Sinopec to build $1.7b plant in Kazakhstan

March 26 (Bloomberg) -- China Petroleum & Chemical Corp., the Hong Kong-listed company known as Sinopec, won a contract to build a $1.7 billion polypropylene plant in western Kazakhstan.

Sinopec agreed to buy and export all the polypropylene produced at the facility, Kazakh Deputy Oil and Gas Minister Aset Magauov told reporters today in Almaty. The Export-Import Bank of China will provide a $1.26 billion loan for the project, he said.

TOO Kazakhstan Petrochemical Industries, 51 percent held by the London-traded unit of state-owned KazMunaiGaz National Co., will invest $300 million of its own money, and Kazakhstan will provide a ⌠budget credit of $140 million, Magauov said.

The polypropylene plant will form part of a gas chemicals complex, which will be able to produce 450,000 metric tons of polypropylene and 800,000 tons of polyethylene a year once completed in 2014, according to KazMunaiGaz. LyondellBasell Industries AF SCA, which Kazakhstan had sought as a partner for the project, filed for bankruptcy last April.

David Harpole, a LyondellBasell spokesman in Houston, said March 19 that the company had informed the partners of its withdrawal from the venture.


LyondellBasell not part of Kazakhstan petrochemicals complex

March 26 (plastemart) -- Kazakhstan will commence the integrated petrochemical complex project in the Atyrau region on its own. Inability to find partners for the development and indecision n part of LyondellBasell on project participation since January, has compelled to company to start the development on its own. Kazakhstan Petrochemical Industries, the project operator, and Sinopec Engineering have recently signed an agreement for the cooperation in the first polypropylene production phase. Production capacity includes 400,000 tpa of low and high density polyethylene, 400,000 tpa of low density linear polyethylene and 400,000 tpa of polypropylene, once completed in 2014.

The TengizChevroil joint venture signed a contract in March last year to supply 6-7 billion cubic meters of gas to this complex per year. The initial cost of the project was US$5.2 bln which later increased as the raw material prices grew. The funding issue had already been solved. The Export-Import Bank of China will provide a US$1.26 bln loan for the project. Kazakhstan Petrochemical Industries, 51% held by the London-traded unit of state-owned KazMunaiGaz National Co., will invest US$300 mln of its own money, and Kazakhstan will provide a ⌠budget credit of US$140 mln.


Rompetrol Petrochemicals invests over $18 mln for expanding the capacity of the HDPE installation

March 25 (Rompetrol Petrochemicals) -- Rompetrol Petrochemicals, the petrochemical division of the Rompetrol Group, will increase the capacity of the high density polyethylene installation (HDPE) by more than 70% by March 2011, the total value of the investment being estimated to approximately USD 18 million. Stopped in 1996 due to the lack of raw material, the installation was modernized and restarted in 2007, following a total investment of over USD 14.5 million.

⌠Against the background of the reduction or shutting down of production capacities in Central and Eastern Europe, the company maintains its objective set in 2007 of becoming one of the main suppliers and producers of polymers in the region. The modernization program will allow an increase in the installation capacity - from 60,000 to 100,000 tons/year, a reduction of over 10% in the processing cost, a diversification of the range of products provided, as well as an increase in the operating safety stated Cosmin Cocean, Chief Refining and Petrochemicals Officer, The Rompetrol Group.

The project will be carried out in partnership with Mitsui Chemical (the licensor of the HDPE installation) and Rominserv (the general contractor of the Rompetrol Group) and will have two major stages, the rehabilitation and modernization of the granulation tower in the installation by August and the increase in the processing capacity by the first quarter of next year.

Together with the increase in the production capacity, the company will also expand the range of products it provides with two new types designed for the production of gas transportation pipe/very thin foil and large volume containers.

The low- and high-density polyethylene installations currently have a nominal capacity of 60,000 tons/year and entered between 1996 - 2006 in conservation following the lack of raw material - ethylene. In order to modernize and restart them, as well as to build a liquefied gas sea terminal, Rompetrol Petrochemicals allocated over USD 30 million in 2006 (LDPE) and over USD 14.5 million in 2007 (HDPE).


Polish customer relies on Cincinnati Extrusion's KryoSys for the production of PE multi layer pipes

March 25 ( -- In terms of an international industrial developement Cincinnati Extrusion's KryoSys tipped the scales for the Polish company KNG AWANS Sp. z.o.o., Czarnkow, in favor of placing the order for an HDPE 3-layer pipe extrusion line with the Viennese machine manufacturer.

KNG AWANS Sp. z.o.o. is a producer of water, sewage and pressure pipes made from PE 100, PE 80 and PVC, as well as PVC pipe fittings for the domestic market.

Several plans had already been in existence for expanding the production capacity, but the limited length of KNG's production hall had presented serious problems. With the KryoSys line now ordered from Cincinnati Extrusion, however, KNG AWANS can produce HDPE 3-layer pipes with a thin outer PP-H layer in diameters from 90 to 630 mm and a layer distribution of 25% / 50% / 25% on an extrusion line almost halved in overall length.

The line consists of two monos+ 60 single-screw extruders for the two HDPE layers and a talos 45 as co-extruder for the thin outer PP-H layer. The pipe head, a KryoS 63-1200 3-Coex, ensures excellent distribution accuracy while keeping the length of the entire line short thanks to its integrated melt cooling system.

The line will be installed at KNG AWANS' premises in the second half of this year.


Saudi Aramco, Total to raise US$8 bln in debt financing for refinery and petrochemical project

March 25 (plastemart) -- Saudi Aramco and Total SA expect to raise US$8 bln in debt financing for a joint refinery and petrochemical project for Satorp in the ⌠coming months. The US$8 bln debt package includes the sale of Islamic bonds, or sukuk. The 400,000 bpd refinery in Jubail will cost more than US$12 bln. The cost, including financing expenses, will also be funded by Saudi Arabia, which will contribute over US$1 bln to the project and by the partners' equity. The project Satorp is expected to start operation in mid-2013.

Aramco is investing in refining capacity even though returns are currently poor. Globally, refiners have postponed expansion projects and idled plants as the global recession eroded demand and squeezed profit margins. The company is likely to develop integrated refining and petrochemical plants for all future projects to add value by using products from refining for chemical production. Aramco may sell part of its stake in the project in an initial public offering in 2011 or 2012, so that 25% of Satorp will be publicly traded. Aramco and Total would then hold equal 37.5% stakes.