Kraton successfully closes term loan refinancing

MOSCOW (MRC) -- Kraton Corporation (KRA) and certain of its wholly-owned subsidiaries announced the closing of an amendment to its existing senior secured term loan facility, as per Worldofchemicals.

increased borrowing under the euro-denominated tranche of the term loan facility (the euro tranche) by 150 million euros to 315 million euros;
re-priced the euro tranche from Euribor plus 2.50 percent to Euribor plus 2.00 percent, with a 0.75 percent floor, and re-priced the US dollar-denominated tranche of the term loan facility from LIBOR plus 3.00 percent to LIBOR plus 2.50 percent, with a 1.00 percent floor; and extended the maturity date of the term loan facility from 6 January 2022 to 8 March 2025.

Proceeds from the additional borrowings under the euro tranche, plus available cash on hand, were used prepay USD185 million of the then outstanding USD485 million balance under the USD tranche.

"The success of this most recent refinancing reflects the ongoing optimization of our capital structure and credit profile. The refinancing represents annualized cash interest savings of approximately USD5.9 million," said Stephen Tremblay, the company's executive vice president and chief financial officer.

"We are focused on other near-term opportunities to improve our capital structure and we remain fully committed to the closing fiscal year 2018 with our consolidated net debt leverage below four turns," added Tremblay.

JP Morgan, Deutsche Bank, and Credit Suisse were joint lead arrangers and joint book runners for the transaction.
MRC

MOSCOW (MRC) -- SNC-Lavalin (SNC) in consortium with TechnipFMC, has been awarded a lump sum EPC contract to supply Nova Chemicals with two gas cracking furnaces, as per Worldofchemicals.

This award supports the recently announced third phase of the conversion and expansion of Nova Chemicals’ Corunna cracker. The cracker which is expected to increase the unit’s current ethylene capacity by more than 50 percent and is linked to the construction of a new polyethylene facility being developed by Nova Chemicals.

Prior to this engineering, procurement and construction (EPC) award, TechnipFMC provided the associated process technology under a separate licensing agreement with Nova Chemicals. Both TechnipFMC and SNC-Lavalin supported Nova Chemicals in the front-end engineering (EDS / FEED) development for the gas cracking furnaces.

Under the agreement, TechnipFMC will have primary responsibility for the detailed engineering and procurement aspects of the work, while SNC-Lavalin will be responsible for the modular fabrication, erection, construction and pre-commissioning of the work.

“We are pleased to be awarded this project which will expand our ongoing and successful working relationship with Nova Chemicals. Our downstream capabilities are well regarded in Canada and this segment of the market is seeing growing demand; this award reinforces our reputation for delivering gas cracking furnaces within Canada,” said Kevin Dell, senior vice president, oil & gas Canada, SNC-Lavalin.
MRC

MOSCOW (MRC) -- Sabic, a global leader in the chemical industry, is introducing the newest addition to its expanding portfolio of UDMAX unidirectional fiber-reinforced thermoplastic composite tape products, said the producer in its press release.

Commercially available worldwide, the new glass-filled high-density polyethylene (HDPE) grade is designed for reinforcing industrial applications, such as pipes and pressure vessels, offering unmatched tensile strength. This novel product has one of the highest glass content available in the industry today combined with optimal thermoplastic resin impregnation, thanks to Sabic’s proprietary high-pressure fiber impregnation technology (HPFIT). By using UDMAX tape to reinforce oil, gas and water pipes, boilers and storage tanks, customers can significantly increase mechanical performance while reducing weight and help improve corrosion resistance in the most demanding environments.

"As pipe and pressure vessel manufacturers face rising demand for higher performance, longer life and greater safety, advanced thermoplastic composite technologies from SABIC can offer a practical solution for various industrial applications," said Hans Warmerdam, commercial director, SABIC Fibre Reinforced Thermoplastics (FRT). "Our new UDMAX GPE 46-70 tape delivers the exceptional strength needed to meet tough industry challenges, and promotes more efficient pipe and pressure vessel designs for transport and installation. This new product also illustrates how SABIC continues to invest in technological innovations that give our customers an ever-increasing selection of strong, lightweight thermoplastic composites in place of traditional materials."

The UDMAX GPE 46-70 tape offers exceptionally lightweight and high strength and is a replacement for metal and other traditional materials. Featuring SABIC’s HPFIT that quickly and precisely enables the spread and combination of thousands of glass or carbon fibers with a thermoplastic matrix, the UDMAX GPE 46-70 tape has 70 percent fiber by weight content - one of the highest available today. "Maximizing fiber content can raise tensile strength up to 957 MPa, which in turn affects the burst pressure resistance of a pipe or vessel - a key performance indicator," said Joris Wismans, technical director, SABIC FRT.

Reinforcing pipes and pressure vessels with UDMAX tape offers designers new options for achieving desired performance. For example, the use of UDMAX GPE 46-70 tape can enable pipes to withstand higher loads, while reducing the number of tape layers for less-demanding environments, lowering overall weight for easier transport and installation.

As MRC informed before, in September 2017, Sabic continued its global expansion with the inauguration of a new polypropylene (PP) pilot plant in Geleen, the Netherlands, and the announcement of a new investment in a state-of-the-art PP extrusion facility to be built at the same location.

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

MOSCOW (MRC) -- Russian petrochemical group Sibur is in talks with Saudi Aramco to set up a venture to produce synthetic rubber, its chief said in a move highlighting growing cooperation between OPEC leader Saudi Arabia and Russia, the biggest non-OPEC oil exporter, reported Reuters.

Russia and Saudi Arabia have forged closer ties in the past two years as part of efforts to prop up oil prices by curbing output.

The deal between OPEC and Russia has opened the door to political dialogue and has also encouraged talks on broader bilateral investment in the energy sector.

"The Saudi-Russian dialogue has probably accelerated the project, even though we started discussion some four years ago," Sibur head of management board Dmitry Konov told reporters.

The two companies signed a cooperation memorandum last year when Saudi King Salman visited Russia but so far have not disclosed project details.

Konov said Sibur was looking to export its synthetic rubber technology because of low feedstock availability in Russia and low domestic demand growth.

Good feedstock availability in Saudi Arabia and growing Asian markets could make the project attractive, Konov said.

He said the venture would likely involve other companies as it would require technologies which Sibur or Aramco do not possess.

Sibur focuses mainly on serving clients in the former Soviet Union but its exports of polymers are set to rise with the launch of a new USD9 billion plant in Tobolsk in Siberia over the next couple of years.

It also wants to build a major complex in east Siberia in the next decade to serve Asian markets as part of a broader plan by gas export monopoly Gazprom to supply gas to China.

Konov said he saw global competition rising steeply due to the U.S. shale oil boom, which provides cheap feedstock to the local petrochemical industry.

The International Energy Agency raised its outlook for U.S. shale oil growth this week, saying the country was poised to grab market share from rival OPEC and further develop its chemical industry.

The IEA also said petrochemicals would become one of the main sources of global oil and gas demand growth.

Konov said that despite rising U.S. output, global demand for polymers was set to grow faster than U.S. capacity additions, meaning the market was unlikely to face a significant glut anytime soon.

"People are more concerned about having not enough projects rather than having too many," he said.

As MRC informed before, SIBUR Tobolsk, Russia's largest PP producer, manufactured 47,700 tonnes in January 2018 versus 46,400 tonnes and 46,700 in January and December 2017, respectively. Overall PP production at the Tobolsk plant exceeded 510,500 tonnes last year.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.
MRC

MOSCOW (MRC) -- CB&I has announced it has been awarded a contract valued at approximately USD70 million by JG Summit Petrochemical Corporation (JGSPC) for the Stage 1 Expansion project in Batangas City, Philippines, as per Hydrocarbonprocessing.

CB&I's scope of work includes the engineering, fabrication and construction of ten traditional field erected storage tanks, one double-wall liquefied petroleum gas storage tank and three spheres. Additional scope of work includes technical evaluation to service multiple tanks on the project.

"CB&I has a long-standing relationship with JGSPC and more than 45 years of experience in the Philippines," said Richard Heo, CB&I's Executive Vice President of Fabrication Services. "CB&I previously provided a technology license, basic engineering package and heater supply to the project. This award underlines JGSPC's confidence in CB&I's vertically integrated capabilities and further strengthens our presence in the region."

As MRC wrote before, in March 2017, Clariant was awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The project includes the license and engineering design of the unit, which is to be built in Dongguan City, Guangdong Province, China. The Dongguan plant will be one of the largest single-train dehydrogenation units in the world.
MRC