Chevron gave go ahead for its Wheatstone LNG project in Western Australia

(Gulf Times) -- Chevron Corp gave the go ahead for its USD 28.4bn Wheatstone liquefied natural gas project in Western Australia, seeking to tap into growing Asian demand with its second LNG export project in the country.


The project is due to initially produce 8.9mn tonnes per annum (mtpa) of LNG and have a domestic gas plant, eventually expanding to 25 mtpa. First gas is planned for 2016.


Chevron is positioning itself to become one of the largest LNG producers in Australia, with the construction of the USD 37bn Gorgon project, also off the coast of Western Australia, which is set to produce 15 mtpa by 2014.


Apache Corp, Kuwait Foreign Petroleum Exploration Company (KUFPEC), Royal Dutch Shell, and Kyushu Electric are all equity participants in Wheatstone, and hold 13%, 7%, 6.4% and 1.83%, respectively while Chevron holds the rest.


MRC

Topaz Marine adds OSV vessel in support of BP contract

(Arabian oil and gas) -- Topaz Marine, a division of Topaz Energy and Marine recently acquired the Caspian Provider, an advanced Platform Supply Vessel (PSV), to join the company's fleet on a four-year contract in Azerbaijan with a value in excess of USD 40m.


The Caspian Provider will be working out of Baku, Azerbaijan, on a contract with oil and gas major BP won by Topaz Energy and Marine, in 2008. The Caspian Provider joins four sister ships already under the management of the Topaz Marine Azerbaijan unit.


The Caspian Provider is the fourth vessel delivered to the company after construction in the Simek Yard in Norway. The vessel was ordered in 2010 at a cost of USD 32m and is expected to generate exceptional value for the fleet.


The Caspian Provider will commence a charter with BP on completion of restoration works. Topaz Energy and Marine is strategically positioned in the Caspian Sea where the company benefits from a market share of 55% in Azerbaijan.


MRC

HDPE prices hit new records in the Russian market

(MRC) -- HDPE shortages in the Russian market have led to the bullish sentiments. Russian producers corrected their plans depending on maintenance stops in order to smooth current situation, but it is impossible now to cut back the deficit and stop the price growth yet, according to ICIS-MRC Price report.


HDPE shortage in the Russian market keeps growing, pushing up spot prices. In order to stabilize the situation in the domestic market, the Russian producers have changed their schedules of turnarounds in September - October. Stavrolen that previously had planned 45 days maintenance, reduced a stop duration to 10 days. Stavrolen's production capacities are expected to be shut from October, 10th.


Nizhnekamskneftechem postponed its regular turnaround to the end of October. Kazanorgsyntez also cut the terms of maintenance by one week. HDPE production in Kazan is planned to restart in October, 5-6. Gazprom neftechem Salavat plans to begin HDPE production in early October. 1 September accident forced the company to stop its capacities for maintenance beforehand.


The Russian ruble devaluation against major world currencies significantly reduced attractiveness of PE purchases in the external markets over last two months. September export prices of European HDPE make EUR 1.080 - 1.120/t, FCA. Last export HDPE deliveries of Shurtansk GKhK were traded within USD 1.520 - 1.620/t, FCA. Asian and American PE for September shipment was offered at average for USD 1.480 - 1.560/т, CFR St. Petersburg.


By the end of last week, Kazanorgsyntez and Stavrolen had declared increased prices of HDPE under the pressure of both external and internal factors. Contract prices increased by RUB 2.360-4.250/t, depending on PE grade and producer.


Price growth is also observed in the spot market. By the end of last week, the quotation for film and injection grades of HDPE in the spot market was recorded in a fairly wide range: RUB 60.500-67.000/t, including VAT, FCA, depending on PE grade. Blow-molding grade of HDPE was offered an average for RUB 61.000-66.500/t, including VAT, FCA.


The only exception is pipe HDPE market, where weak demand for pipe material keeps the price down. Last week the coloured PE100 prices were fixed in the range of RUB 63.000-66.000/t, including VAT, FCA Kazan. Uncoloured PE100 was offered at average for RUB 62.000-63.000/t, including VAT, FCA.


MRC

Europe olefins quiet ahead of 'critical' October contract discussions

(ICIS) -- There is limited activity on the spot European olefins - ethylene and propylene - markets ahead of the upcoming October monthly contract settlements, industry sources said on Friday.
Ethylene and propylene spot markets are traditionally slow during contract negotiations, as players like to wait and see the outcome before committing to volumes, but this time around there is not much optimism that normal activities will resume once the new contract numbers have been established.


Other sources said that even some speculation centring on a possible increase in the contracts, as producers push to improve margins that have been faltering on upstream volatility and a weak euro, had not resulted in any fresh interest.


The lack of visibility is weighing on sentiment and there are just too many concerns and worries over the global economic outlook, despite market participants stressing the need for calm. A drop in crude and naphtha prices on Thursday added to the uncertainties.


Expectations for the ethylene contract vary between a rollover and a small increase from September's contract price of EUR 1,115/tonne (USD 1,507/tonne) FD (free delivered) NWE (northwest Europe).


MRC

ENI resumed oil production in Libya

(Trend) -- Italian state-controlled energy giant ENI said Monday it has resumed oil production in Libya months after the conflict in the North African country brought its operations to a halt. "Eni restarts production in 15 Libyan wells in Abu-Attifel, located at 300 kilometres south of Benghazi," the company said in a statement released in Milan, dpa reported.


Eni has been active in Libya since 1959, where it says it is the the largest foreign investor in terms of hydrocarbon production.


In recent years Italy had cultivated closer ties with its former colony, culminating in a 2008 friendship treaty signed by Prime Minister Silvio Berlusconi and the then Libyan leader Moamer Gaddafi.


However, in March Italy suspended the treaty and joined a NATO air campaign against Gaddafi's forces who had been accused of targeting civilians in their attempt to crush a rebel uprising.


MRC