Formosa Plastics to shut PVC plant for maintenance

MOSCOW (MRC) -- Formosa Plastics Corp (FPC) is in plans to shut a polyvinyl chloride (PVC) plant for maintenance turnaround, according to Apic-Online.

A Polymerupdate source in Taiwan informed that the plant is likely to be shut in September 2013. The plant is expected to remain off-stream for around two weeks.

Located in Mailiao, Taiwan, the plant has a production capacity of around 500,000 mt/year.

As MRC informed previously, Formosa Petrochemical is in plans to shut two crude units for maintenance at its Mailiao refinery. A source in Taiwan informed that an 80,000 bpd vacuum distillation unit (VDU) and 84,000 bpd residual fluid catalytic cracking unit (RFCC) are planned to be taken off-stream. The units are likely to be shut in October 2013. They are expected to remain off-stream for around three weeks.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
MRC

Petrobras net income in H1 2013 increased by 77%

MOSCOW (MRC) -- Petrobras, Brazil's state-controlled oil company, posts financial results for the first half of 2013. The company's net income increased by 77% over the previous six-month period, due to the higher operating result, and the lower impact of exchange rates on the financial result, according to the company's statement.

The 23% operating income upturn was chiefly due to higher diesel and gasoline prices, increased oil product output, lower write-offs of dry and economically unviable wells and divestments.

Total oil and natural gas production averaged 2,553 million bpd in the first half of 2013, 3% less than in the previous six-month period, associated with natural decline (10-12% p.a.) and the concentration of scheduled stoppages in the first half of 2013.

Domestic oil product output increased by 8% in the first six months of 2013, as refineries improved their operating performance and were therefore able to meet the 6% increase in domestic demand, leading to a 19% in oil product imports.

Extension of hedge accounting to protect future exports, in mid-May, allowing exchange rate losses of RUSD7,982 billion related to approximately 70% of net debt exposed to exchange rate fluctuations to be recorded in Shareholders’ Equity.

Total net funding of USD15,1 billion in the second quarter of 2013, led by the USD11 billion global notes issued in May.

Investments totaled RUSD44,113 billion, 54% of which in Exploration and Production activities.

As MRC reported earlier, Petrobras plans to launch the first of its new refineries in November 2014. The second line will be put in operation in May 2015. The refinery will add 230,000 bpd of processing 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. Moody's changed the outlook for Petrobras to "negative" from "stable," citing rising debt levels and growing uncertainty over how quickly the oil company can bring new production onstream.
MRC

Motiva to run reduced rates at Port Arthur refinery after fire in sulfur unit

MOSCOW (MRC) -- Motiva Enterprises refinery in Port Arthur, Texas, is running four hydrotreaters and three lube units at reduced rates during the repair of a sulfur recovery unit, Bloomberg News reported, citing a person familiar with operations, said Hydrocarbonprocessing.

According to the report, there was a fire at the unit's reactor on August 12, 2013. The sulfur unit may be shut as long as two more weeks.

Kim Windon, a Houston based spokeswoman for Motiva, confirmed that there was a small fire in a unit that was quickly extinguished. She declined to comment on repairs to the unit.

This is the latest in a series of setbacks at the refinery where the newest crude unit is expected to run up to 75,000 bpd below capacity due to a piping problem.

The 325,000 bpd crude unit called VPS-5 was beset by vibration problems when Motiva attempted to run it at or near its full capacity, as Reuters exclusively reported on Friday.

The first attempt to start the unit, at the end of a 5-year, USD10 billion expansion of the plant, was hampered by a chemical leak in June 2012.

The unit has been running at reduced rates ranging between 250,000 bpd and 285,000 bpd since it began production early this year.

Motiva’s Port Arthur refinery is the largest in the nation, with capacity to process 600,000 bpd of crude oil. Motiva is a joint venture of Royal Dutch Shell and Saudi Aramco.

MRC

Egypt freezes talks on importing LNG from Qatar amid political turmoil

MOSCOW (MRC) -- Cash-strapped Egypt has frozen talks to import liquefied natural gas from wealthy Qatar due to the political instability and violence that erupted after the army swept the streets of the supporters of ousted President Mohammed Morsi last week, said Hydrocarbonprocessing.

"The talks are frozen with Qatar and we are not in a position to initiate talks with any other country," he said without specifying when the discussion with the Persian Gulf emirate will be resumed.

Gas-rich Qatar already promised Egypt in June five free shipments of LNG, equivalent to 16 billion cubic feet, to compensate the foreign partners that have already supplied extra domestically produced gas to the North African country to avoid wider power cuts during the summer months.

The first cargo from the April gas-swap deal was scheduled to be shipped in May, but a disagreement over the price Egypt would pay for the gas held up the agreement.

Oil and gas producers in Egypt have curbed local production due to political unrest, but demand for energy has continued to grow, resulting in rolling blackouts throughout the country that have deepened public discontent.

In response the Egyptian government last year started looking for deals to buy LNG and issued a tender to build an import terminal that would start to operate in May this year. However, those plans were cancelled, due to political and technical issues.

An Egyptian official familiar with the matter who asked not to be named said that the Egyptian government decided to give up on the Qatari LNG deal because the Gulf state supported the Morsi administration.

Qatari officials were not immediately available for comment. The Gulf state's foreign minister told reporters in Paris Sunday that his country had never given aid to Egypt's Muslim Brotherhood and that all support went to Egypt as a whole and "still continues till date."

Egypt has faced a natural gas and diesel shortage since last year, which has pushed up food costs, seen long lines at filling stations and electricity blackouts. The energy-supply problems have deepened popular discontent with Egypt's former ruling Islamist government and exacerbated broader economic difficulties there.

The country is also struggling to complete oil-supply agreements with Iraq and Libya aimed at easing diesel shortages. It has been unable to provide acceptable bank guarantees that would facilitate the flow of oil, people familiar with the talks have previously said.

As MRC wrote before, in a move to preserve its public interest, Egypt has lifted anti-dumping fees on polypropylene (PP) imports from Saudi Arabia after a prior investigation of the matter. The investigation on protective measures and anti-dumping fees imposed on Saudi imports due to claims that they are damaging its industry has been conducting by Egyptl. The results of the investigation showed that the damage was caused by other factors and that the measures against Saudi imports were not in interest of the Egyptian public.

MRC

Eastman increases plasticizer prices on 1 September 2013

MOSCOW (MRC) -- Eastman Chemical Company is increasing prices on the following products starting from 1 September, or as contracts allow, reported the company on its site.

These increases are due to elevated operating costs, particularly in raw materials, as follows:

- Eastman 168 non-phthalate; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOP; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOA; all packaging and grades : Off-list price increase of USD 0.03/lb (USD 0.07/kg) in North America;
- Eastman TOTM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TOTM-CA; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TEG-EH; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America.

As MRC informed previously, Eastman Chemical Co.'s first-quarter earnings rose 56% as the chemical and materials manufacturer was helped by a last year's acquisition of its peer specialty-chemicals firm Solutia Inc.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
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