LDPE production in Russia rose by 2% in January 2015

MOSCOW (MRC) -- Last month's production of low density polyethylene (LDPE) in Russia increased by 2% year on year. All producers, except for Kazanorgsintez, increased their LDPE production, according to MRC ScanPlast.

January LDPEl production in Russia totalled 60,600 tonnes versus 59,700 tonnes over the same period a year earlier and 57,100 tonnes in December 2014. All local producers, with the only exception of Kazanorgsintez, raised their output. Angarsk Polymer Plant accounted for the largest increase in capacity utilisation.

The LDPE production structure by plants looks the following way over the stated period.

Angarsk PP increased its LDPE production to 6,600 tonnes last month from 5,500 tonnes in January 2014 and 5,400 tonnes in December 2014.

Tomskneftekhim, Ufaorgsintez and Gazprom neftekhim Salavat showed a less significant increase in their output in January. The overall LDPE production at these plants totalled 22,100 tonnes, 8,700 tonnes and 3,600 tonnes, respectively, while in January 2014 the plants produced 22,000 tonnes, 8,300 tonnes and 3,500 tonnes, respectively.

Kazanorgsintez, Russia's largest polyethylene producer, produced 19,800 tonnes of LDPE in January versus 20,400 tonnes in January 2014 and 16,600 tonnes in December 2014.

MRC

MOSCOW (MRC) - Chevron Corp said it will give up shale gas exploration plans in Romania, after an assessment showed the Black Sea state does not compete favourably with other investment opportunities, said Reuters.

Energy firms have been attracted by estimates of massive shale gas reserves in Poland and Romania. Last month, the U.S. energy major took a similar decision to discontinue its operations in Poland.

"Chevron intends to pursue relinquishment of its interest in these (Romanian) concessions in 2015," Kent Robertson of Chevron said in an email to Reuters.

"This is a business decision which is a result of Chevron's overall assessment that this project in Romania does not currently compete favourably with other investment opportunities in our global portfolio."

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) -- Braskem SA, Latin America's largest petrochemical company, may halt production at most of its plants in March if it fails to extend a supply agreement with oil company and key shareholder Petrobras , Braskem's CEO said in a newspaper interview, reported Reuters.

Braskem's plants in Sao Paulo, Bahia and Rio Grande do Sul are dependent on naphtha supply and may need to interrupt production, said CEO Carlos Fadigas. The move would be a potentially heavy blow to Brazil's beleaguered economy at a time when it is being undermined in part by a corruption scandal at state-run Petroleo Brasileiro SA, as Petrobras is formally known.

The Odebrecht Group, which controls Braskem, also supplies construction and engineering, shipping and other services to Petrobras. Executives from Odebrecht and other major construction and engineering firms have been caught up in the Petrobras corruption probe that has forced Petrobras to suspend payments as well as its work with some companies.

Petrobras owns 37% of Braskem and is Odebrecht's principal partner in the company.

Braskem's and Petrobras' naphtha supply agreement, worth about 9 billion reais (USD3.2 billion) a year, expires at the end of the month. Naphtha accounts for more than two-thirds of Braskem's costs, according to the O Estado de S.Paulo newspaper.

"I don't know what happens next. When we discussed renewing the contract in the past, Petrobras said it would not deliver any naphtha without an agreement," Fadigas told Estado in the interview.

Braskem already froze investments worth 1 billion reais due to the uncertain naphtha supply, Fadigas said. Long-term deals with potential clients have also been postponed.

As MRC informed before, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas. The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil. Construction on the plant began in the third quarter of 2014, with completion expected in the first half of 2016.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

MOSCOW (MRC) -- BASF offers its customers individual coatings solutions as the automotive industry focuses on sustainable manufacturing processes. Thus, the Coatings division has been awarded the "Excellent Supplier 2014: Leading Technology Award” by Shanghai General Motors Co., Ltd (SGM), reported BASF on its site.

As the only coatings supplier to win the annual award, BASF Shanghai Coatings Co., Ltd. stood out from around 4,000 SGM suppliers due to its excellent on-site service and leading technology.

"We appreciate our long-term partnership with BASF. We are impressed by BASF’s timely and efficient on-site service, which supports our business development and sustainability goal," said Adam Chang, Senior Manager Purchasing Department, Shanghai General Motors Company Ltd. "With BASF’s innovative coatings technology, we have reduced solvent use and volatile organic compound emissions in our painting lines, achieving a more sustainable car manufacturing process."

As MRC informed previously, in December 2014, BASF’s Coatings division became the sole supplier of automotive coatings for the new plant of the Chinese automaker Chery in Jacarei, Brazil, which started operations in August 2014.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC