Unblended PVC output in Russia rose by 2% in January-June 2013

MOSCOW (MRC) -- The output of unblended PVC in Russia totalled about 328,000 tonnes in the first half of the year, up 2% year on year, according to MRC ScanPlast.

Only SayansKkhimPlast and Kaustik (Volgograd) managed to increase production in the first six months of the year, whereas other Russian producers showed a negative result.

SayansKkhimPlast produced more than 27,000 tonnes of suspension PVC (PVC-S) in June. The total output of the resin by the plant in January-June totalled 154,200 tonnes, up 6% year on year.

Bashkir JSC "Soda" (formerly Sterlitamak Kaustik) reduced its capacity utilization in June by 7% from May, its June PVC-S production made about 16,800 tonnes. JSC "Sods" produced about 107,300 tonnes of resin in the first half of 2013, down 1% year on year.

The third-largest Russian PVC producer Kaustik (Volgograd) reduced its capacity utilization in June by 2% from May, the total output of suspension made 7,700 tonnes. The Volgograd plant managed to produce about 47,200 tonnes of PVC in the first six months of 2013, up 18% year on year, because of the transfer of a scheduled maintenance at the Volgograd plant for the autumn.

SIBUR-Neftekhim completely shut down its chlorine production in early April as part of the project RusVinyl. The plant managed to produce less than 700 tonnes of PVC-S over a few working days in April.

Thus, the total PVC-S output in Russia amounted to 319,000 tonnes in the first half of 2013, up 3% year on year. SayanskKhimPlast ensured the main increase in the output.

Russia's only producer of emulsion PVC Khimprom (Volgograd) has increased gradually its capacity utilization since May. The plant produced 1,600 tonnes of PVC in June. In January-June, 2013, Khimprom (Volgograd) produced slightly more than 9,000 of emulsion PVC, down 10% year on year.

MRC

MOSCOW (MRC) -- Bechtel announced today that the company was selected in April by the Qatar Petroleum – Qatar Petrochemical Company partnership (QP-QAPCO) to provide project management services for construction of the Al Sejeel mega-petrochemical complex inc, said Yourpetrochemicalnews.

Bechtel will provide project management services over the course of the project starting with the front-end engineering design phase to ensure the quality, safe, and timely construction of the project.

"Bechtel’s contribution to the mega-petrochemical complex will be strategic, as Bechtel benefits from extensive experience and is a leader in the construction of petrochemical plants all around the world," said Dr. Mohammed Yousef Al-Mulla, vice chairman and CEO of QAPCO.

"For more than 70 years we have partnered with customers, contractors, and suppliers in the region to safely deliver quality industrial and infrastructure facilities. This award allows us to continue that legacy and deliver a world-class facility for QP-QAPCO," said Jack Futcher, president of Bechtel’s Oil, Gas and Chemicals business unit. "We are looking forward to working with QP-QAPCO to achieve the vision of making the Al Sejeel Petrochemical Complex a major contributor to the Qatari economy."

The Al Sejeel Petrochemical Complex in Ras Laffan will include an ethylene cracker with the feedstock coming from natural gas projects located in the north of Qatar. It will substantially add to the economic growth of the country and will produce ethylene, high-density polyethylene, linear low-density polyethylene, polypropylene, and butadiene. The complex will be operational in 2018. Bechtel is a leader in the execution of petrochemical projects using traditional feedstock processes as well as nontraditional processes for chemical production from natural gas and coal. Bechtel has built or managed signature petrochemical projects for Borouge in the United Arab Emirates and for CNOOC and Shell in China.

Bechtel is among the most respected engineering, project management, and construction companies in the world. We stand apart for our ability to get the job done right—no matter how big, how complex, or how remote. Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, gas, and chemicals; and government services.

Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, our 53,000 employees team with customers, partners, and suppliers on diverse projects in nearly 50 countries.

As MRC wrote before, by virtue of a decree issued at the end of last year, the Qatari government established the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat), which now holds the exclusive rights to purchase, market, distribute and sell the emirate’s chemical and petrochemical output on the global market.
MRC

MOSCOW (MRC) - Imports of polyethylene (PE) to the Russian market exceeded 350,000 tonnes over the first half of 2013, up by 4% year on year, according to MRC DataScope.
In May and June, Russian PE imports Russia have been going down down. PE imports in June decreased to 56,500 tonnes, imports of linear polyethylene (LLDPE) were cut most of all.

Russian producers in January - June of this year, managed to reduce the import of high-density polyethylene (HDPE), whereas the imports of other PE types increased. Imports of LLDPE and ethylene vinyl acetate (EVA) over this period have increased by 38% and 35%, respectively.
Despite the current depreciation of the Russian rouble against the US dollar and weak demand for polyethylene in some sectors of consumption in the next few months, we can hardly expect a significant reduction in the imports, especially of LLDPE and EVA, production of which in Russia in times smaller than current needs.


MRC

MOSCOW (MRC) - Four major Russian producers of polystyrene (PS) plan to stop for maintenance works over July-August, but market participant a re sure it will not affect the market, according to ICIS-MRC Price Report.

Early next week, Gazprom neftekhim Salavat stops the production of general purpose polystyrene (GPSS) and high impact polystyrene (HIPS) for scheduled maintenance works, which are expected to be finished by the end of this month. Gazprom neftekhim Salavat's output of PS over January-May 2013 totalled 9,700 tonnes, which accounts for 10% of the total PS production in Russia during this period.

Angarsk polymer plant is going shut its expandable polystyrene (EPS) capacities approximately on 29 July for 40-50 days. The output of EPS by the plant over the first five months of 2013 accounted 11% from the total Russia's EPS production, namely 5,600 tonnes.

Russia's largest producer of EPS in CIS counries, SIBUR-Himprom also intends go for a two-week turnaround its facilities in Perm in the middle of August. The output of EPS by the plant over January-May 2013 accounts more than 80% from totall Russian EPS production, namely 40,900 tonnes.

Another Russian producer of polystyrene - Plastic (Group SIBUR) - plans to go for maintenance works it technical work at Uzlovaya plant, including EPS and ABS facilities. Work is expected to begin in August, and their duration will be about a month for EPS line and up to three months for the ABS line. The output of PS in Uzlovaya plant over January-May 2013 made 4,200 tonnes of EPS and 6,000 tonnes of ABS.

All four producers are securing the shipment of PS to their customers ahead of the turnarounds, having formed additional stocks in June and July, which will prevent from tight supply of PS in the third quarter of 2013.
MRC

MOSCOW (MRC) -- Chevron Corp said that its oil and gas business activity is set for a year over year drop in the second quarter as lower crude prices and equipment maintenance takes a toll, said Hydrocarbonprocessing.

In an interim earnings statement, Chevron, the second largest United States oil company in market value after Exxon Mobil Corp, reported steep drops in the average prices it gets for its oil production. United States natural gas prices were up, but Chevron's production is tilted towards crude.

Chevron's interim report, generally considered an earnings bellwether for the United States oil and gas industry, shows that Exxon and other producers might have been stung by the steep drop in oil prices in April amid concerns about the slow global economy.

Chevron and other big oil companies are slated to report full 2Q results in August.

Overall, Chevron produced 2.57 MMbpd of oil and natural gas in April and May, down 2.1% from its average production rate in the full second quarter of 2012. The report compares the first two months of the current quarter to the entire second quarter of 2012 and all of the first quarter of 2013.

Production was flat in the United States, but output in its international operations during April and May was 1.91 MMbpd, down 2.8% from the year before because of maintenance work in Kazakhstan, Australia and Nigeria. Demand for oil and gas also fell in Thailand, Chevron said.

Chevron's oil refining business results were mixed. United States gasoline sales for the entire quarter rose 0.4% year over year to 523 Mbpd. Chevron's refineries processed 1.61 MMbpd, down from 1.8 MMbpd in the second quarter of 2012. Chevron experienced a sharp decline in downstream refining margins during the 2012 fourth quarter too. United States refining throughput increased 183 MMbpd after the company ratcheted up production at its Richmond, refinery that had been damaged by a fire in August 2012 and finished repairs at its Mississippi refinery.

Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States, and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world"s six "supermajor" oil companies.
MRC