Technip along with its partners to construct a petrochem complex in Mexico

(plastemart) -- Technip and its joint venture (JV) partners Odebrecht and ICA Fluor were awarded an engineering, procurement, and construction contract to build a USD2.7bn petrochemical complex in Mexican state Veracruz by Braskem Idesa,which is a joint venture company of Braskem and Grupo Idesa.

Under the contract, the partners will also construct two high density polyethylene (HDPE) plants using INEOS Innovene technology and a low density polyethylene (LDPE) plant using BASEL Lupotech technology.

ICA Fluor, Odebrecht, and Technip together will design and build the new Etileno XXI petrochemical complex which includes constructing an ethane-based ethylene cracker facility with a capacity of producing one million tonnes per year. The JV will employ Technip's proprietary technology at the ethylene cracker facility. The ethylene plant is expected to be ready for start up in June 2015.

As MRC informed earlier, Technip was also awarded two contracts, worth a total value of about USD50 million, for the front-end engineering design (FEED) services of two refineries in Kazakhstan. Besides, ZapSibNeftekhim LLC, an affiliate of JSC Sibur Holding, awarded two front-end engineering and design (FEED) contracts to Technip for polyethylene plants located in Tobolsk, in the Tyumen region of Russia.
MRC

MOSCOW (MRC) -- Russian makers in September reduced the production of polypropylene (PP) to 61,000 tonnes, down 18% from August. Decline in production resulted from the scheduled shutdowns of three production sites, according MRC ScanPlast.

Last month, the total volume of Russian producers of polypropylene decreased by 18%, from August and amounted to 61,000 tonnes. The decline in the PP production in September was due to the scheduled shutdowns of three production plants: Stavrolen, Neftekhimiya (Kapotnya) and Tomskneftekhim.

Also it is worth noting the decrease of capacity utilization of Nizhnekamskneftekhim in the second half of the month due to the planned shutdown.

Over the nine months, Tomskneftekhim and Ufaorgsintez increased the production of polypropylene to 100,000 tonnes and 91,000 tonnes respectively. Nizhnekamskneftekhim actually kept production at the level of last year - about 158,900 tonnes. Stavrolen and Neftekhimiya (Kapotnya) reduced production volumes by 43% and 4% to 55,000 tonnes and 82,100 tonnes.

The structure of PP production by grades over the nine months of this year has not changed significantly. The share of homopolymers of propylene still makes about 82% from total production.

In general, in January-September the total production of polypropylene in Russia amounted to 487,000 tonnes, down 5% year on year. The launch of the new capacities of Polyom in Omsk is expected to be started in November. The first stage of the polypropylene plant Tobolsk-Polymer (Sibur) is expected to be launched in Q2, 2013.

MRC

MOSCOW (MRC) -- Russian producers are reducing their PET price offers for the domestic market following declining demand from converters, according to ICIS-MRC Price report.

Russian PET prices for the domestic market went down to Rb59,000-61,000/tonne, CPT Moscow, including VAT. According to sellers, the demand in the Russian spot market keeps falling in October. In the low season, granulate consumption by PET-preform makers is rather weak. Meantime, shipments from the plants for contract clients are stable, said a source.

In the Central region, the cost of Belarusian PET contracted directly from the plant, including delivery and VAT, made Rb56,100-57,400/tonne, CPT Moscow. Consumers observed that such a price offer is rather interesting for the market, however, the current contract volumes are quite enough to meet the needs of preform makers. Due to this, spot sales of Belarusian PET in Russia remain insignificant.

Price offers of Asian Pet for Russian converters have not changed. The cost of Chinese PET, including delivery to the Central region, given the current exchange rate of 1USD=31RUB, will make Rb57,600-58,400/tonne, CPT Moscow, including VAT (excluding the cost of borrowing monetary resources). The delivery dates, during which the given material is to arrive to the customer’s warehouse, makes on average 45 days.

According to some converters, the real level of spot deals in the market can be Rb58,000/tonne, CPT Moscow, including VAT, at the moment. Consumers expect the further price reduction of bottle PET in November. Demand for the material will remain sluggish which will force producers and traders to make concessions to the buyers.
MRC

(EndtheLie) -- German authorities issued a disaster alert following an accident at a chemical plant in the Bad Fallingbostel, Lower Saxony operated by Kraft Foods. 1800 people were removed from the area. Workers at the facility accidentally poured nitric acid into a tank, which contained sodium hydroxide, and caused a chemical reaction. The nitrous gases which participated in the reaction are considered extremely dangerous if they come into contact with the human body.

About 250 factory employees were evacuated, along with 800 people living in the immediate vicinity. However, shortly afterwards, the risk zone was enlarged to around 500 meters in radius, and a further 1,000 people abandoned their homes.

Firefighters are trying to cool the container down, to avert an explosion and a critical spike in temperatures. After the firefighters tried for hours to tackle the situation, the situation worsened on Tuesday morning, the Berliner Post reported, with additional rescue teams called from nearby Hamburg.

Kraft Foods, which split many of its brands into a separate company called Mondelez International on October 1, 2012, is an American multinational confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than USD1 billion worldwide.
MRC

(Reuters) -- A French court has rejected two bids to take over the Petit-Couronne oil refinery, the oldest in France, sending it into liquidation unless a new offer is submitted by November 5. The refinery was operated by insolvent oil company Petroplus.

French Industry Minister Arnaud Montebourg, who has been actively trying to rescue the plant, said in a statement the government would continue efforts to find a buyer.

The commercial court in Rouen rejected two bids, including one from Dubai-based NetOil, the unlisted group of Middle Eastern businessman Roger Tamraz, and from Hong Kong-based Alanfandi Petroleum Group. The NetOil bid was regarded by the refinery's trade unions as the most likely to succeed.

Petroplus Holdings AG is Europe's largest independent oil refiner by capacity. Petroplus ran out of cash in late January after struggling for months with weak demand due to the economic slowdown in Europe and overcapacity amid tighter credit conditions, high crude prices and competition from Asia and the Middle East.

The French government, which wanted to keep the refinery in operation in a bid to protect jobs, brokered an agreement with Royal Dutch Shell, which committed to buy refined products from the plant for six months.

Independent refiners made offers to take over the refinery, but the court rejected these bids, the spokeswoman said, declining to provide further details.
MRC