INEOS confirms contract for the transportation US shale gas to European cracker complexes

МOSCOW (MRC) -- INEOS Olefins & Polymers Europe has today confirmed that it has reached an agreement with Evergas to expand its contract for a series of state-of-the-art ethane vessels, that are currently under construction in China, to six vessels, said the producer in its press release.

In January 2013 INEOS agreed a 15-year shipping agreement with Evergas for the transportation of ethane into Europe from the US Mariner East project, as the world’s first US ethane export contract.

INEOS and Evergas have now expanded the agreement to secure additional capacity for long-term shipping of advantageously priced US ethane for INEOS’ European crackers at Rafnes (Norway) and Grangemouth (Scotland).

INEOS will be the first company to establish seaborne intercontinental ethane transportation, having earlier announced agreements with Sunoco Logistics for capacity in the Mariner East pipeline and terminal system, with Range Resources and CONSOL Energy for the purchase of ethane. Evergas will provide customized vessels for the transportation.

The company has also confirmed today that it has reached an agreement with Enterprise Products for ethane capacity at their recently announced ethane export facility on the Texas Gulf coast. The design and build of highly advanced, sustainable vessels has been an important consideration in supporting INEOS’ competitive business model.

David Thompson, Chief Operating Officer INEOS Trading & Shipping says: "Having worked successfully with EVERGAS for more than a decade we are very confident that these vessels will provide long term security and competitiveness of our feedstock supplies".

The new vessels will enter into service in 2015. They are tailored to meet the specific needs of this project and will be built to the latest specifications matching highest environmental and efficiency performance measures. They are the largest, most flexible and advanced multigas carriers yet to be built. They will provide INEOS with a flexible solution for their ethane supplies with the option of transporting LNG, LPG as well as petrochemical gases including ethylene.

Martin Ackermann, CEO of EVERGAS says: "The advanced design of these vessels offers very high efficiency and unparalleled flexibility to INEOS securing the longevity and strong position of their business." The dual-fuelled vessels will use clean LNG in state-of-the-art engines securing high efficiency, low emissions and reduced fuel cost.

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.

BASF doubles production capacity of non-phthalate plasticizer in Ludwigshafen

MOSCOW (MRC) -- BASF has doubled capacity of its non-phthalate plasticizer Hexamoll DINCH from 100,000 metric tons to 200,000 metric tons per year at its site in Ludwigshafen, Germany, said the producer in its press release.

With a second Hexamoll DINCH plant BASF will satisfy growing customer demand and strengthen supply security worldwide while continuing to ensure consistently high quality. The plant has started up successfully and the expanded capacity is available from now on.

Hexamoll DINCH is a non-phthalate plasticizer especially developed for applications with close human contact. Due to steadily growing demand since its market launch in 2002, Hexamoll DINCH has become an established plasticizer in food packaging, medical devices and toys. During the last few years there was also an increasing demand in the flooring and wall covering industry.

With its excellent toxicological profile and low migration rate Hexamoll DINCH has set high quality standards and is the ideal choice for a wide range of applications. Several leading brand owners and market players put their trust in Hexamoll DINCH.

"In the last few years we have been experiencing a strong customer demand for alternatives to traditional phthalates and a market change to non-phthalate plasticizers," said Prof. Dr. Rainer Diercks, President of BASF’s Petrochemicals Division. "With our second Hexamoll DINCH plant and the doubled capacity we support our customers in managing this change and making the move to Hexamoll DINCH."

As MRC informed previously, in January, 2014, BASF and China Petroleum & Chemical Corporation (Sinopec) broke ground on the construction of its world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. At start-up in 2015, the plant, which is the first of its kind in China, will serve the increasing market demand for next-generation plasticizers. A newly-formed 50-50 joint venture company has been created, BASF MPCC Company Limited.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.


Styron raises prices of PS and copolymers in Europe

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber its affiliate companies in Europe announced today price increases for all polystyrene (PS) and copolymer grades, as per the company's statement.

Effective immediately, or as existing contract terms allow, the May contract and spot prices for the products listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR35/tonne;
- MAGNUM ABS resins - by EUR35/tonne;
- TYRIL SAN resins - by EUR35/tonne.

As MRC reported earlier, Styron and its affiliate companies in Europe announced the same increase in its April prices of all PS and copolymer grades.

Earlier, the company raised its prices of all PS and copolymer grades in February, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR40/tonne;
- MAGNUM ABS resins - by EUR50/tonne;
- TYRIL SAN resins - by EUR40/tonne.

PS is a key strategic business for Styron and an industry it will continue to focus innovation efforts on to help their diversified customer-base remain competitive in the different markets they serve such as packaging, appliances, building and construction.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.

May prices of extrusion grade PC peaked in Russia

MOSCOW (MRC) -- Polycarbonate (PC) prices seasonally rise in the extrusion sector from March to May. The reason for the increase is traditionally stronger demand from the agricultural sector (construction of greenhouses from honeycomb PC sheets), according to ICIS-MRC Price report.

The gradual rise in PC prices since early spring has resulted in May offer prices of local extrusion grade PC to be at Rb120,000-122,000/tonne CPT Moscow. European extrusion grade PC is offered in the market at Rb124,000-126,000/tonne CPT Moscow.

These prices will be maintained until the end of the month, after which they are expected to drop by Rb3,000-5,000/tonne.

To date, foreign producers maintained their export prices for the Russian market unchanged from the last year's level. The main factors that determine domestic prices of imported PC are the rouble exchange rate and demand dynamics.

European PVC prices increased in May by EUR20-30

Moscow (MRC) -- European producers increased prices of polyvinyl chloride (PVC) for deliveries to the CIS markets, despite a slight decline in feedstock prices, according to ICIS-MRC Price Report.

Negotiations on European PVC prices for May delivery to the CIS markets have begun this week. European ethylene prices for May delivery were agreed down by EUR5/tonne, compared with the April level.

However, European producers announced increase in export PVC prices of EUR20-30/tonne. Price offers for May European PVC were heard in the range of EUR760-800/tonne FCA.

Some European producers have significantly reduced their export quotas, compared with April. Some companies said they managed to contract no more than half of the required volumes.

European producers explained the price rise by the seasonally stronger demand, scheduled maintenance works at some plants (Anwil, Poland) and the need to improve their margines.