AMERICAS
ExxonMobil Chemical divests its stake in Univation Technologies
ExxonMobil Chemical has divested its stake in Univation Technologies, a PE licensing joint venture with Dow Chemical. Univation Technologies will become a wholly-owned subsidiary of Dow Chemical. The transaction is expected to close by the end of 2014 and is subject to regulatory approval.
Comments: Univation Technologies was formed in 1997. It was formed during the period when Dow, BP, ExxonMobil, and Union Carbide were at the peak of metallocene technology. Dow and ExxonMobil had metallocene technology but did not have to license whereas BP and Union Carbide had the licensing but did not have metallocene technology. Therefore, Univation was formed as a licensing-technology JV between ExxonMobil and Union Carbide. However, when Union Carbide was acquired by Dow they split it with PP versus PE. Since metallocenes went to Univation, PP licensing remained with Dow. In 2013, Union carbide’s PP licensing moved from Dow to WR Grace. Univation PE technology has remained with Univation as a combination of Dow, ExxonMobil, and old Union Carbide. The current issue of ExxonMobil divesting its stake is a good strategy for ExxonMobil, as they have strong licensing for PE/PP technologies. Also, it gives them an opportunity to license their future developments in metallocene technology.
Lyondell Basell Considering ethylene capacity expansion in Texas
LyondellBasell is evaluating an ethylene expansion project at Channelview, TX to increase capacity by about 250 KT. The project, if approved, is expected to be completed by 2017.
Comments: LyondellBasell is building several ethylene expansions to grab the advantage of low-cost, highly abundant shale gas-based ethane feedstock in North America. In addition to the Channelview expansion, LBI has planned to start bringing three projects that total over 800 KT of ethylene between 2014 and 2015. By 2017, LBI will have brought over 1,000 KT of ethylene online through all its projects.
Ineos to license PE technology to Ascent
Ineos will be licensing its Innovene S and InnoveneG polyethylene technologies to be used by the proposed Ascent petrochemical complex currently being evaluated by Odebrecht and Braskem in West Virginia.
Comments: Unlike most of the grassroots crackers planned in North America in response to abundant ethane from shale gas development, the Ascent project is planned to be constructed in West Virginia instead of the traditional petrochemical hub on the Gulf Coast. The West Virginia location ensures proximity to the huge Marcellus and Utica reserves, where natural gas liquids production has recently increased dramatically. Ineos has already leased its Innovene S technology to Braskem for the Etileno XXI petrochemical complex in Mexico, so this deal continues the partnership between the two companies. This development, along with the June 2014 announcement that Antero Resources would provide 30 thousand barrels per day of ethane (about half the feedstock needs) to the project, significantly increases the likelihood that the Ascent complex will be constructed.
Asahi Kasei breaks ground on plastics compounding plant in the US
Asahi Kasei has broken ground on a plastics compounding plant in Athens, AL. The new plant will have a production capacity of 30 KTA and is expected to be operational in the first quarter of 2016.
Comments: Asahi Kasei’s new plant is in line with the growing demand for thermoplastic compounds in North America. The plant produces compounds based on nylon 6, polypropylene, and other thermoplastics for the automotive end-use. Asahi Kasei strategically located the new plant close to major automotive manufacturers such as Honda, Toyota, Nissan, Volkswagen, and automotive OEMs, between Alabama and Tennessee. Asahi Kasei already operates a 90 KT compounding plant in Fowlerville, Michigan.
A first nationwide ban on single-use plastic bags at grocery and convenience stores
California is the first state to ink a statewide ban on single-use plastic bags at grocery and convenience stores. Starting from the summer of 2015, plastic bags will be phased out of checkout counters at large grocery stores and supermarkets and convenience stores, and pharmacies starting in 2016. The ban does not apply to bags used for fruits, vegetables, or meat; it is also not applicable to shopping bags used at other retailers.
Comments: California became the first state in the USA to ban single-use plastic bags at groceries and supermarkets. HDPE is the largest material used in single-use plastic bags, followed by LDPE. The ban was entirely based on environmental concerns in the state and will have no effect on the overall polyolefins market. Since the litter produced from used HDPE bags is considerably small compared to other plastics, other states are unlikely to follow California.
Sumitomo Corp. writes down losses over shale gas projects in Texas
Sumitomo Corp. has disclosed an impairment loss of USD 1.6 billion on its shale gas project in the Permian basin in Texas. The complex geological conditions revealed by the test drills have led to the cancellation of the project. Sumitomo Corp. had been carrying out this project with Devon Energy Group.
EUROPE
Tomskneftekhim to expand HDPE, PP capacity
Tomskneftekhim is planning to increase the capacity of polyethylene and polypropylene at its facility in Tomsk in west Siberia. Tomskneftekhimplans to increase HDPE production capacity by 40 KT and PP production capacity by 10 KT. The project is expected to be completed in 2017.
Comments: SIBUR has recently invested heavily in increasing its petrochemical capacity as well as matching Western producers in resin quality. SIBUR recently started up a PP plant using Ineos technology, and local buyers and converters responded positively to the improvement in resin quality relative to other domestic PP plants. TNK has realized the importance of using modern production technology to its competitiveness in the Eastern European market.
Sibur and Govt. of Amur sign agreement for ethylene and derivatives project
Sibur has signed an agreement with the Govt. of Amur for the potential development of the gas chemical industry. The local government will look into the possibility of assisting in the construction of infrastructure facilities required to build and operate the gas chemical complex and including these facilities in the state program for the Socioeconomic Development of the Russian Far East and the Baikal Region through 2025.
Comments: Russian energy giants have recently looked to decrease their reliance on oil and natural gas exports and focus more on downstream value-added products. Sibur, Russia’s leading vertically integrated petrochemical company is partnering with Gazprom in this endeavor. Gas is expected to be sourced from the Chayadinskoye and Kovyktinskoye fields and transferred via the Power of Siberia transmission system approved in 2007. Sibur will be able to take advantage of the ethane separated by the 60 billion cubic meters per year gas processing facility to produce an estimated 2,400 KTA of ethylene and derivatives. Approval of the Amur governor gives SIBUR access to government construction crews and local government officials a piece of the flexible construction budget.
Styrolution completes transparent styrene copolymers project
Styrolution plans to begin production of NAS and Zylar transparent styrene copolymers at a new plant in Ludwigshafen, Germany, this month. Styrolution has already begun the production of NAS in Decatur, AL. NAS products are transparent styrene-methyl methacrylate copolymers (SMMA). Zylar products are impact-modified transparent methyl methacrylate-butadiene-styrene copolymers (MBS).
Comments: Styrolution produces NAS® styrene-methyl methacrylate copolymers (SMMA); Zylar® and Clearblend® impact modified methyl methacrylate-butadiene-styrene copolymers (MBS). These transparent styrene copolymers are used in electronics, packaging, sports & toys, household, and medical end-use applications. With the start-up of the new plant in Ludwigshafen, Styrolution will supply styrene copolymers from Alabama, USA, and Ludwigshafen, Germany. The start-up of NAS® in Germany facilitates Styrolution to supply SMMA throughout Europe, the Middle East, and Africa, which bolsters the company’s position in the styrenics market, especially in EMEA.
Lanexess subsidiary completes capacity expansion for lightweight plastics
Bond-Laminates, a wholly owned subsidiary of Lanxess has completed the capacity expansion of Tepex lightweight plastics at the Brilon site. The capacity has been expanded by about 75%. The Tepex product line comprises continuous fiber-reinforced thermoplastic composites.
Comments: Tepex continuous fiber reinforced thermoplastic composites are used as a lightweight alternative to heavier materials and find applications in the automotive, aerospace, electronics, and sporting goods industries. Materials such as polyamide, polypropylene, thermoplastic polyurethane, polycarbonate, or polyphenylene sulfide are used for the thermoplastic matrix. Lanxess acquired Bond-Laminates in 2012 as a part of its high-performance materials business unit.
MIDDLE EAST & AFRICA
Azerbaijan to commission PP plant in H2-2016
Azerbaijan plans to commission a polypropylene plant in the third-fourth quarter of 2016. The PP plant will be constructed in Sumgayit Chemical Technology Park. Also, a low-pressure polyethylene facility will be commissioned after launching the PP plant.
Comments: Azerbaijan has large reserves and established production of oil and gas, which are two of the country’s most important exports. Azerbaijan exports about 820 thousand barrels per day of crude oil and about 7 billion cubic meters of 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 Summit with a total capacity of a mere 150 KTA.
Advanced Petrochemical to increase PP capacity
Advanced Petrochemical will increase the production capacity of its polypropylene plant from 450 KTA to over 500 KTA. Currently, Advanced Petrochemical has undertaken a debottlenecking project. The capacity increase is expected to be completed by mid-2015.
ASIA PACIFIC
Advanced Petrochemical and SK form a joint venture for the PDH plant
Advanced Global Investment Co. (95% owned subsidiary of Advanced Petrochemical) and SK Gas have formed a joint venture, SK Advanced Co, for the propane dehydrogenation project at Ulsan, Korea. Advanced Global Investment Co. will hold a 35% stake in the JV while SK Gas will own 65%. The USD 1 billion plants will have a production capacity of 600 KT of propylene. Construction is expected to be complete in the first half of 2016.
ONGC postpones completion of Opal petchem complex
ONGC has postponed the completion of the Opal petrochemical project until June 2015 and ONGC has also decided against an initial public offering for Opal. The plant is expected to be mechanically complete by April 2015 and commercial operations are expected to start in June 2015. The complex had been originally planned to come onstream at the end of 2012.
Comments: ONGC’s Opal petrochemical complex will consist of a dual feed cracker with a capacity of 1,100 KTAethylene, 400 KTA propylene, and associated units producing pyrolysis gasoline, butadiene, and benzene. Opal also includes downstream petrochemical units producing HDPE/LLDPE, PP, and a dedicated HDPE plant. ONGC, which is one of the key partners, will supply the feedstock for Opal and thus achieve forward integration into petrochemical production. This plant will use Ineos’ Innovene PP process, Innovene G HDPE/LLDPE, and Mistui’s proprietary HDPE process for the dedicated HDPE plant. Besides catering to the growing needs of the domestic market, Opal will also target its products for export countries in Asia-Pacific and Africa.