Lukoil field was hit by blaze

MOSCOW (MRC) -- A fire triggered by a release of hydrocarbons was reported to have broken out earlier this week at a Lukoil-operated field in the Timan-Pechora region of Russia, said Upstreamonline.

The blaze at the Vostochno-Sarutayuskoye field, located about 150 kilometres from regional centre Naryan-Mar, started on Tuesday morning after an uncontrolled emission of oil and gas from a facility, the Barents Observer reported, citing Russian-language media sources.

It was spotted by helicopter pilots flying over the Arctic production province and firefighters from the neighbouring Inzyreyskoye and Yuzhno-Khilchuyu had to be called in to tackle the fire, which Lukoil said was extinguished after about four-and-a-half hours.

Company officials said the blaze did not result in any damage to the local environment.

Russia’s environmental watchdog Rosprirodnadzor has now launched an investigation of the incident.

The Russian oil company Lukoil is holding negotiations with the Ukrainian government to remove technical obstacles preventing the start of the Odesa oil refinery belonging to the company, Lukoil President Vagit Alekperov told Interfax on the sidelines of the World Economic Forum in Davos.

The Odesa oil refinery was stopped in October 2010 in light of an economic situation on the Ukrainian oil product market and the amendment of the oil shipment procedure.

Lukoil is Russia's second largest oil company and its second largest producer of oil. Headquartered in Moscow, Lukoil is the second largest public company (next to ExxonMobil) in terms of proven oil and gas reserves. The company has operations in more than 40 countries around the world.

MRC

MOSCOW (MRC) -- India's state-run GAIL Ltd is in talks with India's leading refining companies including the Essar Group and HPCL-Mittal Energy Ltd (HMEL) for setting up a Rs. 20,000 crore plus naphtha based petrochemical project in the country with a capacity of 1 mn tpa, reported Hindustantimes.

HMEL is a joint venture company formed by Hindustan Petroleum Corp Ltd (HPCL) and ArcelorMittal chairman LN Mittal. The company also plans to diversify into shipping and has already lined up an investment of Rs 7000 crore for purchasing 6-7 large gas carriers or charter hire for importing LNG from the US. Talks are on between GAIL and Shipping Corporation of India, MOL, Hyundai and others.

"We have already lined a Rs. 40,000-crore investment plan for the next three years and are also looking at the possibility of setting up a Rs.20,000-crore naphtha-based petrochem project," BC Tripathi,chairman and managing director, Gail, told HT. Tripathi, however, said the company is yet to finalise the location of its new petrochem project. "We are in talks with Essar, HMEL and HPCL for this new petrochem project and will decide on the location only after the selection of the JV partner."

We remind that, as MRC informed earlier, OPaL and Gail are planning to add more than 1.5 mln tpa of new polyethylene (PE) capacities in 2013 while Brahmaputra Cracker and Polymer Ltd (BCPL) will add another 220,000 tpa of PE capacity. Besides, in October, 2012, Gail signed a 20-year deal to buy liquefied natural gas (LNG) from the Singapore unit of Russia's state-owned gas giant, Gazprom. The Gail/Gazprom deal may also help revive development of the long-delayed Shtokman natural gas field in Arctic Russia, which Gazprom has been delaying since the beginning of the year.
MRC

MOSCOW (MRC) -- Arnitel Eco thermoplastic copolyester from DSM, the global Life Sciences and Materials Sciences company, has been used successfully in soft touch surfaces by a world leading manufacturer of consumer electronics, according to the company's press release.

Applied to the surface using a 2K molding technique, enabling cost efficient mass production, Arnitel Eco helps to create an almost skin-like feeling to the surfaces of electronic devices, like notebooks and tablets. The application represents the first use in consumer electronics of this breakthrough material.

Arnitel Eco is a high performance thermoplastic copolyester (TPC) with 20-50% of its content derived from renewable resources. These renewable resources are made from rapeseed oil. Arnitel Eco delivers a carbon footprint reduction of up to 50% when compared to classic copolyester solutions, thus supporting the need of brand owners for more sustainable material solutions.

Francis Aussems, Project Manager Bio-Polyesters for DSM, says: "In consumer electronics, there is a growing awareness of more sustainable material solutions. DSM is at the forefront with the the development of halogen free materials for cables and connectors, the introduction of recycled materials, and, last but not least, the introduction of bio-based polymers like Arnitel Eco and EcoPaXX."

As MRC reported earlier, in late 2012, DSM had developed a new thermoplastic elastomer - Arnitel VT - for production of waterproof and highly breathable ultrathin membranes to be used in outdoor clothing

Besides, we remind that in November DSM entered into an agreement with Borealis, Austria, for sale of DEXPlastomers, a joint venture of DSM and Exxon Chemical Holland Ventures. Subject to customary approvals and notifications, the transaction is expected to close in Q1 2013.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- Tokyo- Mitsui Chemicals said it has signed a licensing agreement with Kemira giving Kemira "geographical exclusivity" for the production of acrylamide (AAM) using Mitsui’s proprietary bio-process technology, said Apic-online.

Mitsui noted that its AAM manufacturing technology, which uses bio-catalysts, has been "highly evaluated for its stability in producing high-quality products, when compared with existing copper catalyst chemical processes, and its low burden on the environment."

Separately, Kemira said it has completed a two-year, multi-million euro expansion of its North American polymer production facilities, and added that the agreement with Mitsui will strengthen its polymer product line globally. The expansion resulted in a 60% capacity increase.

As MRC wrote earlier, Mitsui and Dow Chemical have decided to delay construction of a USD1.5 bn sugarcane-to-plastics facility in southeastern Brazil. Dow has chosen to focus on more profitable projects elsewhere, in particular using shale gas reserves in the US as cheap feedstock.

Kemira is a chemical industry group that consists of three main segments. Kemira is headquartered in Helsinki, Finland. Kemira became the world's biggest provider of the pulp and paper chemicals after its acquisition of the pulp and paper chemical operations of Lanxess.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.

MRC

MOSCOW (MRC) -- The Saudi petrochemicals industry will lead Middle East's rise as one of the most important petchem hubs in the world. But low natural gas prices in North America could eat into the region's market share, said Zawya.

"Over the next several years, the most rapid growth will occur in the emerging nations of Asia-Pacific, Africa and the Middle East, Emerging Europe, and Latin America," said American Chemistry Council, a trade association. "The most notable growth will occur in China and India. The chemical industries of the emerging nations will increase 4.9% in 2012, 6.8% in 2013, and 7.6% in 2014."

Middle East petrochemicals production will rise 5.1% each year till 2017, according to ACC estimates, beating global output growth of 4%, but below other emerging markets.

However, Saudi Arabia and the Middle East remains the lowest cost petchem hub in the world. Analysts also believe it is the fastest growing sector in the region. But that's about to change.

"One of the key investment debates around the Saudi Petrochemical sector recently has been on future gas price levels," said Nitin Garg, analyst at SICO.

As MRC wrote earlier, Sabic, the world's largest petrochemicals company, mirrored some of the pain in the petrochemicals industry.Net income for the full 2012 reached SR24.7-billion, declining 15.5% year-on-year due to higher cost of sales and lower prices which mitigated the impact of increased volumes and lower finance cost.

Meanwhile, net income in the fourth quarter stood at SR5.8 billion, 8% below consensus of SR6.4 billion.

"SABIC reported a reasonable set of earnings considering soft demand globally, high feedstock cost and continued weakness in Saudi Kayan's operational performance," said NCBC.

Saudi Arabian Yanbu National Petrochemicals, better known as Yansab, also reported a 3.6% year-on-year drop in fourth-quarter profits to 640.8 million Saudi riyal (USD170.8 million), citing lower prices for most products.

SAFCO Q4 earnings also beat analyst expectations, with net income at SR1,146-million.

MRC