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31 OCTOBER 2011 (Vol. 49, No. 44)

Haldia Prioritizes SBR and Butene-1;Considers Technology, Partnership

Considers Technology, Partnership HaldiaHaldiaPetrochemicals Ltd. (HPL) said it will give top priority tothe production of styrene butadiene rubber (SBR) and bu-tene-1, two of the projects it recently said it was planningover the next few years (PCN, 6 June 2011, p 3).

HPL Vice Chairman Purnendu Chatterjee earlier thisyear announced plans to invest about Rs 4,000 crore ineight projects that would include the production of SBR,butene-1, ethylene propylene diene monomer and maleicanhydride.

The company plans to soon invite proposals for thesupply of technology for the butene-1 facility, which is ex-pected to cost Rs 200 crore. The entire investment will bemade by us, HPL Managing Director Partha S. Bhat-tacharyya told a local news source, adding it may takeplace through bank lending. HPL will supply feedstockfor the project.

For the Rs 1,000 crore SBR project, HPL is consideringa joint venture with a global major. We will provide theland for the plant . . . and also the raw material butadiene.Six to seven months will be required to start the project,Bhattacharyya said.

China Coal Selects Lummus TechnologiesFor Olefins Recovery, Conversion ProjectFor Olefins Recovery, Conversion Project YulinChina Coal Shaanxi Yulin Energy & Chemical Co. Ltd. hasawarded Lummus Technology a contract for the licenseand engineering design of two light olefins recovery units,

and has selected Lummus Olefins Conversion Technologyfor upgrading the resulting by-product.

The recovery units, to be built in Yulin, Shaanxi Prov-ince, will use breakthrough technology to recover ethyleneand propylene produced from methanol feedstock. Eachunit is expected to yield 300,000 t/y of polymer grade eth-ylene and 300,000 t/y of polymer grade propylene. Thefirst unit is expected to start up in 2013.

The Olefins Conversion Technology will upgrade by-product from the ethylene and propylene to produce an ad-ditional 165,000 t/y of polymer grade propylene.

Sinopec Adds Nanjing Refining CapacityFor Planned Yangzi Ethylene IncreaseFor Planned Yangzi Ethylene Increase NanjingSinopec is building a 160,000-b/d crude processing unit atsubsidiary Yangzi Petrochemical Corp.s Nanjing site inChinas Jiangsu Province in anticipation of an 800,000-t/yethylene capacity expansion planned by Yangzi.

The crude processing unit, being undertaken mainly toaccommodate the ethylene expansion, will double Yangzisrefining capacity to 320,000 b/d and is expected to be com-pleted by late 2013.

Yangzi is currently waiting for the Ministry of Envi-ronmental Protection to approve the ethylene projectahead of seeking approval from the National Development& Reform Commission for the plan. The company expectsto complete the expansion by the end of 2014.

Lukoil Decides to Proceed on Phase 1Of Stavropol Gas Chemical Facility

Of Stavropol Gas Chemical FacilityBudyonnovskLukoil has made a decision to go ahead with the firstphase of a gas chemical facility in Budyonnovsk, StavropoTerritory (PCN, 15 June 09, p 1).

Phase one involves a gas processing plant with a capacity of 2-billion cubic meters (cu m) per year using associ-ated petroleum gas from fields developed by Lukoil in theCaspian Sea. During this phase, an existing ethyleneplant will be upgraded and converted to process liquefiedgases. Commissioning of this phase is scheduled for 2015

A second phase, expected to be commissioned in 2017,will increase gas processing capacity to 4-billion cu m/yrand includes a 225,000-t/y ethylene plant and a 255,000-t/polyethylene plant.

Lukoil earlier said it was considering Budyonnovsk fora project that included a gas processing facility and theproduction of 600,000 t/y of polypropylene.

Invista Partners with Shanghais SCIPACTo Advance Nylon 6,6 Intermediates PlanTo Advance Nylon 6,6 Intermediates PlanShanghaiInvista has signed a memorandum of cooperation with theShanghai Chemical Industry Park Administration Com-mission (SCIPAC), signifying their intent to jointly ad-vance development of the first phase of Invistas nylon 6,6intermediates and polymer project at the park (PCN, 7Mar 2011, p 1).

The project, which had been delayed due to the globaleconomic crisis, will use Invistas butadiene-based technology to produce hexamethylene diamine, adiponitrile, nylon6,6 polymer and a variety of specialty chemicals.

Invista said it has started permitting and engineeringwork for the first phase and, subject to obtaining all necessary approvals from the Chinese government, it expects tobreak ground for the plant in early 2013. When completedthe plant will be the most energy efficient and technologically advanced nylon intermediates plant in the world.

Steve Kromer, Invistas senior vice president and pro-ject leader for this investment, commented: We are ex-cited to see this project reach another milestone, and aregrateful for the support provided by SCIPAC and relatedgovernment authorities in Shanghai.

Braskem Receives BNDES Credit LineFor Production Expansions in BrazilFor Production Expansions in Brazil Rio de JaneiroThe Brazilian development bank, BNDES, has approved a2.46-billion real ($1.4-billion) credit line for Braskem, to bused to expand its petrochemical production in Brazil.

Braskem must use the funds within the next 10 years,with disbursements to be made based on the individualproject, reported Bloomberg, citing a statement from thebank.

The company plans to spend 4.27-billion reais on ex-panding and upgrading facilities and improving technolo-gies by the end of 2013. No specific details were available

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31 OCTOBER 2011 2011 William F. Bland Co. 2

PTTGC Provides Growth Plan Details;Focusing on Investments in IndonesiaFocusing on Investments in IndonesiaBangkokPTTGlobal Chemical Plc (PTTGC) will position itself only as apetrochemical company, focusing on byproducts of exist-ing production, bioplastics and synergy in ongoing opera-tions of PTT Chemical (PTTCH) and PTT Aromatics and

Refining (PTTAR), local sources said, quoting PTTGCChief Executive Veerasak Kositpaisal.PTTGC began operating on 19 Oct. as a new entity that

combines PTTCH and PTTAR (PCN, 24 Oct 2011, p 1).An investment plan through 2020 designates PTTGC as

a petrochemical business flagship of PTT Group, he said.Our focus from now rests on the petrochemical business,not refining, he stressed.

Indonesia, with its large population, is considered astrategic investment location for PTTGC, ahead of regionalintegration into the Asean Economic Community (AEC) by2015, Veerasak noted. AEC membership will remove cur-rent limitations on imports and exports, capital invest-ments and human resources.

PTTGC, which has already announced plans to build a

plant to produce 100,000 t/y of butene-1 and butadiene,will next invest in the production of polycarbonate, Veer-asak disclosed, without giving details.

Algenol Begins Work on BiorefineryFor Direct To Ethanol TechnologyFor Direct To Ethanol Technology Fort Myers

Algenol Biofuels has started construction on its pilot-scaleintegrated biorefinery in Fort Myers, Fla., which will bethe first large-scale use of its patented Direct To Ethanoltechnology (PCN, 6 Dec 2010, p 4).

Algenols technology produces ethanol directly fromcarbon dioxide, sunlight and salt water using blue-greenalgae in patented photobioreactors (PBRs).

The facility is being built adjacent to Algenols existingadvanced biofuels research and development complex. Itwill contain 3,000 of the companys PBRs in a commercialmodule, Algenols advanced Vapor Compression SteamStripper ethanol concentration technology and new mem-brane-based ethanol dehydration technology to produceabout 100,000 gal/yr of fuel-grade ethanol.

Algenol said it has also ended its joint developmentprogram with Dow Chemical to build and operate a pilot-scale, algae-based integrated biorefinery to produce etha-nol from carbon dioxide at Dows Freeport, Texas, location(PCN, 6 July 09, p 2). The focus of that relationship willnow shift to purchasing specialty plastics and films devel-oped during the program for use in Algenols PBRs for thebiorefinery.

Evonik Acquires Kemira H2O2 PlantEvonik Acquires Kemira H2O2 Plant MaitlandEvo-nik and Kemira have signed an agreement under whichEvonik will purchase Kemiras hydrogen peroxide plant inMaitland, Canada, for an undisclosed amount.

Kemira is focusing according to its strategy on servingthe water intensive industries such as the pulp and paperindustry, explained Petri Helsky, head of the paper seg-ment. Hydrogen peroxide is in the core of Kemiras globalbusiness, but we are adapting our offerings regionally.

The transaction is scheduled to be completed at the endof November 2011.

Socar-Turcas JV Launches ConstructionOn $5-Billion Petkim Aliaga RefineryOn $5-Billion Petkim Aliaga RefineryAnkaraTheSocar-Turcas joint venture has started work on the $5-billion Petkim Aliaga refinery project in Turkey, which isintended to reduce the countrys need for imported oil, gasand petrochemicals (PCN, 22-29 Aug 2011, p 4).

The 214,000-b/d grassroots refinery, being built withinPetkim Petrokimyas site, will supply Petkim, Turkeyssole petrochemical producer, with naphtha and fuel oilfeedstock for its petrochemical production. Socar-Turcas,

joint venture of State Oil Co. of Azerbaijan and Turcas Petrol, holds a 51% interest in Petkim.

The project, scheduled for completion by 2015, will re-duce Turkeys dependence on the import of oil and oilproducts by huge amounts, said a local report quotingKenan Yavuz, chief executive of Socar-Turcas.

Linde Opens Korean Gas Separation UnitLinde Opens Korean Gas Separation Unit SeoulLinde Korea, with an investment of $180-million, has

opened its second air separation facility in Giheung, Koreato supply increasing demand for nitrogen, oxygen and ar-gon from customers in the petrochemical, shipbuilding,automotive and other industries.

Asia is a key market for the Linde Group, and we as-pire to grow our business in Asia and in Korea in thelonger term, said Sanjiv Lamba, a member of Linde AGsexecutive board.

Linde currently operates Korean industrial gas facili-ties in Dangjin and Chungnam Daesan PetrochemicalComplex, as well as two units in Pohang. The companyalso plans to build a 5,200-t/y nitrous oxide productionplant in Chungnam Asan.

People on the MoveBPByron Grote has been appointed executive vice presi

dent of corporate business activities, effective 1 Jan. 2012.Currently chief financial officer, Grote will be replaced by

Brian Gilvary, currently deputy group chief financial officer.

Kemira OyjWolfgang Buchele has been appointedpresident and chief executive to succeed Harri Kerminen, whwill retire on 1 Apr. 2012. Buchele, who was with BASF from1993 to 2007, is currently a member of the board and chief executive of Borsodchem.

BASFRobert Blackburn, senior vice president, GlobalSupply Chain & Process Innovation, has been named presi-dent, information services. He succeedsAndrew Pike, who isleaving the company at the end of the year.

SolvayNicolas Boel has been nominated chairman ofthe board of directors, with effect from 9 May 2012, followingthe annual shareholders meeting. He succeedsAlois Michiel-sen, who will reach the age of 70 in January.

Air ProductsJohn W. Marsland has been named seniovice president and general manager, global merchant gases.Presently senior vice president and general manager, elec-tronics, performance materials and supply chain, he succeedsRobert D. Dixon, who will retire in early 2012.

EnerkemLarry MacDonald, who retired as senior vicepresident and chief financial officer of Nova Chemicals in2009, has joined Enerkems board of directors.

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Cereplast Acquires Italian FacilityTo House New Bioplastics ProjectTo House New Bioplastics ProjectAssisiCereplasthas completed the purchase of a production facility in As-sisi, Italy, that will serve as the hub for the companysEuropean production of bioplastics (PCN, 9 May 2011, p 3).

Monte De Paschi di Sienna, a leading Italian bank, is

providing funding that will cover the majority of the costsrelated to the purchase and refurbishment of the facility.Cereplast estimates the total cost for the acquisition andrefurbishment to be approximately12-million.

The companys plans involve a two-phase project thatwill have about 100,000-t/y of bioplastics capacity. Thefirst phase, scheduled to begin production by the fourthquarter of next year, will add 50,000 t/y of capacity. Thesecond phase will be completed based on market demand.

This purchase reflects Cereplasts strong commitmentto serving Europes burgeoning bioplastics market andwere proud to be the first bioplastics manufacturer to haveproduction facilities on two different continents, statedFrederic Scheer, chairman and chief executive. This newplant strengthens our ability to meet soaring demand for

bioplastics in the region, which is expected to reach 1-million tons by 2014, he added.

IISRP Honoring Boorman and Stella;Venice Identified as 53rd AGM VenueVenice Identified as 53rd AGM Venue HoustonTheInternational Institute of Synthetic Rubber Producers(IISRP) has identified Peter Boorman and GiandomenicStella as the recipients of its General Award and Technical

Award, respectively.Boorman, retired from Shell Internationals elastomers

business, is being honored for his distinguished 45 yearsin the synthetic rubber industry, as well as his contribu-tion to the industry and the IISRP.

The IISRP cited Stella, of ExxonMobil Chemical, for be-ing instrumental in correlating the ethylene propylene di-ene monomer (EPDM) polymer structures with compoundsprocessability and performance, and the development oftheories to model the resulting rubber compounds behav-iors and attributes. He first proposed a theory for the in-corporation of carbon black during the mixing cycle, andthen developed the productivity gain theory for the EPDMbimodal grade technology. He also participated in the de-velopment of metallocene technology.

The awards will be presented to Boorman and Stelladuring the IISRPs 53rd annual general meeting, whichwill take place the week of 16 Apr. 2012 in Venice, Italy.

Apicorp Sells Banagas Stake to BoubyanApicorp Sells Banagas Stake to Boubyan ManamaArab Petroleum Investment Corp. (Apicorp) has sold its12.5% interest in Bahrain National Gas Co. (Banagas) toBoubyan Petrochemical Co. of Kuwait for an undisclosedamount.

Banagas, owned 75% by Bahrains National Oil andGas Holding Co. and 12.5% by Chevron, primarily extractsand markets propane, butane and naphtha by processingassociated gas from Bahrains oil fields.

This investment represents the reinforcement ofBoubyans commitment to its strategy of making strategicdirect investments in successful ventures in the chemical,petrochemical and oil and gas sectors, noted BoubyanDeputy Chairman Dabbous Mubarak Al-Dabbous.

Kuwait Still Interested in Third PartnerFor Refinery, Ethylene JV with SinopecFor Refinery, Ethylene JV with SinopecBeijingKuwait Petroleum Corp. (KPC) is continuing to seek apartner to take 20% of its 50% interest in the refinery andethylene complex in Zhanjiang, China, currently plannedas an equally-owned joint venture between Sinopec and

KPC (PCN, 30 May 2011, p 2).The $9-billion project, on which construction is expecteto begin early next year, involves a 300,000-b/d refinerythat will process Kuwaiti crude and a 1-million-t/y ethyl-ene plant, as well as related utilities and support facilitiesOperations are due to begin in 2014.

Earlier this year, KPC Chairman Hussein Ismail saidthe company was studying several offers from interna-tional companies interested in joining the project as a strategic partner.

We at KPC still plan to give around 20% of our shareto potential international investors, but a final decisionwill be made after studies are completed on pivotal issues,KPC Chief Executive Farouk Al-Zanki said recently.

Eurotecnica Touts Award from TakreerFor Carbon Black and Delayed CokerFor Carbon Black and Delayed Coker RuwaisEurotecnica said it has received an order from Abu Dhabi OilRefining Co. (Takreer) for the supply of carbon black tech-nology and the basic design for their carbon black and de-layed coker project in Ruwais, Abu Dhabi.

Eurotecnica noted that its technology sets new stan-dards in terms of product quality and consistency and,most of all, environmental friendliness, but gave no detailson capacity or other aspects of its award.

Takreer is currently expanding its Ruwais refinery in aproject that will double its refining capacity and also in-cludes a propane dehydrogenation unit that will convert

propane to 500,000 t/y of propylene using UOPs C3 Olefletechnology (PCN, 27 June 2011, p 1).

UOP said the carbon black and delayed coker projectwill use its Unionfining technology to upgrade distillate-range petroleum fractions. The project is expected to becompleted in 2014.

Nghi Son Refinery Further DelayedNghi Son Refinery Further Delayed HanoiConstruction on the 200,000-b/d Nghi Son refinery complex in Viet-nams Thanh Hoa province has no been postponed untilthe first quarter of next year, Reuters reported, citing Do-minique Peiffert, general director of Technip, one of the

project contractors.In addition to the refinery, which will process Kuwaiticrude, plans for the complex also include the production of400,000 t/y of polypropylene, 260,000 t/y of polyester andunspecified amounts of gasoline, diesel and liquefied natural gas (PCN, 4 Oct 2010, p 3).

The project is being built by Nghi Son Refinery andPetrochemical Co., a venture of PetroVietnam (25.1%),Kuwait Petroleum International (35.1%), Idemitsu Kosan(35.1%) and Mitsui Chemicals (4.7%).

The delay in construction, initially scheduled to beginthis year, is attributed to financing issues and governmenprocedures, said the report, quoting Hideto Murakami,general director of the joint venture company. Completionis expected to take three to four years.

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Dow Delivers 50% Earnings Increase,Sales Jump of 17% in Third QuarterSales Jump of 17% in Third Quarter MidlandDowChemical Co. last week reported a 50% increase in earn-ings and a 17% increase in sales for the third quarter ofthis year.

Earnings before interest, income taxes, depreciation

and amortization (EBITDA) were $2.1-billion, the highestthird quarter in Dows history. This contributed to recordyear-to-date EBITDA of $6.8-billion, up 21% from the same2010 period.

Sales for the three months ending 30 Sept. 2011 were$15.1-billion, compared to sales of $12.9-billion for the2010 third quarter. For the first three quarters of thisyear, Dow reported sales of $45.9-billion, up from $39.9-billion in the year-earlier period.

Dow noted that year-to-date sales from new productsintroduced over the past five years represented 30% of thecompanys total sales.

Dow delivered broad-based sales gains and significantearnings growth this quarter, reflecting the strength of ourtransformed business portfolio, said Andrew N. Liveris,

chairman and chief executive. This quarter shows clearlythat Dow has the agility and flexibility to respond to rap-idly changing economic conditions. . . . We are operatingfrom a position of financial strength. Dow is an enterprisethat is built for times like these and is built to grow,Liveris concluded.

Taiwans FTC Approves Formosa PlanFor HSBC JV with Kraton in MailiaoFor HSBC JV with Kraton in Mailiao TaipeiTai-wans Fair Trade Commission (FTC) has approved a jointventure between Formosa Petrochemical Corp. (FPCC) andKraton Performance Polymers for the production of hydro-genated styrenic block copolymers (HSBC) in Mailiao, Tai-

wan (PCN, 18 July 2011, p 1).Under a framework agreement signed earlier this yearby the two companies, the equally-owned joint venture willbuild and operate a 30,000-t/y HSBC plant at FPCCs ex-isting complex. The plant, expected to cost between $165-million and $200-million, is scheduled to come on streamin the second half of 2013.

FPCC Chairman Wilfred Wang, in announcing the pro-ject, noted that it is consistent with FPCCs strategy ofexpanding our portfolio into high value downstream busi-nesses. The manufacturing and operations at Mailiaoprovide an excellent infrastructure, feedstocks, utilitiesand essential services, he added.

Taiwans MOEA Introducing ProgramTo Add Value to Countrys PC SectorTo Add Value to Countrys PC Sector TaipeiTaiwans Ministry of Economic Affairs (MOEA) will nextyear launch a plan that is expected to add value to localpetrochemical production and attract foreign technology,China Economic News Service reported.

On 1 Jan., the MOEA will establish a task force office,through which its Industrial Technology Dept. will pro-mote the plan, with an anticipated cost of more thanNT$100-million.

The MOEA will subsidize research and development activities carried out by local firms, in addition to attractingnew technologies from overseas.

The ministrys Industrial Development Bureau believethat high-value-added petrochemicals will help local com-panies produce high-tier products, including green energyproducts, said the report.

Former Air Products Engineer HonoredWith Medal of Technology, Innovation

With Medal of Technology, Innovation WashingtonRakesh Agrawal, a former chemical engineer and tech-nologist at Air Products, has been presented with the Na-tional Medal of Technology and Innovation, the U.S. Gov-ernments highest honor for technology.

President Barack Obama presented the award toAgrawal in recognition of his extraordinary record of inno-vations improving energy efficiency and reducing the costof gas liquefaction and separation.

During his 24 years with Air Products, Agrawal wasawarded the most technology patents in the companys 71-year history. Overall, he holds 116 U.S. and nearly 500foreign patents.

Stolt-Nielsen Acquiring Dutch TerminalStolt-Nielsen Acquiring Dutch Terminal LondonStolt-Nielsen has reached a provisional agreement to ac-quire a bulk-liquid storage terminal in the Port of Moer-dijk, the Netherlands, from Den Hartogh Holdings BV.

The terminal consists of 30 stainless steel tanks, with atotal capacity of 17,720 cubic meters, and includes adrumming operation, three warehouses, a jetty with an8.4-meter draft and a tank container storage depot.

The terminal is located on 10 hectares of land, ap-proximately half of which is currently in use. Walter E.Wattenbergh, president of Stolthaven Terminals, notedthat the site provides us with room for future expansion.

The acquisition, for which financial details were notdisclosed, is expected to close on 31 Dec. 2011, subject to

agreement on the final contract.

Published since 1963 by Susan B. Kensil, Editor & PublisherWilliam F. Bland Co. Tammi M. Weir, Assistant Editor709 Turmeric Lane Michelle Zaro, Circulation DirectorPO Box 52327 William F. Bland, FounderDurham, NC 27717-2327 USA

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