European MEG market is still undecided about September contract settlements

(ICIS) -- The European monoethylene glycol (MEG) market is still undecided about which of the two initial September contract settlements to follow, sources said on Wednesday. ⌠I think in the case of doubt the benefit should go to the customer, not the supplier, a contract customer said.

He added that EUR 1,105/tonne (USD 1,514/tonne), the lower of the two numbers, would be preferable to the EUR 1,110/tonne, as a EUR 57/tonne increase from August is already significant. The market has two first settlements that were concluded on 1 September.

⌠I would assume that in the end one [of the contracts] will be confirmed, said a producer. There were suggestions that if four other parties were to agree a figure in the middle of the two existing contract agreements, the matter would be resolved. However, a second customer said this scenario was unlikely.

A third customer has proposed EUR 1,105/tonne to its supplier, who has rejected it. The August contract at EUR 1,048/tonne was agreed at the same time as the initial September prices were announced.


Bashneft established JV with Petrochemical Holding GmbH

(RussianOilCompanies) -- Bashneft board of directors discussed establishing a joint venture, United Petrochemical Company, with the Austrian Petrochemical Holding GmbH. It will be a project company, set up to research and analyze the current situation and investment attractiveness of Russian petrochemical industry and to work out plans and proposals for the development of this sphere at Bashneft.

The parties will contribute to the EUR 10 mln share capital of the new company proportionately to their shareholdings: Bashneft - 75% and Petrochemical Holding GmbH - 25%.

The establishment of this joint venture is a legal consolidation of Bashneft and Petrochemical Holding cooperative intentions. Petrochemical Holding GmbH is headed by Yakov Goldovsky, who has considerable experience of working in petrochemical sphere.


New JV on production of auto components were created in Uzbekistan

( -- Two new joint ventures on production of components for cars were created in Uzbekistan in cooperation with the Korean companies. Both of them will be located in Andijan's Bobur OJSC.

Uzavtosanoat joint stock company and Austem Co. Ltd of South Korea created a joint venture, Uzauto-austem, on production of wheel disks and chassis junctions for new models of cars, produced at GM Uzbekistan. The project cost is USD 23 million. The charter capital makes up USD 8.6 million. Annually, the venture will produce 800,000 wheel disks and 100,000 chassis junctions.

Avtosanoat invest LLC, Uzavtosanoat JSC, and Erае cs limited founded Uzerae climate control JV with charter capital of USD 7 million. The enterprise will produce 250,000 units of radiators, air conditioner, ventilation, and heating systems a year. The project cost is USD 20 million.

It is expected that both enterprises will be commissioned in 2013.


Lukoil to launch first line of gas processing plant in Bukhara in August 2016

( -- Russia's Lukoil Overseas is planning to launch the first line of Kandym Gas Processing Plant in August 2016, a corporate newspaper of the Russian company ⌠Neftyaniyi Vedomosti reported. The paper said that the contract on development of feasibility study and documentation of construction of gas processing complex at Kandym fields group in Bukhara region of Uzbekistan.

Hyundai Engineering of South Korea won a tender to execute these works. The preliminary capacity of the unique gas processing plant will be 8 bln cubic meters of gas a year. It is planned that the plant will be launched on 1 August 2016. The contract should be approved by the government of Uzbekistan.

The product sharing agreement (PSA) on project Kandym - Khauzak - Shady - Kungrad was signed in June 2004. The PSA is designed for 35 years. Kandym fields group consists of six gas condensate fields.

Investments to the project will make up over USD 3 bln. Along with gas processing plant, it is planned to build 120 wells, gas-compressor stations, gas assembly points, terminals for loading of liquid hydrocarbons, electricity supply lines, etc.


CITCO petrochemical trading company renamed to SIBUR International GmbH

(Sibur) -- CITCO Waren-Handelsgesellschaft m.b.H trading company changed its name to SIBUR International GmbH. The company's director, Victor Viehweg has been replaced by SIBUR's Vice President for Corporate Governance and Development, Mikhail Mikhailov. The company's new Executive Director is Ilya Gustchin, who previously held the post of Deputy Manager for Economics and Finance of the Plastics and Organic Synthesis Division.

SIBUR purchased a 100% stake in CITCO, a major liquefied petroleum gas trading company, in 2009 to expand its European marketing opportunities. The trading company has been renamed to facilitate further integration into the SIBUR system.

SIBUR International GmbH continues as SIBUR's exports division responsible for supplying the holding company's products to Europe and Asia. The company has storage facilities in Black and Baltic Sea ports which it uses to receive, hold and unload products.