MRPL declares force majeure on crude supply

(Reuters) -- State-owned refiner Mangalore Refinery and Petrochemicals Limited has declared force majeure on crude feedstock supply as well as refined product deliveries after having to shut its 15 million tpa (300,000 bpd) refinery due to a water shortage. A general force majeure has been declared for both incoming and outgoing shipments.

There was no immediate information on when India's Mangalore Refinery and Petrochemicals (MRPL) could restore operations at its 300,000 barrels per day (bpd) refinery after it shut due to a water supply shortage. It has declared force majeure and asked for crude shipments to its plant to be deferred. "The shutdown of MRPL is holding up the market for now," a trader said.

India's 60,000 bpd Numaligarh refinery has also been temporarily idled following a fire.

MRC

(canplastics) -- A deadly fire and explosion at a German chemical plant is creating big headaches for the global auto industry.

The explosion on March 31 at Evonik Industries, in the North Rhine-Westphalia region of Germany, has resulted in a shortage of a chemical compound used in plastic fuel and brake lines. Called CDT, it's a key ingredient used in the manufacturing of PA-12, or Nylon-12, which is used to make a specialized plastic for fuel and brake lines. PA-12 is favored because it can withstand heat and can stand up to corrosive gasoline additives.

About 40 percent of the global supply of PA-12 was cut off after the explosion, which killed two company employees. "A significant portion of the global production capacity of PA-12 (Nylon-12) has been compromised," declared a statement issued by the Automotive Industry Action Group. The chemical isn't easily replaced, the group also said, noting, "These are highly engineered products produced via a very complex manufacturing process."

Major automakers are reportedly concerned, but not yet panicked, about the situation. ⌠We are monitoring the situation and working with our suppliers, Ford spokesperson Todd Nissen said in a statement. ⌠At this point, we have not had any production disruptions. Nissen added that Ford has also not altered its future production schedule.
MRC

(polyestertime) -- Despite tepid performance in Q4, Reliance Industries Ltd. Plans to expand its petrochemicals businesses in anticipation that robust demand from the polymer sector will help offset weak global fuel sales.

USD8 bln will be utilized to boost capacity and USD4 bln will be invested on a plant to make a combustible gas for powering its refineries and petrochemical. This outlay amount will be its highest since completing its second refinery in 2008 despite posting its biggest profit decline in three years.

RIL's net income declined 21% to Rs 42.4 bln in the three months ended March 31, according to an April 20 eegulatory filing. Pretax profit from petrochemicals fell 17% to Rs 21.7 bln, while earnings from refining dropped 32%. The two businesses accounted for 78% of the company's pretax profit in this quarte
MRC

(polyestertime) -- Players in both China and Vietnam report that polymer demand in their respective countries has
been slowed by weakness in the construction sector and slower than expected economic growth rates. Both traders and converters complained that their sales have dropped significantly when compared with the same period in the past year as a result of the disappointingly sluggish economic environment.

According to local media reports, investment in China's property market is slowing down while sales of new houses are declining as reduced economic growth and government efforts to constrain inflation in the country's property sector have reined in construction activity.

Chinese builders broke ground on 294.27 million square meters of new housing space in the first quarter of 2012, a decrease of 5.2% when compared with the same period of last year. 152.39 million square meters of housing space was sold during the first quarter, a drop of 13.6% year over year.

Meanwhile, sources in the real estate industry estimated that the Chinese housing market contained enough unsold housing space to meet demand for the next four and half months.

MRC

(hydrocarbonprocessing) -- Argentina is seeking joint energy ventures with Brazil after the international community condemned Argentina for plans to nationalize oil group YPF, the country's biggest oil and gas producer.

Julio de Vido, the planning minister who is in temporary charge of YPF, traveled to Brazil for talks with Edision Lobao, Brazil's energy minister, and Maria das Gracas Silva Foster, Petrobras chief.

Last week, Argentine President Cristina Kirchner sponsored legislation to seize a 51% stake in the YPF from Spain's Repsol YPF. "The challenge that this new YPF and Petrobras have is to work together, in joint businesses and joint finances," de Vido said, according to the FT.

Brazil's state-run energy giant Petrobras,said Friday it will continue to invest about USD500 million a year in Argentina even as Argentina moves to expropriate a major oil and gas company from private investors.

MRC