Qatar Muntajat takes over Lotrene polyethylene marketing

MOSCOW (MRC) -- Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) has taken over the marketing and distribution responsibilities for Qatar’s globally recognised Lotrene brand of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), as per the company's press release.

Muntajat has the mandate to export Qatar’s 10 million tonnes/year of chemicals and petrochemicals to markets worldwide. In Qatar, LDPE and LLDPE are produced by Qatar Petrochemical Company (Qapco) and Qatofin respectively, and these high-quality products are being sold to more than 4,500 customers worldwide under the brand name Lotrene.

Muntajat has assumed the commercial and export responsibilities for Qapco’s LDPE and Qatofin’s LLDPE products, making it the representative of the Lotrene brand.

This marks the company’s entry to the polymers sector, Muntajat’s third area of operations after the "successful transition" earlier this year of the marketing and distribution activities of the chemicals and fertilisers produced in Qatar.

We remind that, as MRC informed previously, in June 2013, Qatar Petroleum and Qatar Petrochemical Company signed technology licence contracts for the multibillion dollar Al Sejeel petrochemical complex with Univation Technologies for the polyethylene technology and Dow Chemical Company for polypropylene technology. The Al Sejeel project is part of Qatar’s large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the country has announced that it will raise its petrochemical output to 23mn tpy by 2020. The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline.

Qatar Petrochemical Company (QAPCO) is a Qatar-based company established in 1974 and is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%). The company is currently one of the largest producers of low density polyethylene (LDPE) in the region. In addition to LDPE, QAPCO also produces linear low density polyethylene (LLDPE), ethylene, and sulfur, which it sells to over 4500 industry customers in 145 countries through its extensive global marketing network.
MRC

MOSCOW (MRC) - Russian producers of high-density polyethylene (HDPE) have managed to cut import volumes after a record high external supplies last year. HDPE imports in the first half of the year fell by 12% to just more than 155,000 tonnes, according MRC DataScope.

HDPE imports surge in 2012 resulted from the long time outage of Stavrolen (group Lukoil), the second-largest producer of polyethylene in Russia.
This year, the Russian producers due to careful pricing and expansion of assortment have managed to reduce imports. The main fall in imports accounted for homopolymer PP. Over the first half the year, the imports of HDPE to the domestic market were cut by 48% to 25,800 tonnes.
External supply of film HDPE in June fell to 2,700 tonnes.

Import of pipe HDPE in the first half of the year was about 40,000 tonnes, down by 16% compared to the same period a year ago. External supply of blow moulding HDPE fell by 17% over the same period and totalled about 17,600 tonnes.


At the same time, this year imports of injection moulding HDPE and HDPE for corrosion resistant coating for large diameter steel pipes rose by 19% and 33% and totalled 22,200 tonnes and 39,200 tonnes, respectively.

However, the situation is likely to be changed soon. As MRC wrote before, Nizhnekamskneftehim started production of a new grade HDPE for caps of PET containers (the monthly volume of imports of this PE grade average about 2,000 tonnes). Nizhnekamskneftehim together with other the pipe producers plans to develop the production of polyethylene for anti-corrosion coating of pipes.

MRC

MOSCOW (MRC) -- SABIC, the world’s biggest petrochemicals maker by market value, is studying investment opportunities in the US as the economic slowdown in Europe and China hurt its second-quarter sales, reported SaudiGasette.

SABIC’s plan for US investments comes as the economic slowdown in Europe and China ebbed demand from clients and affected earnings at the company and its affiliates.

"It is very important that SABIC is not left out from investments in the US as it is a huge market in terms of the presence of shale gas and also proximity to other markets," Chief Executive Officer Mohamed Al-Mady said in Riyadh today. "We are studying opportunities in the US to expand SABIC’s presence in the chemical and polymer businesses," he said, declining to give further details until the plans crystallize.

SABIC would be joining companies including Dow Chemical Co. and Exxon Mobil Corp. in seeking to take advantage of the US shale boom that has helped drive down natural-gas prices. Cheap gas is doubly advantageous to chemical makers because it’s used as a raw material and to power factories.

As MRC wrote previously, SABIC plans to cut about 1,050 positions and close some assets in Europe as the company responds to diminished demand. The job cuts will take place across Europe, a third of which will be contracting staff and two- thirds Sabic employees.

SABIC Americas, the company’s unit, provides chemicals and fertilizer products to industries in the US, Canada, Mexico, Central America, South America and the Caribbean, according to the company’s website. It also operates a research and technology center in Houston, Texas.

Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers. SABIC recorded a net profit of SR 24.72 billion (USUSD 6.59 billion) in 2012, down 15,5% year-on-year. Sales revenues for 2012 totalled SR 189 billion (USUSD 50.40 billion). Total assets stood at SR 338 billion (USUSD 90.13 billion) at the end of 2012. SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific.
MRC

MOSCOW (MRC) -- Clariant, a leading specialty chemical company, has announced that it signed a distribution agreement with Connell Brothers, the largest marketer and distributor of specialty chemicals and industrial ingredients in Asia Pacific, to market and distribute ingredients from Clariant’s Business Unit (BU) Additives to all states in Australia, according to the company's press release.

The agreement was effective as of May 1, 2013.

Darren Soo, Head of Sales, ASEAN, BU Additives Clariant said, "We believe that Connell Brothers will be able to offer the highest level of professionalism and an exceptional level of service. Their capabilities and full market coverage will enhance and further develop this important sector of the Clariant business."

As MRC reported earlier, in June 2013, Clariant introduced AddWorks, its new brand for polymer additives solutions. It consists of: AddWorks, application oriented solutions specifically designed by segments of the plastics industry
AddWorks LXR, a new range of polymer additives designed to provide particular effects in a wide variety of applications. AddWorks are developed by matching the needs of companies engineering technologies for polymerization, polymer producers, compounders, and even converters.

Clariant’s Business Unit Additives is a major supplier of products for functional effects in plastics, coatings and printing inks. Its non-halogenated flame retardants provide environmentally compatible protection for buildings, electric and electronic equipment as well as textiles and other materials used in airplanes, trains, buses and ships. Clariant’s high quality waxes are used in protective coatings, plastics, polishes and in a range of highly specialized applications like hot melts. It also produces polymer additives such as antioxidants, processing/ light stabilizers, and antistatic agents to give plastics flexibility and durability, or to improve the heat, light and weather resistance of coatings.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Petrobras, Brazilian state-run energy giant, has announced that its Board of Directors approved the restructuring of its petrochemical portfolio and the subsequent merger of its wholly-owned subsidiaries Comperj Participacoes, Comperj Estirenicos, Comperj MEG. and Comperj Poliolefinas, reported the company on its site.

The referred transactions will be submitted to a vote by shareholders in a Special Shareholders Meeting to be convened in due time.

The merger of Petrobras' affiliates is primarily designed to streamline the company’s corporate structure and restructure its petrochemical portfolio, since the transaction will lead to the consolidation of the petrochemical assets held by Petrobra and invested in Comperj Participacoes, Comperj Estirenicos, Comperj MEG and Comperj Poliolefinas, resulting in lower management costs, improved streamlining and alignment of business decisions, rationalization of the company’s activities and the simplification of procedures that reallocate investment resources.

Since it involves the merger of its wholly-owned subsidiaries, Petrobras’ capital will not increase and no new shares will be issued.

We remind that, as MRC wrote earlier, Brazilian environmental regulators will join Petrobras in appealing an injunction that halted work on a major USD8 billion Comperj refinery project in Rio de Janeiro state. The suspension stems from a case brought by federal prosecutors in 2008 that regulators thought had been resolved in 2009. The Comperj refinery will have installed capacity to process 165,000 barrels of crude oil per day when it enters operation in April 2015. A second phase, expected to be completed by 2018, would double capacity.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC