Oman Oil to build USD800m petchem plant in Sohar

(constructionweekonline) -- Oman Oil Company, the energy investment arm of the Oman government, has announced plans to build an USD800m (OMR 308m) petrochemicals plant in Sohar and one of the largest crude storage facilities in the world at Ras Markaz in Duqm.

The petrochemicals plant will produce purified terephthalic acid (PTA) and polyethylene terephtalate (PET), according to H E Nasser bin Khamis al Jashmi, the chairman of the company and Undersecretary of the Ministry of Oil and Gas.

Jashmi said that the new PTA-PET plant in Sohar would have a capacity of around one million tonnes per year. The investment in this project will be about USD800m.

Jashmi did not reveal whether the new plant will be a wholly owned subsidiary of Oman Oil or a joint venture project.

It is understood that the planned PTA/PET project is likely to source its feedstock requirements from the aromatics scheme at Sohar. The latter has a production capacity of 818,000 metric tons per annum of paraxylene and 198,000 metric tons of benzene.

Paraxylene is the primary feedstock used in the manufacture of PTA and PET.

PTA is a key raw material component in the polyester value chain, used mainly for the polyester industry to produce fibres and yarns.
MRC

MOSCOW (MRC) -- A serious decline in demand has made European producers reduce PE prices for October shipments. Price negotiations has just begun. However, the prices were voiced by EUR30-50/tonne down from September, report MRC analysts.

The contract ethylene price in Europe for October shipments was reduced by EUR10/tonne from September level. Yet, European makers had to decrease prices more considerably amid declining demand.

The discussion of export prices for the markets of the CIS countries has just started this week, but some market players report that they managed to get a price reduction by EUR40-50/tonne from September level.

Deals for October HDPE shipments are negotiated at the level of EUR1,340-1,400/tonne, FCA. Price offers for LDPE were voiced on average at the level of EUR1,400/tonne, FCA. Many importing companies do not rush to purchase polyethylene from Europe expecting the further reduction of export prices in the second half of October.
MRC

MOSCOW (MRC) -- The Asian PVC market faced the first signs of sluggish demand, which in the near future may result in price cuts. Some makers are trying to keep prices above USD1,000/tonne, CFR, as per MRC analysts.

Last week the Asian market of PVC saw the first signs of weakening demand. According to unconfirmed information, on ample inventories PVC some suppliers cut their prices for October shipment to USD980-1,000/tonne, CFR. However, it is early to make conclusions on the October prices in the region.

The buying activity in the PVC market in China was very low last week. On the eve of National holidays, many market participants hold back from purchases of the resin, the companies expect the downtrend in the market.

Prices in the domestic market were at Yuan 6,600-6,700/tonne, FD, and Yuan 6,850-7,250/tonne, FD, for acetylene and ethylene resins. The domestic prices are likely to change after the holidays.

Buying activity in South-Eastern Asia last week was the low in response to price uncertainty and the saturation of markets in China and India. Some regional suppliers are trying to keep October prices above the level USD1,000/tonne, CFR.

MRC

MOSCOW (MRC) -- Ufaorgsintez stops one of the two reactors for the production of low-density polyethylene (LDPE) for technical reasons. The suspension of production will last about two weeks, as per MRC analysts.

In the coming days Ufaorgsintez stops one of the two reactors for the production of low-density polyethylene due to technical difficulties. According to unofficial information, the suspension of the production of 158 LDPE will take about two weeks.

The company already stopped the production of LDPE for scheduled two weeks maintenance in July. In September, the production of 158 LDPE operated at a reduced capacity, and in October the company had to halt the production.

Ufaorgsintez runs two reactors for the production of LDPE with total annual capacity of 100,000 tonnes. In January - August, the total volume of low-density polyethylene at the plant in Ufa amounted to 59,300 tonnes.

MRC

(apic-online) -- Jiaxing Petrochemical Co. Ltd is operating its new purified terephthalic acid (PTA) plant at lower rates.

Located at Jiaxing, Zhejiang province in China, the new PTA plant has a production capacity of 1.5 million mt/year. The company started commercial production at the plant on September 2, 2012.

The plant is currently operating at 70% production capacity rates. The company is likely to increase the operating rates to 100% by the end of the current week.
MRC