ADNOC signs long-term LPG sales contract

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) has announced it has concluded a new long-term Liquefied Petroleum Gas (LPG) sales agreement with Wanhua Chemical Group of China, according to Hydrocarbonprocessing.

Under the terms of the 10-year contract, Wanhua will purchase up to 1 million metric tonnes of LPG per annum.

The agreement, which was signed by Abdulla Salem Al Dhaheri, Marketing, Sales and Trading Director at ADNOC and Mr. Kou Guangwu, Executive Vice President of Wanhua Chemical Group, represents another important milestone in the expanding relationship between ADNOC and its partners and customers in China.

Commenting on the agreement, Abdulla Salem Al Dhaheri said: "Todays signing, of another important long-term sales agreement with a major end-user of LPG, further reinforces ADNOC’s position as a major supplier of crude oil and petroleum products to the growing economies of Asia. At ADNOC, we remain committed to achieving the best commercial value from our products, expanding our client base and penetrating new markets, through a combination of both short and long-term sales and trading opportunities."

In line with its strategy to maximise value from its downstream refining, petrochemical and gas processing operations, ADNOC produces up to 10,500,000 metric tonnes per year of LPG. This is sold both locally in the UAE and internationally.

Mr. Kou Guangwu, Executive Vice President of Wanhua Chemical Group said: "Wanhua Chemical Group is government owned but also publicly listed on the Shanghai Stock Exchange. The company has investment grade credit ratings from Moody’s, S&P and Fitch Ratings. Wanhua is one of the world’s leading chemical companies and the largest user of LPG in China. Through this long-term supply agreement, we look forward to strengthening our strategic partnership with ADNOC. We will continue working on potential collaborations between our companies, either in China or in the UAE, to add more value to the ‘One Belt One Road’ project."

Wanhua Chemical is the world’s largest MDI producer and the biggest TDI supplier in Europe. It operates a world-scale, advanced C3/C4 petrochemical industrial chain in China, as well as high value-added specialty chemical clusters.

LPG is the main feedstock for Wanhua petrochemical units, with consumption demand of up to 6 million tons per annum projected by 2021. Wanhua owns the world largest LPG underground cavern storage with total capacity of 2.4 million CBM as well as excellent port conditions with two 50K DWT dedicated VLGC berths.

As MRC reported earlier, in November 2018, Saudi Aramco and ADNOC signed a framework agreement to explore opportunities for collaboration in the Natural Gas and Liquefied Natural Gas (LNG) sector. The cooperation brings together two of the world’s leading energy producers from the Arabian Gulf to jointly work together in an area of strategic importance for both companies as they seek to boost revenues from the natural gas and LNG business segments.
MRC

MOSCOW (MRC) -- Sika has acquired the global Concrete Fibers business from Propex Holding, LLC, which includes a US plant manufacturing synthetic fibers for use in concrete reinforcement, sales operations in Sika’s three geographical regions, and a strong brand, said the producer.

The acquired business is a perfect addition to Sika’s concrete systems for high value-added solutions required in the construction of high-rise buildings and demanding infrastructure projects. The acquired business generates annual sales of CHF 30 million.

The acquisition of the Concrete Fibers business, based in Chattanooga, Tennessee, is a further step in Sika’s expansion in fibers, following the acquisitions of Radmix, Australia, and FRC Industries, USA, as well as the opening of a fiber production line in Germany. The acquired business brings the well-established Fibermesh brand and industry-leading technical expertise. Combined with Sika’s existing global fiber portfolio and concrete admixture product range, this will further expand Sika’s offering to concrete customers worldwide. Furthermore, the 12,000 m2 production facility creates significant additional capacity for both micro and macro synthetic fibers to support Sika’s growth going forward, particularly in the region Americas.

Christoph Ganz, Regional Manager Americas: "The acquisition of the global Concrete Fibers business of Propex and the Fibermesh brand is a great fit with Sika’s current portfolio. It brings even greater value to existing and new Sika customers within the ready-mix and precast concrete market. The Fibermesh brand is the industry standard for quality and performance. As part of Sika, we see enormous growth opportunities for Fibermesh, especially in our solutions for construction in big city environments and for our Tunneling & Mining business. We are very happy to welcome the Fibermesh employees to our Sika team."
MRC

MOSCOW (MRC) -- KBR, Inc. has announced that it has been awarded a contract by Linggu Chemical Co. Ltd (Linggu) for an ammonia plant in Yixing City, Jiangsu Province in China, as per Hydrocarbonprocessing.

Under the terms of the contract, KBR will provide the technology licensing and basic engineering design (LBED) package for building a new 1,500 metric tons per day ammonia synthesis unit as a replacement for one of their existing units in Yixing, China. The plant will utilize KBR's proprietary ammonia synloop technology.

KBR's ammonia synloop provides a cost-effective ammonia synthesis solution with low energy consumption, and low CAPEX and OPEX for a reliable and efficient plant. This is the second grassroots ammonia synthesis unit for Linggu using KBR technology. KBR licensed the first synloop unit to Linggu in 2015.

"With KBR's advanced ammonia synthesis technology, we believe our plants will stand out in the coal-to-ammonia market in China," said Mr. Tan Fuyuan, Chairman of Linggu.

"We are honored to deliver this second ammonia unit to Linggu," said John Derbyshire, KBR President, Technology. "This project award showcases the superiority of KBR's Ammonia Synthesis Technology and its great fit for the market needs in China."

KBR is a leader in ammonia technology and has been involved in the licensing, design, engineering, and/or construction of more than 230 grass roots ammonia plants and over 100 revamp ammonia projects globally.

As MRC wrote before, this autumn, KBR, Inc. Houston was awarded contracts for a technology license, basic engineering design services and proprietary catalyst supply by Lihuayi Lijin Refining & Chemical Co., Ltd., for a new olefins production unit in Dongying, China. The unit will use KBR’s proprietary Catalytic Olefins Technology (K-COT) and Selective Cracking Optimum Recovery (SCORE) Technology.
MRC

MOSCOW (MRC) - A group representing biofuel companies asked a federal judge on Tuesday to force the U.S. Environmental Protection Agency to stop exempting small refineries from renewable fuel laws until a lawsuit challenging the agency’s actions is resolved, as per Hydrocarbonprocessing.

Producers United argued, among other things, the EPA violated the law when it issued retroactive biofuel credits to HollyFrontier and Sinclair Oil this year as part of a legal settlement. The EPA’s decision, first reported by Reuters, lowers statutory renewable fuel mandates without any required public notice, the group alleges in the challenge, filed in U.S. Appelate Court in Washington.

Several biofuel organizations have brought similar lawsuits against the EPA related to small refinery hardship waivers, but Producers United is the first to ask a judge to freeze the program. The group did not disclose its members.

The EPA declined to comment. “We don’t comment on pending litigation,” an agency spokesman said. The U.S. Renewable Fuel Standard (RFS) requires refiners to blend biofuels like ethanol into their fuel pool or buy compliance credits from competitors who do. Refineries with a capacity less than 75,000 barrels-per-day can receive waivers if they prove compliance would cause them disproportionate hardship.

The EPA, under President Donald Trump, has greatly expanded the waiver program, awarding 29 exemptions for the 2017 calendar year, up from 16 in 2016 and just seven in 2015, EPA data shows. The EPA says lawsuits brought by HollyFrontier and Sinclair forced the agency to expand the definition of hardship, but biofuel groups say the shift was politically motivated and driven by former EPA administrator Scott Pruitt.

The EPA gave HollyFrontier nearly $34 million worth of credits for this year to reverse denial of a waiver for one of its Wyoming plants dating back to 2015. Sinclair received waivers worth undisclosed millions for two facilities in the same state for 2014 and 2015.

Both companies had challenged EPA’s denials in a federal appellate court in Colorado in 2016. Producers United claims the EPA’s expansion of the program was done largely in secret and must be legally scrutinized before it can be allowed to continue.
MRC

MOSCOW (MRC) -- INEOS Enterprises has today agreed to acquire the entire composites business from Ashland Global Holdings Inc.for USD1.1 billion, as per producer's press-release.

The businesses included in the transaction have combined sales of more than USD1.1 billion per year. They employ 1,300 employees across 20 sites in Europe, North and South America, Asia and Middle East.

The deal, is expected to complete in the first half of 2019, subject to regulatory approval and consultation processes.

Ashley Reed, CEO INEOS Enterprises said, “Ashland’s composite resins have been the materials of choice for the world’s boat builders for 30 years, and for good reason. They are light, strong and resistant to attack from chemicals and even fire. Unlike wood they don’t rot, unlike metal they don’t corrode and unlike concrete they don’t crack. We believe that they have great potential for growth under INEOS ownership and we are looking forward to working with a great team of people who are determined to meet the developing needs of our customers."

Ashland’s Composites Business is a global leader in unsaturated polyester resins, vinyl ester resins and gel coats. In addition to its wide range of gelcoats, the business also provides corrosion-resistant fiberglass reinforced plastic (FRP) which provide exceptional durability, superior heat resistance, low maintenance and high performance for challenging environments.

Bill Wulfsohn, Ashland chairman and chief executive officer said, “Composites and Marl are outstanding businesses with strong market positions and high-performing teams. At the same time, the divestiture of these businesses is consistent with Ashland’s vision of becoming the premier specialty chemicals company. With a more streamlined and focused product portfolio, improved margins and reduced earnings volatility, Ashland will be better positioned to deliver sustained earnings growth and unlock significant value for shareholders."

The deal also includes a BDO facility in Germany producing key intermediates for high performance polyesters and polyurethanes.

Valence acted as Financial advisors to INEOS. DLA Piper provided legal guidance and PwC provided finance and accounting support.
MRC