SNC-Lavalin signs Al Zour Refinery contract in Kuwait

MOSCOW (MRC) -- SNC-Lavalin announced that it has signed a contract of approximately USD240 million (USD180 million) with Kuwait Integrated Petroleum Industries Company (KIPIC) for commissioning management support services, as well as the preparation and delivery of training, documentation and competency development consultancy services, at the Al Zour Refinery in Kuwait. KIPIC is a subsidiary of Kuwait Petroleum Corporation, as per Hydrocarbonprocessing.

"We look forward to building a long-term relationship with KIPIC and working in association with them to commission one of the newest and biggest refineries in the world. This is a great opportunity to further demonstrate our globally renowned expertise and extensive capabilities in downstream, and to support our client in executing their strategy and delivering a successful start-up and the steady state operations of the refinery," said Christian Brown, President, Oil & Gas, SNC-Lavalin. "With over 50 years working alongside our clients delivering more than 700 projects in the Middle East, our 15,000 strong workforces in the region has the local expertise and know-how to deliver any project across our end-to-end value chain".

Under the agreement, SNC-Lavalin will provide commissioning technical services including master plan, start-up program development, risk assessment and management, commissioning management support, operations readiness and assurance, project phase execution activities, as well as training, competency development and assurance, documentation preparation, and the development of a knowledge management system and e-learning services, software, procedures and conducting a safe and efficient start-up and operations.

The Al-Zour refinery will have the biggest refining capacity in the Middle East and is designed to refine 615,000 barrels per day at maximum capacity, increasing Kuwait’s national refining capacity to more than 1.5 million barrels per day. The refinery will produce high-value products, and will predominantly produce low sulfur fuel oil to replace high sulfur fuel oil that is presently used in local power generation plants. Other refinery end products will include Ultra Low Sulfur Diesel and Kerosene, Petrochemical Naphta, Granulated Sulfur and LPG.
MRC

MOSCOW (MRC) -- BASF welcomes the official entry of Methylene Bis-Benzotriazolyl Tetramethylbutylphenol (MBBT) as a nano-sized UV filter into Annex VI of the EU Cosmetic Regulation, as per the company's press release.

MBBT is an ingredient of the BASF product Tinosorb® M. "We are the largest supplier of safe-to-use, high-performance UV filters that help to protect the skin against the harmful effects of UV radiation such as sunburn, premature appearance of wrinkles and – with frequent intensive exposure – an increased risk of skin cancer. Tinosorb M is an integral part of our broad sun care portfolio and has proven its relevance for many years by being used in numerous consumer products worldwide. We welcome the EU approval of MBBT in nano form after this long transitional period," said Dirk Mampe, Vice President, Business Management Personal Care Solutions Europe.

Tinosorb M is on the market and widely used since 2000, the year MBBT received its approval as cosmetic UV active ingredient, and has not been changed since. An additional approval, however, was required for products in nano form due to the recast of the EU cosmetic legislation (Regulation (EC) No. 1223/2009) in 2009. In 2015, the Scientific Committee for Consumer Safety (SCCS) published a positive scientific opinion on the safety of MBBT (nano) which it reconfirmed in January 2018 after assessing additional questions raised by individual EU member states. It is now BASF’s third UV filter in nano form to be approved for use in cosmetics in Europe after Tinosorb® A2B in 2014 and Z-Cote® in 2016.

As MRC informed earlier, chemicals giant BASF confirmed its 2018 outlook for a "slight increase" in earnings but pointed out that economic risks had "increased significantly" because of escalating trade tensions. The group reported second quarter earnings on Friday, with earnings before special items up 5 per cent to EUR2.4bn as sales grew 3 per cent to EUR16.8bn.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of about EUR58 billion in 2016.
MRC

MOSCOW (MRC) -- Russia's overall production of polypropylene (PP) fell in January-June 2018 by 1.7% year on year, totalling about 704,000 tonnes. At the same time, only three Russian producers reduced their PP output, according to MRC ScanPlast report.

June output of polypropylene by local producers increased to 114,600 tonnes against 93,300 tonnes a month earlier, the low indicator of May was due to a scheduled maintenance works at SIBUR Tobolsk. Russia's overall PP production reached 704,000 tonnes in the first six months of 2018, compared to 715,800 tonnes a year earlier. At the same time, only Nizhnekamskneftekhim, Stavrolen and SIBUR Tobolsk have reduced production indicators.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk in June increased the capacity utilisation after the shutdown in May, the total PP production was 38,800 tonnes against 12,700 tonnes a month earlier. The Tobolsk plant's total PP production exceeded 224,800 tonnes in the first six months of 2018, down by 15% year on year. The decline in production was a result of an early shutdown in prevention this year.

Poliom (Titan Group) last month produced about 17,800 tonnes of polypropylene, compared with 18,900 tonnes in May. Total PP production at the plant over the reported period was about 109,900 tonnes, up 3% year on year.

Nizhnekamskneftekhim produced 16,900 tonnes of propylene polymers in June versus 18,500 tonnes a month earlier. The producer's PP production in January-June decreased by 3% from last year's level to 105,000 tonnes.

Tomskneftekhim last month produced about 12,200 tonnes against 12,600 tonnes a month earlier. The Tomsk plant's PP output exceeded 73,800 tonnes in the first six months of 2018, compared to 70,700 tonnes a year earlier.

June PP production at Ufaorgsintez reached 10,700 tonnes from 11,100 tonnes a month earlier. Overall output of polymer at the Ufa plant rose to 66,700 tonnes in January-June 2018, compared to 63,200 tonnes a year earlier.

Neftekhimiya (Kapotnya) decreased capacity utilisation in June, total polypropylene production had increased to 11,200 tonnes against 10,600 tonnes in May. The plant's overall PP output reached 66,900 tonnes over the stated period, up 57% year on year. A low indicator of the current year was a result of a long scheduled maintenance works in March-April.

Stavrolen (LUKOIL) shut down its production for a short maintenance last month, as a result, the output decreased to 7,000 tonnes from 8,800 tonnes in May. Overall production of propylene polymers at the Budenovsk plant reached 56,900 tonnes in the first six months of 2018, up by 5% year on year.


MRC

MOSCOW (MRC) -- Negotiations over August shipments of suspension polyvinyl chloride (SPVC) began in Russia this Tuesday, 26 July. All producers insisted on a further price increase of up to Rb4,000/tonne, according to ICIS-MRC Price report.

For the several months in a row, negotiations over contractual polyvinyl chloride (PVC) shipments have begun for Russian consumers with producers' statements about price increases, August was no exception. Most suppliers' plans include an increase of Rb4,000/tonne from July in SPVC prices, a producer intends to limit the rise in resin prices by only Rb1,500/tonne.

Despite a scheduled shutdown for maintenance at one of the largest PVC producers - SayanskKhimPlast (took off-stream its production capacities for a one-month turnaround on 15 July) - and quite large export quantities, there was no shortage of resin in the market. At the same time, some producers said they did not have excessive PVC stocks.

Some converters said they would have to reduce purchasing of PVC in August due to a significant price increase. A major fall in resin prices has been recorded already for several years in the second half of September-October, and they believe this year will be no exception.

PVC prices have continued their upward trend in the market since the beginning of the year, and it was partially caused by objective factors. Despite the continuing price rise, Russian resin is still significantly cheaper than imported analogues.

Converters, in their turn, were forced to transfer prices of material to finished products, many companies had already raised prices for their products several times. Prices might for up again in September.

Overall, August deals for resin with K=64/67 were negotiated in the range of Rb73,500-77,000/tonne CPT Moscow, including VAT. Deals for resin with K=70 were also discussed starting from Rb74,000-78,000/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) -- Kazakh Neftekhim Ltd, the only producer of polypropylene (PP) in the country, shut down its production capacities for a scheduled maintenance, according to ICIS-MRC Price report.

The plant's customers said Neftekhim Ltd took off-stream its PP production for the scheduled turnaround on Wednesday, 25 July. The outage will last for almost a month, the resumption of production is planned on 20 August.

Neftekhim Ltd was commissioned in 2009. The company produces methyl tertiary butyl ether (MTBE) and polypropylene (PP). The plant's PP production with the capacity of 30,000 tonnes/year was launched in 2011; the plant did not have PP granulation unit then, polymer was produced in the form of powder, which limited its field of application.
MRC