Natpet to shut PP plant in Saudi Arabia for maintenance

MOSCOW (MRC) -- Saudi Arabia’s National Petrochemical Industrial Company (Natpet) is in plans to shut a polypropylene (PP) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant is likely to be shut on January 25, 2015. It is likely to remain off-stream for around one month.

Located at Yanbu in Saudi Arabia, the plant has a production capacity of 400,000 mt/year.

As MRC informed previously, Natpet restarted its PP plant in Yanbu with the capacity of 400,000 mt/year on 11 January, 2014. It was shut on January 4, 2014 owing to unplanned issues.

We also remind that this plant is producing a wide range of PP product mix of (homopolymers, random & heterophasic copolymers) that is suitable for a wide variety of applications. Natpet has acquired state of the art Spheripol process to produce polypropylene from LyondellBasell, which is the world leader in polypropylene technology.
MRC

MOSCOW (MRC) -- Global chemicals company Huntsman issued a statement today in response to inquiries regarding the business impact of lower priced oil, said Hydrocarbonprocessing.

From CEO Peter R. Huntsman: "In an environment where oil prices are sustainably low, Huntsman will emphatically be a beneficiary over the long term," he said. "Many of our raw materials are derived from the oil refining process.

"We expect our margins to improve as the cost of our raw materials decrease," Huntsman continued. "We also expect a meaningful working capital release which will help strengthen our balance sheet. Lower priced oil should provide more discretionary spending for consumers; approximately one third of our business is consumer oriented.

"We have a number of growth projects underway; I expect our business to improve throughout 2015."

Huntsman is a global manufacturer and marketer of differentiated chemicals with 2013 revenues of approximately USD13 billion, including the acquisition of Rockwood's performance additives and TiO2 businesses.

MRC

MOSCOW (MRC) -- Grupa Azoty has signed a contract with Uhde Inventa-Fischer of Germany under a project to construct a new Polyamide 6 Plant in Tarnow, as per the company's statement.

The contract is for the purchase of licences, process design and project equipment. The capex budget for the project totals PLN 320m. The project is scheduled for completion in December 2016 and will add 80,000 tonnes to Grupa Azoty’s annual polyamide production capacity.

Products from the new plant will meet most exacting global quality standards. The applied engineering and technical solutions will enable precise control of the production process and help achieve strong performance indicators.

"The project is important both in terms of its scale and strategic implications for Grupa Azoty. Its primary effect will be to extend the product chain and increase our output of engineering plastics that deliver better margins," commented Pawel Jarczewski, President of the Grupa Azoty Management Board. "Equally important is the fact that it is being launched within the Krakow Special Economic Zone, which is bound to bring us tangible economic benefits," Mr Jarczewski added.

The new investment in Tarnow means greater job security and improved working conditions for the current personnel of Grupa Azoty involved in the caprolactam manufacture process. Increased production of polyamide 6 in Tarnow will also create an opportunity for the development of new local plants operating as processors of plastics into specialised products.

In the next four years, Grupa Azoty will invest over PLN 904m in Tarnow alone. Apart from the PA plant, Grupa Azoty also plans to place in service a fertilizer granulation unit with a value of PLN 140m by the end of 2016. Other investment plans include upgrade of the unit for production of C-none from phenol, extension of the polyamide processing unit, and marketing a next-generation iron-chromium catalyst.

As MRC reported earlier, in December 2013, Grupa Lotos and Grupa Azoty signed an agreement on the future formation of a special purpose vehicle to conduct a comprehensive feasibility study on the construction of a new petrochemical complex, in the vicinity of both Lotos and Grupa Azoty's existing installations. The project’s value is estimated at approximately PLN 12bn, making it the largest investment in the Polish industrial sector in recent years.
MRC

MOSCOW (MRC) -- Mexican state-run oil giant Petroleos Mexicanos said Thursday it has requested permission from the U.S. Commerce Department to import light crude to Mexico from the U.S., with the aim of improving output at its Mexican refineries, said the Wall Street Journal.

The significant increase of light crude production in the U.S. presents an opportunity to mix that oil with Mexican heavy crude, and thus boost refining efficiency in Mexico, the company known as Pemex said.

Pemex anticipates that it could import up to 100,000 barrels a day of light crude and condensates under the proposal, which it calls a "swap."

America has a long-standing ban on exporting crude-oil pumped in the U.S., but the Commerce Department recently issued new rules clarifying that some ultralight oil can freely flow out of the country to foreign buyers. Dubbed condensate by the energy industry, this light oil no longer needs to be fully processed at a refinery before it is shipped out. Energy experts estimate that up to one million barrels of light oil pumped primarily in Texas is now eligible for export.

The Mexican company exported, on average, 803,000 barrels a day of heavy crude to the U.S. last year to be processed at refineries there that are equipped to handle heavy crude. Pemex said the proposal doesn’t imply a commitment to export additional crude to the U.S.

Pemex’s proposal would reduce transportation costs and improve refining margins, the company said, while maximizing the refining potential of facilities in both countries.

The proposal was presented to U.S. authorities in 2014 and discussions are ongoing, the company added.

After reaching record levels of crude exports in 2004 of around 1.8 million b/d, Pemex’s exports last year were just over 1.1 million b/d.

As MRC wrote before, Pemex and Exxon Mobil Corp signed a non-commercial agreement on Thursday to jointly explore potential upstream and downstream business opportunities. The agreement comes against the backdrop of the landmark constitutional reform, signed into law under Mexican President Enrique Pena Nieto last year, that ended Pemex's 75-year-old oil and gas monopoly.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

MOSCOW (MRC) -- Dr. Tammo Boinowitz took over the responsibility as Head of Evonik’s Personal Care business line, effective January 1, 2015, as per the company's press release.

He is succeeding Dr. Dietmar Moll, who will move into a new role and take care of strategic projects in the future. Dr. Boinowitz was appointed to the position after successfully leading the Comfort & Insulation business line for three years.

Dr. Boinowitz, who holds a PhD in chemistry, joined the former Goldschmidt AG in 1995. After holding a number of positions in Research & Development and Application Technology, he worked as Global Technical Director of today's Comfort & Insulation business line from 2003 to 2006 and was assigned as Business Director APAC to the business line's Asia-Pacific business from 2006 to 2008, working from Shanghai.

After leading strategic growth projects for the Consumer Specialties business unit and working for the Evonik Corporate Development Division, he was appointed Head of the Comfort & Insulation business line in December 2011.

As MRC wrote earlier, Essen-based Evonik Industries, a leading specialty chemicals manufacturer, is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building. Silanes are used in the electronics industry, in the tire industry, for the production of adhesives and sealants as well as plastics, and in the construction industry.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. 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 EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC