MOSCOW (MRC) -- Ineos Europe and Rex Energy Corp. said that they have concluded a new natural gas liquids (NGLs) sale and purchase agreement covering ethane, propane and butane, said the company on its site.
The NGLs will be transported through the Mariner East infrastructure and exported by sea to Ineos's European cracker complexes. Transportation of ethane supplies commenced in April 2016 while propane and butane supplies will start with the completion of Mariner East 2 pipeline in 2017.
"This contract adds to our supply portfolio providing for long-term sourcing of advantageously priced US natural gas liquids for our European crackers. We are excited about our new business relationship with Rex Energy and look forward to future opportunities between our companies," said David Thompson, CEO of INEOS Trading and Shipping.
"We are excited to begin this new relationship with INEOS," added Tom Stabley, CEO of Rex Energy. "With the new sales agreement, we will now have three different outlets to deliver our natural gas liquids volumes, both domestic and international. The new outlets will enhance the economics of our wells in the Butler Operated Area and our overall resource potential."
On March 23, Ineos confirmed that its vessel, the Ineos Intrepid, had arrived at its petrochemicals plant at Rafnes in Norway, carrying 27.500-m3 of US shale gas ethane. This was the very first time that ethane from US shale gas had ever been exported from the US, and the first time it has been imported into Europe.
Ineos says this plan gives the European continent the chance to benefit from US shale gas economics, which has helped to revitalize manufacturing in the US.
The project has been complex. It involves the design and long-term charter of all eight Dragon class ships (which collectively create a virtual pipeline across the Atlantic), connection of the new 300-mile Mariner East pipeline from the Marcellus shale in Western Pennsylvania to the Marcus Hook deepwater terminal near Philadelphia, and the creation of new export facilities and storage tanks. In total, Ineos has invested about USD2 billion in its plans to bring US shale gas to Europe.
Ineos says it is the first company to establish seaborne intercontinental ethane transportation, having earlier announced the completion of agreements with Sunoco Logistics for capacity in the Mariner East pipeline and terminal system, with Range Resources for the purchase of ethane, with Evergas for the construction of new customized vessels and with TGE Engineering for the construction of a new tank at its Rafnes cracker.
Ineos is currently constructing an ethane terminal in Grangemouth, Scotland.
INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC
PET chips, which are used for the production of bottles and partially films, traditionally account for the main share in the structure of imports. PET imports rose in January-March 2016 by 38% year on year, totalling 18,600 tonnes. Such a major increase was caused by the March figure. In March, imports of PET chips by Russian companies were almost 13,000 tonnes. Higher import purchasing was caused by a shortage of material in the domestic market, as well as by the companies' desire to build up inventories in anticipation of a rise in PET prices in Asia.
In particular, converters had difficulties with spot quantities in February. The Belarusian plant Mogilevkhimvolokno did not make shipments to the Russian domestic market. Russian producers of PET chips reported a shortage in the spot market. Covering the contractual obligations, companies refused some customers in the procurement.
The price factor also affected the purchasing volumes. The strengthening of the rouble at the beginning of the year led to a reduction in prices of imported PET, about which importers said in late February. At the same time, in early February, PET prices in Asia began to show an upward trend (due to rising prices of paraxylene at Asian refineries and higher prices of PTA), which was a good time for purchasing before the start of the season.
Such a sudden inflow of imports in March and the launch of PET production in Belarus might lead to excessive supply in the second half of April and weaker demand for Russian PET, some market players said.
The central part of Russia and companies in the West Siberian region accounted for the main shipments of bottle grade PET.
Deliveries of recycled PET surged by 53% in the first quarter. Total imports of PET flakes were 2,160 tonnes.
Importers were actively importing amorphous PET in the first quarter. Overall imports of amorphous PET totalled 1,900 tonnes in January-March 2016.
MRC
MOSCOW (MRC) -- The subsidiary of Tokyo-based Toppan Printing Co. Ltd. said the new site will produce transparent barrier films and is the first such location for the company outside of its home country, said Plasticsnews.
The 103,771-square-foot plant, the company said, is a significant enhancement in capacity to supply transparent barrier films to North, Central and South America and Europe."
Toppan USA said it will predominately make its GL Film brand in Georgia. Markets include food, drinks, medical care, pharmaceuticals and industrial materials.
As MRC informed earlier, Toppan Printing Co., Ltd. has developed Japan's first film for use in packaging materials that uses biomass polyethylene.
MRC