Lukoil to launch first line of gas processing plant in Bukhara in August 2016

(UzDaily.com) -- Russia's Lukoil Overseas is planning to launch the first line of Kandym Gas Processing Plant in August 2016, a corporate newspaper of the Russian company ⌠Neftyaniyi Vedomosti reported. The paper said that the contract on development of feasibility study and documentation of construction of gas processing complex at Kandym fields group in Bukhara region of Uzbekistan.

Hyundai Engineering of South Korea won a tender to execute these works. The preliminary capacity of the unique gas processing plant will be 8 bln cubic meters of gas a year. It is planned that the plant will be launched on 1 August 2016. The contract should be approved by the government of Uzbekistan.

The product sharing agreement (PSA) on project Kandym - Khauzak - Shady - Kungrad was signed in June 2004. The PSA is designed for 35 years. Kandym fields group consists of six gas condensate fields.

Investments to the project will make up over USD 3 bln. Along with gas processing plant, it is planned to build 120 wells, gas-compressor stations, gas assembly points, terminals for loading of liquid hydrocarbons, electricity supply lines, etc.

MRC

(Sibur) -- CITCO Waren-Handelsgesellschaft m.b.H trading company changed its name to SIBUR International GmbH. The company's director, Victor Viehweg has been replaced by SIBUR's Vice President for Corporate Governance and Development, Mikhail Mikhailov. The company's new Executive Director is Ilya Gustchin, who previously held the post of Deputy Manager for Economics and Finance of the Plastics and Organic Synthesis Division.

SIBUR purchased a 100% stake in CITCO, a major liquefied petroleum gas trading company, in 2009 to expand its European marketing opportunities. The trading company has been renamed to facilitate further integration into the SIBUR system.

SIBUR International GmbH continues as SIBUR's exports division responsible for supplying the holding company's products to Europe and Asia. The company has storage facilities in Black and Baltic Sea ports which it uses to receive, hold and unload products.

MRC

(Arabian oil and gas) -- Saudi exports of polymers to Turkey have increase 3.8% to 65,280 tonnes during the month of July compared to 62,861 tonnes in June, according to the data released by the Turkish Statistical Institute. The data show that Saudi is the largest exporter of polymers to Turkey, as it controls a share market of 20.6%.

In July, total imports of Turkey from polymers (including PP, PE, PVC and PS) declined to 316 KT compared to 348 KT in June.

Saudi Arabia exports of high density of polyethylene to Turkey toped the list with 10,502 tonne, controlling 24% of the market share, followed by Iranian and Indian. While it exported 10,331 tonnes of low density polyethylene, representing 49.1% of the market share, other exporter including Iran and Qatar.

MRC

(MRC) -- Ukrainian Government initiated reconsideration of its WTO membership conditions in order to increase import duties on certain groups of goods. Polyethylene and PVC may allegedly enter the list, according to MRC analysts.

By the end of the year Ukrainian government plans to initiate talks about changing Ukraine's tariff obligations made on joining WTO. On September 8, representatives of the Federation of Employers, as well as a number of industry associations, asked the government to begin negotiations with WTO to reconsider tariff rates. In particular, they proposed to raise import duties on pork, raw sugar, phosphate fertilizers, cars, etc.

According to MRC analyst, Sergey Karaychentsev, HDPE, PVC-S as well as other polymer products can enter the list of goods under import duties changes. Economically well grounded level of import duties changes can make 6.5%, since this is in agreement with WTO rules.

Annual capacity of the only Ukrainian producer of these polymers - Karpatneftechem (Kalush, Ivano-Frankivsk region), is 100 KT of high-density polyethylene and 300 KT of suspension PVC. In 2010, Ukrainian market capacity of high-density polyethylene made 130 KT, and PVC-S - 125 KT.

MRC

(Plastemart) -- Foster Wheeler AG's Global Engineering and Construction Group, through a collaborative agreement with Honeywell's UOP, was recently awarded a contract by Oman Refineries and Petrochemicals Co. UOP/Foster Wheeler will provide a basic engineering design package for a solvent deasphalting (SDA) unit at the Sohar Refinery in Oman. The SDA unit is a major part of the Sohar Refinery Expansion Project which will significantly increase the refinery's production of petroleum products such as LPG, naphtha, Jet A-1 fuel, gasoline, diesel and propylene. The SDA unit will be designed to process 2.5 mln tpa of vacuum residue of Oman Export Blend crude to produce Deasphalted Oil (DAO) and asphalt for road bitumen production. The SDA Unit is expected to be on stream in 2015. The terms of the contract were not disclosed. The contract value was included in the company's second-quarter bookings for 2011.


MRC