Technip awarded contract for the Karbala refinery in Iraq

MOSCOW (MRC) -- Technip was awarded by Oil Projects Company SCOP a significant contract for project management consultancy (PMC) services for the engineering, procurement and construction (EPC) phase of the Karbala refinery, Iraq, said the producer.

This award follows the front-end engineering design executed by Technip in 2010. The scope of work will cover two phases.

Phase 1: issue of enquiries for the EPC contract, bids clarification, evaluation and contracts finalisation with the EPC contractors.
Phase 2: overall management of the EPC contract execution.

Technip’s operating center in Milton Keynes, United Kingdom will execute phase 1 of the project, which is scheduled to be completed in the second semester of 2013. Riccardo Moizo, Technip’s Senior Vice President for PMC, stated: "We are delighted to have been awarded this project by SCOP and to participate in developing and enhancing Iraq’s refinery capabilities. This is a significant contract for Technip’s newly created PMC business unit and we believe it will open up opportunities in the near future."

As per MRC, ZapSibNeftekhim LLC, an affiliate of JSC Sibur Holding, awarded two front-end engineering and design (FEED) contracts to Technip for polyethylene plants located in Tobolsk, in the Tyumen region of Russia.
The first contract concerns a linear-low/high-density gas phase polyethylene plant.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC

MOSCOW (MRC) -- The shutdown of Synthos' three Czech plants will not affect shipments of expandable polystyrene (EPS) to Ukrainian customers, said MRC analysts.

As MRC reported earlier, the Polish chemical producer Synthos stopped operations at its three plants in the Czech Republic due to the risk of flooding of the pump station at the river Vltava.

In 2012, Synthos was among the three largest suppliers of EPS to the Ukrainian market. Despite the scale of the disaster in Central Europe, EPS shipments to the Ukrainian market will not be affected in June 2013. The plants are located in the Polish Oswiecim, whose territory was not exposed to the negative effects of the disaster.

Since the beginning of the year, supplies of Synthos' EPS were reduced because of the general passivity of the Ukrainian market in January-April 2013. However, Ukrainian consumers bacame active in May and resumed purchases of Polish EPS, to which favorable prices of the producer contributed a great deal. Market participants expect to receive prices for June shipments June this week.

Synthos SA is one of the largest producers of chemicals in Poland. It is also the Europe's largest producer of emulsion rubber and the third largest manufacturer of expandable polystyrene.
MRC

MOSCOW (MRC) -- BASF is implementing its global strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability, said the company.

To achieve sales of EUR25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy "grow smartly" outlines investments of EUR10 billion, around 9,000 new jobs, and annual savings of EUR1 billion. Around 25% of BASF’s global R&D will be conducted in Asia Pacific by 2020, to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life.

"In the next decade, Asia Pacific will face huge challenges while remaining the fastest growing market for the chemical industry. With our Asia Pacific strategy, we are positioning BASF as the leading provider of sustainable solutions for the Asia Pacific region," said Dr. Martin Brudermuller, Vice Chairman of the Board of Executive Directors of BASF SE, responsible for Asia Pacific. "Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region."

BASF estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at 6.2%, well above the world average of 4.0%. According to its strategy, BASF intends to grow profitably at least two percentage points above regional chemical production to achieve sales of EUR25 billion in Asia Pacific by 2020.

As MRC wrote earlier, Toyo Engineering has reached a comprehensive engineering partnership agreement with BASF for the Asia-Pacific region. The three-year agreement covers basic engineering, detailed engineering, procurement, construction management, and other project-related services in the region's petrochemical and chemical sectors.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. BASF had sales of EUR72.1 billion in 2012 and more than 110,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Borealis, a a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, inaugurated a new catalyst plant at their Linz location on June 3, 2013, said Borealis.

The company has invested EUR100 million in the construction of this facility which will produce chemical substances – so-called catalysts – utilising the proprietary Borealis Sirius catalyst technology. Catalysts enable a precise alignment of plastics properties with varying demands and requirements and help determine, among other things, the hardness, plasticity and/or elasticity of end products.

The start-up of the plant will create 35 new jobs at the Linz location and strengthen Borealis' position along the entire plastics value chain: from research and development into and production of own catalysts, to application-oriented development of innovative end products in close co-operation with Borealis customers. Furthermore, the patented Borealis Sirius catalyst technology enhances the profitability and sustainability of the company in the plastics manufacturing sector.

The opening of the new catalyst plant in Linz is a central pillar of the growth strategy within the Borealis polyolefins business segment. Since 2007, the company has already invested EUR 50 million in the development of its Innovation Headquarters in Linz, inaugurated in 2009. The construction of the catalyst plant involves an additional investment of EUR 100 million. Upon commencement of full operations at the plant, 35 new employees will join the existing 1,250 currently employed in Linz.

As MRC wrote earlier, Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals, announced that it has acquired DEXPlastomers VOF in Geleen, The Netherlands, from DSM Nederland BV and ExxonMobil Benelux Holdings BV.

Borealis AG is Europe's second largest producer of polyethylene (PE) and polypropylene (PP) and is headquartered in Vienna, Austria.
MRC

MOSCOW (MRC) -- In June, European producers are going to achieve a major rise in polyethylene (PE) and polypropylene (PP) prices for the CIS countries, despite a slight increase in contract prices of monomers, according to ICIS-MRC Price report.

Contract ethylene and propylene prices in Europe for June were agreed by EUR5 and EUR15/tonne higher from May, respectively. However, European producers have announced an increase of EUR30-110/tonne from early May for export PE and PP prices for the CIS markets for June shipments.

This week, negotiations on European polyolefins prices for the CIS countries for June have begun. European producers are going to achieve a serious increase in prices this month after the May drop by EUR70-100/tonne. On Monday, some European producers announced price rises by EUR40-110/tonne for PE and EUR30-50/tonne for PP from early May, depending on the polymer grade. European manufacturers justify such high price increases by the need to improve margins and limited supply of polymers.

Prices for June high density polyethylene (HDPE) shipments were heard in the range of EUR1,140-1,210/tonne FCA this week, up by EUR60-110/tonne from early May. Prices for linear low density polyethylene (LLDPE) were heard by EUR40-70/tonne higher than at the beginning of May and were in the range of EUR1,190-1,240 per tonne FCA for LLDPE C 4.

European producers are going to raise PP prices less considerably. Prices of homopolymers of propylene (homopolymer PP) for June shipments are heard in the range of EUR1,160-1,220/tonne, FCA, up by EUR30-50/tonne from early May.

Many companies have been slow to contract European polyolefins. The announced price increase was caused by the limited supply and the desire of European producers to improve their margins, but it is not supported by the feedstock factor (oil prices). They expect that European producers will be forced to lower their prices in the second half of the month amid serious decline in demand.
MRC