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Extracts from Nandini Chemical Journal, Dec 2012

Morpholene|Acrylonitrile|Guar Gum|LNG Terminal
Highlights of Some of the Articles

TALK OF THE MONTH : LOW PRICING POWER OF THE INDIAN COMPANIES IN THE GLOBAL MARKET
MORPHOLINE - PRODUCT PROFILE
BUTENE-1 – ALTERNATIVE PROCESS ROUTES
SPOTLIGHT ON SPECIALTY CHEMICAL - ETHYLIDENE NORBORNENE
ACRYLONITRILE –SCENARIO IN CHINA
INDO RUSSIAN TITANIUM PROJECT IN ODISHA FALLING APART
SCHEDULES OF HYDROPOWER PROJECTS TRIP
GUIDELINES FOR LNG TERMINAL
ETHANOL BLENDING MADE MANDATORY FOR OIL COMPANIES
GLOBAL OIL SCENARIO HIGHLIGHTS OF IEA REPORT
RENEWABLE GLYCOLS UNIT IN BRAZIL
GLOBAL GROWTH PLANS OF BAYER CROPSCIENCE
SUBSTITUTES FOR GUAR GUM
OTHER FEATURES
OTHER ARTICLES

TALK OF THE MONTH

Recently, an Indian engineering organization submitted it’s proposal for  a contract for a project in Middle East country.. Later on, the Indian organization found that the contract was not  awarded to it.

The organization wanted to know the reason for the rejection of it’s proposal, particularly since it submitted the proposal after going through the qualifying round. The Middle East company told that the price quoted by the Indian organization  was high . The Indian company came to know that the Middle East company awarded the contract to another company in USA, who quoted almost the same price  as the Indian company.

When the Indian company sought  further clarification, the Middle East company  said that the order for the Indian company would have been given if it’s  price was less. If the price of the Indian company would be same or nearly same as an American or European or Japanese company, then they would prefer to give the order to American, European or Japanese company rather than to Indian organization. This observation made the Indian company to realize that  if it has to get global contracts, it not only need to be very capable and competent but also it’s price must be much less than the price quoted by the companies in America, Europe and Japan and not merely equal.

Obviously, the above factual scenario only highlights the fact that the Indian companies lack pricing power in the global market. Several Chinese manufacturing companies are also facing similar situation in the global market.

A quick survey amongst the cross section of Indian importers clearly highlight the fact that the Indian buyers would opt to buy any material from China only if the price would be less than the price offered by the companies in the developed world . In the case of price of Chinese products being on par with that  of the price quoted by the companies in developed countries, the Indian buyers would not prefer Chinese products. This only proves that the Chinese companies too lack the pricing power in the global market. 

It is said that even Japan faced similar problems around two decades back, when any global buyer would prefer Japanese product, only if the price would be considerably lower than the price offered by European or American companies..

In the international market, every country needs a brand image. Such brand image and goodwill has to be carefully cultivated and developed over a period of time.  In short, every country should methodically spread the image around the world that it maintains clean and healthy environment and it is  reliable and trustworthy. The reliability indices of the country should be high, if it’s pricing power in the global market should improve.

The Indian producers of goods and services have problems in competing in international  market  as the  overall image of India in the international market still remain to be considerably improved. There is urgent need and considerable scope for  brand building of India in the global sphere.

MORPHOLINE - PRODUCT PROFILE
CAS Number                   110-91-8
Chemical formula O(CH2CH2)2NH

Chemically, morpholine is an amino ether. The ether function of the molecule is typically inert and most of the reactions of morpholine involve the secondary amine group.

Specification

Appearance                                        Clear liquid, Substantially free from suspended matter

Color, Pt-Co scale                               15 max.

Morpholine, wt. %                              99.0 min.

water, wt. %                                      0.3 max.

The following details are discussed in this article.

  •         Applications
  •         Process
  •         Process adopted
  •         Indian producers
  •         Anti dumping duty in India
  •         Global producers
  •         Indian import
  •         Indian export
BUTENE-1 – ALTERNATIVE PROCESS ROUTES
Molecular formula CH2 = CH - CH2 - CH3 
CAS number 106-98-9

Butene-1 (1-Butene) is a non-toxic, non-corrosive, colorless gas and liquid with a slight olefinic odor, asphyxiant gas, highly flammable.

1-Butene is stable in itself but polymerizes exothermically. It is highly flammable and readily forms explosive mixtures with air.

Storage and handling

Butene-1 is usually stored as liquid at 5 to 35 deg.C under pressure 0.5 to 3.5 Bar.. Pipelines are frequently used to transfer butene-1. Butene-1 is also transferred by truck.

Specification

Parameter

Unit

Value

Purity

vol %

99 min.

Methane + Ethylene + ethane

vol %

0.1 max.

Butene-2 + isobutene-butanes

vol %

1 max.

C6 hydrocarbons

ppm, vol

50 max.

Sulfur

ppm, wt

1 max.

Following details are discussed in this article

  •         Applications
  •         Global Use Pattern
  •         Global Capacity
  •         Global Producers
  •         Import Of Butene In India
  •         Process
SPOTLIGHT ON SPECIALTY CHEMICAL - ETHYLIDENE NORBORNENE
CAS NO. 16219-75-3
Formula C9H12 
Synonyms 5-Ethylidene-2-norbornene, 5-Ethylidenebicyclo[2.2.1]hep-2-ene, ENB, 5-Ethylidene-8,9,10-Trinorborn-2-ene
Stability May react with oxygen in the air
Decomposition       Carbon monoxide, carbon dioxide
Incompatibilities Oxygen, strong oxidizing agents

Purity/Impurities/Additives

Purity > 98.5% weight/weight
Impurities

(a) 2-Vinylbicylo[2,2,1]hept-5-ene      < 0.7 wt %

(b) Unknown including (a)                 < 2.0wt%

Additives 2,6-Di-tert-butyl-4-methylphenol        100-150 ppm

Following details are discussed in this article

  •         Applications
  •         Application developments efforts by Ineox Oxide
  •         Process
  •         Global demand trend
  •         Global producers
ACRYLONITRILE –SCENARIO IN CHINA

Producers

Acrylonitrile production units in China are mainly owned by Sinopec and PetroChina. Four enterprises of Sinopec (including joint ventures) have a total capacity of 680 kt/a, accounting for 48.26% of the total domestic capacity .

Five enterprises of PetroChina account  for 51.45% of the domestic capacity. PetroChina Jilin Petrochemical with a capacity of 424 kt/a is the largest producer of acrylonitrile in China, accounting for 30.09% of the total domestic capacity. Shanghai Secco Petrochemical, as the second largest producer, has a capacity of 260 kt/a and accounts for 18.45% of the total domestic capacity

Following details are discussed in this article

  •         China’s main producers of  acrylonitrile  in 2012
  •         New projects
  •         Import/export of  acrylonitrile  in China
  •         Supply and demands of acrylonitrile in China
  •         Process technology
INDO RUSSIAN TITANIUM PROJECT IN ODISHA FALLING APART

As part of the Indo-Russian bilateral cooperation, the Russian Federation along with JSC Technochem Holding had floated a joint venture with India’s SAPL to set up a special economic zone (SEZ) with an integrated titanium project at Gopalpur in Orissa’s Ganjam district. The JV — Titanium Products (TPPL) — where the foreign partners have a total 55% stake, inked an MoU with the Orissa government on October 15, 2008, to set up the project.

The recent developments relating to the project is discussed.

SCHEDULES OF HYDROPOWER PROJECTS TRIP

Hydropower projects with a combined capacity estimated at about 42,000 megawatt are yet to take off in various states.Most of these projects are in the northeastern part of India.

The northeastern states were slated to be the hub for hydropower, after states such as Karnataka and Himachal Pradesh tapped their potential to a significant  extent.

These states are reviewing their strategy to develop hydropower projects as earthquakes in the region have exposed the vulnerability of these projects and local citizens continue to oppose the projects due to rehabilitation and resettlement issues.

India has already slashed its target for adding capacity in the next five years to 10 gigawatt (GW) from 30 GW planned earlier, in view of the delays in environmental approvals, land acquisition problems and water rights.

Though the country has the potential to develop about 148 GW of hydropower capacity because of the rich potential in the Brahmaputra, indus and Ganges basin, only 39 GW has been developed and is operational.

Problems in securing long-term funding and high interest rates are preventing developers from taking up big hydropower projects.

The above scenario is discussed in this article.

GUIDELINES FOR LNG TERMINAL

The Petroleum Ministry has notified the rules on eligibility conditions for registration of liquefied natural gas terminals (LNG).

This is done with the objective of promoting the setting up of LNG Terminals in an environment of equitable access and commercial transparency to foster higher availability of imported gas in the country, the Ministry said in a statement.

The salient eligibility conditions for registration of LNG Terminal include offer at all times 20 per cent of its short-term uncommitted re-gasification capacity or 0.5 MMTPA as common carrier capacity.            
Second, technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas must be adhered to. And third, a bank guarantee for an amount equal to one per cent of the estimated project cost of the liquefied natural gas terminal or  Rs 25 crore, whichever is less must be furnished.

The new conditions would help user industries like power, fertilizer, refineries and petrochemicals to import LNG without having to set up their own re gasification facilities. This would partly meet the growing shortage of domestic gas.

The article further discusses the details.

ETHANOL BLENDING MADE MANDATORY FOR OIL COMPANIES

The proposal of making ethanol blending mandatory was first floated by the petroleum ministry,which was approved by the CCEA in October 2007.

But since then the programme has been struggling to take off despite the fact that the CCEA in November 2009 directed that a financial penalty be imposed on OMCs for their failure to reach targets.

Finally in August 2010,the CCEA set up the Saumitra Chaudhuri committee for determining the ethanol pricing after a Committee of Secretaries (CoS) failed to reach a consensus.

The Cabinet Committee on Economic Affairs (CCEA) has made it mandatory for oil marketing companies (OMCs) Bharat Petroleum,Hindustan Petroleum and Indian Oil Corporation to blend 5% ethanol with petrol. This is likely to reduce the fuel import bill and lower India’s dependence on fossil fuel, as the ethanol prices are lower than petrol.OMCs have been blending ethanol with petrol for the past two years but the policy was only partially implemented in absence of any clear directive.

The details are further discussed in this article.

GLOBAL OIL SCENARIO HIGHLIGHTS OF IEA REPORT

The recent International Energy Agency (IEA) flagship report ‘World Energy Outlook 2012’ said that the US would become the world's largest oil producer by 2017, surpassing Saudi Arabia. But, this will not result in the US becoming a large exporter, as the majority of the production in the US will be absorbed domestically.

According to World Energy Outlook 2012 report, by around 2020, the US is projected to become the largest oil producer, overtaking Saudi Arabia, until mid-2020s when the latter is expected to regain its position.

RENEWABLE GLYCOLS UNIT IN BRAZIL

Coca-Cola has partnered with JBF Industries (Mumbai) to expand production of biobased ethylene glycol (EG) for its partially biobased polyethylene terephthalate (PET) bottles.

JBF operates polyester fiber plants in India and a PET and polyester film complex in Singapore. It also has plans for a PTA unit in India and a PET plant at BP’s Geel, Belgium, manufacturing complex.

JBF will build the world’s largest biobased EG plant in So Paulo using sugarcane and sugarcane processing waste as feedstock

  • The article discusses the details of the project.
GLOBAL GROWTH PLANS OF BAYER CROPSCIENCE

Bayer CropScience, the second-largest agricultural chemicals player behind Syngenta, has unveiled growth plans for the next 5 years based on a €7-billion ($9 billion) investment program.

The program consists of a €5-billion R&D budget and €2 billion to expand the company’s asset base.

Bayer CropScience, meanwhile, has realigned and renamed its business units and provided details for its 2011–16 product pipeline, which has a peak sales potential of €4 billion—far higher than previous estimates.

Bayer CropScience last year reported sales of €7.26 billion. Sales in the first half of this year were up 16.3%, to €4.89 billion, with Europe growing at 6.7%, to €1.90 billion; North America advancing by 31.8%, to €1.59 billion; Asia/Pacific by 15.8%, to €689 million; and Latin America/Africa/Mideast up 14.4%, to €701 million.

Business units

The new name for Bayer CropScience’s crop protection business is small molecules and the renamed bioscience unit is now called seeds.

 The company has also created a third business unit, biologics, the formation of which follows the recent acquisition, for about $500 million, of AgraQuest (Davis, CA). AgraQuest is a supplier of biological pest management solutions based on natural microorgansms.

Following details about Bayer CropScience are discussed in this article

  •         Biologics  portfolio
  •         Seeds portfolio
  •         Small molecule portfolio
  •         R&D targets
  •         New products in the pipeline
  •         Expansion plans
SUBSTITUTES FOR GUAR GUM

India accounts for more than 70% of the global production of guar. The seed is also grown in Pakistan and the US.

Halliburton has developed an alternative to guar gum called PermStim, that’s highly competitive in the event of future guar cost escalation.

Halliburton and Baker Hughes help companies drill and complete oil and gas wells using a pressure pumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations. Guar is made into a thickening gel used to carry sand down a well and into the cracks created from fracturing.

Details about substitutes for guar gum is discussed in this article.

OTHER FEATURES

ANTI DUMPING PAGE

INDIAN SOLAR CELL UNITS AT CROSS ROADS
Plight of Indian companies
Although India has 1,045 MW of grid connected solar power projects, the solar panels have almost entirely come from abroad — mostly from China and the US.Indian manufacturers such as Indosolar and (the erstwhile) Tata BP Solar have lost out on this opportunity. BP, the British energy company , exited Tata BP Solar earlier this year and the new Tata Power Solar has given up manufacturing.
This article discusses about the Indian solar scenario.

The antidumping measures introduced in  the various countries in the last few weeks on the following products are discussed

  •         Phthalic anhydride
  •         Polysilicon
  •         Spandex fibre
  •         Nucleotide Food Additives Case
  •         Skimmed milk powder
  •         Caustic soda

SAFETY AND ACCIDENT PAGE

Accidents occurred in following  companies are discussed

  •         Explosions at Nippon Shokubai’s Himeji SAP plant
  •         Blaze at Arkema Peroxides

NEWS ROUND UP – INTERNATIONAL

Following details are explained

  •         Saltigo to shut US site, abandons expansion plans
  •         Gevo halts isobutanol production
  •         FMC, Isagro collaborate for fungicide
  •         MMA project in USA
  •         Butadiene
  •         SAFC building powders plant
  •         Rare earths recycling units
  •         Photovoltaic lab
  •         Texas City refinery
  •         CPVC project in USA
  •         Biosuccinic acid project
  •         Nonhalogenated flame retardant
  •         New PEEK plant in UK
  •         Bio methionine complex in Malaysia

NEWS ROUND UP - INDIA

Following details are explained

  •         Nalco’s Koraput bauxite refinery unit
  •         Gold mining projects in Karnataka
  •         Value of closed fertilizer units
  •         Polyfluoroimides
  •         Rajasthan refinery

CHINA NEWS

SHALE GAS PROJECTS IN CHINA

Shale gas exploration project in Chongqing

The  private equity, U.S.Forbes Shale Gas Exploration Fund  would provide to finance shale gas exploration project at Liangjiang New Area of Chongqing.

Shale gas scenario in China are explained in this article.

CHINA’S  OIL RESERVE

In 2001, China’s tenth five-year plan (2001-2005) called for the establishment of a national strategic oil stockholding system to improve the country’s energy security.

China’s Strategic Petroleum Resource (SPR) will be the world’s second largest by size, behind the US, after its completion in 2020.

The Chinese SPR is being developed in three phases.

China built the tank farms for the first phase, with a capacity of more than 100m barrels, between 2004 and 2008. By the end of 2010, China had filled up the four storage centres, all located near big refining centres on the east coast.

China appears to have stopped filling up its strategic petroleum reserve (SPR) – removing a big source of incremental demand from the global crude oil market.

More details are provided in this article.

POLYSILICON  SCENARIO IN CHINA

With the decline in the global demand for solar energy and more trade barriers, China’s photovoltaic (PV) industry is getting bogged down. 

However, on the International Solar Summit held on October 27, It was said that new situation, will make the industrial depression an important opportunity for the transformation and upgrading of China’s PV industry.

Over 90% of the polysilicon producers have halted production in China so far.  Only five producers are still in production, but their operation rates are declining. 

Scenario in China about polisilicon is discussed in this article.
Following details in China are explained

  •         Photovoltaic project activated in Xinjiang
  •         SEBS
  •         Speciality phenolic resins
  •         Acrylic acid and esters project
  •         Aniline project
  •         Glyphosate

PHARMA PAGE

Following details are explained

  •         Pricing method of NPPA for insulin
  •         Lipitor
  •         Natural pigment from skin of squid

ENERGY PAGE

TECHNOLOGY DEVELOPMENTS IN SOLAR CELLS

A large number of new solar technologies are entering the market, thereby decreasing the dominance of silicon photovoltaics. 

One of most promising is thin film: Projects in India are using it already and technology is rapidly advancing in this field. 

Also in the works are new solar thermal technologies, plasmonic solar and all-carbon solar cells, not to speak of new system designs and manufacturing techniques. 

The next decade could also see the emergence of artificial photosynthesis. 

Following matters are discussed in this article

  •         Carbon solar
  •         3 D Solar
  •         Thin Film
  •         Cheaper Solar Cells

COST OF SOLAR POWER PROJECTS IN INDIA

The Central Electricity Regulatory Commission has fixed the normative cost of solar photo voltaic plants as Rs 8 crore per MW of installed capacity, for the year 2013-14.

The CERC’s normative cost is generally taken as the benchmark by developers and often forms the basis for tariff negotiations.

The above subject is discussed in this article.

OTHER ARTICLES
  • Price details of glyphosate
  • China’s import & export  value in September 2012
  • Tenders
  • Chemicals imported at the Chennai port during the month of September 2012
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