AMERICAS
CPChem to go ahead with alpha olefins expansion
CPChem plans to begin a 100 KT expansion of its normal alpha-olefins plant at Cedar Bayou in Texas. CPChem has obtained the approval of its board and the required environmental permits.
Comments: The expansion of the alpha-olefins plant further reflects CPChem’s strategy to take advantage of inexpensive ethane derived from North American shale gas. The plant will share infrastructure and workforce talent with an existing 1-hexene plant, reducing start-up and operational costs. S&B Engineers and Constructors Ltd will perform the EPC stage of the project. The capacity expansion is expected to be finished by July 2015.
Kraton expects to renegotiate the LCY deal
Kraton Performance Polymers is rethinking its planned merger with the styrene block copolymers’ operation of LCY Chemical. Kraton and LCY may renegotiate the terms of the planned merger which would have resulted in LCY getting a 50% stake in Kraton.
Comments: The merger between Kraton and Taiwan-based LCY’s SBC business, which was announced in January, would have potentially created a leading global manufacturer of styrenic block copolymers with annual revenue of over USD 2 billion. However, the terms of this deal are expected to change mainly due to the decline in results of LCY’s SBC business which can be attributed to low demand growth and overcapacity for the material, especially in China.
Nova boosts PE capacity
Nova Chemical has installed a new reactor at its expanded polyethylene plant in the Joffre complex. The new reactor joins the two existing reactors and is expected to increase the total PE capacity by 40% to about 1,140 KTA of LLDPE. The project is expected to wrap up by mid-2016.
Comments: Nova Chemicals is the largest polyethylene producer in Canada. The company’s Joffre chemical complex currently operates three ethylene manufacturing facilities and two polyethylene manufacturing facilities. Nova currently manufactures over 1,000 KTAs of HDPE, MDPE, and LLDPE at this complex.
Braskem to build PE 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.
Comment: 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. UHMWPE has excellent mechanical properties, is eight times lighter than steel, and lasts 10 times longer than HDPE. 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.
Styron to change the name to Trinseo
Styron will change its name to Trinseo in early 2015. The name change is expected to better reflect the broad position of the company, which is a major producer of the styrenics chain, as well as a broad range of synthetic rubbers including SSBR, ESBR, Ni-BR, and Li-BR.
EUROPE
Sibur considering sites for petchem projects
Sibur is considering sites in Chernigovka, in Russia’s Amur Region for the construction of a petrochemical complex. Sibur and Gazprom signed a memorandum of cooperation through which Gazprom is expected to construct a gas processing plant in Russia’s far eastern region and Sibur, using the ethane from the gas processing plant, would construct a petrochemical complex at Amur region.
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 an ideal partner for Gazprom in this endeavor. Gas is expected to be sourced from 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 cost-advantage petrochemical products.
Nizhneskamsk starts production of new PP grades
Nizhnekamskneftekhim has started the production of a new polypropylene grade as a part of an import-substitution program. The new grade is a random copolymer of propylene and ethylene and has enhanced optical properties. Presently, Russia imports such grades from producers such as LyondellBasell, Borealis, Sabic, and Ineos among others.
Comments: Russia’s increasing production of specialty products has called for more advanced grades of polypropylene that could not be sourced domestically. The new grade is mainly expected to target the packaging industry. Russian demand for biaxially oriented polypropylene (BOPP) film has increased steadily over the past three years despite widely varying PP resin prices, and domestic production of PP grades should alleviate the jumps in raw material cost.
Lanxess starts up a Nylon unit in Belgium
Lanxess has started up a 90 KTA nylon production facility at Antwerp at an investment of about USD 102 million. Nylon produced at the Antwerp facility is reinforced with glass fibers. Caprolactam is required for nylon production and glass fibers are produced at Lanxess’ Antwerp facility.
Comments: Lanxess produces a Durethan range of nylon 6 and nylon 66. Caprolactam is the precursor for nylon 6. Lanxess produces Durethan nylon-based compounds mainly for the automotive industry to build lighter plastic parts that can replace metals and thus resulting in lighter and safer vehicles that consume less fuel.
Ineos to acquire BAF’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.
Comments: Styrolution was formed in 2011 as a joint venture between BASF and Ineos with its headquarters in Germany. Styrolution produces styrene monomer, ABS, polystyrene, and styrene-butadiene block copolymers (SBCs). Styrolution was formed by BASF and Ineos to compete with low-cost Asian and Middle Eastern competitors.
Rosneft closes deal to buy a stake in Pirelli
Rosneft has closed a deal to buy 50% of the holding that owns a 26.19% stake in Pirelli & C.SpA. In May 2014, Rosneft and Pirelli signed several cooperation agreements. Also, Rosneft and Pirelli intend to set up a synthetic rubber JV in Nakhodka and open retail sales locations for Pirelli’s products in Rosneft’s retail network.
Comments: Rosneft’s purchase of a stake in Pirelli is the next logical step in what has been a steady increase in collaboration between the two companies over the past five years. Pirelli has partnered with Rosneft to generate a steady supply of high-quality styrene butadiene rubber for tires and take advantage of Rosneft’s distribution networks in the growing Russian market. Rosneft and Pirelli already have a joint R&D deal signed in 2013 covering synthetic rubber, reinforcing materials, and fillers such as carbon black. Rosneft and Pirelli have also agreed to jointly produce butadiene-styrene rubber in Armenia.
Arkema expands barrier polymers product range
Arkema has introduced two new grades of EVOH copolymers containing 44% of ethylene. The high ethylene content provides a good balance of barrier properties and processing stabilities. These grades can be processed by single-bubble or double-bubble blew film extrusion for heat shrink applications.
Comments: EVOH is the most common barrier polymer used in multilayer packaging structures. EVOH offers excellent gas barrier properties, excellent transparency, good processability, and good organoleptic properties. With the introduction of two new grades of Evasin, Arkema offers a wide variety of EVOH grades with ethylene content varying from 29% to 44%.
MIDDLE EAST & AFRICA
Samco begins commercial production
Saudi Acrylic Monomer Company (Samco), a joint venture between Saudi Acrylic Acid Co., and Dow Chemical, has started commercial production at the integrated acrylic acid, esters, and superabsorbent polymers production facility. The complex has a capacity of 145 KTA of acrylic acid, 85 KTA of glacial acrylic acid, and 145 KTA of butyl acrylate.
Comments: Saudi Acrylic Monomer Company is the first producer of acrylic acid in the Middle East. The acrylic acid plant operates using the technology supplied by Dow Rohm and Hass unit. This plant would supply feedstock to the super absorbent polymers plant which is a joint venture between Saudi Acrylic Acid Co. and Evonik Industries. Saudi Acrylic Acid Co. is a tie-up between Sahara Petrochemicals and Tasnee.
ASIA
ONGC’s petrochemical complex expected in 2015
ONGC Petro Additions Ltd is expected to commission its new integrated petrochemical complex in Dahej in the first quarter of 2015. The petrochemical complex which is built with an investment of about 4 billion dollars will have the capacity to produce 1,100 KTA of ethylene and 400 KTA of propylene.
Comments: OPAL was established as a joint venture between Oil and Natural Gas Corporation Limited (ONGC), Gas Authority of India Limited (GAIL), and Gujarat State Petroleum in 2006 specially for the construction of OPAL’s Dahej complex. The Dahej petrochemical complex will be the largest olefins unit in India upon completion. The downstream units will produce 350 KTA of PP, using the Ineos process, 350 KTA of HDPE, based on the Mitsui process, and two LLDPE lines, each designed to produce 360 KTA using Ineos technology.