- Email: [email protected]
Linear alkylbenzene in Asia
FOCUS closing conditions. Innospec is already building on its acquisition of Huntsman’s European surfactants operations last year [ibid, Oct 2016] with a new investment to increase production for dried anionic surfactants at the Saint Mihiel plant in France (p 3). ‘This is one of the core product families in our recently acquired surfactants business. This new investment is consistent with our strategy of focusing on speciality surfactant markets and applications’, explains Bruce McDonald, president of Innospec’s Performance Chemicals business. The additional capacity should be in place by the end of this year, the company reports.
ON
SURFACTANTS
The Southeast Asian region has a sufficient supply of LAB due to the 2016 start-up in Thailand of the 100,000 tonnes/y plant of Labix, a joint venture of Mitsui & Co and Thai Oil [ibid, May 2016]. Major LAB-producing companies in Asia and the Middle East include Jin Tung Petrochemical, which owns a 350,000 tonnes/y facility in Nanjing, China; Fushun Petrochemical, which runs a 280,000 tonnes/y plant in Fushun, China; and Gulf Farabi Petrochemical, with a 140,000 tonnes/y factory in Jubail, Saudi Arabia. Original Source: ICIS Chemical Business, 2–8 Jun 2017, 291 (22), 46 (Website: http://www. icis.com) ã Reed Business Information Limited 2017
Caroline Edser
RAW MATERIALS Linear alkylbenzene in Asia In 2016, global demand for linear alkylbenzene (LAB) reached 3.68 M tonnes, with Asia and the Pacific region representing nearly 49% of that, at 1.79 M tonnes. Demand for LAB is anticipated to grow by about 1.5% year on year in 2017. In terms of production, global LAB output is expected to increase from 3.7 M tonnes in 2016 to 3.76 M for 2017, with production in Asia and the Pacific anticipated to account for approximately 47%. Capacity in Asia surpasses 2.6 M tonnes/y, with 13 producers contributing more than 2.0 M tonnes/y. LAB import prices in India increased to $1375/tonne CFR India in early-Mar 2017, driven by the country’s implementation of antidumping duties on Iran, China and Qatar in Apr 2017 [‘Focus on Surfactants’, Jun 2017], in addition to higher benzene prices. The prices are now at about $1300/tonne CFR India, an increase of around 22% from approximately $1065/tonne CFR India in Jan 2016. According to sources, around 200,000 tonnes/y of LAB imports are required to meet demand in India. Farabi Petrochemical aims to increase its LAB and feedstock normal paraffin production from a new complex at Yanbu, Saudi Arabia. Construction work is anticipated to begin quickly, with commercial operations scheduled for 1Q 2020.
2
Shell updates on Geismar LAO project; decides to enhance alcohol capacity Shell Chemical LP said it is making good progress on the construction of a fourth linear alpha-olefins (LAO) unit at its Geismar, LA site in the USA. Building work started in Jan 2016 [‘Focus on Surfactants, Feb 2016] and the company is on schedule to begin commercial production by end-2018. The new 425,000 tonnes/y plant, based on the Shell Higher Olefins Process, will increase LAO capacity at the site to more than 1.3 M tonnes/y, making it the biggest site for this type of production globally. Once the project is finished, the total workforce at the Geismar facility is anticipated to increase to approximately 700 from around 650. Ethylene feedstock will be supplied from the company’s nearby Norco and Deer Park sites. Turner Industries, based in Baton Rouge, LA, was selected as the general construction contractor for the project. In addition, Shell has made a final investment decision to expand midcut and light-cut alcohol capacity at Geismar to meet growing demand for surfactant and plasticizer alcohols. It plans to start commercial production of incremental alcohols at the same time as the new LAO unit. Increasing Geismar’s alcohol capacity helps Shell to adapt to the changing market conditions by internally consuming both mid-cut LAO and internal olefin feedstocks. Original Source: PetroChemical News, 12 Jun 2017, 55 (23), 1 (Website: http://www. petrochemical-news.com) ã William F. Bland Co. 2017. Original Source: Chimie Pharma Hebdo, 11 Jun 2017, (0804), (Website: http:// www.industrie.com/chimie) (in French) ã ETAI Information 2017
Nanjing Jinling Huntsman to start up propylene oxide Operations at the new 240,000 tonnes per year propylene oxide (PO) plant of Nanjing Jinling Huntsman New Materials in Nanjing, Jiangsu province, China, were scheduled to begin in late Jun 2017. The plant will also manufacture 742,000 tonnes/y of methyl tertiary butyl ether (MTBE). It is expected to use about 560,000 tonnes per year of isobutane. Sinopec owns 51% of Nanjing Jinling Huntsman New Materials, while the rest is held by Huntsman [see also, ‘Focus on Surfactants’, Mar 2013]. Original Source: ICIS Chemical Business, 1622 Jun 2017, 291 (24), 8 (Website: http:// www.icis.com) ã Reed Business Information Limited 2017
EuroChem and ChemChina consider joint propylene oxide and isocyanate complex in Russia On 1 Jun 2017, China National Chemical Corp (ChemChina) and Swiss-headquartered chemical and fertilizer company EuroChem finalized a letter of intent concerning the potential joint construction of a complex on the Novomoskovskiy Azot site of EuroChem in Tula, Russia. The proposed complex, which preliminary estimates suggest would cost c $500 M, would produce propylene oxide and isocyanates [toluene diisocyanate (TDI) and diphenylmethane diisocyanate (MDI)] using production technology provided by ChemChina. Russia and the CIS currently rely on imports of these important raw materials from Germany, the Benelux countries, the USA and Japan. The partners will now establish a working group to assess the technical feasibility of their project and carry out due diligence. The output of the complex would be mainly intended for the surfactants, polyurethanes and synthetic lubricants sectors in Russia. Separately, EuroChem signed a memorandum of understanding (MoU) with Russian federal and Tula regional authorities to conclude a trilateral special investment contract in support of this potential project in the Tula region. This MoU creates the necessary framework to aid the project implementation by establishing a favourable investment environment in the region. Other investors from China and Russia may also participate in funding the project. In 2016, August 2017
ON
SURFACTANTS
The Southeast Asian region has a sufficient supply of LAB due to the 2016 start-up in Thailand of the 100,000 tonnes/y plant of Labix, a joint venture of Mitsui & Co and Thai Oil [ibid, May 2016]. Major LAB-producing companies in Asia and the Middle East include Jin Tung Petrochemical, which owns a 350,000 tonnes/y facility in Nanjing, China; Fushun Petrochemical, which runs a 280,000 tonnes/y plant in Fushun, China; and Gulf Farabi Petrochemical, with a 140,000 tonnes/y factory in Jubail, Saudi Arabia. Original Source: ICIS Chemical Business, 2–8 Jun 2017, 291 (22), 46 (Website: http://www. icis.com) ã Reed Business Information Limited 2017
Caroline Edser
RAW MATERIALS Linear alkylbenzene in Asia In 2016, global demand for linear alkylbenzene (LAB) reached 3.68 M tonnes, with Asia and the Pacific region representing nearly 49% of that, at 1.79 M tonnes. Demand for LAB is anticipated to grow by about 1.5% year on year in 2017. In terms of production, global LAB output is expected to increase from 3.7 M tonnes in 2016 to 3.76 M for 2017, with production in Asia and the Pacific anticipated to account for approximately 47%. Capacity in Asia surpasses 2.6 M tonnes/y, with 13 producers contributing more than 2.0 M tonnes/y. LAB import prices in India increased to $1375/tonne CFR India in early-Mar 2017, driven by the country’s implementation of antidumping duties on Iran, China and Qatar in Apr 2017 [‘Focus on Surfactants’, Jun 2017], in addition to higher benzene prices. The prices are now at about $1300/tonne CFR India, an increase of around 22% from approximately $1065/tonne CFR India in Jan 2016. According to sources, around 200,000 tonnes/y of LAB imports are required to meet demand in India. Farabi Petrochemical aims to increase its LAB and feedstock normal paraffin production from a new complex at Yanbu, Saudi Arabia. Construction work is anticipated to begin quickly, with commercial operations scheduled for 1Q 2020.
2
Shell updates on Geismar LAO project; decides to enhance alcohol capacity Shell Chemical LP said it is making good progress on the construction of a fourth linear alpha-olefins (LAO) unit at its Geismar, LA site in the USA. Building work started in Jan 2016 [‘Focus on Surfactants, Feb 2016] and the company is on schedule to begin commercial production by end-2018. The new 425,000 tonnes/y plant, based on the Shell Higher Olefins Process, will increase LAO capacity at the site to more than 1.3 M tonnes/y, making it the biggest site for this type of production globally. Once the project is finished, the total workforce at the Geismar facility is anticipated to increase to approximately 700 from around 650. Ethylene feedstock will be supplied from the company’s nearby Norco and Deer Park sites. Turner Industries, based in Baton Rouge, LA, was selected as the general construction contractor for the project. In addition, Shell has made a final investment decision to expand midcut and light-cut alcohol capacity at Geismar to meet growing demand for surfactant and plasticizer alcohols. It plans to start commercial production of incremental alcohols at the same time as the new LAO unit. Increasing Geismar’s alcohol capacity helps Shell to adapt to the changing market conditions by internally consuming both mid-cut LAO and internal olefin feedstocks. Original Source: PetroChemical News, 12 Jun 2017, 55 (23), 1 (Website: http://www. petrochemical-news.com) ã William F. Bland Co. 2017. Original Source: Chimie Pharma Hebdo, 11 Jun 2017, (0804), (Website: http:// www.industrie.com/chimie) (in French) ã ETAI Information 2017
Nanjing Jinling Huntsman to start up propylene oxide Operations at the new 240,000 tonnes per year propylene oxide (PO) plant of Nanjing Jinling Huntsman New Materials in Nanjing, Jiangsu province, China, were scheduled to begin in late Jun 2017. The plant will also manufacture 742,000 tonnes/y of methyl tertiary butyl ether (MTBE). It is expected to use about 560,000 tonnes per year of isobutane. Sinopec owns 51% of Nanjing Jinling Huntsman New Materials, while the rest is held by Huntsman [see also, ‘Focus on Surfactants’, Mar 2013]. Original Source: ICIS Chemical Business, 1622 Jun 2017, 291 (24), 8 (Website: http:// www.icis.com) ã Reed Business Information Limited 2017
EuroChem and ChemChina consider joint propylene oxide and isocyanate complex in Russia On 1 Jun 2017, China National Chemical Corp (ChemChina) and Swiss-headquartered chemical and fertilizer company EuroChem finalized a letter of intent concerning the potential joint construction of a complex on the Novomoskovskiy Azot site of EuroChem in Tula, Russia. The proposed complex, which preliminary estimates suggest would cost c $500 M, would produce propylene oxide and isocyanates [toluene diisocyanate (TDI) and diphenylmethane diisocyanate (MDI)] using production technology provided by ChemChina. Russia and the CIS currently rely on imports of these important raw materials from Germany, the Benelux countries, the USA and Japan. The partners will now establish a working group to assess the technical feasibility of their project and carry out due diligence. The output of the complex would be mainly intended for the surfactants, polyurethanes and synthetic lubricants sectors in Russia. Separately, EuroChem signed a memorandum of understanding (MoU) with Russian federal and Tula regional authorities to conclude a trilateral special investment contract in support of this potential project in the Tula region. This MoU creates the necessary framework to aid the project implementation by establishing a favourable investment environment in the region. Other investors from China and Russia may also participate in funding the project. In 2016, August 2017