PP prices in Russia continue to increase

MOSCOW (MRC) - To the end of March prices on PP on Russian market have broken another record and reached the level of 53.000 - 58.000 RUB/mt - this information was stated in MRC weekly Price report.

Insufficient supply on the market, seasonal demand increase and upcoming suspenses for scheduled maintenance in Kapotnia and Ufa - all those factors cause the future PP prices increase in Russia. Some Russian producers have already made the prices on PP for shipping in April public.

Moulded PP got more expensive to April to 56.000 - 58.000 RUB/mt, including VAT, FCA, at the same time demand of the material on the market is still limited. The prices on raffia have essentially increased. It is expected, that all the Russian producers will define the prices for April before the end of this week.

European producers also intend to increase the prices on PP in April on EUR 50-70/mt. Limited supply of the polymer on European market continues to have an influence on price increase. Besides, some producers from Eastern Europe have stated about necessity of suspense for scheduled maintenance in April. That will make the deficit in region stronger. In Asia the prices continue to decrease as a result of polypropylene surplus in the region, some producers are planning to lower the capacities charging to decrease polymer supply on the market.

MRC

More information about PP market in Russia is presented in our Price reports.

March 29 (Bloomberg) -- PetroChina Co. plans to spend at least $60 billion in the next decade on overseas acquisitions, challenging Exxon Mobil Corp. and BP Plc in the race to control oil and gas fields.

⌠Ten years ago, PetroChina was a state-owned oil company, but now we have a goal of becoming an international, integrated energy company, Jiang Jiemin, chairman of the world's largest company by market value, said in a March 25 interview, where he announced the investment plan.

Beijing-based PetroChina spent almost $7 billion in the last year to buy refineries and reserves in Australia, Canada, Singapore and Central Asia. The expansion pits PetroChina against Irving, Texas-based Exxon, which agreed to pay about $30 billion for U.S. gas producer XTO Energy Inc. in December.

⌠Every five, 10 years or so, you'll get the occasional $30 billion deal, but this is at least $6 billion every year and that's significant for any major oil company, said Neil Beveridge, an analyst at Sanford C. Bernstein Ltd. in Hong Kong. ⌠This puts PetroChina on par or exceeding some international oil majors in spending.

Exxon is counting on gas to provide the bulk of its future growth with the acquisition of XTO Energy as well as new developments from the South Pacific to the Celtic Sea. BP, vying with Royal Dutch Shell Plc as Europe's biggest oil company, paid at least $8.3 billion to acquire assets over the past 12 months. PetroChina teamed up with Shell last week to buy Australian gas producer Arrow Energy Ltd. for $3.2 billion.

MRC

In February low level of purchase activity was observed on the domestic market, caused by low demand on complete products and lack of sufficient circulating assets. In spite of essential export ships (6740 tons), PE supply on Ukrainian market was sufficient.

Calculated PP-homo consumption in February decreased on 47% in comparing with January. Import supplies of homopolymer of propylene were reduced on 11%. The most essential reduction touched Russian materials supply (-36%), which was caused by reduction of export programs by some Russian producers.

Import supplies for sheet extrusion sector have decreased on 17%. Reanimation of material supplies into this sector should be expected in April, which is caused by seasonal purchase activity increase in disposable dishes production sector.

MRC

More information about PP market is present in company's Monthly reports.

March 29 (AP) -- Sinopec, Asia's biggest refiner by volume, said profit more than doubled in 2009 on lower crude oil costs and a revival in demand amid China's stimulus-fueled recovery.

Sinopec, also known as China Petroleum & Chemical Corp., said profit for 2009 rose to 61.3 billion yuan ($8.97 billion) or 0.7 yuan (10 cents) a share. Its profit in 2008 was 28.4 billion yuan.

The company has benefited from the government's decision to ease controls that battered Sinopec in previous years by preventing it from passing on record crude costs to consumers. Beijing raised state-set prices of gasoline and diesel several times last year to reflect higher global oil costs.

Sinopec said it paid an average of $61.50 per barrel for crude oil last year, down 36.6 percent from the year before.

But lower prices also took a bite out of Sinopec's revenue, which fell 10 percent to 1.35 trillion yuan ($197.7 billion) from 1.5 trillion yuan the year before.

MRC

March 29 (oilandgasonline.com) -- Emerson Process Management and LUKOIL Group, one of the world's largest private oil companies, have signed an agreement to modernize 13 refining and petrochemical facilities in Russia and Eastern Europe.

Under the agreement, which extends through 2014, Emerson will provide equipment, software, and services as part of LUKOIL's enterprise-wide strategy to modernize process automation at their oil and gas refineries, petrochemical plants, and related facilities. LUKOIL operations to be upgraded include Stavrolen and Saratovorgsintez in Russia, Neftochim Bourgas in Bulgaria, ZAO Lukor in Ukraine, and Vars in Latvia, as well as additional facilities in Romania; in Ukraine's Odessa; and in Russia's Perm, the Volgograd region, and the Komi Republic.

"Modernizing these facilities using Emerson's advanced technologies and services will enable us to improve product quality and reduce environmental impact right away ≈ and gain a significant advantage over our competitors in the future," said a LUKOIL representative. "The upgraded automation is also expected to help LUKOIL improve process performance, increase production of high-quality diesel fuel, and balance refining output with oil production."

LUKOIL chose Emerson because of the two companies' successful experience in cooperating on previous projects, as well as Emerson's technologies and full scope of design, training, installation supervision, start-up, and commissioning services. The LUKOIL facilities being modernized will be upgraded to Emerson's PlantWeb digital automation architecture with Smart Wireless technology. The architecture includes DeltaV digital automation systems, DeltaV SIS process safety systems, and AMS Suite predictive maintenance software, as well as Fisher control valves, Micro Motion Coriolis flow and density meters, and Rosemount measurement instruments.

"Our proven ability to implement comprehensive but easy-to-use automation solutions will enable us to help LUKOIL realize its strategic objectives," said Steven A. Sonnenberg, president of Emerson Process Management. "We have enjoyed a strong relationship with LUKOIL for several years and look forward to helping them further improve the performance of these facilities."

MRC