Chemical production in Russia increased by 3.6% in January-May 2015

MOSCOW (MRC) - Production of basic chemicals in Russia for the first five months of the year increased by 3.6%.
The largest increase in the output occurred for the caustic soda and ethylene, as per the Federal State Statistics Service.

According to the Federal State Statistics Service of the Russian Federation, Russia's ethylene production in May was 258,000 tonnes, compared with 244,000 tonnes in April. Total production of ethylene in the first five months of the year was 1.168 m tonnes, up 12.3% year on year. Such a significant growth resulted from the resumption of ethylene production at Stavrolen.

Production of benzene in May decreased to 97,400 tonnes, down 10% compared with April level. Total benzene production over the first five months of the year was 410,800 tonnes, up only 1.6% from the same period in 2014.

The production of xylols in May rose more than twofolds in comparison with April to 107,000 tonnes (47,000 tonnes a month earlier). Production of xylols in January-May 2015 totalled 238,400 tonnes, up 5.2% year on year.

May production of sodium hydroxide (caustic soda) reached 89,900 tonnes (100% of the basic substance), compared with 88,000 tonnes in April. Russia's production of caustic soda exceeded 475,000 tonnes in the first five months of the year, up 10.5% year on year.

May production of mineral fertilizers was 1.762 mln tonnes (in terms of 100% nutrients), up 4.7% compared with the April level. Russia's production of mineral fertilizers in the first five months of the year was about 8.3 mln tonnes, which was 2.9% lower than in the same time a year earlier.


Evonik and Brenntag agree to cooperate on hydrogen

MOSCOW (MRC) -- Evonik and Brenntag agree to cooperate on hydrogen peroxide and peracetic acid for pharma and cosmetics markets, as per the producer's press release.

Evonik Industries is introducing new hydrogen peroxide and peracetic acid grades for drug, medical products, and cosmetics manufacturers in response to increasingly more stringent regulatory requirements in these close-to-consumer industry segments. In Europe, customers will receive tailored solutions, enabling them to provide end consumers with safe and fully certified products.

In addition to their existing product portfolio for the cosmetics industry, Evonik is expanding its spectrum for the pharma industry by offering active pharmaceutical ingredients (APIs) produced on the basis of Good Manufacturing Practice (GMP). As the central point of production, Wei?enstein in Austria is currently being certified according to GMP guidelines. This will make Evonik the first hydrogen peroxide manufacturer in Europe with a fully back integrated production. To date, the site is certified according to ISO 9001, 14001, and 13485.

Brenntag Europe, Middle East and Africa is Evonik’s partner in many European countries for the marketing of hydrogen peroxide and peracetic acid product portfolios in the Personal & Health Care market segment. Product marketing will be launched in the middle of the year, spanning a total of 25 countries in Europe.

As MRC informed earlier, Evonik Industries in June completed the acquisition of Monarch Catalyst (Dombivli, India). All of Evonik’s future catalyst activities in India will be operated through the newly acquired company. Financial details of the transaction have not been disclosed.

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 2015, SIBUR and SAP are executing Russian largest IT project in the petrochemical industry

MOSCOW (MRC) -- The Russian petrochemical group SIBUR and SAP CIS have signed an agreement on strategic cooperation, said SIBUR in its press release.

SIBUR’s CEO Dmitry Konov, and board member of SAP SE Michael Kleinnemeier attended the signing ceremony at the St. Petersburg International Economic Forum. The signing of the strategic partnership agreement is a continuation of successful cooperation between SIBUR and SAP, which began with a pilot project to introduce an ERP system at SIBUR's enterprises and Moscow headquarter. The complexity of the implementation process was driven by tight deadlines and the need to launch the ERP system without interrupting production and key business processes, while also maintaining operation of the SAP ERP related information systems.

As part of the design and implementation process, a uniform mechanism for planning and collecting data was developed for all of the Company's enterprises, and more than 400 scenarios were created to test the most critical operations. Employee training was initiated in conjunction with the design process: more than 1,000 remote and more than 200 full-time courses in 13 areas have been held, and more than 3,000 people are ready to work with the new SAP ERP system.

The decision to choose the platform was based on an analysis of the functionality of information systems, taking into account industry specifics. SAP has operated on the Russian market for many years, and is firmly established as a reliable vendor capable of providing solutions that fully satisfy SIBUR's high requirements.

"A first-rate resource management system is a prerequisite to improving service for both customers and partners, increasing business efficiency through more rigorous planning and control, and making the most of production and financial resources. By implementing a modern, ERP-class global information system based on SAP, we'll enhance the efficiency, visibility and control over the Company's business processes," said Dmitry Konov.

"Most companies in the global petrochemical industry, as well as the majority of the largest Russian energy companies and public companies rely on solutions from SAP in their operations. SAP's customers include 98 of the 100 largest chemical companies in the world. And we are pleased that SIBUR has not only entered their ranks, but also is one of our key customers in Russia now. The signing of this agreement is strategically important not only for the successful development of SIBUR's business, but for the industry as a whole," said Michael Kleinemeier.

The cooperation agreement calls for the implementation of the SAP system in all of SIBUR's production facilities. The project is scheduled for completion by 2019.

By implementing SAP throughout the Company, SIBUR expects to see an increase in the accuracy of production planning models, a reduction in the cost of repairs and maintenance, and a general improvement in the reliability of data.

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.

BASF declares force majeure for polyamide 66 compounds

MOSCOW (MRC) -- Due to production problems in the hexamethylenediamine (HMD)-plant in Seal Sands (UK), BASF, the world's petrochemical major, has declared force majeure for hexamethylenediamine (HMD), AH salt and polyamide 66 polymer on 16 June 2015, reported the producer on its site.

As a result, BASF is declaring force majeure for polyamide 66 compounds (Ultramid A, Capron PA66) supplied from Europe effective 17 June 2015.

At this stage, the company is not in a position to predict how long the force majeure situation will last. BASF will update the customers on the situation as soon as possible. The company announced this in a press release issued today, 18 June 2015.

As MRC wrote previously, on 11 September 2014, BASF shut its No 1 naphtha cracker for maintenance turnaround. The plant remained off-stream for around one month. Located at Ludwigshafen in Germany, the cracker has a capacity of 220,000 mt/year.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Rosneft and BP Sign Production, Exploration and Refining Agreements

MOSCOW (MRC) -- Rosneft and BP signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum, said BP in its press release.

Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft Management Board Chairman Igor Sechin and President of BP Russia David Campbell.

The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day. The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves. Related to this, Rosneft and BP will also jointly undertake the exploration of an associated Area of Mutual Interest (AMI) in the region, covering approximately 115,000 square kilometres.

Within the framework of the Forum, Igor Sechin and David Campbell also signed a heads of terms to pursue a reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture. The document envisages restructuring the JV by dividing between the parties shares in four refineries and associated infrastructure.

As a result of the planned deal Rosneft will double its shareholding in the Bayernoil refinery – to 25% from 12.5%; the MiRO refinery – to 24% from 12%; and the PCK Raffinerie – to 37.5% from 18.75%.

BP in exchange will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie. The closing of the deal is subject to the fulfillment of conditions precedent, which include inter alia regulatory approvals.

The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.

In May 2011, Rosneft acquired a 50% share in a joint venture Ruhr Oel GmbH (ROG) in Germany. ROG holds stakes in four refineries in Germany.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.