Ustyurt Gas Chemical Complex was inaugurated in Uzbekistan

MOSCOW (MRC) -- The Ustyurt Gas Chemical Complex at Surgil, Uzbekistan, has been inaugurated by South Korea's prime minister, Hwang Kyo-ahn; and his Uzbek counterpart, Shavkat Mirziyoyev, as per the government website of Uzbekistan.

The Surgil project was launched in 2006 by Uz-Kor a 50-50 joint venture of Uzbekneftegaz (Tashkent) and a Korean consortium comprising Lotte Chemical (Seoul), with 24.5%; Korea Gas Corp. (Seoul), 22.5%; and GS E&R (Seoul), 3%. The $4-billion complex consists of five plants: a gas-separation plant; ethylene, polyethylene (PE), and polypropylene (PP) production plants; and a power generation and modern infrastructure facilities.

The complex is expected to annually process 4.5 billion cubic meters of natural gas, produce up to 4 billion cubic meters of marketable gas, 387,000 tons of polyethylene, 83,000 tons polypropylene. It is considered that the main consumers will be Eastern Europe, Turkey and subsequently the western regions of China. The resource base of the project is Surgil, Vostochniy Berdah-Uchsay and Severniy Berdah fields.

Consortium of Korean companies joined Uzbekneftegaz to establish the Uz-Kor Gas Chemical joint venture in May, 2008. Ustyurt GCC project was implemented on a parity basis. Korean companies Korea Gas Corporation (Kogas), Lotte and STX Energy participated in the development of the project.

General contractors of the project were the Korean Samsung Engineering, GS Engineering and Hyundai Engineering. The construction of the complex began in 2011. The total cost of the project amounts to USD 4 billion. Participants of the project allocated approximately USD1.4 billion and attracted about USD2.5 billion from financial institutions in order to implement the project.
MRC

MOSCOW (MRC) -- Net demand from the two biggest polyethylene (PE) import markets in Asia - China and India - will decrease, lending to a displacement of Middle Eastern and Southeast Asian material globally, according to market participants on the sidelines of the Asian Petrochemical Industry Conference which runs May 19-20 in Singapore, reported Apic-online.

Traders put net 2016 import estimates of China at slightly more than 8 million mt/year while India is expected to import just under 1 million mt this year, about 20-30% less than last year's volumes.

This was due to upcoming capacity in China, Iran and India amounting to around 3 million mt/year. They will dominate the commodity grade polyethylene market for year to come as Middle Eastern producers starts to manufacture more of the specialty PE grades, the market sources added.

As the biggest polyethylene demand center China gradually imports less, Middle Eastern and Southeast Asian supplies to China would need to find a new home, according to market observers.

As MRC wrote previously, according to new analysis from IHS, a surge in new plastics chemical capacity from low-cost producers in North America (NA), the Middle East and China is driving an oversupply of PE and polypropylene (PP), pressuring margins and potentially altering the global competitive landscape.
MRC

MOSCOW (MRC) -- The global Ethylene Vinyl Acetate (EVA) market was valued at USD7.29 bln in 2014, and is estimated to reach USD11.41 bln by 2023, expanding at a CAGR of 5.1% between 2015 and 2023, as per Plastemart with reference to Transparency Market Research.

Chemically EVA is a co-polymer of ethylene and vinyl acetate monomer where the weight percentage of vinyl acetate ranges between 1% and 40%. Ethylene vinyl acetate has excellent properties such as adhesive strength, elasticity, toughness, flexibility, and impact strength. The chemical compound offers resistance to environmental stress cracks, puncture, and UV radiation. It is widely used for various applications including photovoltaic cells, films, foams, hot melt adhesives, and wires and cables.

The report states that the growth in the flexible packaging films market has propelled the demand for ethylene vinyl acetate. However, the global ethylene vinyl acetate market is expected to be negatively affected by volatility in raw material prices and the availability of substitute compounds. The overall market has a huge opportunity to grow with the rapid expansion of the photovoltaic cell industry.

On the basis of product type, the report segments the global ethylene vinyl acetate market into high EVA, low EVA, and very low EVA. In 2014, low EVA dominated the market due to its extensive applications in foams and films. However, during the forecast period, high EVA is anticipated to be the fastest growing product segment.

The report studies the global ethylene vinyl acetate market across some of the key regions such as Europe, North America, Asia Pacific, the Middle East and Africa, and Latin America. In 2014, in terms of volume, Asia Pacific dominated the overall market with over a share of over 35%. During the forecast horizon, the region is anticipated to witness the fastest growth due to the growing demand from countries such as India, Japan, and China.
Ethylene vinyl acetate is widely used in photovoltaic cell encapsulation and foams used in shoe soles. The aforementioned countries are the major producers of footwear and solar cells and hence, contribute majorly towards the growth of the market.

By 2023, China is anticipated to be the major consumer of ethylene vinyl acetate, followed by the Rest of Asia Pacific and ASEAN regions. North America was the second largest consumer of ethylene vinyl acetate, followed by Europe. In the coming years, Latin America and the Middle East and Africa are expected to be the emerging markets.

We remind that, as MRC wrote previously, South Korea-based Hanwha Total Petrochemical Co. is expanding its business into the global high value-added EVA market by commercial production using the tubular reactor polymerization process for the first time in the world, and investing in facilities, including the expansion of the second EVA plant. Hanwha Total has established EVA production facilities of 320,000 tpa. The company expects to turn over 1.5 trillion won (USD1.28 billion) in solar EVA products alone in the next five years. The company achieved a 35% share in the global solar encapsulment EVA market amounting to 350,000 tons, being ranked first.
MRC

MOSCOW (MRC) -- The ongoing anti-labor reform strike that has paralyzed some sectors of the French oil industry and disrupted fuel supply has not impacted output at ExxonMobil's two refineries, said Hydrocarbonprocessing, citing a spokeswoman of the company.

Striking workers were however blockading its oil terminal in Southern France, the spokeswoman said.

The company operates two of France's eight refineries. The 240-Mbpd Port Jerome-Gravenchon refinery near Le Havre port in northern France, and the 140-Mbpd Fos-sur-Mer refinery near Marseille in the south.

As MRC informed earlier, in mid-May, a 37-year-old contract worker from Brownsville, Texas, died early Wednesday morning near a unit under maintenance at ExxonMobil's Beaumont refinery. The worker was struck in the head and neck area by piping that was being removed from a heat exchanger, a local sheriff's office spokesperson said, according to the report.

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.
MRC

MOSCOW (MRC) -- The increase in Russia's production of finished products from polymers continued in April 2016 under the pressure of seasonal factors. Last month's output of main products from polymers grew by 10.5% compared to March and by 7.9% year on year, reported MRC analysts.

Polymer pipes, hoses and fittings, and non-combined films have accounted for the greatest increase in production for the second consecutive month, whereas the segment of porous sheets continued to show a decrease in the output.

According to the Federal Service of State Statistics, April production of plastic pipes, hoses and fittings rose to 43,600 tonnes from 41,100 tonnes a month earlier. Overall production of these products totalled 147,700 tonnes in January-April 2016, up by 9.5% year on year.

Last month's output of unreinforced and non-combined films grew to 79,300 tonnes from 79,000 tonnes in March. Production of films increased in the first four months of 2016 by 9.3% year on year, totalling 203,000 tonnes.

April production of plates, sheets and non-porous films reached 27,500 tonnes, compared to 24,500 tonnes a month earlier. Overall output of these products rose to 88,800 tonnes in January-April 2016, up by 2.8% year on year.

Last month's production of plates, sheets and polymer porous films was 20,800 tonnes, compared to 19,600 tonnes in March. Overall output of polymer products dropped in the first four months of the year by 0.7% year on year to 75,400 tonnes.
MRC