Saudi Kayan to begin trial runs at petrochemical complex in Jubail

(plastemart) -- Saudi Kayan Petrochemical Company expects to begin trial runs at its integrated petrochemical steam cracker complex in the Jubail Industrial City in the third quarter of 2010, as pre-commissioning is on schedule.

Sabic holds a 35% stake, while the privately-owned Al Kayan Petrochemical Company owns 20%. The balance 45% is held by Saudi shareholders following an initial public offering in 2007. The complex centers around a steam cracker with a nameplate capacity of 1.35 mln tpa of ethylene, 550,000 tpa of propylene, 109,000 tpa of benzene, 680,000 tpa of polyethylene, 350,000 tpa of polypropylene, 535,000 tpa of ethylene glycols, 260,000 tpa of polycarbonate, and other petrochemicals from 16 plants.

MRC

(plastemart) -- Nova Chemicals has signed a memorandum of understanding with Hess Corporation and Mistral Energy to buy and transport all the ethane produced from Hess's Tioga Gas Plant in North Dakota via a pipeline to Alberta, Canada under a long-term arrangement. The pipeline is expected to start up in Q3-2012 and is subject to regulatory and other approvals.
Declining production of ethane in the province has driven the contract with Hess, wherein Mistral will design, construct, own and operate the proposed Vantage Pipeline. The initial pipeline capacity is planned to be approximately 45,000 bpd of ethane with the potential for expansion to about 60,000 bpd to handle future ethane supply from Williston Basin producers. This arrangement is one of several projects by Nova Chemicals to complement conventional ethane supply sources in Alberta for its Joffre petrochemical complex, with a capacity to produce 4.8 bln lbs/year of ethane-based ethylene and 860 million lbs/year of polyethylene at Joffre. Alberta ethane production, stripped from natural gas streams, has fallen to 222,000 bpd, down from 240,000 bpd.

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Gradual suspension of capacities in Kapotnia (Moscow oblast) and Ufa in May became one of the main reasons of further polypropylene price increase in the Russian market. To mid-June raffia prices in the market went up to the level RUB 58.000 - 62.000/mt, including VAT, FCA. To month-end raffia prices in the Russian market started slowly declining and reached the level RUB 58.000 - 59.500/mt due to the resume of production in Neftekhimia and Ufaorgsyntez capacities. As a result, many Russian converters have essentially decreased polypropylene purchases while expecting another price fall.

However, in spite of further decrease of prices, the Russian market saw another price elevation. Technical problems at Stavrolen have led to suspension of polypropylene capacities. Tomskneftekhim facilities were shut down for planned repairs last week. Other Russian producers also plan to reduce raffia production in July.

Lack of raffia in July is partly covered with supply from Ukraine. The first shippings from Lipol started last week already. Also some market players expect the resume of PP production at Stavrolen. Yet small raffia volumes are offered in the range of RUB 60.000 - 61.000/mt, including VAT, FCA.

MRC

More information about Russian polypropylene market is available in MRC Price reports.

(JPC) -- In a bid to reduce costs, Japan Polypropylene Corp. will close two relatively old polypropylene plants in 2011. A 90,000 tpa plant at Kashima, operational since 1970, will be shut in May 2011. A 79,000 tpa plant in Ichihara, operational since 1967, will be shut in June 2011.

This step has been taken by the company as part of its restructuring plans in a bid to cope with deteriorating PP demand in the domestic market and enhance the competitiveness of its PP. Japan Polypropylene is 65:35 owned by Japan Polychem and Chisso, and it currently has 11 PP plants in Japan with a total capacity of 1.244 million tpa.

MRC

(Sabic) -- Sabic has reported encouraging Q2 figures - net profit almost tripled from the same period last year, rising to $1.3bn as a result of higher sales and increased production.

The increase in the net income for the quarter ended June 30, 2010 compared with the same quarter in 2009 is attributable to the increased production and sales volumes with the new capacity coming on-stream at Sharq, Yahsab and the joint-venture with Sinopec in China.

MRCMRC Reference

Sabic. The share in the Russian market in 2008:
PE - 0.2%;
PP - 0.4%;
PS - 0.2%.

Annual sales growth in Russia over the last 5 years:
PE - 33%;
PP - 62%.