Enterprise and Navigator begin construction of ethylene export terminal

MOSCOW (MRC) -- Enterprise Products Partners L.P. and Navigator Holdings Ltd. have announced that construction is now underway on a 50/50 joint venture ethylene export terminal which will be located at Enterprise's Morgan's Point, Texas facility on the Houston Ship Channel, according to Hydrocarbonprocessing.

The terminal will have the capacity to export approximately 2.2 billion pounds of ethylene per year.

Refrigerated storage for 66 million pounds of ethylene is being constructed on-site and will provide the capability to load ethylene at rates of 2.2 million pounds per hour. Commercial operations are expected to begin in the fourth quarter of 2019, one quarter earlier than previously projected.

By providing access to international markets, the new export terminal will facilitate the continued growth of domestic ethylene production, which is expected to reach 90 billion pounds per year by 2021. In addition, the terminal being constructed by Enterprise and Navigator will promote supply diversification for expanding markets like Asia, which rely on cost-advantaged U.S. feedstocks.

The high-capacity ethylene salt dome storage facility Enterprise is developing at its complex in Mont Belvieu, Texas is scheduled to begin service in the second quarter of 2019. Upon completion, this storage facility will have a capacity of approximately 600 million pounds with an injection/withdrawal rate of 420,000 pounds per hour and will be designed to enable connections to the eight ethylene pipelines within a half-mile of the Enterprise ethylene storage system. In addition, Enterprise is building a new ethylene pipeline from Mont Belvieu to Bayport, Texas, which is on schedule to begin service in 2020. The section from Mont Belvieu to Morgan's Point is scheduled to be in service in 2019 to support the export terminal.

As MRC wrote earlier, in 2015, Enterprise Products Partners L.P. announced a series of projects to convert and expand segments of its petrochemicals pipeline network designed to increase throughput capacity for polymer grade propylene (PGP) and enhance system flexibility and reliability.
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MOSCOW (MRC) -- On Tuesday, Bayer obtained conditional approval from the Antitrust Division of the United States Department of Justice (DOJ) for the proposed acquisition of Monsanto, as per the company's press release.

"“Receipt of the DOJ’s approval brings us close to our goal of creating a leading company in agriculture," said Bayer CEO Werner Baumann. "We want to help farmers across the world grow more nutritious food in a more sustainable way." Bayer has now obtained almost all clearances which are conditions for closing the transaction. The company expects to receive any outstanding approvals required for completing the transaction very shortly.

Bayer will become the sole shareholder of Monsanto Company following the receipt of outstanding approvals. According to the DOJ’s conditional approval, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been accomplished. This is expected to be in approximately two months.

We remind that in September 2017, Monsanto accepted an increased takeover bid of USD128/share from Bayer, paving the way for Bayer to acquire Monsanto in an all-cash transaction valued at USD66 billion.

And, as MRC informed before, in late March 2018, Bayer received the green light from the EU to buy Monsanto, after promising to sell off substantial parts of its business, clearing a major hurdle to the last of a trio of mega-mergers consolidating the global agrochemical industry.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2017, the Group employed around 99,800 people and had sales of EUR 35.0 billion. Capital expenditures amounted to EUR 2.4 billion, R&D expenses to EUR 4.5 billion.
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MOSCOW (MRC) -- Production has started at AkzoNobel’s new powder coatings plant in Changzhou, China. The facility - one of the largest of its kind in the world - is located at an existing site and will help to further strengthen the company’s undisputed global leadership position in the powder coatings market, as per the company's press release.

The result of nearly EUR40 million of investment, the Changzhou plant will supply an extensive range of Interpon and Resicoat products to meet growing demand for more sustainable coatings solutions. Key markets include the automotive, architectural and general industrial sectors.

"China is a high priority region for us and the new facility is part of ongoing plans to optimize our production and investment strategy, based on increasing demand," explained Ruud Joosten, AkzoNobel’s Chief Operating Officer. "Our passion for paint will continue to be the driving force for us to provide best-in-class sustainable solutions while expanding our footprint globally to drive growth."

Added Daniela Vlad, Director of AkzoNobel’s Powder Coatings business: "Our operations go beyond production - we’re also focused on innovation. We continue to provide dynamic colors and finishes and the most sustainable solutions for our customers in China and around the world. This new plant will help us develop Changzhou into a hub for the powder coatings industry in China and create more value for customers by providing customized solutions."

AkzoNobel supplies powder coatings to more than 30,000 customers worldwide, covering several market segments. The Changzhou facility will produce almost the complete range, serving customers in the entire Eastern region of the country with products for domestic appliances, architecture, automotive, furniture, IT, functional and general industrial applications. It will also supply automotive customers nationwide.

Reflecting the sustainable nature of the powder coatings it produces, the new Changzhou plant itself is a living demonstration of AkzoNobel’s strong commitment to sustainability. In addition to supplying only VOC and solvent-free products, the plant also uses advanced technology such as a vacuum drum waste water recycling system. This helps to achieve full recycling of waste water and zero waste water emissions.

Meanwhile, the strategic position of the site enables it to collaborate with one of AkzoNobel’s largest technology centers - based in Songjiang, Shanghai - which carries out research on formulas and solutions customized for local needs.

As MRC informed earlier, in February 2018, India’s fourth largest paint company, Akzo Nobel India Limited commissioned its new powder coatings facility at Thane (near Mumbai, Maharashtra).

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.
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MOSCOW (MRC) -- Negotiations over June shipments of suspension polyvinyl chloride (SPVC) began in Russia this Tuesday, on 29 May. All producers announced a further price increase, according to ICIS-MRC Price Report.

Demand for finished products from PVC increased in May, but at the same time, many converters were forced to raise their prices for finished products due to the continuing rise in prices of polymer since the beginning of the year. Demand for suspension is expected to increase further from the Russian market in June, and, as a result, producers announced their intention to achieve an increase of Rb2,000/tonne from May in SPVC prices.

Supply of resin is sufficient in the market, although demand for polymer continues to increase and import quantities are scarce. A short shutdown for maintenance at RusVinyl, Russia's largest PVC producer, in April did not affect the market balance. A long shutdown for a turnaround at SayanskKhimPlast, Russian second largest PVC producer, which is scheduled for the second half of July, is ahead.

Russian consumers virtually do not have a reasonable alternative to Russian resin. The rouble devaluation and high prices in foreign markets makes any PVC imports economically unprofitable.

The key suppliers of resin in the past years - producers from the north of China - reduced their June export prices of acetylene PVC by USD10/tonne from May. But this in fact does not change anything - Chinese resin is still much more expensive than Russian counterparts.

Most Russian consumers understand that it will not be possible to avoid increases in SPVC prices for June deliveries. But at the same time, some converters are trying to limit the amount of the price increase of polymer to a smaller value than the one announced initially.

In general, June deals for resin with K64/67 were negotiated in the range of Rb70,000-72,000/tonne CPT Moscow, including VAT. Deals for PVC with K70 were also discussed from Rb70,000/tonne CPT Moscow, including VAT, and prices of some producers reached Rb73,000/tonne CPT Moscow, including VAT.
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MOSCOW (MRC) -- Lukoil, Russia's second-biggest oil producer, said on Tuesday it had decided not to go ahead with plans to develop projects in Iran at the moment due to the threat of U.S. sanctions, reported Reuters with reference to a company official.

The United States plans to impose new sanctions on Iran after pulling out of a 2015 agreement between Iran and major world powers to limit Tehran's nuclear ambitions.

"Considering the latest developments, I guess, it's too early to say what our plans (about Iran) will be. For the moment, basically, we have everything on hold," the official told a conference call which followed publication of Lukoil's first-quarter results on Monday.

Lukoil said on Monday its first-quarter net profit rose to 109.1 billion roubles (USD1.8 billion), up 75 percent on the previous year with the help of rising oil prices.

The official said that company's focus remained on its domestic business. "We don't plant to do anything material on the international M&A side," he said.

Lukoil has been in talks with Iran over development of Abe Timur and Mansuri oilfields.

As MRC wrote before, in February 2017, Lukoil sold Ukrainian plant Karpatneftekhim. Thus, 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. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
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