Production of polymer products in Belarus decreased by 13.4% in January - April 2014

MOSCOW (MRC) - Despite the seasonal surge of polymer products output in April, their total production in Belarus decreased by 13.4% in the first four months of 2014, according to MRC analysts.

Production of polymer products decreased in all types of products, the exception was only boxes, trays and crates.
According to the National Statistics Committee of Belarus, the output of boxes, crates, plastic trays was approximately 68.2 million units in the April 2014 (66.8 million units in March). Total production of these polymers products rose to 255.5 million units in January - April 2014, up 10.6% year on year.

April production of polymer pipes, hoses and fittings increased to 940 tonnes, from 897 tonnes in March. Total production of these products was about 3,700 tonnes in the first four months of 2014, down 7.1% year-on-year.

April output of polymer boards, films and sheets was 6,300 tonnes, compared with 7,200 tonnes in March. Total production of these products decreased by 14.8% to 26,000 tonnes in the first four months of 2014.

April production of windows, window frames and sills in Belarus was 35,100 square meters, from 34,900 square meters in March. Total production of these products reduced to 108,000 square meters in the first fout months of 2014, down 16.1% compared to the same time in 2013.

April production of plastic doors and boxes was about 1,200 square meters, compared with 1,900 square meters in March. Total production of these products decreased to 6,300 tonnes in January - April of this year, down 23.6% year on year.
MRC

MOSCOW (MRC) -- BP confirmed its commitment to Russia after signing a shale oil deal with state-owned oil company Rosneft, despite US government-led sanctions against Moscow and the company’s chief executive, said Financial Times.

The contract was one of a string of deals signed in a ceremony at the St Petersburg International Economic Forum by Rosneft boss Igor Sechin.

The US had urged western companies to boycott the forum, Russia’s equivalent of Davos. Most US chief executives avoided the meeting, but European energy bosses including BP’s Bob Dudley, Shell’s Ben van Beurden, Eni’s Claudio Descalzi, and Total’s Christophe de Margerie all attended, underscoring the desire of western companies to continue to do business in Russia in spite of sanctions.

BP owns a 19.7% stake in Rosneft. The deal is the latest in a rush by western oil companies to join forces with Russian groups in order to take advantage of tax breaks for so-called "difficult oil" projects, which came into effect in September.

Also at St Petersburg, Total and Lukoil signed a joint venture to develop the Bazhenov shale. Talks on the tie-up had earlier been reported by the FT. Older joint ventures include Rosneft’s with ExxonMobil and Statoil, and the tie-up between Gazprom Neft, the oil subsidiary of Gazprom, and Royal Dutch Shell.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC

MOSCOW (MRC) -- Production of polypropylene (PP) in Russia increased over the first four months of 2014 by 25% year on year. Increased capacity utilisation at Tobolsk-Polymer and Poliom was the main cause of the growth in the output, as per MRC ScanPlast.

April PP production in Russia rose to 87,500 tonnes from 82,200 tonnes in March. Thus, the overall output of polymers of propylene by Russian plants totalled about 322,400 tonnes from January to April 2014, while this figure was 258,800 tonnes over the same period of 2013. As expected, the increased capacity utilisation at the plants that were launched in 2013 (Poliom and Tobolsk-Polymer) led to such a major growth in PP production in Russia.

The production structure by plants over the said period looks the following way.

Poliom started PP production on 11 February 2013, the plant's annual production capacity was 180,000 tonnes then. The plant increased its capacity to 210,000 tonnes in May 2014. Poliom produced about 15,600 tonnes of PP in April. The overall plant's output rose over the first four months of the year to 54,200 tonnes (19,500 tonnes over the same period of 2013).

Tobolsk-Polymer (the plant's commissioning was last May, its annual capacity is 500,000 tonnes) also significantly increased its capacity utilisation this year. Its April PP output reached 23,500 tonnes. Thus, the plant produced about 54,800 tonnes of PP from January to April 2014.

Nizhnekamskneftekhim and Ufaorgsintez virtually managed to maintain their production at the last year's level. They produced 17,100 tonnes and 10,100 tonnes of PP, respectively, in April. These plants' PP production reached 69,000 tonnes (2013 - 68,500 tonnes) and 42,700 tonnes (42,900 tonnes a year earlier), respectively.

Neftekhimia (Kapotnya) and Tomskneftekhim reduced their output. They produced 10,200 tonnes and 11,000 tonnes of polymers of propylene, respectively, in April. The plants reduced their PP output by 2% and 5%, respectively, from January to April 2014 to 39,600 tonnes and 43,900 tonnes.

As reported earlier, Stavrolen was forced to suspend its PP production on 26 February because of an accident at the ethylene unit. At the same time, one should not rule out the fact that the Budenovsk plant might resume its PP production in summer, using imported feedstock.

MRC

MOSCOW (MRC) -- Ineos Technologies has licensed its Innovene polypropylene (PP) process for the production of homopolymers, random and impact copolymers and its Innovene G process for the production of linear low-density polyethylene (LDPE) and high-density polyethylene (HDPE) to Xinjiang Bangyou Chemical Co. in Xinjiang, China, as per Apic-online.

The Innovene PP plant will have a capacity of 350,000 t/y and the Innovene G unit will have a capacity of 250,000 t/y. The plants will produce a wide range of products to serve growing demand in China.

"We chose Innovene PP and Innovene G because they give us broad product capability at low investment and operation cost," said Zhang Guoqi, chairman of Xinjiang Bangyou. "The two Ineos technologies offered an optimized process combination for our polyolefin units to deliver products required in the market," he added.

As MRC informed earlier, in January 2014, Ineos Technologies licensed its Innovene PP process for the manufacture of homopolymers, random copolymers and impact copolymers to Vung Ro Petroleum Ltd. at its refinery complex located in Hoa Tam Commune, Dong Hoa District of Phu Yen Province, Vietnam. The 900,000 Innovene PP plant will produce a wide range of polypropylene grades to serve the growing demand in the Asian market.

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.
MRC

MOSCOW (MRC) -- CNOOC and LG Chem Petrochemicals Co. Ltd., a 50:50 joint venture between China’s state-owned CNOOC and Seoul-based LG Chem, has commenced production on its 150,000 ton phase one project, said Plastemart.

The total investment outlay has been pegged at about USD400 mln. The plant is located in the Daya Bay Petrochemical Industrial District in Huizhou, Guangdong province, neighboring CSPS (a JV between CNOOC and Shell) and the Huizhou Refinery and Ethylene project.

The company is "actively preparing for" the second phase, which has been approved by the provincial government and double the plant’s capacity to 300,000 tons upon completion.

Given the oversaturation of China’s standard ABS market, this plant is focused on specialty grades and high-end standard grades, serving processors in South and East China. The company said it is supplying materials to appliances giants as well as makers of consumer products and toys.

We remind that four CB&I technologies were selected by China's CNOOC Oil & Petrochemicals Co. the second expansion phase of their refinery and petrochemical complex at Huizhou in Guangdong Province.

China National Offshore Oil Corporation (CNOOC Group Chinese) is one of the major national oil companies of China. It is the third-largest national oil company in the People's Republic of China after CNPC (parent of PetroChina), and China Petrochemical Corporation (parent of Sinopec).The CNOOC Group focuses on the exploitation, exploration and development of crude oil and natural gas offshore of China.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC