LLDPE prices continue to rise in CIS markets

MOSCOW (MRC) -- Air Products announced it has signed an agreement with a consortium including Technip and JGC to implement the Yamal LNG Project, said Hydrocarbonprocessing.

The LNG plant under construction on the Yamal Peninsula will mark the first time Air Products deploys its proprietary LNG technology and equipment in Russia. The plant will be Russia's largest LNG production and export facility.

Air Products will supply three MCR Main Cryogenic Heat Exchangers to be installed at the heart of the propane pre cooled mixed refrigerant liquefaction process. Each of these units using Air Products' proprietary AP-C3MR LNG process technology and equipment will produce 5.5 Mtpa of LNG, for the overall 16.5 Mtpa three train facilities.

LNG from the Yamal LNG Project will be used primarily to meet the growing energy needs of Asia and Pacific Region countries.

A majority of the total worldwide LNG is produced with Air Products' technology. Air Products has now designed, manufactured, and exported more than 100 coil wound heat exchangers for LNG projects around the globe over the last four decades. In support of the LNG industry, Air Products provides process technology and key equipment for the heart of the natural gas liquefaction process for large export plants, small and midsized LNG plants, floating LNG plants and LNG peak shavers.

Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides dry inert gas generators for LNG carriers, shipboard membrane nitrogen systems, and land based membrane and cryogenic nitrogen systems for LNG import terminals and base-load LNG plants.

As MRC informed previously, earlier this year, Air Products agreed to acquire all of DuPont's interest in DuPont Air Products NanoMaterials, the two companies' 50-50 joint venture serving the global semiconductor and wafer polishing industries. The venture state-of-the-art applications and formulation laboratories in the US and Taiwan.
MRC

MOSCOW (MRC) -- Russian officials have declared interest in buying half of Croatia’s former state player INA from Hungarian oil & gas group MOL, said Upstreamonline.

The officials expressed Russia’s interest in the stake on the sidelines of a visit by Hungarian Prime Minister Viktor Orban to Moscow to meet Russian President Vladimir Putin, Hungarian business weekly Figyelo reported, citing unnamed sources.

Neither the Russian nor the Hungarian government made any immediate comment on the rumours. The two leaders signed a bilateral agreement on nuclear development co-operation during their talks last week.

MOL holds a 49.1% stake with management rights in INA, while the Croatian government owns a 44.8% interest. The Hungarian explorer has been locked in a long-running dispute over the stake with the Croatian government, which wants to regain control of the company privatised in 2003.

INA holds exploration and production assets in Croatia along with eight licence interests in Angola and Egypt as well as two blocks under force majeure in Syria.

The Zagreb-headquartered company, which also holds refining, marketing and retail assets, earned revenues of USD3.62 billion in the first nine months of last year. MOL Group is a leading integrated Central and East European oil and gas corporation with an extensive international Upstream and Downstream portfolio.

As MRC wrote before, MOL Nyrt. laid the cornerstone of a butadiene plant in a move that may decrease Hungary's dependency on imports of the chemical. MOL is set to invest 120 million euros (USD162.7 million) in the plant of its petrochemical arm TVK, part of the company's 300-billion-forint (USD1.37 billion) three-year investment scheme.
MRC

MOSCOW (MRC) -- Saudi Basic Industries (SABIC) is in talks with several U.S. firms to invest in the U.S. shale gas industry, and expects to enter that market this year, said Reuters, citing chief executive Mohamed al-Mady.

"We're currently in talks with a few big names in the U.S. for investment in shale gas. We expect to enter the market sometime this year. This will be great for SABIC and will globalise our operations," he said.

Mady, speaking to Reuters on the sidelines of the World Economic Forum in Davos, did not elaborate on the size or type of investment in U.S. shale gas.

Last year Mady said SABIC, one of the world's biggest petrochemical producers, planned to build a new shale gas cracker in the United States. As MRC wrote before, SABIC's plan for US investments comes as the economic slowdown in Europe and China ebbed demand from clients and affected earnings at the company and its affiliates.

Any investment would not be heavy in the initial stages, Mady said on Wednesday, adding the company had no urgent funding needs so he doubted it would tap the bond market this year.

"We hope our profit will increase next year. There won't be any significant investment in the coming two to three years. Most of the shale investment will come in 2017."

Saudi Basic Industries Corporation (SABIC) ranks among the world"s top petrochemical companies. The company is among the world"s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Valero Energy Corp. is forecasting fourth-quarter adjusted profit that's higher than analysts expect, as the oil refiner benefits from higher volumes and wider discounts for certain crude oils, said Cnbc.

The company also announced an 11% increase in its dividend, and shares of Valero rallied in late trading. The company said that fourth-quarter earnings after a one-time gain would be in the range of USD1.60 to USD1.80 per share.

That excludes a nontaxable gain of USD325 million related to sale of an interest in CST Brands Inc. Including that gain, net income will be between USD2.20 and USD2.40 per share, the company said.

Analysts, who usually exclude items, expected 96 cents per share, according to FactSet. Valero said that operating income from refining would be nearly as high as it was in the fourth quarter of 2012 due to higher volume and slightly wider discounts for so-called sour crude oil. The San Antonio company also said operating income in its ethanol business would rise "significantly" from a year earlier on higher gross margins and production volumes.

The company said separately it is raising its regular quarterly dividend 11% to 25 cents per share from 22.5 cents per share. The dividend will be payable on March 12 to shareholders as of Feb. 12, the company said. It was Valero's third dividend increase in a year.

We remind that Valero Energy Corp. plans to become a major player in the production of petrochemicals by building a USD700 mln methanol plant at its St. Charles refinery near New Orleans.

Valero Energy Corporation is a a international manufacturer and a marketer of transportation fuels, other petrochemical products, and power that is based in San Antonio, Texas, United States.
MRC