MTO Projects Spur in Inner Mongolia

China’s Inner Mongolia is spurring with methanol investments through methanol-to-olefins (MTO) projects due to its cheap and abundant coal supply with estimated of nearly 10 million tonnes/year of methanol will be produced by the next 5 years.

MTO projects such as by Datang International Power has capacity of 1.7 million tonne/year methanol with around 1.5m tonnes will be converted to propylene using Lurgi’s technology as feedstock to make around 500,000 tonnes of polypropylene (PP).

The cost of polypropylene made from this route is expected to be cost competitive, given the low price of coal in Inner Mongolia using coal gasification technology from Shell with 3 tonnes of methanol are needed to produce 1 tonne of propylene through the process.

Thailand Bisphenol-A Chemical Plant By PTT

Thailand PTT’s has decided to invest in a $250 million bisphenol A (BPA) petrochemical plant which has a capacity of 150,000 tonne/year of BPA at Mab Ta Phut, Rayong.

Construction is expected to complete in the third quarter of 2010. Upon completion, the bisphenol-A plant will use 128,000 tonnes of phenol and 41,000 tonnes of acetone as feedstocks each year which will be supplied by joint venture PTT Phenol having annual capacity of phenol and acetone of 200,000 tonnes and 125,000 tonnes respectively.

Sinopec Collaborate with Mitsubishi Chem for New $300 Million Bisphenol-A, Plycarbonate Plant

Mitsubishi Chemical (MCC) under its partner Mitsubishi Engineering-Plastics (MEP) has formed a $300 million joint venture with China’s Sinopec for a bisphenol-A (BPA) and a polycarbonate (PC) chemical plants in China. The plants, with capacity would be 150,000 tonne/year of BPA and 60,000 tonnes/year PC will be built in Beijing starting end of 2008 with target completion in 2010.

Mitsubishi Chemicals (MCC) will provide the license for Bisphenol-A production technology together with the feedstock of diphenyl carbonate (DPC) for the polycarbonate production. Sinopec in returns will provide the key feedstocks for production of Bisphenol-A of phenol and acetone.

Russia's Sakhalin plans methanol, ammonia plants

New methanol and ammonia production facilities are planned to be built in Russia's Sakhalin region. Feedstock for the methanol and ammonia complex would come from natural gas deposits in northern Sakhalin.

This is shortafter announcement that Russia's Yakutiya region plans to build two facilities for $1 billion to produce 450,000 tonnes/year of methanol and 200,000 tonnes/year of ammonia by 2012.

Malaysia's Titan Polypropylene Capacity Increased to 500 kmta

Malaysia's Titan Chemicals is planning to increase its homo-polymers and co-polymers polypropylene plant up to 500,000 tonnes/year from the current 380,000 tonnes/year in the second half of 2008. This comes after Titan Malaysia completed its metathesis unit which has a propylene production capacity of 130,000 tonnes/year.

Saudi Arabia's Ar-Razi 5th Methanol Plant To Be Commission

Saudi Methanol Company (Ar-Razi), plans to commission its fifth mega-methanol plant at Al Jubail, Saudi Arabia late April of 2008 with commercial operations in June.

This fifth mega-methanol plant will be in addition to Ar-Razi current four methanol plants at Al Jubail, two with a capacity of 700,000 mt/year each, and two that are capable of producing 850,000 mt/year each.

Shell & QatarGas Supplying LNG to Dubai from 2010

Royal Dutch Shell together with QatarGas signed a deal with the emirates of United Arab Emiratges to supply liquefied natural gas (LNG) to Dubai in the peak demand summer period from 2010. Shell and QatarGas will supply around 1.5 million tonnes of LNG a year for 15 years.

Demand for power and water in the Dubai increased by 20 percent a year, driven by rapid economic and population growth due to tourism, trade and financial services.

Dubai Supply Authority (Dusup) has been given the sole rights to supply gas users. DUSUP will also be responsible in building a floating LNG regasification facility at Jebel Ali port with capacity of 3 million tonnes a year expected to be completed by the first quarter of 2010. Ironically, UAE is the world's fifth-largest gas reserves but has not developed the gas reserves quickly enough to meet its own rising gas demand as the UAE economy expands in particular Dubai.

Japan Offers Coal-to-Gas Technology for Gas Supply

Japan, one of heavy energy users, offering Indonesia with technology that would allow it to produce gas from coal, in exchange for a stable supply of liquefied natural gas to Japan. The offer comes from Japan Gas Association especially since Indonesia is the largest liquefied natural gas exporter to Japan by volume and recently has been saying that it may cut LNG exports to Japan to meet its own domestic demand.

Indonesia's state-owned energy company, Pertamina, will reduce LNG exports to Japan to 3 million-5 million tons a year from 2011 from about 12 million tons a year now.

The development of the coal-to-gas technology for commercial use in turn can save Japan from the energy crisis. Indonesia is known to have an abundance source of coal.

Lawsuits Await Oil Majors for Ethanol-Gasoline Damages

In what could be a hard slap for the environment, ExxonMobil, Chevron, BP, Shell, Valero, ConocoPhillips and several other oil majors are facing a lawsuit for the manufacture and sale of ethanol-blended gasoline due to the allegedly blended biofuels damaging marine fuel tanks and engines including polluting the marine environment.

The lawsuits is costing thousands of dollars in repairs of hard items alone. It was understood that the ethanol in gasoline fuel has corrosive properties and dissolved the fibreglass resins used in the fibreglass tanks as well as engines.

Since the banning of methyl tertiary butyl ether (MTBE) in 2004, Ethanol has been added to regular gasoline to boost octane levels, reduce engine knocking and improve vehicle performance.

So far, Chevron, BP, Shell, Valero and ConocoPhillips are the oil majors facing with the lawsuits with other names like PetroDiamond, Tower Energy and Big West currently on the list as well.

Qatar & Malaysia Replace Pertamina LNG

Taiwan's CPC Corp which managed to secure 5.25 million metric tons of liquefied natural gas supplies from Qatar and Malaysia is not seeking new contracts from expiring contracts with Indonesia's Pertamina. This comes after Indonesia's state-owned Pertamina announced discontinued renew of supply agreements with Taiwan and South Korea to supply 1.54 million metric tons of LNG that will begin expiring this year due to declining gas production at its aging fields.

CPC has signed a 25-year contract with Qatar-based RASGAS (Ras Laffan Liquefied Natural Gas Company Co) for a 3 million metric tons LNG supply, as well as the long-term contract with Malaysia LNG, a subsidiary of Malaysia's national petroleum company, Petronas Gas Bhd amounting 2.25 million metric tons of LNG, which will expire in March 2015. On top of that, Taiwan CPC has a 2 million tons supply deal with Australia's Woodside Petroleum Ltd.

Malaysia Maintains Fuel Subsidy

After the ruling coalition suffer its worst ever election setback in Malaysia, fuel prices are kept unchanged under energy subsidies review to find ways to curb waste and fuel smuggling.

Cheap energy has turned Malaysians' addiction to subsidised fuel has led to pollution and waste in which the Malaysian government wanted to keep the fuel pump price level at the same level at Ringgit 1.90 ($0.65 / litre) but at the same time reducinge the subsidy by improving the system.

The government's ultimate target is that the subsidy becomes more targeted, more focused and goes to the groups who actually deserve it aiming at lower-income Malaysians and the transport sector to help keep retail prices down. At $110 per barrel, Malaysia government is spending 18 billion ringgit ($5.70 billion) to maintain fuel subsidies. Moreover, Malaysian's cheap fuel price has increased fuel smuggling to neighbouring Thailand and Singapore.

DME Blending in China Fail

China's domestic dimethyl ether (DME) as a fuel additive in the LPG and gasoline blending for use in buses and other energy sector is yet to start even though approval for use from the country’s petroleum and chemical industry bodies has been released.

The reason for the halt of blending DME into LPG and gasoline pool is due to low standards of LPG coming from the blending and low profits for the DME producers. It was estimated that LPG producers gain only $11-14/tonne from using DME as a fuel additive which includes transportation and sales costs making DME producers hesitant due to small saving.

There is currently no standard available on how much DME should be added to LPG despite China Petroleum and Chemical Industry Association approval on the use DME as an additive in liquid petroleum gas (LPG). To be on the safe side, most major LPG producers such as Zhuhai LPG Co, Longda LPG and Shenzhen LPG are waiting for a formal regulation policy before using DME as an additive in a serious manner.

BASF Puts-off Coal to Gas Petrochemical Plan

BASF has put off plans for a massive $2.5 billion coal gasification project due to uncertainties over the costs of Europe's emission trading scheme. The petrochemical complex would produce gas from coal as widely practiced in China to make methanol and ammonia, initially planned to be built either at BASF’s base in Ludwigshafen, Germany, or elsewhere.

Coal is regarded as cheap feedstock compared to natural gas for key raw material to the petrochemical industry.

New Dow/BASF HHPO Technology Plant Delayed

Dow/BASF joint-venture for a 300,000 tonne/year capacity hydrogen peroxide-to-propylene oxide (HPPO) plant at Antwerp, Belgium is delayed until the second part of 2008 which was previously scheduled to come on-stream in May 2008. This will be the first HPPO petrochemical plant in the world incorporating the JV technology by Dow and BASF. It was claimed that the process technology is more economical and environmentally friendly.

China Welcomes Green Technology

China is set to become a world leader in environmentally friendly technologies due to its high impact on global influence of the Chinese economy.

Analysts are expecting that by 2020, China will not be just a global economic giant, but a leader on many of the world's fields, including technology.

Indian Methanol Producer GNFC Expanding Capacity

GNFC, India’s largest methanol producer or Gujarat Narmada Valley Fertlisers Co is shutting down its 700 tonne/day capacity production complex in Bharuch for a catalyst change. The methanol producer will take the opportunity to debottleneck methanol capacity by 200 tonnes/day making the total production capacity 900 tonnes/day.

Indian methanol producers mostly used for local consumption, with additional demand met by Middle Eastern producers such as Saudi Basic Industries Corp (SABIC), Iran, Qatar Fuel Additives Co (Qafac) and Oman Methanol. As much as half of the nearly 950,000 tonne/year Indian methanol demand comes from these methanol suppliers.

Texas Building Renewable Fuels Complex by Orion

Orion Ethanol is planning to build a renewable fuel complex from corn fructose in Texas. Orion has already secured an idle wet mill in Dimmitt, Texas, which will be integrated into the company's 2million gal/year renewable fuels complex.

The wet mill will be able to produce 60m gal/year ethanol 10m gal/year edible oil for the first stage of the project. Later, Orion Ethanol plans for additional 10m gal/year cellulose-to-ethanol process, a 12m gal/year biodiesel plant, a 25,000 tonne/year yeast plant and a 60-75 megawatt (MW) wind and biomethane power plant.

Japanese Plastic Maker, Ube Investing in Thailand

As much as $118millions will be spent from Ube Group, Japanese engineering plastics maker to expand its petrochemical plants capacity. Ube Group plans to add a second nylon plant in Rayong to triple its annual capacity to 75,000 tonnes/year. Construction is expected to complete in October 2009.

The company's caprolactam capacity will also be boosted to 130,000 tonnes from 110,000 tonnes in 2010. The whole revamp is expected to raise its annual ammonium sulphate output by 80,000 tonnes to 520,000 tonnes.

The Japanese maker is also currently studying a 1,6-hexanediol project with capacity of 6,000 tonne/year plant for completion in 2011.

Shell & Virent Develop New Biogasoline Fuel Technology

Shell and in collaboration with US biofuels company Virent is developing a new biogasoline fuel and blend components directly from plant sugars without the need for fermenting sugars into ethanol. Virent’s catalytic process will be used which is a proven biomass-derived feedstocks to biogasoline production. Researchers claimed that the new biogasoline molecules will have a better fuel efficiency than ethanol. Furthermore, the new biogas can eliminate the need for new engine designs.

Russia's New Aromatics Unit

Kazakhstan's Atyrau Refinery company is planning to build an aromatics production unit in Atyrau, Russia due to be on stream in 2012. The aromatics unit estimated at $800 million would have a capacity of 500,000 tonnes/year of paraxylene (PX) and 130,000 tonnes/year of benzene situated in the new $5.2bn petrochemicals hub in Atyrau.

The petchem hub has the capability to produce 800,000 tonnes/year for polyethylene (PE) and 400,000 tonnes/year for polypropylene (PP).

Sibur Polypropylene Using INEOS Technology

INEOS has been selected for a contract to provide 200,000 tonne/year Polypropylene plant in southwest Siberia process technology for Sibur's proposed plant in Tomsk, Russia. The construction is expected to start commissioning in 2012.

This will be Sibur's second polypropylene plant using INEOS process technology. Previously, Sibur used INEOS’ Innovene polypropylene process technology for a proposed 500,000 tonne/year PP plant at Tobolsk, Russia.

Brazil Uses More Ethanol than Gasoline

Brazil, the world's largest ethanol producer from sugarcane consumes more ethanol than gasoline at the start of the South American winter as predicted by analysts. Ethanol demand in Brazil is especially high and it exceeded gasoline was in February 2008.

Brazillian ethanol consumption mainly goes to sales of flexible-fuel vehicles, which can burn either ethanol or gasoline which is the normal spec for somewhat 2.75 million automobiles in 2007 alone.

Ethylene Oxide/ Ethylene Glycol Licenses Sold by Shell to CNPC

Shell has agreed to sell ethylene oxide/ethylene glycol (EO/EG) licenses for process technology to produce these two chemicals to China National Petroleum Corp (CNPC). CNPC is planning to build a new plant near Chengdu, Sichuan, capable to produce a 380,000 tonnes/year mono ethylene glycol (MEG) facility and a 50,000 tonnes/year ethylene oxide capacity. So far, Shell has sold six EO/EG license to China and with three of them for CNPC. The petrochemical plant will be operated by PetroChina Sichuan Petrochemical, CNPC subsidiary with commissioning targeted in 2010.

Russia's Schekinoazot Methanol Upgrade

Russia's Schekinoazot plans to spend as much as $230 million to upgrade its methanol production facilities to build a new unit to produce 450,000 tonnes/year of methanol.

The unit is planned to be built in the Tula region, south of Moscow replacing existing 370,000 tonne/year methanol facility utilizing Denmark's Haldor Topsoe technology.

Vietnam Expansion - Idemitsu, Mitsui Building Paraxylene Petrochemical Plant

A paraxylene unit will be included in the petrochemical complex jointly developed by Japanese oil refiners Idemitsu Kosan and Mitsui Chemicals with a capacity of 480,000 tonne/year paraxylene (PX) and 150,000 tonnes/year of benzene products in the $6 billion joint venture petchem complex in Vietnam.

The JV paraxylene unit will be constructed at Nghi Son, Thanh Hoa province. The complex will also include BTX (benzene, toluene and mixed xylenes) plant of total capacity higher than 500,000 tonnes/year. Aromatics outlet for the products will be sold to Mitsui Chemical’s purified terephthaliac acid (PTA) and phenol businesses as feedstock.

Ethylene Dichloride Released By OxyVinyls

OxyVinyls, a wholly-owned subsidiary of Occidental Chemical has accidentally released more than 750 lbs of ethylene dichloride (EDC). OxyVinyls’ LaPorte plant in Texas with capacity of 1.77m tonnes/year EDC was also found previously releasing 500 lbs of carbon monoxide, 340 lbs of gaseous ethylene and 39 lbs of vinyl chloride monomer (VCM) to atmosphere.

Ethylene, EDC and VCM are feedstocks for production of polyvinyl chloride (PVC). The investigation revealed that two vent gas incinerators were tripped offline causing the release of toxic gas to air.

MMA Plant Via Ethylene Route by Lucite

The first ethylene route methyl methacrylate production facility by Lucite is on its way in Singapore. The petrochemical plant has the capacity of 120,000 tonne/year of MMA and will be the first petrochemical plant using Lucite's proprietary ICI technology. The feedstocks for the MMA plant will be mainly ethylene, carbon monoxide and methanol.

Construction is expected to complete September with MMA production will gradually ramp up from 15,000-20,000 tonnes in the fourth quarter. Lucite's latest MMA technology is expected to reduce production cost of MMA as opposed to other MMA producers using methyl tertiary butyl ether (MTBE) or acetone with methanol as feedstock as widely practiced by MMA producers worldwide such as Sumitomo Chemical, Mitsubishi Rayon Co., Formosa Plastics and LG MMA.

Russia Polyurethane Project By Dow, Dipol & JSC Nord JV

Dow Chemicals (Europe) together with Dow Izolan, Dow's Russian joint venture, Dipol Chemical and JSC Nord are set to explore the possibility of producing rigid polyurethane (PU) in Russia with production will be sold to JSC Nord’s Polyurethane Unit for 6000 tonnes in 2008.

The group of companies are looking at the economic feasibility of the Joint-venture PU project expected to be completed by end of 2008. The main driving force to build the PU unit in Russia, despite political instability is that Asian competition is skyrocketing, coupled with the weak US dollar.

The JV hopes that products will be focused to Russian's home appliance companis for cost saving with the polyurethane producers.

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Yam Tethys and Israel Chemicals Ironed $300 million Natural Gas Deal

Yam Tethys and Israel Chemicals Ltd (ICL) committed in a deal worth $300 million in order to make production cost savings for ICL fertilizer and specialty chemicals business. Under the deal, Yam Tethys is to provide Israel Chemicals natural gas a total of 2 billion cubic meters until 2015.

The deal also includes cost saving through energy optimisation and value-add the natural gas by converting natural gas to reduce emissions.

Sibur and Evonik on Discussion for Propylene Oxide Plant

Propylene oxide facility (PO) using Evonik and Uhde, a german engineering firm is on discussion for Evonik Industries and Russia-based JSC Sibur Holding to undertake a feasibility study on the construction of the chemical plant.

JSC Sibur partnership in the JV most likely is for penetration into the Russian market which may also looking at creating a joint venture to produce hydrogen peroxide to supply the PO plant as well as for applications in the paper and pulp bleaching industry.

Titan's Metathesis Unit Producing Propylene

Titan's metathesis unit at Pasir Gudang Malaysia which has a capacity of 115 thousands tonnes per annum of propylene starts delivering on-spec propylene which will enter the market soon.

The propylene produced largely will be for internal consumption of captive downstream polypropylene (PP) plants with limited cargoes going away in the region.