for propylene production in
Jubail, Saudi Arabia (PCN, 4 Jan 2021, p 3).
Under the contracts, valued at a total of $1.198-billion,
Samsung will build the PDH unit for the production of
843,000 t/y of propylene, which will be used for the production
of polypropylene (see related story, page 2).
The PDH plant will utilize Catofin technology from
Lummus Technology. Commercial operations are expected
by the second half of 2024.
AGIC Selects Tecnimont’s Subsidiaries To Build Two New PP Units in Jubail
Advanced Global Investment Co. (AGIC) has awarded a
contract to Tecnimont SpA and Tecnimont Arabia Ltd.,
subsidiaries of Maire Tecnimont, to set up two new polypropylene
(PP) units as part of a project being implemented
in Jubail Industrial City II, Saudi Arabia (PCN, 4
Jan 2021, p 3).
Valued at around $500-million, the contract involves
the construction of two 400,000-t/y PP units, which will be
part of an integrated propane dehydrogenation/PP complex.
The project is expected to be completed by the second
quarter of 2024 (see related story, page 1).
The scope of work involves complete engineering services,
equipment and out-of-kingdom material supply (to be
performed by Tecnimont) and in-kingdom material supply,
erection and construction activities up to start-up and
guarantee test run (to be performed by Tecnimont Arabia).
AGIC is building the project with SK Gas Petrochemical,
through their Advanced Polyolefins Co. joint venture.
AGIC is a subsidiary of Advanced Petrochemical Co., while
SK Gas Petrochemical is a subsidiary of SK Gas Co.
Sinopec Yizheng Boosting PET Capacity As Part of Planned Expansion in China
Sinopec Yizheng Chemical Fibre plans to add 1.5-million
t/y of polyethylene terephthalate (PET) capacity to its recently
announced expansion project in Jiangsu Province,
China, reported Argus Media.
In January, Invista Performance Technologies said it
would license its PTA P8++ technology to Sinopec Yizheng
for a third purified terephthalic acid (PTA) line to be installed
at the site with a nameplate capacity of 3-million
t/y (PCN, 25 Jan 2021, p 1).
The PET expansion involves adding three 500,000-t/y
PET production lines. Construction is planned to begin on
the first PET line in the fourth quarter of this year, while
construction on the PTA plant is expected to start in the
middle of this year, with completion anticipated in 2023,
according to Argus.
NextDecade and Mitsubishi Execute ESA For Carbon Capture at Rio Grande LNG
NextDecade and Mitsubishi Heavy Industries America
(MHIA), part of Mitsubishi Heavy Industries (MHI), have
signed an engineering services agreement (ESA) for a carbon
capture and storage (CCS) project planned at NextDecade’s
proposed Rio Grande LNG (liquefied natural gas)
project in Brownsville, Texas (PCN, 22 Mar 2021, p 3).
The Rio Grande project is expected to include five LNG
trains with a total capacity of 27-million t/y of LNG. A final
investment decision (FID) is anticipated on a minimum
of two trains in 2021, and the FID on the CCS project “soon
after,” NextDecade recently said.
NextDecade’s Next Carbon Solutions subsidiary will
help develop the CCS project, which is expected to enable
the capture and permanent geologic storage of more than
5-million t/y of carbon dioxide.
MHIA will provide the design, license and performance
guarantee of the KM CDR Process, a post-combustion carbon
capture technology, developed by MHI, to be used in
the CCS project.
KBR Agrees to License K-PRO Technology For JS Energy’s PDH Plant in Pakistan
KBR has signed an agreement with JS Energy Ltd. to license
its proprietary K-PRO propane dehydrogenation
(PDH) technology for JS Energy’s planned PDH unit in
The project, scheduled for commissioning in 2024, will
convert propane into propylene. No other information was
“KBR offers various sustainable technologies that are
energy efficient and environmentally-friendly,” said Doug
Kelly, president of technology at KBR. “K-PRO is based on
an innovative catalyst that does not contain costly precious
metals or environmentally-sensitive chromium and is a
continuous process with efficient energy integration, heat
recovery and high conversion.”
PCN recently reported that Engro Polymer & Chemicals
plans to spend $31.4-million to study the feasibility of
building a new PDH unit for the production of polypropylene
in Pakistan (PCN, 12 Apr 2021, p 1).
According to the report, Engro’s PDH unit would be the
“first of its kind in Pakistan.”
Ultranav, Navigator Ink Non-Binding LoI To Merge Ultragas Assets into Navigator
Naviera Ultranav Ltda. (Ultranav) has signed a nonbinding
letter of intent (LoI) with Navigator Holdings to
merge Ultragas ApS’ fleet and business activities with
The combined entity would remain Navigator Gas with
a total fleet of 56 vessels. Ultragas will provide its seven
modern 22,000-cu m semi-refrigerated vessels, five 12,000
cu m ethylene vessels and six gas carriers in the 3,770-
9,000 cu m range.
The transaction, expected to close by the end of the second
quarter of this year, is subject to the execution of a
definitive share purchase agreement, approval by the
board of directors of both Navigator and Ultragas, regulatory
approvals and other customary closing conditions.
“The combination will result in a LPG [liquefied petroleum
gas] and petrochemical shipping company with unmatched
scale and diversification,” said David Butters,
executive chairman of the board of Navigator.
“The Ultragas fleet will significantly strengthen our position
in the handy sized sector and provide our customers
with greater flexibility in transporting smaller parcels in a
Hexpol to Acquire Rubber Firm Unica
Hexpol AB has entered into an agreement to purchase Union
de Industrias C.A. (Unica), a rubber compounder based
in Spain, from private equity firm Espiga Capital.
The acquisition, valued at €48-million on a cash and
debt free basis, will close following receipt of regulatory
approval, expected in the second quarter of 2021.
“Through the acquisition of Unica, we will strengthen
our position in rubber compounds for demanding customers
in Spain and other EU [European Union] countries,”
noted Ralph Wolkener and Carsten Ruter, presidents of
Hexpol Compounding Europe/Asia.
“Unica will be a perfect complement to our existing operations
in Spain, mainly active in other sectors.”
Air Products Buys Remaining 50% Stake In Gasification Technology JV in China
Air Products has purchased the remaining 50% stake in its
Chinese gasification technology joint venture with China
Shenhua Coal to Liquid and Chemical Co., a subsidiary of
China Energy Group, for an undisclosed amount (PCN, 12-
19 Aug 2019, p 3).
“Our latest investment is another step to support our
gasification growth strategy that addresses the world’s
energy and environmental challenges,” noted Seifi
Ghasemi, chairman, president and chief executive at Air
“We continue to execute several megaprojects in China
and around the world. The acquisition further strengthens
our position to leverage our complete gasification technology
portfolio to serve our customers.”
Air Products acquired its initial 50% interest in the
joint venture in 2019, as part of its purchase of GE’s gasification
business from GE Power.
Sojitz & Jeplan Agree to Jointly Promote PET Chem Recycling Business in Japan
Sojitz and Japan Environment Planning (Jeplan) have
formed a partnership to jointly promote a polyethylene
terephthalate (PET) chemical recycling business, in Japan
and overseas, that utilizes Jeplan’s chemical recycling
Jeplan, using its proprietary BRING technology, is able
to selectively extract bis (2-hydroxyethyl) terephthalate
from PET. It can then recover high-purity monomers in
order to manufacture recycled PET resin at an industrial
scale that meets strict bottle-grade quality standards, the
Equipment upgrades are currently being made at Jeplan’s
facility. Once the plant restarts this summer, the
company will be able to produce about 22,000 t/y of recycled
The partners will also promote the establishment of a
system to collect used PET bottles for use as raw material,
and the construction of new production facilities.
Dialog Completes and Opens Phase 3A Of Pengerang Deepwater Terminals
Group has completed and officially opened Phase 3A of the
Pengerang Deepwater Terminals (PDT) development in
Malaysia (PCN, 20 May 2019, p 3).
The first parcel of Phase 3 consists of storage tanks
with a capacity of 430,000 cu m for clean petroleum products,
common tankage facilities (including shared infrastructure)
and deepwater marine facilities.
“I believe the continued development of Phase 3 has the
potential to attract more refining and petrochemical complexes,
as well as downstream petrochemical manufacturing
plants, and spur increased trading activities, which
could potentially bring multi-million Ringgit investments
to Johor,” said Haji Hasni bin Mohammad, Mentari Besar
of Johor YAB Dato.
“Such continued investments to develop Pengerang will
create more economic value add, catalyze long-term economic
activity and create high value, skilled jobs for both
Johor and Malaysia.”
New Hope Energy and CPChem Enter Deal For Certified Renewable Chem Feedstock
New Hope Energy said it has signed a long-term agreement
with Chevron Phillips Chemical Co. (CPChem) to
provide ISCC Plus certified renewable chemical feedstock
produced through pyrolysis.
New Hope Energy builds advanced recycling plants that
process scrap plastic and municipal solid waste into renewable
chemical feedstocks. It will supply CPChem from
its Trinity Oaks Tyler Phase I facility in Texas, which is
the first of many plants to be built by New Hope Energy
and is now operating 24/7, New Hope noted.
New Hope Technologies, an affiliate of New Hope Energy,
has entered into a joint development and commercialization
agreement with Green Circle, a division of
Lummus Technology, to scale and license New Hope proprietary
processes and equipment on a world-wide basis
(PCN, 19 Oct 2020, p 1).
New Hope Fabrication, a subsidiary of New Hope Energy,
will be the exclusive manufacturer of the equipment
and Lummus will provide a production and quality guarantee
on the equipment and output.
In the future, New Hope Energy plans to create sustainable
trade zones to co-locate eco-friendly businesses to
facilitate the circular economy.
WV Resources Picks Honeywell Technology For Carbon Capture & Storage Project
Wabash Valley (WV) Resources has selected a range of
Honeywell UOP technologies for a carbon capture and
storage project at West Terre Haute, Ind.
The project, expected to be “one of the largest” carbon
sequestration initiatives in the U.S. to date, will capture
and sequester up to 1.65-million t/y of carbon dioxide (CO2)
and produce clean hydrogen energy from a repurposed
gasification plant, Honeywell explained.
UOP will provide technology licenses, basic engineering
and specialty equipment, including a modular MOLSIV
molecular sieve dehydration unit, modular Ortloff CO2
Fractionation unit, and Polybed pressure swing adsorption
unit to sequester CO2 and process synthesis gas from the
“This project will allow for market access to clean hydrogen,
as well as support the domestic growth of the hydrogen
economy,” said Dan Williams, managing director of
Synthomer Opens Asia Innovation Center
Synthomer recently launched its new state-of-the-art Asia
Innovation Center at iPark near Johor Bahru, Malaysia, to
provide leadership in research and development for both
performance elastomers and functional solutions business
The RM 35-million center has sufficient expansion capacity
to meet the future anticipated needs of the business,
the company noted. It will ensure Synthomer stays at the
forefront of nitrile latex product development and applications
know-how, it added.
“This is the first phase of what we expect to be an ongoing
investment in innovation in Asia, supporting all divisions
of the company,” said Dr. Zhenli Wei, vice president
of innovation for the Performance Elastomers Division.
Chemours Announces Goal to Achieve Net Zero GHG Emissions by 2050
Chemours announced its “ambitious” goal to achieve net
zero greenhouse gas (GHG) emissions by 2050, and has
improved it 2030 climate goal by switching from a relative
to absolute goal.
“Chemours is driving to achieve a 60% absolute reduction
of operations-related greenhouse gas emissions by
2030, putting the company on the path to net zero greenhouse
gas emissions by 2050,” the company noted.
To address direct emissions from operations (Scope 1),
the company will continue to enhance emissions control
technologies at its manufacturing sites and improve energy
efficiency across its operations.
In order to address indirect emissions from electricity
and other energy sources (Scope 2), Chemours will increase
the amount of electricity and other energy generated from
The company is also in the process of defining goals related
to indirect emissions from its value chain (Scope 3)
and will announce them at a later date.
Sheryl Telford, previously vice president of environment,
health, safety and corporate responsibility, has been
appointed to the newly created position of chief sustainability
Saudi Petrochem Projects Expected to Drive Oil & Gas Projects by ‘25, Says GlobalData
Petrochemical projects are expected to drive the start of
upcoming projects across the oil and gas value chain in
Saudi Arabia, accounting for about 61% of the total projects
expected to start operations during the period of
2021-2025, according to a new report from data and analytics
The report, Middle East Oil and Gas Projects Outlook to
2025 – Development Stage, Capacity, Capex and Contractor
Details of All New Build and Expansion Projects, reveals
that among these projects, new builds dominate with 84%,
while the rest are expansion projects.
“Petrochemical projects will be the highest with 50, followed
by midstream with 18, refinery at eight, and upstream
(fields) at six,” said the report.
“Saudi Arabia’s aggressive investments in the petrochemicals
sector is part of its 2030 vision plan, where the
country aims to reduce its dependence on the upstream
sector and diversify into other segments,” noted Soorya
Tejomoortula, an oil and gas analyst.
Borealis Launches Feasibility Study For New Chemical Recycling Unit
Borealis has begun a feasibility study for a new chemical
recycling plant to be established at its production site in
Stenungsund, Sweden, which has been ISCC Plus certified
since February 2021.
The unit would be part of a project to secure an additional
supply of chemically recycled feedstock for the production
of more circular based chemicals and polyolefinbased
The study, being funded in part by the Swedish Energy
Agency, is being carried out with Borealis’ project partner
Stena Recycling. The study will evaluate the best technology
for the unit and its integration in the cracker at the
site. Subject to a successful feasibility study and final investment
decision, operations are planned to begin in 2024.
Stena would recover plastic waste and, after sorting to
remove materials suitable for mechanical recycling, would
deliver it to the new chemical recycling unit. It plans to
invest in its own plants to produce plastic waste feedstock
In addition, Fortum Recycling and Waste is looking into
funding for a feasibility study for the production of feedstock
from plastic waste for Borealis’ proposed unit.
“The integration of waste management and processing
directly into a steam cracker would be one of the first of its
kind,” Borealis noted.
PetroChemical News Briefs
BASF has launched new plasticizers based on renewable
and chemically recycled feedstock. The biomass balanced
(BMB) plasticizers are sold under the names Hexamoll
DINCH BMB, Palatinol N BMB, Palatinol 10-P BMB
and Plastomoll DOA BMB.
Worley has been awarded multiple master services
agreements by subsidiaries of Cheniere Energy to provide
engineering, procurement, construction and construction
management services to Cheniere’s liquefied natural gas
facilities based on the U.S. Gulf Coast.
LyondellBasell announced the launch of its new Circulen
suite of polymer products to advance circular solutions.
CirculenRecover polymers are made from plastic
waste through a mechanical recycling process, CirculenRevive
polymers are made using an advanced (molecular)
recycling process, and CirculenRenew polymers are made
from renewable feedstocks such as used cooking oil.