Revised cost of Assam gas cracker awaits sanction

(Plastemart) -- A delay in implementation of the Assam Gas Cracker has lead to a hike in project costs to Rs 8,879 crore from Rs 5,461 crore. These delays can be attributed to several causes including technology/design changes, time escalation, increases in cost because of change in infrastructure, site conditions, and construction cost. This cost hike has been approved by the Public Investment Board. The revised cost of the Assam gas cracker project being implemented by Brahmaputra Cracker and Polymer Ltd (BCPL) awaits sanction of the Cabinet Committee on Economic Affairs, as per telegraphindia.com.

Though completion of the project is expected in H2-2013, any further increase in costs is unlikely as a large part of the work has been accomplished.

MRC

(Platts) -- Joint stock company Saudi Industrial Investment Group, or SIIG, said Monday it has established a joint venture company dedicated to producing downstream petrochemical products.

The venture, called Petrochemical Conversion Company, or PCC, has been formed under a 50:50 partnership with the Arabian Chevron Phillips Petrochemical Company, the company said in a statement posted on the Saudi stock exchange Tadawul. A total of USD 2 bln will be invested in PCC over the next two years.

One of the first projects for the new company will be a nylon manufacturing plant, SIIG said. In addition, other downstream petrochemical plants will also be established under the joint venture, the company added.

MRC

(UralPolit) -- Construction and assembling operations in the site of Tobolsk-Polymer plant are 30% completed. Maintenance support of "Tobolsk-Polymer" makes 95% now. According to Vice- president of SIBUR, General Director of "Tobolsk-Polymer" LTD, Michael Karisalov, now all main equipment for a new plant is shipped and delivered to the port of Arkhangelsk. The cargo is expected to arrive to the port of Tobolsk in the second half of August. Its transportation from the port to the construction site will be made in early September 2011.

"Tobolsk-Polymer" is the largest investment project of the Russian petrochemical industry. The annual capacity of this project will make 500 KT of polypropylene per annum.

MRC

(ICIS) -- US July contract prices for polyethylene (PE) fell by 3-4 cents/lb (USD 66-88/tonne, EUR 46-62/tonne), based on weak domestic demand, sources said on Friday. With the reduction, prices for linear low density polyethylene (LLDPE) butane film were at 71-74 cents/lb DEL (delivered), low density polyethylene (LDPE) film prices were at 80-82 cents/lb DEL and high density polyethylene (HDPE) blow moulding prices were at 69-71 cents/lb DEL, for small-volume buyers, as assessed by ICIS.

Producers had announced earlier in the month that prices would fall by 3 cents/lb for all grades of PE resins. However, many customers were able to argue for an extra cent, depending on the amount of the decrease they were given in June.

At least two buyers indicated prices fell by as much as 5 cents/lb for certain grades, but those decreases were not believed to be representative of the market.

Producers have already announced plans to raise prices by 5 cents/lb on all grades by 1 August. However buyers say they expect it will be difficult for producers to push through an increase before September.


MRC

(ICIS) -- Stocks in the European chemicals sector were lifted by a rally in global markets on Monday after US leaders reached an agreement to avoid the country defaulting on its debt obligations.
President Barack Obama said that under a proposed deal, which will be put to a vote in the US Senate and the House of Representatives later on Monday, the US debt ceiling would rise by up to USD 2.4 trillion (EUR 1.7 trillion).

In early afternoon trading, the Dow Jones Euro Stoxx Chemicals index was trading up 0.75%, indicating that many of Europe's major chemical companies had experienced some gains. Among Europe's top producers, Germany-based major BASF's shares had risen 1.34%, France-based Arkema was up 1.03%, while shares of Norway-based fertilizer producer Yara grew 1.15%
European stock markets reacted positively to US Congressional leaders agreeing on raising its borrowing cap.


MRC