IndianOil starts $3.2 bln cracker to meet plastic demand

April 2 (businessweek) -- Indian Oil Corp., the nation's second-biggest refiner, started a $3.2 billion naphtha cracker in northern India to meet demand from plastic makers. Our main unit at Panipat was commissioned last month. - Serangulam V. Narasimhan, director of finance, said by telephone today, - ⌠Commissioning of the other smaller units should be completed by April.

Indian Oil may cut exports of naphtha as the refiner uses the oil-product as feedstock at the plant to produce ethylene and propylene. Demand for petrochemicals, used to make cars and home appliances, is increasing as economies emerge from the worst financial crisis in 70 years. Indian Oil will use more than 2 million metric tons of naphtha when the cracker operates at its full capacity, Narasimhan said. The plant will have a capacity to produce 857,000 tons of ethylene a year and 650,000 tons of propylene, according to the Web site.

India's naphtha exports rose 26 percent to 8.7 million tons in the 11 months to Feb. 28, compared with the year-earlier period, according to provisional data on the Web site of the Petroleum Planning and Analysis Cell, a department of the oil ministry. The nation's naphtha exports had risen after Indian Oil increased overseas shipments because of falling domestic sales. Local demand dropped after Reliance Industries Ltd. started supplying natural gas, an alternative fuel to naphtha, from its biggest field in April.

Rival Reliance produced 1.4 million tons of ethylene and 552,000 tons of propylene from its cracker plants in western India in the three months ended Dec. 31, according to a statement on the company's Web site. Indian Oil will use naphtha produced at its Panipat, Mathura and Gujarat refineries at the cracker. Indian Oil and unit Chennai Petroleum Corp. operates 60.2 million tons of refining capacity and plans to increase it to 80 million tons a year by 2012, Narasimhan said Jan. 6.


Kraton Polymers announces european SBS price increases

April 2 (Kraton) -- Kraton Polymers LLC (together with its direct and indirect subsidiaries, "Kraton"), a leading global producer of styrenic block copolymers, continues to experience significant raw material and energy cost increases. Accordingly, Kraton announces a general price increase in Europe, Africa and the Middle East of Euro 250 /MT for Kraton SBS and OE SBS polymers and compounds across all markets and end-uses.

Subject to the terms of any applicable contracts, these price increases will take effect April 15, 2010.


Ineos explores possibility of setting up catalyst unit at Dahej Sez

April 2 (plastemart) -- UK-based INEOS is exploring the possibility of setting up a catalyst unit at the Special Economic Zone in Dahej. Senior officials from INEOS' US and UK offices have visited the site recently for setting up the project estimated to cost Rs 10 bln initially. The catalyst plant would cater to the company's clients in the East. The petrochemical plant in the SEZ will be able to source directly from the catalyst plant, specially for HDPE/LDPE swing product. Oil and Natural Gas Corporation (ONGC) is the anchor tenant for the SEZ, and is setting up a Rs 124.40 bln petrochemical complex called ONGC Petro-Additions Ltd., that has sourced its technology under licence from Ineos for its crackerand other units.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.

Bayer to build facility for eco-friendly chlorine production

April 1 (Bayer MaterialScience) -- Bayer MaterialScience has signed a contract with plant engineering company Uhde to build a new plant for chlorine production based on common salt. The plant, which will have an annual capacity of 20,000 metric tons and be built at Chempark Krefeld-Uerdingen in Germany, is scheduled to start operating in the first half of 2011.

It will be the first time that chlorine has been produced on an industrial scale using the innovative oxygen depolarized cathode specially developed by Bayer MaterialScience in electrolysis cells from UHDENORA. Electricity consumption will be up to 30 percent lower than in standard membrane technology, resulting in an indirect reduction of up to 10,000 metric tons of CO2 emissions each year.

Bayer MaterialScience and Uhde initiated the project in cooperation with RWTH Aachen University, Clausthal University of Technology and Dortmund University. Funding has been obtained from the BMBF (German Federal Ministry of Education and Research) under the FONA (Research for Sustainability) program. FONA supports initiatives for improved energy efficiency and higher raw material productivity. The projects receiving funding actively help counter the impact of climate change.


MRC Reference

The share in the Russian market in 2008:
PS - 0.7% (ABS - 7.2%).

Annual sales growth in Russia over the last 5 years:
PS - (-10%).

Polymers processing technologies:
injection molding.

Calculated HDPE consumption in Russia has increased on 11%

MOSCOW (MRC) - Calculated HDPE consumption in Russia in January - February 2010 has increased on 11% (to 122,85 KT) in comparing with the similar month last year - this is reported in MRC's Monthly report.

In February on Russian HDPE market low level of purchase activity was observed. As a result, material supply surplus was marked almost in all the kinds of HDPE. The production of polymer has increased on 13% in present year.

Kazanorgsyntez has essentially increased its production (on 14%). At the end of March Salavatnefteorgsyntez launched HDPE production. Material production of moulded grade SNOLEN НС7260 formed about 200 T.

The demand for pipe-grade HDPE stayed low. In February import supplies into this sector formed 3,32 KT. Energization of purchase activity in this sector should be expected no earlier than at the beginning of April. At the same time some companies started to increase imports of pipe-grade material from Asia in February already. So, pipe-grade HDPE supplies from South Korea have increased on 48% in comparing with January.


More information about PE market is presented in company's Monthly reports.