SIBUR and Sinopec plan two JV and extend their cooperation

(Sibur) -- Within the framework of the working visit to China by Prime Minister of the Russian Federation Vladimir Putin, one of the world's largest energy and chemical companies, China Petroleum and Chemical Corporation (Sinopec Corp.) and Russia's leading petrochemical holding company SIBUR have entered into a Memorandum of Extended Cooperation on the possible formation of two joint ventures for the production of butadiene nitrile rubber (NBR) in Krasnoyarsk (Russia) and Shanghai (China). The Parties are also considering cooperating in the area of polyisopren rubber (IR) and in other areas, including the petrochemical feedstock supply and the supply of unconventional sources of feedstock to Russia and China. In addition they have agreed to hold talks about co-operation opportunities in upstream and downstream.

If joint ventures are formed, SIBUR will provide polymerization and finishing technology for two of them. The existing NBR assets of the Krasnoyarsk rubber plant in Russia will be expanded to 56,000 tons per year, and the Shanghai facility will have a production capacity of approximately 50,000 tons per year.


MRC

(Bloomberg) -- Shell bought naphtha for first-half December at USD 874 a metric ton, according to a Bloomberg survey of traders monitoring transactions on the Platts window. The seller was Glencore International AG, which sold three times in the previous two days. Naphtha's premium to London-traded Brent crude futures declined USD 5.88 to USD 68.42 a ton at 5:45 p.m. Singapore time, based on Bloomberg data. This crack spread, a measure of refining profit, was the narrowest since July 7.

MRC

(Bloomberg) -- Total SA's overhaul of its refining, petrochemicals and marketing businesses isn't in preparation for a sale, Chief Executive Officer Christophe de Margerie said. ⌠No, there is no planned IPO or sale, he said at a briefing to discuss the merger of the refining and petrochemicals divisions and creation of a separate fuel- marketing operation. ⌠One can never say never, but our biggest preoccupation is to make this tool better performing. Total, Europe's biggest refiner, said there won't be job cuts following the reorganization.

⌠There is urgency because the market is bad. The European market is not growing, Margerie said today, adding that refining margins were negative in August and early September and have now climbed to about USD 22 a ton.

De Margerie raised a profit target for the refining and marketing business between 2010 and 2014.

The aim of the plan is to ⌠unlock value for the activities, even in European and U.S. markets where demand for fuel products is decreasing, he said. ⌠I think we can make refining and chemicals profitable in Europe.

Europe's third-largest oil company has reduced refining through the closure of its plant near Dunkirk in France, capacity reduction at Normandy and the sale of its 49 percent stake in Spain's Cia. Espanola de Petroleos SA. Total is also trying to sell its Lindsey plant in the U.K.

MRC

(MRC) -- This year, Ukrainian producer Linik increased the output of polypropylene (PP) by 29% to 70,200 tonnes. September was rather unsuccessful for Linik, though the company plans to increase PP output in October, according to MRC ScanPlast.

In September, Ukrainian Linik reduced PP output to 5,500 tonnes that was 28% less than in August. A week-long shutdown for turnaround as well as the accident in late September resulted in a decline of PP output. As a consequence, the Ukrainian producer cut PP supply to the domestic market at the end of the month.

In general, over the first nine months, Linik increased PP production volume to 70,200 tonnes. For comparison, during this period last year Linik's total PP output made 54,560 tonnes. Such a low production rate last year was due to May-June turnaround of all the production facilities, including oil refinery.

In October, the company plans to increase PP production up to 9,000 tonnes.

MRC

(Plasteurope) -- Chinese chemical giant Sinopec (Beijing) has begun work on a CNY 18bn (EUR 2.1bn) coal-based petrochemicals and polyolefins complex in Zhijin, Guizhou province. The complex will include a 600,000 t/y methanol-to-olefins unit, a 300,000 t/y LDPE plant and a 300,000 t/y PP plant. The timing of the project was not disclosed.

The Chinese group also announced that it had commissioned a coal-to-liquids pilot plant in Zhenhai in August, a project it carried out in cooperation with Syntroleum Corp (Tulsa, Oklahoma).

MRC