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MOSCOW (MRC) -- Mitsui Chemicals, Idemitsu Kosan, Kuwait Petroleum International, and Petro Vietnam have announced the final decision to invest a total USD9 billion in their refinery and petrochemical complex construction project at Nghi Son economic zone, Thanh Hoa Province, Vietnam, according to Mitsui Chemicals' press release.
Following this decision, Nghi Son Refinery & Petrochemical Limited Liability Company, the project's joint venture company, concluded a financing agreement with a public financial institution and private banks in a total of USD5 billion.
The financing agreement consists of approximately USD2.3 billion from the Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea and approximately USD2.7 billion in loans from domestic and overseas private banks which are insured or guaranteed by Nippon Export and Investment Insurance (NEXI) and foreign export credit agencies.
It is noted that the project has received a USD1.65 billion loan from JBIC and a USD1.3 billion overseas investment insurance coverage by NEXI.
This final decision on project investment and financing agreements will allow construction to start in July. Construction is scheduled for completion in 2016 and commercial operation is targeted for 2017.
This project, which has at its base the stable supply of crude oil from Kuwait, will capture rapidly growing demand for petroleum products in Vietnam while also responding to forecasted expanding aromatic (paraxylene and benezene) markets and export sales of polypropylene products. The large-scaled project is expected to yield high returns.
In addition to securing a stable source for aromatics, which are raw materials of phenols and PTA, under competitive conditions thereby strengthening Mitsui Chemicals' business operations, the company will also provide licenses for polypropylene production.
As reported previously, Vietnam is likely to become the world's third biggest rubber producer in the future, thus, surpassing Malaysia, according to a recent report by the Association of Natural Rubber Producing Countries. The association estimated that Vietnam would produce 955,000 tonnes of natural rubber this year, up 17% year-on-year.
MRC
Final Decision was made on investment for Nghi Son refinery and petrochemical complex in Vietnam
May PET imports to Russia fell by half
MOSCOW (MRC) -- In May, PET imports to the Russian domestic market dropped by more than half from April 2013 to about 11,000 tonnes, according to MRC DataScope.
Imports of Chinese PET decreased by 63% from April and reached 4,800 tonnes. Korean material accounted for a significant decrease in total PET imports. South Korea's imports to Russia fell by 34% to 4,400 tonnes.
Major converters raise purchases of domestic grades during the season, which leads to an increased demand for Russian PET, a source said. Meanwhile, direct contracts with major Asian producers make market players buy certain volumes of material, he added. He said purchases of granulate in Asia were not reduced, however the decrease in May imports will be offset by the June deliveries.
Overall, in January-May 2013, imports of PET to Russia fell by almost 7% year on year and totalled 75,700 tonnes. This year, Russian producers have continued the policy of import substitution. The capacity expansion at Polief plant (Bashkiria), scheduled for the second half of 2013, will accelerate the replacement of imported material.
MRC
Prices of DOP plasticizer in Russia have dropped further by late June
As previously reported, in the second half of June, Russian DOP prices began to decline gradually after having reached Rb78,000-79,500/tonne, CPT Moscow, including VAT, on the back of seasonal demand and scheduled maintenance (from 20 April for 30 days) at Gazprom neftekhim Salavat, the key DOP supplier to the Russian market.
After the resumption of operations at the plant, the output of alcohols and DOP was stopped again due to a failure at the production. However, the market responded sluggishly to the accident in Salavat, spot DPO prices in early June rose to Rb78,000-80,000/tonne, CPT Moscow, including VAT.
But already by mid-June, spot DOP prices in Russia had begun to gradually decline. And the resumption of plasticizer production at Gazprom neftekhim Salavat only led to a further slight drop in prices. DOP prices went down to Rb78,000-79,000/tonne, CPT Moscow, including VAT.
Some market participants do not rule out that there may be further reductions of Russian DOP prices in July under pressure of the increased supply from Bashkir plant.
MRC
Russian EPS prices to grow in July following rising quotations in Asia
Asian EPS producers raised their price offers by an average of USD50/tonne this week, resulting in the cost of the polymer in the ports of St Petersburg and Novorossiysk to be in the range of USD2,000-2,040/tonne CIF.
The main reason for such a significant growth was an increase in prices of styrene monomer (SM) in Asia to USD1,740-1,750/tonne FOB Korea from USD1,680-1,700/tonne. However, some Asian market participants believe such prices "overheated." The difference between benzene and styrene prices is greater than USD450/tonne, while this index does not usually exceed USD300/tonne.
The devaluation of the Russian rouble against the US dollar in early June led to an increase in imported EPS prices in Russia by an average of 4%. Thus, only because of the exchange rate difference, traders have to raise their prices to Rb3,000/tonne.
On the global upward trend, Russian producers also announced their intention to increase prices for July shipments. However, the final level of price rises has not been determined yet. Preliminary information regarding Russian EPS prices are expected next week.
MRC
QAPCO signs UNIPOL PP technology license for polypropylene facility
MOSCOW (MRC) -- Qatar Petrochemical Company (QAPCO), has signed a license agreement with Union Carbide Chemicals & Plastics Technology LLC, a wholly owned Subsidiary of The Dow Chemical Company, for UNIPOL polypropylene process technology, said Businesswire.
"We are excited about the economic contribution we will make in Qatar with this first PP facility in the country. UNIPOL PP technology will give us the ability provide our customers with high quality PP products."
The 540 KTA polypropylene (PP) production facility will be located in Ras Laffan, Qatar, and will produce homopolymers, random copolymers and impact copolymers from a mixed feed cracker.
"The Middle East is in a growth period, and with UNIPOL PP Process Technology, QP/QAPCO will have the benefits of low investment and operating cost, the broadest product capability and leading product performance," said Tracy Cleckler, president of Union Carbide Chemicals & Plastics Technology LLC. "QP/QAPCO’s customers will also be able to produce polypropylene products that are lighter, clearer and cleaner to meet growing demand for high-quality polypropylene products."
The QP/QAPCO facility will be the first polypropylene plant in Qatar. UNIPOL PP Process Technology positions polypropylene manufacturers to meet and exceed increasing demand for high quality polypropylene.
Polypropylene is a very versatile plastic used in packaging, durable goods, automotive parts, non-wovens, fibers and consumer applications. Resins produced by UNIPOL Polypropylene Technology from Dow account for 17% of global polypropylene output.
There are currently 48 operating lines worldwide and 15 reactor lines under design and construction using UNIPOL Polypropylene Technology from Dow Polypropylene Licensing and Catalysts. The Polypropylene Process is an all gas-phase process for producing the broadest range of polypropylene resins. As MRC wrote before, Shanghai- Oriental Energy in March 2013 signed a license agreement with Dow for the use of UNIPOL PP process technology for a plant to be built in Zhangjiagang in Chinese Jiangsu Province.
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC