Clariant begins construction at East Java site in Indonesia

МОSCOW (MRC) -- Clariant, a world leader in specialty chemicals, announced its latest double digit million investment at the groundbreaking ceremony held on November 5, 2015 at the Java Integrated Industrial & Port Estate (JIIPE) in Gresik, Surabaya, where construction has officially commenced to develop the first phase of a multi-purpose facility that would allow Clariant to establish its presence even further in Indonesia and Asia, said the producer on its site.

With already 5 production sites and 3 technical centers established in Indonesia, Clariant's new site in East Java — the upcoming chemical industry hub in Indonesia, is going to further reinforce Clariant’s commitment to opportunities in the emerging Asian market.

"This new investment highlights the importance of South East Asia and Pacific as a driver of growth for Clariant. The new site we are about to build here in Surabaya is of strong strategic importance as it will help us to capture future growth in Asia. With this step we continue to add highly competitive manufacturing capabilities while capturing synergies within our established production network of six sites in Indonesia," said Christian Kohlpaintner, Clariant's Executive Committee Member at the groundbreaking ceremony.

By establishing its new site at the JIIPE, Clariant is taking advantage of the industrial park's first-class support in many aspects of its operation. For instance, the deep sea port, toll roads and the international airport located in the vicinity of JIIPE will offer strong logistics support for shipments destined for both domestic and international markets.

"With the excellent infrastructure and logistic connections within Java, other Indonesian islands and neighboring countries, I am confident that this site will strengthen our ability to provide value-added services that meet the needs of our local market and customers," said Hans Herrel, Clariant's Country Head of Indonesia at the groundbreaking ceremony.

The first facility to start operation at the new site is going to be a new bleaching earth plant for Clariant's Functional Minerals Business Unit. It is expected to come on-stream early 2017 with facilities from other Clariant Business Units that could join and co-develop the new site in becoming a multi-purpose facility for Clariant in the future.

As MRC informed earlier, Clariant, a world leader in specialty chemicals, today entered into an agreement with an intent to acquire a part of Vivimed Labs Limited's personal care portfolio, subject to necessary regulatory, statutory and other approvals, as may be required.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

Rosneft gets Rb1 trillion as advance payments for oil supplies

MOSCOW (MRC) -- Rosneft received RUB 996.5bn (approx. USD 15bn at the CBR's official rate at the end of Q3) as an advance payment under long-term contracts to supply oil, according to the company's RAS reportas per Tradingcharts.

This is the biggest amount raised by Russian companies targeted by sanctions since the Ukraine crisis unfolded. The newspaper did not specify where that money came from. At the same time, Rosneft's major buyers include China National United Oil Corporation, Glencore, Vitor, Trafigura, and Tonner S.A.R.L. In 2013, the oil giant signed a 25-year agreement with CNPC worth USD 270bn, the advancement for which was estimated at USD 70bn by President Vladimir Putin.

Rosneft was indeed expecting an advance payment from CNPC in the near future, said VP for Economy and Finance Svyatoslav Slavinsky in October 2014. The money came from the Chinese company, UBS analysts believe.

As MRC informed earlier, Rosneft said daily production increased by 1.4% up to 5.14 mboed in the 9 months of 2015. Over the period production of hydrocarbons reached 189.6 mmtoe (5.14 mboed). The Company added that the level of production was ensured by accelerated drilling program, including increase in share of horizontal drilling with hydraulic fracturing, sidetracking, implementation of simultaneous-separate production and injection, measures of oil inflows stimulation.

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.
MRC

Celanese to expand advanced materials portfolio with addition of PEEK

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced it will expand the high end of its engineered materials product portfolio with the initial introduction of two premium industrial grades of Polyether Ether Ketone (PEEK) in the second half of 2016, as per the company's press release.

"With the addition of this ultra-high performance polymer to one of the world's broadest, most technically proven materials product lines, Celanese will be able to deliver greater value to molders, extruders and end users in key industries including automotive, electronics, electrical, industrial and medical," said Scott Sutton, president of Materials Solutions for Celanese. "This is highly complementary for our customers to the current offering that Celanese has in the high performance polymer space including Vectra LCP and Fortron PPS that can enable growth for our customers."

This expansion of the Celanese engineered materials portfolio with the initial introduction of two premium PEEK grades to include high flow PEEK and high flow reinforced PEEK will benefit customers as follows:

Molders and stock shape manufacturers: many intricate parts with thin walls and tight tolerances must be machined one at a time. Celanese's advanced flow technology will allow for these components to be molded, thereby reducing cycle time and end part cost.

Tier suppliers and OEMs: access to parts with improved thermo-mechanical properties, such as modulus, strength and heat distortion temperature, for use in high heat service conditions or in miniaturization applications requiring intricate, precise components.

Celanese will initially commercialize two premium industrial grades of PEEK with a planned product launch in the second half of 2016.

As MRC informed before, in December 2014, Celanese Corporation announced the opening of a new sales center in Istanbul, Turkey, to support customer growth of the company's intermediate chemistry, engineered materials and emulsion polymers portfolio in Turkey and the greater European region.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of USD6.8 billion.
MRC

Surging demand from packaging industry drives global ethylene market

MOSCOW (MRC) -- Global ethylene market (Industry) was valued at USD156 bln in 2013 and is projected to reach USD234.2 bln by 2020, expanding at a CAGR of 6% from 2014 to 2020, as per Plastemart with reference Transparency Market Report.

The global ethylene market is fueled by growing demand in packaging applications, booming construction industry, and rising demand from the automotive sector. The mass production of ethylene by catalytic oxydehydrogenation is anticipated to boost its demand over the next five years. However, regulatory issues and volatile crude oil prices are projected to hamper the growth of the ethylene market during the forecast period. By application, the ethylene market is categorized into ethylene oxide, polyethylene, ethylene dichloride, ethylene benzene, and others such as alpha olefins and vinyl acetate.

Polyethylene accounted for a market share of over 50% in 2013, making it the leading application segment of the ethylene market. Polyethylene finds extensive use in the production of plastic. Ethylene oxide, on the other hand, is projected to become the fastest developing segment by 2020 driven by rising consumption of ethylene glycol, its derivative. The ethylene market is segmented on the basis of end user into automotive, agrochemical, packaging, construction, textile, and others such as soaps and detergents.

In 2013, packaging held a share of over 30%, making it the largest end-user segment of the ethylene market. The growing use of various forms of polyethylene such as low density polyethylene, high density polyethylene, PVC, and linear low density polyethylene in the manufacturing of packaging products is driving this end-user segment.

The global ethylene market is geographically divided into North America, Latin America, Europe, Asia Pacific, and Rest of the World. Accounting for a share of more than 30% in 2013, Asia Pacific dominates the global ethylene market. This region is also forecast to become the most rapidly developing market for ethylene by 2020, driven by growing demand from automotive, packaging, and construction industries. A large portion of the demand for ethylene stems from emerging economies such as India, China, Thailand, Malaysia, and Vietnam.

Developed regions such as Europe and North America are anticipated to register moderate growth over the forecast period owing to a slow yet steady economic recovery. While Latin America is expected to develop at an average rate over the next five years, the Rest of the World region is anticipated to grow at a considerable pace. Some of the leading players competing in the global ethylene market are Royal Dutch Shell Plc, Exxon Mobil Corporation, Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries, INEOS Group AG, Total S.A., China Petroleum & Chemical Corporation (Sinopec Corporation), The Dow Chemical Company, National Petrochemical Company (NPC), and Chevron Phillips Chemical Company LLC.

As MRC wrote previously, a study by Ceresana analysis the consequences of the shale gas boom in the USA until 2021. The shale gas boom in the USA has far-reaching consequences for the global ethylene market: the substantial decline of prices for ethane led to the construction of several new ethane crackers. In contrast to other feedstocks such as naphtha or propane, the cracking of ethane yields a rather high amount of ethylene. Ceresana forecasts revenues generated with ethylene to rise by 3.2% p.a. until 2021 and thus at much lower growth rates than in the previous eight year period. Following a growth rate of 9.1% p.a. between 2005 and 2013, the Middle East became a center of the global ethylene industry.
MRC

Rosneft, Exxon have long-term partnership - Russian dep minister

MOSCOW (MRC) -- Russian First Deputy Natural Resources Minister Denis Khramov said on Monday that partnership between Russia's Rosneft and U.S. firm ExxonMobil was "long-term", said Reuters.

"I don't think that currently... there is a search to replace Exxon," he told reporters when asked about the talks between Rosneft and Chinese firms on their possible participation in Rosneft's offshore Arctic projects.

Rosneft has suspended drilling in Arctic Kara Sea in 2014 after Exxon withdrew from the project because of Western sanctions over the Ukraine crisis.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.

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.
MRC