Japan petrochemical producers step back from their position in the global market

(chemmonitor) -- Japan-based petchem makers are heard to lose the market competitiveness. This comes as s result of the foreign exchange trends.

Local makers expect fixed costs of units to become larger. However, their utility costs are currently at a comparatively high level.

Some naphtha cracker plants are expected to be closed this year. This will negatively impact downstream units. For instance, the ones employed in synthetic rubber production.

The demand for petchem products is set to stay relatively slow this year in China, especially from the downstream construction sector.

MRC

(chemmonitor) -- The Iranian petrochemical industry is now under pressure of sanctions imposed against it by Europe.

For instance, the European government banned imports of petroleum and crude oil products from the country. Besides, Europe-based makers are prohibited to sell their equipment and technologies to Iranian companies.

This will lead to postponements of polyethylene (PE) and polypropylene (PP) projects launched in the country.

The Europe manufacturers are also forbidden to make any investments in petrochemical projects of the country and form any joint ventures with Iranian firms.

MRC

(styron) -- Styron Europe GmbH and its affiliate companies in Europe announced price increases for all CALIBRE≥ polycarbonate and EMERGE≥ polycarbonate compound & blends products. Effective February 15, or as existing contract terms allow, the price for these products will rise by EUR 250 per metric ton to offset the continued increases in key raw materials, energy and freight costs associated with the manufacturing of CALIBRE≥ and EMERGE≥.

Styron is a leading global materials company, dedicated to innovate and deliver for its customers. Styron's unique and balanced product portfolio brings together plastics, rubber and latex businesses that share feedstocks, operations, customers and end users. The company benefits from global scale, a long-standing tradition of unrivaled customer relationships and a robust innovation pipeline. Styron has approximately USD 5 billion in revenue, with 20 manufacturing sites in all geographies.

Styron's 2100 employees are committed to listen to customers' needs and provide them with innovative and sustainable solutions in markets such as appliances, automotive, building and construction, carpet, commercial transportation, consumer electronics, consumer goods, electrical and lighting, medical, packaging, paper and paperboard, rubber goods and tires.

MRC

(gulfnews) -- Saudi Arabian Oil Co (Saudi Aramco) is seeking to begin producing natural gas from shale rock in the country before the end of the decade as domestic power demand climbs.

"If we can get it by 2020, that will be good," General Manager of Exploration Ebrahim Assa'adan said . "We are in the reconnaissance phase, shooting regional seismic programmes and drilling all over the country."

At least three to five rigs are being used to evaluate the resources, Assa'adan said. Saudi Aramco, the world's largest crude exporter, had about 100 rigs in operation last year and will employ a similar number in 2012, he said, adding that low gas prices remain a "major issue" in developing the prospects.


Saudi Arabia sells gas locally at a subsidised price of 75 cents a million British thermal units, a third of international market rates.

The country needs to examine the way it regulates tariffs to make unconventional gas extraction attractive, Assa'adan said.

MRC

(gulfnews) -- China Petrochemical Corp has agreed to pay USD1.1 billion (Dh4 billion) to increase its stake in an Australian liquefied natural gas development led by Conoco-Phillips and Origin Energy.
Sinopec Group signed a binding accord to boost its holding in the Australia-Pacific LNG venture to 25 per cent from 15 per cent, Sydney-based Origin said yesterday in a statement.

The state-owned Chinese company will buy a further 3.3 million metric tonnes of LNG annually for 20 years, taking its total commitment to 7.6 million tonnes a year.

China plans to more than double its natural gas consumption to cut its dependence on coal and oil. With the completion of the Sinopec Group deal initially announced last month, China has contracts to purchase more than 18 million tonnes of Australian LNG annually, Energy Minister Martin Ferguson said.
"Any number that doubles in China is a huge number," Origin Managing Director Grant King said. "The diagnosis is for robust growth in demand."

The Sinopec Group transaction clears the way for a final investment decision on the second phase of the USD20 billion coal seam gas-to-LNG venture in Queensland state. The companies expect to approve the second stage in "early 2012," Origin said .

MRC