Arkema introduces new Pebax RNew grade for free-ride ski boots

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has presented its latest Pebax Rnew grade at ISPO 2014, the European trade fair for winter and outdoor sports that offers a showcase for the latest trends in ski equipment, reported the company on its site.

Pebax RNew 80R53 is a grade that goes beyond the limits of thermoplastic elastomers. This new rigid bio-based Pebax, opens up the scope of ski boot design combining light weight, astonishing responsiveness to skiers’ movements, and creativity in decoration.

Pebax Rnew 80R53 is 50% more rigid than existing Pebax grades, already well-known for several years as reference materials for both alpine touring and cross-country ski boots.

The new grade retains the key Pebax characteristics and environmental qualities that appeal to sportsmen and women: produced from renewable raw materials with more than 90% bio-based content, lightweight, renowned long-term UV resistance and offering great creativity for novel design.

As MRC informed previously, in November 2013, Arkema introduced innovative bio-based polyamide grades for highly demanding markets. Continuing the successful story of Rilsan Clear G830 Rnew, the first bio-based transparent polyamide, Arkema presents new grades - Rilsan Clear G850 Rnew and Rilsan Clear G120 Rnew - for specific customer needs.

Rilsan Clear G850 Rnew has been especially designed for injection molding application (i.e.: optical and electronic), to give maximum freedom to designers, while Rilsan Clear G120 Rnew, besides the optical and processing properties of the range, has an outstanding chemical resistance, especially with alcohols.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

PP production in Russia increased by 23% in 2013

MOSCOW (MRC) - The growth of capacity utilisation and the launch of new plants resulted in 23% increase in the polypropylene (PP) output in Russia, according to MRC ScanPlast.

A new PP production was launched in February 2013 - Poliom, based in Omsk. Tobolsk-Polymer (SIBUR Group) was launched in late May in test mode. Stavrolen and Neftekhimia (Kapotnya) also Increased their capacity utilisation. All these factors increased the production volume in 2013 to 814,000 tonnes (excluding production of Tobolsk-Polymer), compared with 660,300 tonnes in 2012. Structure of PP production in Russia last year was as follows.

Stavrolen (LUKOIL) last year produced about 125,000 tonnes of polypropylene against 82,900 tonnes in 2012. Such a big difference in the indexes was because of outage of the producer in January and February 2012 (accident at ethylene production in December 2011) and low production rates in 2012.
Neftekhimia (Kapotnya) increased its PP output in 2013 to 121,100 tonnes (in 2012 - 105,800 tonnes) because of production rates growth and reduced maintenance works.

Nizhnekamskneftekhim (TAIF) produced a little more than 208,700 tonnes of polypropylene in 2013 against 210,400 tonnes in 2012, because of a week-long turnaround in September 2013 (maintenance works were not carried out in 2012).

Ufaorgsintez (ONC) in 2013 reduced the output of polypropylene to 115,400 tonnes, down 7% from the level in 2012, because of shortage of main feedstock (propane-propylene fraction) in May.

Tomskneftekhim (SIBUR) reduced the polypropylene production to 127,600 tonnes in 2013 against 136,600 tonnes a year earlier on the back of long turnaround in July - August 2013.

The construction of a new polypropylene production in Omsk (Poliom, Titan Group) started in 2005. Poliom was launched on 11 February 2013.
The output of PP at Poliom was more than 116,100 tonnes in less than eleven months of 2013.

Tobolsk-Polymer (SIBUR) launched its second PP line in 2013 (in May in the test mode, and in October was the official start). The producer has used imported feedstock since May, resulting in a low production rates, which did not exceed 30%. The producer managed to launch its own PP production in mid January 2014, however not at full capacity. The capacities of polypropylene production were not officially disclosed, however, the producer's PP output exceeded 19,000 tonnes in the seven months of 2013 (from June to December).


MRC

Petrobras starts regasification terminal

MOSCOW (MRC) -- Brazilian largest integrated energy firm, Petroleo Brasileiro SA or Petrobras has brought online its third LNG (liquefied natural gas) Regasification Terminal in the state of Bahia, said Zacks.

The 14 million cubic meter/day terminal added the first produce to the Brazilian gas pipeline network on Jan 24. Construction of the Bahia Regasification Terminal (TRBA) started in 2012 and required an investment of approximately Real 1 billion.

Contribution from this new terminal has increased Petrobras’ natural gas regasification output to 41 million cubic meter/day. Previous regasification ventures of Petrobras include the terminals at Pecem and Guanabara Bay. The terminals have regasification capacity of 7 million cubic meter/day and 20 million cubic meter/day, respectively.

Petrobras believes that the increased regasification capacity would support the nation’s natural gas needs.

Petrobras’ activities include the exploration, exploitation and production of oil from reservoir wells, shale and other rocks, and in the refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The Brazilian state run energy major has a promising long-term outlook thanks to its strong pipeline of development projects and impressive exploration successes.

As MRC wrote before, Petrobras awarded two ultra-deepwater contracts to the project management, engineering and construction company, Technip.The French company would deliver flexible pipes of about 100 kilometers that would support oil production, gas lift and gas injection.

Headquartered in Rio de Janeiro, Petrobras currently holds a Zacks Rank N3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
MRC

Splitting Dow would be a credit negative - Moody's

MOSCOW (MRC) -- Moody's views the proposal by Third Point Capital, who has reportedly taken a roughly 2.5% equity stake in The Dow Chemical Company (Dow), as being a credit negative, according to the Moody's statement.

However, Moody's does not believe that Dow will implement this proposal and instead will accelerate its planned cost reductions and divestitures, and undertake incremental increases to shareholder remuneration. Moderate increases to shareholder remuneration would not have a negative impact on Dow's rating or outlook.

As MRC wrote previously, in December 2013, Dow Chemical unveiled its plans to separate chlorine-related assets including its epoxy business as the company focuses on higher-margin activities. The chlorine assets account for as much as USD5 billion of annual revenue and include plants at 11 sites employing almost 2,000 people.

Earlier last year, Grace had completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln. The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.

Third Point LLC is an SEC-registered investment adviser based in New York. The firm was founded in 1995 by Daniel S. Loeb, who serves as Chief Executive Officer. Third Point focuses on event-driven, value-oriented investing.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. It is also one of the largest chemical companies in the world, with annual revenues of over USD56 billion. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

Total calls on energy industry to review projects with excessive costs

MOSCOW (MRC) -- Total, Europe’s third-largest oil company, called on peers to revise projects that require tens of billions of dollars of investment as costs escalate, said Hydrocarbonprocessing.

"Costs are becoming too high," Christophe de Margerie, CEO of the Paris-based company, said Friday in a Bloomberg Television interview from Davos, Switzerland. “

Total has vowed to lower capital spending even as it starts projects from Norway to Angola to increase output. Royal Dutch Shell, Europe’s largest oil producer, also has pledged to rein in costs after this month issuing its first profit warning in a decade. The companies have seen expenses climb as they search for crude and gas in more remote and complex areas.

"We have to redefine how we can develop some fields without spending as much money," De Margerie said.

Expenses also have been driven up by rising construction bills and currency changes. In Australia, such costs have hurt companies including Chevron, whose USD45 billion Gorgon project is among seven liquefied natural gas (LNG) ventures being built there at a cost of more than USD180 billion.

The pressure on producers has a knock-on effect for oil-service companies that help them find and pump crude and gas. Ayman Asfari, CEO of London-based oil engineer Petrofac, said Thursday that the company and its peers will feel the impact of belt-tightening among their clients.

"Our industry is facing a huge amount of cost pressure," he said. "More is being spent to produce less. Our clients are seeing the rate of return on capital dropping and they’re being challenged by investors who want them to be more disciplined."

As MRC wrote before, Total, Europe’s third-largest oil company, intends to invest EUR160m before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness. Total plans indeed to develop new activities on the platform in the growing markets for hydrocarbon resins (Cray Valley) and for polymers, while shutting down the acutely loss-making steam cracker in the second half of 2015.

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