Exxon Mobil to pay USD2.4M in fines and improvements

MOSCOW (MRC) -- Louisiana's Department of Environmental Quality says Exxon Mobil Corp. has agreed to pay nearly USD2.4 million in fines, improvements and other payments to settle violations at Baton Rouge-area plants, according to Chron.

About USD2.3 million will resolve violations from 2008 into this year at four plants, including the company's Baton Rouge refinery, Agency spokeswoman Jean Kelly said in a news release Friday. Another USD62,000 is for a release of naphtha in June 2012 at the Baton Rouge Complex, she said.

The naphtha leak prompted the federal Environmental Protection Agency inspect the plant. They found violations including corroded pipes and under-developed emergency procedures.

The settlement includes at least USD1 million for beneficial environmental projects and another USD1 million in improvements at the Baton Rouge Complex.

It must be approved by the state attorney general's office before it becomes final.

The agency and Exxon Mobil also agreed to penalties for future pollution, with different amounts for different violations - increasing with time or amount of pollution.

As MRC reported earlier, last year, Exxon Mobil announced plans to increase its petrochemical manufacturing output through the expansion of its Baton Rouge and Port Allen plants in Louisiana. A company official said that the expansion project will begin by the end of this year and is expected to be completed by 2014. The USD215 mln expansion project will take the company's capital expenditures in Louisiana to over USD1 billion in three years.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy.
MRC

Pemex fined USD50 mln for market abuse-regulator

MOSCOW (MRC) -- Mexico's state-owned oil monopoly, Pemex, must pay a USD50 million fine for forcing gas stations to transport fuel in tankers operated by its own unionized staff, reported Reuters with reference to the country's competition regulator.

The practice violates the country's competition law and has forced gasoline stations to pay an extra 1 billion pesos (USD77 million) for transport each year, said Mexico's competitiveness commission, which imposed the 653.2 million-peso fine.

Mexico's constitution gives Pemex the exclusive right to sell wholesale gasoline.

However, the company "is abusing its market power" by forcing gas stations that have already purchased the fuel to buy transport services from union workers, at a 50% to 67% markup, the commission said.

Opposition lawmakers say rules give the powerful Pemex union an unfair advantage over contracts for certain services and that this opens the door to corruption.

As MRC informed previously, Mexico's president, Enrique Pena Nieto, presented an energy reform this month aimed at luring foreign investment and boosting dwindling production at Pemex, proposing companies share in the profit rather than simply provide services for a fee.

The proposal, if approved by Congress, would be the biggest overhaul of Mexico's energy sector since the government expropriated U.S. and British oil companies in 1938, but some analysts say it may not go far enough to entice investors.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world"s second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.
MRC

The Indian petrochemicals industry will continue to surge in 2013

MOSCOW (MRC) -- The Indian petrochemicals industry will continue to surge in 2013 as the market becomes increasingly self-sufficient and domestic producers benefit from a weak rupee and a revised tariff structure, as per Pastemart with reference to a report by Business Monitor Index (BMI).

However, a poor business climate, exacerbated by chaotic government policies and land disputes, is undermining progress and could prove detrimental in the long term. The possible collapse of Haldia Petrochemicals in West Bengal, amid a dispute between the main private shareholder and the state government, underlines the problems facing the sector, in spite of the growth potential that India is beginning to realise.

BMI believes that India's demand for polymers will grow at around 10% in 2013 and 2014, spurred by the stronger consumption of polyolefins. As a result, polymer demand should rise to 9.86 mln tons in 2013 and 10.84 mln tons in 2014. Growth is slightly down on the 13% reported in 2013 due to lingering weakness in global demand as well as a more subdued economic environment.

Over the last quarter BMI has revised the following forecasts/views:
- Much of the growth in 2013 will be served by growing domestic capacities. A 50% leap in PE capacity is anticipated. Around 60% of the 1.88 mln tpa rise in polyethylene (PE) capacity will come from linear low density polyethylene (LLDPE). At the same time, polypropylene (PP) capacity is set to increase by a quarter to 4.72 mln tpa in 2013.

- India implemented an increase in duties on imports of all polymers and ethylene vinyl acetate (EVA) from 5.0% to 7.5% in May, a move that helped domestic producers but hit converters with higher costs. BMI believes that it will lead to higher domestic list prices of polymers in the domestic market as well as lower imports. At the same time, domestic producers will benefit from a lower import duty of 5% on feedstocks - such as naphtha, ethylene, EDC and VCM - in which India suffers from some under-supply. BMI does not believe that a consequent increase in domestic prices will hit demand, which remains strong due to robust demand and tight supply.

We remind that, as MRC informed earlier, The Supreme Court (SC) has not granted a stay on the stake sale process in eastern Indian biggest petrochemical company - Haldia Petrochemicals Ltd (HPL) - and set the stage for the West Bengal government to call price bids by August 31.
MRC

PPG appoints new vice president of industrial coatings Americas

MOSCOW (MRC) -- PPG Industries has announced that Kevin Braun was appointed vice president of industrial coatings, Americas, effective immediately, replacing Richard Zoulek, who has left the company, reported the company on its site.

Braun was most recently appointed vice president, global raw materials and Americas purchasing.

"Kevin is a superb leader who combines excellent product and manufacturing experience with a keen awareness of the industry and market trends," said Viktor Sekmakas, PPG executive vice president.

Braun, who joined PPG in 1991, also has served as PPG’s general manager, silica products, and general manager, architectural coatings, Australia/New Zealand. Previously, he held roles of increasing commercial responsibility in industrial coatings, fiber glass and architectural coatings in the United States.

As MRC wrote previously, in early 2013, PPG Industries announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco Inc., with a subsidiary of Georgia Gulf Corporation.

PPG Industries Inc. is an Americain international company that produces paints, chemicals, optical components, specialty materials, glass and fiber glass. The company consists of more than 150 production units and offices in more than 60 countries. PPG industries is in the list of the top 500 US corporations in terms of sales. The company's sales in 2012 were USD15.2 billion. As MRC reported previously, PPG Industries plans to open its first factory in Russia near Tver. As of today, PPG Industries has no production facilities in Russia.
MRC

JX Nippon to restart cracker in Japan

MOSCOW (MRC) -- JX Nippon Oil and Energy is in plans to restart a cracker in Japan, informed Apic-online.

A Polymerupdate source in Japan informed that the cracker is likely to restart on August 29, 2013. The cracker was shut on August 18, 2013 owing to power problem.

Located in Kawasaki, Japan, the cracker has an ethylene production capacity of 404,000 mt/year and propylene production capacity of 260,000 mt/year.

As MRC reported earlier, JX Nippon Oil & Energy Corp. is considering shutting down oil refinery operations at its Muroran plant in Hokkaido by the end of March 2014. JX Nippon will keep the Muroran refinery as a manufacturing plant for petrochemical products and keep its employees through job displacement.

The Nippon Oil Corporation, or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including olefines (ethylene, propylene) and aromatics.
MRC