LDPE Production in Halt for LyondellBasell UK France

LyondellBasell is reportingly will be idling its production of low density polyethylene (LDPE) units at France and UK. The Carrington unit in the UK has a nameplate capacity of 185,000 tonnes/year, and France's Fos plant has a nameplate capacity of 110,000 tonnes/year of LDPE.

The news comes in the midsts of demand for polyethylene has significantly improved compared to the fourth quarter of 2008 however the idling is due to demand still not within normal patterns especially in Europe. 

Analysts believe that the production cut is more due to extremely steep ethylene contract prices in the market which is the major feedstock for LDPE production.

South America Gets Iran's Ethylene Tender

Iran's National Oil State - Iran Petrochemical Commercial Co (IPCC) has sold a tender worth 5kmta ethylene cargo to a South America buyer priced at around $1,800/tonne on a cost and freight (CFR) basis

It was marked as exceptional as most  southeast Asia buyers are bidding at low $1,300s/tonne CFR level. Speculative talks indicate cargo destination to Venezuela from Assaluyeh and/or Bandar Imam Khomeini (BIK).

Map Ta Phut Petrochemical Complex Commission in 2010

Map Ta Phut Olefins, a new venture by Thai producer Siam Cement Group which is now in heavy construction of its benzene, toluene and mixed xylenes (BTX) facility will be starting up the petrochemical complex in the second-half of 2010 which is integrated with its new naphtha cracker.

The naphtha cracker has an ethylene capacity of 900,000 tonnes/year and 400,000 tonnes/year of aromatics. This is an addition to its existing facility produces 190,000 tonnes/year of benzene and 90,000 tonnes/year of toluene.

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.

SABIC & Sinopec in Joint Venture for Tianjin Ethylene Derivatives Plant

SABIC and Sinopec had announced their collaboration by signing a Heads of Agreement (HoA) between the two companies for development of a 1 mil tonne per year capacity of ethylene derivatives chemical plant in Tianjin, China. It will be a 50:50 joint venture investment for production of 600 ktpa of polyethylene (PE) and 400 ktpa of ehtylene glycol (EG) chemical plants.

The feedstock for the downstream derivatives will be supplied from a cracker by Tianjin Petrochemical. Completion of the project is expected to be by Q4 2009 with investment cost of $1.7 billion.

The collaboration is the first SABIC's joint venture in China, a step that is seen will be a stepping stone for an even more agressive move towards establishing a petrochemical base in China from SABIC.