KBR to perform turnaround services for BP Decatur site

MOSCOW (MRC) -- KBR has been selected to provide the BP Decatur site with specialty turnaround management and turnaround mechanical execution services for one of the six on-site production units at the Western Hemisphere aromatics petrochemical site in Decatur, Ala, said Plastemart.

This plant utilizes paraxylene to manufacture plastic bottles, polyester material and new generation polyesters and resins.

The contract award is valued at USD3.5 mln and underscores KBR’s ability to mobilize skilled resources and execute highly complex, time-sensitive projects.

"KBR has extensive experience serving the petrochemical industry by providing specialized turnaround management, project controls, and direct hire execution services," said Ivor Harrington, Group President, KBR Services.

"KBR has provided supplemental maintenance, annual shutdowns and small capital projects to the site since 1998. We are pleased to have been selected by this valued client and look forward to building on our long-standing relationship as we work toward the successful completion of this project" - added he.

As MRC wrote earlier, KBR was awarded to design and construct an ethylene furnace for INEOS Olefins & Polymers USA (INEOS) that upon commissioning would provide the highest achievable ethylene yields in the industry.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets.

MRC

MOSCOW (MRC) -- Senior executives from Dow Chemical Company (Dow) highlighted the positive impacts of downstream manufacturing, the role of the 'Value Park' model, and the Company's commitment to the region at the 7th MIT Pan-Arab Conference, said Ameinfo.

Jim McIlvenny, senior vice president and chairman of the Dow Sadara Project Office outlined emerging fundamental shifts in the global competitive landscape that are challenging the Middle East's historical feedstock advantage.

He emphasized the need to leverage the region's strong base of petrochemical knowledge to build downstream facilities, supply value-added products and create manufacturing jobs that, in turn, generate more jobs and propel continued growth. McIlvenny also highlighted the importance of collaboration across companies and countries in a globalized world.

"At Dow, we firmly believe in the potential that the Middle East has to offer, as is evident from our growing manufacturing and business footprint. We welcome opportunities, such as this conference, to facilitate dialogue and brainstorm solutions to the rising economic and employment issues facing the Middle East," he added.

As MRC wrote earlier,Dow Chemical would construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, Texas, as part of Dow"s previously announced comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber.

MRC

MOSCOW (MRC) -- Arabian Gulf investors are pouring billions of dollars into petrochemicals in South East Asia as they chase new consumers outside a flagging China, said Thenational.

Thanks to bumper years of high oil prices that buoyed oil and petrochemical revenues, companies from Abu Dhabi to Qatar have a pile of cash to spend in countries with growing populations and low labour costs.

This week Qatar Holding announced it would invest up to USD5 billion (Dh18.36bn) in a Malaysian petrochemicals complex to rival Singapore's in scope, and Dubai's Drydocks World agreed to build a USD2.5bn maritime complex catering to the industry in Indonesia.

Meanwhile, Saudi Aramco is evaluating a refining and petrochemical complex in the Indonesian province of East Java, Qatar Petroleum (QP) is taking a stake in a USD4bn Vietnamese petrochemical complex and Abu Dhabi's Borouge is opening plastics sales offices throughout the region.

The migration of Gulf dollars to South East Asia follows a period of blossoming deals in China.

Sinopec, Saudi Aramco and ExxonMobil agreed in 2007 to invest USD5bn into upgrading a petrochemical complex and build 750 filling stations. A year later Sinopec signed a strategic cooperation agreement with Saudi Basic Industries Corporation (Sabic). Borouge, which is owned by Abu Dhabi National Oil Company and Austria's Borealis, opened its first resin plant in China in 2010 and decided to build a second the same year.

South East Asian petrochemical manufacturing is fuelled by a growing hydrocarbon industry, with investors including Abu Dhabi's Mubadala Petroleum and Kuwait Petroleum. The promise of fresh feedstock is an enticement for Gulf manufacturers who have enjoyed expansive supplies of cheap natural gas in their home countries, but are now facing tighter supplies as governments redirect gas to power generation and producers look to more technically challenging sour gasfields.

"It's not like you could build another 10 petrochemical complexes here, because the feedstock isn't there," said Mr Potter. "Wherever there is interesting feedstock, people are having a look."

American companies that invested in Chinese complexes are also re-evaluating investments, but for another reason. As MRC wrote earlier, a rush of cheap gas unlocked from American shale has ignited a boom in industrial investment in the US, the world's biggest market for petrochemicals above China and Europe.

"All the major US companies who invested in China building their facilities, now with the access to cheap supply of natural gas they are reconsidering their plans for expansion in China," said Mr Al Sadoun. "Because the market is there."

MRC

MOSCOW (MRC) -- Royal Dutch Shell, Europe’s biggest energy company, reported an increase in fourth-quarter profit after oil and gas production rose, said Bloomberg.

Excluding one-time items and inventory changes, profit was USD5.6 billion, up from USD4.8 billion a year earlier. Net income rose 3 % to USD6.7 billion.

Shell is the first of the world’s biggest oil companies to report fourth-quarter earnings.

Chief Executive Officer Peter Voser has lifted output as the company last year started selling more gas than oil for the first time. Shell is expanding liquefied natural gas projects in Asia, where demand for energy is booming, and has raised production at its USD19 billion Pearl gas-to-liquids plant in Qatar, the biggest in the world.

Shell is the first of the world’s biggest oil companies to report fourth-quarter earnings. Exxon Mobil Corp. and Chevron Corp. give their results tomorrow.

As MRC wrote earlier, Ukraine chose Shell last May as a partner to develop the Yuzivska field in the east of the country and regional councils there approved the production-sharing deal last week. Ukrainian government cut 99% of fees for the shale gas deals for the world's largest oil producer Shell, Chevron and ExxonMobil.

Royal Dutch Shell, commonly known as Shell, is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom.

It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is also one of the world's most valuable companies.

As of January, 2013 the largest shareholder is Capital Research Global Investors with 9.85% ahead of BlackRock in second with 6.89%. Shell topped the list of largest companies in the world.

MRC

MOSCOW (MRC) - In 2012, Russian producers reduced their production volumes of large polymers by 1% to 3,480,000 tonnes. Last year, the output of polyolefins dropped, while the production volumes of PVC, polystyrene (PS) and PET increased, according to MRC ScanPlast.

2012 proved to be quite a successful year for Russian makers of large polymers. The growth of domestic demand allowed producers to increase their output. The only exception made producers of polyolefins (polyethylene and polypropylene) that reduced their capacity utilization last year. The implementation of several projects for the start-up of new polymer plants with the total capacity of 1,720,000 tonnes per year were announced for the next five years.

In 2012, the total output of polyethylene by Russian producers made 1,389,000 tonnes, down 10% year-on-year. At the same time, the production volumes of high density polyethylene (HDPE) made 733,000 tonnes, down 13% year-on-year. The output of LDPE and LLDPE fell to the level of 626,000 tonness and 31,000 tonnes, respectively.

The main reason for such a serious decline in the HDPE production was due to a lengthy outage at Stavrolen (Lukoil group). Also, because of the extended turnaround, Gazprom neftekhim Salavat reduced its HDPE production. Last year, Tomskneftekhim, Ufaorgsintez and Angarsk polymer plant reduced their capacity utilization for the production of LDPE, while NefteKhimSevilen completely shut production of polyethylene in February. Only Nizhnekamskneftekhim announced a launch of new facilities in the next five years, said while, the company plans to build another production site with the capacity of 600,000 tonnes per year.

The volume of polypropylene production did not fall that significantly last year. The fairly rapid resumption of production at Stavrolen and growth of capacity utilization at the other sites (Nizhnekamsknftehim, Tomskneftekhim, Ufaorgsintez and Neftekhimia) allowed to reach the total production rate of more than 660,000 tonnes.

The launch the production of polypropylene is expected to take place at two new sites in the second quarter of this year: in Omsk (Polyom) with the capacity of 180,000 tonnes per year, and in Tobolsk (Tobolsk-Polymer) with the capacity of 500,000 tonnes per year. Sibur (the managing company of Tobolsk-Polymer) has already officially announced its intention to start up the new plant in April.

In 2012, the output of unblended PVC (suspension and emulsion PVC) rose by 7% to 616,000 tonnes. The main increase in production was due to Sayanskkhimplast and Kaustik (Sterlitamk). Both plants announced the further expansion of the existing sites. In 2014, a new plant for suspension PVC production with the capacity of 330,000 tonnes per year is expected to be launched in the Nizhny Novgorod region on the basis of the joint venture of Solvin and Sibur's RusVinyl.

Last year, the production volume of polystyrene in Russia amounted to about 362,000 tonnes, up 12% year-on-year. The main increase in output secured Sibur-Khimprom (Sibur) due to the launch of the second production line of expandable polystyrene with the capacity of 50,000 tonnes per year. This year, Nizhnekamskneftekhim plans to launch a new production of ABS plastics with the annual capacity of 60,000 tonnes.

The output of polyethylene terephthalate (PET) by Russian producers increased by 14% to 397,000 tonnes. Such a significant surge in production was due to an increase of capacity utilization at Alco-Naphtha and Senezh plants. This year, the Bashkir plant Polief (Sibur) is going to expand its capacity to 80,000 tonnes. Given the increased capacities in Bashkiria, the total production capacities of Russian PET producers will make 600,000 tonnes per year.

MRC