KBR wins contract to develop world largest crude oil to chemicals project in Saudi Arabia

MOSCOW (MRC) -- KBR, Inc. has announced that it has been awarded a contract by Saudi Arabian Oil Company (Saudi Aramco) and SABIC as the second Project Management Contractor (PMC) to provide Pre-Front End Engineering Design (Pre-FEED), Front End Engineering Design (FEED) and Program Management Services to develop the world's largest fully integrated Crude Oil to Chemicals (COTC) complex, according to Hydrocarbonprocessing.

The project, which will be located in the Kingdom of Saudi Arabia, will be executed from KBR's Houston, Al-Khobar and Chennai offices and is expected to continue through to the start-up of the facility in 2025.

The COTC complex will be based on advanced refining technologies, innovative process configurations and proven conversion technologies that will create a fully integrated petrochemical complex which maximizes chemicals, further diversifying the petrochemical feedstock mix in the Kingdom.

"We understand the strategic importance of the long term investment that Saudi Aramco and SABIC are undertaking in this project and the pivotal role that KBR will have in the overall success of this important program," said Stuart Bradie, KBR President and CEO. "We are excited to have the opportunity to continue our proud legacy in the Kingdom of Saudi Arabia to deliver such 'giga-projects'."

"Given the rapidly changing economic environment we are faced with today, it has never been more important to create meaningful jobs for the growing Saudi population," said Jay Ibrahim, President of KBR Europe, Middle East, Africa and Asia-Pacific. "Through this contract, we will continue our commitment to meeting the objectives of both the In Kingdom local content and Vision 2030 programs."

This award reinforces KBR's position as a market leader in the hydrocarbons industry with a long track record of delivering across all phases of refining and petrochemical mega-projects.

As MRC informed previously, in February 2018, KBR Inc (KBR) was awarded both a license and engineering (LBED) and a proprietary equipment supply contract by Cangzhou Dahua New Materials Co Ltd (CDNM) to build a new polycarbonate plant in Cangzhou City, China. Under the terms of the two contracts, KBR will provide its proprietary PCMAX technology, basic engineering design package and proprietary equipment supply for a 100,000 metric tonnes per annum single train plant in Cangzhou. CDNM intends to expand annual production at a later stage to 200,000 metric tonnes.
MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins and base chemicals, announces a net profit of EUR 240 million for the first quarter of 2018, compared to EUR 313 million in the same quarter of 2017, as per the company's press release.

The strong result came in despite a full Borouge 2 turnaround and was driven by lower but still healthy European integrated polyolefin margins and a solid profit contribution from Borouge. The contribution from Base Chemicals improved compared to the first quarter of 2017, despite a continuing difficult fertilizer market environment.

Net debt increased by EUR 559 million in the first quarter, largely due to the payment of a EUR 700 million dividend to Borealis shareholders. Despite the increase in net debt, Borealis financial position remains strong, with a gearing of 23% at the end of the first quarter 2018.

Total S.A. (“Total”), Borealis AG (“Borealis”) and NOVA Chemicals Corporation (“NOVA Chemicals”) signed definitive agreements to form a joint venture in petrochemicals on the U.S. Gulf Coast. The joint venture – in which Total will own 50% and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50% – will commence subject to customary closing conditions, including receipt of regulatory approvals.

Borealis and United Chemical Company LLP (UCC) signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan. The signing of the JDA comes after the successful conclusion of a pre-feasibility study. The project will now move into the feasibility study phase, which is expected to run until Q1 2019. The scope of the JDA will include the construction of an ethane cracker and 2 Borstar® PE units, with a total capacity of 1.250 ktpa and with a pre-investment in the cracker for future expansion. The final investment decision on the project is expected to be taken in 2020 and start-up would be scheduled for 2025.

A Memorandum of Understanding (MoU) was also signed to investigate a potential cooperation in regards to a 500 ktpa polypropylene project that is currently being implemented by the Samruk-Kazyna Sovereign Wealth Fund. In addition, a government support agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates was signed.
MRC

MOSCOW (MRC) - ExxonMobil said that it has restarted the second liquefied natural gas (LNG) train at its Papua New Guinea liquefied natural gas plant, adding that the plant was operating at normal production rates, reported Reuters.

Exxon said in a statement it expected the facility to reach full capacity in May and confirmed that exports of LNG have resumed.

"Production has been gradually increasing since the Hides gas conditioning plant and one train at the PNG LNG plant restarted earlier this month," Australia's Santos, which owns a 13.5 percent stake in the operations, said in a separate release.

The PNG LNG plant, which Exxon operates and in which it has a 33.2 percent stake, was shut down in the wake of a deadly earthquake in Papua New Guinea's energy-rich interior on Feb. 26.

In mid-April, the company announced that it had resumed production at the facility a fortnight ahead of schedule.

As MRC informed before, in October 2017, ExxonMobil Chemical Company announced that it had commenced production on the first of two new 650,000 tons-per-year high-performance polyethylene (PE) lines at its plastics plant in Mont Belvieu, Texas.

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) - Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan dropped to about 9,700 tonnes in January-March 2018, down 5% compared with the same time a year earlier, according to MRC analysts.
There was a slight increase in demand for PVC in March from local companies. March imports of unmixed PVC amounted to 3,200 tonnes against 3,300 tonnes a month earlier. Thus, overall imports of resin to Kazakhstan totalled 9,700 tonnes in January-March 2018, compared to 10,200 tonnes a year earlier.

Due to the geographical position, the main suppliers of PVC to Kazakhstan were Chinese producers, with the share of about 92% of the local market over the stated period. The second largest supplier of PVC was Russia, during the period under review, Russian PVC supplies did not exceed 800 tonnes.
MRC

March PE imports to Kazakhstan were 10,100 tonnes versus 10,500 tonnes a month earlier, local companies significantly raised their purchasing of low density polyethylene (LDPE) in Russia, whereas purchases of other PE grades decreased. Overall PE imports totalled 31,200 tonnes in January-March 2018, compared to 26,000 tonnes a year earlier. HDPE and LLDPE shipments increased, whereas demand for LDPE subsided.

The structure of PE imports by grades looked the following way over the stated period.

March HDPE imports to Kazakhstan dropped to 8,100 tonnes from 8,400 a month earlier. Local companies managed to raise their PE purchasing in Russia and Uzbekistan. Thus, overall HDPE imports exceeded 24,600 tonnes in the first three months of 2018, up by 33% year on year.

March LDPE purchases by local companies grew to 1,800 tonnes from 1,100 tonnes in February, local companies increased their purchasing of shrinkable film LDPE in Russia. Overall LDPE imports to Kazakhstan were 4,700 tonnes over the stated period, down by 20% year on year.

Purchasing of LLDPE by local companies was 1,900 tonnes in January-March 2018 versus 1,600 tonnes a year earlier.

MRC