Nizhnekamskneftekhim chooses Ineos technology for new Russian PE projects

(hydrocarbonprocessing) -- Nizhnekamskneftekhim (NKNH) has licensed the Innovene G and Innovene S polyethylene (PE) technologies from INEOS for the company's new petrochemical project at Nizhnekamsk in Russia's Republic of Tartarstan, officials said on Thursday.

The 300,000 tpy Innovene G and 300,000 tpy Innovene S polyethylene plants will be part of a larger expansion at the complex, according to NKNH officials. The planned commissioning for the complex is in 2015 or 2016.

"By signing the license agreement for INEOS technology, we will be able to produce various grades of polyethylene and be competitive not only in Russia and CIS, but also in other foreign countries," said Vladimir Busygin, general director of Nizhnekamskneftekhim.

The combination of Innovene G gas phase fluid bed and Innovene S slurry phase HDPE provides Nizhnekamskneftekhim with a complete product portfolio, according to the company. The INEOS HPLL metallocene LLDPE film products will be featured in the product slate along with state of the art PE100 pipe grades, premium bimodal HMW HDPE film, bimodal blow molding and HDPE commodity molding grades. The carbon black compounding technology from INEOS will ensure ISO PE-100 qualification of the pipe grades.

Nizhnekamskneftekhim is Russian petrochemical major, the largest enterprise of its kind in Europe. Nizhnekamskneftekhim is Russia's largest producer of synthetic rubber and raw materials for its synthesis. In addition to production of general and special purpose rubber, the company produces polystyrene (PS), polypropylene (PP), polyethylene (PE), ethylene oxide, propylene oxide, alpha-olefins, surfactants. As MRC reported previously, Nizhnekamskneftekhim was going to start production of ABS plastics in November. According to Mr. Busygin, after the start of ABS production, Nizhnekamskneftekhim will be the largest producer ABS plastics in Russia.
MRC

(hydrocarbonprocessing) -- In the USA, prices for the chemical building block ethylene dropped to nearly 50 cents/lb at the end of November, their lowest level since early August, according to a new chemical industry report from PetroChem Wire.

The fall was due to ample supplies and slower sales volumes for the key plastic derivative, polyethylene (PE), the analysts said. Ethane and propane, two of the raw materials used to make ethylene, also saw price decreases in November. The ethane price fell by 5 cents/gal and propane fell by 15.5 cents/gal.

North American polyethylene sales slowed and inventories increased in the beginning of the fourth quarter following very strong sales during the summer months. June, July and August were the strongest three-month period for US polyethylene sales since 2006.

Hurricane Sandy contributed to the more recent domestic resin sales slowdown as Northeast plastics converters' operations were temporarily disrupted in late October and early November. As MRC reported earlier, Phillips 66 temporarily shut the second-largest oil refinery on the east US coast in New Jersey. Also, PBF Energy, Hess Corp and Philadelphia Energy Solutions reduced capacity utilization at their refineries. Besides, Braskem stopped production at its polypropylene (PP) plant in Marcus Hook, Pennsylvania.

"The approach to the end of the year is usually a slow time for sales as many companies seek to keep inventories lean in December. Without a dramatic supply interruption, the drift lower throughout the chain is somewhat expected," said Kathy Hall, PetroChem Wire's chief editor.

"However, as these markets evolve, we see more activity in forward months. During November, the 2013 market was quite active for ethylene. Prices for the first quarter of 2013 are higher than they were for November and December."
MRC

MOSCOW (MRC) -- Unlike rising PS quotations in Europe and Asia, Russian producers kept the cost of the material in December at the same level, report MRC analysts.

Russian GPPS and HIPS makers kept their price offers for the material unchanged.

The cost of Nizhnekamsk HIPS remains in the range of Rb77,000-81,000/tonne. GPPS is being sold at the level of Rb74,000-77,000/tonne.

Gazprom neftekhim Salavat did not change the cost of the material either. Traders that sell Salavat material offer natural HIPS at the price of Rb75,000-78,000/tonne, while the cost of GPPS is in the range of Rb70,500-72,000/tonne.

Meantime, the cost of polystyrene in the European and Asian markets might increase. In Europe, the contract price of styrene monomer rose by EUR15/tonne and made EUR1,428/tonne, FD NWE. PS producers report that they have to adjust prices due to low margins.

In Asia, prices of styrene monomer grew from USD1,580-1,600/tonne, CFR China, to USD1,640-1,660/tonne, CFR China. More detailed information can be found in ICIS-MRC Price report.
MRC

(hydrocarbonprocessing) -- Indonesia-based Pertamina didn't specify the financial value or a timeframe for the upcoming project, but said in its statement that domestic petrochemical production can't keep up with over USD5 billion worth of annual demand, making related industries heavily dependent on imports.

Indonesian state energy company PT Pertamina said Monday it has signed a memorandum of understanding with SK Global Chemical to construct a petrochemical facility in the Southeast Asian country.

Pertamina didn't specify the financial value or a timeframe for the project, but said in its statement that domestic petrochemical production can't keep up with over USD5 billion worth of annual demand, making related industries heavily dependent on imports.

"This partnership will allow the company to boost its output of refined products and strengthen our market position in the national petrochemical industry," Pertamina CEO Karen Agustiawan said in the statement.

SK Global Chemical Co., Ltd. develops, produces, and supplies olefins, such as ethylene, propylene, butadiene, MBTE, and butene-1; aromatics. The company also provides polymers, including linear lower, medium, and high density polyethylene products; and home, impact, and random polypropylene products. It serves customers in South Korea and internationally. The company was founded in 1962 and is based in Seoul, South Korea with a sales office in Shanghai, China. SK Global Chemical Co., Ltd. operates as a subsidiary of SK Innovation Co., Ltd.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of Liquefied Natural Gas (LNG).
MRC

(apic-online) -- The Chinese government's latest move to combat tax evasion by imposing a consumption tax on MTBE and aromatics is likely to raise gasoline blending costs and make imports of finished gasoline relatively more cost-effective, industry sources said this week.

China's State Administration of Taxation in mid-November announced a series of measures to take effect January 1, 2013, which include levying consumption tax on certain petroleum products that were previously exempted as well as requiring inspection certificates for those claiming exemption.

Specifically, the tax authority's notice of November 15 for the first time puts MTBE and aromatics in the list of products liable for consumption tax. The tax will be the same as the current rate on naphtha, which is Yuan 1,385/mt (USD220/mt), or Yuan 1/liter.

Asian Petrochemicalscan provides weekly market updates, commentary and assessments ranging from naphtha feedstocks to aromatics, olefins, and polymers in Southeast Asia, Korea, Taiwan and Japan.

MTBE and aromatics, commonly blended into gasoline to raise its octane level, are currently not subject to consumption tax. China exempts naphtha derivatives from consumption tax as a measure designed to encourage the petrochemicals industry and allow producers to recoup the consumption tax levied on naphtha.

Under the new rules, the exemption is being withdrawn for MTBE and aromatics sold for gasoline blending. Products obtained from naphtha that go into petrochemicals manufacturing will continue to enjoy exemption from consumption tax.

China's consumption tax is imposed on entities and individuals engaged in the production, processing or importing of taxable consumer goods.
MRC