Saudi Arabia aims to invest USD 100 billion in its petrochemical industry by 2015

(Arabian Oil and Gas) -- Saudi Arabia aims to invest USD 100 billion in its petrochemical industry by 2015, and to increase focus on advanced technologies associated with the industry, according to Dr Mohammed Ibrahim Al-Suwaiyel, president of the King Abdulaziz City for Science and Technology.

Speaking during the Saudi International Petrochemical Technologies Conference, held in Riyadh in early June, Dr Al-Suwaiyel said petrochemical technologies are among 12 strategic technologies that the Kingdom aims to develop in partnership with private sector operators in the country, as part of the Kingdom's national technology and innovation plan.

Dr Al-Suwaiyel also said that the Kingdom plans to lift petrochemical production capacity to 80 million tonnes per year from the current rate of 60 million tonnes, 62% of total GCC petrochemical production capacity.

The conference was the first of its kind in the Kingdom. It highlighted recent research, development, innovation and applications of petrochemicals technology, both in KSA and at international level.

MRC

(ICIS) -- Arkema expects only 70% of European mercury-based chlor-alkali plant capacity to be converted to the membrane-cell method by 2020, Pascal Maureta, of the French-based petrochemical producer, said on Thursday. European regulations require all plants to switch to the more energy efficient membrane-cell method of production by 2020.

However, Maureta, business manager for caustic soda at Arkema, said because the European caustic soda markets are mature and the cost of conversion high, only 70% of mercury-based chlor-alkali plants will switch to the new method of production. Chlor-alkali plants produce caustic soda and chlorine as co-products.

Maureta also said European caustic soda exports were likely to remain uncompetitive in regions such as Asia because of high energy costs, freight rates and raw material costs compared with other regions.

European chlor-alkali producers say the timing of the costly conversion to membrane-cell technology could not be worse.

According to the latest Eurostat figures, March 2011 construction output fell by 4.9% in the eurozone compared with the previous year. Slovenia, Portugal and Bulgaria registered the largest reductions.

MRC

(ICIS) -- Methanex is considering moving one of its shuttered methanol plants in Chile to North America, a company executive said on Wednesday. Speaking at an investor conference, Methanex senior vice president John Floren said that the company also is studying whether to restart one of its three closed plants in the South American country with coal instead of natural gas.

In April, Methanex CEO Bruce Aitken said there was a ⌠low probability that the company's lone methanol plant operating in its Chilean complex might have to be shut down in the coming months because of a low natural gas supply during the southern hemisphere's winter. Aitken said then that Methanex might move the plant in Punta Arenas, Chile.

Floren referred to Methanex's long-term problem in Chile of obtaining natural gas supplies. ⌠It's taking longer for us to be successful there than we first imagined, Floren said. One option for Methanex would be to move the plant to the US or Canada, where Methanex is headquartered, Floren said.

MRC

(ICIS) -- Tyre producers in Asia may choose to adjust their formulations to use more natural rubber if prices fall below USD 4.000/tonne (EUR 2.800/tonne), as the product offers a much cheaper alternative to butadiene rubber (BR) as raw material, industry sources said on Thursday. The two products are substitutes for each other in the manufacture of tyres for the automotive industry, with prices moving in different directions.

TSR 20 NR prices at the Singapore Exchange (SGX) have tumbled by more than USD 300/tonne since late May to around USD 4.360/tonne on 23 June. The contract was for delivery in September.

Spot BR prices, on the other hand, increased by USD 175/tonne, or 4.1%, roughly over the same period and was assessed at USD 4.300-4.550/tonne CFR (cost and freight) SE (southeast) Asia on 16 June, according to ICIS.

MRC

Over the five months, overall imports of PP made 84 KT which was 55% more compared to 2010. Supplies of homopolymer propylene increased by 61%.

Moderate demand for propylene in terms of stable work of Russian producers and growing imports resulted in considerable stock of PP. Cheaper import of PP from Turkmenistan and Ukraine significantly pressed Russian producers in some regions.

Reduction of prices for PP in Europe (about EUR 100/t per month) and in Asia (over USD 150/t per 1,5 month) as well as significant import of cheaper material made Russian producers decrease prices in June. Compared to May, prices for homo PP decreased on average by 1.500 - 2.000 RUB/t. Current decrease of domestic prices resulted in reduction of homopolymer propylene prices: over 15 days of June, import supplies made nearly 3 KT.

MRC