Qatari investors ink USD5 bln deal for 49% stake in Shandong Dongming Petchem stake

MOSCOW (MRC) -- Qatar's Qatra for Investment & Development (QID Group) and Hamad Bin Suhaim Enterprises have signed an initial deal to acquire 49 percent of China's Shandong Dongming Petrochemical Group worth USD5 billion, said Reuters, citing executives from the firms.

The deal is expected to be finalised by the forth quarter of this year, with the cash used to finance a number of projects that Shandong is currently working on, Ibrahim El-Tinay, chief executive of QID, told reporters at a press conference in Doha.

"These projects will include building 1,000 petrol stations across six provinces in China and a liquefied natural gas (LNG) terminal with a 3 million ton per annum capacity in the region of Qinzhou," he said.

Once the acquisition deal is finalised then completion dates for these projects will be set, El-Tinay added. How the USD5 billion investment would be split between the two Qatari investors was not disclosed.

The stations will be built in a 300-kilometre radius of the company's Heze refinery in Shandong province in eastern China, which would provide a third of its output as supply to the stations, according to a joint statement from the three parties.

The LNG terminal will be built in the municipal region of Qinzhou in southern China and will include the construction of a terminal, jetty, regasification facilities and storage.

"Following the construction of this terminal, we hope that Qatar will have the priority in providing it with supplies," El-Tinay added.

China's natural gas demand grew by 5.6 percent last year to 178.6 billion cubic metres (bcm). Of that demand, 127.9 bcm was supplied by domestic sources, while 57.8 bcm was imported by pipeline or as LNG.

As MRC informed earlier, Qatar Petroleum and Shell have decided not to proceed with the proposed Al Karaana petrochemicals project, and to stop further work on the project. The decision came after a careful and thorough evaluation of commercial quotations from EPC (engineering, procurement and construction) bidders, which showed high capital costs rendering it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry.

MRC

MOSCOW (MRC) -- Japanese oil refiner Idemitsu Kosan Co has announced a two month delay in its original plans to shut the 414,000 tpa naphtha cracker at Chiba, as per Congoo.

Maintenance at the plant was scheduled for early April, but has been deferred to early June 2015. The move comes in line with government regulations introduced in July to require oil distributors to lower their capacity effectively by 10 pct by the end of March 2017.

Idemitsu said that further cuts to its refining capacity totalling some 35,000 bbl/day are planned, although it did not outline further details about those cuts.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, today announces it has finalized the acquisition of Aland, a Hong Kong-based company producing vitamin C in mainland China, said the producer in its press release.

The acquisition was announced on 11 July 2014.

As MRC informed earlier, Royal DSM, the Life Sciences and Materials Sciences company, and CVC Capital Partners (CVC), one of the world’s leading investment advisory firms, has announced a partnership for DSM’s activities in Polymer Intermediates (caprolactam and acrylonitrile) and Composite Resins through the formation of a new company, provisionally called NewCo.

Aland was founded in 1990 and is one of the leading Vitamin C manufacturers in China. It has a production facility in Jingjiang, Jiangsu Province in China. In 2014 the company realized net sales of about USD 110 million in vitamin C with around 1,800 employees. The transaction excludes Aland’s consumer health activities.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- The Saudi International Petrochemical Company (Sipchem) has announced commercial operation of the ethylene vinyl acetate (EVA) and low density polyethylene (LDPE) plant of the International Polymers Company (a Sipchem affiliate), reported Sipchem on its site.

The commercial operation were planned to commence at the company's complex in Jubail Industrial City (Saudi Arabia) as of 1 Wednesday, 2015, after successful completion of testing the plant equipment and ensuring its efficiency, production capacity and products quality.

As MRC informed previously, on July 26, 2014, Sipchem commenced trial runs at a new EVA/LDPE swing plant in Saudi Arabia. The plant has a production capacity of 200,000 mt/year.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an increase of Rb1,500-4,100/tonne in contract prices of polypropylene (PP) and low density polyethylene (LDPE), according to ICIS-MRC Price report.

The company's customers said starting from 1 April, LDPE prices of the plant's LDPE rose by Rb4,000-4,100/tonne from the level as of 15 March, whereas PP prices grew less significantly, an increase was Rb1,500/tonne for the whole range of polymers of propylene.

The rise in PE and PP prices was caused by stronger demand from converters and the plant's limited production capacity.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company was incorporated in 1984. United Petrochemical Company owns 87.76% of Ufaorgsintez's capital. Bashneft sold Ufaorgsintez to United Petrochemical Company in May 2013.

According MRC ScanPlast report, the overall plant's PE and PP totalled 16,100 tonnes and 21,000 tonnes, respectively, in January and February 2015.
MRC