BPCL is to sign a deal with LP Chemical for its maiden foray into petrochemicals

(Plastemart) -- Bharat Petroleum Corporation Ltd (BPCL) is to sign a deal with UK based LP Chemical for its maiden foray into petrochemicals. Negotiations are underway for the JV that plans to set up a petrochemical plant by 2015 at its Kochi refinery in Kerala.

BPCL plans to invest about Rs 13,000 crore, while Rs 6,000 crore will be contributed by LP Chemical. Talks are underway between BPCL and Kerala government for concession on the investment in the planned petrochemical unit.

This September, BPCL had announced the company's plans to spend Rs 40,000 crore in the next five years to set up a petrochemical plant at the Kochi refinery to produce niche products, expand the capacity of existing refineries, gas marketing and exploration and production.

BPCL is looking at producing 500,000 tpa of propylene derivatives. It is also working on a pre-feasibility report to set up a liquefied natural gas terminal, with an investment of around USD1 bln (Rs 4,700 crore). The terminal will have a capacity of 5-6 mln tons and it is working on two locations, one on the east coast and the other on the west. BPCL also plans to expand its Kochi and Mumbai refineries.

MRC

(Arabian oil and gas) -- The acquisition would improve Aramco's fracking resources and experience base. Saudi Aramco is to join forces with two Chinese state oil companies to take a USD2.2 billion stake in Frac Tec, and American company dedicated to fracking processes and equipment.

The USD2.2 billion deal will see Aramco, Sinopec and CNOOC take up to 30% of Frac Tec, according to a Reuters report citing people familiar with the deal, who added that Frac Tech was also in advanced talks with Saudi Aramco, Repsol-YPF SA and Sinopec to establish three separate fracking joint ventures in the Middle East, Argentina and China.

The company planned to close the deals by the end of February, the sources said, ahead of a planned initial public offering targeted to raise about USD1.15 billion.

MRC

(Bayer) -- Bayer CropScience is pleased to announce that the settlement agreements with U.S. long-grain rice growers in connection with the biotech rice litigation have taken effect. A sufficient number of now-verified registrations for the settlement program have been filed by growers to represent 85 percent of U.S. long-grain rice acreage, a threshold point established for the agreements to become binding.


As agreed to in the settlements, Bayer CropScience will pay up to USD750 million to amicably resolve claims submitted by growers. The settlement program was available to all U.S. farmers who had been growing long-grain rice during the period of 2006 through 2010.

Bayer CropScience regards the inclusion of all long-grain rice growers in the settlement program, whether they had filed a lawsuit or not, to be crucial to demonstrating the company's long-term commitment to rice, which remains an important crop for Bayer CropScience throughout the world.

Bayer already has established appropriate provisions for the settlement program.

Although Bayer CropScience believes it acted responsibly in the handling of its biotech rice, the company considered it important to resolve the litigation so that it can move forward focused on its fundamental mission of providing innovative solutions to modern agriculture.

Following the detection in 2006 of traces of biotech rice in long-grain rice harvested in several Southern U.S. states, Europe imposed restrictions on U.S. long-grain rice imports, even though the rice posed no food safety issues. Rice destined for Europe at the time accounted for less than 5 percent of U.S.-grown rice; markets adjusted and that rice quickly was diverted and sold in other markets.

MRC

(Plasteurope) -- Almost one year after Shell and Qatar Petroleum inked a memorandum of understanding to study the development of a massive petrochemical complex in Ras Laffan/Qatar. The two players announced that they had taken their cooperation to the next level. At the beginning of December 2011, Qatari energy minister Mohammed bin Saleh Al-Sada signed an agreement with Shell CEO Peter Voser outlining the scope and commercial principles of the proposed petrochemical hub.

Specifically, the Ras Laffan complex - of which Shell will control 20% and Qatar Petroleum the remaining 80% of shares - is to include a world-scale steam cracker, fed by natural gas sourced in Qatar, as well as a 1.5m t/y mono-ethylene glycol (MEG) plant using Shell's "Omega" technology and a 300,000 t/y linear alpha olefins line, powered by Shell's higher olefin process (SHOP). Once operational, most of the hub's output is to go towards the growing Asian markets.

Specifically, the Ras Laffan complex - of which Shell will control 20% and Qatar Petroleum the remaining 80% of shares - is to include a world-scale steam cracker, fed by natural gas sourced in Qatar, as well as a 1.5m t/y mono-ethylene glycol (MEG) plant using Shell's "Omega" technology and a 300,000 t/y linear alpha olefins line, powered by Shell's higher olefin process (SHOP). Once operational, most of the hub's output is to go towards the growing Asian markets.

Welcoming the progression, Al-Sada said, "This critical petrochemicals project fits well with Qatar's strategy to strengthen and further diversify its growing chemicals industry and represents an important milestone on our journey to becoming a significant global petrochemicals producer."

MRC

The price increase will also apply to current supply agreements as soon as and to the extent permitted by their terms and conditions.

Ethylamines are starting materials for the production of various intermediates that are used, for example, in the agrochemical and pharmaceutical industries.

MRC