Petrochina expresses interest in Iraqs Nassiriya refinery

MOSCOW (MRC) — Petrochina has expressed interest in developing the Nassiriya oil refinery in southern Iraq, the oil ministry said in a statement on Friday, as per Reuters.

A Petrochina executive expressed the company’s interest at a meeting with Oil Minister Jabar al-Luaibi in Baghdad. The refinery is part of a larger project to develop the Nassiriya region’s oil and gas reserves.

The plan provides for increasing the fields’ output and the processing of their production at the new Nassiriya refinery, and to recover the associated gas to supply power stations or process it for exports.
MRC

AkzoNobel on way to doubling capacity at organic peroxides plant in China

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business has entered the next phase of a major expansion at its organic peroxides facility in Ningbo, China, which will increase production capacity by more than 100% by the third quarter of 2018, as per the company's press release.

The company’s Ningbo site produces dicumyl peroxide (DCP), an organic peroxide used as a crosslinking agent in the manufacture of polymers. Capacity at the site was boosted by 40% in August, following the completion of an initial project, and is set to double to a capacity of 38,000 tons per year.

"The market for DCP is strong and continues to grow globally," says Johan Landfors, Managing Director of AkzoNobel’s Polymer Chemistry business. "This new expansion is necessary to meet that demand, and is also a visible demonstration of the company’s continued commitment to invest in the future of the Specialty Chemicals business."

DCP is used in the production of a variety of polymers that need to have exceptional durability. These polymers can be found in many different products, including shoe soles – a market which is growing significantly, especially in developing countries. DCP is also used in polymers for insulating high voltage cables, which are increasingly in demand for upgrading electricity networks, connecting offshore wind parks and other sources of renewable energy.

"The continued development in Ningbo is a clear sign to our customers that we are dedicated to retaining our leadership position in the organic peroxides industry," adds Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Specialty Chemicals. "By continuing to invest in our production sites and focusing on operational excellence, we will be better positioned to accommodate the growth of our customers."

More than 500 people are employed at the Ningbo site, which houses manufacturing plants for several of AkzoNobel’s Specialty Chemicals businesses. AkzoNobel’s Ningbo DCP plant is the largest of its kind in the world.

As MRC informed before, in Decmeber 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings. The transaction includes relevant technologies, patents and trademarks, as well as two manufacturing plants in the United Kingdom and South Africa. Completing this transaction also positions AkzoNobel as a full service coatings provider for the protection and maintenance of wind turbines, providing essential protection to wind power stations around the globe.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

Lukoil chief says sanctions may last a decade

MOSCOW (MRC) -- Sanctions against Russia are likely to stay in place for at least the next 10 years, the country’s second-largest oil company has said, at a time of sharply deteriorating relations between Moscow and the west, as per FT.

Russian oil and gas companies should prepare for long-term restrictions, Lukoil’s chief executive said, while also backing the extension of a deal between Russia and Opec to reduce crude output if oil prices fall below USD50 a barrel.

"Our current strategic plan for the next 10 years is that sanctions will remain in place," Vagit Alekperov told the Financial Times. "I don’t perceive that sanctions will be removed in the coming years, and even (when they are) it will be a lengthy and very complicated process."

Mr Alekperov is Lukoil’s largest shareholder and owns about a quarter of the shares, having founded the company from state oil assets during the break-up the Soviet Union. With daily production of 1.8m barrels, it is Russia’s largest private oil producer and second only to Kremlin-controlled Rosneft.

Washington, Brussels and other western capitals have imposed financial and technology-sharing sanctions on many Russian energy companies, including Lukoil, in response to Moscow’s 2014 invasion of Ukraine and annexation of Crimea.

Despite hopes in Moscow that Donald Trump’s entry into the White House would usher in better relations, allegations of Russian interference in the 2016 election have only increased distrust between the two countries.

"Three years ago I was in Washington and met the gentleman in charge of the US sanctions department. That was at the beginning of the events related to Ukraine," Mr Alekperov said in an interview. "And he said: 'If Russia does this and that, then we will do that and this'. And so I told him: ‘My country is never going to leave you unemployed."

The 67-year-old praised a landmark agreement between oil cartel Opec and Moscow last year that cut oil output and helped raise crude prices to about USD55 a barrel, describing it as a “new instrument that has been established that can impact the (oil) price, a control system".

Mr Alekperov echoed remarks by Russian president Vladimir Putin last week that the deal could be extended past its March 2018 expiry date.

“If the price is less than USD50, then we must go for an extension. If it is USD55, then there is no need. Just a gradual withdrawal," he said.

“The most important thing for now is to not allow another time of $100 a barrel, that would be major trouble for the industry. We want to have a predictable level of USD55-USD60 at least for the 10 years to come and keep both consumers and producers happy."

As MRC informed earlier, in February 2017, The Antimonopoly Committee of Ukraine gave permission for the mediated purchase of plant Karpatneftekhim from the Russian group Lukoil to the Ukrainian. The Antimonopoly Committee gave permission for the purchase of a 75% stake in Lukoil Chemical B.V. (Netherlands), which owns 100% of LLC "Karpatneftekhim" (Kalush, Ivano-Frankivsk region).

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. Lukoil structure includes one of the largest Russian petrochemical plant - Stavrolen.
MRC

Solvay introduces advanced UV stabilizer for thermoplastic polyolefin and reinforced plastics

MOSCOW (MRC) -- Solvay has presented its latest stabilization technology, CYASORB CYXTRA V9900 stabilizer to enable TPOs and reinforced plastics to meet government mandates for increased fuel economy and reduced CO2 emissions, as per the company's press release.

The new regulations have created greater demand by the automotive industry for these materials to satisfy increasingly stringent performance requirements for weatherability.

Solvay’s next-generation CYASORB CYXTRA V9900 stabilizer meets all worldwide automotive UV weathering specifications. It also surpasses key automotive requirements such as low VOC emission, low fogging, low odor, and no interference with paint adhesion, and it provides a lower "cost-to-stabilize" benefit.

"The US Corporate Average Fuel Economy (CAFE) standard increases the mileage of new car models from 39 to over 50 miles per gallon by 2025, while in Europe OEMs must reduce CO2 emissions for new cars to 95 g/km on average from 2020," said Andrea Landuzzi, Global Marketing Director, Additive Technologies, for Solvay’s Technology Solutions global business unit. "The automotive industry is quickly turning to TPOs and CFRP to help them develop lighter, more fuel efficient automobiles with lower emissions.Solvay is committed to proactively engaging with our customers to understand their product specifications and help them - through our additive technology - to translate those specifications into successful products and applications."

While many stabilizers commercially available today offer some level of plastic protection, Solvay’s advanced CYASORB CYXTRA V9900 stabilizer takes protection a step further by delivering an optimal balance of processing and cost efficiencies with a high degree of performance durability, making it possible to deliver advanced solutions for plastics to meet tomorrow’s needs today.

CYASORB CYXTRA V9900 stabilizer joins Solvay’s world-class UV stabilizer portfolio, which includes CYASORB CYNERGY SOLUTIONS V Series stabilizers that protect the physical properties and aesthetics of automotive TPOs against UV light exposure, extreme temperatures and other environmental factors. These advanced stabilizer solutions can enhance TPO performance in a broad range of automotive applications, including bumpers, door panels, seat back covers, pillar moldings, door trims, instrument panels, head and side impact areas, fender liners and flares, tail light housings and cowl vents.

As MRC informed earlier, in late 2016, Solvay completed the sale of its 70.59% stake in Solvay Indupa to Brazilian chemical group Unipar Carbocloro, following the approval earlier this month of the Brazilian antitrust authority CADE.

Besides, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March this year.

Solvay is headquartered in Brussels with about 27,000 employees spread across 58 countries. It generated pro forma net sales of EUR10.9 bn in 2016, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

Total enters the petroleum product retail sector in Mexico

MOSCOW (MRC) -- Total has entered into an agreement with GASORED, a group of service station owners, to rebrand a network of around 250 service stations in and around Mexico City under the Total brand, asper Hydrocarbonprocessing.

Present in Mexico since 1982, Total is aiming to capitalize on the deregulation of the country’s fuel sales and supply market to significantly expand its activities there. “We are pleased with this commercial agreement with GASORED. Strengthening our presence in Mexico, Latin America’s second-largest market for petroleum products, is in line with our strategy of enlarging our network in growth regions,” said Momar Nguer, President of Marketing & Services at Total.

The first Total-branded stations will open by the end of the year, with deployment continuing in 2018 and 2019. The Total-branded outlets will offer consumers and business customers the company’s full lineup of fuels and lubricants, as well as a broad range of products and services.

As MRC informed before, The Linde Gases Division in Germany and Total Raffinerie Mitteldeutschland based in Leuna are extending their existing partnership by a further 15 years. Signed in Leuna in June 2017, the contract is worth approximately EUR 1 billion and is due to take effect on 1 January 2018. This new deal propels the two-decade partnership between both companies towards a long-term future.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC