Saudi Aramco eyes refining, chemical integration despite falling oil prices

MOSCOW (MRC) -- Saudi Arabian Oil Co. will push ahead with plans to expand and integrate its refining and chemicals businesses even amid the decline in oil prices, said Hydrocarbonprocessing, citing CEO Khalid Al-Falih.

The state-run oil company, known as Saudi Aramco, has a target of producing petrochemicals from 10% of all crude processed at its refineries, he said at an industry conference in Dubai.

Oil producers in the Persian Gulf can withstand a period of low crude prices because countries in the region are fiscally strong, Al-Falih said. Brent crude, a global benchmark, has tumbled 30% this year. "For a refiner to be profitable, integration with petrochemicals is very essential," he said.

Middle Eastern oil and natural gas producers are expanding petrochemical and refining operations to make fuel and other products that fetch higher prices than crude. Boosting petrochemical output is a long-term strategy for them to create jobs and build new industries in plastics and consumer goods.

Brent was trading 14 cents lower at USD80.22/bbl on the London-based ICE Futures Europe exchange at 9:18 a.m. local time. The grade has tumbled 30% from its high this year on June 19.

Petrochemical producers in the Gulf should use more naphtha and other liquids as feedstocks because supplies of gas aren’t sufficient to support their expansion, Al-Falih said. Petrochemical makers should upgrade older plants so they can operate using both gas and liquids as fuel, he said.

Saudi Basic Industries Corp. will gradually use more liquid feedstock instead of gas, the company’s CEO Mohammed Al-Mady said at the same conference. The decline in oil prices hurts Sabic because its profit margins on finished products are already squeezed, Al-Mady said. Sabic pays a fixed price for gas feedstock and isn’t benefiting from the drop in crude, he said.

Global economies have had a disappointing year, and lower oil prices may stimulate growth in 2015, Aramco’s Al-Falih said. The drop in crude will lead to beneficial economic reforms for producer in the Gulf, he said.

As MRC wrote before, Saudi Arabian Oil Co. and partner Sinopec Group plan to start a main refinery unit for making gasoline from crude at a joint venture plant at Yanbu on the Red Sea next year. The partners will start the plant’s hydrocracker by mid-2015 and begin producing gasoline next year, said two people with knowledge of plant operations, who asked not to be identified because they aren’t authorized to speak with media.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Dow Construction Chemicals (DCC), a business unit of The Dow Chemical Company, has announced the launch of a new high performance 100% acrylic redispersible powder, DLP-500, reported Dow in its press release.

With this launch, Dow enters a new market with a dry acrylic powder that performs as well as the company’s highly regarded acrylic emulsion products.

"This product represents our ongoing commitment to, and a truly unique innovation in, the redispersible powder market," said Bill Wagner, commercial director for DCC in North America. "DLP-500 provides all the performance benefits of a traditional wet acrylic, along with the sustainability benefits and savings from lower shipping and packaging costs."

Designed specifically for Exterior Insulation Finish Systems (EIFS) and stucco finishes, DLP-500 enables a dry mix with exceptional early rain resistance and dirt pick-up resistance while maintaining the workability and feel of traditional wet-formulated products. DLP-500 is the first product to be commercialized from what is expected to be a robust platform of high-performance, 100% acrylic redispersible powders for applications ranging from EIFS and roof coatings to repair mortars, grouts and tile adhesive.

Leveraging Dow’s decades-long experience in acrylic polymer technology, DLP-500 also enables formulators to serve a construction industry increasingly focused on sustainable building practices. By allowing for packaging in bags instead of pails or buckets, DLP-500 realizes package cost savings in excess of 60%. Additionally, without the presence of water, which can represent 50% of a traditional acrylic emulsion, DLP-500 customers can potentially cut their shipping costs and fuel use in half.

Produced in the United States, DLP-500 is being debuted in North America, with global launches expected in other regions throughout 2015.

As MRC wrote previously, in early 2014, Dow Chemical announced that the SCG-Dow Group, a joint venture between Dow and Siam Cement Group, had finalized the start-up of its new propylene oxide (PO) facility in Thailand by successfully completing its full capacity performance test.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has announced the launch of OnCap UV technology for fiber and textile applications, as per the company's press release.

Manufacturers of geotextiles and house wraps require fabrics and fibers to stand up to the sun without falling apart. Those who make UV resistant apparel, outdoor tents and shades also need the colors in their fabrics and fibers to stay fresh over time to promote brand identification and preserve brand image.

"Consumers in Asia and across the globe have higher standards for product quality and service life than ever before. We can now provide manufacturers with a single formulation that provides excellent color fastness and prolongs usable life while preserving mechanical properties," said Say Eng Lee, general manager, Color Asia.

Combining colorants with performance-boosting additives, these formulations help to protect non-woven polymer fabrics, fibers and filaments from UV light-induced degradation without any tradeoffs in performance.

OnCap UV colorant and additive solutions are compatible with PA, PET, PP and a range of other materials. They feature excellent color fastness at low loading levels, and can include flame retardants to meet stringent safety standards. Formulations can pass weathering standard ASTM G154 and AATCC 186, and fire resistance standard FMVSS302.

As MRC informed earlier, in June 2014, PolyOne Corporation 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 premier 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) -- Williams Olefins has extended its October ethylene force majeure allocation at its Geismar, Louisiana plant, keeping its sales allocation for November at 0%, as per Plastemart.

"As of today, we continue to estimate the earliest date of ethylene production will be before the end of November," the letter stated. "For ethylene planning purposes, we will stay with our original allocation of 0 (zero) volume in November released in the October 15th Force Majeure letter," the letter added.

A trading source said that expectations for ethylene supply out of the plant is "at best after mid-December. When Geismar returns, the company is expected to boost its ethylene production capacity by 600 mln lb/year to a total capacity of 1.95 bln lb/year (885,000 mt/year).

As MRC wrote before, Williams Partners L.P. has announced it expects its expanded Geismar Olefins plant to begin manufacturing ethylene for sale in November. That timeline is consistent with the financial guidance the partnership provided in July.

Williams, headquartered in Tulsa, Okla., is one of the leading energy infrastructure companies in North America. It owns controlling interests in both Williams Partners L.P. and Access Midstream Partners, L.P. through its ownership of 100% of the general partner of each partnership. Additionally, Williams owns approximately 66% and 50% of the limited partner units of Williams Partners L.P. and Access Midstream Partners, L.P., respectively. On June 15, 2014 Williams proposed the merger of Williams Partners and Access Midstream Partners. The proposed merger has been approved by boards of each partnership and is expected to close in early 2015.
MRC

MOSCOW (MRC) -- Dow Building Solutions, a business unit of The Dow Chemical Company, has introduced LIQUIDARMOR - CM Flashing and Sealant, an innovative, patented liquid flashing solution designed to provide commercial buildings advanced moisture and air sealing protection, reported Dow on its site.

An innovative alternative to flashing tape, the elastomeric spray forms a tight, seamless barrier along the rough openings of windows and doors while helping to significantly reduce labor time. The new product offers an excellent alternative sealant solution to conventional flashing and sealing products for installation of THERMAX or the Ultra Air Barrier Wall Systems.

LIQUIDARMOR - CM Flashing and Sealant covers and seals hard-to-reach gaps up to a quarter inch wide and offers a reliable replacement to peel-and-stick flashing tapes commonly used on board joints of commercial buildings. The versatile, water-based coating works on a wide range of surfaces, including foam boards, steel studs, concrete masonry units, tapes, wood buck, and wraps. With sprayable, aqueous technology, it facilitates a consistent application using commonly available airless paint sprayers, such as those sold through Titan and Graco, without measuring, cutting or special accessories. Additionally, the non-hazardous, liquid flashing solution can be safely sprayed without a respirator or extra ventilation required.

"Dow Building Solutions has been and always will be committed to providing the industry with the most innovative products," said Tim Lacey, commercial director for Dow Building Solutions. "Today, we are continuing to innovate for all construction professionals with the launch of our LIQUIDARMOR - CM Flashing and Sealant, which is as much as three times faster than traditional flashing tapes, and helps cut down on overall installed labor time and costly call backs by getting the job right the first time. We believe this product will help make commercial jobs easier while providing unmatched results, enhancing the reliability of our high performance wall systems even more."

Dow’s liquid flashing solution seals around screws, veneer anchors and penetrating fasteners, resulting in a durable and resilient barrier suited to withstand job site variations and long-term building performance. Once the LIQUIDARMOR - CM sealant sets to the final elastomeric solid, the treated area is protected and helps provide superior air leakage and moisture control as part of a joint treatment with Dow’s commercial wall assemblies.

As MRC wrote before, Hanwha Chemical, one of South Korea's leading polyethylene and polyvinyl chloride producers, has picked Credit Suisse to advise on possible purchases from Dow Chemical's chloro-alkali business but its interest is still in the early stages.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC