Rosneft and ExxonMobil to begin seismic surveying on Russia's Arctic shelf in two years

(RIA Novosti) -- Russian oil major Rosneft and U.S. energy giant ExxonMobil will begin seismic surveying of the East Prinovozemelsky Blocks on Russia's Arctic shelf in two years, Rosneft head Eduard Khudainatov said on Friday.


Rosneft and ExxonMobil recently signed a USD 3.2 bln agreement to explore East Prinovozemelsky 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea. Rosneft will hold 66.7 percent in both joint ventures.


The pact gives Exxon, which is already partnering with Rosneft on the Sakhalin-1 offshore project in Russia's Far East, access to substantial reserves in Russia, the world's top oil producer. Rosneft, which was looking for a partner to provide it with shelf technologies it lacks, will be now able to operate on ExxonMobil's turf in the United States - in the Gulf of Mexico and Texas, as well as in third countries.


MRC

SABIC to strengthen investments in China

(Sabic) -- Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu and Chairman of SABIC, received at the SABIC headquarters in Riyadh on September 15, a high-level Chinese delegation, headed by Zhang Gaoli, Member of the Political Bureau, Central Committee, Communist Party of China (CPC), and Secretary of the CPC Tianjin Municipal Committee.


Prince Saud praised the strong relationship between Saudi Arabia and China as well as the efforts of the leaderships of the two countries to develop these ties at all political, economic and technological levels. He lauded the strong growth of the Chinese economy, which has, in turn, boosted SABIC's presence in the Chinese market.


Experts expect the annual demand for petrochemicals in China to grow above 10 percent over the next ten years. SABIC has announced its plans to establish a USD one billion high-tech SABIC advanced polycarbonate technology plant in Tianjin City, China with an annual capacity of 260 KT to meet the growing demand for plastics in the country. The project will provide an opportunity to the company to grow in the market for high performance engineering thermoplastics, and meet the growing demand for SABIC advanced polycarbonates in China.


MRC

Russian producers increased HDPE output in August

(MRC) -- Following August results, in Russia production of high-density polyethylene (HDPE) increased by 22% compared to July. Total volume of HDPE production over the eight months made 585.5 KT, according to MRC ScanPlast.


In July there were some technical problems at Gazprom neftechem Salavat. In August, HDPE production halted on and off, but since September 1, PE production suspended completely because of the accident. Gazprom neftechem Salavat is allegedly expected to restart HDPE production on the 1st of October. In mid-August, due to ethylene shortages, Kazanorgsyntez reduced HDPE production. That is why last month Russian companies produced only 74.4 KT.


Over the eight months, total volume of HDPE produced in Russia increased by 3% year on year. This year production growth has largely resulted from increased production capacities at Stavrolen and Gazprom neftechem Salavat. Other Russian producers, on the contrary, have cut production volumes.


There were no significant changes in HDPE consumption sectors. This year, Russian producers have increased pipe PE output, in particular, coloured and uncoloured PE100.


Last month Nizhnekamskneftechem restarted coloured PE100 production. This year the range of PE grades has not changed. The exception was only Kazanorgsyntez, which presented in the market a new IM grade - PE2NT21-13.


In September, Russian producers are expected to decrease HDPE production volumes by more than 30%. Earlier this week, Kazanorgsyntez began shutting down its reactors for routine maintenance. HDPE production is expected to resume on October, 5-6.


Nizhnekamskneftechem is expected to stop its HDPE production for 10 days scheduled maintenance from September, 27. The accident made Salavat neftechem Gazprom stand idle for a month.


By: , MRC analyst.


MRC

The incident at LINIK not to affect Ukrainian PP market

(MRC) -- PP production at Lisichansk refinery (LINIK) has been suspended until September, 20 due to the accident, which resulted in triethylaluminum leakage, as per unofficial sources.


According to MRC analyst Sergey Karaichentsev, the incident won't influence Ukrainian PP market. At the moment company's PP stocks exceeds 7 KT. In August, the Ukrainian market imported 9 KT of the feedstock. LINIK formed significant stocks before a scheduled replacement of heat exchanger.


The accident happened on the night of 14 to 15 September. There was a leakage of triethylaluminum at D-201 drainage line on R-200 reactor with a working pressure of 30 atm. According to the Office Emergency Situations of Lugansk Regional State Administration, the reactor R-200 is switched out now.


MRC

Chevron Phillips US cracker could be on line by Q1 2017

(ICIS) -- A new US Gulf coast cracker under contemplation by Chevron Phillips Chemical could be on line by the first quarter of 2017, CEO Peter Cella said on Thursday. Cella said Chevron Phillips was continuing its study of the project, with plans to disclose the results by the end of this year. Chevron Phillips announced the study in March.


Chevron Phillips would announce whether it plans to proceed with the project and where it would be constructed. The announcement also would include the cracker's technology and its size, Cella said.
⌠And first part of next year would be an important milestone for us to submit our permit and get what I call preliminary spending approval for the next phase of the project from our parents, Cella said.
Chevron Phillips is a joint venture between Chevron and ConocoPhillips.


⌠We know that getting a permit for an investment like that [a cracker] can be a complex process, and we want to fulfil every permit requirement that is out there, Cell continued. ⌠I think if everything works according to the plan we envision today, we would be looking at a first quarter 2017 start-up.


If given the go-ahead, the project would be located at one of Chevron Phillips's existing sites on the US Gulf. In Texas, the company operates at Orange, Cedar Bayou, Pasadena, Sweeny and Port Arthur. The study is driven by the new development of US shale gas reserves.


Market sources said in March that US ethylene capacity could increase by 4% if Chevron Phillips moves forward with the project.


MRC