ME petchem makers will enjoy cost advantage even on feedstock shift

(apic-online) -- Middle Eastern petrochemical producers will continue to enjoy considerable cost advantage compared with their counterparts in Southeast Asia even as a scarcity of gas forces them to shift to other feedstocks, Jaap Kalkman, a partner at German consulting firm Roland Berger.

"The energy cost [expenditure on power] of a naphtha cracker in the Middle East will be about 50% lower than that of a naphtha-fed cracker in Singapore and Japan," Kalkman, who is also Head of Energy and Chemicals for the Middle East, said. "The feedstock cost for a Middle East naphtha-based producer will be lower as compared to an Asian producer, in the range of 1-10%."

He attributed this to easier access to oil reserves and growing refining capacity in the region.

All the major petrochemical projects in the region including Petro Rabigh Phase II, Kuwait Petrochemical Industries Company's Olefins 3 and the UAE's Chemaweyaat, all of which will come up over the next five years, plan to use either naphtha-based or mixed-feed crackers.

"In reality, feedstock cost in Saudi Arabia has already risen," Moayyad Al Qurtas, CEO of Riyadh-based petrochemicals producer Tasnee, said at the Gulf Petrochemicals and Chemicals Association annual forum held in Dubai late last month.

"Only a small proportion of feedstock being used in petrochemicals industry in Saudi Arabia is ethane. The rest is LPG," Al Qurtas said, explaining the high feedstock prices.

Riyadh-based investment bank Al Rajhi Capital said in a report early this year that gas prices in Saudi Arabia are likely to be raised in 2013. Saudi Industrial Investment Group Managing Director Suliman Al Mandeel said in November that Saudi petrochemical producers were concerned over a likely rise in gas prices that could impact their margins.

Talking of the link between oil and gas prices, Kalkman said: "Over the next 10 years gas prices in the Middle East will have a much stronger link to the global gas markets. This is because the governments will want to provide the benefits of subsidy to those most in need of it and instead of subsidizing gas they will want to provide monetary benefits to a growing populace."

MRC

(BASF) -- The plastics processor Ensinger located in Nufringen, Germany and BASF have entered into a joint undertaking with the Goldbeck Solar company to develop a modular mounting system for flat-roof solar installations in which the load-bearing elements are made of a BASF engineering plastic for the first time. Thanks to the new system, solar panels can be installed on flat roofs more easily and more quickly.

The advantages of the new support elements made of this application-optimized thermoplastic include especially the fact that the roof membrane is not punctured or damaged during the installation work. The roof remains water-proof without the need for any additional sealing measures. Moreover, Ensinger was able to benefit from injection molding of thermoplastics, integrating numerous functions into the plastic structure.

The substructure consists of very few individual parts: two identical pedestals made of plastic are joined together by a metal rail. A plastic bracket is mounted vertically on the rear pedestal by means of a snap-on connection and simple screw elements.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.

BASF posted sales of about EUR73.5 billion in 2011 and had approximately 111,000 employees as of the end of 2011. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
MRC

(plastemart) -- Kazakh national oil and gas company KazMunayGas is considering participation in USD1 bln investment project of the Belarusian company Mogilevkhimvolokno, which includes a complex to make terephthalic acid (PTA) out of Kazakh paraxylene (PX).

Terephthalic acid will then be processed by OAO Mogilevkhimvolokno to make polyethylene terephthalate (PET) and after that polyester fiber. The new complex will be much more effective as far as energy costs involved in the manufacturing process are concerned. Mogilevkhimvolokno will build a new complex able to make about 600,000 tonnes of polyester fiber per annum.

The Belarusian state petrochemical concern Belneftekhim and its subordinate organizations have put together a government program (to be discussed and approved by the Council of Ministers Presidium in December 2012) for the development of the national petrochemical industry till 2015 and till 2020.

In particular, the program provides for implementing a USD1 bln project at OAO Mogilevkhimvolokno in association with the Kazakh company KazMunayGas. An agreement on cooperation with KazMunayGas was reached during the visit of Prime Minister of Belarus Mr Mikhail Myasnikovich to Kazakhstan in November 2012.
MRC

MOSCOW (MRC) -- As part of its strategy to harness the power of the sun and in a move to improve the energy efficiency of its manufacturing operations, Dow Chemical has installed a high-efficiency solar system on the roof of the plant that makes ENLIGHT polyolefin encapsulant films at Map Ta Phut, Thailand, according to the company's press release.

The Map Ta Phut site is Dow’s largest in the Asia-Pacific region. The new system is expected to generate about 100 kilowatts of electricity annually for about 25 years.

Jirasak Singmaneechai, Thailand Country Manager for Dow, said: "This step represents another good commitment to doing what is right for Dow and for the environment."

We remind that Dow Chemical announced in August, 2012, that it had begun production of enlight polyolefin encapsulant films in Thailand to be used in photovoltaic solar panels. Market demand for these innovative films remains very strong and new production capacity will allow Dow to meet the needs of this fast-growing sector.

As MRC informed earlier, Dow Chemical had previously commenced production of films at its plant in Ohio, US, in 2010 and has recently announced the further development of ENLIGHT polyolefin PV module encapsulant films and adding manufacturing capacity at its integrated site in Schkopau, Germany, in 2013. Besides, the company also opened a new photovoltaics films applications laboratory in Shanghai, China.
MRC

(plastemart) -- Engro Polymer and Chemicals Limited (EPCL) will invest up to USD15 million in 2013 to enhance the production capacity of PVC resin, according to the company’s chief executive officer, as reported by Thenews.com.pk.

Almost USD10-15 mln will be invested in 2013 to enhance production from the existing three PVC resin plants at Port Qasim, Karachi. The company is looking into multiple ways for raising investment funds. It could be debt, equity, or a mix of debt and equity.

Debottlenecking will help produce an additional 35,000 to 40,000 tonnes of PVC resin.

Engro Polymer & Chemicals Limited (EPCL) is the only fully integrated chemical complex in Pakistan. EPCL is a subsidiary of Engro Corporation, involved in the manufacturing, marketing and distribution of quality Chlor-Vinyl allied products and PVC under brand name ‘SABZ’.
MRC