Borouge signs contract for US$ 1.075 bln petrochemical project

(Borealis) -- Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC), one of the world's major oil companies, and Borealis, a leading provider of chemical and innovative plastics solutions, and The Linde Group, a world leading gases and engineering company, formally signed a US$ 1.075 billion contract for the construction of a 1.5 million tonnes per year (t/y) ethane cracker at Borouge's production site in Ruwais, Abu Dhabi, in the UAE.

The new cracker, the third of its kind to be built by The Linde Group for Borouge in one decade, complements the existing 600,000 t/y ethane cracker at the plant. After completion of the new cracker, Borouge will have the world's largest ethane cracker complex, setting a new benchmark for the industry.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

Nymex to launch new plastics contracts

(prw) -- The New York Mercantile Exchange will launch two new plastics futures contracts on June 6.

The 24-month contracts will be for a blow moulding grade of high density polyethylene and a film grade of linear low density PE. They will be financially-settled swaps that do not include physical delivery.

The Nymex has offered futures contracts on blow moulded HDPE and on three grades of homopolymer polypropylene since late 2008.


PE market recovering gradually

MOSCOW (MRC) -- In Q1 2010 PE consumption formed 363 kt which is nevertheless smaller than same period in 2008 ( 4%), but still exceeds the volumes of 2009 (by 25%) - according to MRC Annual reports.

Before the crisis the Russian PE market was growing average 15% a year. By MRC Annual reports fall in PE market formed 14% inn 2009. In Q3 2009 demand for PE recovered almost to the pre-crisis level.

The demand is growing for the material made in Russia and abroad. Domestic producers return to the Russian market: the supplies went up by 26% comparing with same period in 2009 (about 320 kt), exports decreased 35% (to 80 kt). Imports grew by 27% at the beginning of the year, comparing with Q4 2009. European material became especially attractive in conditions of falling EURO, as increase of supply from Germany, Belgium and Austria is being observed last months.

Stable growth of PE production in Russia is definitely a positive factor: almost 400 kt (6% more than in Q4 2009) were produced in Q1 2010. In 2009 PE production totaled over 1415 kt, 111% more than in 2008. In January Nizhnekamskneftehim was launched. Its capacities were about 50% charged all the year, andd total volumes formed over 230 kt.


For detailed event analysis and PE market forecasts please refer to MRC Annual reports.

Sabic presents new Polymer Catalysis

(Sabic) -- Saudi Basic Industries Corporation (SABIC) presented a check on last Tuesday (May 18), for US$1 million to endow a special Chair in Polymer Catalysis at King Abdullah University of Science and Technology (KAUST), which is based in Saudi Arabia.

Dr. Abdulrahman Al-Ubaid, Executive Vice President, Technology and Innovation, presented the check to KAUST on behalf of SABIC as further support for ongoing commitments by both parties to leverage their respective strengths to promote science and research that will benefit both parties, Saudi Arabia, the region and the world.

Catalysis research belongs to the Material Science and Engineering focus area within KAUST. By endowing the chair, SABIC seeks to create a truly world-class center of excellence in polymer catalysis based on a synergistic collaboration between the newly endowed KAUST chair and SABIC's own well-established expertise in catalyst development.

MRCMRC Reference

Sabic. The share in the Russian market in 2008:
PE - 0.2%;
PP - 0.4%;
PS - 0.2%.

Annual sales growth in Russia over the last 5 years:
PE - 33%;
PP - 62%.

Lukoil reduces investments into petrochemical industry

(Interfax) -- LUKOIL's investments into the program of modernization and reconstruction of refineries formed $ 827 million in 2009 comparing with $ 1.023 billion in 2008.

These include investment in upgrading Lukoil refinery in Russia - total $ 519 million (in 2008 - $ 688 million), overseas - $ 308 million ($ 335 million in 2008).