Malaysia to lose US12 bln investment due to Taiwan abandonment of Johor petrochem complex:

MOSCOW (MRC) -- The plan by Taiwan's Kuokuang Petrochemical Technology Co. to abandon the refining and petrochem complex at Johor in Malaysia could result in a losses to Malaysia, as per Plastemart.

Almost 40 bln ringgits (USD12.39 bln) in investment will be lost from the project, as reported by CNA.

As MRC wrote before, originally, Kuokuang was to set up an integrated refining and petrochemical complex in Pengerang in the Malaysian state of Johor, but the project was scrapped after they received information hinting at an unfriendly investment environment in Malaysia. Then, Malaysian Prime Minister Najib Razak announced in May 2012 that Malaysia would work with Kuokuang to launch a project in the country.

CPC is Kuokuang's largest stakeholder with 43%, with the rest held by other private Taiwanese companies. Titled KPTC Malaysia Integrated Refinery and Petrochemical Development, or KPTC-MIRPD, the project was to have included a 150,000 bpd refinery, with development slated to begin by next year and startup scheduled for early 2018. It was also expected to have the capacity to produce 800,000 m tpa of ethylene and 425,480 m tpa of propylene.
MRC

Xianglu Petrochemical to test run second PTA plant by end of year (5-12-2013)

MOSCOW (MRC) -- China’s Xianglu Petrochemicals Co. Ltd. has planned the test run of its second purified terephthalic acid (PTA) plant in the end of December 2013, reported Plastemart.

"Currently, the plant is under the final phase of construction and test run is planned by the end of next month," a company official told.

Located in the South Haicang Industrial Area of Xiamen City, the first PTA plant of Xianglu came on stream in October 2002. The plant is capable of producing 900,000 tpa of PTA, which is the world’s largest single-line PTA production capacity.

The construction of second PTA plant, with production capacity of 1.5 mln tpa, began in November 2006, and is now about to be completed.

As MRC informed previously, in May 2013, Xianglu Petrochemical also announced its plans to start a new purified terephthalic acid (PTA) plant located at Fujian province, China, by the end of the third quarter. The 4.5 mln tpa PTA plant is being set up at an estimated investment of USD400 mln.

Xianglu Petrochemicals (Xiamen) Co., Ltd. produces petrochemicals. It offers terephthalic acid products. The company was founded in 2003 and is based in Xiamen, China.
mrpclast.com

PVC imports to Ukraine rose by half in January-November 2013

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine increased by 50% in January-November 2013, according to MRC DataScope.


SPVC imports to Ukraine exceeded 130,000 tonnes over eleven months of the year, while in the same period of 2012 this figure was 87,000 tonnes.

Resumption of polyvinyl chloride (PVC) production at Karpatneftekhim (part of LUKOIL Group) has not led to lower imports. November SPVC imports totalled about 12,700 tonnes.

US producers remained the key suppliers of SPVC to Ukraine. The overall imports of North American PVC grew to 67,800 tonnes in January-November 2013 from 56,000 tonnes a year earlier. US producers account for more than 50% of total imports this year.

PVC supplies from Europe totalled slightly over 60,000 tonnes in eleven months of the year, while in the same period of 2012 this figure was 53,300 tonnes. The key suppliers of resin are producers from Hungary and Poland.

As reported earlier, Karpatneftekhim resumed its PVC production on 7 November after a long outage. The plant's PVC output exceeded 7,200 tonnes for less than a month. The plant's annual capacity is 300,000 tonnes.

MRC

Styrolution strengthens its position in styrenic specialties in Europe, the Middle East and Africa

MOSCOW (MRC) -- Styrolution has announced measures to better serve customers in Europe, the Middle East and Africa (EMEA), according to the company's press release.

New initiatives include the optimization of Styrolution's production network in Germany and the opening of a regional specialties logistics center. These measures enable Styrolution to offer customers greater flexibility, long-term and secure supply, and lot-to-lot consistency. They also extend Styrolution's regional reach and further strengthen its leading market position in the region's key focus industries, such as automotive, healthcare and diagnostics, and building and construction.

Thus, Styrolution is optimizing its specialty production platform in EMEA to better serve customers, provide secure sourcing alternatives and spur further growth in styrenic copolymer sales in EMEA. Styrolution will now offer Novodur grades from its production sites in Cologne, Ludwigshafen and Schwarzeide, while Luran S grades are now available from both Ludwigshafen and Schwarzheide.

Additionally, the company will expand compounding capacity in Schwarzheide to enable insourcing of specialty ABS and Novodur GF previously produced by external partners. The Schwarzheide site will become an increasingly important hub for Styrolution in EMEA with the production of compounded specialty styrenic products, such as Novodur GF, Terblend N and S, Zylar, and anti-static polystyrene.

Styrolution plans to complete the majority of this project by the end of 2013.

Styrolution has also opened a new, state-of-the art logistics center for its AMSAN and SAN specialties plants in Ludwigshafen, Germany.

Another step in fulfilling Styrolution's strategy is a launch the company's ‘Triple Shift' growth strategy aimed at strengthening its leading position in styrenics globally in August 2013. The strategy calls for an expansion of Styrolution's global footprint in emerging markets; focusing on higher growth industries; and expanding its market position in styrenic specialties and ABS standard.

As MRC informed previously, in line with this strategey the company announced its two initiatives in October 2013: a planned joint venture with Braskem to produce ABS standard and ABS specialties in South America, and new AMSAN specialty production at Styrolution's plant in Altamira, Mexico.

The Styrolution Group GmbH is a global provider of styrenics , headquartered in Frankfurt am Main. The company is a joint venture between BASF (50%) and INEOS (50%), were merged into the main styrene operations of the two partners. Its main focus is on the production of monomer, polystyrene, styrenic specialties, and ABS. The company offers styrene plastics for a variety of everyday products from different industries, such as automotive, electronics, construction, household, leisure, packaging, medicine and health.
MRC

Pechora LNG 'seeking state tie-up'

MOSCOW (MRC) -- Pechora LNG is reported to be pursuing a tie-up with a state partner in an apparent effort to revive the stalled Russian project following a Kremlin move to liberalise liquefied natural gas exports, said Upstreamonline.

The venture, owned by Moscow-based Alltech, is currently in talks with state-controlled Rosneft and Gazprom, its chief executive Maxim Barsky was quoted as saying by Russian daily Kommersant.

Recent legislative amendments passed by the Russian parliament will allow Rosneft and state-owned Zarubezhneft, as well as privately-owned Novatek, to carry out LNG exports from 1 January to break the current export monopoly of Gazprom, though the latter will still have exclusive control of pipeline gas supplies.

The law allows companies to ship LNG if they hold licences to build an LNG plant or send gas to a liquefaction plant. State-controlled companies may also ship gas by tanker if they produce LNG from offshore fields or from production sharing agreements.

Pechora LNG was expected to produce 2.6 million tonnes per year of LNG from two fields in Timan-Pechora province in the autonomous Nenets region of northern Russia. While the project is relatively cheap and simple to develop, it has been on hold for years as its proponents have been unable to gain government clearance for exports and it still remains outside the revised legislative framework.

A source close to Rosneft told Reuters the company is not interested in Pechora LNG as the project is not presently allowed to ship LNG under the law. Russian Energy Minister Alexander Novak said recently that Moscow might open up LNG exports further in the future but would base any decision on market conditions.

Industry analysts have earlier suggested Gazprom may be interested in acquiring Pechora LNG as it could potentially serve gas fields being developed on the Yamal peninsula by building a pipeline extension to the project from the Bovanenkovo-Ukhta trunkline. Neither Gazprom nor Rosneft would comment to Reuters on the reported discussions.

As MRC wrote before, Russian oil giant Rosneft is to pump nearly USD3 billion into developing a trio of oilfields in East Siberia. The Moscow-based behemoth is to spend 92 billion rubles (USD2.79 billion) on the three fields by 2015. The field developments are set to feed into the East Siberia-Pacific Ocean (ESPO) pipeline feeding Asian markets.
MRC