Reliance to invest USD700 mln in shale gas and USD13 bln capex in petrochem and refining

MOSCOW (MRC) -- Reliance Industries (RIL) will invest up to USD700 mln in its shale gas venture in the current fiscal and also ramp up spends under the USD13 bln capex programme in the petrochemical and refining business, reported Plastemart with reference to PTI.

"We will invest USD 600-700 million in the shale gas venture. This figure has almost become into a yearly run rate now...We hope to open around 125 to 175 new wells during the year," RIL Chief Financial Officer Alok Agarwal said.

As MRC informed previously, RIL had announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October 2012, the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

Reliance is also building one of the world’s largest ethylene crackers taking advantage of refinery integration at Jamnagar. This project will be commissioned in H2-2016 and would nearly double the ethylene capacity to 3.3 mln tpa.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- Jiangsu Sanfangxiang has restarted its purified terephthalic acid (PTA) plant following maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant restarted over the weekend. It was shut in late March 2014.

Located in eastern Jiangsu province of China, the plant has a production capacity of 1.2 million mt/year.

As MRC reported earlier, BP Zhuhai Chemical has deferred the startup of its new purified terephthalic acid (PTA) plant. The commissioning of the plant has been postponed to 2015. It was earlier scheduled to start in Q4, 2014. The reason for the delayed startup has been attributed to weak margins for PTA. To be located in Zhuhai, southern Guangdong province of China, the plant will have a production capacity of 1.5 million mt/year.

We remind that China based company Xianglu Petrochemical had started up its new purified terephthalic acid (PTA) plant in late November 2013. Located in Xiamen, China, the plant has a production capacity of 1.5 million mt/year.
MRC

MOSCOW (MRC) -- Xinxiang Shenma Zhenghua Chemical has shut its polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant was shut on April 16, 2014. It is likely to remain off-stream for around one month.

Located in Henan province, China, the plant has a production capacity of 50,000 mt/year.

As MRC wrote previously, Erdos Chlor-Alkali Chemical took off-stream its PVC plant for maintenance turnaround on April 1, 2014. It is likely to remain off-stream for around one month. Located in Inner Mongolia, the plant has a production capacity of 300,000 mt/year.

Earlier this year, Japanese petrochemical producer - Taiyo Vinyl Corp., a subsidiary of Tosoh Group, has recently shut down its PVC plant for maintenance turnaround. It was shut down on March 13, 2014. The plant is likely to remain off-stream for around one month. Located in Yokkaichi, Japan, the plant has a production capacity of 310,000 mt/year.
MRC

MOSCOW (MRC) -- Lubrizol is expanding its new global energy and water (E&W) business unit, said Hydrocarbonprocessing, citing the US-based specialty chemicals company press-release.

The announcement was made by John Uhran, vice president of Lubrizol's industrial specialties business group.
"We've always been active in the energy and water segments, but we were calling on these industries from different business groups within Lubrizol," said Uhran. "We pulled everything together to create the energy and water business unit in early 2013. This allowed us to focus on the oilfield, refinery process and industrial water treatment chemicals markets."

"The expansion and growth of this business unit exemplifies Lubrizol's commitment to making our chemical services customers' more competitive in their markets while creating safer working environments for their employees and the communities where they work," Uhran continued.

"Lubrizol's investment in the energy and water business unit will allow us to continue to provide innovative solutions for our customer's end-users."

Lubrizol says it is adding additional resources to grow the new business unit, with emphasis placed on hiring new scientists, along with additional sales and product management staff.

This will accelerate the delivery of Lubrizol innovations to the market to help make Lubrizol's specialty chemical-services customers more successful in their businesses.

The company noted that it has also added capital resources for the expansion o flaboratory facilities in Houston. The lab features testing equipment that enables a higher level of technical support to our customers. The new lab also increases R&D capability that will help Lubrizol develop a broader specialty additives portfolio, according to company officials.

As MRC wrote before, Lubrizol, an innovative specialty chemical company, is planning a four-year, USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers" high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC

MOSCOW (MRC) -- Japanese production of ethylene fell 8.1% in March on the year to 510,900 tonnes, reported Reuters with reference to the data from the Ministry of Economy, Trade and Industry.

Ethylene, made from naphtha, is a basic feedstock for petrochemicals that are made into products such as plastics.

As MRC wrote before, Japan-based Sumitomo Chemical will permanently wind up the operations of an ethylene plant at its Chiba Works in Ichihara, Chiba, in or before September 2015, following a decline in domestic demand for ethylene derivatives.

We also remind that, as informed previously, ethylene production from export-oriented steam crackers associated with advantaged gas-based feedstocks is set to alter the global ethylene markets, according to analysis from energy research firm Wood Mackenzie's new Chemical Markets Service.

Ethylene producing assets that have access to low cost gas feedstocks, such as the ones in North America, will lead the competition with total ethylene and derivative investment set to reach USD40-50 billion in the next decade. Over the same time period, global ethylene demand will grow by 3.3% per year, on average, according to Wood Mackenzie. The Dow Chemical Company, LyondellBasell Industries N.V. and Exxon Mobil Corporation are among the leading companies engaged in the ethylene industry in North America.
MRC