Wacker starts up 20,000 tonne/year PVAc solid resins plant in China

MOSCOW (MRC) -- Wacker Chemie AG inaugurated its new production plant for food-grade polyvinyl acetate (PVAc) solid resins at its Nanjing site (Jiangsu province) in China, said Chemeurope.

PVAc solid resins find use in the manufacture of gumbase for chewing gum. With this investment, WACKER intends to secure sufficient long-term capacity to meet the strong demand for PVAc solid resins and thus continue to offer its Asia-Pacific customers high supply security and product quality. The Group invested around €20 million in the expansion project.

"The new solid-resins plant in Nanjing is an important milestone for our continued growth in the region," explained Auguste Willems, Wacker Chemie AG Executive Board member, at the opening ceremony. "Asia has become one of the biggest markets for chewing gum. Thanks to the new plant, we can keep pace with our customers’ strong demand for high-quality polyvinyl acetate solid resins in the region in the future – and are thus strengthening our position as the world’s leading manufacturer of solid resins for gumbase."

The company spent around EUR20m for the expansion project at the Nanjing complex. While strengthening its position as manufacturer of PVAc solid resins, the project allows the company to serve the demand for the product with sufficient long-term capacity.

The Nanjing complex already serves the construction, coating, adhesive and other industries by providing vinyl acetate-ethylene copolymer dispersions and dispersible polymer powders.
MRC

Unipetrol will finalize the transaction of acquiring Enis stake in Ceska Rafinerska in Q2 2015

MOSCOW (MRC) -- Unipetrol, subsidiary of PKN ORLEN, welcomes the Office for the Protection of Competition final decision regarding the purchase of Eni’s 32.445% stake in Ceska rafinerska. After the transaction closing, which is expected in the second quarter of this year, Unipetrol will become a sole shareholder of Ceska rafinerska, reported the company on its site.

"In particular, we decided to purchase the stake in Ceska rafinerska to ensure the feedstock for our petrochemical production, which will be the main producer of the group's profit in future," says the CEO and Chairman of the Management Board of Unipetrol, Marek Switajewski. "The acquisition opens up possibilities for further improvements of the operational management of the Czech refineries and will enable strategic control over these assets. We expect an improvement especially in terms of operational cost savings," adds Marek Switajewski.

After the acquisition of Shell's stake in early 2014, Unipetrol’s share in the share capital amounts to 67.555%. After the completion of the transaction with ENI, Unipetrol’s share will increase to 100%.

CESKA RAFINERSKA, a.s. operates refineries in Litvinov and Kralupy, currently the only two running refineries in the Czech Republic.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.
MRC

PS prices to rise in April for Russian buyers

MOSCOW (MRC) - Prices for polystyrene (PS) and styrene plastics are expected to rise in the Russian market following the increase in Russian contract PS prices and imported material, as per ICIS-MRC Price Report.

Nizhnekamskneftekhim and Gazprom neftekhim Salavat announced April PS prices this week. Prices for high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) were risen by roubles (Rb) 2,000/tonne, including VAT.

A sharp increase in contracts for styrene in Europe was unexpected for the Russian market. The contract price of styrene monomer in April rose by EUR300/tonne, compared with the March level. Prices for PS and styrene plastics are expected to rise following the increase in prices monomer in Europe and Asia.

Styrolution on Wednesday announced its intention to raise the April contract prices for HIPS and GPPS by EUR315/tonne. Russian ABS prices were increased last week.

Plastik, Uzlovaya confirmed its plans to increase April prices. Traders of South Korean material also aimed to increase April prices on the price rise in foreign markets.

An exception may be the market of expandable polystyrene (EPS). Russian producers rolled over EPS prices for April delivery from March.
At the same time prices for imported material will grow.

Prices for popular among importers Finnish EPS by Styrochem production also will increase. In addition, the Chinese plant Loyal increased import spot prices for Russian buyers this week.

MRC

German government approves controversial fracking bill

MOSCOW (MRC) -- German cabinet has decided to allow shale gas fracking in Germany, but only under strict regulation and for testing purposes, reported Deutsche Welle.

Even so, lawmakers criticized the proposed bill for not being strict enough.

According to the government proposal, fracking should be prohibited in so-called sensitive regions such as nature parks or water bore areas, and in depths above 3,000 meters. However, the bill allows for exceptions such as scientific tests, and it does not eliminate the possibility of commercial drilling past 2018.

The public remains hostile to the plan, with environmentalists, unions and even churches criticizing the proposal. There is even strong resistance within the ruling coalition itself, which holds 504 out of 631 seats in the German parliament.

Fracking involves blasting a mix of water, sand and chemicals deep into layers of rock to release trapped oil and gas. Critics claim the process is damaging to the environment and could pollute the drinking water.

Federal environment minister Barbara Hendricks claims that the government does not intend to lift any bans.

"Just the opposite: plenty of things that were possible before, are now forbidden", she said at a press conference Wednesday.

At the same time, Hendricks positioned herself against a complete ban of fracking in shale, clay and coal, saying a total ban on a technology goes against principles of the German constitution.

"Whether or not this technology will someday be environmentally friendly, remains to be seen. It is possible to doubt whether Germany even needs it," she wrote in a letter to SPD and CDU lawmakers. "However, it's not our goal to permanently ban a new technology. Instead, our task is to eliminate the possibility of it endangering the health, lives, and the environment."

In addition, Hendricks pointed out that in future court disputes, citizens will no more need to prove that their property was damaged by mining. Instead, the drilling companies would have to prove that events like earthquakes are not related to fracking.

As MRC wrote previously, in July 2014, the German government wanted to ban hydraulic fracturing in shale rocks and coal beds at depths less than 3 kilometers (1.8 miles) and prohibit all types of fracking in water protection areas, according to Economy Minister Sigmar Gabriel and Environment Minister Barbara Hendricks. She said reporters then that the government would start drafting legislation and seek to adopt it in the second half. The rules will be re-evaluated in 2021.

Besides, we remind that BASF may undertake its single biggest plant investment to date, spending more than 1 billion euros (USD1.4 billion) to target cheaper US shale gas with a facility to convert methane to propylene used in coatings.
MRC

Pemex oil platform fire kills four in Gulf of Mexico, 302 evacuated

MOSCOW (MRC) - At least four people died after a fire broke out on a Pemex oil processing platform in the Gulf of Mexico early on Wednesday, leading to the evacuation of 302 workers, said Reuters.

The fire, which burned throughout the day, erupted overnight on the Abkatun Permanente platform in the oil-rich Bay of Campeche. Forty-five people were treated for injuries and 16 of them were hospitalized, two with serious injuries, Pemex said.

Eight firefighting boats had been brought in to battle the flames, Pemex said, noting that one of the fatalities was from the state-run giant and another was a contractor for Mexican oil services firm Cotemar. Two others have yet to be identified. The fire broke out in the dehydration and pumping area of the platform, and it was not yet clear what caused it, Pemex said. There was no oil spill, it said.

Pemex Chief Executive Emilio Lozoya estimated the impact on production would be small because other processing sites nearby would pick up the slack, a company spokesman said.

Part of the Abkatun Pol Chuc offshore complex, the damaged platform separates crude oil and gas from various wells to process around 40,000 barrels per day (bpd), work which has now been suspended, the Pemex spokesman said. Earlier in the day, the spokesman had said the platform produced oil. In total, the Abkatun Pol Chuc complex produces around 300,000 bpd. Output at the rest of the site was not affected.

Mexico is the world's No. 10 crude producer at just under 2.3 million bpd, down about a third from a peak of 3.4 million bpd in 2004. Pemex has had a number of accidents in recent years and the latest one comes as Mexico seeks to lure private investors to revive its flagging oil industry.

In 2013, at least 37 people were killed by a blast at Pemex's Mexico City headquarters, and another 26 people died in a fire at a Pemex natural gas facility in northern Mexico in September 2012.

Last year, Mexico finalized a reform to end Pemex's 75-year-old oil and gas monopoly, but expectations of a boom in private investment have been tempered by the plunge in global crude prices.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.
MRC