BPCL mulls investment in Mozambique LNG project and petrochemical complex

(Plastemart) -- India's state-owned BPCL plans to invest USD 400 mln for a 10% stake in a liquefied natural gas (LNG) terminal in Mozambique, as well as invest USD 1.3 bln in a greenfield petrochemicals complex, adjacent to its Kochi refinery.

BPCL has earmarked a fourth of its Rs 40,000 crore capital expenditure for upstream projects. Out of this most will be invested for developing the offshore Rovuma Basin gas field in Mozambique. BPCL's diversification strategy comprises setting up a USD 1.3 bln petrochemicals complex in Kochi for which talks are underway with at least four international majors.

MRC

(The China Post) -- Chen Bao-lang, former chairman of Kuokuang Petrochemical Technology Company, is expected to take over as Formosa Petrochemical Corp. (FPC) chairman Sept. 15, after the FPC's core leadership resigned in July, FPC said yesterday. The proposal is expected to be adopted officially at an FPC board meeting Sept. 15 and Chen will take up the post immediately, the company said. In order to avoid a conflict of interest, Chen said, he will resign as a member of a special government committee assigned to oversee safety at an FPC petrochemical complex in Mailiao, Yunlin County.

The committee, formed under the Industrial Development Bureau ofthe Ministry of Economic Affairs, plans to convene a meeting around Sept. 20 to examine the suspension of operations at the plants.

Wilfred Wang and Su Chi-yi stepped down as FPC chairman and president, respectively, in late July after the seventh blaze in a year broke out on July 30 at an oil refinery in Mailiao owned by the Formosa Plastics Group.

MRC

(Reuters) - Thailand's Siam Cement Pcl agreed to buy 30 percent of Indonesia's Chandra Asri Petrochemical Tbk (CAP) for USD 442 million in a deal mainly with Singapore state investor Temasek that signals growing competition for Southeast Asian petrochemical assets.

The acquisitive Thai company's biggest overseas investment gives it a foothold in the fast-growing petrochemical industry of Southeast Asia's biggest economy, but it also hints at more deals to come as cash-rich Thai companies seek growth offshore and regional competition heats up.

Under terms announced on Tuesday, Siam Cement will buy 22.9 percent from a unit of Temasek Holdings Pte Ltd , and the rest from PT Barito Pacific Tbk , the holding company of Indonesian tycoon Prajogo Pangestu.

The deal highlights the growing allure of the vast and often-untapped resources of Indonesia, where M&A volume has more than doubled to USD 11.6 billion this year from a year earlier.

MRC

(MRC) -- In August, Ukrainian companies increased PE import supplies to 27.6 KT which was 18% more compared to July. Imports growth referred to all PE types. Over the first eight months, overall PE supplies to the Ukrainian market made 202 KT, according to MRC DataScope. That was 3% more year on year.

Last month linear polyethylene demonstrated the biggest import increase. LLDPE supplies grew by 1.5 on the back of growing demand for film grades and exceeded 5 KT. HDPE imports was up by 20% to 13.2 KT. External LDPE supplies grew only by 6% and reached 8.6 KT.

Last year Karpatneftechem (Lukojl group) restarted HDPE production that allowed to reduce film PE imports to the Ukrainian market almost by twice. Last summer HDPE film imports in Ukraine made nearly 5 KT, while in July-August this year, itmports declined to 2.5 KT.

Over the two last months, import volumes of pipe HDPE (including uncoloured grades) have increased and made more than 4.5 KT. The supplies geography of pipe PE in the Ukrainian market has grown significantly, but main import supplies still fall at the following companies: Stavrolen, Sabic, Kazanorgsyntez, TVK and Unipetrol. Recently a share of coloured PE100 significantly reduced in total imports to the Ukrainian market.

In August, imports of blow molding HDPE grew. Last month PE supplies reached 2.5 KT, due to seasonal factors, as well as September-October maintenance stops of major suppliers to the Ukrainian market (Unipetrol, Kazanorgsyntez and TVK). IM HDPE supplies, on the contrary, decreased almost by half due to a seasonal drop in demand for PET bottles caps.

MRC

(MRC) -- In August PP import supplies to the Ukrainian market increased to record 9 KT, that was 11% more compared with July. The imports growth referred to all PP types, according to MRC DataScope. Over the first eight months, overall PP supplies from foreign markets approached 50 KT, that was 2% more year on year.

Large PP imports in 2010 mostly resulted from a long-term maintenance stop of Ukrainian producer LINIK in May - June. The peak of PP imports in Ukraine fell exactly on the first two months of last summer. Also, the heat wave in July-August caused unscheduled stops of LINIK capacities. PP imports volumes began going down only with autumn coming.

This year, PP-homo supplies to the Ukrainian market have neraly doubled over the last two months. In August, total PP-homo imports in Ukraine made nearly 6 KT.

Last November, Saudi Arabia company NatPet brought its PP to the Ukrainian market. This year sales geography of PP-homo imports has extended. In July - August, Egyptian Propylene & Polypropylene Company (EPPC) presented its raffia in the Ukrainian market. Over the past two months, PP-homo imports from Eastern Europe significantly increased. The materials produced by Slovnaft, Rompetrol, Hipol were actively offered.

A completely different picture is observed in the Ukrainian market of PP copolymers. This year deliveries of PP-impact decreased by 8% year on year and made 10.6 KT. Because of high prices at the beginning of the year, local companies have limited purchases of PP-impact in Europe. A slight increase in consumption was fixed in August.

This year, PP-random market was up by 15%. The main increase in consumption referred to extrusion grades, in particular, suitable for production of pressure pipes made of polypropylene. The demand for IM PP-random with a high index of melt flow rate also increased.

MRC