Kazanorgsintez to shut HDPE capacities for scheduled maintenance

MOSCOW (MRC) - Russian largest producer of polyethylene - Kazanorgsyntez (TAIF, Tatarstan) began a gradual shutdown of its high density polyethylene (HDPE) capacities for scheduled maintenance, according to MRC analysts.

Kazanorgsintez stopped the operatoin of one of its three reactors for HDPE production on Tuesday, 10 September.
The rest two reactors for HDPE production are to be stopped by the end of the week.

Scheduled shutdown of the plant's HDPE capacities, a part of the annual preventive maintenance, will last about 30 days.

The annual HDPE production capacity of the Kazanorgsintez plant is 470,000 tonnes. As per MRC data, Kazanorgsintez produced about 284,000 tonnes of HDPE in January - July 2013.

Kazanorgsintez , a wholly owned subsidiary of the TAIF group, is the largest Russian PE producer. The company produces more than 38% of Russian polyethylene. It also produces polyethylene pipes. In the first quarter of this year, the total production of polyethylene by Kazanorgsintez made more than 185,000 tonnes.

MRC

MOSCOW (MRC) -- While Repsol has not made a final decision on whether it will sell or not, the news suggests that its management now views the stake as having less strategic importance, following the sale of its liquefied natural gas businesses to Royal Dutch Shell in February, reported Oil&Gas.

Repsol declined to comment.

The possible offloading of Repsol’s Gas Natural stake comes as the network of cross shareholdings between Spain’s largest companies continues to unravel - driven primarily by the nationalisation of the country’s savings banks, which forced them to sell assets.

Repsol is under no financial pressure to sell its shares in Gas Natural, but its management has been considering whether freeing cash to invest more in upstream oil exploration - the focus of its growth plans - would be a more effective use of resources.

While the oil company has been addressing this issue in-house and has not yet signed a formal mandate with investment banks for a sale of its Gas Natural stake, people familiar with the process said it has been working with Citi and Deutsche Bank to assess its options, and the level of market interest in its stake.

Repsol has long considered the possibility of selling its stake in Gas Natural, which had often been criticised by analysts for lacking a clear industrial logic. But the expropriation of YPF delayed any decision about the holding, as Repsol’s management moved to stabilise the company through measures such as the sale of its LNG division earlier in the year.

As MRC wrote previously, in February 2013, Shell closed the purchase of a raft of LNG assets from Spain's Repsol with an announcement imminent. The Anglo-Dutch supermajor was finally set to snap up the LNG assets of Repsol in Peru and Trinidad & Tobago. Repsol was set to land around EUR 1.5 billion (USD1.96 billion) in cash from the deal, which also indicated Repsol LNG had gross debts of around EUR1 billion.

Repsol S.A. is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain. It is now the 15th largest petroleum refining company according to the Fortune Global 500 list.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has received the International Sustainability & Carbon Certification (ISCC) for its sunliquid demonstration plant in Straubing (Germany), which was opened in July 2012, according to the company's press release.

The certificate confirms that the cellulosic ethanol from agricultural residues produced with the sunliquid technology is compliant with the sustainability criteria set out in the European Renewable Energy Directive (RED).

"The certification of the Straubing plant is a further milestone in the commercialization of the sunliquid technology," says Hariolf Kottmann, CEO of Clariant. "The biofuel produced in Straubing fulfills and exceeds the sustainability criteria defined in the RED and can be counted toward the climate targets – this is an important prerequisite for establishing the process in the European market."

Alongside REDcert, ISCC is one of two certification procedures for the sustainability of biofuels that are recognized in Germany. ISCC focuses on cutting greenhouse gas emissions, sustainable land use, the protection of natural habitats and social sustainability.

The biotechnological sunliquid process converts agricultural residues such as wheat straw, corn stover and sugarcane bagasse sustainably and efficiently into cellulosic ethanol. Clariant plans to market the sunliquid process globally, with Europe as one of the core regions.

As MRC informed previously, Clariant has recently announced that it signed a long-term supply contract with OMV. From 2015, the Austrian oil and gas company will supply Clariant’s site in Gendorf (Germany) with ethylene. This agreement will enable Clariant to source most of its requirements for this important basic chemical in southern Bavaria.

Besides, the company is proceeding with a 50% expansion in capacity at its Azo pigments and pigment preparations plants in Roha, India, underlining the company’s commitment to provide customers in the region with high quality products specifically tailored to their needs.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) - August imports of linear low density polyethylene (LLDPE) to Russia decreased by 24% compared with the July level on the back of rising prices in Europe, according to MRC DataScope.

Russia's imports of LLDPE fell to 14,000 tonnes in August, from the July's level of 18,300 tonnes. Supplies of European LLDPE has tightened significantly because of the higher prices (in August, prices rose on average by EUR75/tonne) on the back of the rouble weakening against the euro.

Because of the serious price rise in European LLDPE, Russian producers of stretch films had to reduce the volume of imports in August. External supplies of polyethylene for the sector of stretch films last month decreased by 35%.

Import volumes of film LLDPE declined less noticeably. In general, imports of film LLDPE to Russia totalled 119,000 tonnes in January - August, up by 28% year on year.

Imports of LLDPE for large items by rotormoulding production was cut by 40% to 1,000 tonnes in August, largely due to the seasonal factors.
Imports of LLDPE for large items by rotormoulding production decreased by 24% to 5,600 tonnes in the eight months of the year.

August imports of LLDPE grew only in the sector of injection moulding and cable extrusion.

In general, Russia's LLDPE imports in the eight months of the year totalled more than 135,000 tonnes, up by 15% year on year.


MRC

MOSCOW (MRC) -- European producers have announced a need to increase September polypropylene (PP) prices for the CIS markets by EUR50-80/tonne following rising propylene prices, according to a ICIS-MRC Price report.

A major growth of oil prices in late August because of the conflict in the Middle East has led to a rise in propylene prices in Europe for September shipments by EUR60/tonne from August. European producers announced a necessity to raise PP prices by EUR50-80/tonne amid higher feedstock prices (propylene) and tight supply.

Negotiations on September European PP prices for the CIS markets began this week. European producers' offers for PP were heard in the range of EUR1,260 -1,320/tonne FCA for homopolymer of propylene (homopolymer PP). Prices for block copolymers of propylene were heard from EUR1,300/tonne FCA.

Many market participants are slow to contract European polypropylene. On the one hand, such a major price rise is hard enough to transfer to the cost of finished products. On the other hand, companies said they expect to achieve lower prices (some European producers reduced prices significantly in the second half of August to sell their stocks, prices for homopolymer PP reached EUR1,130/tonne FCA).
MRC