AMERICAS
Dunkin’ Donuts seeking replacement of EPS cup
Dunkin’ Brands Group Inc. has looked for alternatives to expanded polystyrene (EPS) foam cups for its coffee cups. Currently, polypropylene foam cups from Berry Plastics Group have been considered the best alternative to EPS foam cups. Dunkin’ Donuts also seeks a new and recyclable lid to be tested in the next 12 to 18 months.
Comments: Many major U.S. cities, such as San Francisco, Oakland, Washington DC, Portland, and New York City have decided to ban disposable expanded polystyrene foam food packaging with a mid-2015 effective date. These bans will hurt the growth rates of polystyrene in the foam food packaging market segment but can be positively viewed by converters and resin producers as it opens up new market opportunities. High melt strength polypropylene (HMS-PP), due to foamability, excellent heat resistance, and process-related recyclability, has been used as raw materials to make foam food packaging by many converters, such as America-based Berry Plastics Group and Taiwan-headquartered Reach Plastics Industrial. Meanwhile, many resin producers are developing HMS PP resins, trying to enter in the specialty market.
Pemex considers selling the refining and petrochemical sectors
Mexican state-owned Pemex has looked into options for moving itself toward a profitable corporation. One of the options is selling refining and petrochemical businesses and shifting focuses to more profitable sectors, such as exploration and production. Partnering up with private companies to upgrade out-of-date facilities might be another option. There are no further details or timeframe for this evaluation.
Comments: Pemex had monopolized Mexico’s energy sector, from exploitation, production, refining, and retailing, for 75 years until last year the country enacted legislation to open the oil and gas market to foreign investors. Despite low labor costs in Mexico, its petrochemical downstream suffers from relatively high energy costs when compared to the U.S. and the availability of raw materials due to a lack of investments in technology upgrades from Pemex. The new legislation is intended to attract more private and international firms to come to Mexico to bring capital and technology, which in turn boost the development of Mexico’s oil and gas industry. Recently, Pemex has begun a restructuring plan to face foreign competition. Under the plan, Pemex will consolidate its businesses into two divisions, upstream and downstream, and the five non-core subsidiaries will become affiliated companies.
JyTech Polymers to boost TPV compounding capacity
JyTech Polymers plans to team up with Buckeye Polymers for a new custom compounding line of thermoplastic vulcanizates (TPV) at the Lodi, Ohio facility of Buckeye Polymers. The facility will utilize Buckeye’s post-customized polypropylene as raw material for TPV and is scheduled to come online in 2016.
Comments: This move is a win-win situation for both JyTech as well as Buckeye Polymers. JyTech will install a TPV compounding line within Buckeye’s facility in Ohio where it will increase Buckeye’s compounding capacities. JyTech will utilize Buckeye’s post-consumer material to process the TPVs. This material is said to be similar in spec to virgin resin and has OEM approval. This move also gives Buckeye exposure in Asian markets where JyTech is a recognized name due to its partnership with Shanghai Jinbao in China.
EUROPE
Alupol Films to build BOPP film production line
Polish-based Alupol Films has partnered up with Germany-based Brückner to set up a bioriented polypropylene (BOPP) film production line at its new plant in Krakow Technology Park’s special economic zone. The new BOPP production is expected to have a capacity of at least 5 tons per hour and is slated to come on stream in 2016.
Comments: Poland has recently become the most attractive market in Europe for investment in polyolefin films. The Polish domestic market currently has only one domestic supplier of PP film, Flexpol, with almost half of the country’s demand supplied through imports. Although that will soon change, as several foreign and domestic suppliers have announced plants in the past year alone. Alupol Films is the plastic films division of a large Polish metal processing conglomerate, Grupa Kety, which has previously considered getting rid of this fringe business. The vibrant growth of the flexible packaging sector in the region has made Grupa Kety change course and settle on a strategy of expanding film production capacity and technological capability, with a 9-layer high barrier polyethylene blowing line and downstream laminating and printing equipment added in the past five years.
MIDDLE EAST & AFRICA
Dangote Oil Refining selects Honeywell’s technologies for its integrated petrochemical complex
Honeywell licenses its UOP technologies to Nigeria-based Dangote oil refining for a new petrochemical complex in Lekki, near the Capital of Logas. The complex will comprise UOP Resid Fluid Catalytic Cracking (FCC) to refine crude oil as well as to supply propylene as the feedstock of polypropylene, and other technologies to produce transportation fuels, such as the CCR Platforming™ process, Unicracking™ process, and Penex™ process.
Comments: The proposed oil refinery situated in Ibeju-Lekki, Lagos is expected to be functional by the first quarter of 2018, with an estimated production capacity of about 500,000 barrels per day. UOP LLC, a sister company of Honeywell Technology, will provide the process technology catalysts and proprietary equipment, which would be the basis for the Dangote Refinery. The project is mainly aimed to reduce Nigeria’s dependence on refined product imports. Along with the planned production of high-quality gasoline, diesel, and jet fuel (which is aimed to meet the Euro V specifications to reduce emissions), the new facility will also produce polypropylene. The technology at the facility will include the CCR Platforming™ process to produce high-octane gasoline blending components; the Unicracking™ process to produce diesel and the Penex™ process to produce high-octane gasoline among many others. This facility will further enhance Nigeria’s dominance in oil production among African countries, which is already a leading crude oil producer in this region at 445,000 barrels per day.
SABIC to begin operation of plans Al-Jubail elastomers facility
Kemya, a 50:50 JV between ExxonMobil and SABIC, targets the end of 2015 to have the Al-Jubail elastomers plant operational. The facility will produce a combined capacity of 400 KTA of various products, such as butyl rubber (IIR), styrene-butadiene rubber (SBR), butadiene rubber (BR), and ethylene-propylene-diene monomer (EPDM), thermoplastic specialty polymers and carbon black
Comments: Fast growth in the transportation sector in the Middle East and Asia has rapidly increased demand for synthetic rubber products. The addition represents a significant broadening of Kemya’s traditional product portfolio, adding production capacity for several kinds of synthetic rubber including halo butyl, styrene-butadiene, polybutadiene, EPDM, thermoplastic specialty polymers, and 50 KTA of carbon black. The plant has state-of-the-art technology licenses from three companies, with ExxonMobil providing its proprietary EPDM, thermoplastic elastomer, and halo butyl rubber technology, Goodyear Tire and Rubber Company providing SBR and polybutadiene technology, and Continental Carbon Company providing the technology for carbon black. In addition to supplying a fast-growing market, the plant demonstrates Kemya’s ability to bring together leading technology licenses and engineering construction companies under one roof.
Iran to start up 3 polyethylene facilities later this year
Iran’s state-owned National Petrochemical Company plans to start up three new polyethylene facilities in Mahabad, Kordestan, and Lorestan by the end of 2015. The PE plants in Mahabad, Kordestan, and Lorestan will produce 330 KTA of HDPE/LLDPE, 300 KTA of LDPE, and 300 KTA of HDPE/LLDPE respectively, all of which secure feedstock from West Ethylene Pipeline.
Comments: Iran is dedicated to expanding its domestic petrochemical output in past years through the National Petrochemical Company, intending to become the largest petrochemical producer by sales value in the Middle East area by 2025. The West Ethylene Pipeline, stretching from Assaluyeh in southern Iran near the Persian Gulf to Mahabad in northern Iran, and 14 petrochemical plants along the pipeline all expected to be operational by end of this year, will allow Iran to fully take advantage of its abundant and cheap ethane resources. Iran currently has 60 other petrochemical plants in various construction stages, which will increase national petrochemical output to 120,000 KTA. It is estimated USD 30 billion of additional funding is needed to complete all of them. Recently, Iran has reached an interim agreement on the nuclear program with the P5+1 group of countries -the US, the UK, France, Germany, Russia, and China, in exchange for international sanction relief that will hopefully take effect at the end of 2015. The deal is expected to help Iran attract foreign investments, accelerating the development of the petrochemical industry and boosting Iran’s economy.
ASIA PACIFIC
PTTGCto increase international presence
PTT Group Chemical has joined Indonesian state-run Pertamina and Aramco for a petrochemical complex that includes a 1500 KTA olefins cracker, a 400 PE facility, a 200 KTA PVC unit,anda350KTA a PP facility in Java Island, Indonesia. The complex will be integrated with Pertamina’s existing refinery in Balongan, Indonesia, and is expected to be up and running by 2022. In the meantime, its parent company PTT also has partnered with Aramco for a 600,000 bbl/d refinery and a petrochemical complex with a combined downstream product capacity of 4900 KTA in Vietnam. The project in Vietnam is scheduled for construction in 2016 and start-up in 2020.
Comments: In the past few years, Thailand’s state-run oil and gas company PTT has been strategically involved in several projects outside of Thailand. Besides to petrochemical projects in Vietnam and Indonesia, PTT recently teamed up with Japanese-based Marubeni Corporation for a shale gas-based ethane cracker and C2 derivatives production plant in the USA, which is currently in the feasibility study phase. All of these projects are in accordance with PTT’s corporate strategies to increase its international presence, especially in the Asia-Pacific arena.
PTTGC considers building two new petrochemical plants in Thailand
PTT Global Chemical plans to set up a USD 1 billion propylene oxide and polyols facility and a USD 200 million metallocene linear low-density polyethylene (mLLDPE) plant in Rayong, Thailand. Once the new mLLDPE plant comes on stream, PTTGC’s LLDPE capacity will increase by 300 KTA to 700 KTA. More details of these projects are slated to be disclosed in 3rd quarter of 2015.
Comments: PTTGC may partner with Japan’s Marubeni Corporation and a third partner to build an ethane cracker in Belmont County, Ohio. If built, the JV plans to use shale-gas-based ethane feedstock to manufacture ethylene and downstream products. PTTGC hopes to capitalize on the high margins that ethane gives over naphtha in North America. However, with 10 new greenfield crackers announced in the US coupled with a downstream demand not growing at an equal pace, it will be critical for PTTGC to secure markets for its products. On the flip side, PTTGC will go ahead with the investment in a new LLDPE expansion to keep pace with the growing demand for the material in Thailand and other parts of Asia, especially in China.
Zhangjiagang Yangzijang Petchem to start up C3 production
Zhangjiagang Yangzijang Petrochemical has begun testing production of the first phase of its vertically-integrated C3 production complex in Jiangsu, China, which will eventually produce 1200 KTA of propylene and 1200 KTA of polypropylene. Under phase one of the propylene project, the company will produce 600 KTA of propylene using UOP’s process and 400 KTA of polypropylene using UNIPOLTMPP technology.
Comments: Zhangjiagang Yangzijang Petrochemical is a subsidiary of Oriental Energy, which is a major privately owned and operated supplier of LPG in China. Currently, China still relies on imports to meet domestic demand for propylene and polypropylene. Oriental Energy sees this as a market opportunity and has strategically expanded its business toward C3 downstream productions. Besides the C3 production complex in Zhangjiagang, Jiangsu, Oriental Energy has another C3 complex in Ningbo that includes two 66 KTA propane dehydrogenation (PDH) units and one 40 KTA PP plant under construction. The complex in Ningbo is scheduled for full operation in 2017 and will be run by its wholly-own subsidiary Ningbo Fortune Petrochemical.
Lotte Chemical evaluating a new ethylene production unit in Indonesia
Lotte Chemical Titan, an Indonesia subsidiary of South Korea-headquartered Lotte Group, is planning to build a USD 4 billion ethylene facility in Cilegon, Indonesia, to increase self-sufficiency in raw materials. Currently, the company heavily relied on imported raw materials to manufacture its downstream products.
Comments: South Korea’s Lotte Chemical entered the Indonesian petrochemical market through the acquisition of PT Titan Petrokimia Nusantara in 2010. The company currently produces 450 KTA of PE (LLDPE and HDPE) using raw materials imported from Malaysia. With prices of products decreasing in recent times, raw material import from Malaysia is no longer competitive for Lotte Chemical. The price plunge and uncertain raw material supply led Lotte Chemical Titan to build its ethylene cracker. This will allow Lotte Chemical to become competitive within the domestic market, considering Chandra Asri produces ethylene for its downstream products.
Liaoning North Dynasol Synthetic Rubber to begin testing production
Liaoning North Dynasol Synthetic Rubber plans to begin testing production at its new 100KTA synthetic rubber plant in Panjin, China by the second quarter of 2015. The facility will produce styrene-butadiene-styrene (SBS) block copolymers, solution styrene-butadiene rubbers (SSBR), and low-CIS butadiene rubbers (LCBR).
Comments: Liaoning North Dynasol Synthetic Rubber is a 50:50 joint venture between Shanxi Northern Xing’AnChemicalandDynasol. ShanxiNorthern Xing’AnChemicalIndustry provides access to raw materials for planned synthetic rubber production, while Dynasol contributes its proprietary technologies and know-how. Currently, Dynasol has two production sites in Santander, Spain, and in Altamira, Mexico respectively, with a combined capacity of 200 KTA. Once the facility begins commercial production, Dynasol will increase its overall capacity by 50% and be able to capitalize on the increasing demand for high-performance synthetic rubber driven by automobiles in China and Southeast Asia.
Petronas targets to complete the RAPID project in 2019
Malaysia-based Petronas has rescheduled the start-up of the Refinery and Petrochemical Integrated Development (RAPID) project to 2019. RAPID is part of the proposed Pengerang Integrated Petroleum Complex (PIPC) with LNG terminals, a refinery, a power plant, and production units of petrochemicals, such as synthetic rubbers and polymers.
Comments: Refinery and Petrochemicals Integrated Development (RAPID) aims at building a world-scale integrated refinery and petrochemical complex. The proposed refinery will have a capacity of about 300,000 barrels per day. The refinery will supply naphtha and liquid petroleum gas feedstock for the RAPID petrochemical complex, as well as produce gasoline and diesel that meet European specifications. The petrochemical units, on the other hand, will enhance the value of the olefinic streams coming from the RAPID steam cracker by producing various merchant grades petrochemicals products such as polyethylene, polypropylene, synthetic rubbers, and other petrochemicals products. Technip has been awarded the front-end engineering design (FEED) contract for the refinery project. CB&I has obtained the contract for the license and engineering design work for five petrochemical units. Lummus Technology will be used for the steam cracker complex comprising ethylene, butadiene, benzene, isobutylene, and MTBE units.