Petro Rabigh takes ownership of Phase II, signs financing agreements with lenders

MOSCOW (MRC) -- Rabigh Refining & Petrochemical Co. (Petro Rabigh) has received ownership of the Rabigh Phase II project from Saudi Aramco and Sumitomo Chemical, major shareholders in Petro Rabigh, and will now integrate the project into Petro Rabigh's existing refining and petrochemical complex in Rabigh, Saudi Arabia, reported GV.

The Rabigh II project, expected to cost about USD 8.1-billion, involves expanding an existing ethane cracker and adding production of ethylene propylene rubber, thermoplastic polyolefins, methyl methacrylate monomer, polymethyl methacrylate, low-density polyethylene/ethylene vinyl acetate, paraxylene/benzene, cumene and phenol/acetone. Production facilities are expected to begin operations "one after another, beginning in the first half of 2016," Sumitomo said.

In addition to the ownership transfer, Petro Rabigh has signed project financing agreements, totaling approximately USD 5.2-billion, with a syndicate of banks to help finance the Rabigh II project.

Petro Rabigh will receive about USD 2-billion in financing from the Japan Bank for International Cooperation and USD 1.3-billion from Saudi Arabia's Public Investment Fund, both of which are governmental financial institutions.

Funding will also come from a group of 19 financial institutions from Japan, Saudi Arabia, Europe and the US.

"The project, which will utilize state-of-the-art technologies from Sumitomo Chemical and other companies, will seek to maximize synergies with the Rabigh Phase I project," Sumitomo noted.

As MRC informed earlier, in 2010, Petro Rabigh signed an agreement with Tasnee and Saudi Advanced Industries (SAIC) for the supply of propylene oxide to the joint venture for the production of polyether polyol. The plant is located in Rabiga, in the west of Saudi Arabia on the Red Sea.

PetroRabigh, a joint venture between Saudi Aramco and Japan's Sumitomo Chemical, has an annual output capacity of 18 million tonnes of refined products and 2.4 million tonnes of petrochemicals. Thus, the complex currently has a cracker to produce 1.3-million t/y of ethylene and 900,000 t/y of propylene, as well as downstream production of polyethylene, polypropylene, propylene oxide, ethylene glycol and butene-1.
MRC

MOSCOW (MRC) -- Specialty chemical company Ashland Inc. plans to invest about USD89 million over the next three years to expand its manufacturing operation in Hopewell, Virginia, the US-based specialty chemicals firm said.

The plant makes a range of cellulosics for food, pharmaceuticals and cosmetics, as well for oilfield and building and construction applications.

The majority of the investment will be aimed at expanding production of two key product lines. Ashland said it would increase production of Natrosol hydroxyethylcellulose, used as a thickener in latex paints, by 4,700 metric tons, or by about 40 percent.

The company also will expand capacity for Klucel hydroxypropylcellulose, a high-value technology used to enable time-release delivery in pharmaceutical tablet binders and coatings and other applications, by about 50 percent.
The plant expansion is expected to begin this summer.

As MRC informed earlier, Ashland Inc. and Lion Copolymer Holdings, LLC, announced they have reached a definitive agreement under which Lion Copolymer will purchase Ashland's elastomers business based in Port Neches, Texas.

Ashland Specialty Ingredients is the leading global producer of cellulose ethers and a global leader in vinyl pyrrolidones. It offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Using natural, synthetic and semisynthetic polymers derived from plant and seed extract, cellulose ethers and vinyl pyrrolidones, as well as acrylic and polyurethane-based adhesives, Specialty Ingredients offers comprehensive and innovative solutions for today's demanding consumer and industrial applications. Key customers include: pharmaceutical companies; makers of personal care products, food and beverages; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies.
MRC

MOSCOW (MRC) -- US production of major plastic resins totaled 6.1 billion pounds during February 2015, an increase of 6.8 percent compared to the same month in 2014, said Hydrocarbonprocessing, citing the American Chemistry Council (ACC).

Year-to-date production was 12.4 billion pounds, a 2.5% increase as compared to the same period in 2014.

Sales and captive (internal) use of major plastic resins totaled 6.1 billion pounds during February 2015, an increase of 4.5% from the same month one year earlier.

Year-to-date sales and captive use was 12.3 billion pounds, a 0.7% decrease as compared to the same period in 2014.
MRC

MOSCOW (MRC) -- SIBUR-Khimprom and Plastik (Uzlovaya) will ship the expandable polystyrene (EPS) in April at March prices, according to ICIS-MRC Price report.

Companies have rolled over contract prices. In addition, as reported earlier, SIBUR raised its April export EPS prices by USD120-130/tonne.

According to ICIS-MRC Price report, Plastik (Uzlovaya) increased its contract prices of acrylonitrile-butadiene-styrene (ABS) by Rb3,000/tonne, including VAT, for shipments to the domestic market in April.

SIBUR-Khimprom specializes in the processing of liquid hydrocarbons and production of a variety of petrochemical products, including styrene and expandable polystyrene (EPS). SIBUR-Khimprom started production of EPS of Alphapor grade in 2010.

JSC "Plastik" (Uzlovaya, Tula region) is a manufacturer of ABS-plastics and suspension polystyrene. Among other products, the plant's technological complex includes styrene production with the capacity of 60,000 tonnes per year and EPS production with the capacity of 11,300 tonnes per year. The plant's ABS production is 23,000 tonnes per year.
MRC

MOSCOW (MRC) -- South Korean petrochemical company LG Chem is in plans to shut a polyethylene (PE) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in mid-April 2015. It is expected to remain off-stream for around one month.

Located at Daesan in South Korea, the plant has a production capacity of 145,000 mt/year.

As MRC wrote previously, LG Chem is in plans to shut a styrene monomer (SM) plant in South Korea for maintenance turnaround in April 2015. It is likely to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a production capacity of 500,000 mt/year.

Besides, LG Chemical shut down its polypropylene (PP) plant for maintenance turnaround in late March 2015. It is expected to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a production capacity of 600,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC