Nova Chemicals inks deal as anchor shipper for UTOPIA project

MOSCOW (MRC) -- Kinder Morgan Energy Partners (KMP) has received a long-term transportation agreement from NOVA Chemicals to transport ethane and ethane-propane mixtures from the prolific Utica shale area through its previously reported Utica to Ontario Pipeline Access (UTOPIA) project, which is currently in a binding open season that began Sept. 5, 2014, and will close on Oct. 6, 2014, said Hydracarbonprocessing.

As part of the UTOPIA project, Kinder Morgan Cochin will develop, construct, own and operate a 240-mile, 12-inch diameter pipeline from Harrison County, Ohio, to Kinder Morgan’s Cochin Pipeline near Riga, Michigan, where the company would then move product eastward to Windsor, Ontario, Canada. UTOPIA would have an initial 50,000 bpd of capacity, which is expandable to more than 75,000 bpd. The approximately USD500 million pipeline project is expected to be in service by early 2018 with the receipt of timely permitting and regulatory approvals.

"We are pleased to partner with NOVA Chemicals to provide a long-term solution for moving ethane and ethane-propane mixtures out of the Utica shale," said Don Lindley, President of NGL, Products Pipelines for KMP.

"This pipeline project supports NOVA Chemicals’ growth strategy-providing our Corunna, Ontario, facility with diversity of supply by accessing feedstock from new and existing producers in the growing Utica shale basin, in addition to our current feedstock supply," said Grant Thomson, President of Olefins and Feedstocks for NOVA Chemicals.

As MRC wrote before, NOVA Chemicals announced that the first barrels of ethane supplied from natural gas associated with oil production from Bakken Shale are being utilized at its Joffre complex in Canada's Alberta province. The ethane was produced at Hess Corp.'s plant in Tioga, North Dakota, and transported across the border into Alberta via the Vantage Pipeline.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.
MRC

PolyOne helps brands gain competitive position in organic cosmetics

MOSCOW (MRC) -- PolyOne, a premier global provider of specialized polymer materials, services and solutions, has launched a new range of organic-based colorants, part of the Colorsperse portfolio, as per the company's press release.

iIn response to rising consumer demand for makeup that contains natural ingredients, these new color dispersions have been developed for lipsticks and anhydrous (oil-based) cosmetics.

In addition to increasing competitive market position, Colorsperse organic-based colorants also boost process efficiency by eliminating pigment grinding and additional quality checks, which often require multiple color corrections.
This new line incorporates a plant-based carrier system and leads to a cleaner working environment than is typical with dry powder pigments.

Seth Tomasch, general manager, PolyOne, said, "Cosmetics brands can leverage our expertise in pigment dispersions to improve their competitive advantage with greater process efficiencies and enhanced consumer appeal that expands marketplace reach."

As MRC wrote before, in June 2014, PolyOne Corporation has presented its specialty portfolio for automotive interiors to designers and engineers at the 2014 WardsAuto Interiors conference. These advanced technologies, including soft-touch materials as well as colorants and special effects, enable customers to design new features that boost consumer appeal and reduce manufacturing complexity.

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

Loan market shut by sanctions squeezing Finances: Russia Credit

MOSCOW (MRC) -- Russian companies are facing a squeeze in funding as sanctions targeting industries smother lending to all borrowers, including those that aren’t blacklisted, said Bloomberg.

"As long as those sanctions measures remain in force, one anticipates there will be very little international lending,” Philip Hanson, an associate fellow at the Chatham House research group in London, said yesterday by telephone.

Syndicated loans plunged 53% this quarter from a year earlier to USD2.68 billion, the lowest level in at least five years, according to data compiled by Bloomberg. Coal miner Siberian Anthracite’s USD250 million deal was the only international one signed this month, the smallest number for any September since at least 2008.

Banks are weighing the consequences of doing business with Russia after BNP Paribas SA was fined a record USD8.97 billion in June for circumnavigating U.S. embargoes on Sudan, Iran and Cuba. Dutch lender ING Groep NV pulled out of a loan sought by Techsnabexport JSC even though the Russian nuclear exporter isn’t among companies targeted by the penalties, two people familiar with the matter said Sept. 12.

The ING decision came about a month after U.S. and European Union sanctions on VTB Group prevented the second-biggest Russian bank by market value from signing a USD1.5 billion loan with a syndicate led by Barclays Plc.

Swiss energy trader Vitol Group’s plan to raise USD2 billion to buy oil from state-owned producer OAO Rosneft was put on hold after the world’s largest publicly traded oil producer by volume was slapped with U.S. sanctions on July 16, according to two people familiar with that transaction.

The U.S. and Europe widened penalties in July after travel bans and asset freezes aimed at President Vladimir Putin’s inner circle failed to end the conflict in Ukraine. The sanctions, which target Russia’s biggest state-run banks, energy companies and defense firms, block lending for public-sector investment projects and prevent targeted companies including OAO Gazprombank and OAO Novatek from accessing equity or debt markets for new long-term financing.
MRC

PE imports in Kazakhstan decreased by 17% in January - August 2014

MOSCOW (MRC) - Imports of polyethylene (PE) in Kazakhstan decreased by 17% in the first eight months of this year.
The fall in demand occurred for high density polyethylene (HDPE), whereas the need for other types of polyethylene increased significantly, according to MRC analysts.

August PE imports in Kazakhstan declined to 11,700 tonnes, compared with 12,500 tonnes in July, largely because of reduced export quotas from Russian producers. Total PE import in the country decreased to 66,600 tonnes in January - August 2014, compared with 80,500 tonnes year on year. Demand for HDPE decreased almost by a quarter, in particular, from local pipe producers, whereas the demand for linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) continues to grow.

Structure of PE supply over the period under review was as follows.

August HDPE imports decreased to 9,200 tonnes, compared with 9,600 tonnes in July. Local companies did not manage to offset the reduction in the supply of Russian HDPE by the increase in the imports from other countries. Total HDPE imports in the country decreased to 50,400 tonnes in the first eight months of this year, compared with 68,100 tonnes year on year. More than 80% of the total HDPE consumption in Kazakhstan occurred for pipe producers. The share of Russian HDPE in the local market is about 65%.

August imports of LDPE in Kazakhstan decreased to 2,100 tonnes, compared with 2,400 tonnes in July. Imports volumes reduced because of the reduced export quotas from Russian producers and high prices. Total imports of LDPE in the country were 13,400 tonnes in January - August of this year, compared to 9,900 tonnes year on year. Key suppliers of LDPE in the country were Russian producers with a share of about 95% from the total imports.

August imports of LLDPE in Kazakhstan were 400 tonnes, compared with 462 in July. Total LLDPE imports in Kazakhstan were 2,800 tonnes in the first eight months of the year, up 9% year on year. Key suppliers of LLDPE in the country were producers from Asia and Uzbekistan.


MRC

PET production in Russia decreased by 2% in January-August 2014

MOSCOW (MRC) - Russia's polyethylene terephthalate (PET) production decreased by 2% compared to the same time a year earlier, according to a ICIS-MRC Price Report.

Despite 90,000 tonnes/year expansion of PET production at Polief, SIBUR group, total volumes of PET production in the country has decreased. The increase of PET production at Polief was offset by the weaker output at Alco-Naphtha, based in Kaliningrad.

August PET production in Russia increased by 9% compared to July. Alco-Naphtha resumed PET production in August, which led to the increase in the production in the country.

At the same time Senege, based in Solnechnogorsk, shut PET production for scheduled maintenance works in the second half of August.
Producer's PET production in August was 2,800 tonnes, down 4,900 tonnes in July.

August PET production at SIBUR-PET remained practically steady, compared with the July level.

Buying activity was sluggish in the Russian PET market in September. Producers and converters reported a significant carryovers of PET chips and finished products at their warehouses.
MRC