SABIC launches production of pipe grade of bimodal HDPE in Saudi Arabia and Germany

MOSCOW (MRC) -- SABIC, Saudi Arabia's petrochemical major, has begun manufacturing thermoplastic grades at its affiliates in Jubail and Yanbu in Saudi Arabia, and in Gelsenkirchen, Germany, reported the company on its site.

This could revolutionize the domestic pipelines sector with environmentally responsible applications ranging from transporting potable water to gas and sewage. The company is currently engaged with the local authorities, seeking to encourage them to construct pipelines for potable water distribution systems using these plastic grades to enhance service standards for the community.

The plastic resins go by the technical name of bimodal high density polyethylene (HDPE). Explaining the qualities of the product, Khaled Al-Mana, Executive Vice President, SABIC Polymers Strategic Business Unit, said that plastic pipes are safe, cost-effective and earthquake-resistant with good tensile strength. The specially designed pipe grade is light-weight and as a result, requires much less energy to produce and transport.

HDPE offers excellent resistance to slow crack growth propagation in high-pressure pipe applications and can therefore be used with advanced trenchless pipe installation technologies such as re-lining, horizontal directional drilling and guided boring. HDPE pipes enable savings in the transport, installation and use phase that contribute to an overall significantly better environmental performance than the industry accepted standard of more traditional material.

In late February, 2013, Sabic reported that it was preparing facilities at its plant in Gelsenkirchen, Germany, for the launch of commercial production of bimodal high density polyethylene (HDPE).The start of the production of the new grades for blow moulded bottles for household, industrial chemicals and personal care is scheduled for the second quarter of the current year, with grades suitable for containers up to 5L.

We remind, that, as MRC wrote previously, in autumn, 2012, SABIC developed a new grade of HDPE - SABIC HDPE PCG4906 - for large containers used in healthcare applications in close cooperation with Mauser, a well-known supplier of blow moulded industrial packaging solutions.

Earlier last year, the company introduced a new polyethylene grade SABIC HDPE F4520. The new PE grade can be typically used for tubes for cosmetics, toothpastes, food pastes, and household and industrial products. New collapsible tubes have an improved aesthetic appearance and squeezability when they are extruded from SABIC HDPE F4520.

Sabic is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. It is the largest public company in Saudi Arabia. Sabic is currently the second largest global ethylene glycol producer, the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer.
MRC

MOSCOW (MRC) -- Huntsman has acquired a 20 % stake in Nippon Aqua Co. Ltd., a spray polyurethane foam (SPF) insulation company based in Yokohama, Japan,and that it has entered into a ten-year supply agreement with the company, according to GV.

The financial terms of the deal were not disclosed.

Nippon Aqua is said to be the SPF market leader in Japan, with business operations in over 30 locations across the country, and is a subsidiary of residential home builder Hinokiya Holdings Co. Ltd. Huntsman supplies various MDI-based polyurethanes systems to Nippon Aqua.

Commenting on the deal, Anthony P. Hankins, President of the Polyurethanes division of Huntsman, said: "We are delighted to have the opportunity to invest in Nippon Aqua, who are a pioneer in the Japanese spray polyurethane foam market. Following the regrettable accident at the Fukushima Daiichi nuclear plant in 2011, there’s a great focus on how the country will source its energy needs and a growing demand amongst consumers for more effective insulation. Nippon Aqua is well-positioned to satisfy this demand and we look forward to strengthening our relationship with them to address these important needs."

We remind that, as MRC informed previously, in summer, 2012, Huntsman Corporation acquired the remaining ownership of Russian joint venture Huntsman NMG (HNMG), giving it full ownership of the company. HNMG is a leading supplier of polyurethane systems to the adhesives, coatings and footwear markets in Russia, Ukraine and Belarus.

Later last year, Huntsman unveiled a joint venture agreement with Sinopec Jinling Co., a subsidiary of Sinopec, to build and operate a world scale propylene oxide (PO) and methyl tertiary butyl ether (MTBE) facility in Nanjing, China. The facility is expected to be completed by the end of 2014. It will utilize Huntsman's proprietary PO/MTBE manufacturing technology.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

MOSCOW (MRC) -- BG Group has finalized its first substantial agreement for the long-term sale of liquefied natural gas (LNG) to India, one of the world's most rapidly growing energy markets and a key customer for the super-cooled gas, according to Hydrocarbonprocessing.

Under the agreement, BG will supply state-owned Gujarat State Petroleum Corp, or GSPC, with up to 2.5 million metric tpy of LNG, concluding an initial agreement announced in September 2011. Analysts estimate the 20-year contract could be worth around USD20 billion.

The deal highlights BG's drive to focus on the exploration and production and LNG shipping and marketing side of its business as it exits transmission and distribution, regasification and power generation. The company has already divested some of those assets, including last year's sale of its stake in Brazilian gas distributor Comgas.

The deal also underscores the growing significance to major energy suppliers of India, where the International Energy Agency sees natural gas demand almost tripling to 178 billion cubic meters by 2025 from 64 bcm in 2010 under its base case scenario.

"We have been active in India for more than 15 years and it is a large and important market that we understand well. We expect the country to lie third among LNG importing countries by 2025, behind Japan and China," said BG chief executive Chris Finlayson.

Suppliers are already battling for the contracts with India. Last October, GAIL (India) clinched a 20-year deal to buy LNG from the Singapore unit of Russia's state-owned gas giant OAO Gazprom.

India currently imports about a quarter of its gas requirements. But if gas production doesn't increase faster, India may have to import as much as half its needs within a few years, analysts say. Indeed, several gas-fired power plants are already shuttered or operating below capacity due to a shortage of gas.

Under the terms of the deal signed with GSPC, BG will initially supply 1.25 million tpy of LNG beginning in 2015 and for up to 20 years, potentially increasing to 2.5 million tpy after two years.

As MRC reported earlier, BP also eyes Russian petrochemical market, as a strategic one. Thus, in a move to expand its presence in Russia, BP started negotiating with Rosneft, Russia's largest oil company, the possibility of acquisition of at least 12.5% of the Russian state oil firm. Recently, Rosneft completed all legal and financial formalities for the acquisition of 100% stake in TNK-BP from the British BP and Russian consortium AAR. Upon the finalization of the deal, BP gets about USD11.3 billion and Rosneft's shares and becomes the owner, including the previously acquired shares, of 19.75% stake in the Russian company.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Brazilian state-run energy giant Petroleo Brasileiro, or Petrobras, has received an offer to purchase a refinery that the company owns in Japan, as the company is selling assets aimed at raising USD9.9 billion to fund its massive investment plan, said Hydrocarbonprocessing.

A Singapore-based company has proposed a USD650 million deal to Petrobras, including USD80 million for the Nansei Sekiyu refinery in Okinawa and USD570 million for oil and oil-derivatives stocks at the refinery complex, Valor said, citing sources with knowledge of the negotiations.

Petrobras is in the midst of a divestment program to raise cash to fund the company's USD237 billion five-year investment plan. The oil company expects to raise USD9.9 billion from asset sales, with a majority of the sales earmarked for 2013, CEO Maria das Gracas Foster said earlier this week.

The company is also in talks to sell its Argentine assets, Ms. Foster said. As MRC wrote earlier, an Argentinian court order determined the shutdown of Bahia Blanca city's refinery, property of Brazilian oil and gas giant Petrobras.

The facility, located in Argentina's Buenos Aires province was closed as of 6 am on Friday for an indefinite period of time as its effluents discharge certificates are said to be overdue since 2003, while the environmental permits have expired four years ago.

Petrobras purchased Nansei Sekiyu for a total of USD57 million in two separate transactions with ExxonMobil and Japan's Sumitomo.

Petrobras is also considering the sale of stakes the company holds in natural gas-distribution companies in Brazil, as well as several power plants that use fuel oil and diesel fuel to generate electricity. Stakes in several oil fields offshore Brazil and onshore natural gas blocks in Peru also make up part of the divestment plan.

MRC

MOSCOW (MRC) -- Huntsman Corporation announced a combined investment of USD135 million at two of its worldscale methylene diphenyl diisocyanate (MDI) manufacturing facilities: increasing capacity at its Geismar, USA site and upgrading its downstream specialties production capability at its Rotterdam, the Netherlands site, said Plastemart.

The Geismar capacity will be increased by 50ktes to 500ktes using improved process technology developed by Huntsman. The expansion will enable Huntsman to support the growth of its key customers and leverages the significant advantages of the Geismar site, with its access to US shale gas, strong logistics base and excellent integration. The new capacity is expected to come on-stream in 2014 and will further consolidate Huntsman's position as the leading MDI producer in the Americas region.

At its Rotterdam facility, Huntsman is commissioning a new state-of-the-art MDI splitter and downstream specialties manufacturing unit which will enable Huntsman to serve customers with a full range of next-generation, differentiated polyurethane products for automotive, adhesives, coatings and other applications. The unit is designed to handle globally sourced MDI precursor and will be operational by the end of March.

In addition to its Geismar and Rotterdam sites, Huntsman Polyurethanes operates a third worldscale MDI facility in Caojing, Shanghai.

As MRC wrote earlier, Huntsman Corporation acquired the remaining ownership of Russian joint venture Huntsman NMG, giving it full ownership of the company. HNMG is a leading supplier of polyurethane systems to the adhesives, coatings and footwear markets in Russia, Ukraine and Belarus.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

MRC