Supply constraints push Asian ethylene and propylene markets up

(plastemart) -- Spot ethylene and propylene markets firmed up further over the past week in Asia. Overshadowing thin trading activity amidst short holidays in the region as well as lower naphtha values, supply constraints drove the bullish trend.

Supply was affected by ongoing production outages at regional crackers. More crackers are due to be brought offline for maintenance in the next couple of months. Spot ethylene gained over week , while the increase amount was even larger with respect to early March. The market was calm as Chinese players were on holiday for most of last week due to Qing Ming Festival that took place from April 1-3.

Overshadowing weak demand from downstream markets, restricted availability led spot ethylene offers to remain on their firm path for another week.
MRC

(plasticsinfomart) -- In partnership with Brazilian petrochemical company Braskem, Tetra Pak's "green" polyethylene caps for liquid cartons are made from sugarcane derivatives.

Two popular milk brands are currently using Tetra Brik Aseptic packages using the "green" PE StreamCap 1000, increasing the company's environmental performance of its products.

The company is launching "green" alternatives for three additional caps: the DreamCap 26, the LightCap 30, and the Helicap 27. The "green" caps will be distinguished from the original caps by a leaf logo, embossed on the cap.

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(cen.acs) -- PPG Industries plans to cut 2,000 jobs, mostly in its European architectural coatings business. As a result, the firm will take a one-time USD208 million charge against earnings to account for the cuts and unspecified asset write-offs.

According to CEO Charles E. Bunch, the cost reductions "are needed to ensure that our cost structure is appropriate for business conditions and that all of our operations remain competitive globally."

As the cutbacks go into effect, the firm expects to save between USD40 million and USD50 million this year. When completed, the cost reductions will save the firm about USD140 million annually.

Coatings demand in Europe is "muted", Bunch explains, and it is expected to recover slowly in the aftermath of the European debt crisis. Elsewhere, demand for automotive, aerospace, and industrial coatings is strong, he said.

MRC

(hydrocarbonprocessing) -- Phillips 66 will focus on growing its chemical and midstream segments at the expense of its fuel production business because of the weak outlook for fuel demand, the company's incoming CEO said. The comapny will split 50% of its capital expenditure budget evenly on the two segments.

Phillips 66 will focus on growing its chemical and midstream segments at the expense of its fuel production business because of the weak outlook for fuel demand, the company's incoming CEO said Monday.

Phillips 66, the refining arm of oil major ConocoPhillips that will become a stand-alone company after April 30, will shift its long-term capital spending to its Chevron Phillips Chemical production and DCP Midstream segments.

Chevron Phillips is a 50-50 joint venture with Chevron. DCP is a partnership with ConocoPhillips and Spectra Energy.

Phillips 66 will roughly double its 2012 capital expenditure budget for its chemical business to USD500 million, while its spending on its refining business will grow from just under USD1 billion, Greg Garland, a ConocoPhillips executive vice president who will head Phillips 66, said.

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(news.flanders-china) -- Kunlun Energy, the gas distribution arm of PetroChina, announced it would raise HKD10.48 billion to fund its liquefied natural gas (LNG) projects.

PetroChina has agreed to sell 800 million existing shares and subscribe to the same number of new shares to be issued by Kunlun. PetroChina's stake in Kunlun will be diluted to 58.7% from 65.1% as a result. Kunlun said the share placement will allow it to "capture future expansion and acquisition growth opportunities as and when they arise".

The company began construction of 15 LNG processing plants last year, with a total daily capacity of 20 million cubic meters. Four of the plants, in Inner Mongolia, Xinjiang, Qinghai and Hainan, have a combined daily capacity of 1.38 million cu m.

The rest are slated to come on stream in the next two years. Kunlun also said it has 23 compressed natural gas (CNG) filling stations and 109 LNG stations under construction. Kunlun posted a net profit of HKD5.61 billion for last year, up 33.7% from a restated 2010 profit.

Oil and gas production accounted for 43% of before-tax profit of HKD10.4 billion, against 41.6% from pipeline transmission, 12.8% from city gas sales, and 2.5% from LNG terminal processing.

MRC