Chevron to acquire about 1/3 in joint project with Rosneft

(Vedomosti) - Chevron will acquire about 30% in the joint project on Western Black Sea shelf developing with Rosneft, said the source close to the Russian company. Investments into geological survey are going to amount to $1 bln. The first stage of the project will be financed by Chevron, said Igor Sechin, Russian Deputy Prime Minister. If the prospecting is successfull, total expenses might exceed RUB 1 trillion ($ 32 bln. according to the current Central Bank exchange rate).

MRC

Comparing with 2008, growth of capacities dropped by 63%. MRC analysts do not regard this figure as critically small for the market as the equipment, capacity of which exceeds current PE consumption nearly 2 times, had already been installed in the market during the last decade.

At year-end, 331 PE processing lines were installed in that sector. The pipe extrusion sector demonstrated the highest growth of capacities (+92 kt/year) in 2009, despite the fall of pipe-grade HDPE consumption by 32% according to the results of the year. That sector is followed by the film extrusion (+57 kt/year) and cable extrusion (+28 kt/year) sectors. Converters in these three sectors are likely quite optimistic about r Probably, in these three sectors exactly the converters are optimistic about their business outlooks for the next 2-3 years.

MRC

For more detailed analysis of processing capacities and polyethylene consumption in the context of sectors, markets and types of finished goods of each converter is available in ⌠Polyethylene - 2010 Annual report.

The demand for PVC plasticizers in the Russian market keeps up growing. Single plasticized PVC producers tell that in June plasticizer sales exceeded the production. Further increase of production is impossible due to insufficient DOF supply in the domestic market. In July even some big producers of plasticized PVC faced problems with purchases of additional plasticizer volumes. Last month the demand in the Russian market was covered by DOF supply from Eastern Europe. However, force majeur at one of the biggest plasticizer plants of ZAK company in Poland has led to decrease of export quotes and sharp price increase. So, European DOF went up in price by EUR 90 - 100/mt for July.

Single companies offer DOF from South Korea and North America, however, the first plasticizer supplies are expected no earlier than mid-August. For now, Russian converters are forced to limit the production. DOF price range in the Russian market is quite big and is in the range of RUB 72.000 - 92.000/mt, including VAT, FCA.

MRC

For more information about Russian DOF market please refer to MRC Annual reports.

(prw) -- Equipolymers has completed the previously announced sale of its PTA and PET production facilities at Ottana in Italy to a joint-venture set up between Ottana Energia and Indorama.

The Ottana facility has capacity to produce around 190,000tpa of PTA and 160,000tpa of PET resin.

Equipolymers will continue to produce PET resins at its remaining European manufacturing site at Schkopau in Germany, which has capacity to produce around 335,000tpa of PET.

MRC

(Polimerica) -- The LyondellBasell polypropylene plant in Terni, in central Italy, was planned to be shutdown on 30 June but after a recent meeting at the Ministry of Economic Development there is hope for the sale of the assets.

Apparently Novamont, a producer of biopolymers in Terni, as well as a group of local entrepreneurs are also interested in the plants in Umbria.In the meeting, LyondellBasell is to restart the plants - should interest be concrete.

A new meeting at the Ministry is planned for Thursday, 8 July to verify the status of negotiations.

MRCMRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding