Thai LPG trader Siamgas to acquire stake in Myanmar power plant for USD48m

MOSCOW (MRC) -- Siam Gas Power Pte (SPW), a subsidiary of Thai-listed Siamgas and Petrochemicals Pcl, is to acquire a 30% stake in a 230-MW combined cycle power plant in Myanmar at total investment of USD48 mln, as reported by Nationmultimedia.

The company will buy stakes from three existing shareholders, MSN International Limited, Asiatech Energy Pte Ltd and Myanmar Lighting (IPP) Co Ltd. "Demand for electricity in Myanmar has drastically risen thanks to the rapid economic growth and infrastructural development. Therefore, this investment is an opportunity not only to expand into other energy business but also create sustainable income and more value to our shareholders," Jintana Kingkaew, deputy managing director and chief financial officer, said.

The acquisition will be funded through working capital and loans from financial institutions. She said, it would pay USD24 mln to MSN and Asiatech Energy within this month. It expects to pay the other half to Myanmar Lighting in November when SPW is granted permission from authorities in Myanmar to hold shares in the firm. Siamgas and Petrochemicals’ board of directors approved the transaction as the investment would will give the company a stable income and diversify its revenue sources. Its core revenue is generated from liquefied petroleum gas (LPG) trading domestically and abroad. Currently, it has expanded its business in China, Vietnam, Singapore and Malaysia.

SIBUR and SCHMIDT sign a design and procurement contract

MOSCOW (MRC) -- Regarding the already announced project to build a new polyolefin production facility at Tobolsk, both parties officially signed on 6 April 2016 the EP-SS contract at SCHMIDT headquarters / Germany, said SCHMIDT.

ZapSibNeftekhim is a "Greenfield" project of SIBUR Holding PJSC, located at the Tobolsk production site of the Group.

Based on the already finalized FEED study the agreement consists of detailed engineering, procurement and site services to set up a state-of-the-art logistics infrastructure.

Within the next 3 years, a silo farm with 45 silos of 1000 m each, 8 packaging lines integrated into a covered warehouse complex of 50,000 m? and a container terminal with a capacity of 2,600 FEU will be built to handle the yearly throughput of 2m tons of polypropylene and polyethylene.

This new contract is a further major milestone of the already well established partnership between the two companies, both at Tobolsk and other production sites in Russia.

As MRC informed earlier, Russian petrochemical firm Sibur said on Wednesday it had agreed a credit line for EUR 1.6 bln (USD1.7 bln) with a consortium of European banks. The agreement was signed in December 2014, it added in its financial report for last year. The long-term financing will be used to cover part of capital expenditures related to Sibur's ZapSib-2 investment project.

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.

DuPont unveils engineering plastics compounding plant in Shenzhen, China

MOSCOW (MRC) -- DuPont Performance Materials has formally expanded its capacity by inaugurating its largest engineering plastics compounding plant located in the Guangming New District, Shenzhen, Guangdong Province, said Plasticsnews.

The site produces a variety of DuPont products, including Zytel polyamide (PA), Crastin (PBT), Delrin acetal (POM) resins, Bynel® adhesive resins, and Fusabond resins, to primarily serve automotive, industrial and consumer, and packaging markets in both China and the Asia Pacific region.

The new state-of-the-art facility incorporates the latest compounding technologies and features a number of innovations to deliver consistent high quality and increased productivity. Notably, DuPont collaborated closely with the extrusion equipment builder during the research and development phase to create a production setup that allows faster transitions between different product families to provide greater asset flexibility to meet customer needs with shorter delivery cycles. Designed with future expansions in mind, this new compounding facility is the largest in DuPont’s global manufacturing network. The larger extruders installed deliver a higher volume output with increased efficiency. Furthermore, a greater level of automation from silo to extruder is beneficial for product uniformity and quality. Product packaging also is fully automated at the new facility.

"This investment reinforces our commitment to meet the growing needs of our customers and will provide increased capacity, greater asset flexibility and speed to respond to demand changes. The technology advancements enable consistent delivery of high quality product and will strengthen our position as a market leader with innovative, high-quality DuPont products produced in a timely and responsive manner," stated Randy Stone, president, DuPont Performance Materials.

"This is a major investment in DuPont Performance Materials’ largest market, China, and in our fastest growing area, Asia. It complements our extended global operations network and demonstrates our commitment to growth in China and Asia Pacific. DuPont started its China growth journey from Shenzhen 27 years ago. We remain committed to participating and contributing to China’s drive for sustainable development, leveraging DuPont’s scientific innovation capabilities," said Tony Su, president, DuPont Asia Pacific.

As MRC informed earlier, DuPont Clean Technologies’ largest IsoTherming unit has successfully completed the performance test, certifying that the unit is meeting performance guarantees.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.

Iran eying to attract billions from Total to Mitsui for petrochemicals

MOSCOW (MRC) -- Iran is in talks with Mitsui & Co. Ltd. and Total SA as part of its push to attract USD60 bln in foreign investment to more than double the country’s capacity to produce petrochemicals over the next decade, as per Bloomberg.

State-run National Petrochemical Co. plans to increase output capacity to 150 mln metric tons a year by 2026, as per Managing Director Marzieh Shahdaei. That means completing 55 unfinished projects and 28 new production facilities. If it succeeds, Iran would be producing more than twice the current output of Saudi Basic Industries Corp. Iran is seeking to upgrade and expand its energy industry, including petrochemicals, in a drive to rebuild its economy after the easing of international sanctions in January. The Persian Gulf nation has boosted crude output since then to near pre-sanctions levels and ramped up production of natural gas. Iran holds the world’s largest reserves of gas, a raw material for petrochemicals.

Although most of the restrictions on Iran were lifted under last year’s nuclear accord, some U.S. sanctions remain in place, prohibiting transactions in dollars and keeping large international banks at bay.

The government presented about 60 projects to potential investors in December at an event in Tehran with companies including BASF SE, the world’s largest chemical company by sales.

Iran’s current production capacity is 60 million tons a year, up about a third since the end of the last Iranian year on March 20, when it stood at 46 million tons, Shahdaee said. Sabic, by comparison, produced 69.7 million tons annually as of the end of 2014, according to the Saudi company’s website.

Iran generated US$14 billion from petrochemicals produced in the last Iranian year, including USD9.4 billion from exports, mostly to China and Europe, Shahdaee said.

A USD10 billion credit line from Japan to Iran, announced last month, could facilitate the petrochemicals business, she said. In addition to Mitsui and Total SA, NPC is in talks with several German, Italian and Spanish companies, Shahdaee said, declining to identify them because they haven’t signed memorandums of understanding with Iran.

"Companies that ignored us for years are now getting up and coming here," she said. "It’s similar to starting a race. They are positioning themselves in the starting blocks so that as soon as the barriers are removed, they can get working."

As MRC informed earlier, National Petrochemical Company (NPC) and Linde AG of Germany has begun over investment and participation in Iran’s most strategic petrochemical complex. Six month after the implementation of Joint Comprehensive Plan of Action (JCPOA), no official agreement has been signed with a foreign firm for development, investment attraction of reopening of credit and finance lines in the country’s petchem industries.

India wants to create state oil company bigger than Chevron and Rosneft

MOSCOW (MRC) -- The Indian government is planning to unite 13 state oil firms to create a giant corporation, the Economic Times reports.

The revenue of the new company would exceed that of Chevron, and its market value will be bigger than Russia's Rosneft.

According to the media, the new oil major will be the biggest company in India in terms of turnover, net profit, capital expenditure and market capitalization.

The largest piece in the mega-merger is the country’s oil producer Oil and Natural Gas Corporation (ONGC). The other companies are the country’s biggest refiner and fuel retailer Indian Oil Corporation, as well as Bharat Petroleum Corporation, Hindustan Petroleum, GAIL, Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum, Numaligarh Refinery and Oil India.

The six biggest companies from the list have a market cap of USD77 billion. In comparison, the market value of Russia's Rosneft is USD55 billion.

India was considering the merger in 2005, but gave up the idea, as it was decided the big united company may harm competition in country’s energy sector.

In May, ONGC bought a 15 percent stake in Rosneft’s Indian subsidiary Vankorneft for USD1.27 billion. In the fall, Rosneft is expected to close the deal with other Indian companies - Oil India, Indian Oil and Bharat Petroresources - for the acquisition of a 29.9 percent stake in TAAS-Yuryakh that explores and produces oil and gas in Siberia. The deal also includes the sale of a 23.9 percent stake in Vankorneft and could be worth USD5 billion.