INEOS announces new world scale alpha-olefins unit in the United States

MOSCOW (MRC) -- INEOS plans to build a new 350,000 tpy linear alpha olefins plant in the US Gulf Coast region, the company announced at its site.

The project is targeted for completion by the end of 2016. Beyond then, it could be expanded by an additional 50%, said Bob Learman, CEO of INEOS Oligomers. Ultimately, the capacity could reach over 500,000 tpy, he added.

"INEOS Group already has a significant footprint on the GUlf so we have ready access to key resources," said Learman. "We have been working on this project for the past year and it is now ready to scale up for a new phase of activity."

The company’s focus on polyethylene comonomers and polyalphaolefins and its access to cheaper ethylene makes the project a "very attractive opportunity", said Joe Walton, business director at INEOS Oligomers.

INEOS is also considering an expansion at its Joffre facility in Alberta, Canada, where it is working to raise linear alpha olefins capacity by 10%.

That project is expected to be completed by the end of the 2014 first quarter.

"The global demand for lubricants has been impacted by the current difficult conditions in both the European and Asian automotive sectors" said Walton. "Despite this backdrop, our [poly alpha olefins] business has been quite resilient. It will continue to benefit from lubricant reformulation activity to attain better fuel economy and to lower carbon emissions".

"INEOS Oligomers is the world’s largest merchant supplier of PAO and our investment plans will ensure we maintain this positio," he added.

As MRC wrote before, Ineos formed PVC joint venture with Solvay. Two of European biggest chemical companies have agreed a joint venture that will create one of the worldпїЅs largest producers of PVC plastics by revenues. Solvay, the Franco-Belgian chemicals company, will pool its European business that creates chlorvinyls - the base materials for PVC plastics with that of privately owned rival Ineos Group , in a move that will eventually result in the Anglo-Swiss company taking full control of the joint venture.

INEOS is a global manufacturer of petrochemicals, speciality chemicals and oil products. It comprises 15 businesses each with a major chemical company heritage. Its production network spans 51 manufacturing facilities in 11 countries throughout the world.

MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announced today that it has closed an agreement with TOTAL to acquire its majority interest of 56.86% in Rosier SA, said Boreaslis.

Rosier - is a mineral fertilizer manufacturer with two production facilities (Moustier in Belgium and Sas van Gent in the Netherlands) and markets its products in more than 80 countries worldwide. Rosier generated sales of EUR278 million in 2012.

Borealis has offered EUR 192 per share for TOTAL’s majority interest. On the same date, Borealis also completed the acquisition of GPN SA. GPN SA is France’s largest nitrogen fertilizer manufacturer. Borealis is already active in nitrogen fertilizers in Central Europe, as well as in France following its acquisition of PEC-Rhin SA, today known as Borealis PEC-Rhin SAS, in early 2012.

"These acquisitions are in line with our strategy to grow our fertilizer business, to keep our number 1 position in Central and Eastern Europe and to become a leading producer in Europe", says Mark Garrett, Borealis Chief Executive. "|We believe that fertilizers in Europe are an economically sustainable and attractive area of activity and we are committed to invest in the assets to ensure reliable production and customer service. We are happy to welcome our new colleagues in France, Belgium and the Netherlands to the Borealis Group and are looking forward to a successful cooperation."

As Borealis acquired the 56.86% interest in Rosier, it will be required to launch a mandatory public takeover bid for the remaining outstanding shares.

As MRC wrote before, Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals, announced that it has acquired DEXPlastomers VOF in Geleen, The Netherlands, from DSM Nederland BV and ExxonMobil Benelux Holdings BV.
MRC

MOSCOW (MRC) - Negotiations on European polypropylene (PP) prices for July have begun for CIS markets this week. Some European producers announced price increases, others are planning to keep the June prices for July, according to ICIS-MRC Price Report.

The contract price of propylene in Europe for July deliveries was agreed at the level of June. Though the price of propylene were left at the roll over from June, some European producers aimed to increase PP prices by EUR20/tonne, citing limited export quotas.

Other the European producers keep their PP prices for July at the level of June. At the same time, export PP prices were increased only by those producers who offer PP in June in the lower price range.

In general, the deals for the supply of European PP this week were discussed at the range of EUR1,170-1,210/tonne FCA, for homopolymer PP.

Deals for copolymers of propylene were voiced in the range of EUR1,220-1,300/tonne FCA. In June, the European PP prices for CIS markets were in the range of EUR1,150-1,210/tonne FCA, for homopolymer PP.
MRC

MOSCOW (MRC) -- Some of European largest economies face a growing risk of fuel-supply disruptions, as commercial problems that have already driven a swath of the region's oil refineries out of business look set to intensify, said Hydrocarbonprocessing.

The vulnerability of the sector has drawn the attention of policy makers across the continent, with fuel security becoming a rising topic in the policy agendas of many governments and regulators. They are concerned that the need to import more fuel will mean higher prices at the pump for consumers who are already contending with a weak economy.

Europe's aging refineries have struggled to adjust to the lower demand and weaker profit margins that accompanied the economic slowdown. They have also been hit by increased competition from newer refineries in the Middle East and Asia, which benefit from lower operating costs.

Fifteen European refineries have shut down since 2008, idling 8% of the region's fuel-processing capacity, while many others are running at reduced capacity. The result is that, even as Europe's total oil consumption has fallen, the proportion of its refined oil products that are imported has risen to 28% in the first quarter of this year from 20% in 2007, according to data from the IEA.

Now, the IEA is warning that a flood of fuel production from new plants in Asia and the Middle East could push global crude-oil processing to an all-time high of 77 million bpd in the third quarter, squeezing profit margins tighter and potentially leading to more closures.

The problem has taken on particular urgency in the UK since the sudden closure last year of the 220,000-bpd Coryton refinery near London, following the bankruptcy of its owner, Petroplus.

The UK has seen its tally of refineries fall to seven from 18 in the late 1970s. In the wake of the Coryton shutdown, the country's Department of Energy and Climate Change is reviewing the role of the refining industry in energy security and the way the country's emergency oil stocks are held.

Other countries have had similar experiences. According to data provided by BP, the biggest loss in refining capacity between 2008 and 2012 was suffered by France, which lost 25%. Germany's has declined 12% in the same period, compared with 11% in the UK and 8% in Italy.

This has happened in many cases despite the best efforts of European governments. The Petit-Couronne refinery in France languished on the market for 15 months as the government struggled to broker a deal to save the business. Plans for a sale eventually fell through after the final two potential buyers were deemed by a French court to have insufficient funding.

The UK government was keen for a buyer for Coryton to be found, but ultimately was unwilling to provide the financial aid required to keep the plant running.

Higher imports could also cause prices to rise at the pump due to increased transport and storage costs, the IEA said.

But government intervention to save Europe's refining industry is a tough sell in a region suffering both a stagnant economy and sharp public spending cuts. An additional investment of USD21 billion on improvements and upgrades is needed by 2020 just to keep refiners in business, according to a report published by the European Commission in May.

MRC