SK innovation inks agreement with LanzaTech to develop new technology for butadiene production

MOSCOW (MRC) -- SK innovation, one of the world's leading energy and petrochemical companies, and LanzaTech, a producer of low-carbon fuels and chemicals from waste gases, have announced an agreement to develop a new process technology for the production of 1,3 butadiene, a platform chemical used in many high growth industries globally, according to Plastemart.

The collaboration will accelerate the commercialization of an alternative route to butadiene, a chemical increasing in scarcity because of the shale gas boom in the United States.

An estimated USD20 billion market, butadiene is a building block in a huge range of materials including synthetic rubber used in tires, belts, hoses, seals, carpet backing and medical latex; molded plastics used in consumer appliances such as vacuum cleaners, kitchen appliances and electronic gadgets; nylon 6,6 used in textiles and engineering resins used in automotive engine components; and as a chemical intermediate for adhesives and speciality chemicals.

The move to shale gas in the United States is driving butadiene scarcity and businesses are looking for alternative sources. At the same time, rising incomes in emerging markets are increasing demand for automotive purchases, tires, engine components and other consumer goods.

The development work will be carried out at SK innovation's state of the art research centre in Dae Jon, Korea, which focuses on research and development of new technologies in energy, petrochemical, and materials industries.
It works on a wide range of research areas such as eco-friendly, premium petroleum products, asphalts, lubricants, polymers, green energy and advanced batteries.

As MRC wrote previously, Korea's top refiner SK Innovation Co. could benefit from Sinopec's decision to scrap a petrochemical plant in eastern China as it stands to enjoy higher margins. SK Innovation, along with Japan"s JX Nippon Oil & Energy Corp., will likely be the biggest beneficiaries of the recently cancelled plan to build a new a paraxylene plant in Ningbo. SK Innovation is estimated to have an annual production capacity of 750,000 metric tons of paraxylene under its petrochemical wing SK Global Chemical Co., being Asia's ninth-largest paraxylene producer. It is likely to jump to the fifth when a 50-50 joint plant with JX Nippon is completed in 2014. The new plant is expected to raise SK Global Chemical"s annual production of paraxylene to 1.5 million metric tons.
MRC

MOSCOW (MRC) -- Russian producers of polyvinyl chloride (PVC) have had to reduce November prices for the domestic market under the pressure of a seasonal factor and lower prices in foreign markets. Contracts for PVC were concluded by Rb500-1,200/tonne lower from October, according to ICIS-MRC Price report.

Negotiations on Russian PVC to be shipped in November began in the second half of October. Many local converters said they managed to achieve a reduction in contract prices of Rb500-1,200/tonne from October, citing seasonal decline in demand for finished products and lower PVC prices in the United States and China.

Contracts for November shipments of Russian PVC were concluded in the range of Rb44,800-46,500/tonne CPT Moscow, including VAT, for PVC K64/67. Some converters were slow to contract resin, hoping to achieve more serious price reductions.

Supply of PVC from Russian producers was sufficient, despite a major drop in imports and a series of scheduled outages for maintenance (August-October) at all Russian plants.

A shortage of material from Russian producers was still felt in the PVC K70 market. Contract prices remained quite high and were in the range of Rb46,500-48,500/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) -- Lanxess Keltan Elastomers (KEL) business unit will implement a price increase for all of its Keltan EPDM grades of up to USD150/tonne, according to the company's press release.

The price rise, which only affects the Asian region, is due to rising costs, especially for raw materials.

EPDM is used above all in the automotive industry as door sealants, hoses, belts or anti-vibration parts. The product is also used in the plastics modification, cable and wire, construction and oil additives industries. Its properties include very low density, good resistance to heat, oxidation, chemicals and weathering as well as good electrical insulation properties.

The Keltan Elastomers business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR 5.18 billion in fiscal 2012.

As MRC wrote before, in July 2013, German specialty chemicals company Lanxess celebrated the opening of its first production facility in Russia. In the new plant at the Lipetsk site, Lanxess subsidiary Rhein Chemie manufactures polymer-bound rubber additives for the markets in Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tire industries. A production facility for the bladders used in tire production is to be added in 2016. The overall investment volume in euros amounts to a seven-digit figure and 40 new jobs will be created at the new plant in the medium term.

Lanxess is a leading specialty chemicals company with sales of EUR 9.1 billion in 2012. The company is currently represented at 50 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. The Butyl Rubber business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR 5.2 billion in 2012.
MRC

MOSCOW (MRC) -- US major ConocoPhillips has ramped up net profit by 38% in the third quarter despite flat production, with a pair of asset sales and higher prices delivering increased earnings, said Upstreamonline.

The Houston-based explorer earned USD2.5 billion net between 1 June and 30 September, compared to USD1.8 billion during the same period in 2012.

During the quarter the explorer completed the USD720 million sale of the Clyden oil sands leasehold in Canada and the USD600 million sale of the Phoenix Park midstream asset in Trinidad and Tobago.

When these dispositions are excluded, ConocoPhillips’ net profit rose to USD1.8 billion from USD1.7 billion in the third quarter of 2012.

While output was flat for the quarter, chief executive Ryan Lance said the company had lined up new projects such as Canada's Christina Lake Phase E and Norway's Ekofisk South that would ultimately deliver a 3% to 5% production rise.

"We successfully completed our major turnaround activity and have brought two major projects on line, with another three major projects expected to start production in the coming months," he said.

Production from continuing operations was unchanged from a year ago at 1.47 million barrels of oil equivalent, as new output was offset by field decline and the ongoing closure at Libya’s El Sider terminal.

Boosted average realised prices of USD69.68 per boe versus USD65.62 a year ago sent earnings upward despite the flat production, aided by a greater proportion of production in liquids and in higher-margin output areas.

On a nine-month basis, profits from continuing operations rose to USD5.3 billion from USD5 billion in the first nine months of 2012 with near-level production in both periods.

The explorer has chopped 50,000 boe per day off its expected output for the fourth quarter because of Libya, but it still expects annual output to range between 1.5 and 1.51 million boe per day.

The company's next quarterly results will be dominated by its USD8.4 billion stake sale at Kazakh giant Kashagan, which has now completed, ConocoPhillips announced.

ConocoPhillips Company is an American multinational energy corporation with its headquarters located in the Energy Corridor district of Houston, Texas in the United States. It is the world's largest independent pure-play exploration & production company and is also one of the Fortune 500 companies. ConocoPhillips was created through the merger of Conoco Inc. and the Phillips Petroleum Company on August 30, 2002 and was the fifth largest integrated oil company until spinning off its downstream assets to Phillips 66.
MRC

MOSCOW (MRC) -- Indorama Ventures has notified the Stock Exchange of Thailand of the establishment of four new wholly-owned subsidiaries, said Apic-online.

The new subsidiaries are Indorama Ventures USA Holdings LP, Indorama Ventures AlphaPet Holdings Inc., Indorama Ventures Europe BV and Indorama Ventures Packaging (Philippines) Corp.

Indorama noted that the three holding companies have been created as part of a restructuring.

As MRC wrote before, Indorama Ventures (IVL) completed the acquisition for the PET resin assets of PT. Polypet Karyapersada based in Cilegon, Indonesia, at a site with a capacity of 100,800 tonnes per annum.

Indorama Ventures Public Company Limited is a Thailand-based holding company. It invests in companies in domestic and international markets across four business areas: companies engaged in the manufacture and sale of polyethylene terephthalate (PET), which is used for beverage containers and food packaging; companies engaged in the manufacture and sale of polyester fiber and yarn, which are used for textile and industrial applications; companies that produce and trade purified terephthalic acid (PTA), which is a white powder used in the production of polyester products, and companies that produce and trade wool. As of December 31, 2010, the Company had 23 factories worldwide, with a total production capacity of 1,648,000 tons of PET per year, as well as 280,800 tons of polyester fiber and yarn per year, 1,590,000 tons of PTA per year, and 5,900 tons of wool per year.
MRC