FOCUS ON
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.
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 anti-
dumping 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 August 2017
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
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 mid-
cut 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, 16-
22 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,