Russia's Gazprom fully restores Europe gas flows

(hydrocarbonprocessing) -- Russia has fully restored natural gas shipments to Europe, the country's state gas firm said Monday, after it had been unable to meet rising demand in recent weeks due to cold weather across the continent. Europe relies on Russia for over a quarter of its gas needs.

Russia has fully restored natural gas shipments to Europe, the country's state gas firm said Monday, after it had been unable to meet rising demand in recent weeks due to cold weather across the continent.

"Gazprom has restored in full natural gas supplies to cover demand of European customers," said deputy CEO Alexander Medvedev of Russia's state gas monopoly OAO Gazprom in a statement.

Europe relies on Russia for over a quarter of its gas needs, but supplies have been curtailed since late January as particularly cold winter weather increased Russia's domestic demand and Gazprom failed to increase production to meet the higher demand.

MRC

(hydrocarbonprocessing) -- Poland is still in discussions with the European Union on developing a tax regime that incentivizes shale gas exploration in the eastern European country, said Talisman Energy CEO John Manzoni. Manzoni said initial findings were "not discouraging, just too early to tell" the degree of commerciality.

Poland is still in discussions with the European Union on developing a tax regime that incentivizes shale gas exploration in the eastern European country, Talisman Energy CEO John Manzoni said Monday.

"The Polish government and the EU are still working out how to make the process more conducive to investment," said Manzoni, whose firm is among those attempting to open up Poland as Europe's first major shale gas frontier.

Talisman, which last week said it would reduce its number of US shale drilling rigs in response to lower gas prices there, has completed two of three vertical exploration wells in northern Poland with another planned before the end of the year.

Manzoni said initial findings were "not discouraging, just too early to tell" the degree of commerciality.

MRC

(process-worldwide) -- Korean Homan Petrochemical plans the construction of a million-tons-per-year petrochemical production in Idonesia. A memorandum of understanding with a local steel firm for the acquisition of needed building area is already underway, insiders say.

Jakarta/Indonesia - Homan Petrochemical, the second-largest petrochemical producer in Asia, plans the construction of a new USD 5 billion petrochemical complex in Cilegon, Indonesia, reported the local Jakarta Post. Construction works are planned for 2013, Honam's senior managing director of business development, Kim Gyo-hyun is quoted. "We anticipate that the construction will be completed by 2016, but the Industry Minister (MS Hidayat) expects it can be finished faster," Kim told the press.

Only recently Homan had signed a memorandum of understanding (MoU) with Indonesian public steel company Krakatau Steel, which would provide 40 hectares of land out of the total of 60 needed to set up the compound. Currently, the project undergoes a first feasibility study, with financial issues remaining open for later, more detailed plans.

According to Kim, the facility would use local supplies of raw materials whenever possible. Due to the limited domestic production, imports were nevertheless inevitable, Kim is quoted. Based on the firm's proposal, an annual production of one million tons of ethylene, 550,000 tons of propylene, 600,000 tons of polyethylene, 700,000 tons of mono ethylene glycol, 600,000 tons of polypropylene and 140,000 tons of butadiene is expected.

MRC

(plasteurope) -- Operating profit at US compounder and distributor PolyOne (Cleveland) increased by 33% year-on-year in 2011 to USD 233m on sales up 9% year-on-year at USD 2.9 bn. However, operating profit in the specialty engineered materials segment fell to USD 45.9m from USD 49.7m in 2010, on sales of USD 575m, up 11% year-on-year.

Operating profit in the company's specialty platform, which includes the specialty engineered materials and colour, additives and inks segments, reached a record high of USD 89.3m, up 2% year-on-year, on sales of USD 1.12 bn, up 7%. Operating profit in the distribution segment also reached a high, up 33% at USD 56m on sales up 9% at USD 996m.

Stephen Newlin, PolyOne chairman, president and CEO said that 2011 was a ⌠critical inflection point in the company's transformation into a specialty producer. During the year, it completed the acquisitions of Brazilian specialty engineering plastics producer and distributor Uniplen Industria de Polimeros (Uniplen, Sao Paolo) - and leading liquid colorant, additive and fluoropolymer producer ColorMatrix (Berea, Ohio / USA). The company also divested chlorine and caustic soda commodity manufacturer SunBelt during 2011.

"Looking at 2012, we expect another year of record adjusted earnings per share. However, growth rates may decelerate given the current economic environment,"Newlin said. "While a slowdown in the European economy and a weaker euro pose near term headwinds, we remain extremely optimistic about our medium to long-term growth prospects."


MRC

MOSCOW (MRC) -- In January Ukrainian companies expectedly reduced imports of suspension PVC by twice. Severe frosts at the beginning of the month and a serious growth of PVC prices in the external markets will affect February imports, according to MRC analysts.

In January there is a traditionally lowest demand for PVC. Though the beginning of this year appeared more than modest for the Ukrainian market. In January Ukrainian companies imported nearly 3,764 tons of suspension PVC that was nearly twice as less as in December 2011. More significant import was in January 2011 - 7,231 tons.

The main reason for such low imports was a low demand for PVC in Ukraine. Despite expected growth of PVC prices in the external markets in February, Ukrainian converters didn't make inventories. Many local converters resumed their operation only in February. The domestic producer - Karpatneftekhim (Lukoil group) - also affected the situation in the domestic market.

Last year some trading companies made serious purchases of PVC in US, but this year the situation changed. The bottom of export prices in USA fell at November, nevertheless, Ukrainian companies didn't hurry to make significant purchases of PVC.

Severe frosts at the beginning of the month and the growth of export prices for PVC in Europe (EUR70-100/tonne) will also affect suspension PVC imports to Ukraine in February. Preliminary resin import will make 6,500 tons this month.

In 2011 the Ukrainian market of suspension PVC grew by 7% and reached 134,550 tons. Because of the launch of the resin production at Karpatneftekhim, import supplies of suspension to Ukraine reduced by 5% last year and made 118,530 tons. Over the incomplete 7 months of operation, the Ukrainian producer gained 12% of the market of suspension PVC.

MRC