Cepsa Canadian PTA business acquired by Indorama

MOSCOW (MRC) -- Indorama Ventures Public Co. Ltd. (IVL; Bangkok, Thailand) has signed an agreement to acquire 100% shareholding of the Montreal-based purified terephthalic acid (PTA) business of Cepsa Quimica SA, Cepsa Chimie Montreal, said Chemengonline.

Cepsa’s plant is the only PTA facility in Canada, and one of only three PTA suppliers in North America. The acquisition, subject to the usual regulatory approvals, will allow the company to expand its footprint into Canada.

"This will be our inaugural entry into Canada," says Aloke Lohia, IVL group CEO. "Cepsa Chimie Montreal s.e.c. provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security. The acquisition is in line with our announced strategy to expand in our core businesses, primarily in the West."

Cepsa Chimie Montreal s.e.c. has, at this production site, a capacity of approximately 600,000 metric tons per year (m.t./yr) of PTA and receives piped supply of its feedstock para-xylene from an adjacent refinery. The plant is logistically well-placed to economically serve customers via rail access or via the St. Lawrence River.

As MRC informed earlier, Indorama Ventures Public Company Limited (IVL) informed that its subsidiary Indorama Petrochem Limited, Thailand has signed a definitive share purchase agreement with Bangkok Cable Company, Limited, a major shareholder, to acquire 94.91 percent equity stake in polyethylene terephthalate (PET) polymers maker Bangkok Polyester Public Company Limited (BPC), Thailand.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC

MOSCOW (MRC) -- LyondellBasell has announced plans to expand Tri-ethylene Glycol (TEG) production capacity at the company's existing ethylene oxide and ethylene glycol plant in Pasadena, Texas, reported the producer in its press release.

The additional capacity of 50 million pounds per year would more than double the company's current production capacity. Engineering is already underway on the new unit, which is anticipated to be operational in late 2016. It is expected to be one of the world's largest on-purpose TEG production units, meaning the TEG is produced by design and not as a by-product of another manufacturing process.

"The long-term demand for Tri-ethylene Glycol in oil-field, construction and automotive markets in North America, along with the company's feedstock integration to ethylene and ethylene oxide, makes this project a logical extension of our high-value glycol derivative businesses," said Pat Quarles, LyondellBasell executive vice president of Intermediates and Derivatives, Supply Chain and Procurement.

TEG is a colorless, odorless glycol that is used to dehydrate natural gas and as an additive in hydraulic and brake fluids, among other uses. The company's Bayport Underwood plant in Pasadena produces ethylene oxide, ethylene glycol, glycol ethers and other products. Glycol ethers are used to manufacture brake fluid, dyes, paint, solvents, commercial cleaners and waxes, detergents and cosmetic bases. Ethylene glycols are used as intermediate chemicals to produce polyester (PET) fibers, films and bottles.

As MRC wrote before, in May 2014, LyondellBasell received a key permit required in the company's multi-plant ethylene expansion program which, when fully operational, is expected to increase annual ethylene capacity by an estimated USD3.12 billion, for a total estimated capacity of USD19.9 billion in North America.

LyondellBasell is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
MRC

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 224,000 tonne in first two months of this year, up 46% year on year, compared to the same period of 2014. Increase in production volumes showed all Russian companies, except Ufaorgsintez and Neftekhimiya, as per MRC ScanPlast.

February PP production in Russia was 111,000 tonnes this year, compared with 112,900 tonnes in January, a slight decrease in capacity utilisation occurred at Stavrolen and Poliom. Total PP production in Russia reached 224,000 tonnes in the first two months of the year, from 153,000 tonnes in the same period of 2014. Almost all plants, expect Ufaorgsintez and Neftekhimiya (Kapotnya), increased their capacity utilisation.

Structure of PP production over the reported period looked as follows. The largest producer of polypropylene in Russia - Tobolsk-Polymer has been increasing its production rates since the beginning of the year; the producer's PP output grew to 40,900 tonnes in February (34,700 tonnes in January). Tobolsk-Polymer's PP production was 75,700 tonnes in the first two months of the year, compared with 17,300 tonnes year on year.

Poliom (Titan) reduced capacity utilisation by 2% in February, with 15,300 tonnes of PP produced in February (17,200 tonnes in January).
Total PP production at the plant over the reported period grew to 32,600 tonnes, compared with 21,800 tonnes year on year.

Nizhnekamskneftekhim and Tomskneftekhim also increased their PP production in February, with 16,400 tonnes and 11,300 tonnes respectively. Total PP production in January - February 2015 at these plants was 35,200 tonnes and 23,100 tonnes respectively, up 5% and 7%, compared with the same time a year earlier.

Stavrolen (LUKOIL) last month had to shut its PP production because of the preparatory work for the resumption of the production of ethylene, so that PP production was reduced to 7,400 tonnes (10,800 tonnes in January). Total PP production at the plant over the reported period was 18,200 tonnes, compared with 18,100 tonnes year on year.

Ufaorgsintez and Neftekhimiya decreased PP production to 21,000 tonnes and 18,100 tonnes over the reported period, up 3% and 5% compared with the same period year on year.


MRC

MOSCOW (MRC) -- Total, Europe’s third-largest oil company, is pushing ahead with a USD27 billion natural-gas project in the Russian Arctic, but it will seek a big chunk of the financing - as much as USD15 billion worth - through Chinese banks in local currency and euros, reported MarketWatch.

The decision comes amid worry that Western sanctions against Russia could complicate the sort of dollar-based fundraising that is more typical for big energy projects.

Total’s Arctic project - years in the planning - doesn’t run afoul of sanctions itself. But one of Total’s partners in the Yamal liquid natural gas venture is Russian energy firm OAO Novatek, in which Total has a minority stake. Another big Novatek shareholder is Gennady Timchenko, who has been specifically targeted by U.S. sanctions.

The U.S. and Europe have slapped a series of economic sanctions on Moscow in recent months amid a standoff over Ukraine and Crimea. Under the sanctions regime, rules limit the transfer to Russian firms of technology related to some unconventional drilling techniques, including shale-oil recovery methods and some Arctic and offshore oil projects. But Yamal, a natural-gas project, isn’t specifically affected.

Total has previously signaled its plans to meet some of the big costs of the project through fundraising from Chinese banks. But the size of the funding goal disclosed by Chief Executive Patrick Pouyanne in an interview could make the Yamal project the largest reported private corporate deal involving Chinese banks. The biggest deal of that nature so far is a $12 billion syndicated loan to Daimler AG DAI, -2.86% DDAIY, +0.01% in 2013, in which two of the 34 banks were Chinese.

As MRC informed before, Total is in plans to permanently shut its high density polyethylene (HDPE) line. A Polymerupdate source in Belgium informed that the line is planned to be shut by this year-end. The plant will be shut permanently owing to weak margins which have arisen on account of cheap imports in the region. Located at Antwerp in Belgium, the line has a production capacity of 70,000 mt/year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- The overall imports of high density polyethylene (HDPE) to Ukraine fell over the first two months of 2015 by 38% year on year and totalled 12,100 tonnes, according to DataScope report.

February HDPE imports into Ukraine increased after the January fall and totalled 6,700 tonnes (5,300 tonnes in January). The overall HDPE imports decreased to 12,100 tonnes in January and February 2015 versus 19,300 tonnes a year earlier. Pipe grade polyethylene (PE) accounted for the greatest drop in demand.

The supply structure by HDPE processing technologies looks the following way over the stated period.

February imports of film grade HDPE to the Ukrainian market grew to 4,100 tonnes from 2,700 tonnes a month earlier because of the increased supplies from Russia. The overall imports of film grade PE decreased over the first two months of 2015 to 6,700 tonnes, down by 31% year on year.

February imports of pipe grade HDPE were about 600 tonnes, whereas in January this figure barely exceeded 500 tonnes. Imports of this PE grade to the Ukrainian market slumped by 71% over the said period to 1,100 tonnes.

Last month's imports of blow moulding HDPE to Ukraine rose up to 1,300 tonnes from 908 tonnes in January 2014 because of the resumption of shipments from Russia. Demand for this PE grade from local converters declined by a quarter in January and February 2015 and totalled 2,200 tonnes.

February imports of injection moulding HDPE fell to 510 tonnes versus 1,300 tonnes a month earlier, due to the suspension of purchasing from local producers of caps for PET packaging. Imports of injection moulding HDPE to Ukraine totalled around 1,800 tonnes over the stated period, down by 33% year on year.

MRC