Thai PTT reviews project size, investment of delayed refinery plan in Vietnam

MOSCOW (MRC) -- Thailand's state-controlled PTT has decided to review plans to develop a large refining and petrochemical project in Vietnam's Binh Dinh province as it needs to reconsider the project size and investment, an official from the company's investor relations department said in an email statement, reported Apic-online.

The delay of the proposed 400,000 b/d Victory refining and petrochemical project in Binh Dinh is mainly due to the uncertainty in global oil prices and Vietnamese partners, the official said, without clarifying on the local partners.

PTT said last month it will continue to seek a Vietnamese partner to join the project.

In the feasibility study submitted to the Vietnamese government in September 2014, the Thai company proposed building a fully integrated refinery and petrochemical complex in Binh Dinh with a crude processing capacity of 400,000 b/d, or 20 million mt/year.

The IR official now said the company remains committed to the project but will finish a review on it by year-end.

"However, PTT will continue with the project and we are considering optimizing the project size and investment scope. Regarding the timeline, we plan to review the configuration and project size, and target to finish by the end of the year," said the official.

A senior expert from Vietnam Petroleum Institute, the research arm of state-owned PetroVietnam said in May that PTT and its potential joint venture partner Saudi Aramco have hired consultants to assess the feasibility of the Victory refining and petrochemicals project.

Aramco Asia, working on behalf of the partners, hired VPI for the study and has accepted its findings.

The PTT IR official has yet to provide a reply on whether Aramco is still cooperating with PTT in the Victory project as of Friday.

Binh Dinh provincial officials on June 27 had a meeting to discuss the project with PTT, according to the provincial government website.

Vietnam's Saigon Times Online on Wednesday cited its own source in Binh Dinh as saying PTT is likely to scale down half of the project size.

The Thai company no longer mentioned the search for a Vietnamese partner during the meeting earlier this week with Binh Dinh officials, which the source said as not necessary anymore as the project size will be reduced.

In another development, PTT said on June 17 that its board of directors has reviewed the company's investment plan to reflect the operation and current circumstances as well as effective budgeting by lowering the 2016 investment plan to Baht 43,307 million (USD1.23 billion) from Baht 50,839 million. The reduction is mainly from investment projects in the natural gas and infrastructure sectors.

As MRC wrote previously, in May 2016, PTT announced that the company planned to boost sales in Southeast Asia to offset weak demand from China, the company's biggest overseas market. Thus, PTT Global, the petrochemical flagship of Thai top energy firm PTT Pcl, planned to increase exports to the region to 10-15 percent over the next two years from 5 percent now, said Chief Executive Supattanapong Punmeechaow.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.p
MRC

MOSCOW (MRC) -- Paul Booth, chairman of SABIC UK, who has also held senior positions at Huntsman and ICI, is retiring after nearly 50 years in the industry, said Chemweek.

He started his career in 1967 as an apprentice at ICI. Booth was previously honorary president of the Society of the Chemical Industry in the UK, is a former member of the Chemical Industries Association Council and the European Chemical Industry Council, and a former board member for Plastics Europe North.

Having started his career as an apprentice at ICI on Teesside in 1967, his extensive career has seen him take on a number of senior executive roles across Teesside and Europe, latterly as Senior Director, Government Relations & Public Affairs for SABIC in Europe and was also chairman of the North East Process Industry Cluster (NEPIC), deputy chair of the National Skills Academy, chairman of Redcar and Cleveland College and a board member of Teesside-based technical training group, TTE.

In 1999, after Huntsman bought ICI’s petrochemical division, he was appointed as the American company’s European Vice President of manufacturing and technology, later becoming president of SABIC UK Petrochemicals when the Saudi Arabian giant bought the existing Teesside facilities in 2006.

As MRC informed earlier, SABIC UK embarked on a major plant conversion at Teeside - changing its Olefins cracker to take US shale gas. The shale gas feedstock will be cheaper than the naphtha fuel its uses at present.

SABIC UK LTD, based in Redditch, South West Birmingham has been operating in the UK for nearly 35 years. The company have established a very strong position in the polyethylene and polypropylene business with a market share of around 18%.

Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Saudi Arabia wants to expand its investments in China's energy industry, said Reuters, citing Energy Minister Khalid al-Falih.

Falih's comments were made in an emailed statement after discussions with China's Vice Premier Zhang Gaoli and other officials in Beijing during a G20 ministerial meeting.

"Saudi Arabia is very keen to elevate their partnership in the energy sector to the highest level," he was quoted as saying in the statement. He said he hoped Saudi investments could increase to cover all Chinese provinces and that there was room to grow bilateral trade in both energy and other hydrocarbons products such as petrochemicals.

Falih also said he wanted to see new investment projects carried out by Saudi and Chinese sovereign wealth funds, and added that the two countries shared interest in crude oil storage, mining, renewable energy and industrial development.

Oil producers' battle for market share in Asia, and particularly in China, the world's No. 2 consumer, has heated up since the return of Iranian crude to the market after sanctions were lifted on Tehran this year.

Both oil giant Saudi Aramco and petrochemicals conglomerate Saudi Basic Industries Corp (Sabic) have joint venture businesses in China and new projects under development. In January Aramco said it was also in advanced talks to invest in refineries in China. Sabic said in May it had agreed to build another petrochemical factory there.

As MRC informed earlier, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. are one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods.
MRC

MOSCOW (MRC) -- Unipetrol (Prague), a leading petrochemicals producer in the Czech Republic, has appointed Andrzej Modrzejewski as new chairman, as per com[any's press release.

He replaced Marek Switajewski. Unipetrol has also appointed Krzysztof Zdziarski as member of the board. Switajewski joined Unipetrol, a subsidiary of PKN Orlen (Plock, Poland), in 2010 and in the following year became chairman of the board and CEO of Ceska rafinerska. He held the role of CEO since April 2013. Modrzejewski, 65, has served among others as an Investment Director and Chief Executive Officer at National Investment Fund E.Kwiatkowski (1995-1999) and subsequently from 1999 to 2002 as a Chairman and CEO of PKN ORLEN. Prior to joining Unipetrol he worked in private advisory and investment business. Andrzej Mikolaj Modrzejewski finished University of Mikolaj Kopernik in Torun – Master of Physics, University of Warsaw and International Business School in Warsaw – Master of Business Administration (MBA) and University of Wisconsin in La Crosse, USA - major in corporate and investment finance.

Krzysztof Zdziarski (54) joined the Board of Directors of Unipetrol having previously served as an Executive Director of Refinery Production in PKN ORLEN. Krzysztof Zdziarski has extensive experience in establishing and development of medium and large companies. From 1999 to 2006 he served as Chief Executive Officer of UPS POLSKA and later as Chairman of the Board of Directors of PEKAES SA Group (2006 – 2010). From 2010 to 2015 he was Chairman of the Board of Directors of ORLEN Poludnie. Krzysztof Zdziarski graduated from the University of Warsaw, Faculty of Economic Sciences – Theory of Economics and Management.

As MRC informed earlier, Unipetrol AS has started construction on a grassroots polyethylene (PE) production unit at its Chempark Zaluzi petrochemical complex in Litvinov, Czech Republic. The company officially broke ground on construction activities for the 270,000-tonnes/year PE3 unit during a ceremony held on June 7, Unipetrol said. The unit remains on schedule to be commissioned shortly after construction reaches mechanical completion in mid-2018.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.

MRC

MOSCOW (MRC) -- Kuraray has realigned its distribution channels for elastomers in Europe. As of 1 July 2016 the Japanese speciality chemicals company takes over the sales of its elastomer products previously executed by Marubeni in Europe, as per GV.

A distribution agreement between the Business Unit Elastomer of Kuraray Europe GmbH, Hattersheim, and Marubeni Europe plc, Dusseldorf, was terminated on 30 June 2016.

"We firmly believe that the realignment of our European distribution channels represents a great opportunity for further growth together with our customers," says Jorg Oertel, Director Elastomer Business, Kuraray Europe GmbH. "With our high performance elastomers we are extremely successful in markets with high potential, but also with increasingly complex applications and higher requirements regarding competent support. Our goal for each application therefore is to supply not only a perfectly matched product but also tailored technical support and service."

Jan-Sebastian Weber, Manager Marketing & Sales, adds: "We at Kuraray Europe GmbH are committed to the success of our customers. Our Business Unit Elastomer is optimally positioned to put together a consistent package for our customers. In addition to our innovative products this includes a reliable support with profound technical expertise and in-depth market knowledge."

Other existing distribution agreements are not affected by the reorganisation.

We remind that, as MRC reported earlier, in April 2016, Kuraray acquired Australia's Plantic Technologies. With this, Kuraray expands into bio-based barrier materials, which meet the increasing global demand of bio-based food packaging materials. Kuraray was the first to commercialise the high-performance barrier resin, EVAL (ethylene vinyl alcohol copolymer), which it launched in 1972. EVAL boasts the highest level of gas barrier properties of all plastics and is the market leading barrier resin used in food packaging and industrial barrier applications. In addition, Kuraray developed and launched Kurarister a transparent barrier film for retort applications.

Kuraray produces specialty chemicals, fibres and other materials, including functional resins and films, synthetic isoprene chemical products, synthetic leather, vinylon fibre and polyester fibre.
MRC