Kuwait National Petroleum considering merging Al-Zour refinery and petrochemical complex

MOSCOW (MRC) -- Kuwait National Petroleum Co. (KNPC) is considering combining its planned Al-Zour Refinery with the production of petrochemicals, according to GV with reference to Kuwait News Agency quoting KNPC Chief Executive Mohammad Al-Mutairi.

The Supreme Petroleum Council has given KNPC and parent company Kuwait Petroleum Corp. the green light to proceed with the 615,000-b/d Al-Zour refinery, which is to be built south of Kuwait City. Site preparations have been started and the project has received Kuwait Environment Public Authority approval.

Separate sources reported that the petrochemical production would involve an olefins and aromatics project planned by affiliate Petrochemical Industries Co., for the production of ethylene, ethylene glycol, high-density and linear low-density polyethylene, polypropylene, polyethylene terephthalate and purified terephthalic acid.

Al-Mutairi explained that KNPC’s strategy is to build an integrated refinery and petrochemical complex that would include liquefied natural gas (LNG) import facilities.

Earlier this year, KNPC awarded Foster Wheeler a contract for the pre-front-end engineering design and the front-end engineering design of a new onshore LNG import and regasification terminal that is expected to start commercial operations in 2020.

As MRC wrote before, in June 2014, China's state-owned Sinopec said it had signed a pact with Kuwait Petroleum Co to enhance cooperation in the oil sector, including refining.
MRC

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (suspension and emulsion PVC) rose by 5% over the first eleven months of 2014. The increased output was largerly due to the commissioning of new plant in the Nizhny Novgorod region, according to MRC ScanPlast report.

The overall November production of unmixed PVC in Russia rose to 70,000 tonnes from 48,100 tonnes (scheduled outages for maintenance of two suspension PVC (SPVC)producers - Bashkir Soda Company (BSC) and Kaustik (Volgograd). The overall PVC output of Russian producers increased to 589,100 tonnes from January to November 2014 versus 561,400 tonnes a year earlier. The increased production was caused by a start-up of a new plant in the Nizhny Novgorod region (RusVinyl), BSC also accounted for a considerable increase in production.

The PVC production structure by producers looks the following way over the stated period.

SayanskKhimplast produced 24,900 tonnes of PVC in November versus 26,500 tonnes in October. The plant's overall PVC output dropped by 1% from January to November 2014 and reached 258,100 tonnes.

Bashkir soda company produced 17,700 tonnes of PVC last month compared to 8,900 tonnes in October (because of a two-week shutdown for a turnaround). Due to the increased capacity to 230,000 tonnes per year, BSC raised its production to 200,800 tonnes over the first eleven months of 2014 versus 193,500 tonnes a year earlier. Next year the producer plans to increase its capacity to 240,000 tonnes per year.

Kaustik (Volgograd) produced 7,800 tonnes of SPVC in November, whereas in October the figure was 3,300 tonnes because of nearly a three-week outage for maintenance. The plant increased its PVC output over the said period to 82,900 tonnes from 81,800 tonnes a year earlier.

Volgograd Khimprom completely shut down its production of emulsion PVC (EPVC) in early November because of economic inefficiency, the plant managed to produce a little more than 100 tonnes of resin during a few days of operation. According to unofficial information, the plant's PVC production will never be resumed. The plant's overall PVC production totalled 15,300 tonnes over the first eleven months of 2014.

RusVinyl (JV of SIBUR and SolVin) increased its capacity utilisation in November, the plant's November production rose to 17,500 tonnes from 8,000 tonnes in October. The overall RusVinyl's SPVC production totalled 31,900 tonnes from September to November 2014. The plant's annual capacity is 330,000 tonnes.

MRC

MOSCOW (MRC) -- Ukraine's parliament backed on Sunday the final reading of laws that will simplify tax legislation and impose additional 5% duties on polymer imports, according to a text of the bill imposed by the Government to the Verkhovna Rada and published on the website of the Parliament.

Cabinet registered the bill "On the balance of payments of Ukraine" (N156) and "On amendments to the Customs Code of Ukraine" (N1563) in the Verkhovna Rada on 23, December. The import of food products (product groups 1-24, according UKTVED) will be imposed by an additional duty of 10%, the rest goods (group 25-97) - at the rate of 5%. Polymers and products made of them belong to the group 39.

In addition, the rate of 10% government introduces for the goods imported into the territory by Ukraine nationals. The duties will be introduced during 12 months, "regardless of the country of origin of the goods and trade agreements concluded by Ukraine." The government will release vital goods from the duties collection: natural gas, steam coal, the fuel for nuclear power plants, oil and petroleum products, gold and precious metals, humanitarian aid.

The government says the more than USD1 billion that the higher import duties will generate is essential for next year's draft budget, which is already forecast to show a deficit of 3.7% of GDP.

As MRC reported earlier on 10 December, the Ukrainian parliament submitted a bill to increase the import duty on suspension polyvinyl chloride (SPVC) to 6.5% from 1, January 2015.
MRC

MOSCOW (MRC) -- European polymer markets would continue to come under pressure from new capacity in the US that is being driven by shale gas and other cheap feedstock and energy regions, as per Plasticsnews.

The group, which transports dry and liquid goods and materials around the world, said its dry bulk division had been heavily impacted by what it called "weakness and volatility in the European polymer markets" and plant closures in the UK. Its overall revenue for the year to 30 September 2014 of GBP256.3 mln was 6% lower than in 2013, "mainly due to closures of manufacturing units in the European polymer industry". Interbulk said this included the closure of production plants by its customers, both on a temporary and permanent basis, which affected volumes and equipment balances. Transportation activity, as measured by moves performed, was down 11% year-on-year, and the revenue from temporary storage declined by 18%.

"The major factor was plant closures in the UK," the group said in a statement. "Export opportunities as a result reduced leading to higher empty repositioning back to the continent. It will take some time to mitigate these plant closures given the continued pressure on European polymer producers from regions with access to cheap feedstock and energy.” Interbulk said the European polymer market was still adjusting to the pressures on global flows and pricing from substantial capacity additions using cheap feedstock in the Middle East, "and the wave of new plastics capacity being constructed in the US Gulf based on ethane from shale gas will simply heighten this pressure on the European producers in the coming years".

Loek Kullberg, Interbulk’s chief executive, said the group believed there would be some expansion of European production in the PET sector, where it had a large market share, next year. "However, this market also continues to be challenged by increased imports from outside Europe coinciding with sluggish demand growth from the wider economic issues in Europe. As a result, the revenue outlook remains both uncertain and volatile depending on the success in highly competitive export markets.

As MRC wrote before, most of European chemical industry will face closure within the next 10 years, if regulators do not move to increase the region’s competitiveness, said INEOS' Chairman Jim Ratcliffe in his open letter to President of European Commission Jose Manuel Barroso. Worldwide, the chemicals sector has revenues of USD4.3 trillion. That’s bigger than the GDP of Germany and considerably bigger than the automotive sector at USD2.6 trillion. In Europe, chemicals and automotives share top billing with USD1 trillion each.
MRC

MOSCOW (MRC) -- Impack Pratama Industri, a newly listed construction materials and plastic manufacturer, forecasts slower profit growth next year as the company gears up its expansion plans, reported GV.

"We’re targeting a range of 10 percent to 15 % growth for sales and 10 % for net income," said Lindawati, a director at Impack Pratama Industri, during a press conference in Jakarta on 17 Dec. 2014.

Impack Pratama’s profit jumped almost 60% to Rp 121 billion (USD 9.5 million) in the first half of the year, compared to Rp 76.4 billion in the same period in 2013. Revenue rose 27% to Rp 696 billion.

The company forecasts as much as Rp 290 billion in net income this year, which would reflect a 57% increase from 2013, Lindawati said, adding that revenue is forecast to grow 11% to Rp 1.38 trillion.

As MRC informed before, in late 2013, Thailand’s PTT Global Chemical (PTTGC) signed a joint-venture agreement with Indonesian state-owned energy company Pertamina to set up a petrochemical complex with an investment of around USd4-5 billion (Bt127 billion to Bt158 billion. Both companies will have a 50:50 stake in this downstream-to-upstream project. They will also sign a deal to market products from the project jointly.

Earlier last year, Pertamina signed an agreement to purchase petrochemical products from PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia.

Jakarta-based Impack Pratama Industri first started operations in 1982, when it manufactured products ranging from roofing to building facades. The company primarily serves the domestic market. Around 30 % of its sales are from exports. The company recently went public, offering 150 million of its shares - or 31.04 % of its equity - at Rp 3,800 apiece.
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