SIBUR and Gazprom agree a long-term supply contract

(sibur) -- SIBUR and Gazprom have signed a long-term contract to supply natural gas liquids (NGL) from the Surgut Condensate Stabilisation Plant to the Tobolsk-Neftekhim facility up to 2021.

The annual supply of NGL between 2012 and 2016 will increase from 440,000 tonnes to more than one million tonnes. Agreement on the volumes of hydrocarbon feedstock to be supplied in subsequent years will be reached at a later date.
The contract provides for formula pricing with reference to market conditions for NGL product processing and the cost of transportation and NGL fractionation.
In addition, the parties agreed to continue talks on supplying hydrocarbon feedstock to SIBUR gas-petrochemical enterprises located in other regions of Russia.
Dmitry Konov, CEO of SIBUR, said: "Issues surrounding long-term raw material supplies are important for the company's investment development. Through a strategic partnership with Gazprom and other leading oil and gas companies, SIBUR is able to multi-source light hydrocarbons, providing a base for the sustainable growth of petrochemical production".

SIBUR is the leading petrochemical company in Russia and Eastern Europe. The Company operates across the entire petrochemical process chain from gas processing, production of monomers, plastics and synthetic rubbers to the processing of plastics. SIBUR is a vertically integrated company with its gas processing facilities providing feedstock for its petrochemical production.

MRC

(basf) -- BASF is increasing the prices of the polyalcohols neopentylglycol (NPG), trimethylolpropane (TMP), hydroxypivalic acid neopentyl glycol ester (HPN), 1,6-hexanediol (HDO) and 1,5-pentanediol (PDO), with immediate effect or as existing contracts permit by EUR150/mt in Europe.


These price adjustments are necessary to support BASF's ongoing efforts to assure highest levels of product and service quality to its customers and due to continued increases in raw materials and energy prices.
The polyalcohols mentioned are widely used in solvent-free coatings and for the production of polyurethanes, alkyd resins, unsaturated polyester resins and synthetic lubricants.

MRC

(europolitics) -- Apollo Global Management, a private equity fund, obtained the European Commission's green light to buy Taminco, a Belgian chemical firm, on 13 February.

The executive's decision clears the acquisition of the Belgian producer of alkylamines (chemicals used in a wide range of products, including detergents, insecticides, fertiliser and water purification) by the US-based equity fund active in various businesses worldwide, particularly in the chemicals sector. Apollo has offered EUR1.1 billion to CVC Capital Partners, which currently owns a controlling share in Taminco.

The Commission concluded that the transaction would not raise competition concerns because the parties do not operate on the same markets and will continue to face competition from other operators on related markets. The investigation confirmed the absence of overlap between Taminco's activities and those of other companies currently owned by Apollo, but explored potential vertical effects on markets for methylamine, used as an input by another chemical firm controlled by Apollo, Momentive Performance Holdings LLC.
The executive concluded that although Taminco is an important supplier of methylamine, there are a number of other suppliers of this product on the market. At the same time, the volumes of methylamine needed to produce polyurethane catalysts are not significant in comparison with its other applications. The merged entity would therefore be unable to shut out competing methylamine suppliers.

MRC

(nasdaq) -- Saudi Basic Industries Corp., or Sabic, and China Petrochemical and Chemical Corp. (SNP), or Sinopec, have agreed to start negotiations with Trinidad and Tobago to possibly build a USD5.3 billion methanol complex in that country, according to the world's largest petrochemical maker by market value.

Sabic and Sinopec together were selected by Trinidad and Tobago over other international bidders, Sabic said in a statement posted on the Saudi bourse website Saturday.
The approval is for the start of negotiations on establishing the complex, and is not binding for either side, the statement added.
Last month Sabic signed a protocol of cooperation with Sinopec to explore new business opportunities.

Sabic is 70 percent owned by the government of Saudi Arabia.

MRC

(noodls) -- INEOS Technologies is pleased to announce that it has licensed its Innovene PP process to Zhong Tian He Chuang Energy Company Limited. Located in Ordos City, Inner Mongolia Autonomous Region, the 350kta plant will manufacture a full line of polypropylene resins, including homopolymers, random copolymers, and impact copolymers,.and will serve the rapidly growing Chinese PP markets.

Zhong Tian He Chuang is a joint venture between China's largest petrochemical company-Sinopec, and China's largest coal company-China Coal Energy Group Co.,Ltd. The final selection of Innovene PP in their Methanol -To- Olefin complex demonstrates a growing appreciation for Innovene PP in the Chinese coal industry.

Peter Williams, CEO of INEOS Technologies, commented: "INEOS is very proud to be selected as partner for this project in the growing Chinese coal chemical industry. INEOS licensed over 2 million tons of petrochemical capacity in China during 2011 and looks forward to participating further in the growth of the Chinese petrochemical industry."

MRC