Key US Congress vote looms for debt ceiling crisis

(ICIS) -- Final votes in the US Congress were expected late on Monday and early on Tuesday on a plan to raise the government's borrowing authority, cut federal spending and provide an 11th hour rescue from a possible US default.

The US House of Representatives was scheduled to hold a final vote on Monday night on the debt ceiling package that was worked out between Republican leaders in Congress and the White House.
The broad outlines of that deal were announced by President Barack Obama on Sunday night, although he warned that the agreement to end the US fiscal crisis would not be certain until approved by both the House and Senate.

Under the proposed agreement, the federal government would put a hold on current spending and cut expenditures by as much as USD 2.5 trillion (EUR 1.7 trillion) over 10 years, with spending reductions for both domestic and military programmes.

If approved by Congress, the deal would provide for an immediate USD 1 trillion increase in the nation's borrowing authority or debt ceiling, which is currently at USD 14.3 trillion. That USD 1 trillion in the debt limit increase would be matched by about $1 trillion in first stage spending cuts over 10 years.

An additional USD1.5 trillion in borrowing authority would kick in later this year, providing that a special congressional debt-reduction committee comes up with up to USD 1.5 trillion in further spending cuts by late November.


Petrobras to invest USD 11 bln in oil exploration, production and refining projects

(Plastemart) -- Petroleo Brasileiro (Petrobras) plans to invest USВ 11 bln in oil exploration, production and refining projects in Mexico uptil 2015. Most of the investment will go into petrochemical plants and refineries in Mexico's Gulf states.

Petrobras plans to invest in Mexico's Etileno XXI project in Coatzacoalcos comprising ethanol processing plant for with capacity to produce 1 mln tons of ethylene and its derivatives. Output from the project will meet a large chunk of demand that is currently satisfied by imports from the US.


Revised cost of Assam gas cracker awaits sanction

(Plastemart) -- A delay in implementation of the Assam Gas Cracker has lead to a hike in project costs to Rs 8,879 crore from Rs 5,461 crore. These delays can be attributed to several causes including technology/design changes, time escalation, increases in cost because of change in infrastructure, site conditions, and construction cost. This cost hike has been approved by the Public Investment Board. The revised cost of the Assam gas cracker project being implemented by Brahmaputra Cracker and Polymer Ltd (BCPL) awaits sanction of the Cabinet Committee on Economic Affairs, as per

Though completion of the project is expected in H2-2013, any further increase in costs is unlikely as a large part of the work has been accomplished.


Saudi Industrial Investment Group established a joint venture company

(Platts) -- Joint stock company Saudi Industrial Investment Group, or SIIG, said Monday it has established a joint venture company dedicated to producing downstream petrochemical products.

The venture, called Petrochemical Conversion Company, or PCC, has been formed under a 50:50 partnership with the Arabian Chevron Phillips Petrochemical Company, the company said in a statement posted on the Saudi stock exchange Tadawul. A total of USD 2 bln will be invested in PCC over the next two years.

One of the first projects for the new company will be a nylon manufacturing plant, SIIG said. In addition, other downstream petrochemical plants will also be established under the joint venture, the company added.


Tobolsk-Polymer Project is 30% ready for commissioning

(UralPolit) -- Construction and assembling operations in the site of Tobolsk-Polymer plant are 30% completed. Maintenance support of "Tobolsk-Polymer" makes 95% now. According to Vice- president of SIBUR, General Director of "Tobolsk-Polymer" LTD, Michael Karisalov, now all main equipment for a new plant is shipped and delivered to the port of Arkhangelsk. The cargo is expected to arrive to the port of Tobolsk in the second half of August. Its transportation from the port to the construction site will be made in early September 2011.

"Tobolsk-Polymer" is the largest investment project of the Russian petrochemical industry. The annual capacity of this project will make 500 KT of polypropylene per annum.