PTT to ink JV with Pertamina for a new petrochemical complex

MOSCOW (MRC) -- Thailand’s PTT Global Chemical (PTTGC) will sign a joint-venture agreement with Indonesian state-owned energy company Pertamina to set up a petrochemical complex with an investment of around USd4-5 billion (Bt127 billion to Bt158 billion), as per Plastemart.

Both companies will have a 50:50 stake in this downstream-to-upstream project.

They will also sign a deal to market products from the project jointly. After the deal is signed, they will seek a potential third partner for the project, and both will discuss share dilution accordingly.

As MRC wrote earlier, this summer, Pertamina signed an agreement to purchase petrochemical products from PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Petronas Chemicals agreed to sell its Vietnam polyvinyl chloride (PVC) assets to Asahi Glass and Mitsubishi as part of ongoing efforts to refocus its business on higher value products, said Tcetoday.

The sale of its 93% interest in Phu My Plastics and Chemicals, which has a production capacity of 100,000 t/y of PVC, is expected to be completed in Q2 next year. The value of the deal has not been disclosed.

Petronas announced last year that it would close its vinyl business, and has already ceased operations at its vinyl chloride monomer (VCM) and PVC plants in Kertih, Malaysia.

"Our decision allows us to focus our resources on higher value products and our growth projects in the pipeline," Wan Zulkiflee Wan Ariffin, chairman of Petronas Chemicals said when the strategy was first announced.

The vinyl business buys its ethylene dichloride feedstock from the open market, rather than sourcing it from within the company’s existing chemicals production value chain. This lack of integration means the margins are highly susceptible to price changes. Furthermore, it will save the relatively high costs of operating and maintaining its VCM plants, the company says.

The closure will also allow Petronas to divert the ethylene committed to its vinyl business to other higher margin products. When it first announced the new strategy, Petronas said it expected staff in Vietnam will continue to be employed under the management of the new owners.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- All of Mexican oil and petrochemicals ports were closed to shipping early Wednesday as a severe cold front swept through the Gulf of Mexico, as per Plastemart.

Winds of up to 70 kph and 10 ft waves were reported, closing the leading crude-loading ports on the Gulf Coast: Dos Bocas, Cayo Arcas and Pajaritos, which also handles petrochemicals. Also closed on the Gulf was the petrochemicals port of Altamira.

The only crude-loading port on the Pacific Coast, Salina Cruz, was closed as the mass of cold air from the Gulf Coast swept through the isthmus of Tehuantepec.

As MRC wrote before, Styrolution announced plans to begin construction on a production line for alpha methyl styrene acrylonitrile (AMSAN) at its site in Altamira, Mexico. Styrolution uses AMSAN in its Luran S acrylonitrile styrene acrylate (ASA) and high-heat Novodur acrylonitrile butadiene styrene (ABS) products. The new production line will enable Styrolution to expand its product offering and increase supply reliability in the region. It will also position the company for further growth throughout the Americas as well as in key industries, such as automotive and construction. Production is set to start in the second quarter of 2014.

MRC

MOSCOW (MRC) -- Royal Dutch Shell and the Iraqi government are nearing a deal to build a USD11 bln petrochemical facility in southern Iraq, said Plastemart.

The intention to move forward with a petrochemical plant follows a meeting between Iraqi Prime Minister Nouri al-Maliki and Shell Chief Executive Peter Voser in Baghdad. The government said in a statement following that meeting that it was about to sign a "heads of agreement," committing both sides to early planning for the project.

A Shell spokesman said that Shell had signed a memorandum of understanding with Iraq in April 2012 to conduct a detailed feasibility study of a potential petrochemicals complex. "We continue to work towards signing a Heads of Agreement with the Government of Iraq in due course," the spokesman said in a statement. The project is being called Nebras, Arabic for "beacon of light." The project envisions an ethane-cracking unit that would produce ethylene, a compound used in making plastic.

Shell already has a big presence in Iraq, where it is developing the huge Majnoon oil field, near Basra. It, and a number of other global energy companies, won the rights to develop several fields to help the country jump start its oil industry, laid low by looting and sabotage. The industry had also suffered years of neglect and sanctions under Saddam Hussein. Shell also signed a USD17.2 bln deal last year to collect natural gas from Iraq's southern oil field production. The gas has traditionally been flared, or burned off, and Iraq has long had ambitions to collect and use the gas to meet domestic energy demand.

As MRC informed previously, Ukraine took its first major step away from dependency on Russian gas imports when it signed a USD10 billion shale gas deal with Shell in early 2013.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Arkema, the world leader in specialty polyamides, has introduced innovative bio-based polyamide grades for highly demanding markets, reported the company on its site.

Continuing the successful story of Rilsan Clear G830 Rnew, the first bio-based transparent polyamide, Arkema presents new grades - Rilsan Clear G850 Rnew and Rilsan Clear G120 Rnew - for specific customer needs.

Rilsan Clear G850 Rnew has been especially designed for injection molding application (i.e.: optical and electronic), to give maximum freedom to designers. It has higher temperature resistance compared with G830 Rnew, which allows broader decoration techniques use. At the same time, its high fluidity offers perfect solution for thin-wall injected parts and is therefore ideally suitable for eyeglass frames.

Rilsan Clear G120 Rnew, besides the optical and processing properties of the range, has an outstanding chemical resistance, especially with alcohols. Thus, this grade can adapt to thin walled geometries and applications in difficult industrial environments.

All Rilsan Clear grades are BPA free, allowing for a huge number of applications where health is a concern. As Rilsan Clear Rnew grades are partially based on renewable resources, they contribute to reduce CO2 emissions.

As MRC wrote previously, Arkema presented its latest significant innovations in its fluoropolymers, high-performance polyamides, polyolefins, organic peroxides, and plastic additives ranges at K2013. Arkema’s R&D in specialty polymers make the company one of most innovative chemicals manufacturers in the world. Developing lightweight materials to replace metal and reduce oil consumption in transport, producing technical polymers from renewable raw materials, or improving the efficiency of key components to contribute to the development of new energies, are three of R&D Arkema’s five priority areas.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema and Addiplast, a French company specializing in the manufacture of specialty compounds, have recently signed an agreement whereby Arkema supplies its polyamides 10, 11 and 12 to Addiplast which will process them into technical compounds and materials.
MRC