Lifting of Iranian sanctions poses no threat to operations of Sabic

MOSCOW (MRC) -- Saudi Basic Industries Corp. (Sabic), one of the world's largest petrochemicals groups, can adapt to any new supply of petrochemicals entering the market as a result of Iran’s release from sanctions, said Yousef Abdullah al-Benyan, Sabic’s acting chief executive, according to GV.

Because product prices are closely linked to crude prices, Saudi petrochemical companies have been negatively hit by dropping oil prices. Additionally, the drop in prices has impacted the competitive advantage Saudi producers have held over non-oil producing countries due to subsidized energy and feedstock, media reports noted. The pressure could be further amplified with the reintroduction of Iranian oil to global markets.

Speaking at a news conference, Benyan said he was unclear as to the current state of Iran’s petrochemical industry. Generally, it takes three to five years to come to market, start production and then ramp it up. "A competitive environment is always healthy and this is the way we love to play, so we have no concerns at all," Benyan stated.

As MRC reported before, Sabic has reported a 29.4% drop in fourth-quarter 2015 net profit due to lower prices for its products, particularly in its metals division. It was the sixth straight quarter of falling profits for the company, which has been hurt by the fall in oil prices since mid-2014. Sabic made a net profit of 3.08 billion riyals (USD821 million) in the three months to Dec. 31, down from 4.36 billion riyals in the year-earlier period.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

Qapco and Qatar University renew agreement for polymer research

MOSCOW (MRC) -- Qatar University (QU) and Qatar Petrochemical Company (Qapco), one of the leading petrochemical powerhouses in the region, have announced the renewal of the Qapco Polymer Chair at Qatar University, as per GV.

Based in QU’s Centre for Advanced Materials (CAM) and chaired by Prof Igor Krupa, the Chair focuses on research activities revolving around material science and engineering, polyolefin, and polymer nanotechnology, and involving Qapco’s main product, polyethylene and other by-products.

In particular, Krupa and his team pursue research on polyolefin processing and advanced characterization. They also work closely with the Qapco research and development (R&D) team to explore the development of novel applications related to biodegradable plastics and polymer-based composite materials.

QU president Dr Hassan Rashid al-Derham highlighted the importance of collaboration between QU and Qapco, which is a main partner to the university. He said: "The collaboration between both institutions for the renewal of the Qapco Polymer Chair at QU Centre for Advanced Materials will contribute to developing research activities in materials science and engineering, and will ensure the exchange of scientific and practical knowledge between students and researchers. It will also provide faculty and students at QU with the opportunity to develop their abilities and skills in this scientific field, and will encourage the establishment of new research programs which will facilitate research processes in the future."

Qapco managing director and CEO said: "Polymer research and innovation is a strategic priority for Qapco because it creates new applications for polyethylene products and stimulates the development of advanced technology and skilled jobs from the laboratory to the classroom. As we advance towards our vision of prosperity through innovation, we leverage our expertise in polymer science to support programs that deliver direct value to Qatar through support of the Qatar National Vision 2030. Through our effective and prolific collaboration with Qatar University and CAM, our teams advance material science knowledge transfer and education and encourage sustainable, made-in-Qatar ground-breaking discoveries."

CAM director Prof Mariam al-Ali al-Maadeed appreciated Qapco for the renewed sponsorship of the Polymer Chair, which she said has led to the setting up of a number of teaching and research activities focusing on various aspects of material science, engineering, and nanotechnology, which resulted in to many published papers, patent application, and projects.

A number of applied research projects have resulted from the Qapco Polymer Chair and several research papers co-authored by CAM and Qapco R&D teams have been published in international scientific journals.

Patent applications are also being considered as a part of the research collaboration outcome. In particular, the development of polyolefin based plastic heat absorbers for energy management in bioclimatic buildings; and the development of plasma and other surface treatment methods to improve adhesion of polyethylene packaging resins are evidence of the successes of the research collaboration between the two institutions.

The renewal of the Qapco Polymer Chair at Qatar University further strengthens industry-academia collaboration between QU and Qapco, and is positioned as a catalyst for value creation through resource optimization. This envisioned research collaboration is set to have a far-reaching impact in Qatar and beyond.

As MRC informed before, in 2013, Qapco signed a license agreement with Union Carbide Chemicals & Plastics Technology LLC, a wholly owned Subsidiary of The Dow Chemical Company, for UNIPOL polypropylene process technology. The QP/QAPCO facility is to be the first polypropylene plant in Qatar. UNIPOL PP Process Technology positions polypropylene manufacturers to meet and exceed increasing demand for high quality polypropylene.
MRC

PPG announces executive appointment

MOSCOW (MRC) -- PPG announced Anne M. Foulkes, currently assistant general counsel and secretary, has been named vice president, associate general counsel and secretary, effective March 1, said the company on its press release.

Foulkes will continue in her role as corporate secretary, which she has held since 2011, providing direction and support to senior management and PPG’s board of directors on matters such as corporate governance and securities law. In her role as associate general counsel, she will lead legal support for many of PPG’s businesses in areas including commercial, litigation, transaction and intellectual-property matters.

Foulkes is also executive sponsor of PPG’s Diversity and Inclusion Leadership Council. During her career at PPG, Foulkes has provided legal support in areas such as commercial, competition and environmental law and litigation, in addition to managing legal support for South America and acting as secretary to the Global Ethics and Compliance Committee.

As MRC informed earlier, in the late December 2015, PPG Industries also announced two executive appointments.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2014 were USD15.4 billion.

MRC

Orpics shut Sohar refinery in Oman

MOSCOW (MRC) -- Oman state refiner Oman Oil Refineries and Petroleum Industries Company (Orpic) has shut its Sohar refinery for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Oman informed that the refinery was taken off-stream on 23 February and it is likely to remain shut for a period of around 2 months.

Located at Sohar in Oman, the refinery has a crude processing capacity of 117,000 bpd.

We remind that, as MRC wrote before, in 2014, Orpic selected LyondellBasell's Spheripol polypropylene process technology for a new 300,000 tpy polypropylene (PP) plant to be built in Sohar, Sultanate of Oman. Start-up of the Liwa plastics project is planned for 2018.

Besides, in May 2014, Orpic said it had awarded two contracts for construction of a USD3.6 billion plastics production complex, the Liwa Plastics Project. The plant will be built in Oman's northern industrial city of Sohar, next to Orpic's oil refinery and petrochemical plants. The Liwa Plastics Project is due to be completed in 2018, doubling Orpic's profitability by allowing it to extract more value from Omani crude oil and natural gas.

The project will boost Orpic's annual production of PP and polyethylene (PE) to 1.4 million tonnes, increasing Oman's exports, while additional production of 1 million tonnes of plastics will help to develop downstream industries within the country.

Orpic (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

Westlake Chemical Partners slips 2% as Q4 results miss expectations

MOSCOW (MRC) -- Westlake Chemical Corp. released its fourth-quarter earnings report. The company had USD0.84 in earnings per share (EPS) on USD986.8 million in revenue, versus Thomson Reuters consensus estimates of USD0.99 in EPS on revenue of USD1.03 billion, said the Wall Street Journal.

In the same period of the previous year, it posted EPS of USD1.40 and USD1.14 billion in revenue.

In the fourth quarter, the Olefins segment reported income from operations of USD138.7 million, a decrease of USD104.9 million compared to USD243.6 million in the same period from last year.

At the same time, the Vinyls segment reported income from operations of USD51.6 million, compared to income from operations of USD66.3 million in the fourth quarter of 2014, a decrease of USD14.7 million.

Net cash provided by operating activities was USD1.08 billion in 2015. Capital expenditures for 2015 were USD491.4 million. At the end of December 2015, cash and marketable securities totaled USD1.18 billion, compared to USD880.6 million in the same period from last year.

As MRC informed earlier, Axiall Corp, a U.S. chemical and building products maker, said it had rejected Westlake Chemical Corp's USD1.4 billion cash-and-stock offer, dismissing it as an attempt to scoop up its vinyls assets on the cheap. Westlake, a Houston-based manufacturer and supplier of petrochemicals, polymers and building products, had argued that the combined company would be more diversified and have a stronger financial profile than Axiall on its own.

Westlake Chemical Corporation is a U.S. manufacturer and supplier of petrochemicals and polymers, headquartered in Houston, Texas. The range of company's products includes ethylene, polyethylene, styrene, propylene, caustics, polyvinyl chloride and plastic products. Westlake is one of the major ethylene producers in the US and its Calvert City operation is a large integrated PVC site.
MRC