Solvay sees Southern France gas shortage as suppliers target Asia

MOSCOW (MRC) -- Solvay, a Belgian chemicals maker, said a natural gas shortage has emerged in southern France as suppliers bypass the region in favor of faster growing markets in Asia, as per Hydrocarbonprocessing.

The premium "represents 25% on gas prices versus the rest of Europe," Philippe Rosier, president of Solvay Energy Services, said in an interview. It’s "adding to the competitiveness problem of industry in the south of France."

The shortage of natural gas, widely used in industry applications, for furnaces and fertilizer, and in households for cooking, is adding to the woes of French industry, which is already reeling from Europe’s economic woes.

European chemical companies Solvay, Arkema and Ineos Group have operations in southern France and the Rhone Valley.

Southern France is also losing out as the main pipeline connecting the region to north European gas networks has limited capacity.

Intensive gas users in the south of France have to buy part of their gas on the spot market and "the price spread has catastrophic consequences on industrial sites" in the region, said Daniel Marini, director of economic and international affairs at French chemical makers federation UIC.

"It’s a real issue," said Gilles Galinier, a spokesman for Arkema, which makes fluoro-gases and polymers in the region.

As MRC informed earlier, in November 2013, Ineos opend one million tonne deep-sea ethylene terminal at Ineos Oxide, Zwijndrecht, Belgium. The new deep-sea terminal, at the heart of the second largest petrochemical region in the world, is now fully operational. Ineos has a very large demand for ethylene, supplied substantially by its own production from several steam crackers across Europe. To balance the shortfall the company has traditionally bought ethylene from other companies that sit on the ARG pipeline. The new one million tonne deep sea terminal now presents an opportunity for INEOS to import competitively priced ethylene from around the world, thereby improving its flexibility.
MRC

MOSCOW (MRC) -- DuPont, an international chemical major, has announced that its Board of Directors authorized a new USD5 billion share repurchase program of the company's common stock, as per the company's statement.

This program replaces the existing repurchase program. The company expects to repurchase USD2 billion in 2014 with the remainder to be repurchased over time with no required completion date.

"This USD5 billion share repurchase program reflects our commitment to shareholders and our confidence in building a higher growth, higher value company," said DuPont Chair and CEO Ellen Kullman. "Given our cash position, strong balance sheet and outlook, this program is a measured way to maintain ample financial capability, reinvest in our science-based businesses for growth, and deliver attractive cash returns to our shareholders."

Since 2008, DuPont's dividend and share repurchases have returned more cash to shareholders as a percentage of market capital than the average of its peers and the S&P 500.

As MRC informed before, DuPont declared a fourth quarter common stock dividend of 45 cents per share payable 13 December, 2013, to stockholders of record 15 November, 2013. This dividend is the same as what was paid in the third quarter 2013. This is the 437th consecutive quarterly dividend since the company’s first dividend in the fourth quarter of 1904. Regular quarterly dividends of USD1.12-1/2 per share on the USD4.50 series preferred stock and 87-1/2 cents per share on the USD3.50 series preferred stock also were declared, both payable 24 January, 2014, to stockholders of record 10 January, 2014.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC

MOSCOW (MRC) -- Consumption of polyethylene terephthalate (PET) in Russia has been falling for the second consecutive year. The capacity of the Russian PET market dropped by 4%, according to MRC ScanPlast.

According to MRC analysts, the estimated PET consumption in Russia totalled about 560,000 tonnes in 2013. The market capacity did not virtually change in monetary terms and was about Rb36 billion, despite lower market capacity in tonnage terms.

The overall reduction in the average weight of PET-preforms (switching to standard PCO 1881 from an old standard PCO 1810) and falling production of beer caused lower PET consumption. According to our estimates, beer production in Russia fell by 8.6% in 2013.
As reported previously, the competition will grow in the Russian domestic market in 2014, because of lower exports, increased domestic production and a number of other factors.

MRC

MOSCOW (MRC) -- The production capacity of the Turkish Pektim Petrochemical Holding where SOCAR, Azerbaijan’s state energy company has equity participation will increase from 3.2 million tons to 3.6 million tons in 2014, reported Yarns&Fibers.

An increase in production capacity will be possible thanks to the improved capacity of ethylene and purified terephthalic acid (PTA) production enterprises.

In particular, the ethylene production enterprise's capacity will increase from current 520,000 tons to 587,000 tons by late 2014. The PTA production capacity will increase from 70,000 tons to 105,000 tons which will require investments worth USD25 million.

Petkim also said that the first stage of construction of a wind power station will be completed in November 2014 in the petrochemical complex.

The technical evaluation process of the power station establishment project has already been completed. The implementation of the first phase is planned to be launched this year.

The total capacity of the power station will reach 50 MW and the output will be 25 MW in the first phase.

As MRC wrote previously, Petkim together with its key owner, Socar plans to transform Aliaga into an industrial cluster. The transformation has several positive effects on Petkim. Star refinery, Petlim and Petkojen projects are the key earnings drivers. Among these initiatives, the building of Star refinery by Socar-Turcas, the container port project Petlim and co-generation plant project Petkojen are the key additions. Star refinery allows Petkim to receive feedstock at lower cost and better quality. Petlim utilizes the port area belonging to the company more efficiently. Petkojen lowers the overall energy cost of the company by turning the boilers to dual mode.

Petkim is the leading petrochemical company of Turkey. Specializing in petrochemical manufacturing, the company produces ethylene, polyethylene, polyvinyl chloride, polypropylene and other chemical building blocks for use in the manufacture of plastics, textiles, and other consumer and industrial products.
MRC

MOSCOW (MRC) -- Kem One, Europe’s third-largest producer of polyvinyl chloride (PVC) has announced an increase in January prices of suspension PVC (SPVC) grades and mass PVC (MPVC) grades, according to the company's press release.

The increase for the products stated above was EUR50 per metric tonne.

As MRC informed previously, in late December 2013, the Lyon commercial court designated the new owner of the company Kem One SAS, and put to an end the insolvency proceedings opened on 27 March, 2013.

The commitment of all stakeholders involved, under the aegis of the public authorities, has enabled the takeover of the company and the continuation of its business as part of a takeover bid validated by the commercial court and with the full support of the French government.

Kem One, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s third-largest producer of PVC with revenues in excess of one billion euros, KEM ONE continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC