AMERICAS
Repsol licenses CPChem metallocene technology
Repsol has licensed the technology for producing metallocene polyethylene from Chevron Phillips Chemical. The technology will be implemented at Repsol’s site in Tarragona, Spain. At Tarragona, Repsol currently can produce 150 KTA of HDPE and 130 KTA of LDPE.
Comments: The move by Repsol to be the first licensee of CPChem’s metallocene PE technology is a step in the direction of expanding Repsol’s current polyethylene product slate to participate in differentiated products and specialties in the European and export markets.
Groundbreaking ceremony at Chevron Phillps’ Cedar Bayou plant
Chevron Phillips Chemical held a groundbreaking ceremony at its Cedar Bayou plant in Baytown, TX. The USGC project, which is spurred by shale gas development, includes the construction of a 1,500 KTA ethane cracker in Baytown, TX, and two 500 KTA PE plants in Old Ocean, 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 export 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.
Synthos to build Nd-polybutadiene rubber plant in Brazil
Synthos will be investing in a USD 170 million synthetic rubber plant at Triunfo, Brazil. The plant will produce neodiyum catalyzed polybutadiene (NdPBR) rubber based on Michelin’s technology. The raw material for the plant will be supplied by Braskem. The plant will have a capacity of 80 KTA and is expected to be complete by 2017.
Comments: Brazil is one of the fastest-growing regions for automotive sales in the world. Considering the country’s expected double-digit growth rate, the building of a new Nd-PBR plant is a strategically significant move by Synthos. Tire manufacturing is the biggest application market for Nd-PBR. Nd-PBR is also used for polymer modification in the manufacturing of high-impact polystyrene for injection molding applications, manufacturing of sports equipment, and conveyor belts.
LyondellBasell begins cracker expansion
LyondellBasell has started expansion at its LaPorte site in Texas. LyondellBasell is expanding ethylene capacity at this site by 363 KTA, thereby increasing the ethylene production to 1,152 KTA.
Comments: The development of shale gas has taken the US from being the most cost-disadvantaged to the second-most cost-advantaged ethylene-producing region in the world, behind the Middle East. Increasingly optimistic projections about the long-term availability of cheap ethane have resulted in plans for six world-scale ethylene crackers to be built in the U.S. Gulf Coast region. Instead of building a grassroots cracker, LyondellBasell is following a different strategy of lower-cost and faster expansions that will allow the company to take advantage of inexpensive ethane feedstock before its competitors.
Momentive Performance Materials considers filing for bankruptcy
Momentive Performance Materials is considering filing bankruptcy as a part of negotiations to reduce debt. Momentive Performance Chemicals is the silicones and quartz subsidiary of Momentive.
EUROPE
Borealis launches new HDPE grade
Borealis has launched a grade of BorPure HDPE, targeting the global beverage industry’s drive towards lighter caps and closures. The new grade BorPure MB5568 is suited for carbonated soft drinks, juices, teas, and bottled water.
Comments: Packaging raw material manufacturers are continually developing grades that meet the end-user requirements. Converters, on the other hand, are looking to develop products that meet the desired requirements, as well as reduce the cost of manufacturing. The new grade is jointly developed by Borealis and Borouge and allows converters to use less plastic in caps and closures for beverages, thus helping converters to remain cost competitive.
MIDDLE EAST & AFRICA
Saudi Aramco to sell PE, PP from Rabigh Refining & Petrochemical
Saudi Aramco has started selling polypropylene, high-density polyethylene, linear low-density polyethylene, and mono-ethylene glycol from Petro Rabigh, through its wholly-owned subsidiary Saudi Aramco Products Trading Company. Aramco and Sumitomo Chemical, the majority shareholders of Petro Rabigh will be marketing Petro Rabigh’s chemicals on an equal basis.
Comments: Petro Rabigh is a joint venture between Saudi Aramco and Sumitomo Chemical, established to build completed integrated refining and petrochemical operations in Saudi Arabia. The company started its operations in 2009 and produces LLDPE, HDPE, homo PP, block PP, propylene oxide (PO), and mono ethylene glycol (MEG). The competitive landscape for product sales and marketing has changed with expanding markets. The transition of sales of Petro Rabigh’s products from Sumitomo Chemical to Saudi Aramco Products Trading Company will help the producer increase opportunities through higher market penetration. Current capacities of PE and PP amount to 900 KTA and 700 KTA respectively.
Sabic develops new stretch film
Sabic has developed a stretch film made using a combination of PP and LLDPE. The film is designed with better load stability to help the beverage industry reduce transportation loss.
Comments: SABIC currently manufactures about three LLDPE stretch wrap grades using butene and hexene comonomers. The new grade is developed specifically to improve the holding force and load stability for beverages in transit. The new PP-LLDPE blend allows downgauging and improved optical properties. The food and beverage industry is fast moving toward sustainable packaging practices, and this grade potentially reduces the amount of plastic film used without compromising clarity, which is crucial for brand exposure.
PP complex planned in Turkmenistan
The Government of Turkmenistan is planning to build a new gas-chemical complex for the production of polypropylene and polyethylene in the Balkan province. The complex will be built with the assistance of Turkmengaz, and a consortium of Japanese and South Korean firms, including Toyo Engineering, LG Engineering, and Hyundai Engineering.
Comments: The majority of the new polypropylene capacity is scheduled to come on stream in China, India, and Eastern Europe over the next five years. The investment is based on the availability of cheap natural gas feedstock in the region. Most of Turkmenistan’s polypropylene is sold to neighboring Eastern European countries and this project will be built keeping the export market in focus.
ASIA PACIFIC
Samsung General Chemicals to merge with Samsung Petrochemical
Samsung General Chemicals will merge with Samsung Petrochemical and the new company will be called Samsung General Chemicals. The decision will have to be approved by the shareholders and if approved the merger process would be completed by June 1.
Comments: The two companies are merging to align their growth strategies and increase cooperation and production efficiency between the five chemical divisions of Samsung. Samsung General Chemicals is the holding company for a joint venture of Samsung and Total that currently produces para-xylene and polyolefins, with an aromatics complex due to come on stream later this year. Samsung General Chemicals will be able to supply Samsung Petrochemical with chemicals directly when the merger is completed.
Sichuan Petrochemical achieves on-spec PE production
Sichuan Petrochemical has achieved on-spec HDPE at its new plants this month. The plant is located in Sichuan, China, and has a capacity of 300 KTA LLDPE, 300 KTA HDPE, and 450 KTA polypropylene. It is also expected to achieve on-spec LLDPE production this month.
Comments: This plant is one among several new polyethylene plants that are expected to come onstream in China. China is expected to add over 2,000 KT of PE capacity by 2017 and this region is witnessing one of the largest capacity additions across the globe.
Sinochem gets preliminary approval for ethylene project
Sinochem has secured approval for preliminary work for a 1,000 KTA ethylene plant in Quanzhou. The start-up for this plant is expected to be in 2016.
Comments: China is pursuing the largest petrochemical capacity additions in the world in an attempt to cut its import dependence on ethylene, which is currently almost 50%. The country is expected to add over 8 thousand KTA in ethylene capacity in the next three years in steam crackers and coal-to-olefin plants. Sinochem is planning the 1,000 KT ethylene project as part of a giant petrochemical complex integrated into a refinery. The plant will use heavy feedstock, with operation expected in 2017.
India’s GAIL to set up PBR plant
GAIL will be constructing a polybutadiene rubber plant in Dahej, Gujarat. ONGC has agreed in principle to a 50:50 partnership with GAIL in the project. The PBR facility will use the butadiene from the adjacent petrochemical plant of ONGC Petro-additions Ltd., which is scheduled for commissioning by the end of 2014. The commissioning of the PBR plant is scheduled for the first quarter of 2017.
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