AMERICAS
CPChem begins construction of PE plants
Chevron Phillips Chemical has broken ground for the construction of 500 KTA PE plant in Old Ocean, TX. This is a part of Chevron Phillips Chemical’s USD 6 billion US Gulf Coast Petrochemicals Project which includes a 1,500 KTA ethane cracker at Cedar Bayou, Baytown, TX.
Comments: Chevron Phillips Chemical’s petrochemicals project will feature the biggest grassroots cracker built in response to the proliferation of inexpensive ethane on the U.S. Gulf Coast due to shale gas development. Most of the ethylene produced at the cracker will be converted to polyethylene onsite and designated for exports to feedstock-disadvantaged regions. The engineering, procurement and construction (EPC) phase of the ethane cracker will be executed through a JV between JGC, Inc. and Fluor Enterprises, Inc.
ExxonMobil begins construction at Baytown
ExxonMobil Chemical has started construction for its second steam cracker at Baytown, TX facility and two PE lines at Mont Belvieu, TX. The cracker will have a capacity to produce 1,500 KTA of ethylene and the PE lines will have a capacity of 650 KTA each.
Comments: The development of shale gas has had a dramatic impact on the North American petrochemical industry. The resultant low-cost ethane has spawned a massive wave of new ethylene expansions by essentially every olefins and derivatives producer in North America as well as several foreign players. Exxon is one of the first companies to start the construction process, making it more likely that the cracker will actually be built on time. Mitsubishi has been awarded the contract to construct the two high-performance polyethylene lines.
Dow Chemical to begin construction
Dow Chemical will be starting the construction of its new ethylene production facility at Freeport, Texas. This plant will have a capacity of about 1,500 KTA and is expected to come on-stream in H1-2017.
Comments: Freeport facility is Dow’s largest petrochemical complex and will make abundant advantage of the low cost ethane feedstock derived from shale gas. The downstream petrochemicals announced alongside this project include NORDEL™ metallocene EPDM, ELITE™ Enhanced Polyethylene, high melt index specialty elastomers, and specialty LDPE. In addition to the ethylene production plant, Dow is currently building an on-purpose propylene PDH plant at this site.
UOP to license TPC’s on-purpose butadiene technology
TPC and UOP have entered into an agreement for UOP to be the exclusive licensor of TPC’s proprietary OXO-D technology for producing on-purpose butadiene. The OXO-D technology is being applied in TPC’s on-purpose butadiene project that is currently under commercial development. Along with UOP, TPC will further develop the process, leveraging UOP’s expertise in licensing and technology.
Braskem to build UHMWPE plant
Braskem plans to build an ultra-high molecular weight polyethylene plant at La Porte in Texas. The new plant which will operate using Braskem’s proprietary technology will be built with an investment of about USD 34 million. The new plant is expected to be on-stream in 2016.
Comments: Braskem has robust plans to expand its petrochemicals and plastics markets. Braskem has been supplying UHMWPE to North American and European markets for more than a decade. The company also has five polypropylene plants in the USA. In addition, Braskem has planned multiple projects that include a 118 KTA LDPE expansion in Brazil, a JV with Styrolution GmbH for the production of ABS in Brazil, and a joint petrochemical project with Grupo Idesa SA de CV in Mexico.
A. Schulman to buy most of Ferro’s plastics business
A. Schulman will be acquiring Ferro’s four plants in the U.S. at Stryker, Ohio; Evansville and Plymouth, Indiana; Carpentersville, Illinois— and one in Castellon, Spain for USD 91 million. These locations manufacture custom engineered plastic compounds, colorants and liquid coatings which are sold into packaging, transportation, construction and other markets.
Comments: With the purchase of Ferro’s specialty plastics business, A. Schulman continues its strategy of aggressive expansion through acquisitions and joint ventures. Under the terms of the agreement, Schulman gains ownership of four plants in the United States and one in Spain. The plants make custom engineered plastic compounds, colorants and liquid coatings that target packaging, transportation and construction markets. Ferro has narrowed its focus in performance materials, and is also looking for a buyer for its polymer additives business.
EUROPE
Lanxess expands Baypren production line
Lanxess has completed the expansion of Baypren solid rubber production operations in Dormagen, Germany. The expansion increases Lanxess’ production capacity to a total of 63 KTA of solid rubber.
Comments: Chloroprene rubber is widely used in high performance hoses, conveyor and transmission belts, molded rubber parts, wire & cable sheathing, and etc. The new production line manufactures crosslinked chloroprene rubber grades through the company’s dry finishing production technology and offer improved properties and increased injection molding process speeds.
Clariant increasing capacity
Clariant plans to increase its production capacity for Licocene Performance Polymers at its facility in Frankfurt in Germany. The capacity is expected to be increased by 50% through debottlenecking the existing plant. The increased capacity is expected to come on stream in Q1 2016.
Comments: Licocene performance polymers are metallocene polyolefins that have low molecular weight while maintaining high mechanical strength. Clariant has made the decision to increase the plant capacity after consistently strong demand growth for the polymers, especially in Asia. Licocene polymers are used for household items, vehicle carpets, manufacture of masterbatches and engineering plastics, as well as in industrial coatings, and in printing inks and adhesives for packaging applications.
Slovnaft LDPE project on track
Slovnaft’s LDPE 4 project is on track with the launch expected in 2015. The LDPE 4 project aims to replace the existing seven LDPE production lines which have a total production capacity of about 175 KTA, with a plant that will a production capacity of 220 KTA.
Comments: Slovnaft has undertaken the massive upgrade program in order to increase their LDPE capacity, increase production efficiency by reducing power consumption, and reduce emissions. Completion of the LDPE silos indicates that the project will come on-stream in 2015, as initially planned. The new technology provided by Tecnimont will also enable Slovnaft to produce a wider portfolio of LDPE grades. Emission reductions were necessary in anticipation of new EU regulations coming in 2016.
Ineos to acquire BASF’s stake in Styrolution
Ineos will acquire BASF’s 50% stake in their Styrolution joint venture for USD 1.47 billion. The deal which is subject to regulatory approvals is expected to close in the fourth quarter of 2014. Post the acquisition, Styrolution will be run as a standalone company within Ineos and will continue its operations.
MIDDLE EAST & AFRICA
Azerbaijan to commission PP plant in 2016
Azerbaijan’s new polypropylene plant is expected to come on-stream in 2016. The plant will be constructed in Sumgayit Chemical Technology Park and preparation for construction is already underway. The new PP plant will have a capacity of 150 KTA.
Comments: Azerbaijan is rich in oil and gas and these are two major exporting items. In 2010 it exported 820,000 bbl/d of crude oil and about 7 billion cubic meters natural gas. For a country with a population of 9 million, the government is fully aware of the importance of developing the non-oil sector of the industry. So far the only polyolefin production is the two HDPE plants at Sumait with a total capacity of 150 KTA.
ASIA
BASF breaks ground on compounding plant in South Korea
BASF has broken ground on a new compounding plant at Yesan, South Korea. The plant will produce BASF’s Ultramid – brand nylon resins and Ultradur- brand polybutylene terephthalate resins. The plant is expected to be operational by 2015 and will have a capacity of 36 KTA.
Comments: BASF’s Ultramid and Ultradur resins are used in automotive parts and the electrical and electronics industry. PBT is most commonly consumed in electrical applications due to its very good electrical insulation. The material is often used in fire retardant applications, auto parts, switches and others. BASF has over the last few years have been taking advantage of the economic growth and following their strategy of increasing their presence in the region.