Thai PTT Global seeks partner to expand crude capacity at Indonesian refinery

MOSCOW (MRC) -- Thailand's PTT Global Chemical Pcl is seeking a partner to expand the crude processing capacity of its planned joint petrochemical project with Indonesian state oil and gas firm Pertamina, as per Plastemart.

PTT Global is planning to triple the crude processing capacity of the project to 360,000 bpd, which would boost the estimated investment in the complex to as much as USD8 bln. PTT Global's initial plans with Pertamina had called for an investment of USD5 bln in the petrochemical complex at Balongan on Java island. The investment is part of PTT Group's plan to boost its presence in Southeast Asia as domestic demand slows after several months of political unrest that weakened the economy.

"The estimated investment is expected to rise to USD7-8 bln. PTTGC will focus on petrochemicals and we need to seek a partner to strengthen the refining part," as per CEO Bowon, adding the refinery will help supply feedstock to the petrochemical plant.

The company is studying details on how to finance the project and potential partners, a process it expects to conclude in early 2015. It aims to begin operations at the Indonesia complex in 2020, delayed from a previous completion target in 2018, Bowon said.

The proposed complex, which is scheduled to come on stream by 2019 in Balongan, West Java, is expected to include the production of about 1.2-million t/y of polyethylene and polypropylene and nearly 1-million t/y of other petrochemical derivatives such as monoethylene glycol and butadiene.

As MRC reported earlier, this week, PT Indo Thai Trading (ITT) launched operations as a joint venture of Indonesia's Pertamina and Thailand’s PTT Global Chemical (PTTGC). ITT will be responsible for the marketing and sales of all production from this complex.

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 (MRC) -- Daqing Refining & Chemical is in plans to restart a polypropylene (PP) plant following maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant is likely to be restarted in mid-September 2014. It was shut on August 4, 2014.

Located in Heilongjiang province, China, the plant has a production capacity of 300,000 mt/year.

As MRC wrote before, in February 2014, Daqing Refining & Chemical already conducted a turnaround at this PP plant.

Earlier, Daqing Refining & Chemical shut its PP plant for maintenance turnaround on August 9, 2013, for around 45 days.

Daqing Petrochemical, which is a main buyer of feedstock LPG from Daqing Refining & Chemical, shut its 600,000 tonne/year naphtha cracker for turnaround at the same time. Daqing Refining & Chemical has an 8m tonne/year refinery in northeast China’s Heilongjiang, with its secondary conversion capacity reaching 6m tonnes/year.
MRC

MOSCOW (MRC) -- PolyOne GLS Thermoplastic Elastomers has announced that Versaflex CE TPE materials for consumer electronics are now available in combination with Percept Authentication Technologies, as per the company's press release.

This material innovation has been developed to help brand owners combat counterfeiting and reduce the risks associated with fraudulent goods such as phone cases, smart watches, headphones, earbuds and other wearable electronics.

"When designing innovative consumer products, it is extremely important to protect brand equity, differentiated offering and overall revenues," said Charles Page, director of global marketing, PolyOne GLS Thermoplastic Elastomers. "Our new solution combines Percept’s anti-counterfeiting ability with the haptics and durability of Versaflex CE TPEs. In 2013, the U.S. Department of Homeland Security logged USD145 million worth of counterfeit consumer electronics entering the country, and this material was developed to help counteract the trend."

Percept technologies can be tailored to a wide variety of processing conditions, end-use applications, and authentication techniques based on overt, covert, or forensic-based approaches. These solutions enable brand owners to readily identify counterfeit products with easy-to-use methods based on additives and unique identifiers called taggants.

As MRC informed earlier, in February 2014, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants, and are pre-certified to meet or exceed biocompatibility requirements for ISO 10993 and/or USP Class VI protocols.

PolyOne Corporation, with 2013 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
MRC

MOSCOW (MRC) -- Mexichem, Mexican PVC and specialty chemicals maker, has announced that it has reached an agreement to acquire Dura-Line Corp. from CHS Capital for a total of USD630 million in cash and assumed liabilities, advancing Mexichem’s strategy of global growth in high-end specialty products, reported Mexichem on its site.

Based in Knoxville, Tennessee, Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure-pipe solutions for telecom and data communications, energy and infrastructure industries.

Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa.

"The acquisition of Dura-Line will be a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products and solutions," said Antonio Carrillo, CEO of Mexichem.

"Dura-Line’s technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations," he added. "Dura-Line’s international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products."

The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the company’s integral solutions chain for accounting purposes.

Dura-Line will continue to operate under its current management and with its existing brand portfolio.

As MRC informed previously, in early August 2014, Mexichem SAB de CV has agreed to buy German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros (USD293 million). Based in Marl, Germany, Vestolit makes the PVC paste for flooring, wallpaper and underbody protection for cars, according to a news release from SVP. Greenwich, Conn.-based SVP started looking for a buyer for Vestolit in mid July

Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.
New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser.
MRC

MOSCOW (MRC) -- Petrobras rebounded from the biggest slump in four months after Brazil’s state-run crude producer forecast increased oil exports and fuel output, said Hydrocarbonprocessing.

After posting an unexpected second-quarter profit decline on higher fuel imports and lower oil exports, Petrobras said in a presentation on Aug. 11 that sales to overseas markets probably would surge 51% in the second half while refinery production would rise 4%. That signals a reduction in losses from selling imported fuel at below global prices.

"There’s a lot of new oil we’ll have in the coming weeks and months," Jose Formigli, who heads exploration and production, said on Aug. 11 on a conference call with analysts. Petrobras, based in Rio de Janeiro, rallied 4.3% to close at 20.14 reais in Sao Paulo after tumbling 4.2% on Aug. 8.

Earnings of the biggest crude producer in ultra-deep waters has disappointed analyst in three of the past four quarters. Crude exports fell 14% in the second quarter from a year ago while an increase in fuel output wasn’t enough to prevent a 56% surge in imports, which are sold at a loss because of price caps. President Dilma Rousseff’s government, which controls Petrobras with a majority of voting shares, has prevented the company from increasing prices enough to erase import losses as it seeks to keep inflation in check.

The fuel subsidy policies have weighed on the shares, which have lost investors 37% in the past four years, making it the worst performer of the 20 most valuable major oil producers. The company’s fuel imports jumped to 407,000 bpd in the quarter, from 261,000 a year earlier. Daily crude exports fell to 308,000 bbl from 359,000.

In today’s presentation, Petrobras said it expects crude exports to average 250,000 bpd in the second half. Output at the company’s pre-salt fields reached a record 546,000 bbl on July 13. Net income fell 20% to 4.96 billion reais ($2.2 billion), or 38 centavos a share, from 6.2 billion reais, or 48 centavos, a year earlier. That trailed the 55-centavo average of 12 analysts’ estimates compiled by Bloomberg.

Petrobras plans to boost domestic crude output 7.5% this year as it connects wells to production equipment in deep waters of the Atlantic. The company’s domestic output rose 2% in July from the prior month to 2.049 million bpd as it increased production at two new platforms. This month it surpassed 2,100 bpd as the company added wells to new platforms, Formigli said. A combination of equipment delivery delays, unplanned maintenance at offshore platforms and faster-than-expected declines at the company’s legacy fields in the Campos Basin has left production little changed since 2010.

As MRC wrote before, Brazilian state-run energy giant, Petroleo Brasileiro SA or Petrobras ( PBR ) has awarded two ultra-deepwater contracts to the project management, engineering and construction company, Technip ( TKPPY ). However, the value of the contracts has not been disclosed.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
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