Dow opens a representative office in Sochi

MOSCOW (MRC) - As a part of the agreement on its sponsorship of XXX Olympic Games signed in 2010, Dow Chemical will also support the Winter Olympics in Sochi in 2014, in connection with which the company has recently opened a representative office in Sochi, according to the company's press release.

According to Arthur Eritspohova, Head of Dow's Olympic department in Russia, a new company's office in Sochi will strengthen Dow's position in the Russian market, contribute to the further introduction of innovative technologies into various industries, such as construction, transport, electricity and telecommunications, wich are necessary for the development of infrastructure of the city and successful Olympic Games in Sochi.

We remind that Dow has developed a variety of solutions for the Krasnodar region even a few years before the first Winter Olympic Games in Sochi in 2014, as MRC reported previously. Thus, during the Olympic Games in London in mid-summer, an artificial ice rink, the creation of which was possible due to refrigerant DOWCAL and Dow's insulation (extruded polystyrene) STYROFOAM, was open in Sochi.Park. Besides, floor coverings in Sochi.Park - the entrance of Sochi.Park and Dow's exhibition area - were made of 400 square meters of modern recyclable carpet tiles. Dow's elastomers, used to make carpet backing, refrigerant DOWCAL and the company's insulation will all be re-used in the future to produce the same floor covering.

The company has also successfully developed projects for the construction of Russia's first bobsleigh track, providing cables for power supply in the region, polyethylene (PE) pipes for water supply facilities, thermal insulation for pipelines, the creation of infrastructure of the coastal and mountain clusters.
MRC

MOSCOW (MRC) -- The Council of the Eurasian Economic Commission is going to clear in the near future the duty on imports of copolymers of ethylene (code FEACN 3901 90 900 0), under which there were declared sufficiently large volumes of imports of linear polyethylene to Russia, according to MRC analysts.

The decision of the Council of the Eurasian Economic Commission from 12 October, 2012 N 89 "On amendments to the common nomenclature of foreign economic activity of the Customs Union and the Common Customs Tariff of the Customs Union on the silicone resins, polymers of ethylene, some grades of organic chemicals, fish," provides the rates of import duties on other polymers of ethylene by FEACN code 3901 90 900 0. Former import duty of 10% under this decision to be cut to 0%. The decision comes into effect after 30 days from the date of its official publication.

According to the rules of the Common Customs Union all polymers of ethylene, etc, containing the total mass of copolymer chains of more than 5% refers to FEACN code 3901 90 900 0. Thus, copolymers of ethylene often include linear polyethylene containing a total mass of more than 5% of the copolymer chains of butene, hexene or octene. While linear polyethylene, FEACN code 3901 10 100 0, was not the subject to import duty.

This confusion in the legislation significantly complicates the activity of importers of linear polyethylene in Russia and led to additional costs for customs clearance. In particular, all imported goods under FEACN code 3901 10 100 0, had to be tested to confirm the content of the copolymer chains in the total mass of no more than 5%. And this in turn entailed additional expenses of importers (cash cover, down time, laboratory test services, etc.). The same imported product could be classified under different codes (any PE can have acceptable variation in key indicators).

Since 2011 the amount of linear polyethylene, which are classified as other polymers of ethylene (FEACN code 3901 90 900 0), grew steadily. Last year the imports of linear polyethylene under this code made about 11,100 tonnes, over 11 months of this year this figure rose to 24.300 tonnes.

After coming into effect of the decision of the Council of the Eurasian Economic Commission on 12October, 2012 N89 procedure of clearance of linear polyethylene should be simplified, first of all financially. The absence of import duties (FEACN code 3901 90 900 0 made 10%) should affect the cost of linear polyethylene in Russia. The decision was not published officially yet.

MRC

(hydrocarbonprocessing) -- Deputy chief executive Alexander Medvedev said the Russian company would export more gas next year than this year. A minimum of a quarter of the gas will be supplied via new contracts, he said at the launch of the South Stream pipeline project in southern Russia that will bring Russian gas to Europe.

Russian natural gas monopoly OAO Gazprom aims to increase exports in 2013, deputy chief executive Alexander Medvedev said Friday, as reported by Prime news agency.

He said the company would export more gas next year than this year, when asked by a reporter how large the company's exports would be in 2013.

Mr. Medevedev wouldn't specify the size of Gazprom's gas exports in 2012, saying he would give the figure later, the news agency reported.

A minimum of a quarter of the gas will be supplied via new contracts, he said at the launch of the South Stream pipeline project in southern Russia that will bring Russian gas to Europe.

Gazprom is the largest extractor of natural gas and one of the largest companies in the world. In 2011, the company produced 513.2 billion cubic metres (18.12 trillion cubic feet) of natural gas, amounting to 17% of worldwide gas production. In addition, Gazprom produced 32.3 million tons of crude oil and 12.1 million tons of gas condensate. Gazprom's activities accounted for 8% of Russia's gross domestic product in 2011.
The company possesses subsidiaries in many various industry sectors, including finance, media and aviation. In addition, it controls a majority of stakes in various companies.

MRC

(hydrocarbonprocessing) -- The project will use 100 million standard cubic feet/day of natural gas to produce among other products di- methyl ether (DME), which can be used in Trinidad as a replacement or blending stock for diesel and liquified petroleum gas (LPG). The target date for the first stage of the project is early 2014.

Japan-based Mitsubishi Corp. is leading a group of investors that plan to build a methanol-to-petrochemicals complex in Trinidad.

The report cited Trinidad and Tobago's energy minister Kevin Ramnarine. The consortium, which also includes Mitsubishi Gas Chemicals Co., US-based ICCL and local company Neal & Massy Holdings, will invest USD850 million in the first phase of the project.

The project will be based at a 50-hectare (123.6 acres) site near La Brea in southwestern Trinidad. The project will use 100 million standard cubic feet/day of natural gas to produce among other products di- methyl ether (DME), which can be used in Trinidad as a replacement or blending stock for diesel and liquified petroleum gas (LPG).

Ramnarine said the target date for the first stage of the project is the first quarter of 2014, though it could come as soon as the fourth quarter of 2013.

MRC

(hydrocarbonprocessing) -- Despite green-lighting the Cnooc-Nexen and Petronas-Progress deals, Canada's government also sent a clear warning signal to other state-owned enterprises, saying that any further deals for Canadian oil-sands assets would be approved only under "exceptional" circumstances.

The Canadian government late Friday approved more than USD20 billion worth of investment by foreign, government-controlled energy companies in its energy patch, but slammed the door shut on most other big deals in Canada's oil-sands developments by state-owned enterprises.

Canada approved Cnooc Ltd.'s USD15.1 billion takeover bid for oil-sands operator Nexen, clearing one of the biggest hurdles for the Beijing-based energy giant in completing what would be China Inc.'s biggest foreign acquisition.

The deal, which already has won shareholder approval, still needs US and British government sign-offs, since Nexen has significant assets in those two jurisdictions.

But Friday's decision was Cnooc's biggest - and most closely watched - obstacle. Canada long has welcomed big foreign investment to help it develop its energy and mining resources, but the Cnooc deal triggered a much broader government review because of its size and Cnooc's status as a state-owned enterprise.

Canada also said Friday it had approved the 5.18 billion Canadian dollar (USD5.23 billion) proposed deal by Malaysia's Petronas for Progress Energy. That deal was initially rejected in October, but the government at the time said it would keep the door open to a revised offer from Petronas.

Representatives at the other two companies involved weren't immediately available to comment.

MRC