Output of products from polymers in Russia rose by 7% in Jan-Feb 2018

MOSCOW (MRC) -- Russia's output of products from polymers grew in February 2018 by 5.2% year on year. Thus, this figure increased by 7% year on year in January-February 2018, reported MRC analysts.

According to the Russian Federal State Statistics Service, February output of unreinforced and non-combined films was 86,680 tonnes, compared to 68,100 tonnes a month earlier. Production of film products grew in the first two months of 2018 by 10% year on year to 154,800 tonnes.

Last month's output of porous boards, sheets and polymer films rose to 21,880 tonnes, whereas this figure was 18,880 tonnes in January. Total production of these polymer products increased by 25% year on year over the stated period to 40,760 tonnes.

February output of non-porous boards, sheets and films was 24,950 tonnes, compared to 23,800 tonnes a month earlier. Thus, output of these products reached 48,750 tonnes in the first two months of 2018, which equalled last year's figure.

Last month's production of plastic bottles and flasks grew to 1,442,000 units versus 1,417,000 units in January. Output of these plastic products increased by 2.2% in January-February 2018, totalling 2,859,000 units.

February production of plastic windows and door blocks was 1,220,000 sq metres and 56,500 sq metres, respectively, versus 1,040,000 sq metres and 51,400 sq metres a month earlier. Output of these products was 2,260,000 sq meters and 107,900 sq meters, respectively, over the stated period, up by 13% and -2% year on year, respectively.

February production of polymer pipes, hoses and fittings grew to 35,600 tonnes from 32,000 tonnes a month earlier. Overall output of these products was 67,600 tonnes in January-February 2018, up by 1% year on year.

Petronas secures USD1-billion bridge loan as part of divestment of PRPC stake

MOSCOW (MRC) -- Petronas Chemicals has secured a USD1-billion bridge loan from various local and international banks, fulfilling one of the conditions of its planned divestment of a 50% stake in PRPC Polymers to Aramco Overseas Holding Cooperatif (AOHC), a wholly-owned subsidiary of Saudi Aramco, as per Apic-online.

Late last year, Petronas and AOHC signed a share purchase agreement, valued at around USD900-million, in which the parties would have equal ownership in PRPC Polymers, located within Petronas' Pengerang Integrated Complex in Johor, Malaysia. The transaction had been expected to close by 15 Mar. 2018.

The bridge loan will be used to finance part of the costs to develop, construct, commission and operate polymers and glycol plants in Pengerang, which are currently under construction and are expected to be completed in 2019.

The bridge loan has a tenure of 12 months, with an extension of six months at the discretion of PRPC Polymers.

As MRC informed earlier, Petronas plans to build a C6-based metallocene linear LDPE plant and a low density polyethylene (LDPE)/ethylene vinyl acetate (EVA) swing plant at its greenfield integrated refinery and petrochemical complex in southern Johor state by mid-2019. The proposed metallocene LLDPE will have a capacity of 350,000 tpa, while the LDPE/EVA will have a capacity of about 150,000 tpa. The two plants are part of Petronas' planned Refinery and Petrochemical Integrated Development project in Pengerang at Johor.

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.

Oxea names DOTP production partner

MOSCOW (MRC) -- The global chemical company Oxea aims to annually produce 60,000 metric tons of dioctyl terephthalate (DOTP), a general-purpose non-ortho-phthalate plasticizer, in Europe by the second half of 2019, as per Pcimag.

To that effect, Oxea has entered into a cooperation agreement with Oxxynova, Steyerberg, Germany, a manufacturer of dimethyl terephthalate (DMT). Oxea’s DOTP will be produced at a new, dedicated production unit using the transesterification process, which is superior to conventional esterification. Oxea will supply the key precursor 2?ethylhexanol (2-EH) to Oxxynova and will market the end product DOTP through its own sales channels. The new DOTP production unit will be constructed at Oxxynova’s manufacturing site in Germany, with engineering activities already well under way. DOTP meets the highest environmental requirements. A direct replacement mainly for dioctyl phthalate (DOP) and diisononyl phthalate (DINP), DOTP is used in a wide range of applications such as construction, automotive, coatings and flooring.

"By 2019, Oxea will become the major supplier of DOTP in Europe. Our primary goal is to improve delivery reliability through local production to sustainably meet our customers’ current and future needs for this important non-ortho-phthalate plasticizer. Together with Oxxynova, we are fully backward integrated into the two key raw materials: Oxea is the largest European producer of 2-EH, and Oxxynova is the leading European producer of DMT,” said Max Grudda, Marketing Manager, Plasticizers, at Oxea.

Oxea is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. The company employs more than 1,400 people worldwide and is part of the Oman Oil Co. S.A.O.C., a commercial company wholly owned by the Government of Oman.

Eastern Mediterranean Gas Conference 2018 highlights development in Zohr Field

MOSCOW (MRC) -- More than 150 of the industry’s top executives, government officials, and regional experts met in Nicosia, Cyprus this week to discuss and share their perspectives on energy development in Cyprus and the Eastern Med. The region’s key leaders, involved in determining the natural gas policies of the Eastern Med, attended EMGC for two-days of in-depth discussions on the region’s latest developments, challenges and opportunities, as per Hydrocarbonprocessing.

The conference program was sponsored by Eni, Deloitte, and CyGas and hosted by World Oil, Gas Processing, Hydrocarbon Processing, Petroleum Economist, Pipeline & Gas Journal, and Underground Construction.

Eni and its partners are investing approximately USD12 billion in the field, which is the largest in the region with estimated gas in place of 30 trillion cubic feet. Zohr started production in December 2017, just two and half years after the discovery announcement, and it is expected to ramp up to 1 billion cubic feet per day by mid-2018.

After finalization of the development in 2019, the production volume will increase to an estimated peak of 2.7 billion cubic feet per day in 2020. With the Zohr field recently going into production, Egypt is planning to resume gas exports in 2019 and could become a major gas supplier for the region.

The official conference opening and welcome remarks were presented by Georgios Lakkotrypis, H.E. Minister of Energy, Commerce, Industry and Tourism for The Republic of Cyprus. EMGC 2018 featured keynote speakers: Luca Bertelli, Chief Exploration Officer, Eni and Symeon Kassianides, Chairman, The Natural Gas Public Company (DEFA).

As MRC reported earlier, in February 2018, Italy’s Eni and France’s Total discovered a promising natural gas field off Cyprus, Eni said on 8 February, saying the find looked geologically similar to the mammoth Zohr field off Egypt. Further analysis was required to determine the range of gas volumes and define further exploration and appraisal operations, Eni said.

OMV Petrom estimates 7.5% profit increase this year

MOSCOW (MRC) -- Romanian oil and gas group OMV Petrom estimates a net profit of RON 2.58 billion (EUR 555 million) this year, up by 7.5% (in local currency) versus 2017, according to the group’s budget, as per company's press release.

The revenues for this year are estimated at RON 13.7 billion (EUR 2.94 billion), down compared to last year (RON 14.8 billion). The group built its budget on an average Brent oil price of USD 55 per barrel.

“Considering current market evolution, the average Brent price is expected to increase to USD 60/bbl,” according to the document.

The group also plans to increase its investments significantly this year, to RON 5.5 billion (EUR 1.18 billion), with 84% of the funds going into the upstream segment, which includes the gas project in the Black Sea. Last year, OMV Petrom invested just under RON 3 billion.

Romanian group OMV Petrom proposes EUR 240 mln dividends from 2017 profit