IndianPetroChem: March 2016

Project execution will include engineering, procurement, construction, installation and start-up of facilities.
8The Basic engineering package shall be provided by Reliance Project Management Group (RPMG) in consultation with Reliance R&D Department.
8Detailed Engineering for this project shall be executed by the Mumbai Engineering Center (MEC).
8Procurement will be done with the help of RIL's internal Procurement and Contracts department.
8Engineering deliverables for procurement such as SOQ for construction contracts, MRs for all tagged equipment and PR for all bulk items shall be developed by MEC.
8Construction of above ground structures such as equipment foundations, control building for the proposed CPVC, VCM, PVC & ethane storage tank project shall be executed under the responsibility of the site construction department of RIL by appointing various contractors.
8The construction contractors will include all disciplines, such as civil, structural, mechanical, piping, electrical and instrumentation. Vendor services will be taken for specialized equipment during the construction and commissioning phase.
8Project Schedule: Overall completion schedule envisaged for this project is 27 months with a two month grace period.

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RIL to invest Rs 13,000 crore in petrochemical expansion-III: Project management details

RIL to invest Rs 13,000 crore in petrochemical expansion-II: Details of utility requirements

The RIL expansion will be also entail investments in utilities that will involve the the treatment and distribution of raw water. steam/condensate, cooling water, DM water, fire water, compressed air, nitrogen and oxygen, hydrogen, fuel gas and a power plant.
The following systems will have to be put into place:
8Air Separation Unit
8Compressed air system
8DM water plant
8Raw water
8Cooling towers
8Captive Power Plant
8Fire water system
8Tank farm
8Effluent Treatment Plant (ETP)

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RIL to invest Rs 13,000 crore in petrochemical expansion-I: Expansion will raise capacity across the board

Who says big investments are not taking place in the oil & gas and related segments in India?
8Close on the heels of news that money is going to be pumped into the KG Basin to get deepwater gas discoveries off the ground, RIL has unfolded a massive Rs 13,250 crore plan to expand its gas craker at Bharuch in Gujarat, based on imported propane.
The expansion will raise the company's petrochemical capacity in the following manner:
8Ethylene capacity will go up by a hefty 200,000 tonnes
8Ethylene Dichloride by 89,000 tonnes
8Vinyl Chloride Monomer, Polyvinyl Chloride and Chlorine by 45,000 tonnes
8Caustic Soda by 52,000 tonnes
8Ethylene Oxide by 30,000 crore
8HDPE by Rs 2,000 tonnes
8Ethylene Vinyl Acetate by 2,000 tonnes
New units are to be added as well, and that includes:
8A Chlorinated Poly Vinyl Chloride (CPVC) unit with a capacity of 70,000 tonnes
8A Vinyl Chloride Monomer of 12,00,000 tonnes
8A Poly Vinyl Cholride of a capacity of 12,00,00 tonnes.
8There will also be a concomitant increase in relevant product and byproduct capacities as well.

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Tuesday 15 March 2016

HPCL & GAIL Plans to Build a Petrochemical Plant in Andhra Pradesh

State-owned Hindustan Petroleum Corp Ltd (HPCL) and GAIL India Ltd have shortlisted three sites in Andhra Pradesh for setting up a 15 million tons per annum refinery, Oil Minister Dharmendra Pradhan said today.

"HPCL and GAIL have carried out a prefeasibility cum configuration study for 15 million tons integrated refinery cum petrochemical complex and also a standalone petrochemical complex," he said.

Financial appraisal of setting up the refinery-cum- petrochemical complex or just the petrochemical complex has also been carried out.

Click on the following links for more story:

Pennsylvania ethane cracker still in play

Thailand’s naphtha-based petrochemical producers to benefit from lower oil prices in 2016

GNFC & Belgium's EcoPhos to set up Rs 526 cr di-calcium phosphate plant

China to enter into petrochemical complex in Azerbaijan

S Korea’s KPIC to expand ethylene capacity by H1 2017

INR Slips 11 Paise Against USD

Latest PVC offer to India

KPIC Plans to Expand its Ethylene Production Capacity

Global Crude Oil Price for Indian Basket

Monday 14 March 2016

Asian energy companies boosting petrochemical outputs

Demand for petrochemical products is growing solidly in China, despite turmoil in markets for steel and other materials due to China's supply glut.

Chinese and Southeast Asian energy companies are rushing to expand their production facilities to meet rising demand in the coming years, particularly in emerging markets.

Thailand's energy giant PTT group operates a total of about 20 oil plants in Map Ta Phut, Rayong Province, about 200km southeast of Bangkok. The public company has been running its ethylene plant at full capacity over the past two years. Ethylene is a basic petrochemical product.

Click on the following links for more on this story:

- Filatex's polyester fully drawn yarn plant begins production

- Taiwan's Investors Plans to Invest USD 2.5 bn in Indonesia

- Global Crude Oil Price for Indian Basket

- Total Plans to Build Petrochemical Plant in Iran

- PTT Group Plans to Build Petrochemical Plant

- Idemitsu Plans to Start Maintenance at Pasir Unit

- Lotte Likely to go offline its Yeosu Unit

- Dow to Sustain Offline its Bahia Unit

- Mitsui to go offline its Yamaguchi Unit

- Kumho P&B to Start Maintenance its Yeosu Unit

- Showa Operates Oita Cracker at 100% Level

Saturday 12 March 2016

Japan's CEH to Raise Stake in Maruzen Petchem

Japan based Cosmo Energy Holdings (CEH) said on Friday it would buy additional shares in affiliate Maruzen Petrochemical Co later this month to turn it into a subsidiary in a bid to shore up competitiveness amid shrinking domestic petrochemical demand.

Cosmo Energy Holdings, which has a 43.9 percent voting right in Maruzen, will buy shares from JNC Corp at an undisclosed price and increase its voting rights to 52.7 percent, the company said in a statement.

Cosmo will eventually consider turning Maruzen into a wholly-owned subsidiary, a company spokesman added.

Maruzen operates a 525,000 tonnes-per-year naphtha cracker in Chiba, eastern Japan, next to Cosmo's oil refinery.

Petro Rabigh completes phase II cracker expansion works, raising capacity

Saudi Arabia’s Rabigh Refining and Petrochemical Company (Petro Rabigh) has completed the mechanical works for the Rabigh Phase II ethane cracker expansion project, raising the cracker’s production capacity from 1.3 million mt/year to 1.6 million mt/year, the company announced Wednesday.

The company said it completed the mechanical works to expand the ethane processing capacity by an additional 30 million standard cubic feet per day (MMSSCFD), thereby increasing the unit’s ethane gas processing capacity from 95 MMSCFD to 125 MMSCFD.

“Petro Rabigh will employ the expanded production capacity upon the supply of ethane gas from the relevant parties, while the financial impact of full operation of the expanded ethane cracker unit will be seen in an increase in the company’s sales revenue by an estimated Riyals 750 million ($200 million) for 2016," the company said in a statement.

Petro Rabigh said previously that it expects to complete all construction work at the second Rabigh plant by September 2016, nine months later than originally planned....http://goo.gl/PGATmj

Korea's Hanwha Total to taken offiline its No.1 Aromatics Unit for Maintenance

South Korea based Hanwha Total will conduct a 45-day long turnaround for its No. 1 aromatics unit from the end of the week, a company source on Tuesday.

“The No.1 aromatics unit will be taken offline this week for a 45-day turnaround and is expected to restart in mid-April,” said the source.

Hanwha Total runs two aromatics units in Daesan, within South Korea’s Chungnam Province...http://goo.gl/PGATmj

China's Yisheng and Hengli lower PTA offers across the board Mar 9

China's SSTPC Shuts its MEG Unit on Technical Issues

Tosoh Shut its Yokkaichi Unit

MEGlobal nominates Apr MEG up $100/mt on Mar

Lotte Chemical to Shut its BTX Unit

Idemitsu Starts Maintenance at its Aromatics Unit

OPEC Crude Daily Basket Price

Petro Rabigh Completes Phase -2 Project

Friday 11 March 2016

Petro Rabigh completes phase II cracker expansion works, raising capacity

INR Slips 9 Paise Against USD

The Indian rupee has opened at 67.16 a dollar, lower by 9 paise compared to 67.07 a dollar in previous session.

BPCL Started Trial at its New PE, PP Unit

Brahmaputra Cracker and Polymer Limited (BCPL) has started trial runs at its new 220,000 metric tonne per annum HDPE and LLDPE swing Plant and 60,000 metric tonne per annum Polypropylene (PP) Plant.

The Plants are located at Assam in Northeast India. The new PP and PE Plants use Natural Gas and Naphtha as feedstock.

Global Crude Oil Price for Indian Basket

The International crude oil price of Indian Basket was noted at around USD 37.01 per barrel on March 10, 2016.

In Rupee terms, the price of Indian Basket decreased to Rs 2481.51 per barrel on March 10, 2016.

Petro Rabigh Completes Phase -2 Project

Saudi Arabia’s Rabigh Refining and Petrochemical Company (Petro Rabigh) has completed the mechanical works for the Rabigh Phase II ethane cracker expansion project, raising the cracker’s production capacity from 1.3 million metric tonne per annum to 1.6 million metric tonne per annum, the company announced Wednesday.

Thursday 10 March 2016

YNCC Started Maintenance at Yeosu Unit

South Korea based Yeochun NCC has planned to shut its No.2 Naphtha cracker for maintenance turnaround from March 10, 2016, according to a company source.

The source added that it will remain off for one month. The unit is located at Yeosu with production capacity of ethylene 578k metric tonne per annum and propylene 270k metric tonne per annum.

Latest EVA Offer to India

Hanwha Chemical has annnounced its latest EVA offer to India at USD 1350 per metric tonne on CIF basis.

Latest PVC offer to India

China based Tianye Chemical has annnounced its latest PVC offer to India.

According to information received from source, price of SG-5 grade of PVC offered at USD 800 per metric tonne on CIF basis. The shipment will be delivered at Nhava Sheva port in April, 2016.

Latest ABS Offer to India

South Korea based LG Chem has annnounced its latest ABS offer to India at USD 1350 per metric tonne on CIF basis. The shipment will be delivered at Nhava Sheva port in April, 2016.

CGPC Hiked PVC Offer to India

Taiwan based CGPC Polymer Corporation has revised its latest PVC offer to India at USD 840 per metric tonne on CIF basis. The shipment will be delivered at Nhava Sheva port in April 2016.

MRPL Raises PP Price

Mangalore Refinery and Petrochemical Limited (MRPL) has announced price revision in PP with effect from March 10, 2016.

According to information received based source, basic price of PP Homo increased by Rs. 500 per metric tonne.

HMEL Hikes PP Price

Hindustan Mittal Energy Limited (HMEL) has revised it PP price with effect from March 10, 2016.

According to information received based source, basic price of PP Homo increased by Rs. 1,500 per metric tonne.

IOCL Declares Price Revision in PE, PP

Indian Oil Corporation Limited has declared upward price revision in PE and PP with effect from March 10, 2016.

According to input received from industry based source, basic price of PP Homo increased by Rs. 1,500 per metric tonne while PP Copolymer hiked by Rs. 2,000 per metric tonne.

Price of HDPE and LLDPE raised by Rs. 1,000 per metric tonne.

Wednesday 9 March 2016

Korea exports 26,999 mt of benzene from Mar 1-6

South Korea has exported 26,999 mt of benzene from March 1-6, according to the preliminary export data obtained from an industry source based in Seoul, Monday.

By country, China has displaced the US to become the largest recipient of South Korean benzene, by taking in 17,999 mt. This was followed by exports to Taiwan which were tallied at 9,000 mt.

Paraxylene traders seek to extend long positions in view of further price rise in Asia

Asia's paraxylene (PX) spot traders are seeking to extend their long positions in anticipation of further price rises ahead, industry participants informed, Tuesday.

Although the PX market balance was generally long, according to one source, sentiment towards PX has been buoyed by a strong rise in crude oil prices over latest trading sessions, coupled with a robust showing in purified terephthalic acid (PTA) prices downstream.

Eyeing further price rises in PX, traders are opting to swap prompt cargoes for back-month ones, sources said.

China's Jiangsu Hengsheng Resumes its Methanol Unit

China based Jiangsu Hengsheng has restarted its Methanol unit on March 8, 2016 with production capacity of 400k metric tonne per annum

The plant is located at Jiangsu, the company is offering methanol at Yuan 1,800 per metric tonne ex-work, up Yuan 40 per metric tonne from March 4. It was shut for a week-long turnaround early March.

ONGC Videsh plans to invest $500 million to up output from Colombia

ONGC Videsh, the overseas arm of country’s flagship explorer ONGC, is mulling to spend nearly $500 million to increase crude oil output from the Mansarovar project in Colombia. However, this investment would be subject to extension of the Nare contract.

“From 2006 till 2015 year Mansarovar has invested around $1.5 billion. If the new strategic cooperation agreement of Nare Association is granted, the new investment would be close to $0.5 billion in the near future,” said Harvinderjit Singh, CEO of Mansarovar Energy Colombia, the joint venture between OVL and China’s Sinopec Petroleum International.

Mansarover has been the fifth largest oil producer in Colombia with production over 40,000 barrels of oil per day (bopd). In 2015, incremental average production in Nare Association if the new cooperation agreement is granted could be around 9,000 – 11,000 barrels per day through the implementation of new technologies, infill drilling and enhanced oil recovery (EOR) applications in Nare Fields.

During recent visit of Indian and Chinese diplomats to the field it was mentioned that Nare contract is expiring in November 2021 and any further major capex investment for increase in oil production from Nare fields would be related to the grant of extension beyond the expiry period.

Oil prices bounce back over 40%

After a prolonged slide that took oil prices within sight of the $20-a-barrel threshold last month, sentiment in commodity markets seems to have turned, raising the question of whether oil prices have finally bottomed out.

Whether it will prove lasting or not remains to be seen, but the recent rebound in the oil market comes as investors focus on declines in oil drilling and pin their hopes on a freeze in output by major producers.

Crude oil futures traded in New York rose 5.5 percent on Monday to $37.90 a barrel, after rising nearly 4 percent on Friday. The U.S. benchmark price has had three straight weeks of gains, the longest such stretch since May. In London, Brent oil futures rose above $40 a barrel for the first time since December.

Oil markets have bounced back more than 40 percent since hitting of a low of $26.21 a barrel in New York in early February. At the time, many analysts, including forecasters at Goldman Sachs, said that oil could slide to $20 a barrel with little to stem the decline.

Sasol Delays U.S. Chemical Plant as Price Drop Spurs Savings

South Africa based Sasol Limited will review the cost and timing of its $8.9 billion chemicals plant in the U.S. as slumping prices caused first-half profit at the world’s biggest producer of motor fuel from coal to drop 63 percent.

Some units converting ethane into plastics and other products at Lake Charles in Louisiana will start in 2019 instead of 2018, said Johannesburg-based Sasol, which aims to complete a review of the project by the middle of this year.