Spot monoethylene glycol prices in Asia may strengthen further in the near term

(ICIS) -- Spot monoethylene glycol (MEG) prices in Asia may strengthen further in the near term, after hitting a 44-month high last week, as supply of the material is expected to tighten, market sources said on Wednesday.

In the week ending 2 September, MEG spot prices were assessed at $1,275-1,285/tonne (┬918-925/tonne) CFR (cost and freight) CMP (China Main Port), close to levels last seen on 11 January 2008, according to ICIS data.

⌠MEG prices are rising to peak point since the global economic crisis. Prices will rise above $1,300/tonne very soon because of speculation on tight supply, a regional trader said.
Scheduled turnarounds at regional plants will shave MEG supply to the Asian market.

MRC

(ICIS) -- Polypropylene (PP) buyers in Europe are pushing producers hard to get a share of the ┬37/tonne ($51/tonne) drop in the September propylene contract price, and several say they have achieved lower prices, sources said on Wednesday. ⌠Discussions are still open for September, said a major PP producer, ⌠but we are facing pressure to drop prices.

PP buyers built up stock in July and August. Many have returned from holiday but have not been faced with the higher prices that producers had predicted for September. Order books are not as healthy as they were, say some buyers.⌠We have an order book of only 15 days, said one.
⌠Demand is limited, said a PP producer. ⌠Our clients are comfortable. They have stock.

Most buyers saw minus ┬20/tonne as the starting point of September PP pricing discussions. However, some already report that they have been conceded the full ┬37/tonne drop that producers gained in the propylene contract price, and not only those whose prices are linked to propylene.
The propylene contract now stands at ┬1,078/tonne FD (free delivered) NWE (northwest Europe), down by ┬37/tonne from its August level. This price is subject to discounts.

MRC

(Plastemart) -- NOVA Chemicals has entered into three core agreements which support the revamp of its Corunna cracker to utilize up to 100% NGL feedstock. The first one is a transportation service agreement with Sunoco Pipeline L.P. for the transportation of ethane feedstock from the Marcellus Shale Basin to the Sarnia, Ontario region. The second one being a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with Caiman Energy, LLC and the third one is a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with a wholly-owned subsidiary of Range Resources Corporation.

The company continues to work with other producers in the Marcellus region, including Statoil Marketing and Trading Inc., to secure additional ethane feedstock for its Corunna cracker.

MRC

(LegalWeek) -- Mayer Brown and Freshfields Bruckhaus Deringer have won roles on the planned $4.2bn merger of former BP chief executive Tony Hayward's investment vehicle Vallares with Turkish oil company Genel Energy International.

Mayer Brown's London office is advising Genel, the largest oil producer in the Kurdistan region of Iraq, fielding a team led by global energy co-head Robert Hamill, working with partners including Kate Ball-Dodd and Richard Smith (corporate), James Hill (tax) and Mark Compton (financial services).

Mayer Brown worked alongside Turkish law firm Yazici, where senior partner and Genel GC Murat Yazici took the lead role. Freshfields is advising Vallares on the transaction, the first for the company since it was formed this summer by Hayward and financier Nathaniel Rothschild and listed on the London Stock Exchange.

The deal will see Vallares issue new shares worth $2.1bn to acquire a 100% stake in Genel, which will retain a 50% stake in the renamed Genel Energy.


MRC

(Arabian oil and gas) -- Halliburton has struck a deal to buy Multi-Chem Group, North America's fourth-largest production chemicals company, in a deal set to plug a gap in its oil and gas extraction services offering. Halliburton Chief Executive David Lesar says there is more demand for oilfield services companies to provide a broader range of services in-house, something the acquisition of Multi-Chem - for an undisclosed sum - will help achieve.

Multi-Chem has 900 customers worldwide and about 750 employees, and there are no plans for redundancies in the combination, according to a company statement from Multi-Chem, which is the fourth-largest production chemicals company.

MRC