Maire Technimont signs USD800 million revamp contract with SOCAR

MOSCOW (MRC) -- Maire Tecnimont S.p.A. has announced that its main subsidiaries Tecnimont S.p.A. and KT-Kinetics Technology S.p.A. - have signed with the Client SOCAR (State Oil Company of Azerbaijan Republic) Heydar Aliyev Baku Oil Refineryan EPC contract (Engineering, Procurement and Construction)as an important part of the execution of the Modernization and Reconstruction works for the Heydar Aliyev Baku Oil Refinery, in Azerbaijan, as per Hydrocarbonprocessing.

Overall contract value equals to approximately USD 800 million.

The scope of the project entails the installation of several new grass root process units, the relevant utilities and storage with the final aim to upgrade the refinery facilities to be capable of processing 7.5 MMTPA of crude oil, while meeting quantity and quality requirements of products both to feed Azerikimya revamped petrochemical plant and to produce Euro V quality automotive transportation fuels. Among the new process units in the scope it is worth mentioning a Naphtha Splitter, a Diesel Hydrotreater Unit, an Isomerization Unit, a Hydrogen Production Unit, two PSA Units, a C4 Hydrogenation Unit, a MTBE Unit, a Sour Water Stripper Unit with Sulphur Recovery Unit.

Process technologies involved are coming from the major refining Licensors including KT-Kinetics Technology, part of Maire Tecnimont Group.

The project is expected to be completed within 41 months from the signing date.

The project is a major milestone for Maire Tecnimont Group’s Oil & Gas business since it represents a flagship award in downstream refining. Moreover, it confirms the orientation of the Group to leverage its distinctive competencies, technological know-how and synergies between its EPC contractors.

Pierroberto Folgiero, Maire Tecnimont Chief Executive Officer, commented: "After our two strategic petrochemicals projects in Azerbaijan, this contract enables Maire Tecnimont Group to consolidate the fruitful relation with SOCAR also in the refining business, supporting the strategy of integration with the petrochemical business. We are truly honored to keep on supporting such a prestigious client in the development of the Country’s hydrocarbons downstream sector."

Rovnag Abdullayev, President of SOCAR, said: "Today we made one more step toward the production of high-quality diesel, gasoline and other fuels of Euro-5 standards. Maire Tecnimont is one of the global leading companies. Cooperating with the world’s leading companies will enable us to supply high-quality fuel to Azerbaijan’s domestic market and increase the export revenues in the years ahead."

As MRC informed before, Italian Maire Technimont and Azerbaijan’s SOCAR-Polymer signed an EUR350 mln-agreement on construction of Sumgayit polypropylene (PP) plant at the Azerbaijan-Italy business meeting on 15 April, 2015.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan

MOSCOW (MRC) -- Some traders increased prices for polypropylene (PP) in mid January in the Russian market. Other suppliers also announced roubles (Rb) 2,000/tonne increase in PP prices from 1 February, as per ICIS-MRC Price Report.

PP prices have rapidly increased in the foreign markets since January, which affected the Russian market. SIBUR, which sells PP from its four subsidiaries, announced a 2,000/tonne increase in homopolymer PP prices since mid January. Other Russian producers have announced similar increases in PP prices, effective from 1 February.

PP demand was low due in January on the back of the seasonal factor, and this circumstance limited the growth of prices in the market. The first days of February also do not show an increase in demand, and new prices for polypropylene are taken quite seriously by converters. Moreover, there is a small excess of supply in the market, in particular homopolymer PP.

Some suppliers announced February price offers for Russian homopolymer PP raffia in the range of Rb91,000-93,500/tonne CPT Moscow, including VAT. The low end for homopolymer PP was at Rb92,000/tonne CPT Moscow, including VAT, on average up by Rb2,000/tonne from the January level.

Supply of extrusion PP block copolymers and injection moulding PP random copolymers remained tight in the market of copolymer propylene market. Some producers planned to increase the supply of the extrusion PP block copolymers by the middle of February in the domestic market, while the situation with injection moulding PP random copolymers will improve not earlier than in March.
MRC

MOSCOW (MRC) -- With less than a month to go until Opening Ceremony, the PyeongChang Organizing Committee for the 2018 Olympic and Paralympic Winter Games is gearing up to host the world in February 2018 for the Olympic Winter Games PyeongChang 2018. A range of technology solutions from The Dow Chemical Company were used in several venues, including Modular Houses and the Olympic Village, according to GV.

Dow’s solutions were applied to help reduce energy usage while making accommodations comfortable for athletes, attendees, media and drivers.

With average February temperatures just above freezing, effective insulation is essential in PyeongChang. Polyisocyanurate (PIR) panels incorporating Dow Papi polymeric MDI are used to insulate the walls and roofs of the Modular Houses that will accommodate drivers, who will be responsible for transporting people around the Olympic host city. The Modular Houses are built from manufactured panels consisting of boards, insulation and foam. Constructed within hours, rather than days, for less than half the usual cost, these energy-efficient structures help protect the environment as they require roughly half the energy compared to standard EPS (expanded polystyrene), and are 98 % recyclable, said Dow.

Finally, the Modular Houses have been weather-sealed with durable, fire-resistant Dow Corning 1001 Perimeter Silicone Sealant, which is inherently impervious to damaging ultraviolet (UV) light from sun, and, when cured, is stable at temperatures from -40 C (-104 F) to 150 C (302 F).

"We’ve worked with South Korean partners such as SY Panel to create the next generation of cost-effective, sustainable Modular Houses using state-of-the-art insulation technology," said Phillip Oh, Asia-Pacific commercial director for Dow Olympic & Sports Solutions. "Here at PyeongChang 2018, it is making a big impact on the built environment."

Housing in the Olympic Village is also weather-sealed using Dow Corning 1001 Perimeter Silicone Sealant. The finishing on the interior walls will combine three different Dow technologies, to create a wall putty that leaves a smooth, durable wall surface ready for painting: Acrysol rheology modifiers to help create a high-performance rheology profile; water-based Primal acrylic low VOC and low odor emulsion polymers to offer water whitening resistance, improved washability, and enhanced film formation; and Walocel cellulosic will facilitate a variety of desired performance characteristics, including good adhesion, extended durability and open time and lower maintenance costs, said the company.

In addition, Dow said that it is also contributing to a more comfortable sleeping environment: Some of the mattresses in the Olympic Village employ Dow Voranol technology in the slab foam to help the athletes get the quantity, and quality, of sleep that they need. Outside of the Olympic Village, Voranol technology is also employed in a number of mattresses in hotels across the host city.

"By collaborating with Alfome we are able to help offer athletes the foundation for a good night’s rest by contributing to a more comfortable sleeping environment," said Oh. "Voranol technology helps improve foam shape upon compression to create comfortable, breathable, flexible mattresses that stay cool to the touch and with reduced odor and emissions."

Dow is a subsidiary of DowDuPont Inc., a holding company comprised of Dow and DuPont with the intent to form three independent, publicly traded companies in agriculture, materials science and speciality sectors.

We remind that, as MRC wrote previously, as part of DowDuPont Materials Science Division’s ongoing commitment to provide customers with greater access to expertise and products, the company announced in January 2018 that the technologies of Dow Corning Polyurethane Additives (PUA) will be incorporated into the Dow Polyurethanes portfolio under the Vorasurf polyurethane additives brand name. Vorasurf polyurethane additives will serve the ComfortScience, InsulationScience and DurableScience markets of Dow Polyurethanes, helping to meet growing demand for products like bedding, spray foam and footwear.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Royal Dutch Shell could usurp its largest rival Exxon Mobil as the energy sector's biggest cash generator after higher oil and gas prices combined with an improved performance lifted its 2017 revenue, reported Reuters.

Chief Executive Ben van Beurden has made no secret of his desire to challenge the dominance of the world's largest listed oil company after its USD54 billion purchase of BG Group in 2016 catapulted Shell into second place in terms of production.

The Anglo-Dutch company on Thursday reported a more than doubling of profit in 2017 to USD16 billion, the highest since the start of the 2014 downturn as the effect of years of costs cuts and the integration of BG Group filtered through. "We enter 2018 with continued discipline and confidence, committed to the delivery of strong returns and cash," van Beurden said in a statement.

Cash flow from operations in 2017 rose to USD35.65 billion from USD20.62 billion a year earlier, putting Shell on course to beat Exxon, which is forecast to have generated USD32.6 billion in 2017, according to estimates by Jefferies analysts. Exxon reports earnings on Friday. Shell's shares were however 1.5 percent lower at 1200 GMT, compared with a 0.16 decline in the FTSE 100 index, as its fourth quarter cash flow was lower than anticipated by analysts. The cash growth was driven by a sharp recovery in oil prices in the second half of 2017, as the benchmark Brent price reached a three-year high of USD70 a barrel. But it was also due to a sector-wide drive to reduce costs to adapt to a world of "lower for longer" oil prices, as Shell and others cut thousands of jobs, lowered spending and brought in new technology to simplify field designs and operations.

As a result Shell can now generate more cash than it did with oil prices above USD100 a barrel and in November it raised its cash flow outlook from USD25 billion to USD30 billion by 2020, assuming an oil price of USD60 a barrel. Free cash flow - cash available to pay for dividends and share buybacks - rose to USD27.6 billion from a negative USD10.3 billion in 2016.

"We expect them to keep driving up efficiencies and reducing break evens to make it resilient and fit for the future. The BG deal seems to be paying off and the rationale for it is being proved right," Rohan Murphy, energy analyst at Allianz Global Investors, said.

Shell in the fourth quarter scrapped its scrip dividend, in a sign that it is confident of being able to maintain around USD15 billion in annual dividend payments without resorting to scrip or borrowing after a three-year oil price downturn. Van Beurden said the company planned to start a three-year, USD25 billion share buyback program, "as soon as possible" as the company focuses first on reducing debt.

Shell's oil and gas production in the fourth quarter rose from the previous quarter to 3.756 million barrels of oil equivalent per day (boed) from 3.657 million boed, but on a yearly basis, it fell 4 percent as a result of asset sales. Production was expected to come down by 270,000 boed in 2018 as a result of divestments, including the sale of a North Sea portfolio to Chrysaor and its stake in Woodside Petroleum.

But Shell also plans to double its shale production in the United States, Canada and Argentina in the next 5-10 years from the current 275,000 barrels per day, Chief Financial Officer Jessica Uhl said.

Capital expenditure in 2017 was USD24 billion, slightly lower than the USD25-USD30 billion range Shell set until 2020.

Shell's fourth-quarter profit, based on a current cost of supplies (CCS) and excluding identified items, rose by 140 percent to USD4.3 billion, slightly ahead of forecasts. Shell said its gearing dropped to 24.8 percent from a peak of 29.2 percent in the third quarter of 2016 as it cut its debt to USD74.65 billion. And while it took a ISD2 billion charge due to new U.S. tax rules, Shell expects a longer-term boost.

As MRC wrote before, in March 2016, Royal Dutch Shell Plc was lining up assets for a USD30 billion divestment program that may extend from the U.S. and Trinidad to India following its record takeover of BG Group Plc.

Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".
MRC

MOSCOW (MRC) -- Moody’s has assigned a Baa3 long-term issuer rating to SIBUR, with a stable outlook. It is in line with the agency’s country ceiling and exceeds Ba1, Russia’s current sovereign rating, as per the producer's press-release.

The rating confirms SIBUR’s financial resilience: a substantial share of foreign currency revenue and a strong liquidity profile help the Company tolerate sovereign stress. Among other things, the agency highlighted the Company’s business robust model and strong positions in the domestic market and abroad.

The rating action reflects the change in the outlook on Russia's Ba1 ratings from stable to positive. The improved outlook on Russia’s ratings, which were affirmed at Ba1, was driven by the growing evidence of institutional strength, along with economic and fiscal resilience.
MRC