ThyssenKrupp Industrial Solutions receives fertilizer plant contract from Belarus

MOSCOW (MRC) -- Belarus-based Grodno Azot has placed an order with plant engineering specialists ThyssenKrupp Industrial Solutions for the planning and delivery of a nitric acid plant and a plant for the production of the liquid fertilizer urea ammonium nitrate (UAN) based on the Uhde process, said ThyssenKrupp in its press release.

The facilities will be integrated into the company's existing chemical plant in the regional capital Grodno in the west of Belarus. The new complex comprises a 1,200 t/day nitric acid plant and a UAN plant with a daily capacity of 3,395 t/day liquid urea ammonium nitrate solution with a nitrogen content of 32 percent. The order awarded to the Process Technologies business unit (Uhde) of ThyssenKrupp Industrial Solutions AG comprises basic and detail engineering, the supply of equipment and material, and supervision of the installation and startup of the plant. Start-up is scheduled for 2016.

The Process Technologies business unit (Uhde) of ThyssenKrupp Industrial Solutions AG has a wealth of experience and expertise in the planning and construction of fertilizer plants. Over more than 90 years Uhde has completed well in excess of 150 projects in this area and continuously adjusted its portfolio to meet the changing challenges.
The tail gas treatment unit integrated into the new plant in Grodno also meets the latest environmental protection standards. The Uhde EnviNOx® process reduces the levels of harmful nitrogen oxides in the production of nitric acid. With the help of this process, eco-toxic laughing gas (N2O) – which as a contributor to global warming is roughly 300 times more dangerous than carbon dioxide – can be almost completely removed.

For the Process Technologies business unit (Uhde) of ThyssenKrupp Industrial Solutions AG, this is the second major order from Grodno Azot. Back in 2008 its Belarusian subsidiary PTC Khimvolokno placed an order with ThyssenKrupp (Uhde Inventa-Fischer) to supply a polyamide production plant. As from the beginning of this year Grodno Azot is now capable of producing 260 t/day of this versatile high-quality polymer – doubling its previous output. The material is used for example in medical technology, textiles and the food industry.

As MRC wrote before, ThyssenKrupp Uhde has won a front-end engineering and design (FEED) contract for a single-train polypropylene (PP) plant based on LyondellBasell's Spheripol process technology for ZapSibNeftekhim L.L.C, a wholly owned subsidiary of Sibur.

ThyssenKrupp AG is a German multinational conglomerate corporation based in Duisburg and Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services.

MRC

Petronas eyeing USD35bn Canada spend

MOSCOW (MRC) -- Malaysia's state oil company Petronas plans to spend USD35 billion to develop shale gas assets in Canada and build a liquefied natural gas export terminal linking the country to energy hungry Asian markets, according Upstreamonline.

The estimate is USD15 billion higher than the figure previously announced, since it includes costs associated with drilling wells in British Columbia and taking over Canadian explorer Progress Energy Resources for USD5 billion, Reuters cited unnamed company officials as saying.

Malaysian Prime Minister Najib Razak was quoted as saying in newspapers that the project, announced last year after Petronas bought Progress Energy, would make the South-east Asian country the biggest foreign investor in Canada.

"There is a 30-year timeline for the USD35 billion investment," Najib said after holding bilateral meetings with Canadian Prime Minister Stephen Harper on Sunday.

Petronas had previously said it would spend USD20 billion to build two LNG trains on the West Coast. This includes a pipeline to be built by TransCanada from the fields in the shale-rich Montney region. The trains are expected to be ready by the end of 2018 or 2019.

Petronas has previously stated that a final investment decision on the entire project will be taken by the end of 2014.

The company is in talks to sell stakes in the entire project to potential LNG buyers and has finalised one such deal with Japan Petroleum Exploration.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

MRC

Pertamina signed agreement with UOP for modernization of its refineries

MOSCOW (MRC) -- Indonesian state-owned energy company Pertamina and UOP LLC, a wholly-owned subsidiary of Honeywell, US based company, has signed an agreement to conduct a Bankable Feasibility Study (BSF) for Refinery Development Master Plan (RDMP) in order to modernize Pertamina refineries, according to the company's press release.

BFS is partially funded by a grant from the United States Trade and Development Agency (USTDA) worth USD1,07 million. The RDMP will serve Pertamina in achieving company’s goal to become world class downstream business.

President Director and CEO of Pertamina Karen Agustiawan said, Indonesia’s fuel consumption has experienced annual growth rate of 8% over the last 10 years amid the rising growth of economy of the country. Pertamina expects the trend will be continuing for 5 coming years with average annual growth leastwise of 5% per annum.

At the same time, domestic demand for petrochemical products is also expected to grow continuously due to increasing new centers of economic growth outside Jakarta, especially manufacturing sector. Indonesia’s petrochemicals market value is expected to be USD30 billion by 2018, and Pertamina targets to grab 30% of the market share.

"Pertamina needs to modernize its downstream infrastructure to meet the rising demand for energy and petrochemical products in Indonesia. The RDMP will strengthen national energy security and reduce our dependence on imports," said Karen.

Pertamina operates 5 major refineries with total capacity of 1,035 milion barrels oil per day, the largest capacity in the South East Asia Region and the fifth largest capacity in the Asian Region. It is the comparative advantage of Pertamina to meet it’s target to become the main energy and petrochemical player in Indonesia and in the region.

As MRC wrote previosly, this summer Pertamina signed an agreement to purchase petrochemical products from Thailand’s PTT Global Chemical. 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.

UOP is a recognized global leader in refining and petrochemical technology and also the prime licensor of technologies for the refineries. UOP has been working with Pertamina for more than four decades. In the signed agreement, UOP will develop a master plan to upgrade Pertamina’s downstream assets.

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).
MRC

Evonik to reduce size of Executive Board and streamline

MOSCOW (MRC) -- At its last meeting the Supervisory Board of Evonik Industries AG, the German speciality chemicals group, unanimously passed resolutions relating to the successful focusing of the group on specialty chemicals and its future growth targets, reported the company on its site.

Over the past five years Evonik has been restructured from an integrated conglomerate to a listed specialty chemicals company. Following the refocusing of the business, the next step is to consolidate management and administrative processes.

Within the Executive Board, operational responsibility for the entire specialty chemicals business will therefore be transferred to Patrik Wohlhauser (49) as of January 1, 2014. Dr. Thomas Haeberle (57) and Dr. Dahai Yu (52) will be leaving the company by amicable and mutual agreement effective December 31, 2013.

Further, Evonik's Supervisory Board unanimously welcomed the Executive Board's decision to undertake extensive streamlining of group-wide administrative structures. In many respects, the present administrative functions still reflect the needs of Evonik's former structure as a conglomerate.

Moreover, administrative expenses are now approximately 26% higher than they were in 2008. Evonik therefore intends to extend the progress made in the operating units through the On Track and On Track 2.0 efficiency enhancement programs to its administrative organization. The goal is to make cost savings of up to EUR250 million a year by the end of 2016.

The planned restructuring of the administrative functions will result in savings in material and personnel expenses. The related job cuts will be achieved in a socially compatible manner in close collaboration with representatives of the workforce and the German Mining, Chemical and Energy Industrial Union (IG BCE). The scope and nature of the necessary measures will be examined in the coming months. Existing framework agreements, including the agreement to refrain from dismissals for operational reasons, will be extended for two years to the end of 2018.

We remind that, as MRC informed previously, Evonik Industries plans to expand its capacities for precipitated silicas worldwide by about 30 % by 2014. Besides, Evonik's new polyamide 12 line is planned to be built in Singapore by 2014 to increase the availability of this specialty plastic. The company invested over EUR100m (GBR131m) in a new hydrogen peroxide plant in Jilin, China. The plant is scheduled to be completed by the end of 2013 where it will annually produce 230,000 tons of hydrogen peroxide, which is mostly used as a bleaching agent in the textile and pulp industry. As part of the company's strategic portfolio expansion, Evonik plans to launch a new generation of PVC plasticizers. Evonik started construction of the production facilities with the estimated production capacity of 40,000 tpa at the Marl Chemical Park this summer.

Evonik Industries is an industrial corporation in Germany and one of the world's leading specialty chemicals companies. Company's specialty chemicals activities focus on high-growth megatrends, especially, health, nutrition, resource efficiency, and globalization, and on entering attractive future-oriented markets. In 2012 Evonik generated sales of EUR13.6 billion and an operating result (adjusted EBITDA) of EUR2.6 billion. The international rating agency Moody's has upgraded the credit rating of the German speciality chemicals group Evonik Industries AG from Baa3 with a positive outlook to Baa2 with a positive outlook.
MRC

Teijin–SK Chemicals JV begins constructing PPS resin plant

MOSCOW (MRC) -- Teijin Limited announced that it has established a joint venture with South Korean chemical producer SK Chemicals opening a new window to develop and sell polyphenylene sulfide (PPS) resins and compounds in Ulsan, South Korea, said the company in its press release.

Construction of a 12,000-ton per annum PPS resin plant began on October 1. Teijin owns 34% of the new company, INITZ Co., Ltd., and SK Chemicals holds the remaining 66% share. Working in cooperation with Teijin and SK Chemicals, INITZ will start by providing samples to selected customers in the automotive and electronics fields.

Focusing on customers especially in fast-growing Asian markets, it aims to become a world leader in PPS resin and compounds. A global market share of 20% and annual sales of 300 billion KRW (280 million USD) are envisioned by 2020.

INITZ expects to produce the world’s first chlorine- or sodium-free PPS resins utilizing proprietary technologies of SK Chemicals.

PPS resin, a super engineering plastic, exhibits excellent thermal resistance, chemical resistance, mechanical strength and dimensional stability. The demand for PPS resin is expected to grow in line with the increasing popularity of electric and hybrid vehicles and the ongoing expansion of electronics markets in emerging countries.

With conventional PPS resins, chlorine and sodium from raw materials and byproducts remain in the resin, which can lead to the corrosion of molds and functional deterioration of metal parts, such as defective contacts. Also, chlorine has potentially harmful environmental effects if burned.

Following formal establishment of the company on September 1, a groundbreaking ceremony held at the Ulsan plant on October 1 was attended by guests including the mayor of Ulsan and the chairman of the Ulsan city council.

As MRC wrote before, Teijin established a Russian subsidiary, Teijin Rus, as part of its strategy to expand businesses in emerging economies. The new company, which was created 1 October 2013, has absorbed the existing local office that was established in 2006.

Teijin is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 17,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY745.7 billion (USD 7.4 billion) and total assets of JPY 762.4 billion (USD7.6 billion) in the fiscal year ending March 31, 2013.

MRC