Chandra Asri Petrochemical plans to build naphtha refinery in Banten, Indonesia

MOSCOW (MRC) -- Barito Pacific's subsidiary Chandra Asri Petrochemical (CAP) is reportedly planning to build a naphtha refinery at its Cilegon complex in Banten, Indonesia, with an estimated investment of USD740m, said Chemicals-technology.

The company is now undertaking a one year preliminary study for the proposed project, which would reduce its reliance on naptha imports. CAP corporate relations vice-president Suhat Miyarso was quoted by Jakarta Post as saying: "We are going to build a mini-refinery for naphtha production in 2018, with preliminary studies starting this year."

Planned to be located on an 80ha area, the refinery is expected to produce 100,000 barrels of condensate a day, the equivalent of producing 2.5 million tonnes (Mt) of naphtha a year. "The refinery is expected to produce 100,000 barrels of condensate a day."

The company plans to use 1.3Mt of naphtha as feedstock to produce olefins. It currently imports 1.7Mt of naphtha a year from Middle Eastern countries and Singapore. CAP plans to finance the preliminary study using USD250m funds allocated for capital expenditure this year.

The funds will also be used to finalise the USD380m expansion of a naphtha cracker at the Cilegon complex to increase ethylene production capacity to 860,000 kilotonnes. It will also facilitate construction of a synthetic rubber plant in partnership with French firm, Michelin.

The rubber plant is expected to produce 100,000t of butadiene, a raw material for styrene butadiene rubber, acrylonitrile butadiene system and styrene butadiene latex. The upgraded naphtha cracker and butadiene plant are expected to commence operations next year.

As MRC wrote before, Moody's Investors Service, changed the outlook of Chandra Asri Petrochemical Tbk (CAP), the country’s largest petrochemical producer, to stable from negative. Concurrently, Moody's affirmed CAP's B2 corporate family rating (CFR).

Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
MRC

MOSCOW (MRC) -- Evonik Industries, a leading specialty chemicals manufacturer, has appointed BCD Chemie GmbH as the new distributor for DEGALAN products in coating and ink applications in Switzerland, as per the company's press release.

BCD Chemie GmbH, based in Hamburg (Germany) is the successor of Rohm Schweiz GmbH and will become the exclusive distribution partner for DEGALAN in Switzerland.

DEGALAN products offer convincing benefits in all applications where the main priorities are unsurpassed weather resistance, colorfastness, high brilliance, hardness and scratch resistance.

For decades, BCD Chemie has concentrated on marketing and distribution of industrial and speciality chemicals and is one of the leading suppliers in this segment.

As MRC wrote before, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

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

MOSCOW (MRC) -- Ineos has announced a deal to acquire a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences), reported the company on its site.

This consists of a 60% interest in three Petroleum Exploration & Development Licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190).

In Scotland, Ineos will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset.

In addition, Ineos has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).

Gary Haywood, CEO of Ienos Upstream, says "This is a great opportunity to acquire some first class assets that have the potential to yield significant quantities of gas in the future. INEOS believes that an indigenous shale gas industry will transform UK manufacturing, and that we can extract the gas safely and responsibly. We are pleased to have agreed this deal with IGas. Ineos’s scale, asset position across the UK, US shale gas expertise, and our expertise in managing oil and gas facilities will be a great match with IGas’s existing onshore asset base, and significant exploration and production capability".

Ineos is paying IGas a cash sum of GBP30 million and additionally committing to fund a two phase work programme of up to GBP138 million to develop the sites. IGas will reimburse its share of the work programme to Ineos upon commencement of commercial production.

Gary Haywood also adds, "This is a further significant step for Ineos in its plan to become the biggest player in the UK shale gas industry. We believe shale gas could revolutionise UK manufacturing and Ineos has the resources to make it happen, the skills to extract the gas safely and the vision to realise that everyone must share in the rewards for UK shale gas to be successfully developed".

As MRC wrote before, in october 2014, Ineos Upstream Limited signed an agreement with Reach Coal Seam Gas Limited (Reach CSG) to acquire an 80% interest in Petroleum Exploration and Development Licence (PEDL) 162, in the Midland Valley of Scotland.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Synthos Dwory, the Polish producer of polystyrene (PS), announced an increase of EUR200-210/tonne, excluding VAT, in export prices of expandable polystyrene (EPS) last week, according to ICIS-MRC Price report.

Raising prices, Synthos cut its export quantities to Ukraine. Not all Ukrainian converters had the opportunity to purchase the required quantities of material in Poland. The plant's increase in contract price for March shipments was caused by higher feedstock prices.

As reported earlier, March contract styrene monomer (SM) prices in Europe rose by EUR175/tonne. SM prices were agreed on FOB Amsterdam-Rotterdam-Antwerp (ARA) basis and were at EUR1,170/tonne FOB, excluding VAT. All producers of this polymer in Europe increased their prices of PS and styrene plastics, following higher SM prices.
MRC

MOSCOW (MRC) -- Hungarian oil and gas company MOL said yesterday that it is applying its squeeze-out right for shares of petrochemicals company TVK, reported Hungarian news agency MTI.

The agency added that MOL wound up a voluntary public purchase offer for the shares on Friday, raising its stake in TVK from 94.86% to 99.1%, providing all preconditions were met.

In the squeeze-out, which runs until March 23, MOL is offering shareholders the same price as in the public purchase offer: HUF 4,984, MTI added.

As MRC informed before, MOL made a voluntary public tender offer on petrochemical works TVK. It bid HUF 4,984 for each of the outstanding ordinary shares of TVK based in Tiszaujvaros in eastern Hungary.

Tiszai Vegyi Kombinat (TVK) is a Hungarian manufacturer of olefins and polyolefins such as polyethylene and polypropylene. Feedstock is supplied by MOL of which TVK is a subsidiary and which also processes a major portion of resulting by-products from the olefins plant.

MOL previously said Hungarian authorities had dismissed the allegations against MOL, which now holds a 49.1% share of INA. Hungary's government holds a 24.6% stake in MOL.

MRC