Asia petchem demand to stay strong despite $100/bbl Brent crude

(ICIS) -- Asia's petrochemical prices will remain underpinned by strong fundamental demand coming from energy giant China, even as global Brent crude futures pierced the $100/bbl (┬73/bbl)-mark on concerns that Egypt's political unrest could lead to oil supply disruptions, industry experts said on Tuesday.


At midday Tuesday, Brent crude for March delivery was valued at $100.43/bbl, after breaking above $100/bbl for the first time since October 2008 on Monday.


The oil price rally was a stark reminder of July 2008 when prices soared to an all-time peak of $147.27/bbl, and a few months later in December, plummeted to $33/bbl because of the global recession.


Asia is still expected to guzzle a colossal quantity of petrochemical products, with prices seen buoyant, and undeterred by feedstock naphtha levels at a 28-month high of $894.50-897.50/tonne CFR (cost and freight) Japan on Tuesday.


Prices would remain at such levels, with China still expected to import record volumes of crude oil, and other rising Asian economies setting the pace for oil consumption.


MRC

Freezing temperatures, possible snow threaten US Gulf chems

(ICIS) -- A strong cold front will bring sub-freezing temperatures and possible snow to parts of the US Gulf coast in the coming days, threatening chemical operations and raising heating oil prices, sources said on Tuesday.


In Houston, considered the hub of the US petrochemical industry, temperatures are projected to fall to 19-25╟ Fahrenheit (-7 to -4╟ Celsius) for each of the next four nights, representing the coldest air of the season.


LyondellBasell spokesman David Harpole said his company had already taken steps to "winterise" its Houston-area facilities and to ensure that they are prepared to weather the storm as designed.


Harpole added that LyondellBasell plans to use electric trace heating in vulnerable areas of pipes, as well as steam traps to keep condensation drained from lines before it can freeze.


During similar temperatures in January 2010, numerous Texas facilities including ExxonMobil's Baytown olefins plant, DuPont's Beaumont aniline site and Huntsman's Port Neches complex had to be shut down, even as no snow fell.


MRC

LUKOIL offered to acquire 11% in the JV with Italian ERG

(LUKOIL) -- LUKOIL received a notice today that the Board of Directors of the Italian ERG resolved to sell to LUKOIL 11% in the joint venture to operate the ISAB refining complex located in Priolo (Sicily).


This is a partial exercise of ERG's option to sell its stake according to the agreement of 2008 to create a joint venture.


Thus, LUKOIL's stake can be increased from 49% to 60% and the Company's total refining capacities will be increased by more than 11% to 79.5 million tons per year.


The transaction closing is expected at the end of the first quarter of 2011. The transaction amount will reach EUR 205 million, excluding inventory.


MRC

Borouge awards contract for cross-linkable PE unit

(prw) -- Borouge has awarded a $169m contract to Hyundai Engineering and Construction of South Korea to build a cross-linkable polyethylene (XLPE) unit at its petrochemical plant in Ruwais.


The 80,000 tpa plant is an added-value complement to the low density PE unit, enabling the manufacture materials for cable insulation.


Borouge said this was the final major contract to be awarded for the Borouge 3 mega-expansion project already underway at Ruwais in the United Arab Emirates.


Borouge 3 would be operational in mid-2014 and more than double the plant's annual capacity to 4.5 million metric tons per year, creating the largest integrated polyolefins plant in the world.


MRC

Saudi joint venture with Dow for SR1.8 bln n-Butanol plant

(Plastemart) -- Saudi Kayan Petrochemicals has signed a preliminary agreement with Saudi Acrylic Acid Co and a joint venture between U.S. Dow Chemical and Saudi Aramco to build a 330,000 tons n-Butanol plant in the kingdom. The three partners will each hold an equal stake of 33.3% in the plant and would share the costs of the project estimated at SR 1.8 bln. The plant will be located in Jubail and operated by SAAC, with production due to start in H2-2014.


MRC