October HDPE output grew by 9% in Russia

MOSCOW (MRC) -- The overall October output of high-density polyethylene (HDPE) in Russia rose by 9% from September. Stavrolen and Kazanorgsintez accounted for an increase in production, according MRC ScanPlast.

The HDPE production in Russia went up to 72,300 tonnes in October from 66,300 tonnes in September. Stavrolen and Kazanorgsintez increased their output last month, whereas the other two Russian producers - Nizhnekamskneftekhim and Gazprom neftekhim Salavat, on the contrary, decreased it.

Kazanorgsintez raised its output up to 30,700 tonnes in October after the September's scheduled outage for maintenance. The plant's overall HDPE production grew to 377,000 tonnes for the ten months of 2013 from 359,100 tonnes a year earlier.

Stavrolen increased its HDPE output up to 24,700 tonnes last month from 23,600 tonnes in the previous month. The plant's HDPE production totalled 253,200 tonnes in January-October, 2013.

Nizhnekamskneftekhim switched to the production of linear low density polyethylene (LLDPE) in mid-October, resulting in a reduction of HDPE production to 9,200 tonnes. The plant's HDPE output dropped to 146,700 tonnes for the ten months of 2013 from 155,900 tonnes in the same period last year.

Gazprom neftekhim Salavat reduced its HDPE production last month by 8% from September to 7,700 tonnes. The plant's HDPE output grew to 59,200 tonnes in January-October this year from 34,800 tonnes a year earlier.

The overall HDPE output at Russian plants increased to 836,200 tonnes in January-October of 2013 from 572,200 tonbes in the same period of 2012.

MRC

MOSCOW (MRC) -- An ExxonMobil gas-processing plant in south Texas is still shut down after a fire broke out earlier this week, the US supermajor confirmed to Upstreamonline.

The fire started at around 1 am Monday at the King Ranch Gas Plant near Kingsville, Texas, roughly 40 miles south-west of Corpus Christi. No injuries were reported.

The facility processes about 500 million cubic feet per day of natural gas and associated liquids from the US supermajor and other area producers.

The remaining fire is being allowed to burn itself out, according to ExxonMobil, which did not specify an estimated date or time for a restart.

"The cause of the incident will be investigated," a spokesman told Upstream in a statement. "We apologise for any inconvenience."

The response included efforts by the Kleberg County Fire Department, Kingsville Naval Air Station, the Refinery Terminal Fire Company and King Ranch Security.

As MRC wrote before, Exxon Mobil Corp. (XOM) reported flaring at its refinery in Joliet, Ill., on 26 October 2013. The 238,600 barrel-a-day refinery released nitrogen dioxide, nitrogen oxide and hydrogen sulfide into the air after an "over pressuring" incident in an undisclosed unit. The release lasted about 30 minutes, and the unit was shut down and the valves were reset, according to the filing.
MRC

MOSCOW (MRC) -- Small quantities of degradable plastic films as low as 2% can cause "significant, detrimental impacts" to the quality of plastics recyclates, according to a new peer-reviewed industry study, said Plasticsnews.

The findings of the study, commissioned by European Plastics Converters (EuPC), the Brussels-based trade body, are likely to reignite the debate surrounding the presence of bio-degradable plastics in the recycling stream.
EuPC said it had commissioned independent industrial tests which had been conducted by Wolfgang Stadlbauer of the Transfer Centre for Polymer Technology in Austria.

Tests focused on four different mixtures of degradable plastic bags and one virgin LDPE recycling material and were conducted during a six month period, during which more than 9.45 tonnes of plastic carrier bags were processed and more than 3,700 measurements were taken, EuPc said.

"Although all the materials could be processed, the results show that even in quantities as low as 2%, degradable plastic films cause significant, detrimental impacts to the quality of plastic recyclates. These impacts are not only detrimental in terms of mechanical properties of the recycled material, but also involve visual impacts on the newly produced film," EuPc said in a statement.

The Brussels organization has subsequently called on legislators and waste management authorities across the European Union to push for increased separation and collection of degradable plastics.

Alexander Dangis, EuPc's managing director, said: "Over the past years, there has been considerable concern in Europe surrounding the effects of bio-degradable plastics on recycling streams. "These test results now prove that separate collection of degradable plastic products is needed in Europe if we want to further develop recycling streams and work towards a circular economy."

As MRC wrote before, Braskem, one of the leading thermoplastic resin producers in the Americas and among the world largest biopolymer producers, announces the expansion of its portfolio of renewable products with the launch of its new line of green low-density polyethylene (LDPE), with this new product family complementing its already well known Green Plastics. Annual production of the new resin will amount to approximately 30 kton and the product will be made available in the market starting in January 2014.
MRC

MOSCOW (MRC) -- Gazprom Neft and Novatek are reported to be looking to boost their joint controlling stake in SeverEnergia in an apparent move to block any Rosneft bid to acquire a further interest in the coveted West Siberian gas producer, said Upstreamonline.

It follows a report last week that Italian giant Eni may now be looking to sell its 60% stake in the Arctic Russia joint venture, which holds a 49% interest in SeverEnergia, after compatriot utility Enel’s 40% share was acquired by Russian state-owned Rosneft for USD1.8 billion.

Rosneft now has a 19.6% stake in SeverEnergia through the deal with Enel, which reportedly also gives it the pre-emptive right to buy out Eni's holdings and thereby potentially boost its interest to 49%.

The remaining 51% in the gas producer is jointly held by Gazprom Neft, a subsidiary of Russian gas giant Gazprom, and Novatek, and the pair are now also said to be interested in buying Eni’s stake stake in Arctic Russia if it comes onto the market.

"The group, together with Novatek, is considering a possible increase of its stake in SeverEnergia through the purchase of an interest in SeverEnergia held directly or indirectly by third parties," Gazprom Neft said in a prospectus for a Eurobond offering cited by Reuters on Tuesday.

Competition is increasing for Russia’s gas reserves as the Kremlin prepares to open up liquefied natural gas exports to other players than Gazprom, which currently has an export monopoly, from early next year. SeverEnergia is expected to produce 36 billion cubic metres of gas and liquids by 2017.

Rosneft, which is Russia’s leading oil producer, aims to raise its gas output to 100 billion cubic metres by 2020 with plans to build a liquefied natural gas plant jointly with ExxonMobil on Sakhalin island in Russia's far east.

The SeverEnergia assets are believed to be of great importance to Novatek and would fit with its effort to develop the Yamal LNG export project, due on stream in 2017, together with France's Total and China National Petroleum Corporation (CNPC).

The Enel stake sale is said to have increased tensions between Novatek investor Gennady Timchenko, who was opposed to the deal, and Rosneft chief executive Igor Sechin.
MRC

MOSCOW (MRC) -- Keyuan Petrochemicals Inc. an independent manufacturer and supplier of various petrochemical products in China announced the Company's financial results for the quarter ended September 30th, 2013, said Ecfchina.

Sales for the three months ended September 30, 2013 were approximately USD150.3 million, compared to USD164.3 million for the three months ended September 30, 2012, a decrease of USD14 million, or 8.5%. The decrease was mainly due to lower sales quantities as a result of the 40-day production interruption in the quarter ended June 30, 2013.

Normally it takes a short period of time for the facilities and equipment to reach to their optimum conditions after routine maintenance. The Company sold 129,066 tons of petrochemical and rubber products at an average price of USd1,094 and USD1,888 per metric ton, respectively, in the three months ended September 30, 2013, compared to 155,249 metric tons of petrochemical products and rubber products at an average price of USD982 and USD2,423 per metric ton, respectively, in the three months ended September 30, 2012.

The average sales price for petrochemical products for the three months ended September 30, 2013 increased by approximately 11% compared to the same period of 2012. Petrochemical segment revenues for three months ended September 30, 2013 account for 86% of the total revenue.

Although the average selling price during the three months ended September 30, 2013 was higher than that at the same period of 2012, the overall quantity of sold products decreased by 15%, which caused total sales for the three months ended September 30, 2013 to decline.

Sales for the nine months ended September 30, 2013 were approximately USD453.8 million, compared to USD532.1 million for the nine months ended September 30, 2012, a decrease of USD78 million, or 14.7%.

Overall cost of sales was approximately USD140.0 million for the three months ended September 30, 2013, or 93% of sales, as compared to the cost of approximately USD160.5 million, or 98% of sales for the three months ended September 30, 2012.

The decrease in the cost of sales was mainly due to the lower sales quantities due to the routine inspection and maintenance of the facilities in the quarter ended June 30, 2013 and the higher average selling price of USD1,151 per metric ton for the three months ended September 30, 2013, as compared to USD1,059 per ton for the three months ended September 30, 2012.

Overall cost of sales was approximately USd432.4 million for the nine months ended September 30, 2013, or 95% of sales, as compared to approximately USD512.3 million, or 96% of sales for the nine months ended September, 30, 2012.

As MRC wrote before, Ningbo-based Keyuan Petrochemicals has announced plans to build a new S-SBR production ­facility and expand its existing ethylene-styrene copolymer plant. Keyuan, citing increased demand for S-SBR in the tyre market, said it is building a 150,000 t/y facility that will utilise its own production technology.

Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. The company is located in Qingshi Industrial Park, Ningbo, China and has annual petrochemical manufacturing design capacity of 720,000 metric tons for a variety of petrochemical products, including BTX aromatics, propylene, styrene, MTBE and other chemicals.
MRC