Shell gets US regulatory approval for takeover of BG Group

MOSCOW (MRC) -- U.S. regulators have given the green light for Royal Dutch Shell's (RDSa.L) proposed USD70 billion acquisition of British rival BG Group (BG.L), the first clearance for the biggest deal in the energy sector in over a decade, said Reuters.

The two companies said on Tuesday the United States Federal Trade Commission (FTC) had cleared the deal.

The deal, which the companies aim to complete by early 2016, will require further regulatory clearances from all the countries BG operates in, including the European Union, China, Australia and Brazil. The companies announced their plans about aquisition in April 2015.

"We're well underway with the anti-trust and regulatory filing processes in relevant jurisdictions around the world and we're confident that, following the usual thorough and professional review by the relevant authorities, the deal will receive the necessary approvals," Shell Chief Executive Officer Ben van Beurden said in a statement.

"We remain on track for completion in early 2016," he added.

Van Beurden has visited in recent weeks Trinidad, Brazil, Kazakhstan and China to discuss the deal.

The deal, which followed the near halving of oil prices since last June, was expected to spark a flurry of mergers and acquisitions in the energy industry, but so far few deals have been announced.

The third-biggest oil and gas deal ever by enterprise value will bring Shell assets in Brazil, East Africa, Australia, Kazakhstan and Egypt. BG has some of the world's most ambitious projects in liquefied natural gas (LNG), where demand is growing as consumers turn away from more polluting fuels such as coal.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

MRC

MOSCOW (MRC) -- Formosa Chemicals & Fibre Corp (FCFC), a Taiwanese producer of polyvinyl chloride (PVC) resins and other intermediate plastic products, is likely to shut its No. 2 paraxylene (PX) unit for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Taiwan informed that the unit is planned to be taken off-stream in mid-July 2015. It is likely to remain off-stream for around one month.

Located at Mailiao in Taiwan, the unit has a production capacity of 580,000 mt/year.

As MRC wrote before, FCFC started a new phenol-acetone plant in China in early January 2015. Located in Ningbo, China, the plant has a phenol capacity of 300,000 mt/year and acetone capacity of 180,000 mt/year.

Formosa Chemicals & Fibre Corporation (FCFC) is a subsidiary of Formosa Plastics Group, the largest private owned enterprise in Taiwan, with annual revenue of USD13.5 billion.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
MRC

MOSCOW (MRC) -- Egyptian Petrochemicals (ECHEM) is planning to complete technical and financial studies of its proposed USD2bn complex to produce propylene and its derivatives, said Chemicals-technology.

The propylene complex will be built on its land in Alexandria. Daily News Egypt cited a senior ECHEM official as saying that the complex will utilise the abundant amount of propane in the region."The purpose is to produce value-added products through different phases to cover local demand and export surplus," the official added.

"The purpose is to produce value-added products through different phases to cover local demand and export surplus."

Alexandria-based Egyptian Natural Gas Company (Gasco) will supply propane to the facility, which is expected to produce 250,000t a year of propylene, which will be processed into intermediate as well as final derivatives.
The propylene complex is planned to be completed by 2020.

ECHEM said it will submit the technical and financial studies results to Boubyan Petrochemicals.

In February, ECHEM and Boubyan Petrochemicals signed a memorandum of understanding to set up petrochemical and phosphate fertiliser projects worth around USD6.8bn.

As part of the partnership, a petrochemical and refinery plant, formaldehyde plant and phosphate and compound fertiliser complex will be built.

The formaldehyde facility in Kafr El-Sheikh will produce 70,000t of urea formaldehyde, polyvinyl acetal, phenol-formaldehyde and melamine-formaldehyde. It will utilise 30,000t of methanol a year.

Planned to be built in Abu Tatur in New Valley, the Phosphate Misr and Abu Qir Fertilizers phosphate and compound fertiliser complex will produce 500,000t of phosphoric acid and phosphate fertilisers.

As MRC reported earlier, last year, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln. 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) -- Jakarta-listed PT Chandra Asri Petrochemical (CAP), the country’s largest petrochemical producer, is in plans to restart its naphtha cracker, reported Apic-online.

A Polymerupdate source in Indonesia informed that the cracker is planned to be restarted towards this weekend. It was shut on June 2, 2015 owing to technical issues.

Located in Anyer, Indonesia, the cracker has an ethylene capacity of 600,000 mt/year and propylene capacity of 306,000 mt/year.

As MRC informed previously, in March 2015, Chandra Asri Petrochemical filed a request with the Indonesian government seeking additional tax incentives for a polybutadiene (BR) plant under construction in Cilegon, Indonesia.

CAP's Petrokimia Butadiene Indonesia (PBI) subsidiary and Michelin in 2013 formed Synthetic Rubber Indonesia as a joint venture to build a USD435-million BR facility in Cilegon. The plant will produce BR using a neodymium catalyst and solution styrene butadiene rubber, with feedstock supplied by PBI. Production is scheduled to begin in 2017.

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) -- Shell Chemical has completed the purchase of land from Horsehead Holding for its planned US$4 bln ethane cracker plant in Monaca, Pennsylvania, as per Chemicals-technology.

Located in the Potter and Center townships in Beaver County, the 1,000ac site was home to Horsehead's zinc smelter facility. Financial terms of the transaction have not been disclosed.

The site boasts access to liquid-rich natural gas resources and water, road and rail transportation infrastructure, power grids, and sufficient land to accommodate facilities and potential future expansions. Shell has consistently noted that receipt of the necessary permits is required before we can reach a final investment decision.

The company has demolished the zinc smelter, and is continuing with the site development. Shell spokesman Michael Marr said that the land purchase forms a key step in the ongoing permitting process.

"Shell has consistently noted that receipt of the necessary permits is required before we can reach a final investment decision," Marr said earlier.

In June 2011, the company unveiled plans to build a petrochemical complex in the Appalachian region. Shell is considering building polyethylene units to meet increasing demands in the region.

"We look forward to working with the communities in Pennsylvania and the gas producers across Appalachia as we continue with our efforts to develop the proposed petrochemical complex," the company said on its website.

As MRC informed earlier, Royal Dutch Shell has completed a revamp and upgrade of its Singapore ethane cracker. The project increased production for the 800,000-tpy ethylene plant on Bukom Island by 20%. The ethylene and olefins unit is also integrated with Shell’s 500,000-bpd refinery.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

MRC