Russia's Gazprom to delay Shtokman project

(upstreamonline) -- The stalled Shtokman gas field project off Russia is likely to be further delayed as partners thrash out a new development concept based solely on liquefied natural gas exports, a top Gazprom executive has confirmed.
The Russian gas giant, which leads the Shtokman Development Consortium, decided earlier this year to drop the original plan to divide Shtokman’s exports equally between LNG and pipeline exports due to reduced gas demand from debt crisis-hit Europe.

The move means that operator Gazprom, together with foreign partners Total and Statoil, now has to revise project plans.

Industry observers have earlier said the scheme, scheduled for start-up in 2016, could be pushed back another year as fresh tenders would have to be issued for offshore facilities and LNG plant.

Confirming the possibility of a postponement, Gazprom’s executive vice chairman Alexander Medvedev was quoted as saying by Reuters on Wednesday: “Unfortunately, there will be a slight delay.”

It comes as the consortium is set for a reported shake-up ahead of a 1 July deadline for expiry of the existing partnership agreement that could see it being disbanded and reconstituted as a new entity, possibly with Shell coming in as a partner.
MRC

MOSCOW (MRC) -- In May imports of PE to Russia made about 57,400 tonnes. The total year-to-date import reached the level of 265,400 tonnes, 13% down year-on-year, as per MRC analysts.

Dependence of Russian PE market on imported volumes keeps on growing this year. Last month imports of PE hit the level of 57,400 tonnes. All PE grades showed an increase of import in May.

HDPE import exceeded 30,400 tonnes in May. Last month’s imports of pipe and blow moulding PE rose and reached the level of 9,400 and 5,000 tonnes, respectively. In general, year-to-date HDPE imports grew by 11% year-on-year and amounted to 139,500 tonnes.

LLDPE imports rose to the level of 12,400 tonnes last month. A decrease of film LLDPE imports was seen over the past three months. In May supply of film PE was reduced to 9,800 tonnes. At the same time the seasonal growth of demand secured a major rise of LLDPE import volumes for overall products produced by the rotational moulding method, which made 1,500 tonnes in May. The year-to-date import of LLDPE to Russia amounted to about 59,500 tonnes, 13% up.

Since February LDPE import to Russia has remained quite stable and made on average about 10,500 tonnes. This year the dependence of Russian market on HDPE imports has increased more significantly, than on the other grades of PE. The year-to-date imports made about 49,400 tonnes, 19% rise year-on-year.

In general, the year-to-date imports of PE and copolymers of ethylene made about 265,400 tonnes, 13% rise year-on-year.

MRC

MOSCOW (MRC) – Import of suspension PVC to Ukraine dropped to 5,900 tonnes in May. The year-to-date import of suspension made about 25,300 tonnes, 58% down year-on-year, as per MRC analysts.

A low demand for PVC from the converters this year as well as a stable production of the domestic producer Karpatneftekhim (Lukoil group) secured the reduction of imports to Ukraine in May. Following the results of May the total volume of suspension PVC exports to the Ukrainian market declined to the level of 5,900 tonnes.
In April this index made about 7,400 tonnes and was mainly secured by some major producers of window profile since they wanted to make additional inventories ahead of the season. In April high export prices and a lower price level in the local market made the Ukrainian traders significantly reduce their purchases of PVC from the USA.

In May imports of the North American resin slumped three-fold from April and amounted to about 1,000 tonnes. Yet, in late May the Ukrainian traders began actively contracting resin from the USA on a major fall in prices of PVC exports, report the analysts of MRC.

Conversely, last month’s shipments from Europe grew and made about 4,800 tonnes. A further increase of imports of the European PVC is expected in June due to a major decline of export quotations and weakening of the euro exchange rate.

In general, the total year-to-date import of suspension PVC to Ukraine made about 25,300 tonnes, 58% down year-on-year.

MRC

(Plastics Today) -- The Energy Department (DOE; Washington, DC) has announced investments that support American leadership and global competiveness in manufacturing, including some plastics-related research.

The DOE awarded more than USD54 million - everaging approximately an additional USD17 million in cost share from the private sector-for 13 projects across the country to advance transformational technologies and materials that can help American manufacturers "dramatically increase the energy efficiency of their operations and reduce costs."

Projects selected for awards of particular interest to the plastics sector include research into a new continuous manufacturing process to make high molecular weight, high thermal conductivity polyethylene fibers and sheets to replace metals and ceramics parts in heat transfer equipment. Also, because polyethylene's density is 35% less than aluminum, the new materials developed as part of this project could generate fuel savings in vehicle applications. The Massachusetts Institute of Technology (MIT; Cambridge, MA), will carry out the research with a DOE award valued at USD1 million.

The Dow Chemical Company (Midland, MI) will be sponsored to the tune of USD9 million develop a lower cost carbon fiber production process that uses polyolefin in place of conventional polyacrylonitrile as the feedstock. Low-cost carbon fiber has widespread application in automobiles, wind turbines, and various other industrial applications.
MRC

(Plastics) -- Polyester film producer Polyplex has agreed to acquire all assets of Scholle's Vacumet Plastics division in Austell, Georgia, US, for an undisclosed amount.

The acquisition is set to expand Polyplex's metallised product range to include all plastic substrates and enable the company to offer a varied packaging range and product portfolio to its customers in the region. According to Polyplex US, the acquisition fits into the company's global growth strategy, which includes the construction of a resin manufacturing plant in Decatur, Alabama, a thick film PET plant in Thailand and a bottle-grade resin plant in Turkey.
Vacumet Plastics, which supplies metallised plastic film for consumer products and packaging components, has an annual production capacity of over 30 million pounds of film.

Scholle's sale of the division is said to be in line with the company's strategy to concentrate on augmenting its core performance packaging solutions business.

The company concentrates on flexibles, bag-in-box packaging, aseptic processing, filling technology, dispensing solutions and other emergent packaging offerings. The acquisition is scheduled for completion in July 2012.
MRC