Shell eyes larger polyethylene presence via Pennsylvania cracker

(hydrocarbonprocessing) -- Shell hopes to get back in the global polyethylene (PE) market through its planned petrochemical complex near Pittsburgh, Pennsylvania, the company said on Wednesday.

"We're not entirely out of the PE business, but we're out of it in a reasonable way. We have to get back into it," said Ben van Beurden, executive vice president of Shell Chemicals. "We're very clear about that."

Earlier this month, Shell unveiled the Pittsburgh site where it will process ethane from the abundant natural gas produced in the nearby Marcellus Shale region. The accompanying ethylene cracker would be the first built in the US since 2000.

In that announcement, Shell said it was considering PE and monoethylene glycol (MEG) units to help meet rising demand in the North American market. On Wednesday, van Beurden was even more forward with the company's strategy. "You have to ask yourself what would make the most sense," he said.

In the big picture, van Beurden said Shell is eyeing a larger global presence in the polyethylene market. "Look at how petrochemicals have grown over past 20 years," he said. "It's doubled in terms of demand. There are plenty of forecasts that say it will double again in next 20 years, and there are a lot of fundamental drivers to make that come true. "PE will have to play a role in that, considering 60% of world's ethylene production will end up in polyethylene."
MRC

(dow) -- The Dow Chemical Company announced plans to invest in a new manufacturing facility for its Dow Coating Materials (DCM) business unit in the Kingdom of Saudi Arabia. Dow Coating Materials is the premier supplier of products and technologies to architectural and industrial coatings manufacturers. The planned facility, which will be located at the Jubail Industrial City, will manufacture a wide range of coating materials for both the Kingdom and export markets worldwide.

"With an unmatched specialty portfolio of advanced materials, we constantly aim at bringing customers differentiation and solving global challenges locally together," said Jerome Peribere, Executive Vice President of The Dow Chemical Company and President and Chief Executive Officer, Dow Advanced Materials Division (AMD). "By investing in a new coatings facility in Saudi Arabia, we are moving closer to our regional customers, and realizing our regional business objectives in a key growth market for Dow."

MRC

MOSCOW (MRC) -- In February import supplies of PET significantly grew in the Ukrainian market. Last month converters and trading companies imported about 20,600 tons of PET granulate that was by 14,600 more than in January, according to MRC DataScope.

At the beginning of the year many local companies announced their intention to increase purchases of the granulate on the back of a more attractive price in the external markets as well as preparation for the season. As one converter said, preforms producers that have available circulating assets decided to use the moment for making purchases.

The growth of contracts from the Ukrainian companies was stipulated by the growing price for the components and PET that allowed to forecast a higher price in March.

Gatronova supplies became record over the whole period of the Ukrainian imports. The biggest Ukrainian converter purchased about 10,000 tons of PET grade A-80 of Pakistani production. There was also a sharp increase in supplies of the Belarusian PET. In general, about 2,300 tons of bottle PET were shipped to Ukraine. Imports from Litva doubled. The Ukrainian converters resumed polymer imports from UAE. Supplies of the Chinese PET decreased, mainly at the expense of shifted purchases in favor of the Middle Eastern material. Imports of the granulate from China made about 2,000 tons that was by 500 tons less than last month.

MRC

(romania-insider) -- The Romanian state will sell the majority stake in the chemical producer Oltchim Ramnicu-Valcea in a bid organized on May 31.

The deadline imposed by the International Monetary Fund (IMF) for ending privatization procedures was end-April. The privatization process will have two stages, and selected investors will be able to negotiate the acquisition of Arpechim, Olthim's main supplier, directly with its owner OMV Petrom.

Romania will sell 54.8 percent in Oltchim and four companies have so far stated interested in the company: Russian TISE, Forte from the United Arab Emirates, Romanian Rompet Romgas and German PCC - already a minority shareholder in the company.

The state will negotiate with the potential investors based on price offers, the only criteria taken into account. The negotiation will be based on evaluation pointing to a EUR 300 million price tag for Oltchim, if the company receives raw material from Arpechim, currently owned by Petrom. Without the raw material supply contract, Oltchim's value is almost zero, reveals an official document quoted by Mediafax.

The Government plans to turn Oltchim's debts into shares and sell them to the future investors in the company. This would increase the company's social capital and dilute the stakes of minority shareholders that unable to put money down to keep their current stakes. The European Commission agreed with the move earlier in March, ruling that this does not constitute state aid.

MRC

(reuters) -- Fitch Ratings has downgraded Turkey-based petrochemicals producer Petkim Petrokimya Holdings A.S.'s (Petkim) Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. Fitch has also downgraded Petkim's National Long-term rating to 'A-(tur)' from 'A+(tur)'.

The rating action reflects a downgrade of Petkim's standalone IDR to 'B' from 'BB-' and a simultaneous one notch uplift to 'B+' for support from State Oil Company of the Azerbaijan Republic (SOCAR; 'BBB-'/Stable), Petkim's main shareholder.

In Fitch's view, Petkim's severe underperformance in Q411 highlights the company's vulnerability in the face of cyclical downturns and signals a further weakening in its competitive position, at a time of reduced demand visibility and increasing price volatility.
MRC