LyondellBasell delays start-up of expanded production at La Porte ethylene plant

MOSCOW (MRC) -- LyondellBasell, the world’s biggest maker of polypropylene plastic, has delayed the start-up of expanded production at its ethylene plant in La Porte, Tex., until later this year, as per Plastemart.

A mechanical issue with a compressor at the plant was partially to blame for the extended turnaround at La Porte, as per the company.

The revised timeline for the newly expanded plant project, which was scheduled to begin production this summer resulted from a delay in the completion of extensive scheduled maintenance at the La Porte plant during the second quarter. The company expects to begin production from its 800 million lb/year La Porte ethylene during this year’s third quarter.

While the company said its third-quarter earnings would be negatively impacted by the delayed start-up at La Porte, it did not disclose a firm date for when production at the plant would begin.

The La Porte project is the first of three ethylene expansions LyondellBassel has under way, which include projects at its plants in Channelview and Corpus Christi, Tex., all of which are benefitting from rising North American shale gas production.

As MRC informed previously, LyondellBasell Industries has posted second-quarter earnings that topped analysts’ estimates as margins widened on higher prices. Net income was USD2.23/share, compared with USD1.61 a year earlier, London-based LyondellBasell said in a statement Friday. Income from continuing operations was USD2.22, which exceeded the USD1.92 average estimate of 18 analysts compiled by Bloomberg. Sales were USD12.1 billion, compared with USD11.1 billion a year earlier, beating the USD11.5 billion average estimate.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) - Polyethylene terephthalate (PET) imports in Kazakhstan were 30,500 tonnes in the first half of 2014, up 15% compared to January-June 2013, according to ICIS-MRC Price Report.

The share of Chinese PET chips occurred for about 58% from the total imports in Kazakhstan over the reported period. Total imports of PET from China in the first half of the year reached 17,900 tonnes. Chinese PET was popular among local converters first of all because of its lower prices compared with other Asian material.

However, demand for South Korean PET has improved this year. Imports of Korean PET reached 12,700 tonnes in the first half of the year, up 40% compared with the same time a year earlier.

Buying activity was seasonally strong in July. Traders have increased prices on price rise in China.

Spot prices for PET in Kazakhstan were heard in the range of tenge (Tenge) 350,000-358,000/tonne CPT Astana, including VAT.
MRC

MOSCOW (MRC) -- Jakarta-listed PT Chandra Asri Petrochemical (TPIA), the country’s largest petrochemical producer, has made the assets of its two subsidiaries, PT Styrindo Mono Indonesia and PT Petrokimia Butadine Indonesia, collateral for loans worth USD533 million, reported Plastemart with reference to The Jakarta Post.

Chandra Asri, along with its two subsidiaries, signed a security sharing agreement with nine lenders, including DBS Bank Ltd., Bank Central Asia (BCA) and Bank Danamon Indonesia. Since last year, Chandra Asri has been looking for financing to partly expand its naphtha cracker facility from 600,000 kilotons of ethylene to 860,000 kilotons.

The naphtha cracker expansion, which requires USD380 mln in investment, is necessary to support Chandra Asri’s other expansions on other products, like ethylene, propylene, pyrolysis gasoline and mixed C4. Apart from higher ethylene production, the project will also see a boost in its annual production capacity of propylene by 150,000 tons to 470,000, pyrolysis gasoline by 120,000 tons to 400,000, and mixed C4 by 95,000 tons to 315,000.

As MRC wrote before, last June, German petrochemical company Ferrostaal Industrial Projects GmbH and Chandra Asri Petrochemical agreed to work on studies for the development of a petrochemical plant. Under an agreement, Ferrostaal and Chandra Asri has been developing a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to USD1.89 billion. The complex is expected to produce up to 400,000 tonnes of polypropylene and 175,000 tonnes of ethylene annually.
MRC

MOSCOW (MRC) -- Munich-based chemical company Wacker is expanding its product range with a new liquid silicone rubber for the production of automotive gaskets, reported the company on its site.

Molded parts made from the new silicone are resistant to heat and coolant and exhibit low compression set even under permanent stress. Car radiators and cooling-system components can thus be reliably sealed. ELASTOSIL RT 728, as the new silicone grade is called, can be injection molded or mechanically dispensed straight onto the part to be sealed.

ELASTOSIL RT 728 has been chiefly developed for the production of fluid- and heat-resistant gaskets for the automotive industry. The liquid silicone is characterized by high coolant resistance. Gaskets made from ELASTOSIL RT 728 exhibit no more than 30% compression set after 1000 hours in coolant at a temperature of 105 C. After 1000 hours at 125 C, the permanent deformation is still less than 65% as soon as the stress is removed. The elastomer’s high resilience delivers constant contact pressure and optimum leaktightness in the seal groove. Moreover, even long-term stress has very little effect on the overall property profile of ELASTOSIL RT 728. Vulcanizates of the new liquid silicone meet delivery specifications of leading car manufacturers concerning gaskets for use in engine cooling systems.

ELASTOSIL RT 728 supports cost-efficient series production of parts by injection molding. However, the liquid silicone can also be applied by dispensing equipment straight onto the part to be sealed - automotive subcontractors use this method to produce two-component parts. ELASTOSIL RT 728 meets all the key requirements of this application. By virtue of its shear-thinning properties, it can be applied by dispensing equipment and is self-adhesive. Automotive suppliers, such as Stuttgart-based MAHLE, uses the product to make radiator components.

As MRC reported earlier, Wacker Polymers, a division of Wacker Chemie AG, is to raise its prices for vinyl acetate-ethylene (EVA) and ethylene-vinyl chloride-based (EVCL) copolymer dispersions of the VINNAPAS and VINNOL brand in the regions Americas and Greater China. As customer contracts allow, effective August 1, 2014, prices will be raised by USD0.03 per pound in the Americas. In Greater China, prices will increase by CNY300 per ton.

In Europe, the temporary surcharge of EUR140 per ton for vinyl acetate-based homopolymer dispersions as well as for vinyl acetate-ethylene and ethylene-vinyl chloride-based copolymer dispersions implemented on May 1, 2014, will persist, as customer contracts allow, until further notice.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) -- Rosneft, Russia's biggest oil producer, has announced it has been seeking ways to cope with the negative impact of international sanctions, as it reported higher net income helped by a stronger ruble, as per Themoscowtimes.

Kremlin-controlled Rosneft, which accounts for 40% of Russian oil production, was hit by U.S. sanctions over Moscow's actions in Ukraine, limiting the company's access to Western money. Cooperation with international peers is important to Rosneft, 19.75% of whose shares are owned by BP. ExxonMobil also has a number of joint projects with Rosneft.

Chief Executive Officer Igor Sechin, a longstanding ally of President Vladimir Putin, said the company has been working on a plan to offset the negative effect of the punitive measures. Svyatoslav Slavinsky, in charge of Rosneft's finances, told a conference call that the company does not expect any changes to its joint projects with international majors.

The head of Norway's Statoil, with which Rosneft has plans to jointly develop Russia's Arctic offshore riches and hard-to-recover oil, said it has been studying the sanctions that have been implemented, but there has been no change in their cooperation.

However, Russian companies, including Rosneft, are facing tougher sanctions from the European Union as the deepest East-West spat since the end of the Cold War two decades ago flares.

Rosneft said its net income in the second quarter — before the sanctions were introduced — surged by almost five times year-on-year to 172 billion rubles (USD4.9 billion), beating analyst forecasts, due to a stronger ruble. Rosneft reports in rubles and the stronger currency has a positive impact on its huge foreign currency-denominated debt. The company said its earnings before interest, taxation, depreciation and amortization, or EBITDA, rose to 304 billion rubles (USD8.6 billion), almost in line with expectations. Sales for the period rose to 1.44 trillion rubles (USD41 billion), slightly above the 1.42 trillion rubles (USD40.4 billion) expected by analysts. Rosneft reported it received USD1.9 billion of advanced payments from BP in July under a five-year oil supply deal. Free cash flow surged to 112 billion rubles (USD3.1 billion) while net debt declined to 1.495 trillion rubles (42.5 billion).

MRC