Gazprom neftekhim Salavat launched the production of polystyrene

MOSCOW (MRC) - Gazprom neftekhim Salavat resumed production of polystyrene (PS) on 26 July after a period of scheduled maintenance works, according to the ICIS-MRC Price Report.

Market players said they do not expect the first lots of material to enter the market until the end of next week. The plant will need some time to reach a stable quality of the granulate.

Polystyrene by production of GNS was practically absent in the Russian market in July. Small volumes of free PS from Gazprom neftekhim Salavat were sold at higher prices than market ones.

The annual production capacity of high-impact polystyrene (HIPS) and general purpose polystyrene (GPPS) at the plant at GNS totals 42,200 tonnes per year.

As it was previously reported, the plant's capacities were shut for planned scheduled maintenance on 1 July.

OAO "Gazprom neftekhim Salavat" (formerly OAO "Salavatnefteorgsintez") is one of the leading petrochemical companies in Russia, carrying out a full cycle of processing hydrocarbon material. The list of products manufactured by the plant includes more than 140 items, including 76 grades of the main products: gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrenes, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of household products made of plastics, surfactants and much more.
MRC

MOSCOW (MRC) -- Talks on the potential acquisition of a stake in Saudi Basic Industries Corp are taking place solely between national oil firm Saudi Aramco and the kingdom’s top sovereign wealth fund, reported Reuters with reference to Sabic’s chief executive.

"Hard to expect anything in this regard - Aramco-PIF talks are between an owner and a future investor," Yousef al-Benyan told a news conference. "I can assure you we have trust in our regulators."

This month, Aramco confirmed a Reuters report that it was working on the possible purchase of a "strategic stake" in SABIC from the Public Investment Fund.

JPMorgan and Morgan Stanley have been picked to advise on Aramco’s plan to buy up to a 70 percent stake in the petrochemical maker, sources familiar with the matter said.

As MRC wrote before, in March 2018, Wood was selected to develop the world's largest fully integrated crude oil to chemicals (COTC) complex in the Kingdom of Saudi Arabia, on behalf of Saudi Aramco and SABIC as the first PMC contractor.

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.

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

MOSCOW (MRC) -- BASF’s specialty polyamide Ultramid® Deep Gloss has been awarded the German Innovation Award 2018 in the category "Materials and Surfaces", as per the company's press release.

The award is presented by the German Design Council to recognize products from different industries that offer additional benefits compared to previous solutions. Introduced on the market at the end of 2017, Ultramid® Deep Gloss combines the chemical resistance of semi-crystalline polyamides with the high gloss and depth of view of amorphous plastics. It is therefore particularly suitable for automotive interior components which are high-gloss and yet at the same time resistant without coating.

Components made of Ultramid® Deep Gloss have a piano-black, high-gloss surface that for the first time does not require an additional, elaborate protective coating. The specialty polyamide can be used to make UV, scratch and chemically resistant high-gloss surfaces with an exciting interplay of light and shadow. It allows designers to realize unusual textures such as ripples, waves, hammer finish, lines and diamonds with a piano-black look, or structure surfaces with haptic design elements – into an integrated, functional design for the autonomous driving concepts of the future.

Ultramid® Deep Gloss is suitable for components such as air vents and decorative trims, inlays in car doors, central consoles or dashboards. The requirements of the automotive industry regarding emissions and odors were also taken into account during the development. During processing, the new BASF polyamide offers interesting cost saving potentials as it is done without vario-thermal mold technology and there is no need for the components to be coated.

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) -- Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, said on Sunday it expects positive growth in the second half of this year, backed by an increase in production and enhanced global economic outlook, as per Reuters.

The comments came after SABIC reported an 81 percent leap in second-quarter net profit, citing higher selling prices and a jump in sales volumes.

The first half of 2018 was “very positive” and SABIC expects the second half of the year to be “equally positive,” CEO Yousef al-Benyan told a news conference.

SABIC has been a focus of investor attention after Reuters reported earlier this month that Saudi national oil giant Aramco aimed to buy a stake in SABIC, possibly taking the entire 70 percent holding owned by Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF). Aramco subsequently confirmed the report.

Benyan said on Sunday that talks on the potential acquisition of a stake in his company are taking place solely between Aramco and PIF. "Hard to expect anything in this regard — Aramco-PIF talks are between an owner and a future investor,” Yousef al-Benyan told a news conference. “I can assure you we have trust in our regulators."

SABIC posted a net profit of 6.70 billion riyals ($1.79 billion) in the three months to June 30, up from 3.71 billion riyals in the year-earlier period, beating average analyst forecasts of a 5.8 billion riyals net profit.

Benyan said the company’s production rose by about 1.5 million tonnes in the first half of the year and is expected to rise by three million tonnes by year-end.

Quarterly sales climbed 26 percent from a year earlier to 43.28 billion riyals, and were up three percent from the previous quarter.

SABIC shares edged down 0.6 percent by 0905 GMT, dragging the Saudi index 0.9 percent down, but the stock is richly valued at over 20 times trailing earnings.

SABIC’s results are closely tied to oil prices and global economic growth because its products — plastics, fertilisers and metals — are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.

The petrochemical giant has plans to expand its presence in global markets; specifically in North America, China and North Africa, Benyan said, adding that the company is looking at various options, without giving further details.

In Europe, the company is still committed to its investment in Clariant, and is awaiting antitrust approvals for acquiring a 25 percent stake in the Swiss speciality chemical maker which was announced in January, Benyan said.

Earlier this month, Clariant CEO said his company’s update on its ties with SABIC is likely to be delayed as antitrust approvals take longer than expected.
MRC

MOSCOW (MRC) -- Cuadrilla Resources, one of the companies leading the charge to exploit Britain’s shale resources, has been given the green light to start hydraulic fracturing at a well in Lancashire after the government gave its consent subject to certain conditions, reported Financial Times.

The consent means that Cuadrilla will be able to start hydraulic fracturing - pumping water, sand and chemicals under the ground at high pressure to release gas from "tight" rock formations - at its first horizontal shale gas exploration well at its Preston New Road site later this year. It is the first fracking permit issued since the introduction of a new regulatory regime.

"I have carefully considered Cuadrilla’s application and I am content that Hydraulic Fracturing Consent should be granted in this instance," said Claire Perry, Energy and Clean Growth Minister, in a statement.

"Shale gas has the potential to be a new domestic energy source, further enhancing our energy security and helping us with our continued transition to a lower-carbon economy," she added.

Hydraulic fracturing consent was introduced in 2015 as an additional step to the existing regulatory and permitting regime. Previous fracking at Cuadrilla’s site was halted in 2011 after causing earth tremors.

Geological surveys have indicated the presence of significant untapped gas across the Midlands and north of England, raising hopes of a US-style shale boom. However, efforts to commercialise the resources have been held up by opposition from environmental groups and local communities to fracking.

Cuadrilla will have to meet certain conditions including supplying the Business and Energy department with the latest accounts for co-investor Spirit Energy, or a deposit in support of any potential liabilities for decommissioning costs. The company said it will now prepare to apply for consent to carry out hydraulic fracturing operations for its second horizontal shale gas exploration well at the same site.

"We are very pleased to be the first operator in the UK to have been awarded final consent to hydraulically fracture the UK’s first onshore horizontal shale exploration well," said Francis Egan, chief executive of Cuadrilla.

"This is a testament to, and underpinned by, our strong record of running a world class shale gas exploration site at Preston New Road, in compliance with robust health, safety, environmental and planning regulations."

Liz Hutchins, Friends of the Earth director of campaigns, denounced the government’s decision.

As MRC informed before, in June 2018, after winning its appeal against a decision by the Rotherham Council in Yorkshire to deny the company permission for test drilling at a greenbelt site in Harthill, INEOS Shale submitted a second planning application. The new application was for a drill site at nearby Woodsetts, where the council has also refused drilling permission.
MRC