Advanced Petrochemical mulls new projects locally and overseas

MOSCOW (MRC) -- The rise in earnings of Advanced Petrochemical Co. (APC) was mainly driven by the increase in production, as product prices rose 5% in the fourth quarter compared to the third quarter and sales grew 8%, reported Ein News with reference to CEO Abdullah Al Qarie's interview with Alarabiya TV.

He added that his company is studying new investment opportunities in Saudi Arabia, in addition to overseas markets of the US and Canada. Asked whether the company may borrow through issuing Sukuk, the top official asserted that the company's credit ability is very strong.

APC had posted a 38% rise in Q4-13 net earnings to above SAR 161 million, beating estimates of SAR 153.5 million.

As MRC wrote previously, in 2012, Advanced Petrochemical Company (Advanced) and Aramco Total Refining and Petrochemical Company (Satorp) signed on a sales agreeent for the supply of 50,000 tonnes per year of propylene from Satorp Refinery to be built in Jubail Industrial City (2) to Advanced. Under this agreement, Satorp will provide Advanced with 50,000 tonnes of propylene annually for an initial period of three years and it will be renewed on an annual basis. And it is expected to commence supply starting from January 1, 2014 and Satorp will supply propylene by a pipeline from Jubail (2) to Jubail (1).
MRC

MOSCOW (MRC) -- Thailand's largest petrochemical maker, PTT Global Chemical Pcl plans to invest USD4.5 billion from 2014 to 2018, mostly on foreign expansion, reported Ein News with reference to the company's chief executive's statement.

The amount is unchanged from previous estimates. The company will use its revenues for about USD2.5 billion while the rest will come from bank loans or bond issues, Bowon Vongsinudom, president and CEO of PTT Global, told reporters.

"We recently raised USD1 billion via a bond issue and whether we will sell more bonds or seek loan will depend on our study on large foreign investments," Bowon said.

PTT Global, 49% owned by top energy firm PTT Pcl, is considering the possibility of overseas investments especially in Indonesia, China, Malaysia and Vietnam, he said.

As MRC informed previously, the Thai firm has already joined Indonesian state oil and gas firm Pertamina to build a petrochemical complex in Indonesia with estimated cost of USD5 billion.

Besides, earlier, last 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.

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 (Markey Report) -- Sasol Limited’s Chief Executive Officer, David Constable, and the South African Minister of Trade and Industry, Dr Rob Davies, has inaugurated Sasol’s new ethylene purification unit, known as the Ethylene Purification Unit 5 (EPU5), in Sasolburg, according to the company's press release.

Located at the Sasol Polymers Plant in Sasolburg, the R1.9 billion ethylene purification unit aims to address the growing demand for polyethylene material. The plant will also ensure better utilisation of Sasol’s existing downstream polyethylene facilities.

In delivering his opening remarks at the official opening, David Constable said, "Through the installation of the new ethylene splitter, considerable production capacity has been freed up to produce more ethylene. In so doing, our investment in EPU5, together with a new compressor unit in Secunda, will provide the South African plastics manufacturing industry with an additional 47 000 tons of polyethylene annually."

EPU5 is already in operation phase. Half of the additional 47 000 tons of polyethylene will be reached within the next six months, while the plant is expected to reach full capacity by 2017.

"The South African plastics industry is a significant contributor to the national economy. Local demand for polyethylene polymers continues to grow at a rate of 4 to 5% annually. With a rise in new plant capacities and the need to be globally competitive, we recognised the necessity to expand both polymer and ethylene production," said Marinus Sieberhagen, Managing Director, Sasol Polymers.

As MRC informed previously, in April 2013, Sasol selected the UNIPOL polyethylene process of Univation Technologies and the tubular process technology from ExxonMobil Chemical for the new linear low-density polyethylene (LLDPE) and low-density polyethylene (LDPE) plants in North America, respectively.

Sasol Limited is an integrated energy and chemical company that began in Sasolburg, South Africa in 1950. It develops and commercialises technologies and builds and operates world-scale facilities to produce a range of product streams including liquid fuels, chemicals.
MRC