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MOSCOW (MRC) -- Petro Rabigh (Rabigh Refining and Petrochemical Company) has announced that it will be performing maintenance work on its ethan cracker unit which will lead to the shutdown of the said unit as well as the units that are integrated to it, according to the company's statement.
The maintenance started on April 22, 2013 and will last until May 3, 2013 when gradual start up for these units will take place. The company's downstream units include LLDPE plant, HDPE unit, PP unit and MEG plant.
This shutdown is expected to have an impact on the financial results for the second quarter of 2013. Further developments will be announced as they occur.
As MRC reported previously, Petro Rabigh had signed an agreement with Tasnee and Saudi Advanced Industries (SAIC) for the supply of propylene oxide to the joint venture for the production of polyether polyol. The plant is located in Rabiga, in the west of Saudi Arabia on the Red Sea. The production launch is scheduled for the fourth quarter of 2013.
PetroRabigh, a joint venture between Saudi Aramco and Japan's Sumitomo Chemical, has an annual output capacity of 18 million tonsne of refined products and 2.4 million tonnes of petrochemicals.
MRC
Petro Rabigh to perform maintenance on ethan cracker and its derivatives units
Shell mulls participation in upcoming oil and gas Brazil auction
MOSCOW (MRC) --Anglo-Dutch oil major Royal Dutch Shell is interested in Brazil's upcoming oil and natural gas concession auctions but has not yet decided whether to participate, reported The Wall Street Journal with reference to Chief Executive Peter Voser.
"Shell will study the bid areas and make a technical evaluation before deciding how to participate" in the auctions, Mr. Voser told reporters. The first of three auctions scheduled for this year will be held May 14-15, the first such bid round since 2008.
"Our assumption is that Brazil has significant resources being developed and to be developed," Mr. Voser said, noting that Latin America's largest country will play an important role in the global oil and natural gas map in the future.
In addition to the concession auction, Mr. Voser said that Shell was evaluating assets state-run energy giant Petrobras, has put up for sale in Brazil and the Gulf of Mexico. Petrobras plans to sell USD9.9 billion in assets to fund its USD237 billion investment plan through 2017.
"We have a very successful partnership with Petrobras and are interested in further collaboration," Mr. Voser said.
Shell is also carefully watching developments in Venezuela, where the company has a small operation in the Lake Maracaibo region, Mr. Voser said. Venezuela has suffered with political unrest following President Hugo Chavez's death and last weekend's election of his handpicked successor, Nicolas Maduro.
"We take a long-term view on investments in Venezuela," Mr. Voser said, adding that Shell was on the lookout for growth opportunities in the country that is home to the world's largest crude-oil reserves.
Elsewhere, Mr. Voser said, the shale gas revolution in the U.S. could fundamentally change industry in the world's largest economy. "Cheap natural gas feedstock could drive a reindustrialization in the U.S.," Mr. Voser said, bringing previously outsourced manufacturing heavy industry and petrochemicals output back to the U.S.
Shell also expects the U.S. to approve exports of between 50 million and 60 million tons of liquefied natural gas derived from shale gas, Mr. Voser said.
Royal Dutch Shell, commonly known as Shell, is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is also one of the world's most valuable companies. As of January, 2013 the largest shareholder is Capital Research Global Investors with 9.85% ahead of BlackRock in second with 6.89%. Shell topped the list of largest companies in the world.
MRC
SE Asian demand for polyolefin grew at a CAGR of over 6% in the last decade
Southeast Asia has emerged as a major region for the polyolefin industry due to strong demand growth. The major countries in the region which are driving the growth of the polyolefin industry are Thailand, Malaysia and Indonesia. These countries are the largest contributors to polyolefin demand in the region.
Singapore, on the contrary, does not have a high consumption but produces and exports huge quantities. It has now emerged as the major supplier of polyolefins in Southeast Asia, with a total export of 4.5 mln metric tpa in 2011. China is a lucrative market for polyolefin exporters in Thailand, Singapore and Malaysia. As China is expected to remain a net importer for the next five years, Thailand and Singapore can export significant additional quantities to China. Thailand has already ramped up its production capacity in the last three years, while Singapore will increase its capacity in the next five years. Malaysia can also take advantage of growing Chinese imports by increasing its production capability. Indonesia, on the other hand, needs to become self-sufficient in meeting its domestic polyolefin demand.
Thailand is the regional powerhouse in the Southeast Asian polyolefin industry, with the largest consumption and production of polyethylene and polypropylene. The growth era of the Thai polyolefin industry started in the 1980s after the discovery of large natural gas reserves in the Gulf of Thailand, which provided abundant feedstock, such as ethane and propane, for olefin production. Most of the polyolefin plants in Thailand are situated in Rayong in the eastern seaboard. The reason for the concentration of petrochemicals plants in the eastern seaboard is its proximity to sea routes, which facilitates the transportation of raw material and finished goods.
As MRC wrote earlier, Thailand's PTT is developing the Asia Industrial Estate in Rayong, which will become its base for bioplastic production, as well as that of its partners. The conglomerate is preparing the area and constructing the utilities, buildings, joint labs and water-treatment system, all for the planned investment of PTTMCC Biochem at the location. The estate is expected to be up and running in the middle of next year.
The Thai polyolefin industry is in an advantageous position, not only due to the availability of abundant feedstock but also to the strong demand from the domestic and Chinese markets. With a polyolefin production capacity of approximately 6 Million Metric ton per annum (MMtpa) in 2011, Thailand is poised to take advantage of the Chinese demand for polyolefins.
MRC
LLDPE plant to be started by Wuhan Petrochemical
MOSCOW (MRC) -- China’ s Wuhan Petrochemical will be starting a linear low density polyethylene (LLDPE) plant, said Apic-online.
A source in China informed that the plant is scheduled to commence commercial production in June 2013. Located in Wuhan, China, the plant has a production capacity of 300,000 mt/year.
As MRC wrote earlier, Wuhan Petrochemical is planning to start up its new naphtha cracker at Wuhan in Hubei province on 28 May.
The naphtha cracker of the company can produce 800,000 tonnes/year of ethylene. Currently, Wuhan Petrochemical has an ethylene production capacity of 200,000 tonnes/year and can process 8.5m tonnes/year of crude.
Wuhan Petrochemical Engineering Design Co., Ltd. offers engineering design, supervision, consultation, and related services for oil refinery, petrochemicals, distribution, and storage of oil and gas products. The company is based in China, its parent company is Sinopec.
MRC
Asian PET prices fell following drop in feedstock prices
Asian PET granulate prices having recovered last week resumed their downtrend again on the back of the falling feedstock prices.
PX price in China dropped by USD50/tonne, PTA prices were cut by USD27-29/tonne and spot quotations of MEG were at USD21-23/tonne lower than the week before.
The future trend of PET prices is uncertain due to the falling prices of feedstock in the market. Buyers prefer to stay on the sideline.
The sales in the spot market of China and Korea were weak compared to the same period a year earlier, said one of the Korean traders.
The price of Chinese bottle PET was heard at USD1,400-1,410/tonne, FOB China. The price of Korean bottle PET was at USD1,420-1,430/tonne, FOB Korea.
Producers were ready to make concessions to buyers, giving a discount from the voiced prices.
MRC