Turkmenistan plans new ammonia and urea complex

MOSCOW (MRC) -- Mitsubishi Corp. (MC) and GAP Instaat Yatirim ve Dis Ticaret AS (GAP) have reached an agreement with the government of Turkmenistan for the construction of a large-scale fertilizer plant in Turkmenistan, as per Hydrocarbonprocessing.

The project will be undertaken in collaboration with Mitsubishi Heavy Industries (MHI) for Turkmen state-owned company, Turkmenhimiya.

The plant, to be constructed in Garabogaz, northwest of the country along the Caspian Sea, will be the largest urea fertilizer plant in the country, with contracts amounting to some USD1.3 billion.

The complex will consist of an ammonia plant with production capacity of 2,000 tpd and a urea plant with production capacity of 3,500 tpd, as well as other related infrastructure and delivery facilities.

Turkmenistan has had steady economic growth in recent years due to its natural gas reserves, the fourth largest in the world. The Turkmen government is also actively seeking to enhance the value added component of natural gas products as well as expanding and diversifying exports and sales in the sector.

The construction of this fertilizer plant is therefore consistent with that strategy, as it will enable the increase of fertilizer exports to countries around the world in response to growing agricultural food production, according to company officials.

As MRC informed before, preparations to start the construction of an industrial complex for polyethylene and polypropylene production in Turkmenistan's Kyyanly seaside settlement are underway. The news was announced by the Turkmen government on March 25. "This project is planned to be implemented with the participation of a Japanese consortium and a South Korean company," the Turkmen government said.

AkzoNobel breaks ground on decorative paints site in China

MOSCOW (MRC) -- AkzoNobel has broken ground on its new decorative paints site in Chengdu, capital city of Sichuan Province, China, as per the company's press release.

The facility is part of an investment in excess of EUR50 million to build manufacturing facilities for both powder coatings and decorative paints.

Located in Qionglai Yang’an Industrial Park, the new site - the company's fourth plant for decorative paints in China - occupies an area of 55,000 square meters. The first phase is scheduled to be opened in 2016, with full operations expected by 2017.

Speaking at the groundbreaking ceremony, AkzoNobel CEO Ton Buchner said: "Our investment in this new site is further proof of our ongoing commitment to China, which is one of our most strategically important markets. Establishing this new facility also gives added momentum to our organic growth ambitions, as well as enabling us to continue expanding our manufacturing footprint in Asia."

The new site will manufacture the full range of AkzoNobel’s decorative paint offerings and market them in China.

As MRC wrote before, AkzoNobel is investing more than EUR6.5 million in its Songjiang site near Shanghai to expand an existing research center by adding a dedicated facility for the company’s Performance Coatings businesses. Once completed in June 2015, the new development and application center will add capability and capacity to serve growing demand throughout Asia for innovative solutions targeted at the packaging, coil, specialty finishes and powder coatings markets.

AkzoNobel employs more than 7,400 people in China, including 500 in research and development. In 2013, the company generated revenues of EUR1.6 billion, the majority coming from local demand. Within Sichuan province, the company currently operates a regional office, powder coatings production site and a car refinishes training center, with a new powder coatings production site also under construction.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.

NOVA Chemicals reports Q2 2014 results

MOSCOW (MRC) -- NOVA Chemicals Corporation generated profit of USD167 million compared to profit of USD201 million for the second quarter of 2013, as per the company's report.

The quarter-over-quarter decrease was primarily due to lower margins in the Joffre Olefins and Corunna Olefins segments, partially offset by higher margins in the Polyethylene segment.

For the six months ended June 30, 2014, the company generated profit of USD412 million, compared to profit of USD386 million for the six months ended June 30, 2013. The year-over-year increase was primarily due to higher margins in the Polyethylene segment and lower finance costs, partially offset by lower margins in the Joffre Olefins and Corunna Olefins segments.

The Olefins/Polyolefins business unit generated USD275 million of operating profit in the second quarter of 2014, compared to operating profit of USD328 million in the second quarter of 2013. The decrease for the second quarter of 2014 was primarily due to lower margins in the Joffre Olefins and Corunna Olefins segments.

The Olefins/Polyolefins business unit generated USD652 million of operating profit in the first half of 2014, compared to operating profit of USD664 million in the first half of 2013. The decrease for the first half of 2014 was primarily due to lower margins in the Joffre Olefins and Corunna Olefins segments.

The Performance Styrenics segment generated break even operating profit during the second quarters of 2014 and 2013. Higher polymer sales prices in the second quarter of 2014 were offset by higher feedstock costs and lower product sales volumes.

The Performance Styrenics segment reported operating profit of USD3 million in the first half of 2014 compared to operating profit of nil in the first half of 2013. The increase was primarily due to higher polymer sales prices and lower feedstock costs, partially offset by lower product sales volumes.

As MRC informed previously, NOVA Chemicals announced in mid-June 2014 that the first barrels of ethane supplied from natural gas associated with oil production from Bakken Shale are being utilized at its Joffre complex in Canada's Alberta province.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.

Tecnicas Reunidas wins work on Petronas refinery

MOSCOW (MRC) -- Malaysia's Petronas has awarded Tecnicas Reunidas (TR) a contract for the engineering, procurement, construction and commissioning (EPCC) for a refinery package in Petronas’ refinery and petrochemicals integrated development (RAPID) project in Pengerang, Johor, reported Hydrocarbonprocessing.

The EPCC scope includes all the hydrotreating units, catalytic reforming unit, hydrogen production units, saturated gas plant, interconnection and flare for the refinery.

The contract has been awarded on a lump sum turnkey basis for an approximate value of USD1.5 billion with a 50 months project schedule until ready for start up.

RAPID is part of the bigger Petronas Pengerang integrated complex (PIC) development worth an estimated USD27 billion, which comprises of RAPID and its associated facilities including the Pengerang co-generation Plant (PCP), re-gasification terminal 2 (RGT2), air separation unit (ASU), raw water supply project (PAMER), crude and product tanks (SPV2) as well as central and shared utilities and facilities (UF).

RAPID will consist of a 300,000-bpd refinery and petrochemical complex with a combined capacity of producing 7.7 Mtpa of various grades of products, including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

As MRC wrote before, in July 2014, Technip, leader of a joint venture with Fluor, was awarded a program management consultancy contract by Petronas for the Refinery and Petrochemical Integrated Development (Rapid) project in Johor, Malaysia. The contract includes overall project and site management for the project and provision of project management services for specific engineering, procurement, construction and commissioning packages within Rapid.

We remind that Petronas has pushed back the completion date for its Johor refinery-petrochemical project to 2017 as a final investment decision has been delayed. The company was expected to give the project the green light this year but had to push it back due to political uncertainty during the national elections early this year, industry sources said.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

Celanese announces intermediate chemistry price increases

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, will increase list and off-list selling prices for the following products effective September 1, 2014, reported the company on its site.

Product North America (USA,Canda) Mexico Central and South America

Ethyl Acetate 3 cent/lb 3 cent/lb USD70/mt
Methyl Isobutyl Carbinol (MIBC) 5 cent/lb 5 cent/lb USD100/mt
Methyl Isobutyl Ketone (MIBK) 5 cent/lb 5 cent/lb USD100/mt

As MRC informed previously, Celanese Corporation has recently announced that it will increase the price of all grades of low density polyethylene (LDPE) and Ateva vinyl acetate ethylene (EVA) in September. The increase of USD0.05/pound will be effective 1 September, 2014, or as contracts allow, and is caused by market conditions.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.