Global petrochemicals market is expected to grow at CAGR of 6.7% to 2018

MOSCOW (MRC) -- The global petrochemicals market was valued at USD472.06 bln in 2011 and is expected to reach USD791.05 billion by 2018, growing at a CAGR of 6.7% from 2012 to 2018, as per Plastemart with reference to Transparency Market Research.

In terms of volume, the global petrochemicals consumption was 436.86 mln tons in 2011 and is expected to reach 627.51 mln tons by 2018, growing at a CAGR of 5.4% from 2012 to 2018.

Growing consumption from major end use industries including construction, packaging, transportation, textile, plastics, healthcare and so on coupled with favorable operating conditions mainly in the Middle East and Asia Pacific is expected to drive the global market for petrochemicals over the next five years.

Ethylene dominated the petrochemical market and accounted for over 28% of the total consumption in 2011. Growing demand for polyethylene, a major derivative of ethylene, mainly from packaging industry is expected to boost the global market for ethylene over the forecast period. However, widening supply-demand gap due to capacity addition in the Middle East and Asia Pacific is expected to put pressure on ethylene prices, globally.

China was the leading consumer of petrochemicals and accounted for over 25% of the global consumption in 2011. Along with being the largest market, China is also expected to be fastest growing market, at a CAGR of 6.7% from 2012 to 2018, owing its significant downstream processing capacity. Asia Pacific including China accounted for over 45% of the total demand in 2011. North American market for petrochemicals is expected to be driven by rapid development of shale gas in the US.

The global market for petrochemicals is highly fragmented in nature. Top ten companies accounted for just over 49% of the total petrochemicals market in 2011. BASF, Sinopec and Exxon Mobil were the largest petrochemical manufacturers and together accounted for nearly 20% of the total market share in 2011. Some of the other players operating in the global petrochemical market include Chevron Phillips, Dow Chemical, Company, Ineos, LyondellBasell, National Petrochemical Co., PetroChina, SABIC, Shell Chemicals and Total.
MRC

MOSCOW (MRC) -- Egypt intends to pay out USD1.5 billion of the USD6.3 billion it owes to oil firms, furthering a government plan to boost the nation's economy after three years of political chaos, according to Hydrocarbonprocessing.

The government approved the USD1.5 billion payment on 4 December. It intends to repay another USD3 billion in monthly payouts through the end of 2017, in an effort to encourage energy-sector investment, especially by foreign companies.

Of the USD1.5 billion initial payment, USD1.2 billion will be paid in US dollars, and the remaining USD300 million will be paid in Egyptian pounds.

According to financial statements by BP, BG Group, Edison SpA, TransGlobe Energy, Eni and Dana Gas, Egypt owed the companies more than USD5.2 billion at the end of 2012.

The government has delayed payments to oil firms since at least 2011, due to political upheaval caused by the overthrow of President Hosni Mubarak in that year. The government turmoil has crippled the economy, frightened investors and hurt tax revenues.

As MRC reported earlier, SK Engineering and Construction Co., one of South Korea top builders, has recently signed a multi-billion dollar deal to set up a large-scale petrochemical plant in Egypt. The builder secured the USD3.6 billion contract for the Tahrir Petrochemical Project as part of a consortium with its German partner Linde. The plant aims to produce 1.35 million tons of ethylene and polyethylene per year.
MRC

MOSCOW (MRC) -- The Board of Directors of Eastman Chemical Co, a global specialty chemical company, has increased the quarterly cash dividend by 17% to USD0.35 per share on the company’s common stock, according to the company's statement.

The dividend is payable January 2, 2014, to stockholders of record as of December 16, 2013.

"With this increase, the dividend has been raised for three consecutive years, which demonstrates the Board’s confidence in our ability to generate continued earnings growth and strong cash flows," said Curt Espeland, senior vice president and chief financial officer. "We remain committed to maintaining a strong financial position as we execute our strategy to deliver consistent, superior value."

As MRC informed earlier, Eastman Chemical is expanding capacity of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, USA. The expansion at the site will increase the overall capacity of Eastman 168 by approximately 15% and is expected to be operational by mid-2014.

In October 2013, Eastman Chemical announced the expansion of its non-phthalate plasticizer portfolio with the addition of Eastman Effusion plasticizer. In flooring, Eastman Effusion is the ideal plasticizer for use in resilient sheet, luxury vinyl tile, vinyl composite tile, and PVC-backed carpet.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

MOSCOW (MRC) -- Evonik Industries and LanzaTech have signed a three year research cooperation agreement which will see Evonik combining its existing biotechnology platforms with LanzaTech’s synthetic biology and gas fermentation expertise for the development of a route to bio-processed precursors for specialty plastics from waste derived synthesis gas, reported Evonik on its site.

In this route, microorganisms placed in fermenters are used to turn synthesis gas into chemical products. Synthesis gases comprise mainly of either carbon monoxide or carbon dioxide and hydrogen and can come from a variety of gasified biomass waste streams including forestry and agricultural residues and gasified municipal solid waste.

"Industrial biotechnology is one of the core competences of Evonik. It enables new approaches to specialty chemicals and processes," explains Prof. Stefan Buchholz, the head of Creavis. Creavis, Evonik’s strategic innovation arm, is committed to developing alternative bio-based pathways for the production of such specialty chemicals, to not only reduce dependence on fossil fuels, but also reduce the greenhouse gas emissions associated with their manufacture. "The use of renewables and specific waste streams is one of the main focuses of our research and development work, and LanzaTech offers an additional interesting approach," says Buchholz.

As MRC reported before, in early 2013, Evonik Industries began operating a pilot plant for amino lauric acid (ALS) in Slovenska Lupca, Slovakia. The effort represents Evonik’s next step forward in the production of sustainable high-performance plastics. The biobased amino-lauric acid is an alternative to petroleum-based laurin lactam (LL). ALS replaces the monomer LL in the manufacture of sustainable high-performance plastics and yields an identical compound polyamide 12 (PA 12). Whether in automobiles, sports, crude oil production or photovoltaics, Evonik produces a complete range of polyamide products with customized properties.

LanzaTech is a leader in gas fermentation technology that provides novel and economic routes to fuels and high value chemicals from waste gas streams. LanzaTech’s unique process, certified by the Roundtable on Sustainable Biomaterials, creates sustainable fuels and platform chemicals that serve as building blocks for everyday products such as rubber and plastics.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2012, the company generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion.
MRC

MOSCOW (MRC) -- Representatives of Russian Rosneft, Pirelli Tyre Russia and Rosneft- Armenia signed in Yerevan a memorandum of understanding today to establish a joint venture for production of butadiene- styrene rubber, said Arka, citing press service of Armenian president.

The memorandum and several other agreements aimed at enhancing cooperation were signed after the meeting of Armenian President Serzh Sargsyan with Rosneft head Igor Sechin.

At the order of Russian President Vladimir Putin a special delegation has arrived in Armenia to assess the available opportunities and develop specific action program to modernize Nairit chemical plant in Armenia.

In 2006, 90% of Nairit’s shares were sold to British RHinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government. RHinоville Property Lim ited was set up by Polish Samex, US Intertex and Russian Eurogaz . In April 2010 the plant stopped producing rubber. Before the halt, it sold its products chloroprene rubber- to EU countries, Russia (about 30% of the exports), the United States and 20 other countries.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time. This week Rosneft has taken over an oil unit of US bank Morgan Stanley’s commodities division for an undisclosed sum. The acquisition-hungry oil giant is getting the global oil merchanting unit that includes access to and international network of oil storage facilities, crude oil and oil products inventories and freight agreements.

MRC