Petronas, Pulawy, SOGDC to study ammonia-urea venture in Malaysia

MOSCOW (MRC) -- Petronas Chemical Group Berhad (PCG), Grupa Azoty Zaklady Azotowe "Pulawy" SA (Pulawy) and Sipitang Oil & Gas Development Corp. (SOGDC) has inked a memorandum of understanding (MoU) to conduct a joint feasibility study for producing urea and ammonia derivatives in Sipitang Oil & Gas Industrial Park (SOGIP) in Sabah, Malaysia, as per Hydrocarbonprocessing.

This non-binding MoU marks the beginning of a collaboration between PCG, Pulawy and SOGDC for the development of urea and ammonia derivatives for the Asian agriculture industry.

The parties will undertake a preliminary technical, economic, raw material supply, logistic, infrastructure and utilities study for the development of the petrochemical products.

"Grupa Azoty Pulawy has unique competence in the production and processing of urea," said Marian Rybak, president of Pulawy's board of directors.

"Our business strategy involves the production of high-value products based on urea as melamine and urea solution used to reduce exhaust emissions in cars and power plants," he added.

As MRC informed previously, in September 2014, SINOPEC Engineering said it formally entered into a package contract of engineering, procurement, construction and commissioning (EPCC) of an oil refining and petrochemical integrated engineering project with PRPC Refinery and Cracker Sdn. Bhd., a subsidiary of Petroliam Nasional Bhd, at a contract sum of about USВ1.329 billion. Project RAPID is located in the region of Pengerang, Johor, Malaysia.

RAPID is part of the bigger PETRONAS Pengerang Integrated Complex (PIC) development worth an estimated 27 Billion US Dollars, 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 barrels per stream day refinery and petrochemical complex with a combined capacity of producing 7.7 mln tpa of various grades of products, including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

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.
MRC

MOSCOW (MRC) -- SABIC has signed a Memorandum of Understanding (MoU) with hte in Heidelberg, Germany, on to establish a satellite laboratory for high throughput experimentation to increase its R&D efficiency, as per ZAWYA.

hte is a leading high throughput experimentation company that provides a valuable upside to heterogeneous catalysis and enables fast track R&D.

Under the MoU, hte will provide a technology platform to support SABIC in catalysis R&D. This will include advanced testing equipment which will be hosted exclusively at hte's newly constructed laboratory building in Heidelberg, Germany. SABIC will benefit from a unique R&D environment with dedicated high throughput experimentation laboratories and specialized personnel. hte's offering encompasses additionally state-of-the-art workshops, infrastructure, technology, service, and catalysis expertise.

Dr. Wolfram Stichert, CEO at hte said, "This MoU is the result of a long-term business relationship between SABIC and hte. This commitment for further cooperation will take our relationship to the next level. We are proud to be a preferred R&D collaboration partner for SABIC."

As MRC wrote before, in May 2014, SABIC and the Korean petrochemical company, SK Global Chemical, signed a 50-50 joint venture agreement for a total investment of USD595 million to manufacture a range of high-performance polyethylene products using SK’s cutting edge Nexlene solution technology.

The joint venture, which is located in Singapore, is expected to operate a series of manufacturing plants, the first of which was recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. The plants will produce metallocene linear low density polyethylene, polyolefin plastomers and polyolefin elastomers that will meet the growing needs of diverse industries such as advanced packaging, automotive, healthcare, footwear and electrical and lighting.

hte - the high throughput experimentation company is a leading provider of technology solutions and services for customers in the energy, refinery, chemicals and environmental sectors. Its close ties with BASF guarantee long-term orientation and stability.

SABIC is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. It is the largest public company in Saudi Arabia. It is the largest company in the Middle East.
SABIC is currently the second largest global ethylene glycol producer and is expected to become number one after the introduction of these new projects. SABIC is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. It is also the world's largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
MRC

MOSCOW (MRC) -- Construction of Carbon Holding's Tahir Petrochemicals project is to start in six weeks, said Ahram, citing company chairman Basil El-Baz at the Euromoney Egypt Conference.

The new factory will be the largest liquid naphtha cracker in the Middle East, costing USD7 billion. Sixty-five percent of the required investment will come from bank loans, while the rest will be self-funded.

Naphtha is comprised of several hydrocarbons, which are extracted by processing it in steam crackers to ultimately produce petrochemicals used by industry.

"The factory will produce its own electricity and we have our own water desalination plant," El-Baz said, adding that his company chose not to depend on any subsidised source of energy to ensure the continuity of supply and to be able to compete in the international market. "We prefer to follow international prices so we know our real capability to compete in the international market."

El-Baz said that in the first years of production they would export the majority of their production. "But our target is to sell to the local market. Our products can be used in all the products used in this building except steel, glass and marble."

The new company will produce 150 tonnes of polyethylene, 100,000 tonnes of propylene, 700,000 tonnes of benzene, 150,000 tonnes of light fuel oil and 159,000 tonnes of heavy fuel oil.

"Our hope is that Egyptian entrepreneurs start manufacturing products that are currently imported, like the simple Ramadan lanterns we currently import from China," El-Baz said.

Production will start by the last quarter of 2019.

As MRC wrote before, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln, according to a senior official at the Ministry of Petroleum. The projects included establishing a factory to produce bio-ethanol from molasses, the output of which would reach 100,000 tons of molasses annually, with investment in the project totaling USD250 mln. The project would be implemented in the next fiscal year (FY), according to the ministry’s plan.
MRC

MOSCOW (MRC) -- Saudi Arabian firm Advanced Petrochemical Company has decided to invest in propane dehydrogenation (PDH) plant with SK Gas in South Korea for the production of propylene, a valuable petrochemical feedstock used in plastics manufacturing, said Business-standart.

The Board of Directors of Advanced Petrochemical Company approved the equity investment of 35% in PDH plant with SK Gas, for the production of propylene in South Korea, through its subsidiary Advanced Global Investment Company (AGIC) which is owned 95% by Advanced and sources of AGIC equity participation will be announced later.

The total cost of the project is expected to be approximately USD1 billion and the project will be financed 40% equity and 60% debt. The project has commenced the construction activities and it is scheduled to start up in the first half of 2016, with a nameplate capacity of 6,00,000 metric tonnes per annum.

The financial impact of above investment is expected after the commencement of commercial operation of the project in 2016.

As MRC wrote previously, in 2012, Advanced Petrochemical Company (Advanced) and Aramco Total Refining and Petrochemical Company (Satorp) signed on a sales agreeent for the supply of 50,000 tonnes per year of propylene from Satorp Refinery to be built in Jubail Industrial City (2) to Advanced. Under this agreement, Satorp will provide Advanced with 50,000 tonnes of propylene annually for an initial period of three years and it will be renewed on an annual basis. And it was expected to commence supply starting from January 1, 2014 and Satorp will supply propylene by a pipeline from Jubail (2) to Jubail (1).
MRC

MOSCOW (MRC) -- Univar Inc., a leading global chemical distributor of industrial and specialty chemicals and related chemistry services, announced that it has reached an agreement with Evonik Corporation to become the exclusive distributor for Evonik personal care products in the Northeastern United States, said Europa.

Evonik will continue to sell their silicone-based products directly. Evonik, a world leader in specialty chemicals, specializes in ingredients and concepts for effective skin, hair, and body care products. The Evonik personal care portfolio consists of a unique and comprehensive range of organic and silicone-based specialties designed as raw materials for personal care products and active ingredients for the protection of skin and hair. This agreement strengthens the successful relationship between Univar and Evonik, and leverages t the combined strength of Univar's distribution service and Evonik's product portfolio.

Univar's personal care solutions offer a comprehensive, global perspective on market trends, formulations and best-in-class distribution alternatives. Univar connects our customers with the products, technologies and information they need to be successful in their market space.

Founded in 1924, Univar is a leading global chemical distributor of industrial and specialty chemicals and related chemistry services. Univar sources from over 8,800 producers worldwide and provides its customer base, made up of 133,000 customers, with a full portfolio of specialty products. Univar operates a network of over 700 distribution facilities throughout North America, Europe, the Asia-Pacific region, and Latin America, with additional sales offices located in Eastern Europe, the Middle East, and Africa.

As MRC reported earlier, in March 2014, Evonik opened its expanded production for precipitated silica in Rayong, Thailand. With this investment, Evonik increased its capacity for precipitated silica for the automotive industry, food and animal feed industry as well as the paints and coatings industry.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik's corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013, more than 33,500 employees generated sales of around EUR12.7 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.

MRC