Pertamina to unite with PTT in petrochemical deal

MOSCOW (MRC) -- Indonesian state-owned energy company Pertamina has signed an agreement to purchase petrochemical products from Thailand’s PTT Global Chemical, according to GV.

The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia, the Jakarta-based company said in a statement.

Pertamina and PTT already have a joint venture agreement to build a petrochemical facility with an annual production capacity of 1 million tonnes. The output from the facility will comprise of ethylene and polypropylene as well as polyethylene and polyvinyl chloride. There are no details on the facility itself.

The delivery of petrochemical products will commence when Pertamina and PTT officially establish the joint venture, which is scheduled for this year. Taryono, senior vice president of non-fuel distribution at Pertamina, said the pre-marketing strategy is a sign of Pertamina’s commitment to the domestic petrochemical market while also tapping into international opportunities. Construction of the facility is expected to start next year, with production beginning in 2018. Pertamina said it would control at least 51 percent of the joint venture, requiring an investment of up to USD5 billion.

Pertamina has said it planned to make petrochemicals a key part of its business as it strives to become a regional leader by 2025. Pertamina holds a 10 percent share of the domestic petrochemical market, which due to low refinery capacity relies on around USD5 billion a year in imports. Pertamina expects to hold 30 percent of the market when the facility, expected to be built near one of its existing refineries, begins operating.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- ExxonMobil is in talks about farming into a deep-water block in the Black Sea operated by Turkish state player TPAO, according to Upstreamonline.

The US supermajor "wants to be in the Black Sea" with TPAO, acting president and chief executive Besim Sisman told Reuters.

The block which ExxonMobil is reportedly looking at is on the Romanian and Ukrainian side of the Black Sea, the report continued.

ExxonMobil reported interest in the block will come as no surprise, given its partnerships in the region with Russia’s Rosneft and also in Iraq and Kurdistan.

TPAO has made no secret of the fact it is looking for a farm-in partner for its Black Sea acreage, information on its website concerning blocks 3534, 3920, 3921 and 3922 all but amounting to a sales pitch.

"TPAO is open-minded to keep business prospects warm for exploration activities in ultra-deepwater licence area".

"Any company which wants to make an investment in the Black Sea Offshore licence area is welcome to be a partner."
MRC

MOSCOW (MRC) -- New linear low density polyethylene (LLDPE) polymer modifiers that allow halogen-free polyolefin compounds to efficiently replace PVC in flame retardant wire and cable solutions has been intoduced as POLYBOND by Addivant USA, LLC, reported Plastemart.

The replacement of PVC in wire and cable insulation and jacketing is driven by regulatory changes and consumers' increased desire for sustainable solutions. This has developed an increased demand for halogen free polyolefin compounds for use in a growing number of wire and cable markets, such as transportation, electrical and electronic, building and construction and appliance applications.

Currently, polyolefins are the most widely used polymers in the world, primarily due to their ease of processing, balance of mechanical properties versus cost and, with respect to the wire & cable market, good electrical properties. However, a major drawback with the use of polyolefins is that they are not inherently flame retardant like PVC.

Traditional formulations to make polyolefins flame retardant used halogenated flame retardants, which produce heavy smoke and give off toxic, corrosive gasses during combustion.

To meet this demand, Addivant has introduced an innovative new portfolio of linear low density polyethylene based POLYBOND polymer modifiers. When used in conjunction with halogen-free flame retardants such as aluminum tri hydroxide (ATH) or magnesium hydroxide (Mg(OH)2), these polymer modifiers increase the flame retardant characteristics of polyolefins while providing the physical properties required in end use applications.

POLYBOND 3149 is a general purpose LLDPE, while POLYBOND 3249 and POLYBOND 3349 are technologically suited to applications requiring higher elongation values with reduced gel formation during mixing.

The new LLDPE based polymer modifiers complement existing Addivant POLYBOND polypropylene and high density polyethylene polymer modifiers, as well as the wide-ranging Addivant portfolio of wire and cable products, which include antioxidants, UV stabilizers, metal deactivators and customized, non-dusting blends of various additives. Global expert level technical support and R&D facilities allow Addivant to work with their wire and cable customers to customize solutions that best meet their specific market needs.

We remind that, as MRC wrote previously, last autumn FRX Polymers and Americhem Inc. announced that they had entered into a multi-year exclusive distribution agreement covering Western Europe and Turkey for FRX’s new non-halogen flame retardant polymer known as FRX 100 retardant plastic.

Addivant, the former Antioxidant and UV Stabilizer Solutions business of Chemtura Corporation, is the world’s largest producer of liquid phosphites, specialty antioxidants and materials in non-dust forms. The company is also known for its wide portfolio of specialty additives including light stabilizers, polymer modifiers, polymerization inhibitors and intermediates. With 11 plants on five continents as well as research, manufacturing and sales facilities around the globe, Addivant maintains global headquarters in Connecticut, USA, and regional headquarters in: Al Jubail, Saudi Arabia; Basel, Switzerland and Shanghai, China.
MRC

MOSCOW (MRC) -- Shell has lifted a force majeure measure on liquefied natural gas exports from Bonny Island which was in place for almost a month, said Upstreamonline.

The force majeure measure was lifted on Monday, the Anglo-Dutch supermajor's Nigerian joint venture Shell Petroleum Development Company (SPDC) confirmed on Tuesday.

The measure was imposed at Nigeria LNG on 15 May after Shell halted its supplies to the Bonny Island facility over a reported leak.

SPDC said on Tuesday that the subsequent investigation had found the leak to have been caused by sabotage. "Some 240,000 barrels of oil equivalent per day...was deferred over the shut-in period. SPDC has now repaired the line and resumed gas production."

SPDC said at the time of the stoppage that it was stopping gas supplies to the 22 million tonne-a-year terminal because of a leak along the Eastern Gas Gathering System near Awoba in Rivers State.

Around 1.5 billion standard cubic feet of gas per day has been shut in as a result of the stoppage.

Shell said at the time it was still able to export between 100 million and 200 million standard cubic feet per day from Soku via the GTS1 line to Nigeria LNG for a limited time.

The force majeure came barely a month after the last such move halting supplies to the plant was lifted on 18 April after a hiatus of more than two months.

On 5 February, a force majeure was activated after a leak on a major gas trunkline that was later repaired.

MRC

MOSCOW (MRC) -- INEOS has today announced its intention to close production of Expandable Polystyrene (EPS) at its Marl site in Germany, at the end of Q4 2013, said the producer.

Discussions will now begin with employees and the Works Council to find alternative roles for the 65 people affected by this decision.

Expandable Polystyrene is mainly used in the insulation of buildings. As the European construction sector has suffered from adverse economic conditions, demand for EPS products has reduced.

Operating costs of the EPS plant have also been affected by the recent closure of the styrene monomer and polystyrene units at Marl. The loss of the styrene monomer and polystyrene units removed a number of operating synergies at the Marl site which left the EPS unit with an unsustainable fixed cost base and a weaker styrene monomer supply position.

The decision to close the Marl EPS plant follows a full and detailed review of the EPS business, which has highlighted the need for INEOS Styrenics to optimise its production capacity across its three remaining facilities. This will improve the cost efficiency of its business, as it continues to meet its customer needs in a highly competitive European market.

INEOS Styrenics remains committed to our EPS business. Following the closure of the Marl unit, it will continue to be one of the largest producers of EPS in Europe with 350 ktpa total capacity. From the end of the year it will supply high quality EPS products from production sites in Breda (The Netherlands), Ribecourt (France) and Wingles (France).

As MRC wrote before, Ineos formed PVC joint venture with Solvay. Two of Europe’s biggest chemical companies have agreed a joint venture that will create one of the world’s largest producers of PVC plastics by revenues. Solvay, the Franco-Belgian chemicals company, will pool its European business that creates chlorvinyls – the base materials for PVC plastics – with that of privately owned rival Ineos Group , in a move that will eventually result in the Anglo-Swiss company taking full control of the joint venture.
MRC