Kuwait's USD9 bln refinery and petrochemical complex gets final go-ahead for major Chinese refinery

(Arabian Oil and Gas) -- The mayor of Zhanjiang, the Southern Chinese city which will host Kuwait's US$9 billion refinery and petrochemical complex, pledged to strive for officially putting the project into operation on the eve of the opening of the Guangdong Provincial Games in 2014.

"This is also a common dream of entire 7.5 million people in our city," Zhanjiang Mayor Ruan Risheng said, adding that the project will play a significant role in the economic and social development of whole Guangdong Province in general and the city's petrochemical industry particularly, according to the Zhanjiang Daily.

The joint venture between KPC and Sinopec entails a 15 million-tonne-a-year (300.000 barrels per day (bpd)) refinery, a 1 million-tonne-a-year ethylene plant and related utilities, as well as support facilities such as a crude jetty, product oil and chemical jetties, a bulk jetty and oil product pipelines to an initial station, the Chinese government has said earlier.

MRC

(Lukoil) -- Lukoil's net income made USD 9.006 bln in 2010, which is 28.5% higher compared to 2009. EBITDA was $16.049 mln, which is 19.1% higher y-o-y. Sales revenues were USD104.956 mln (+29.4% y-o-y). Positive dynamic of financial results was mainly due to a sharp increase in hydrocarbon prices in2010 compared to 2009.

In 2010, crude oil production of Lukoil Group totalled 95.99 mln t. Natural and petroleum gas output available for sale increased by 24.5%, to 18.55 bcm. Meanwhile, the production of gas in the major gas field - Nakhodkinskoe field - amounted to 8.15 bcm in 2010, which is 37.2% higher y-o-y. The growth was mainly due to increase in purchases of our gas by Gazprom starting from the second half of 2009.


MRC

(Petainer) -- Petainer has launched alternative to metal kegs for draught beverages. It is a lightweight beverage container manufactured in recyclable PET (Polyethylene Terephthalate) which is designed for one-way use. The keg is available with one-way, low cost fittings which allow it to be connected to existing tapping systems for draught beer.

Petainer Kegs, unlike other plastic variants and metal kegs, can be supplied either complete and ready for filling or as preforms' that can be blown near the point of use. This second option provides further environmental and economic benefits.

The benefits of Petainer Kegs compared with metal kegs include lower total costs of ownership, reduced environmental impact, new market opportunities and easier response to short-term peaks and troughs in demand.
MRC

MOSCOW (MRC) -- Low buying activity in the world markets force EPS producers to correct price offer, according to ICIS-MRC Price Report. From the year start the growth of quotations for raw materials for EPS production exceeded all expectations. In particular, gain in price for styrene exceeded USD 200/t in Europe and USD 150/t in Asia. Considerable increase of price for raw materials made EPS producers increase price offer for their products.

Traditionally, Q1 of the year is characterized with low demand for products made of EPS, especially in the Asian markets. In terms of considerable growth of prices converters contracted volumes necessary for current work trying not to increase stock resources with expensive material.

EPS producers oriented at level of marginal profit higher than USD 150/t, though low demand for products resulted in forced growth of stock resources of materials. Term of EPS storage is not that long, e.g.: for the Asian material it makes to 6 months. The present conditions make producers decrease price offer in order to lower stock resources of materials.

At the same time a more considerable growth of materials quotations in Europe compared to Asia resulted in imbalance of EPS price offers in Europe and Asia. As per market players, recently the difference reached EUR 150 - 200/t. In such situation producers are forced to make concessions, otherwise they may lose some volumes of EPS sales.

Russian companies now face a complex situation. On the one side, in early March the supplies of materials contracted in February will be over, and new supplies are expected not earlier than in April. At the same time some grades of EPS produced by SIBUR-Chimprom have already been accepted and the contracts for multiple deliveries have been concluded with some Russian enterprises. It is expected that by the beginning of seasonal activity in the Russian market of EPS price offer for the material should decrease compared to the current quotations.

MRC

MOSCOW (MRC) -- Sales of volume polymers (polyethylene, PVC, polypropylene, polystyrene and PET) grew by USD2 bln in Russia last year. In physical terms the growth of market made 28%, and its total capacity exceeded 4.5 mln t, according to MRC Annual reports.

Polyethylene sales grew by 420 KT (by 32%), PVC sales - by 247.5 KT (34%), polypropylene - by 141 KT (22%%), polystyrene - 88 KT (29%), PET - by 98 KT (22%). Now average annual consumption of volume polymers by one Russian reached its historical maximum and makes 32 kilo per person.

A positive factor last year was the growth of domestic production of base polymers more than by 500 KT. New capacities were launched in Salavat, Nizhnekamsk, Kazan and Perm.

Despite positive dynamics in polymers production, Russian market still depends on imports which made about 1.5 mln t. Converters are forced to use in their work more than third part of imported polymers. In 2010 in many directions record parameters of imports were fixed: PE - 457 KT, PVC - 485 KT, PP - 198 KT.

Introduction of Common customs tariff had the strongest effect on polymer market last year. In 2011 analysts also expect considerable changes but they will be connected with possible Russia's joining WTO.

MRC