AMERICAS
Axiall partners with Lotte for a cracker
Axiall and Lotte Chemical have signed a preliminary agreement for a 50/50 joint venture for the construction of a 1,000 KTA ethane cracker in Louisiana. The cracker, which would be fed by shale gas, could begin operations in 2018, subject to the project approval by the companies’ respective boards of directors.
Comments: The low-cost ethane as a result of shale gas developments has resulted in a massive wave of new ethylene expansions by essentially every olefins and derivatives producer in North America and several foreign players. This venture is the 10th proposed world-class ethane cracker planned to be built in North America. The cracker would expand Lotte’s global ethylene capacity by almost a third and give Axiall cost-advantaged feedstock to make PVC.
Dow Chemical rejects breakup plan
Dow Chemical’s internal evaluation has determined that separating its petrochemical and specialty chemicals assets would negatively impact Dow by eliminating benefits of scale, integration, and technology benefits across multiple value chains.
Braskem and Siluria cooperate to produce ethylene from methane
Siluria Technologies plans to conduct a joint feasibility study with Braskem to evaluate its oxidative coupling process for producing ethylene from methane. Based on the outcome of the feasibility study, a commercial plant, with a capacity of about 34-68 KT, based on this process could start up by 2017. Siluria is building a demonstration plant at Braskem’s site in La Porte, Texas.
Comments: The oxidative coupling of methane is a chemical reaction that converts methane directly to ethylene. This reaction, which was discovered in the 1980s, has been studied extensively ever since as it offers significant economic benefits. Despite its potential economic benefits, the development of a commercially viable catalyst for the process has always remained a challenge, due to which the process could not be commercialized. Siluria’s OCM technology employs a novel process to develop commercially viable OCM catalysts. In this process, viruses are used to create biological templates, which upon complete synthesis are burned away leaving behind nanowire catalysts and the best-performing catalyst is identified using a high-throughput screening process. This process, when commercialized could prove to be cost-competitive compared to the most advantaged ethane crackers in the US.
Dow Chemical rejects breakup plan
Dow Chemical’s internal evaluation has determined that separating its petrochemical and specialty chemicals assets would negatively impact Dow by eliminating benefits of scale, integration, and technology benefits across multiple value chains. This is in response to a recent proposal by an investor, Third Point LLC, which suggested that Dow should consider spinning off its petrochemical operations.
EUROPE
Styron acquires S-SBR production capacity rights from JSR
Styron has acquired JSR’s production capacity rights for solution-polymerized styrene butadiene rubber at Styron’s site in Schkopau, Germany. JSR acquired the capacity rights for 30 KTA of S-SBR from Styron in 2007. Styron will have the production capacity rights to this line starting from April 1, 2014.
Comments: Styron has concentrated its effort to supply tire producers with SSBR which is increasingly being consumed for fuel-efficient tires in Europe. Styron in addition has been focusing its R&D resin grades that would improve fuel efficiency. The company has developed functionalized grades that would help in improving the distribution of silica for tire tread applications.
Versalis to close UK plant
Versalis will close its plant in Hythe, UK this quarter. Versalis manufactured synthetic rubber for tires and molded foams at the Hythe plant. The closure is due to the economic slowdown that has impacted the automotive sector.
Comments: Versalis has produced synthetic rubber at the Hythe site for about 50 years. The automotive market in the EU is now witnessing a period of slow demand, which has affected the synthetic rubber market. The reduction in the European market for commodity emulsion products, coupled with capacity increases in Asia has led to the closure of this plant. Also, Versalis is reducing its capacity for commodity chemicals and increasing the focus on the production of premium products such as elastomers and styrenics.
Rosneft mulls construction of synthetic rubber plant in Armenia
Rosneft, jointly with Pirelli, is mulling the construction of a rubber plant to produce styrene butadiene rubber which would be used to produce eco-friendly tires. Recently, Rosneft signed an MoU for a joint R&D in styrene-butadiene rubber with Pirelli and Armenia’s Oil Techno.
Comments: Pirelli is partnering with Rosneft to generate a steady supply of high-quality styrene butadiene rubber for tires to take advantage of the growing Russian market. Rosneft is looking to invest in downstream assets using relatively inexpensive Armenian labor. This is the third agreement between Rosneft and Pirelli, following the joint R&D deal signed in 2013 covering synthetic rubber, reinforcing materials, and fillers such as carbon black.
MIDDLE EAST & AFRICA
SABIC introduces new PP grades
SABIC has introduced two new pharmaceutical grades of polypropylene. The two grades are high-flow random copolymers that are suitable for the production of high-clarity, thin-walled products. The first-grade SABIC® PP PCGR40 is suitable for the production of three-piece syringes, and the second-grade SABIC® PP PCGR40 is suitable for two-piece syringes.
Comments: The development of the new polypropylene grades is consistent with SABIC’s strategy of diversifying its downstream portfolio. The market for plastics in medical devices is growing at high rates in emerging regions, especially Asia. The new random PP random copolymer grades target thin-walled products that require high levels of clarity like syringes, where users need to see the level of the liquid and to ensure that there are no bubbles. Both grades have a melt flow rate higher than the industry standard, allowing producers to reduce cycle times.
Qatar’s Al-Sejeel project on track
The Al Sejeel Petrochemical complex has moved to the front-end engineering and design phase. The project is on track with the commercial launch expected by the end of 2018. The Al Sejeel project is a joint venture between Qatar Petroleum and Qatar Petrochemical Company. Al Sejeel petrochemical complex will produce 166 KTA ethylene, 169 KTA HDPE, 68 KTA LLDPE, and 169 KTA PP. In addition to these products, Al-Sejeel will also produce butadiene and pyrolysis gasoline.
Comments: The Al-Sejeel Petrochemical Complex is a USD 5.5 billion investment, and it is the first mixed-feed steam cracker in Qatar. It will also be the first plant in Qatar to produce polypropylene. Qatar intends to raise its petrochemical output to 23,000 KTA by 2020 to support the growth of its economy. Qatar also hopes to be the second-largest petrochemical producer in the Middle East after Saudi Arabia, by 2020.
ASIA PACIFIC
Ningbo Fortune licenses UOP’s Oleflex propylene technology
UOP has licensed its C3 Oleflex process to Ningbo Fortune Petrochemical for a new propane dehydrogenation plant to convert propane to propylene. The new plant will have a capacity of 600 KTA and is expected to start up in 2016.
Comments: With the increasing demand for polypropylene and other propylene derivative products, producers in China announced several propane dehydrogenation projects. UOP’s Oleflex and Lummus’ Catofin are the most widely licensed propane dehydrogenation technologies. This is the 18th license for UOP’s Oleflex technology worldwide since the beginning of 2011. Ningbo Fortune Petrochemical is a subsidiary of Oriental Energy Co. Ltd. This is the second UOP Oleflex technology license by Oriental Energy. In 2012, Oriental Energy licensed this technology for Zhangjiagang Yangzi River Petrochemical Co., Ltd., in Jiangsu, China.
Mitsubishi Plastics to build film unit in Indonesia
Mitsubishi Plastics plans to build a new plant to produce the polyolefin-based film at an investment of USD 14.4 million in Merak, Indonesia. This would be Mitsubishi Plastics’ first polyolefin film production facility in Indonesia and will be built at the site of MC PET film Indonesia. Commercial operations are expected to begin in the first half of 2015.
Comments: Mitsubishi’s KTF film, which has previously been produced and sold in Japan and Taiwan, is a moisture transmission film that transmits water vapor but blocks water droplets. The film is often used in hygienic items such as disposable diapers and sanitary napkins. Demand for the film is rapidly increasing in Indonesia, due to a rising standard of living and superior properties of disposable diapers made from moisture transmission film to those of previous alternatives. Construction of the facility is in line with Mitsubishi’s strategy to enlarge production capacity in Asia in countries other than Japan.
Indian Oil’s PP project to start up in 2017
Indian Oil Corporation plans to start up its delayed polypropylene project at Paradip in 2017. The PP plant is associated with the 15,000 KTA refinery at the same site which is expected to start operations this year. The PP plant would have a capacity of 600 KTA and would be built at an investment of about USD 1 billion.
Comments: Indian Oil Corporation Limited (IOCL) is one of India’s largest refineries with a total refining capacity of about 80,000 KTA (including the upcoming refinery at Paradip). The much-delayed Paradip refinery that is scheduled to start its operations in 2014 will produce naphtha, sulfur, and propylene, in addition to fuel oil and LPG. IOCL will produce about 200 KTA of propylene feedstock for its auxiliary PP plant that is scheduled for start-up in 2017.
Samsung Total starts EVA/LDPE plant
Samsung Total is starting up its new 240 KTA EVA/LDPE plant in Daesan, South Korea. The plant will mainly produce LDPE until operations stabilize, after which the plant will also produce EVA. EVA production is expected to begin in March.
Comments: Samsung Total is a joint venture between South Korea’s Samsung General Chemicals and France’s Total Petrochemical. The new LDPE/EVA swing plant will use LyondellBasell’s Lupotech T technology. Samsung Total produces petrochemical products, such as polyethylene, polypropylene, polypropylene compounds, styrene monomer, and other base petrochemicals (benzene, butadiene, etc.) at the Deasan petrochemical complex.
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