October imports of PET to Ukraine fell by more than three times

MOSCOW (MRC) - In October, imports of polyethylene terephthalate (PET) to Ukraine fell by more than three times, compared with the September level (70%) and totalled 4,100 tonnes, according to MRC DataScope report.

The sharp decline in October PET imports resulted from the significant inventories of finished products in the warehouses of the major producers of PET preforms. Decline in the consumption of water and drinks in the autumn led to an increase in carryovers and reduced activity in the market of PET chips. Many companies have cut the volume of purchases in foreign markets and postponed some of the supplies to the later time.
Total PET imports to Ukraine was 146,000 tonnes in January-October 2013, up by 6% from the same period in 2012.

However, taken into account the market situation this autumn MRC analysts have changed their forecasts for the final figures of PET imports for the year. Large carry-overs will result in a decrease of PET imports. In this regard, the high growth of PET chips consumption in the beginning of the year will slow down and in the end of 2013 imports of PET to Ukraine will be at the level of 160,000 -167,000 tonnes, compared with 163,000 tonnes in 2012.
MRC

MOSCOW (MRC) -- The new DGCX Polypropylene plastic futures contracts will create a transparent market and new pricing benchmark for the MENA region, said Cpifinancial.

The contract is sized at five metric tons (MT), with the contract price quoted in US dollars per MT. Physical delivery will ensure price convergence between the futures market and the physical market. DGCX has approved leading warehouses for the delivery of the product.

Global production of polypropylene exceeds 65 million metric tons annually, over twice the annual global production of aluminium. The UAE is one of the world's largest producers of polypropylene - the most common plastic product used in manufacturing and packaging.

Gary Anderson, CEO of DGCX, said, "The price of plastics fluctuates, as does the price of other commodities, but currently market participants in the region do not have the ability to hedge against price fluctuations via a futures contract. We believe this is the opportune time to launch our plastic futures contract in the region, allowing market participants in the plastics supply chain, including producers, traders, convertors and end-users to hedge their polymer price risk".

"The GCC produces more than 20 percent of the world’s plastics and a significant percentage of flows into the Far East. Our plastics contract will be a key contract for DGCX as the Exchange seeks to support its Members and clients and tap into the growing trade corridors to the Far East, one of the largest consuming regions of plastics."

DGCX has been closely working with the Dalian Commodities Exchange (DCE) since both parties signed a memorandum of understanding (MoU) in 2012 to develop a plastics futures contract. DCE also aims to launch its first polypropylene contract in 2014.

As MRC wrote before, China National Petroleum Corporation is planning a logistics hub in Dubai to minimize possible disruptions from geopolitical risks in the Mena. CNPC, state owned parent of PetroChina, plans to build an industrial park of 200,000 square meters in Dubai's Free Zone with production lines for engineering equipment. CNPC source said that the company would use the park as an equipment store in the event of an emergency withdrawal from the Mena. CNPC has a strong presence in the region, developing large oilfields from Iraq to Sudan.

In addition, DGCX has established a working group, constituting of leading plastics trading companies, producers, refiners and banks, which provide counsel on the contract design and specifications and also help facilitate vital market feedback. The working group includes international commodities companies and financial institutions.
DGCX executives are showcasing the prospective plastics futures contract and its specifications at the Gulf Petrochemicals & Chemicals Association (GPCA) forum, 19 November 2013 in Dubai. Market simulation is now available.
MRC

MOSCOW (MRC) -- An explosion at Total's Antwerp refinery in Belgium, Europe's second-largest, killed two people, forced the evacuation of the site and caused the shutdown of a gasoline producing unit on Tuesday, reported Reuters.

Two people have died following an explosion at a Total refinery in Belgium. A third person who was missing following the blast at the facility in Antwerp has now been found safe.

"The explosion occurred in a steam system of a gasoline producing unit," Total said in an emailed statement.

Industry intelligence firm Genscape said the 57,500 barrel per day (bpd) gasoline hydrotreater was shut at 1402 GMT shortly after the explosion.

French supermajor and refinery operator Total said the situation is now under control and there was no release of hydrocarbons. There was also no resultant fire or environmental damage.

We remind that, as MRC informed previously, last autumn Total announced its plans to invest over EUR1 billion into its Belgian refining and petrochemical complex to boost its diesel-making capacity and create cost-cutting synergies. This investment could bring Europe's largest refiner extra cash of USD500 mln a year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Colombia is planning to build a new pipeline to export oil via its Pacific coast to Asia, as increased production from United States shale fields forces South American third-biggest crude producer to seek new markets, said Hydrocarbonprocessing.

"There’s a re-figuration of the international energy market, especially with what is happening in the United States," Colombia Mines and Energy Minister Amylkar Acosta said in an interview in his Bogota office. "Colombia is almost the only country in Latin America where oil exports to the United States haven’t declined. But it is foreseeable that it will happen in the future."

China and India represent important growth markets, with Colombia planing to connect its Cano Limon pipeline with Venezuela’s Guafita in the short term, and build a separate pipeline to the Pacific coast in the medium to long term, Acosta said. The route of the new pipeline is being studied.

The majority of Colombian oil is currently exported through the Caribbean port of Covenas, according to the website of Ecopetrol. "From a security perspective, Colombia can’t keep relying on a single port for oil exports," Acosta said. “We must have alternatives, and this would be via the Pacific."

Plans announced in October for a joint venture between Ecopetrol and Petroleos de Venezuela, to develop mature fields in Venezuela will go ahead, helping Ecopetrol increase reserves using its expertise in secondary oil recovery, Acosta said.

As MRC wrote before, state-run China National Petroleum Corp (CNPC) and Petroleos de Venezuela SA (PDVSA) will begin construction work late this month to build a new USD9.08bn refinery in Jieyang, China. The 400,000 barrels-per-day (bpd) refinery will process Venezuelan heavy oil, thereby tripling oil sales from the South American nation to the world's second-largest oil user.

MRC

MOSCOW (MRC) -- Qatar is set to step up its chemicals, petrochemicals and LPG output in the coming years, said HE the Minister for Energy and Industry, Dr Mohamed bin Saleh al-Sada, as per Zawya.

Qatar will raise its output of chemicals and petrochemicals to 23mn tonnes per year (tpy) by 2020, he said. Some important contributing projects are Al-Karaana and Al-Sejeel, in addition to a Qafco expansion, which is the world's largest single-site producer of both ammonia and urea.

Al-Sada said Qatar's LPG production, which currently stands at 11mn tonnes per year, will go up by 0.5mn tpy next year with the 2014 commissioning of the Barzan Gas Project. In 40 years since the North Field gas discovery, Qatar's LPG industry has grown rapidly, particularly so, in the last decade, the minister said.

More LPG volumes are expected from the Bul-Hanaine oil field development, which will not just enhance crude oil production, but will also add important quantities of ethane, propane, and butane.

Upcoming expansions in the oil and gas sector include the Barzan Gas Project in 2014, which will play a significant role in meeting the needs of giant projects, including the facilities planned for hosting the World Cup in 2022.

Some of the energy demand is driven by Qatar's large-scale expansion of the petrochemicals sector, which supports the diversification and growth of the Qatari economy. Such developments, the minister said, will be important for a region such as the Middle East, where the commissioning of several new petrochemical supply projects will substantially increase the amount of LPG that is available to the international markets.

Having said that, al-Sada pointed out there were still several key issues confronting the LPG industry, such as the current outlook for LPG demand growth in developing markets, and whether supply growth was enough to support projected growth in regional and global LPG demand.

As MRC wrote before, Qatari government established the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat), which now holds the exclusive rights to purchase, market, distribute and sell the emirate’s chemical and petrochemical output on the global market. Muntajat is headed by CEO Abdulrahman Ali Al Abdulla, and will establish 36 global offices in addition to logistics establishments and warehouses across the world to support its marketing, sales and distribution activities.
MRC