Dow becomes the first company to receive a trading license in Saudi Arabia

MOSCOW (MRC) -- The Dow Chemical Company recently became the first company to receive a trading license from the Government of Saudi Arabia, allowing 100% ownership in the country’s trading sector, expanding Dow’s long history of partnership and investment in the Kingdom, said Hydrocarbonprocessing.

The trading license advances Dow’s ability to deliver high-value, innovative products that will benefit Saudi Arabia in the areas of sustainable development, energy-efficiency, oil and gas, alternative energy and water. Saudi Arabia recently approved the issuance of trading licenses to companies outside of the Kingdom in alignment with the country’s strategy to diversify its economy and address challenges brought by lower global energy prices.

His Royal Highness, the Deputy Crown Prince of Saudi Arabia, Mohammad Bin Salman Al Saud, presented the trading license directly to Andrew Liveris, Dow's chairman and CEO, at the Royal Embassy of Saudi Arabia in Washington, D.C. In attendance was Dr. Majid bin Abdullah Al Qasabi, Minister of Commerce and Investment, and Khalid Al-Falih, Minister of Energy and Mineral Resources of Saudi Arabia and chairman of Saudi Aramco.

"Dow is truly honored to be the first company to receive a trading license and advance our legacy of strategic partnerships and investments in the Kingdom," said Liveris. "Dow has been a strategic partner in Saudi Arabia for nearly 40 years and we look forward to playing a key role in helping advance the Saudi’s Vision 2030 plan designed to create a vibrant society and a thriving diversified economy."

Dow is the largest foreign investor in Saudi Arabia, and maintains several joint ventures (JVs) in the region including a JV with Juffali & Brothers, and Saudi Acrylic Monomer Company (SAMCo). Additional strategic investments in the country include Sadara Chemical Company (Sadara), Dow’s JV with Saudi Aramco, agreements with King Abdullah University of Science and Technology (KAUST) to construct a new Dow Middle East Research and Development Center, and a Reverse Osmosis manufacturing facility – the first unit of its kind outside of the United States.

Dow currently has more than 500 employees in Saudi Arabia. The trading license is expected to create additional employment opportunities for the highly educated Saudi workforce, with a particular focus on improving women’s participation in the local workforce.

As MRC informed earlier, Dow Chemical's polyethylene (PE) expansion at its Freeport, Texas, complex is on track for a mid-2017 startup.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

MRC

MOSCOW (MRC) - Russian gas giant Gazprom and oil major Shell will sign a deal on a planned Baltic LNG project on the sidelines of a forum in St. Petersburg later this week, Kremlin aide Yuri Ushakov told reporters on Tuesday, said Reuters.

He said the deal will be signed in the presence of Russian President Vladimir Putin, who will meet Shell's Chief Executive Ben van Beurden at the forum.

Gazprom plans to build the plant, which may produce up to 20 MMtpy of LNG by the end of 2021.

Russian daily Kommersant has reported that Shell would like to acquire 25% to 35% of the project. Ushakov did not elaborate on what the deal would involve.

As MRC informed earlier, in April 2016, Gazprom signed cooperation deals today with Austrian energy group OMV as it tries to secure more lobbying power for its project to expand the Europe-bound undersea gas pipeline, Nord Stream. Russian gas supplies, which account for one-third of European gas consumption, have been increasingly politicized due to Moscow's involvement in the Ukrainian crisis.
MRC

MOSCOW (MRC) -- KBR announced today it has been awarded a bankable feasibility study (BFS) contract by ECOWAS Refinery Liberia Limited (ERLL) for development of a 100 Mbpd refinery located in Buchanan, Liberia, said Chemweek.

Under the terms of the contract, KBR will provide a market study, refinery configuration development and environmental, social and health impact assessment (ESHIA) study. This work is expected to be performed over five months with KBR configuring the optimal refinery configuration and developing the financial model, including capital and operational cost estimates supported by China Huanqiu Contracting and Engineering Corporation (HQC), a subsidiary of China National Petroleum Corporation (CNPC). HQC are advising in tailoring the BFS product for potential future phase Chinese investment.

"KBR is delighted to be able to assist ERLL in the formative stages of this project bringing together the knowledge and capabilities of the One KBR approach," Jan Egil Braendeland, Executive Vice President of Global Sales said.

Chief Tony Izubundu Chinyere, Executive Vice Chairman & Founder of ERLL said "This is an important milestone to progress the development of the refinery project for Liberia. With the engagement of KBR for the bankable feasibility study, a solid basis for the project will be established."

Revenues associated with this contract, which were not disclosed, will be booked into backlog in the second quarter of 2016.

As MRC informed earlier, KBR announced that its SOCAR-KBR joint venture was awarded a significant project management consultancy (PMC) contract for the Heydar Aliyev Baku oil refinery modernization project in Azerbaijan.
MRC

MOSCOW (MRC) -- Malaysia's state-owned oil and gas company, Petronas, is seeking to raise USD7.2 B for its Refinery and Petrochemical Integrated Development (RAPID) project in one of the largest project financing deals from Asia in recent years, said Hydrocarbonprocessing.

Petronas has asked banks for underwriting commitments of at least USD500 MM by next week, LPC reported, citing sources.

A banking source confirmed to Reuters that Petronas has issued a request for proposals for the loan to be used to finance the USD16-B RAPID project.

Petronas did not immediately reply to requests for comment.

The project in the southern state of Johor is set to be Malaysia's largest liquid-based greenfield downstream development. It will consist of a 300 Mbpd refinery and petrochemical complex, with a combined chemical output capacity of 7.7 MMtpy.

As MRC informed earlier, Petronas Chemicals Group Bhd (PCG) cancelled a proposed elastomers project at the Refinery and Petrochemicals Integrated Development (Rapid) project in Johor. In a filing to Bursa Malaysia, PCG said, the cancellation of the project followed a review which was conducted on various key aspects of the elastomers project, including the product's market outlook and projected return on investment.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- Idemitsu Kosan is likely to take its naphtha cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the cracker is scheduled to be shut for maintenance on September 10, 2016. The shutdown is expected to remain in force till end-October 2016.

Located at Tokuyama in Japan, the cracker has an ethylene production capacity of 623,000 mt/year and propylene capacity of 450,000 mt/year.

As MRC reported before, Idemitsu in July 2015 signed an agreement to acquire Shell’s 33.24% stake in its Japanese venture Showa Shell Sekiyu KK for JPY 169 billion (approximately USD1.4 billion).

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC