Dow Stop Production on Polystyreme Poor Economics

Cyclical petrochemical business has brought Dow Europe to temporarily stop production of all its polystyrene (PS) resins at Terneuzen, the Netherlands. However, some operating units across Europe will still operating at reduced rates. Dow Polystyrene (PS) has production plants at Tessenderlo, Belgium, Bilbao in Spain, Schkopau in Germany and Lavrion in Greece and the Terneuzen unit which has an annual capacity of 50,000 tonnes/year.

The feedstock price hike comes mostly from the recent increase in global oil price. PS demand has been low for several months impactin producers in Europe including BASF, Total Petrochemicals, Dow, Polimeri Europa and INEOS NOVA.

CNOOC to Build Petchem Complex in Hebei, China

It seems like the high price of chemical plants construction doesn't have an effect on petchem development as China National Offshore Oil Corp (CNOOC) is planning to build a petrochemical complex in Cangzhou city in northeastern Hebei province. Construction is expected to start in late 2008 with capex investment may be in the tune of $2billion. No official news have been released on the complex capacity as yet.

PETRONAS EBITDA Increased 24%

PETRONAS, a Malaysian state-owned oil and gas major has posted a 24% year-on-year rise in its earnings before interest, tax, depreciation and amortisation (EBITDA) coming from sustained growth in demand for oil on the back of strong global economic expansion particularly in China and India. Revenue was up 21.2% to M$223.1 with PETRONAS profit after tax rose 31%. However, PETRONAS suffers drop in revenue for its petrochemical business segment nearly 7% due to decrease in production volumes from 9.8m tonnes to 9.3m tonnes.

New Methanol and DME Plants by Hubei Biocause China

China-based Hubei Biocause Pharmaceutical Co is constructing a methanol plant and a dimethyl ether (DME) unit, both with a capacity of 200,000 tonnes/year. The chemical plants are located at Jingmen city.

The DME unit is expected to come on-stream llate 2008 completing the third phase of the total 1millin tonne/year DME chemical complex. The first phase of the project was completed in April 2007 with nameplate capacity of 100,000 tonne/year and then another 200,000 tonne/year unit was brought on-stream in June 2008 for second phase of the project.

Shanghai Petrochemical Expanding Cracker Capacity

Sinopec subsidiary, Shanghai Petrochemical, is in the midst of expanding the capacity of its No 1 cracker to 600,000 tonnes/year from 150,000 tonnes/year to build new chemical plants.

Some of the new chemical units planned are 300,000 tonne/year polypropylene (PP) unit and a 380,000 tonne/year monoethylene glycol (MEG) facility which may mean that the cracker need to be expanded up to 800,000 tonnes/year.

Petchem Conference: List of Upcoming 2009 Petrochemical Conference

EPC is delighted to announce its 2009 Event Schedule. T

KEY HIGHLIGHTS :

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International Refining & Petrochemicals Week, incorporating the 11^th IPTC and the 10^th IDTC will take place in London, February 16-19.

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Asia Petrochemicals: The APTC will be held in May in the exciting city of Seoul in conjunction with the APIC – Asia Petrochemicals Industry Conference.

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Russia, CIS & Caspian Region: EPC is proud to announce a new Gas Technology Conference to be held in June in Baku or Almaty, and the unmissable Russia & CIS Refining & Petrochemicals Week in September .

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Residue Upgrading: Our highly popular "Bottom of the Barrel" series continues in 2009 with three events in Moscow, Seoul and Athens.

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We look forward to receiving your feedback and working with you in 2009!

New Russion Pipe Makers JV with Sumitomo and Sekisui

Japan’s conglomerate Sumitomo Corp and chemical producer Sekisui Chemical are planning to form a joint venture with Russia’s water company Vodokanalstroy (VSK) to form LLC Sumi-Lon. Sumi-Lon will be producing reinforcement plastic pipes.

The company's first unit has a capacity of producing 3,000 tonnes/year of plastic pipes, which was expected to start commercial production by the end of December 2008 with additional total capacity of 15,000 tonnes/year by the end of March 2012

SABIC Europe Butadiene Unit on Force Majeure

SABIC Europe has declared force majeure on butadiene supply as its Geleen butadiene (BD) unit in Netherlands with the chemical plant operating rates reduced due to technical issue.

The butadiene unit has a capacity of 130,000 tonne/year butadiene extraction.
Butadiene supply gets major cut due to at least two other cases of butadiene forces majeures in other plants at LyondellBasell’s Wesseling, Germany, unit and the other at INEOS Olefins’ Cologne, Germany, site.

Butadiene is currently under extremely tight supply due to recent production issues, combined with strong demand both domestically and abroad pushing the price to record high.

PETROCHEMICAL CONFERENCE: 6th Mena Olefins & Polyolefins 11 -12 Nov 08 Dubai

6th MENA Olefins and Polyolefins Markets 11 -12 Nov 2008 Dubai
PDF Flyer	Register	Conference Agenda

●Soaring Crude Prices ●Slowing Global Economy ●Challenges Ahead

Jubail Refining & Petrochemical Company is the latest project expansion by  Saudi Aramco and Total (source: Reuters, June 22).In additon, last year Egypt unveiled aggressive plans for its petrochemical industry. As the entire Olefins and Polyolefins markets develop it is crucial to obtain up to date industry information on the Mid East region.

 

Join CMT's 6th MENA Olefins & Polyolefins market conference on 11-12 Nov 2008 in Dubai to hear major stake holders from Saudi Arabia, Abu Dhabi, Kuwait, Egypt & Iran share their expansion plans and the latest cracker projects.

 

Confirmed Speakers and Topics

                  

• Project Expansion Plans in Abu Dhabi � Borouge, CEO
• Egypt's Petrochemical Project Review � Oriental Petrochemicals, CEO
• Global Olefins & Polyolefins Markets � Nexant Chem Systems, Manager Petrochemical
• Propylene Markets Outlook � Mitsubishi Chemical Corporation, Manager
• Macro Economic Outlook of the Middle East & Africa Region � BNP Paribas Managing Director
• Middle East Gas pricing - long term impact on the industry � Shell Chemical ME, General Manager
• New frontiers for LDPE tubular and autoclave Technology � Lyondell Basell, Senior Technology Manager
• Ever increasing freight rates in the Olefins industry � for how long? � Research-Inge Steensland AS, Shipping Analyst
• Development of Polymer Parks in the Gulf � Abu Dhabi Basic Industries - senior advisor Petrochemical
• Overview of Kuwait's petrochemical Plan � Equate Petrochemical Company, Director
• Iran's Olefins & Polyolefins Expansions � Iran Petrochemical Commercial Co Managing Director

Technology to Convert Waste to Fertilizer

Two Illinois companies have been awarded a $1m from United States federal grant to look into ways to produce nitrogen fertilizer from wastes.

US Department of Agriculture (USDA), is funding the research on a process derived from N-Ovation and Fluidic MicroControls, which in theory can derive nitrogen from a gas created by cooking crop residue. The gas comes from cooking farm waste, which then turned into nitric acid by introducing a spark of electricity.

The protoype is already existing and the companies are looking at efficient way and to create a machine that capable of supplying 1000 acre of farm fertilizer. This will revolutionize the way fertilizers are made which currently extensively from petrochemical plants.

PETRONAS Found Gas in Pakistan

Despite the regional political instability, PETRONAS Carigali Pakistan Ltd (PCPL), a unit of Petroliam Nasional Sdn. Bhd. (PETRONAS) existence in Pakistan progressed. PETRONAS Carigali had reportedly made a second gas discovery in Mubarak Block, located in Sindh Province, Pakistan.

US A Schulman Selling Business Unit

US plastic compounder A Schulman is plannning to either establish a joint-venture or selling its Invision business unit,

Schulman Plastic Company initially marketed Invision to be used in automobile interiors as a substitute to polyvinyl chloride (PVC).
However, US automobile sales is declining forcing the company to sell to non-automobile market as well which is also under hit due to US economy slowdown.

The news receives mix reaction with others claiming the product is well received which could lead to opportunity loss. The Invision business unit reported operating losses of $1.6m this year with $2.2m loss for last year.

Japan Energy Venturing Into Petrochemicals from Plastics

Japan Energy has become the Japanese first refiner to use processed waste plastic as a thermal cracking fuel at its Mizushima refinery. The technological breakthrough is seen as a great potential for the company as petrochemical feedstock is skyrocketing and plastic wastes will not only save feedstock cost but it might as well be counted as negative cost due to save on waste management.

The nation’s sixth largest refiner has the capacity to turn 1,000 kilolitres/year of liquefied waste plastic to petrochemical products using the hydrogenation refining unit at Mizushima. Most of the refined products will be naphtha. Currently there is an abundance of plastic wastes in which Japan generates 10 million tonnes of waste plastic in 2006. Only 5,000 kilolitres of liquefied plastic was produced for refiners from the total of 10,000 tonnes processed.

DOW Chemicals Growing Business in Asia

Dow Chemicals is reportedly making major investments will be made by Dow Chemicals' performance fluids business in the Asia Pacific region. New R&D chemical plants are planned for China and India in late 2008 targeting research for increasing output of new water-soluble fluids' at its Optimal JV with PETRONAS.

Shell Seeking JV Partners for Styrene Monomer/ Propylene Oxide Latest Technology

Shell Chemicals is seeking potential joint venture partners for its new styrene monomer (SM) and propylene oxide (PO) facility. The chemical plant is expected to cost in the region of $500 million which is to be built in Southeast Asia or Middle East with a world-scale capacity for Asia Pacific demand.

The chemical will be producing mainly PO with SM as co-products hence having higher flexibility and financial advantages due to current strong propylene oxide value chain.

Petrochemical Conference: International Refining & Petrochemicals Week, London 2009

International Refining & Petrochemicals Week

Royal Garden Hotel, London 16-19 February 2009
Incorporating
11th International Petrochemicals Technology Conference & Exhibition: IPTC
10th International Downstream Technology & Catalyst Conference & Exhibition: IDTC

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Dear Colleague,

 

EPC is delighted to announce that International Refining & Petrochemicals Week will be held in London in February 2009.
Following the success of the 2008 events in Prague, IPTC and ICTC will once again be held consecutively to allow participants to maximise their attendance.

 

Please click on the links above for IPTC and IDTC to:

• View conference focus and topics
• Submit an abstract for the programme/s
• View sponsorship and exhibition details
• Register now or sign up to be reminded later for IPTC / IDTC  
•  View previous programmes 

Alternatively please contact me if you have any questions or queries.

Malaysia to Use Nuclear Energy

Malaysia is prepared to use nuclear energy if oil price continues to soar to substitute oil as a long-term alternative to produce electricity. The government official told the press that Malaysia would first look for other alternative sources of power such as solar, hydro, mini-hydro, biomass and renewable energy source from garbage.

It was proposed that turning to nuclear energy in the future may be the answer as it is cheap and safe. However, the infrastructure to generate electricity for the future will take around 15 years.

Malaysian Terengganu Oil Wells to be Reopen by ExxonMobil

Exxon Mobil will reopen abandoned oil wells in Terengganu waters to take advantage of the escalating crude oil price in the world market for investment value of US$2.3 billion under production sharing contract with Petronas renewal.

Reopen of the old oil wells will explore deeper in search for oil at a much higher investment cost which only become feasible at current oil price.