SNC-Lavalin signs exclusive agreement to deliver a major project in Oman

MOSCOW (MRC) -- SNC-Lavalin announced that it has signed an exclusive agreement with Project Development & Management International LLC (PDMI) in Oman, to design and deliver a greenfield chlor-akali PVC plant 150km southeast of the Omani capital Muscat, as per the company's press release.

SNC-Lavalin will support the project long term, from concept development to commissioning, carrying out the initial engineering, master planning, process technology evaluation and selection to support project financial investment decision approvals. The subsequent Engineering, Procurement and Construction Management (EPCM) contract is expected in Q1 2019, where SNC-Lavalin will execute the complete design and delivery, working alongside Omani contractors to maximise in-country value. SNC-Lavalin will also support the operations and maintenance of the plant.

The project capital cost is expected to be in the range of CAD1.9 billion (USD1.5 billion), and will produce around a quarter of a million tons per annum of PVC destined for Asia, and around 140,000 tons per annum of sodium hydroxide (caustic soda) that will support local industries. SNC-Lavalin has extensive experience in delivering downstream oil and gas infrastructure around the world, with expertise in greenfield and brownfield petrochemical and refining facilities, and has worked with some clients for over 50 years.

"This contract is a major strategic win for us, helping to grow our business in the region and demonstrate our world-leading credentials in providing end to end solutions for large EPC projects," said Christian Brown, President, Oil & Gas, SNC-Lavalin. "Oman is an important market for SNC-Lavalin where we have a long history of safely delivering complex major projects. We are pleased to be able to apply our international experience to such a significant project in the region while working hard to increase in-country value and help develop Oman’s resources."

In 2017, SNC-Lavalin was awarded a long term framework contract from Petroleum Development Oman for the commissioning and start-up support services management for its upstream assets in Oman. As part of this contract, SNC-Lavalin has set-up a dedicated training academy in Muscat to train and develop multidisciplinary graduate engineers in the specialist field of commissioning.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has recently announced a consolidation of its global acetate manufacturing operations by initiating the closure of its acetate tow manufacturing unit in Ocotlan, Jalisco, Mexico, as per the company's press release.

The consolidation is designed to strengthen the company's competitive position, reduce fixed costs and align future production capacities with anticipated industry demand.

Marcel van Amerongen, Vice President of Celanese's Cellulose Derivatives business, said: "As Celanese has discussed over the last many months, the global business environment for acetate tow products is challenging. Global demand for acetate tow is declining, and for the foreseeable future we are not projecting improvements in this business environment. The acetate tow business is an important one for Celanese and we are taking the strategic steps needed to ensure success in the future."

The company will continue to serve its acetate tow customers by optimizing its global production network, which includes wholly owned facilities in Lanaken, Belgium, and Narrows, Virginia, USA, as well as the company's acetate tow joint venture facilities in China. Celanese expects to operate its acetate tow unit in Ocotlan through the fourth quarter of 2018 to ensure a smooth closure process.

Key products manufactured at the Ocotlan plant include cellulose acetate flake and filter tow. The plant's nameplate capacity is approximately 20,000 tons of acetate tow and 52,000 tons of acetate flake. The acetate flake operation, which employs more than 200 employees at the Ocotlan site, remains unaffected by these actions.

As MRC informed previously, Celanese Corporation has increased June list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas, as follows:

- by EUR150/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD150/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC

MOSCOW (MRC) - Negotiations on the prices of European polyvinyl chloride (PVC) for supplies to the markets of the CIS countries started this week. European producers have increased export prices, but not in proportion to the rise in the price of ethylene, according to the ICIS-MRC Price Report.

June contract price of ethylene was agreed up by EUR63/tonne than the level of May, which leads to an increase in the cost of PVC production by about EUR32/tonne. Nevertheless, despite this fact, European producers had to increase export prices for supplies to CIS markets, but less than the growth in production costs.

The demand for PVC from the main consumers began to increase gradually under the pressure of the seasonal factor. But at the same time, competition with producers from other regions was increasing.

Because of this it is not possible to completely pass all the increased costs for export prices. There were no restrictions on export shipments for most European producers.

Negotiations on the June supply of suspension polyvinyl chloride (SPVC) for CIS markets were in the range of EUR745-800/ tonne, FCA, whereas the month before deals were in the range EUR725-780/tonne FCA.
MRC

MOSCOW (MRC) -- The June contract price of ethylene was agreed in Europe up by EUR63/tonne from May. However, European producers raised their export prices of some polyethylene (PE) grades for June shipments to the CIS markets more significantly than the amount of the increase in monomer prices, according to ICIS-MRC Price report.

Negotiations over June PE shipments from Europe to the CIS countries began on Monday. But a major rise in ethylene prices in the region led to a proportional increase in export prices of only high density polyethylene (HDPE) for the CIS customers, whereas in the low density polyethylene (LDPE) segment, the two-fold price increase was lower than the amount of the increase in ethylene prices.

Negotiations over June HDPE shipments were held in the range of EUR1,080-1,153/tonne FCA, up by EUR63-80/tonne from May. Those producers, which plan shutdowns for maintenance in the nearest future, had restrictions on shipments.

Prices of black PE 100 also grew and were discussed in the range of EUR1,360-1,415/tonne FCA. Most producers still had major restrictions on exports, and not all companies could meet their needs in full.

Deals for June shipments of European LDPE were negotiated in the range of EUR1,080-1,150/tonne FCA, up by an average of EUR30/tonne from May.
MRC

MOSCOW (MRC) -- TSRC Corporation has announced its investment in the construction of a new SEBS line with 20,000 t/y capacity in Nantong, China, as per GV.

The line is expected to start operations during the course of 2019.

TSRC provides SEBS, SIS and SBS products for customers in plastic modification, compounding, adhesives, elastic film, and flexography applications.

The company said that it is committed to increasing its R+D investment by upgrading R+D facilities and capabilities to develop high value-added products, for example, medical applications and specialty films. The company provides new SEBS polymers that are said to feature very good miscibility with polyolefins and high transparency and softness for medical film applications.

As MRC informed before, by the second quarter of 2011, TSRC Corp. had paid USD168 million to acquire Dexco Polymers Operating Company LLC and Dexco Polymers LP. TSRC said then that the acquisition would help it to upgrade its technology, provide its customers a wider array of products, and diversify its customer base across Asia, Europe and the Americas.
MRC