Saudi Aramco keen on buying majority stake in Maharashtra refinery, PC complex

MOSCOW (MRC) -- Saudi Aramco is seeking a majority stake in a proposed refinery-cum-petrochemicals complex in Maharashtra, India, reported Apic-online.

Last year, Indian Oil Corp. (IOC), Hindustan Petroleum Corp. Ltd. (HPCL) and Bharat Petroleum Corp. Ltd. (BPCL) entered into a joint venture agreement for the proposed project (PCN, 19 June 2017, p 3).

The approximately USD40-billion West Coast Refinery Project involves setting up a 60-million-t/y refinery and petrochemicals complex, through a joint venture company, in which IOC will hold a 50% interest and HPCL and BPCL will each hold 25%. Commissioning is expected by 2022.

Aramco, which is aiming to become the "biggest" crude supplier to India, is also in talks with the Indian state-run refiners for marketing rights over the fuel and petrochemicals produced at the complex, and the assurance that the refinery would use mostly Saudi oil, the report said.

As MRC wrote before, Saudi Arabia wants to complete talks with strategic investors such as China, Japan and South Korea before deciding where to list shares in state oil company Saudi Aramco. The decision shows the initial public offering (IPO), which could be the biggest in history, is becoming an increasingly difficult balancing act for Riyadh. Saudi officials have said the government plans to sell up to 5 percent of Aramco shares on one or more foreign exchanges in addition to Riyadh.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

MOSCOW (MRC) -- Russia kept its spot as the largest crude oil supplier to China in February, data showed on Friday, a role it held in January and for the past two years on an annual basis, reported Reuters.

Russia supplied 5.052 million tonnes, or 1.32 MMbpd last month, up 17.8 percent from a year earlier, data from the Chinese General Administration of Customs showed.

Saudi Arabia regained its No. 2 ranking after losing out to Angola in January, with February supplies coming in at 4.635 million tonnes, or 1.21 MMbpd, down 2.9 percent on year but up from 1.01 MMbpd in January.

The hefty Russian shipments, which gained 21 percent for the January-February period over a year earlier, came after a second East Siberia-Pacific Ocean (ESPO) pipeline started commercial operation in January, along with expanded domestic connections in China.

Imports from third-ranking Angola were 973,800 Mbpd up 14.7 percent versus a year earlier.

Shipments from Brazil recorded the fastest growth among major suppliers, coming in at 2.4 million tonnes or about 626,160 Mbpd, up 54 percent on year, the data showed.

China's total crude oil imports last month fell sharply from January's record as independent refineries curbed buying amid worries about new tax rules.

The lower imports also came as refineries eased up on buying ahead of the Lunar New Year holiday in mid-February, when manufacturing plants shut for up to two weeks.

Imports from the United States were 909,117 tonnes, or 237,020 Mbpd last month, down from 472,500 Mbpd in January.

US shipments, which benefited from OPEC supply cuts and rebounding crude oil prices, averaged 153 Mbpd last year.

State-run Sinopec Corp, Asia's top refiner, said last month it expected to boost its U.S. crude oil imports this year to more than 10 million tonnes, or 200 Mbpd.

Friday's data also showed China's imports from Iran fell nearly 28 percent last month on a year earlier to around 474,400 bpd.

State-run Chinese buyers have extended annual supply deals for calendar 2018 with Iran, said an industry source with direct knowledge of the matter, with total volumes steady from last year at about 550 Mbpd.

Chinese imports of Iranian oil held largely flat last year at around 623 Mbpd. The amount exceeded term volumes as companies lifted cargoes from oilfield investments in the Islamic Republic that are outside the regular supply contracts.
MRC

MOSCOW (MRC) -- Having started to develop functional monomers about two years ago, SONGWON has now begun bulk manufacture at its production site in Ulsan, South Korea, as per Pcimag.

These monomers provide resins and polymers with special functions, one of the most important being improvement of the physical and chemical properties of the final product. Applications include resins, sealants, adhesives and engineering plastics designed for use in coatings, the automotive sector and electronic packaging.

"With this new capacity, our production site in Ulsan can now supply medium volumes of specialized monomers at competitive prices. Subsequent development of further products at our Technology Innovation Center and scaling up of production will allow us to follow the market’s technology roadmaps," said Heinrich Schulte, Leader, Market Center Functional Monomers.

The first functional monomers manufactured in Ulsan are dicyclopentadiene (DCPD) phenol oligomers (known in the industry as ERM-6085 and ERM-6140, for example, depending on softening point) and bisphenol trimethylcyclohexane (BP-TMC).

DCPD functions mainly as an epoxy resin modifier in chain-extending reactions and is primarily used in the manufacture of epoxy composites. The softening point and functionality of DCPD phenol resins can be widely varied, and these products are therefore ideally suited to serve the growing market for special epoxy resins that exhibit high dielectric constants and low dissipation factors at high frequencies. They are, for instance, used for wiring boards and packaging material that can meet the new 5G transmission standard requirements.

SONGWON’s standard-grade BP-TMC monomer is available for use in epoxy or epoxy novolac resins, while the high-purity grades are designed for high-impact, transparent polycarbonate. Building on more than 20 years of expertise in the production and modification of products based on phenol chemistry, SONGWON will continue to develop new functional monomers and manufacture them in Ulsan.
mrcplasy.com

MOSCOW (MRC) -- Hexcel and Arkema have signed a strategic alliance to develop thermoplastic composite solutions for the aerospace sector combining the expertise of Hexcel in carbon fiber and that of Arkema in PEKK, as per company's press release.

The partnership announced today aims to develop carbon fiber-reinforced thermoplastic tapes to produce lightweight parts for future generations of aircraft. In addition to lightweighting, these new composites will provide lower cost and faster production speeds for customers in the aerospace and the space and defense sectors.

As part of this partnership, a joint research and development laboratory, located in France, will be established. "I am delighted to announce this partnership with Hexcel, a leading advanced composites supplier to the aerospace industry. This association fits in clearly with our strategy to develop advanced thermoplastic composite solutions from our PEKK resins, and takes effect a few months before the commissioning of our new PEKK plant in the United States in Mobile (Alabama) scheduled for the end of 2018," stated Thierry Le Henaff, Arkema Chairman and Chief Executive Officer.

Nick Stanage, Hexcel Chairman and Chief Executive Officer, said “We’re excited to join this collaboration with Arkema to continue exploring and defining the future of carbon fiber-reinforced thermoplastics in the aerospace industry. With this opportunity and our recent acquisition of the aerospace and defense business of Oxford Performance Materials (OPM), Hexcel is quickly becoming an industry leader in advanced composite thermoplastic technologies."

Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense and industrial applications.
MRC

MOSCOW (MRC) -- Borealis and United Chemical Company LLP (UCC) have signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan, as per company's press release.

Simultaneously, a government support agreement was signed between the two companies and Samruk-Kazyna Chief Executive Akhmetzhan Yessimov as well as the government of the Republic of Kazakhstan, represented by the Minister of Energy, Mr. Kanat Bozumbayev. A Memorandum of Understanding (MoU) was also signed to cooperate on a 500 ktpa polypropylene project that is currently being implemented by Samruk-Kazyna Sovereign Wealth Fund and is under construction. The agreements were ceremoniously signed in Abu Dhabi on 24 March 2018 by the Ministers of Energy of Kazakhstan and of the UAE, in the presence of the President of Kazakhstan, H.E. Nursultan Nazarbayev and the Crown Prince of Abu Dhabi, H.H. Mohammed bin Zayed bin Sultan Al-Nahyan.

The companies, represented by Mark Garrett, Borealis Chief Executive and by Zhenis Osserbay, UCC Chief Executive, then also signed the agreements.

The signing of the JDA comes after the successful conclusion of a pre-feasibility study. The project will now move into the feasibility study phase, which is expected to run until Q1 2019. After the successful completion of the feasibility study confirming the attractive project parameters, a local JV with UCC will be set up.

The scope of the JDA will include the construction of an ethane cracker and 2 Borstar® PE units, with a total capacity of 1.250 ktpa and with a pre-investment in the cracker for future expansion. The final investment decision on the project is expected to be taken in 2020 and start-up would be scheduled for 2025.

Through this strategic partnership, Borealis and UCC are exploring the opportunities of jointly developing the Kazakhstan polyolefin industry.

“The project is well aligned with the country’s strategy to develop its petrochemical industry and would serve as a strong basis for establishing Kazakhstan on the global polyolefin market,” said Samruk-Kazyna Chief Executive Akhmetzhan Yessimov.

“This project would significantly strengthen Borealis’ position in the CIS markets; adjacent to our home market, with growth rates above WE and significant potential for development of advanced PE business based on our Borstar technology,” said Borealis Chief Executive Mark Garrett.

“A polyethylene plant of this scale would be a significant step forward in creating long term, sustainable value for Kazakhstan from its petrochemical industry,” said Zhenis Osserbay, UCC Chief Executive. “We look forward to continuing our work with Borealis in developing this opportunity.”

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