The Gulf petrochemicals output reached USD97.3 bln in 2012, rising USD3.2 bln year on year

MOSCOW (MRC) -- The Gulf’s petrochemicals output reached USD97.3 bln in 2012, a USD3.2 bln increase on the previous year, reported Plastemart with reference to the latest industry report by the Gulf Petrochemicals & Chemicals Association (GPCA), the region’s longest standing trade association.

GCC petrochemicals output has increased by 19% over the last five years. This is the highest growth posted by any petrochemicals producing region in the world.

Last year, the Gulf’s petrochemicals industry earned USUSD52.7 bln in export revenues.

The Gulf Cooperation Council (GCC) was formed in 1981 to create economic, scientific and business cooperation among its oil-exporting members. These Middle East countries share the common faith of Islam, an Arabian culture, and an economic interest separate from OPEC. On a per capita basis, they are among the richest countries in the world. The Gulf Cooperatoin Council headquarters is in Riyadh, the capital of Saudi Arabia, its largest member with a capacity of 86.4 million tons. The Kingdom contributes more than half of the GCC’s total petrochemical production. Together, they supply one third of US oil and own up to USD225 billion of US debt. These countries are seeking to diversify their rapidly growing economies away from oil.
MRC

ExxonMobil pays USD8m for New York clean-up

MOSCOW (MRC) -- US supermajor ExxonMobil has agreed to pay USD8.05 million for clean-up related to decades of contamination at a site in northern New York, said Upstreamonline.

ExxonMobil owned and operated a major oil-storage facility in the town of Ogdensburg on a peninsula called Lighthouse Point for nearly a century. The site on the St Lawrence and Oswegatchie rivers received petroleum deliveries by barge from the late 1800s until 1984, according to state officials.

In 2001, petroleum contamination was discovered at the site following an environmental assessment. A subsequent investigation found "widespread petroleum contamination" in and around the terminal and underground pipelines connecting to the Oswegatchie River, New York attorney general Eric Schneiderman said in a statement.

The state used monies from its oil spill fund to clean-up the site between 2006 and 2007. ExxonMobil will reimburse the state for the clean-up costs under the terms of the agreement, Schneiderman said.

"It’s only right that corporations who jeopardise the sanctity of New York’s natural resources should have to pay for the damage they caused," Schneiderman said.

The settlement was reached in state Supreme Court on 14 November.

ExxonMobil said it was "pleased to have reached a settlement with the state of New York".

As MRC reported earlier, last year, Exxon Mobil announced plans to increase its petrochemical manufacturing output through the expansion of its Baton Rouge and Port Allen plants in Louisiana. A company official said that the expansion project will begin by the end of this year and is expected to be completed by 2014. The USD215 mln expansion project will take the company's capital expenditures in Louisiana to over USD1 billion in three years.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2% of the world's energy.

MRC

PS production in Russia increased by 20% in the first ten months of the year

MOSCOW (MRC) - Production of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) in Russia increased by 20% to 253,400 tonnes in the first ten months of the year, according to MRC ScanPlast.

Russian PS production over the reported period increased on the back of the rise in the output of the largest producers in the market - Nizhnekamsneftekhim.
Because of the expansion of its capacities Nizhnekamskneftekhim produced about 200,000 tonnes of GPPS and HIPS in the first ten months of the year, up by 25% year on year. The share of Nizhnekamskneftekhim's production was 79% of the total PS production in Russia.

PS production at Gazprom neftekhim Salavat and PGProf was also stable, with production grown by 7% and 3% respectively.

Russia's PS production in the first ten months of the year reached the maximum in the history of the production of polystyrene in Russia. MRC analysts expect total PS production in 2013 will be 300,000 tonnes. Production of GPPS and HIPS was 258,000 tonnes in 2012.
MRC

Prices of North American PVC for CIS markets continue to grow

MOSCOW (MRC) -- Prices for North American polyvinyl chloride (PVC) continued to rise amid strong demand. Price offers for December shipments to the CIS countries exceeded USD1,000/tonne this week, according to ICIS-MRC Price report.

November- December is traditionally a period of an active growth of North American PVC prices. This year was no exception. Export US prices have been growing dynamically on the back of strong demand from Asian markets.

Prices for the CIS markets have already exceeded USD1,000/tonne. At the same time, some suppliers have already begun taking orders for February PVC shipments from the US. Thus, price offers for PVC shipments from the US in the second half of December started from USD1,020/tonne CFR St Petersburg and CIF Odessa this week. Some market participants said they had already managed to come to an agreement on December prices in October at USD950-980/tonne CFR St Petersburg.

There were also offers for January PVC shipments. They started from USD1,040/tonne, an average increase of USD20/tonne from December. Some suppliers (Shintech) have already begun receiving orders for February PVC shipments.
MRC

Imports of polyolefins to Belarus dropped by 2% in January-October 2013

MOSCOW (MRC) -- Imports of polyethylene (PE) and polypropylene (PP) into Belarus decreased by 2% in the first nine months of 2013 to around 141,100 tonnes. The low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) markets accounted for the greatest drop in imports, reported MRC analysts.

PE and PP imports to Belarus fell to 81,000 tonnes and 60,200 tonnes, respectively, in January-September 2013 from 82,000 tonnes and 62,000 tonnes in the same period a year earlier. Demand for high density polyethylene (HDPE) grew significantly, whereas demand for LDPE and LLDPE fell by almost a quarter.

The structure of polyolefins imports looks the following way.

HDPE imports into Belarus increased to 47,700 tonnes in the first nine months of 2013 from 38,600 tonnes a year earlier. The main HDPE suppliers are Russian companies with their supply volume of about 25,000 tonnes over the said period. Sabic, a PE producer from Saudi Arabia, occupies the second place, with its supply volume of 9,200 tonnes.

LDPE and LLDPE imports in January-September this year fell by 23% year on year and totalled 33,300 tonnes. Sabic's PE accounted for main supplies (about 18,300 tonnes).

Demand for polypropylene dropped by 3% to 60,200 tonnes over the said period. Supplies of homopolymer of propylene (homopolymer PP) decreased to 43,900 tonnes from 46,100 tonnes a year earlier. The share of Russian producers accounted for about 53% of the total homopolymer PP shipments.

Imports of copolymers of propylene, on the contrary, rose to 16,300 tonnes this year from 15,800 tonnes in 2012. Key suppliers of copolymers of propylene to Belarus are German producers with their share of 74% of total imports.
MRC