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Fushun Petrochemical increases liquid paraffin variety
FOCUS And one product of palm oil biodiesel production is C16 methyl ester, the desired feed for higher-quality MES. The indications are there that biodiesel production could finally provide the impetus for MES to be considered as a real commercial alternative to LABS. Proponents suggest that by using MES rather than LAB, a company with a 36,000 tonnes/y plant could make savings of up to $19.9 M/y. Palm oil company Golden Hope and Cognis Oleochemical have recently formed a joint venture with a Chinese detergent manufacturer to build a MES plant. According to Golden Hope, LAB prices are now $1200-$1500/tonne as a result of spiralling petroleum prices whereas MES from the Chinese plant has a projected cost of $700$800/tonne. Lonkey would be the first customer to source MES from the plant but Golden Hope is also in talks with some major foreign detergent manufacturers like Procter & Gamble and Unilever. Elsewhere, long-time champion Lion Corp reports that MES samples are being evaluated by customers, while recent financial results from Stepan also highlight the company’s capabilities to make methyl esters as a feedstock for its surfactant products. Finally, chemical processing equipment manufacturer Chemithon, which, among other things produces sulfonation equipment for detergent and surfactant production, cites the installation of a world-scale methyl ester sulfonation plant at Huish Detergents in Houston among its recent projects. So after all these years MES may finally make the leap into the mainstream. Caroline Edser
RAW MATERIALS Linear alkylbenzene/ paraffins Fushun Petrochemical increases liquid paraffin variety Fushun Petrochemical Co Ltd has commissioned a C16 removal column 2
ON
S U R FAC TA N T S
in the molecular sieve dewaxing unit of its liquid paraffin facility in Liaoning province, China. Startup of the column will enable the firm to produce more than 9000 tonne/month of paraffin II for use as a raw material in fatty alcohol production. The rising demand for fatty alcohols is the main reason for the shift to paraffin II production. China Chemical Reporter, 26 Jun 2006, 17 (18), 10
oleochemicals (fatty acids, glycerine and soap noodle). The remaining sales came from specialities such as performance additives, esters, polymerized fatty acids and alkoxylates. Uniqema has a total production capacity of around 700,000 tonnes/y with sites in Europe, the US and Malaysia. Croda has a base fatty acid capacity of around 40,000 tonnes at its site in Hull, UK.
Shell eyes coal-to-fuels and chemicals project in China
Chemical Market Reporter, 17 Jul 2006, (Website: http://www.chemicalmarketreporter.com)
Shell and Shenhua Ningxia Coal Industry Co (Shenhua-Ningmei) have agreed to conduct a joint feasibility study for a coal-to-liquids project at China’s Ningdong coal centre, one of 13 main coal sites approved for construction by the Chinese government. The proposed plant, to be based on Shell technology, will have a production capacity of 70,000 bbls/day, and will typically produce gasoil, naphtha, kerosene, base oils, light and heavy detergent feedstock, waxes and LPG. The type of products can be modified to meet market demands. Project costs will range from $5-6 bn, with Shell owning a minority interest. Shenhua-Ningmei has already entered a joint study agreement for a coal-to-chemical plant with Dow Chemical.
KLK sees good long-term return from China plant
Chemical Week, 19 Jul 2006, (Website: http://www.chemweek.com)
Oleochemicals Uniqema oleo restructurings ahead? The world oleochemical market is likely to undergo further restructuring following the acquisition by Croda of Uniqema from ICI for $742 M. Uniqema is a leading world producer of fatty acids and glycerine. It has been affected by competition from low cost producers in Asia, mainly in Malaysia. Croda is to combine its oleochemical assets with those for Uniqema and integrate speciality sales into its personal care, healthcare, agricare, polymer additive, home care and functional specialities and lubricant business groups. The firm plans selected disposals of manufacturing assets. Uniqema had sales of £626 M in 2005 with 34% coming from base
China is considered an ideal place for oleochemical investment as it imported 300,000 tonnes of fatty acids in 2005. Kuala Lumpur Kepong Bhd (KLK) has invested $70 M for a 90% stake in Taiko Palm-Oleo (Zhangjiagang) Co Ltd (Taiko) [see Focus on Surfactants, Mar 2004], while, Malaysian company Taiko Marketing Sdn Bhd holds the remaining 10% stake. Taiko has capacity to manufacture 150,000 tonnes of fatty acids, glycerine and soap noodles. KLK foresees longterm benefits from its new oleochemical plant Taiko, though it is unlikely to yield significant profits in the near term. KLK’s current total capacity is over 550,000 tonnes/y and this is likely to be augmented to 650,000 tonnes/y by the end of 2006. Primarily an oil palm company, which only recently moved into downstream oleochemicals production, KLK still generates profitability mainly from its plantation division. Earnings from the oleochemical division are expected to be affected by losses from KLK’s new fatty alcohol plant in Klang and potentially small losses at its Chinese fatty acids plant. The Star, 14 & 27 Jul 2006, (Website: http://www.thestar.com.my)
Golden Hope forms MES joint venture in China Malaysia’s Golden Hope Plantations Bhd has signed a memorandum of understanding (MoU) with Guangzhou-based detergent manufacturer Lonkey Industrial Co Ltd to set up a palm-oleochemical product plant used for the commercial SEPTEMBER 2006
RAW MATERIALS Linear alkylbenzene/ paraffins Fushun Petrochemical increases liquid paraffin variety Fushun Petrochemical Co Ltd has commissioned a C16 removal column 2
ON
S U R FAC TA N T S
in the molecular sieve dewaxing unit of its liquid paraffin facility in Liaoning province, China. Startup of the column will enable the firm to produce more than 9000 tonne/month of paraffin II for use as a raw material in fatty alcohol production. The rising demand for fatty alcohols is the main reason for the shift to paraffin II production. China Chemical Reporter, 26 Jun 2006, 17 (18), 10
oleochemicals (fatty acids, glycerine and soap noodle). The remaining sales came from specialities such as performance additives, esters, polymerized fatty acids and alkoxylates. Uniqema has a total production capacity of around 700,000 tonnes/y with sites in Europe, the US and Malaysia. Croda has a base fatty acid capacity of around 40,000 tonnes at its site in Hull, UK.
Shell eyes coal-to-fuels and chemicals project in China
Chemical Market Reporter, 17 Jul 2006, (Website: http://www.chemicalmarketreporter.com)
Shell and Shenhua Ningxia Coal Industry Co (Shenhua-Ningmei) have agreed to conduct a joint feasibility study for a coal-to-liquids project at China’s Ningdong coal centre, one of 13 main coal sites approved for construction by the Chinese government. The proposed plant, to be based on Shell technology, will have a production capacity of 70,000 bbls/day, and will typically produce gasoil, naphtha, kerosene, base oils, light and heavy detergent feedstock, waxes and LPG. The type of products can be modified to meet market demands. Project costs will range from $5-6 bn, with Shell owning a minority interest. Shenhua-Ningmei has already entered a joint study agreement for a coal-to-chemical plant with Dow Chemical.
KLK sees good long-term return from China plant
Chemical Week, 19 Jul 2006, (Website: http://www.chemweek.com)
Oleochemicals Uniqema oleo restructurings ahead? The world oleochemical market is likely to undergo further restructuring following the acquisition by Croda of Uniqema from ICI for $742 M. Uniqema is a leading world producer of fatty acids and glycerine. It has been affected by competition from low cost producers in Asia, mainly in Malaysia. Croda is to combine its oleochemical assets with those for Uniqema and integrate speciality sales into its personal care, healthcare, agricare, polymer additive, home care and functional specialities and lubricant business groups. The firm plans selected disposals of manufacturing assets. Uniqema had sales of £626 M in 2005 with 34% coming from base
China is considered an ideal place for oleochemical investment as it imported 300,000 tonnes of fatty acids in 2005. Kuala Lumpur Kepong Bhd (KLK) has invested $70 M for a 90% stake in Taiko Palm-Oleo (Zhangjiagang) Co Ltd (Taiko) [see Focus on Surfactants, Mar 2004], while, Malaysian company Taiko Marketing Sdn Bhd holds the remaining 10% stake. Taiko has capacity to manufacture 150,000 tonnes of fatty acids, glycerine and soap noodles. KLK foresees longterm benefits from its new oleochemical plant Taiko, though it is unlikely to yield significant profits in the near term. KLK’s current total capacity is over 550,000 tonnes/y and this is likely to be augmented to 650,000 tonnes/y by the end of 2006. Primarily an oil palm company, which only recently moved into downstream oleochemicals production, KLK still generates profitability mainly from its plantation division. Earnings from the oleochemical division are expected to be affected by losses from KLK’s new fatty alcohol plant in Klang and potentially small losses at its Chinese fatty acids plant. The Star, 14 & 27 Jul 2006, (Website: http://www.thestar.com.my)
Golden Hope forms MES joint venture in China Malaysia’s Golden Hope Plantations Bhd has signed a memorandum of understanding (MoU) with Guangzhou-based detergent manufacturer Lonkey Industrial Co Ltd to set up a palm-oleochemical product plant used for the commercial SEPTEMBER 2006