Petrovietnam and Vinatex JV for Polyester

A 50:50 Joint Venture between Petrovietnam and Vinatex (PVTEX JSC) for a $200m polyester fibre plant in Haiphong, Vietnam has been set-up with a capacity of 165 thousand tonnes per day. The feedstock for the plant, monoethylene glycol (MEG) and purified terephthalic acid (PTA) will be on import basis.

Under the agreement, Vinatex who is also the parent company for the JV will buy PVTEX JSC’s polyester for its textile and garment production facility. A pre-feasibility study for the project has been laid out to Vietnam's Ministry of Planning and Investment (MPI).

Thailand's ACN and MMA Chemical Plants High Cost by Asahi Kasei

Asahi Kasei Chemical's Joint Venture to build ACN (Acrylonitrile) and MMA (Methyl Methacrylate) unit in Mab Ta Phut in Rayong, Thailand costs have increased to $760m. The project is expected to start commercial production by 2010, after several construction cost hikes. The JV includes PTT Asahi Chemical Company (PTTAC), of 48.5% share and another 3% by Marubeni Corp.

Explosion at Nanjing Chemical Industrial Killed One

Sinopec subsidiary Nanjing Chemical Industrial suffered an explosion killing one worker and injured six others at the company’s 300,000 tonne/year capacity ammonia synthesis plant in Nanjing.

LNG Becoming Global Commodity - A Market Perspective

With more and more country finding scarcity for energy resources, LNG, which once was considered regional commodity is now set to become a globally traded commodity as expected by analysts. Liquefied natural gas (LNG) upcoming LNG projects are skyrocketing, especially as oil production and gas recovery is increasing in the Middle East.

Liquefaction capacity is expected to rise 30% with shipping capacity will increase by 50% by end of 2010. The main contributing factor that leads to the move of becoming globally trading commodity comes from trading structure for the upcoming supply of LNG - a more flexible rather than relying on long-term contracts.

Moreover, new supply destined for North America, the largest natural gas market in the world will play a massive role in pricing and LNG contracts. North America's has a vast storage capacity of 4,000 bcf expected to act as a buffer against market prices movement.

NPC Fanavaran Methanol Plant Restarting

The short-term methanol shortage due to National Petrochemical Co’s (NPC) 1million tonne/year capacity methanol plant at Fanavaran, Bandar Imam, Iran has been remedied when the methanol plant restarted.

The plant was having problems with its gas supply a likely scenario in Iran having gas supply shortages during the severe winter weather.

PET Bottles Manufactured Domestically

Following plastic bottle resin industry small margin, more and more end users are manufacturing their own polyethylene terephthalate (PET) bottles in-house to reduce costs. The trend is increasing.

The situation mostly driven by small margin for PET bottles manufacturer and economies of scale wouldnt help either. There is increasing trend of large PET bottles manufacturer closing their plants.

Siam Cement & Dow Chemicals Cracker Project at Mab Ta Phut On Schedule

Siam Cement and Dow Chemical new joint-venture for 900,000 tonne/year capacity cracker project in Mab Ta Phut, Thailand is on track to start up in the second half of 2010 despite concerns that the project schedule affected by a recent dispute between Mab Ta Phut residents and government officials over environmental concerns which could turn the site into a “pollution-control” zone.

Siam Cement/Dow Chemicals had already started construction with erection on piling work for the new complex including a new naphtha cracker is on progress. The cracker survives on imported naphtha, as much as 85% for the feedstock.

The economics for the project was uplifted by a value-added downstream integration including propylene oxide (PO) and specialty elastomers through Dow Chemicals. Planned specialty elastomers plant will produce AFFINITY Polyolefin Plastomers and ENGAGE Polyolefin Elastomers for packaging and automotive thermoplastic applications. It was also estimated that as much as 50% savings from construction cost can be achieved as compared to Middle East.

US Refineries Growth Stagnant

With heavy competitions from the rest of the world, especially from the Middle East, US refineries are facing difficulties for refinery expansion. The current situation in the US doesn't help much either with shortage of skilled labour and regulatory issues.

At the moment, it is very hard to get a permit from the US authorities especially outside the Gulf Coast.

PETRONAS ExxonMobil Renewing PSC

Petronas, a Malaysian state oil firm has signed an initial pact with Exxon Mobil for a renewed production-sharing contract (PSC) deal for seven offshore Malaysian oil fields that would require the two companies around $2.1 billion on fields development. The current production-sharing contract signed between Petronas and ExxonMobil in 1995 is due to expire in March 2012.

Oman and India Collaborating on Urea/Ammonia Plant

Despite their differences, India and Oman are planning to build a fertilizer plant comprising urea and ammonia plants at Sur in northeast Oman. The capacity of the facility will be able to produce 1.65m tonnes/year of urea and 248,000 tonnes/year of ammonia with total cost of the project amounting at $1bn.

Analysts puts the deal as "opportunity give-away" since the abundance of feedstock in Oman.

Iran KHPC Melamine Plant Shutdown on Gas Shortage

Shortages of natural gas has put Iranian melamine producer Khorassan Petrochemical Co (KHPC) to shutdown on its 20,000 tonne/year melamine plant. Until now, the National Petrochemical Co affiliate KHPC has yet to declare force majeure.

Brazil Using Standard Biodegradable Labels

Another environment steps taken by Brazil which is pushing for labelling of biodegradable plastic packaging according to world standards to ensure such characteristics touted to consumers in fact exist.

In the fast lane of becoming green and environmentally friendly, many producers are using labels to buy the customer perception towards green environment even when the products do not offer such.

Brazil’s official industrial standards board ABNT and the National Plastic Institute (INP) will be working with a 70-member multi-disciplinary committee for the guidelines for the label.

Lanxess Building Rubber Plant in Singapore

Lanxess, a German chemical company has selected Singapore as the site for its largest investment $579.7m butyl rubber project instead of Malaysia and Thailand. The new chemical plant will produce butyl rubber for car tyres.

Thailand Selling E20 Gasohol

Thailand has started selling its E20 Gasohol, a 20% ethanol - gasoling blending, replacing MTBE. E20 is cheaper than regular gasoline in Thailand and large gasoline blenders like Shell and PTT are both offering E20 grades at some of their pump stations. E20 Gasohol (Gasoline-Ethanol) is cheaper than regular methyl tertiary butyl ether (MTBE) blended gasoline due to Thailand's government subsidy.

Many newer Japanese and European cars should be able to tolerate E20 which is a 20% blending of ethanol as opposed to earlier version of E10, using 10% blending of ethanol. Thailand has a strong policy towards biofuels and widespread use of ethanol blended gasoline has been seen in the starting with B2, a 2% biodiesel blend in petroleum diesel.

Natural Gas Pipeline Ruptured in Texas

A gathering pipeline servicing natural gas ruptured in South Texas near Mexico, however caused no injuries nor death. The line is operated by Hesco Pipeline of 20 inches in diameter where remaining natural gas has been burned off due to maintenance and repair work.

PKN Orlen Joint-Venture with Basell

PKN Orlen's nitrogen fertilizer profits were dropping due to heavy competitions from companies based in countries east of Poland. PKN Orlen's subsidiary, Anwil sales of ammonium nitrate products declined 6.9% to 135,000 tonnes in the fourth quarter of 2007.

PKN Orlen has Joint-Venture with Basell through Basell Orlen Polyolefins, a 50:50 share, is posting higher profit of Zl120m. As of now, PKN profits mostly come from other business than its fertilizer products due to the competitions.

Thai Paraxylene Completing Debottlenecking

Thai Paraxylene, a company owned by Thai Oil will complete its debottlenecking project of paraxylene (PX) at Sri Rancha by this April with an increase in capacity from 348,000 tonnes/year to 490,000 tonnes/year. The paraxylene feedstock is sourced from Thai Oil, which operates a 270,000 bbl/day refinery at the same Sri Racha site.

Argentina Experiencing Gas Shortage

Argentina is in critical stage of gas shortage. Argentina’s Bahia Blanca petrochemical complex, a prominent petchem complex in Argentina will likely be affected by the scarcity of gas this year. The scarcity of gas is expected due to winter season in the South America.

In 2007, Argentina experienced a snowfall, a first since 90 years and it triggered a nationwide gas shortage. The Bahia Blanca petrochemical complex alone had to shut down for two weeks during winter season due to a gas and electricity shortage. With increasing demand in 2008, and possible shortage, the petchem industry is likely to be impacted in Argentina. Chemical plants are now bulding stocks to mitigate the effect.

Some companies such as Solvay Indupa at the Bahia Blanca complex are having their own electric power plant as a backup in case of the gas shortage. The foundation issue in the Argentine petchem industry is due to lack of long term agreements for natural gas supply between Argentina and its neighbors, Bolivia and Brazil. Bolivia is supposed to send to Argentina some 7.7m m3/day, but in 2007 only sent 6m, ultimately to 3.5m with priority to Brazil.

Algeria Investing Massive $28 Billion for Petrochemical

Algeria is planning an investment of $28bn in the country’s petrochemicals industry over the next five years with developments located on the country’s east and west coasts.

The investment include recent contracts to build ethane and methanol plants by Almet, a consortium set-up for the projects by Lurgi, Japan's Mitsui & Company, Kuwait's Al-Qurain Petrochemical Company and the local Sotraco.

Algeria is attractive to foreign investors due to low cost of feedstock there and its proximity to Europe.

Wilmar and Sasol Building China Fatty Alcohols

A joint-venture between Wilmar International and South Africa's Sasol has been forged and in talks with Chinese oleochemicals producer Liaoyang Hua Xing for building a fatty alcohols chemical plant in China.

The collaboration will see Liaoyang, a manufacturer of fatty alcohols to have 40% share in the joint JV and Wilmar and Sasol will jointly hold a 60% stake. Plant capacity is still confidential at the moment.

Wilmar which is the world’s largest palm oil trader, with HQ in Singapore has also acquired Malaysian Kuok group’s palm plantation and edible oils business. Fatty alcohol is an ingredient commonly used in soaps, detergents and other consumer and personal care products such as cosmetics.

E85 Cadillac in the Market 2009 by General Motors

General Motors (GM) plans to sell its biofuel E-85 Cadillacs in 2009. E-85 is a blend of 85% ethanol and 15% gasoline. GM is estimating that half of its annual vehicle production will be E-85 or biodiesel capable by 2012. General Motors is actively in research for biofuels and renewable source for cars which has also plans in hybrid and hydrogen technology.

PetroChina Polypropylene Plant Using Technimont

Italian EPCC company, Maire Tecnimont has been selected to supply the technology license, process engineering and basic engineering services for PetroChina’s new 300,000 tonne/year polypropylene (PP) plant in Daqing, Heilongjiang province. The total package is worth $30 million.

LyondellBasell polypropylene technology Spherizone has been selected making it the eleventh PP plant to be developed using the technology. The Daqing PP chemical plant is expected to be completed by 2010.

UOP to Develop More MTO Technology Plant

UOP is in the midst to expand its MTO technology projects. The Methanol-to-Olefins technology will be widespread in China, Middle East and North Africa looking at coal-based MTO plants in China.

This is after their first Eurochem MTO project in Nigeria is successful for construction and is due on stream in 2012. UOP is under way for another three projects in the Middle East and North Africa.

China Says No to Dangerous Chemicals

China’s has blacklisted 141 pesticides, coatings, batteries and arsenic products which contain chemicals that could cause pollution and environmental harms such as dichloro-diphenyl-trichloroethane (DDT), sodium cyanide, lead oxide and acid red.

Singapore Biodiesel Gloomy in 2008

Wilmar International, an integrated biodiesel producer is badly affected by high crude palm oil (CPO), feedstock for its its biodiesel plants in Indonesia and Malaysia. The biodiesel plants are running at 20% capacity for the first three months of 2008.

Despite the gloomy biofuels sector, Wilmar International, posted on the Singapore-listed firm reported a four-fold surge in fourth-quarter operating profits to $394.2m from $98.8m. Wilmar is also expanding its joint ventures with local companies in Africa, China and Europe.

Epoxy Demand Shooting to 6% Until 2011

Epoxy resins, largely used in the manufacture of coatings, electronics and wind energy sectors, is expected to increase in demand at an annual rate of 6% until 2011. In 2006 alone, global epoxy market demand was around 1.6 million tonnes with the main epoxy resin supply comes from China.

Colombia Building 100 ktpa Biodiesel Plant

Colombia biofuels supplier, Ecodiesel is planning to build a massive 100,000 tonne/year capacity biodiesel plant in Barrancabermeja, Colombia with cost of investment to be in the range of $23m to start construction in February 2009.

The plant will use palm oil feedstock using Brazilian engineering technology Dedini A Industrias de Base. Upon completion, Colombia will be Latin America’s second largest biofuels producer after Brazil.

50% stake in Ecodiesel is partly owned by Colombian palm and vegetable oil manufacturers namely Extractora Central, Palmas Oleaginosas Bucarelia, Extractora Monterrey, Oleaginosas Las Brisas, Palmeras de Puerto Wilches and Palmas del Cesar y Agroince.

Algeria to Start Ammonia Plant

Fertiberia, a Spanish fertilizer producer is in the midst of selecting a contractor to build an ammonia plant in Algeria with a capacity to produce 1.2m tonnes/year of ammonia with due completion in 2011. Fertiberia has already entered Algeria market with collaboration with Fertial, an Algerian ammonia producer with 650,000 tonnes per annum of ammonia at Annaba and Arzew. The facility will utilised Sonatrach gas as a supply feedstock to the plant.

ABS Plant in Al-Jubail by Saudi Petrokemya

SABIC affiliate Arabian Petrochemical Co (Petrokemya) is on its way to build an acrylonitrile butadiene styrene (ABS) petrochemical plant with a capacity of 200 ktpa at Al-Jubail complex.

This come quick after SABIC Innovative Plastics, formerly the US' GE Plastics, which SABIC (Saudi Basic Industries Corp) acquired last year. The ex-GE Plastics is also providing process technology for the plant.

Lanxess Investing in Butyl Rubber Plant in Singapore

Over €400 million investment has been put aside by Lanxess, the largest investment so far by the company in Jurong Island, Singapore. The plan is taking advantage of strong demand growth in Asia. Lanxess is the world’s second largest butyl rubber producer which total capacity will be 380,000 tonnes/year in early 2011 after the completion of the project. The Jurong Butyl Rubber chemical plant will have a capacity of 100,000 tonnes.

With MTBE being banned in many countries, isobutylene, main feedstock for butyl rubber is well sought after and global demand for butyl rubber is standing at 900,000 tonnes/year and butyl rubber is in very short supply.

The facility will also produce synthetic rubbers such as butyl and bromobutyl rubber, which are used in the production of tyres. The unit will use Raffinate-1 from Shell Eastern Petroleum butadiene extraction unit to Lanxess, which will take isobutene (isobutylene) for its rubber production.
Lanxess ambitious plan will also be looking at increasing the isoprene content of its butyl rubber for the tyre application, subsequently allowing it to open up new applications in China and India. The plan also includes expansion at its Sarnia, Canada, boosting its capacity to 150,000 tonnes/year. Lanxess also operates another 130,000 tonne/year butyl rubber unit in Zwijndrecht, Belgium.

$448 million China Methanol Plant to be Built by Hulunbuir

China, the most booming country in the world is planning to have yet another Methanol Plant by Huaneng Group subsidiary Hulunbuir Energy Development Co for a$448 million methanol plant in Manzhouli city, Inner Mongolia with a 600,000 tonne/year capacity methanol plant.

The facility will be using coal to produce methanol instead of natural gas. China is popular for its abundant cheap source of coal.

300ktpa PET Plant in Russia

A joint-venture between Russia's AK Bars Bank and South Korea's KP Chemical has been set-up to build a new 300 thousand tonnes/year capacity polyethylene terephthalate (PET) plant in Tatarstan, in central Russia. The PET production facility will be built in the special economic zone of Alabuga with investment cost of $149m.

The technology licensors under consideration includes Switzerland's Buhler and Uhde Inventa Fischer and Lurgi Zimmer.

Melamine Plant Joint Venture in China by DSM and Fengxi

Fengxi Fertilizer, a China-based chemicals and fertilizer producer is setting up a joint venture with DSM to set up a melamine plant in the Shanxi province, China with major shareholder being Fengxi Group at 51% equity share. The investment cost is estimated at $14m.

The melamine plant will produce 52,000 tonnes/year of melamine in 2008, to be marketed under the brand name MelaminebyDSM to both the domestic and overseas markets.