YPFB grants Tecnimont a contract for engineering study of its new ethylene and PE complex

MOSCOW (MRC) -- The Italian company Tecnimont SpA was awarded an engineering contract by YPFB Corporation for a plant to produce ethylene and polyethylene (PE) in southern Bolivia, according to the YPFB press release. The contract is worth USD3.8 million.

The estimated production capacity of a new petrochemical complex is about 600,000 tonnes of PE of different grades for various applications. The raw material to be used is ethane with the annual consumption of approximately 756,000 tonnes. The unit is scheduled to be on steam in 2017.

The conceptual engineering study should be completed in the first half of 2013, the company said.

"Basically the conceptual engineering study develops the technical and economic aspects of the project and allow YPFB Corporation make strategic decisions to advance to the next stages of the project," said the project leader Montano Igmar.

Tecnimont group has extensive experience in the petrochemical industry in general, particularly in the engineering and construction of petrochemical and polymers facilities such as YPFB Corporation project. It has already built 140 polyethylene (PE) and polypropylene (PP) plants worldwide. Among its recent experiences are the petrochemical complexes in Saudi Arabia, Qatar, Germany, India and Russia, to name a few.
MRC

(msn money) -- A leading global producer of styrenic block copolymers, Kraton Performance Polymers, reported financial results for the 3rd quarter, 2012.

The company's sales volume increased by 2.2% to 79.3 kilotonnes from 77.6 kilotonnes year-on-year, while the sales revenue decreased USD59.4m in the 3rd quarter, 2012, year-on-year, mainly due to decreases in average selling prices, following declines in raw material costs, primarily butadiene, and a USD25.0m negative impact from changes in foreign currency exchange rates.

Adjusted EBITDA was USD13.2 million in the third quarter of 2012 compared to USD71.1 million in the third quarter of 2011. Net income declined USD58.6 million to a net loss of USD15.5 million.

We remind that Kraton Performance Polymers Inc. has recently exited its joint venture deal with Taipei, Taiwan-based Formosa Petrochemical Corp. (FPCC), seeking instead to expand hydrogenated styrenic block copolymer (HSBC) manufacturing capability in Asia on a stand-alone basis, as MRC informed earlier.

Kevin M. Fogarty, President and Chief Executive Officer has commented on the project: "Following continued delays associated with securing the environmental permit required for our proposed joint venture with Formosa, we did not renew the framework agreement upon its expiration on September 30, 2012, and we are now fully engaged in the evaluation of alternate sites in the Asia Pacific region, where we plan to build our 30 kiloton HSBC plant on a stand-alone basis. We are confident that we have the liquidity and capability to construct the plant on a stand-alone basis, and we look forward to providing you with updates on project location and timeline in the near future."
MRC

(plastemart) -- The output of petrochemicals in the UK has been steadily falling in the first half of the year as the country headed into recession, as per BMI report.

BMI estimates that chemicals output declined by 5.5% year-on-year in Q2-12 and the situation has deteriorated markedly since. The trends were in line with expectations of a double-dip recession in the chemical industry and with broader economic trends. As MRC reported earlier, an increasing number of petrochemical plants in Europe could be closed in the next few years due to lower margins of producers.

Coupled with refinery capacity closure that will impact on domestic naphtha availability, there is a threat that the recession will have a long-term impact on the British chemicals industry, according to BMI's report.
MRC

(plastemart) -- Mexico’s Pemex output of petrochemical products in Q3 decreased by 17% year on year and made 1.08m tonnes.

The fall was due to the temporary suspension of aromatics production as a result of maintenance on a unit at the La Cangrejera complex in the state of Veracruz. The shortfall was partly offset by an increase in methane derivatives, mainly ammonia and methanol; ethane derivatives, mainly ethylene and polyethylenes (PE); and propylene and its derivatives.

Petroleos Mexicanos or Pemex is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene, and diesel.
MRC

(plastemart) -- Formosa Petrochemical has resumed operations at its only refinery’s secondary unit in China. The 80,000 bpd residue desulphurizer unit (RDS) was closed for unscheduled maintenance on 12 October after a leak was reported.

The company's 540,000 bpd Mailiao plant will be operated at about 96.5% capacity in November following the RDS restart, which was being operated at less than 95% during the maintenance period.

The company is also operating its two 84,000 bpd residue fluid catalytic crackers (RFCCs) at around 80% of its capacity because of the unplanned maintenance closure of the secondary unit.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The Company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC