Rosneft, Mitsui plan Russia Far East olefins project

MOSCOW (MRC) -- Rosneft and Mitsui have signed an agreement to jointly develop the massive Far East Petrochemical Company (FEPCO) project, said Hydrocarbonprocessing.

The deal was signed by Rosneft president Igor Sechin and by Shintaro Ambe, representative director of Mitsui & Co., in the presence of the Russian President Vladimir Putin and Prime Minister of Japan Shinzo Abe.

FEPCO, a subsidiary of Rosneft, is developing the project. Processing capacity of the petrochemical complex is planned at 3.4 million tpy of hydrocarbon feedstock, predominantly naphtha. The capacity of ethylene and propylene production unit is planned at 2 million tpy.

The complex is expected to be started up in 2017. As part of the agreement, the parties said they plan to cooperate in engineering design in accordance with international best practices. Following the results of this cooperation, the final investment decision on FEPCO construction will be made.

"We are glad to join efforts with one of the leading Japanese companies to develop the largest petrochemical complex in the Far East," said Sechin.

"Implementation of the project in cooperation with Mitsui will enable us to optimize the petrochemical complex and use the best global practices of constructing plants of similar scale. Successful implementation of the project will facilitate development of technology intensive production and establishment of a production cluster in the Far East".
MRC

Union workers threaten to strike over safety issues at Exxon Baytown refinery

MOSCOW (MRC) -- Union workers at Exxon Mobil Corp.'s refinery in Baytown, Texas, are threatening to strike over safety concerns, said Hydrocarbonprocessing.

About 850 union employees could halt work on June 15 at the 584,000-bpd refinery -- the second-largest in the US -- unless Exxon management agrees to contract language that the union says would improve health and safety at the sprawling fuels and chemical plant.

The USW has raised concerns about safety at the plant since June 2011, after a worker suffered burns on 25% of his body because of a problem with a steam vent valve.

The union said it proposed health and safety language from the 2012 National Oil Bargaining agreement but Exxon management refused to accept it in its final offer given April 15. The two sides will meet again on May 3, with a strike and management lockout planned if no agreement is reached, the union said in a statement.

"We're confident that an agreement can be reached with ExxonMobil and a strike averted," said Richard Landry, a spokesman for the USW local at Baytown.

The union said the safety language it is seeking is already in place at Exxon's refineries in Torrance, Calif.; Billings, Mont.; Chalmette, La.; and Beaumont, Texas.

Exxon has experienced a number of safety problems with its operations recently, including a major oil spill from a segment of its Pegasus pipeline in Arkansas and an April 17 fire at its 344,000-bpd Beaumont complex that injured 12 contract workers, three of them critically burned.

MRC

Azerbaijan plans new polypropylene plant

MOSCOW (MRC) -- The State Oil Company of Azerbaijan (SOCAR) is planning to produce polypropylene at a new plant to be set up at SOCAR sub-company Azerikimya Production Union, said Fibre2fashion.

Funds raised in 2013 through Eurobonds by the company will be utilized for the construction of this plant along with other projects of the company, stated Suleyman Gasimov, the SOCAR Vice President of Economic issues, abc.az reported.

Mr. Gasimov said that out of USD1 billion borrowed by the company, USD400 million is assigned for various expansion projects, including the polypropylene production plant at Azerkimya.

Polypropylene, a petrochemical by-product, is widely used in the textile industry as a raw material for making acrylic staple fibre, used in making blended fabrics.

SOCAR also plans to develop tanker export of liquid propylene, started in 2012.

In addition to exploring oil and gas fields, SOCAR produces, processes, and transports oil, gas, and gas condensate; markets petroleum and petrochemical products in domestic and international markets; and supplies natural gas to industry in Azerbaijan.

It has three production divisions, two oil refineries and one gas processing plant, an oil tanker fleet, a deep water platform fabrication yard, two trusts, one institution, and 22 subdivisions.

Moreover, the company has also entered into joint ventures in Georgia and Turkey.
MRC

Shell extinguishes fire after 'tube burst' at Pernis refinery in Netherlands

MOSCOW (MRC) -- Royal Dutch Shell, Europe's biggest energy company, has put out a fire caused by a "tube burst" at its Netherlands refinery, according to Hydrocarbonprocessing with reference to the company's statement.

Shell said in a statement that the fire had a limited effect on operations at its 400,000 bpd Pernis refinery, one of the company's largest.

"The Shell fire brigade and the combined fire brigade are on the spot for assistance" Shell said in a statement.

"At 0521 end of alarm was raised and the affected area has been released as much as possible."

Royal Dutch Shell plc 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 vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. The present Shell’s strategy is to concentrate its global downstream businesses where it can be most competitive. Recent examples include the sale of refineries in the UK and Germany and downstream businesses in Finland and Sweden, as well as the establishment of joint ventures in Brazil and across Africa.
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Westlake Chemical 1Q net profit rose 40% on lower costs, revenue down

MOSCOW (MRC) -- Westlake Chemical Corp.'s first-quarter earnings rose 40% as lower costs mitigated an ongoing decline in revenue, reported The Wall Street Journal.

Westlake makes basic chemicals, vinyls, polymers and fabricated PVC products. The company's revenue declined over the past year on lower sales volumes for polyethylene and styrene. But Westlake's profit has benefited from lower ethane-based ethylene production costs, thanks in part to increased North American shale gas production.

In early May, Westlake paid USD175 million to acquire CertainTeed Corp.'s pipe and foundation group, which produces PVC pipe and fittings for municipal, water well, mining, agriculture and irrigation applications. CertainTeed is a unit of the French construction materials group Compagnie de Saint-Gobain SA.

Westlake reported a profit of USD123.3 million, or USD1.84 a share, up from USD87.8 million, or USD1.31 a share, a year earlier.

The company's revenue dropped 16% to USD864.6 million, reflecting lower feedstock, ethylene and ethylene co-product sales volumes and lower sales prices for polyethylene and PVC resin.

Analysts polled by Thomson Reuters had most recently forecast earnings of USD1.25 a share on revenue of USD870 million.

Gross margin improved to 26.3% from 16.7%, thanks in part to a 26% drop in input costs.

Sales of olefins fell 20% to USD582.8 million while sales of vinyls decreased 6.9% to USD281.8 million.

Westlake Chemical is a vertically integrated manufacturer and marketer of basic chemicals, vinyls (PVC), polymers (PE) and fabricated products.
MRC