Sipchem starts operations at new Jubail EVA and LDPE plant

MOSCOW (MRC) -- Saudi International Petrochemical Company (Sipchem) has announced the commencement of operations of utility and offsite units, and initial operation of some process units of ethylene vinyl acetates (EVA) and low density poly ethylene (LDPE) plant owned by its affiliate International Polymers Company at its complex in Jubail Industrial City, according to Arab News.

By this accomplishment, the company, which issued a statement in this connection earlier on June 11, has said that it has completed the first phase.

The phase includes installation and testing of major equipment and pre-manufactured modules, whose installation and testing required longer time, prior to completion of basic preparations for initial startup expected during fourth quarter of this year.

The plant capacity is 200,000 tpa of ethylene vinyl acetates (EVA) and low density poly ethylene (LDPE).

Raw material required for EVA and LDPE production is ethylene, which will be supplied by Jubail United Petrochemical Company, an affiliate of Saudi Basic Industries Corporation (SABIC) and vinyl acetate monomers (VAM) which will be supplied by International Vinyl Acetate Company, a Sipchem affiliate.

The company will announce initial operation and financial impact or any other developments in due course. The total cost of construction of this project is SR3 billion.

As MRC wrote previously, IPC signed on 10 June 2013 a financing agreement of SR 704 million (USD 188 million) with Public Investment Fund (PIF). The loan is repayable over 14 years in 26 semiannual and equal installments commencing December 2014. The loan is payable until 30 June 2027 and secured until project completion by order notes. The purpose of this agreement is to support the project financing of a greenfield EVA/LDPE plant.

International Polymers Company (IPC) is jointly owned by Sipchem (75%) and Hanwha Chemical Corporation (25%).

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

October PET prices dropped by Rb1,000/tonne in Russia

MOSCOW (MRC) -- October prices for Russian polyethylene terephthalate (PET) fell by Rb1,000/tonne from September on weak demand and lower prices of imported suppliers, according to MRC Price report.

Russian producers' prices were heard in the range of Rb64,000-66,000/tonne FCA factory warehouse, including VAT. At the same time, sales in the spot market were at Rb64,000-65,000/tonne FCA factory warehouse, including VAT. Buyers said that large customers could get a big discount from the original price.

Cheaper Asian PET continued to put pressure on prices of Russian producers. It became more difficult to maintain prices in October on the current PET prices in China and South Korea.

However, some producers said that cutting prices even lower makes no sense. Given the current situation, it will only provoke a collapse in prices and lower margins, but will not increase consumer interest. Demand is weak in the market because of a seasonal factor and is not affected by the current prices in Russia, a source said.

A positive factor in the current situation is outages at Senezh and Polief, which help prevent the overproduction of material and large stock residues of PET in the market during an off-season period.
MRC

Repsol mulls a comeback in Asia after long hiatus

MOSCOW (MRC) -- Spain's Repsol is planning a comeback in Asia after divesting most of its assets in the region in the 1990s to invest in Argentina, reported Hellenic Shipping News with reference to a company executive's statement.

"We consider Asia-Pacific a mature area, but still with a lot of potential," Zoltan Benko, a senior adviser with Repsol's upstream business development division, said at the 19th Asia Oil Week upstream conference in Singapore.

Repsol had a very active portfolio in the region in the early 1990s with assets in Cambodia, Vietnam, the Philippines and Indonesia.

"Unfortunately, we sold these assets and invested the money in Argentina. Now we are returning to generate more money," he said.

Repsol was forced to exit Argentina last year after the government there expropriated a controlling stake in its Argentinian subsidiary YPF.

Most of the company's revenue and production is generated from its businesses in Latin America, the North Sea and US, but the company is now rebalancing its portfolio by increasing its focus on West Africa and Asia-Pacific.

In Asia-Pacific, the company was focusing on Indonesia and Australia, where it already has a presence, Zoltan said.

Repsol currently has one exploration block in Australia and six blocks in Indonesia.

"We are looking at the under-explored areas in Indonesia and Australia," he said, adding that the company was also looking at Myanmar and Malaysia.

Repsol has pre-qualified to bid for blocks in Myanmar and has been invited by Malaysia's national oil company Petronas to participate in offshore blocks in the country.

As MRC informed previously, Temasek and Sinopec have both recently approached Repsol over buying its EUR4.7bn stake in Gas Natural as the Spanish oil company seeks to raise cash to increase its investment in oil exploration. Repsol’s management, which is aiming to sell 25% of its 30%, views both Temasek and Sinopec’s interest favourably due to their existing ties to the Spanish oil group. Temasek holds 6.3% of Repsol’s shares, having raised its stake earlier this year, while Sinopec has been its partner in its Brazilian oilfields since 2010.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC

Yunnan Salt & Chemical restarts PVC plant in China

MOSCOW (MRC) -- Yunnan Salt & Chemical is in plans to restart its polyvinyl chloride (PVC) plant following maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to restart in end-October 2013. It was shut on September 23, 2013.

Located in Yunnan, China, the plant has a production capacity of 100,000 mt/year.

We remind that, as MRC informed previously, another Chinese PVC producer Tianjin LG Dagu Chemical shut its ethylene-based PVC plant for one week of maintenance works on August 20, 2013. Located in Tianjin, China, the plant has a production capacity of 400,000 mt/year.

However, China's Ningxia Yinglite Chemical restarted its PVC plant on August 21, 2013, after a maintenance turnaround. Located in Shizuishan, Ningxia province, China, the plant has a production capacity of 275,000 mt/year.
MRC

Concern Stirol to spend UAH 23 million to diagnose 14 kilometres of its ammonia pipelines

MOSCOW (MRC) -- StirolConcern Stirol JSC, part of OSTCHEM holding consolidating nitrogen fertilizers producers of Group DF, has launched a large-scale project to diagnose its ammonia pipelines, said Stirol.

According to Sergiy Pavliuchuk, Chairman of the Board of Concern Stirol, the complex of works related to the diagnostics and repairs of pipelines transporting liquefied ammonia and ammonia gas will cost UAH 23 million. Diagnostics and repairs will be carried out at 150 collectors of liquefied ammonia and ammonia gas totalling 14 kilometres in length.

This project is implemented not only by the specialists of Concern Stirol, including employees of its shops and Technical Diagnostics Centre, but also by five contractors – DIEKS Engineering Supervision Company (Dnipropetrovsk), Ukrneftegazekspert (Kharkiv), Donbas Expert Centre (Donetsk), Eastern ETC (Kharkiv), and Donetsky ETC (Donetsk).

Also, the works will include a separate technical diagnostics of an ammonia storage facility with the capacity of 10,000 tons. “Initially, we planned to repair this facility in 2014, but with the launch of a large-scale programme of repairs we decided to use the temporary suspension in production to the maximum benefit,” explained Technical Director Vitaliy Ponomarenko.

A major campaign of repairs at OSTECHEM’s production units was launched in September 2013. Major repairs are currently carried out at Concern Stirol’s No.1 Ammonia Shop, No.1-V Combined Ammonia Plant, Urea Shop (Section 1), and Ammonium Nitrate shops.

In 2013, OSTCHEM will invest in the modenization and planned overhauls of its four nitrogen chemicals producers around UAH 1.5 billion, of which some 30-40% will account for industrial safety improvements. "Production safety is the main priority of modernization of our companies," explained Oleksandr Khalin, OSTCHEM General Director.

In September 2013, Dmitriy Firtash, Chairman of the Group DF Supervisory Council, initiated a major conference of Ukraine’s chemists to discuss the issues of raising labour safety standards at domestic chemical sector producers. At this conference, Mr Firtash proposed that the Ukrainian government and industrial safety supervision agencies reform the system of industrial production and labour safety.

Over 2010-2013, OSTCHEM invested UAH 3.4 million in modernization of its four nitrogen chemicals producers in Ukraine.
MRC