India signs energy cooperation deal with Iraq for refining and oil exploration

MOSCOW (MRC) -- India and Iraq have signed an energy-cooperation agreement spanning oil exploration and refining as well as work toward establishing a 10-year crude oil supply agreement from the Middle East nation, reported Hydrocarbonprocessing.

Iraq is eager to boost oil supplies to India, one of the largest oil consumers, in the face of shrinking demand from the US, which has been getting more of its oil and gas from domestic shale deposits in recent years.

India also wants to increase imports from Iraq, its second-largest oil supplier after Saudi Arabia, as a replacement for dwindling shipments from traditional supplier Iran amid the West's sanctions on Tehran.

Neither side said how much additional oil India is likely to import under the long-term agreement. India's crude-oil imports from Iraq are currently estimated at about USD20 billion annually.

Earlier in the day, Indian Trade Minister Anand Sharma said that the two countries would explore the possibility of a trade-payment mechanism in their local currencies as the nations seek more partnerships in various sectors.

Last year, India introduced a rupee trade-payment mechanism with another major oil exporter, Iran. However, the international sanctions have made it tough for shippers to secure insurance for carrying Iranian oil to India.

Indian oil companies, which so far haven't actively participated in Iraq, now appear more interested in tapping more oil from the country.

Iraqi Prime Minister Nouri al-Maliki said his country will seek partnerships with India in pharmaceuticals, chemical and agricultural sectors.

As part of the discussions, Iraq also offered state-run Indian companies exploration of three oil and gas blocks in Middle Furat Oil Field. It also allowed three Indian oil companies - ONGC Videsh Ltd., Mangalore Refineries & Petrochemicals Ltd. and Reliance Industries - to bid for the Nasiriya oil and gas project.

We remind that, as MRC informed previously, India's petrochemical industry is one of the fastest growing industries in the Indian economy. It provides the foundation for manufacturing industries such as pharmaceuticals, construction, agriculture, packaging, textiles, automotive, etc.

The future of the Indian petrochemicals industry is bright with domestic demand driving the market for products. With Government support slowly falling into place, the future could see more investments from multinationals as well as domestic companies. Thus, the UAE-based company, Uniplas Petrochemicals, is planning to set up a 150,000 tpa capacity petrochemical complex in India, worth nearly Rs 55bn (USD1m), by using foreign direct investment to produce caustic soda, ethylene, chlorine, PVC (polyvinyl chloride) and PVC compounds. Besides, SIBUR, Russia's largest petrochemical company, and Reliance Industries will bulild a butyl rubber plant with the capacity of 100,000 tpa, which is expected to kick off in next six months in Jamnagar.
MRC

Innovia Films to invest in BOPP films capacity expansion

MOSCOW (MRC) -- Innovia Films, a division of Innovia Group, announced a 20 million pound investment package for the installation of additional Biaxially Oriented Polypropylene (BOPP) film capacity and a 'state-of-the-art' gas turbine at its UK site, according to the company's press release.

The additional BOPP capacity will assist the company in meeting the increasing worldwide demand for its speciality grades of BOPP film.

The investment is expected to increase the company's global output by a further 10%, and will support its research and development teams to accelerate their product and market development introductions.

Work will commence immediately and it is planned that the new capacity will be fully commissioned in 2015.

The decision to invest in a gas turbine was made a few months ago and preparation work on the Wigton site is already well in hand. The turbine will improve the company’s UK energy efficiency and performance and will reduce the carbon footprint of all products produced at the Wigton site by 20%, including the company's leading renewable and compostable NatureFlex films.

Mr David Beeby, CEO, Innovia Group expressed his enthusiasm saying "This is very exciting news and another step forward in developing our company and supports our ongoing commitment to customer service, innovation and growth."

As MRC wrote previously, another European BOPP films producerTreofan Group, a global leader in BOPP films headquartered in Raunheim, Germany, aims for considerable global growth in the coming years.

Innovia Films is a leading global manufacturer of two 'families' of speciality products supplied into the packaging, labels, tobacco overwrap and securities markets - Biaxially Oriented Polypropylene (BOPP) and Cellulose based films. With a turnover in excess of EUR400m, its total annual film production capacity currently stands at more than 120,000 tonnes.
MRC

July PET output in Russia grew by 5%

MOSCOW (MRC) -- The July production of polyethylene terephthalate (PET) chips in Russia increased by 5% from June and reached a record high in the history of the industry, according to MRC ScanPlast.

The July output in Russia totalled 43,400 tonnes of PET. Three plants have raised their capacity utilisation simultaneously: SIBUR-PETF, Senezh and Alko-Naphtha. The Kaliningrad producer accounted for the largest increase in production.

Almost all the produced quantities were supplied to the domestic market this summer on the back of high sales. Exports remained low and amounted to 1,400 tonnes.
The total PET output is expected to drop in the country in August. The reason for the reduced production will be an unscheduled outage at Senezh. According to our estimates, the output of Russian PET chip grades will fall by 4,500-5,000 tonnes in August from July.

MRC

July PVC output in Russia grew by 1%

MOSCOW (MRC) -- The total output of unmixed polyvinyl chloride (PVC) in Russia increased by 1% in July, despite an emergency shutdown of production at Khimprom (Volgograd) and reduced capacity utilisation at SayanskKhimplast, according to ScanPlast MRC.


The July production of unblended PVC (emulsion and suspension) in Russia rose to 53,830 tonnes from 53,200 tonnes in June. The increased capacity utilisation of the Bashkir Soda Company (formerly Kaustik (Sterlitamak) allowed to offset lower production at SayanskKhimplast and Khimprom (Volgograd).

The July production indices in volume terms are, as follows:

Russia's largest PVC producer SayanskKhimplast reduced capacity utilisation by 5% last month, its PVC output fell to 26,600 tonnes. The Bashkir Soda Company increased its PVC capacity utilisation in July by 7% from June to 18,400 tonnes. Kaustik (Volgograd) kept the June's level of capacity utilisation, its PVC production amounted to 7,870 tonnes.

As already mentioned, Russia's only producer of emulsion PVC Khimprom (Volgograd) was forced to stop production of polymer on 15 July because of the collapse of part of the roof at the vinyl chloride monomer (VCM) unit. The Volgograd plant produced less than 1,000 tonnes of emulsion PVC in less than a month period.

The overall output of unblended PVC in Russia totalled 381,700 tonnes in the first seven months of 2013, an increase of 3% year on year. The output of suspension PVC rose to 361,400 tonnes and, on the contrary, the production of emulsion PVC dropped to 10,000 tonnes.

MRC

July PP output in Russia decreased by 4%

MOSCOW (MRC) -- The polypropylene (PP) output in July 2013 fell by 4% from June. The decline in production was caused by an outage for maintenance at Tomskneftekhim (SIBUR group), according to MRC ScanPlast.


The PP production in July totalled 71,200 tonnes, while in June, this index reached 73,800 tonnes. Tomskneftekhim shut down its production for three weeks of scheduled maintenance works since 19 July. The Tomsk plant managed to produce about 5,800 tonnes in less than three weeks of July(10,900 tonnes in June).

Last month, Nizhnekamskneftekhim and Stavrolen kept the June's level of capacity utilisation. The PP output by these plants amounted to 18,500 tonnes and 11,200 tonnes, respectively.

Neftekhimia (Kapotnya) and Ufaorgsintez showed a slight reduction in their output. The plants decreased their capacity utilisation by 5% and 6% from June, respectively, the PP production amounted to 10,5 tonnes and 9,400 tonnes, respectively.

Polyom (Titan Group) reached 100% capacity utilisation in July. The PP output by the Omsk plant reached 15,800 tonnes. The Omsk plant produced about 60,300 tonnes of polypropylene in less than six months of the year. According to preliminary information, Polyom plans to stop its production for a two-week scheduled turnaround from 4 September.

Overall, the PP output in Russia exceeded 473,000 tonnes in the first seven months of 2013, up 27% year on year.

MRC