Borealis and Borouge to present wire and cable innovations on the global stage

MOSCOW (MRC) -- Borealis and Borouge, the world's leading providers of innovative, value-creating solutions for the wire and cable industry, continue to deliver on their commitment to driving innovation in the global industry, reported Borealis on its site.

Borealis and Borouge have developed new products such as Borealis PP4874 for data cables and Borealis LE0563 for submarine power cable jackets, which will be showcased at the 2014 Wire Dusseldorf. Thus, the company is going to launch its two new grades at the event.

"Borealis and Borouge have been key drivers in the wire and cable industry in 2013," says Gilles Rochas, Borealis Vice President for Energy & Infrastructure. "We will continue to invest in the future. Our next great opportunity to demonstrate our long-term commitment to our partners and customers in the industry is the Wire Dusseldorf in April. By showcasing our flagship solutions and cutting-edge innovations we again prove our ability to bring energy all around."

As MRC informed before, last summer, Borealis and Borouge announced the dedicated roll-out of the technology platform Borlink in Russia, according to the company's press release. Borlink was introduced by Borealis and Borouge as a technology platform offering a complete global package of power cable compounds and expertise serving applications for medium and high voltage (MV, HV), including extra high voltage (EHV) and high voltage direct current (HVDC).

Key innovations of Borlink include a tailor-made high pressure (HP) process for the production of high purity low density polyethylene (LDPE) base polymers with superior electrical properties and the introduction of a closed or controlled loop (from monomer to final packaging) which avoids contaminants and ensures homogenous and high-quality, clean compounds.

Borouge is a joint venture between the Abu Dhabi National Oil company and Borealis.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. Borealis is headquartered in Vienna, Austria, and operates in over 120 countries with around 5,300 employees worldwide, generating EUR7.5 billion in sales revenue in 2012.
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MOSCOW (MRC) -- OAO Gazprom, Russia’s gas exporter, faces at least a year’s delay in starting shipments from its liquefied natural gas plant in Vladivostok, according to three people with knowledge of the matter, said Hydrocarbonprocessing.

The LNG facility, which the state-run company has said will begin output in 2018, may start in 2019 or 2020, said the people, asking not to be identified because the information is confidential. There are delays in sourcing the gas for the 10 million-tpy liquefaction capacity, they said.

The company hasn’t changed its plan to begin production at Vladivostok in 2018, a Gazprom official said by telephone from Moscow, asking not to be identified citing internal policy.

The project in Russia’s Far East is a day away by ship from the world’s biggest LNG importer, Japan, which has several supply contracts due for renewal from 2018, one of the people said. Japan has the option to renew with current suppliers Qatar, Australia and Malaysia among others or buy from emerging LNG facilities including in Mozambique, the US, and Russia.

One of the gas fields that may supply the LNG plant was found to have a large oil layer on top, which may need to be pumped out before gas extraction begins, one of the people said. Drilling at the Yuzhno-Kirinskoe field continues and a clearer plan for its development won’t emerge before the end of the year, the person said.

Delays in starting LNG production would increase costs, while Japanese buyers are asking for discounts since this will be a new facility, two of the people said. The project is still attractive to Japanese purchasers, who want to diversify their supply sources, the people said.

About 10 companies are in talks with Gazprom about investing in the gas extraction or the LNG production part of the Vladivostok project, one of the people said. India, China and some Southeast Asian countries could also be buyers of LNG from Vladivostok, the person said.

As MRC wrote before, Gazprom is already building a gas liquefaction plant in Vladivostok, eastern Russia, to supply the Asia-Pacific region. Companies from Japan, a large consumer of LNG, are in talks on purchasing supplies from the facility. We remind that, as MRC informed earlier, Gazprom can return to the construction of LNG plant with the nominal capacity of 7 million tonnes in Primorsk (Leningrad region).
MRC

MOSCOW (MRC) -- Further to the earlier decision of the European Commission to continue its evaluation of the proposed 50/50 Joint Venture between Solvay and INEOS in a Phase II investigation, the parties have jointly agreed to put forward a revised remedy package to address any competition concerns that have been raised by the European Commission, said Solvay in its press release.

The proposed remedy package, which was submitted to the European Commission yesterday, comprises the divestment of the PVC plants at Schkopau (Germany), Beek (The Netherlands) and Mazingarbe (France) along with the chlor-alkali, EDC and VCM assets at Tessenderlo (Belgium). These facilities are all currently operated by INEOS and are strategically important within the European chemicals sector. They have the ability to compete as successful stand-alone businesses under third party ownership.

The European Commission will now consider this remedy package alongside any further market testing it wishes to undertake ahead of making a final decision. Assuming such asset disposals are required to obtain Commission clearance this would be subject to full consultation with employee representatives.

INEOS and Solvay will continue to run their businesses separately until completion of the transaction, which is dependent on the above approvals and procedures.

As MRC wrote before, two of Europe’s biggest chemical companies agreed a joint venture that will create one of the world’s largest producers of PVC plastics by revenues in May 2013.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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MOSCOW (MRC) -- BASF said it wants to research the potential for shale gas production in Germany and warned politicians not to endanger the competitiveness of Europe’s industry by adding to its already high energy costs, said the Financial Times.

The world’s biggest chemicals maker by sales is closely following the impact of shale gas discoveries in the US which have boosted US rivals such as DuPont and Dow Chemical via lower electricity costs and feedstock prices.

BASF would like to explore the possibility for "fracking" in Germany but must overcome widespread environmental concerns about the use of this technique in a densely populated country. Fracking involves the horizontal pumping of water and chemicals at high pressure to release stores of gas.

Environmental worries have already led to the phasing out of nuclear power in Germany and frustrated BASF’s desire to develop genetically modified crops there.

So far BASF says it has not faced competition problems because of US shale gas. The German chemicals maker has a large North American footprint – equivalent to 19% of sales – and has therefore benefited there from lower energy prices. It has also deliberately reduced its exposure to ethylene-base chemical production, which is a leading beneficiary of US shale gas discoveries.

Moreover, as the US chemicals industry produces for the local market, Europe has so far not faced a flood of cheaper US chemical products.

Bernstein Research last year calculated that the disparity between US and European gas prices put BASF at a margin disadvantage compared with US peers equivalent to a 7% gap in operating earnings.

EU politicians are pressing for changes to the EU emissions trading scheme as the market price of carbon credits has fallen to a low level. But BASF remains opposed to such intervention.

BASF said revenues and earnings would rise in 2013 thanks to a recovery in demand and measures to boost efficiency.

The German group was able to offset weaker chemical margins last year with higher earnings in oil and gas that provide a natural hedge when the economy slows.

Full-year sales rose 7% to EUR78.7bn but net income declined 21% to EUR4.9bn as the higher proportion of earnings from oil and gas boosted its tax bill.

Management proposed a dividend of EUR2.60, 10 cents higher than the prior year and equivalent to a 3.65% dividend yield compared with the average 2012 share price.

MRC

MOSCOW (MRC) -- After months of searching, Octal Petrochemicals has found a site for its first plant in North America, opting for a Cincinnati-area location that provides more than 130,000 square feet of space, said Plasticsnews.

News that the Muscat, Oman-based PET resin and sheet maker selected the site in West Chester, Ohio, about 20 miles north of the city comes from Cushman & Wakefield, which describes itself as the world’s largest privately held real estate services firm.

Octal’s West Chester location will use post-industrial recycled PET flake and resin to make reusable sheeting for the agricultural market.

"This was a six-to-eight month process of performing the proper studies and analyzing which markets made the most sense for Octal to place its first North American plant," said Mark Collins, a member of Cushman & Wakefield’s tenant advisory group based in Dallas, in a statement.

"We worked very closely with our alliance firm partners at Cincinnati Commercial Realtors to find the right mix of location, incentives and opportunity for Octal. This was a collaboration at every phase of the process, and that's important when you're dealing with an important, international client who is new to the market," Collins said.
The West Chester site includes both warehouse and office space and is located in an industrial park. Duke Realty owns the building.

As MRC wrote before, Octal Petrochemicals is setting up a project in Saudi Arabia to manufacture polyethylene terephthalate (PET) dairy cups and trays for dairy and poultry industries. Octal Petrochemicals will be investing USD20 million for the downstream project, which will generate USD70 million revenue per annum, once it goes on stream.

Octal’s new location will complement the company’s existing PET manufacturing site in Salalah, Oman, which has current production capacity of 1 million tons per year.

Octal Petrochemicals last year said that the value of the company's exports stands at USD100 million per month or about 2% of the gross domestic products of the Sultanate and 15% of the non-oil exports. The company has achieved remarkable revenue growth — from USD500 million to USD1.5 billion over a six-year period only after being rated as one of the biggest four producers of PET resin and PET sheets.
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