KNM Group Bhd and Zecon Bhd signed preliminary deals with Gulf Asian Petroleum

(Plastemart) -- KNM Group Bhd and Zecon Bhd signed preliminary deals worth RM17 bln in total with Gulf Asian Petroleum Sdn Bhd (GAP) to build an integrated petrochemical complex in Teluk Ramunia, Johor, Malaysia. Under the deal, KNM Group and Zecon together with a Korean or Chinese contractor will form a consortium to undertake the petroleum refinery and polypropylene unit projects.

The engineering, procurement, construction and commissioning contracts were for a 150,000-200,000 bpd petroleum refinery and 400,000-525,000 mln tpa polypropylene unit with a total project value of USD5 bln (RM15 bln), a RM2 bln petroleum storage terminal facility comprising four terminals with a total storage capacity of 2.328 mln cu m, as per thestar.com.my


MRC

(BASF) -- BASF is planning to double production of its phthalate-free plasticizer Hexamoll DINCH from 100 KTa to 200 KTa at the Ludwigshafen site by 2013. Therefore a second production plant will now be built in Ludwigshafen. This will enhance supply security worldwide while continuing to ensure consistently high quality.


The decision is based on a strong increase in demand across all regions as well as the continued growth of demand for alternative plasticizers. This is the second capacity increase for Hexamoll DINCH since its successful market launch in 2002. In 2007, the original production capacity of 25 KTa was quadrupled to 100 KTa.


Hexamoll DINCH is a plasticizer that offers maximum safety, which is why demand for the product has grown continuously since it was first launched. While demand initially came mainly from manufacturers of toys and leisure articles, due to its outstanding properties the phthalate-free plasticizer is now increasingly being used in medical applications and food packaging.

MRC

(Arabian Oil and Gas) -- Iran cut sales for August to pressure Indian refiners into settling USD 5 billion in debts for oil supplied, after New Delhi failed to find a way around US and UN sanctions that make financing deals with Tehran difficult, Reuters said. Saudi Arabia has struck a deal to sell three million barrels of oil to India, filling a void left by Iran after it cut supplies due to a payment dispute, according to a Reuters report.

A Saudi government advisor has told Reuters that the Kingdom was not looking to seize Iran's market share, but neither would it look the other way.

Opposition led by Iran at an Organisation of Petroleum Exporting Countries meeting in June defeated a Saudi proposal for a coordinated supply.

Sources at Indian refiners Hindustan Petroleum, Bharat Petroleum and Essar Oil said that state oil giant Aramco had confirmed it would supply each of them with an additional 1 million barrels of crude in August.

Indian buyers reached out to Saudi Aramco last week to request additional oil to plug the gap from Iran, giving Riyadh an opportunity to grab a bigger share of the market in Asia's third-largest oil consumer.

MRC

(Arabian Oil and Gas) -- BP today reported underlying replacement cost profit of USD 5.6 billion for the second quarter of 2011, an increase of 13% on the result for the same period last year. The headline figure is slightly under analysts' expectations, who in a Bloomberg survey gave an average profit expectation of USD 5.9 billion.

In a company statement, BP said the underlying profit primarily reflected higher oil and gas prices and refining margins, partially offset by lower production and higher costs. Rival supermajors - particularly Shell - are expected to outperform BP this year.

The quarterly dividend expected to be paid on 20 September 2011 is 7 cents per share (USD 0.42 per ADS). The company's share price has shown only modest rises recently, despite Brent prices kissing USD 120 a barrel.

In the same period last year BP posted a USD 17 billion loss, following the Macondo disaster and ensuing oil spill in the Gulf of Mexico.

MRC

(ICIS) -- The US debt limit crisis could have serious consequences for domestic chemicals producers and other manufacturers if not quickly resolved, a top industry official said on Monday, and ultimately it could trigger a new recession.

Larry Sloan, president of the Society of Chemical Manufacturers and Affiliates (SOCMA), said that as long as the political logjam over raising the US government's borrowing authority persists, the greater the threat to the nation's credit rating and the overall economy.

Republicans and Democrats in Congress along with President Barack Obama have been struggling for weeks to come up with a mutually acceptable plan to raise the limit on the federal government's authority to borrow money - known as the debt limit or ceiling.

By law, the US Treasury Department may not issue bonds or otherwise borrow money in excess of the debt limit set by Congress. The current debt limit is set at USD 14.300bn (EUR 10.010bn). Because the US government's income from tax revenues and fees covers only about 60% of its daily USD 10bn in outlays, the Treasury Department must borrow money on international financial markets to cover the balance - some USD 4bn/day.

But Treasury's ability to borrow more money - to pay federal programmes and meet other debt payment obligations - is expected to reach the USD 14.300bn ceiling on or about 2 August.

MRC