BASF to increase capacity for Alkylethanolamines in Ludwigshafen

MOSCOW (MRC) -- BASF will increase the production capacity of Alkylethanolamines (AEOA) by 20% at the BASF Verbund site in Ludwigshafen, Germany, as per Hydrocarbonprocessing.

After the start-up in 2020, BASF’s global annual nameplate capacity of AEOA will be more than 110,000 metric tons per year at its production facilities in Ludwigshafen, Germany; Geismar, USA; and Nanjing, China.

"As one of the world’s leading suppliers of amines, we continue to support the fastgrowing customer demand for products of our Alkylethanolamine portfolio by increasing our capacity.

The demand is particularly high for high-performance products in the Water- and Gas Treatment industries", said Dr. Andrea Frenzel, President, BASF Intermediates Division.

"The additional capacity in Ludwigshafen will primarily serve our strong European customer base", adds Dr. Frank Stein, Senior Vice President, BASF Intermediates Amines Europe. "We have highly efficient manufacturing processes, and with this investment, we provide our customers greater flexibility and reliability of supply than before."

The versatile Alkylethanolamines are mainly used as precursors for flocculants applied in water treatment and in the coatings industry where they act as binders between pigments and resins. Other applications include gas treatment, fabric softeners, lubricants in metalworking fluids and polyurethanes.

With about 300 different amines, BASF has the world’s most diverse portfolio of this type of chemical intermediates. Along with alkyl-, alkanol- and alkoxyalkylamines, the company offers heterocyclic and aromatic as well as specialty amines.

The range is completed by an expanding portfolio of chiral amines of high optical and chemical purity. The versatile products are used mainly to manufacture process chemicals, pharmaceuticals and crop protection products, as well as cosmetic products and detergents. They also serve to produce coatings, special plastics, composites and special fibers.

As MRC informed before, in September 2018, BASF’s Coatings division opened a new laboratory for automotive OEM coatings at its site in Munster, Germany.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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MOSCOW (MRC) -- Indian refiners are holding back from ordering Iranian oil for loading in May pending clarity on whether Washington will extend a waiver from US sanctions against the OPEC-member, reported Reuters with reference to four sources.

In November, US President Donald Trump withdrew from the 2015 Iran nuclear deal and re-imposed broad economic sanctions.

Washington, however, gave a six-month waiver to eight nations including India, allowing them to import some Iranian oil until early May. India, Iran’s top oil client after China, was allowed to buy about 9 million barrels a month.

India hopes to get clarity in seven to 10 days on any extension of the waiver, as well as the amount of oil that could be purchased if an extension is given, the sources said.

"We don’t know about U.S. thinking, whether they will allow India to buy oil or not," said one of the sources, all of whom declined to be named due to the sensitivity of the issue.

Under the current waiver, India can buy about 300,000 bpd of Iranian oil - about half the amount before the sanctions were imposed - and New Delhi wants to keep buying Iranian oil at that level, Indian sources said last month.

Since November only state-run Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum and Mangalore Refinery and Petrochemicals have been buying Iranian oil.

State-refiners and India’s oil ministry did not respond to Reuters request for comments.

Brian Hook, the special US envoy for Iran, in March said Washington is pursuing its plan to bring Iranian crude exports to zero. Last week Hook said three of eight importers granted waivers by Washington have cut shipments to zero.

"Sanctions against IRGC (Islamic Revolutionary Guard Corps) have also added to the uncertainty over supply of Iranian oil ... in the current scenario when enough alternatives are available it is better to wait for a clarity," said another of the sources.

Trump on Monday designated Iran’s Guards a foreign terrorist organization. Iran’s president Rouhani said Tehran will resist US pressure and hailed IRGC as defenders of Iranians.
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MOSCOW (MRC) -- Cristal, the majority-owned subsidiary of Saudi-based Tadawul-listed National Industrialisation Company (Tasnee), has sold its North American titanium dioxide (TiO2) assets to US chemicals giant Tronox for USD1.67bn (SAR6.26bn), said Constructionweekonline.

According to a Saudi bourse missive, the transaction closed on 10, April 2019 following the green light from the US Federal Trade Commission (FTC). Under the deal, Cristal – which is 79% Tasnee-owned – will receive a cash consideration of $1.67bn (SAR6.26bn) and a 24% equity position in Tronox.

Tasnee said cash received will be “substantially used to fully prepay the outstanding bank debt of Cristal, which is consolidated in Tasnee’s consolidated financial statements”. The two directors of Tasnee’s Board, Talal Ali Al Shair – in his personal capacity – and Mr. Ibrahim Al Qadi – as the representative of Gulf Investment Corporation – own 1% and 20% of Cristal shares, respectively.

The remaining shares are owned by Tasnee, which added that any further material developments pertaining to the transaction will be announced “in due course”.

Speaking on the move, Mutlaq H. Al-Morished, chief executive officer of Tasnee, said: “This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the [TiO2] global industry that will benefit from a fully integrated global asset base and derive significant synergies.

“This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its consolidated balance sheet."

The deal has been two years in the making after it was originally announced in February 2017. However, according to Reuters, the FTC said in December 2017 that it would go to court to block the deal, arguing that two of the three top suppliers of chloride process titanium dioxide.

Acording to an FTC statement, the agreed merger is agreed on the prereqwusite that, among other requirements, Tronox sells titanium dioxide producing facilities in Ashtabula, Ohio.

Uses for the chemical include paint and plastics production, as well as for industrial coatings.
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MOSCOW (MRC) -- Saudi Aramco is set to raise USD12 billion with its first international bond issue after receiving more than USD100 billion in orders, a record breaking vote of market confidence for the oil giant which has faced investor concerns about government influence over the company, said Hydrocarbonprocessing.

State-owned Aramco's bond issue, split into maturities ranging from three to 30 years, is seen as a gauge of potential investor interest in the Saudi company's eventual initial public offering. Before the bond deal was marketed on Monday, Saudi Energy Minister Khalid al-Falih said initial indications of interest for the paper were over USD30 billion.

Having swelled to over USD100 billion during the sale process, demand appeared to be the largest ever for emerging markets bonds, fund managers said, surpassing orderbook value of more than USD52 billion for Qatar's USD12 billion deal last year, USD67 billion for Saudi Arabia's inaugural issue in 2016 and USD69 billion orders for Argentina's USD16.5 billion trade that year.

Such strong interest was also the latest sign that international investors are pouring money back into Saudi Arabia, as the kingdom tries to move on from the murder of Saudi journalist Jamal Khashoggi after his killing at the hands of Saudi agents in October strained ties with Western allies. "Purely on figures, it is a fantastic credit," said Damien Buchet, CIO of the EM Total Return Strategy, Finisterre Capital.

But he added: "The thing is, they are part of Saudi Arabia, they are a government arm. For equity investors this is always going to be an issue, more so than for bond investors." The Aramco issue has attracted interest from a wide range of investors, as the oil producer's vast profits would put its debt rating - if unconstrained by its sovereign links - in the same league as independent oil majors like Exxon Mobil and Shell.

Aramco has insisted on its independence while meeting investors ahead of the bond issue last week, saying the Saudi government remained committed to Aramco's governance framework to safeguard its independence even when oil prices dropped.

But for some investors Riyadh's control over the oil giant is an issue as its state ownership means decisions will ultimately be for the benefit of the government rather than investors.

As MRC informed earlier, demand for Saudi Aramco's inaugural international bond, seen as a gauge of potential investor interest in the oil company's eventual initial public offering, is higher than USD30 billion
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MOSCOW (MRC) -- Royal Dutch Shell said a strike over wages was having a significant impact at its 400,000 barrel per day Pernis oil refinery and the Moerdijk petrochemical plant, reported Reuters.

Dutch trade union FNV said on Monday production at Europe’s biggest refinery will be gradually reduced to 65% of capacity.

"The actions (are) significant in many ways, short-term and longer-term, and we are disappointed in the heaviness and size of the actions already from the start," a spokeswoman said.

"(The salaries of) those that register themselves as ‘actioners’ will be cut by a percentage I can’t specify further. Again, this is to support the majority of the workers that are work-willing and that are impacted by the actions as well."

The wage reductions will be implemented as early as this afternoon for as long as the strike continues, she said, declining to give more details.

As MRC wrote previously, in May 2018. China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China.

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
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