Ferrostaal inks Letter of Intent for downstream petrochemical project

MOSCOW (MRC) -- Ferrostaal has signed a Letter of Intent with the Ministry of Industry of the Republic of Indonesia on cooperation for the development of a downstream petrochemical investment project in the West Papua region of Indonesia, said Plastemart.

A petrochemical plant complex for the production of methanol, propylene and polypropylene from natural gas is due to go into production in the Teluk Bintuni Regency in 2019. Ferrostaal’s role in the project is that of project developer and investor, in addition to which it will be responsible for structuring the investments planned by the foreign and local Indonesian investment partners. German engineering firm Ferrostaal AG plans to build a petrochemical plant in West Papua at a cost of USD 900 mln (see MRC news).

According to the Letter of Intent, the allocation of the principal gas supply from local reserves as well as the allocation of building land within an industrial park planned by the Ministry of Industry of the Republic of Indonesia in Teluk Bintuni will follow within the next months.

After completion of the plant, annual output is expected to be in the region of 400,000 tons of polypropylene. The plastic as well as the by-products petrol (approx.150,000 tons) and liquefied natural gas (approx. 34,000 tons) are to be sold on the local market in order to meet the growing local demand and support growth in the country through this import substitution.

The project supports the implementation of a master plan adopted by the Republic of Indonesia (MP3EI), which provides for sustainable industrialisation in the period to 2030 in order to accelerate economic development, particularly in the east of Indonesia. Indonesia will particularly benefit from the alternative polypropylene production technology. Production will be based exclusively on local natural gas from reserves in West Papua, which have the potential to keep the plant complex supplied for at least 25 years.

MRC

MOSCOW (MRC) -- Mangalore Refinery and Petrochemicals Ltd (MRPL) is targeting to commission its Rs 12,000-crore Phase-III expansion by September this year, provided Bharat Heavy Electricals Ltd (BHEL) completes the project’s captive power plant in three-four months, according to Business-standard.

"We have been pushing BHEL to complete the power plant for the last six months. All other units as part of our expansion are ready. If BHEL completes its work, we would be able to commission the entire Phase-III by September," said P P Upadhya, chairman and managing director. The company is a subsidiary of state-run Oil and Natural Gas Corp Ltd.

As MRC wrote earlier, ONGC Mangalore Petrochemicals Ltd's (OMPL) petrochemical complex coming up at Mangalore Special Economic Zone (MSEZ) at Mangalore is likely previously planned to start commercial operations in the first quarter of next financial year.

The fluid catalytic cracking (FCC) and coker units are completed and partial works might begin at the coker unit by the end of this month. The company will not be able to start the polypropylene unit unless FCC, dependent on the 110-megawatt power plant, starts operations.

Through Phase III, MRPL wants to add another three million tonnes (mt) per annum capacity. MRPL is funding the project at 2:1 debt-equity ratio. The Phase-III plan would eventually increase MRPL’s capacity from 9.6 mt to 15 mt.

Meanwhile, MRPL is finding it difficult to secure insurance cover for Iranian crude oil imports, following the US sanctions on that country. MRPL is the largest importer of Iranian crude in India and the company’s insurance due date is in May. According to sources, till now, the company hasn’t found any cover from insurance companies.

If the impasse is not sorted, MRPL would be forced to stop crude import from Iran. Because of the new sanctions, countries would have to go for payment through exchange of goods or in local currency.

Though insurance companies have assured Rs 250-crore cover for shipments, reports suggest they will not be able to reinsure it in the European markets to hedge their risks. MRPL’s imports from Iran are down 39 per cent from 6.2 mt last financial year to 3.8 mt in 2012-13.
MRC

MOSCOW (MRC) -- DuPont Packaging & Industrial Polymers has announced a price increase of Euro 0.10/kg on all DuPont Elvax EVA copolymer resins in the region Europe, Middle East and Africa, reported the company on its site.

This increase is effective March, 15th 2013, or as contracts allow.

As MRC informed earlier, DuPont, the US chemical giant, has reported better results than the market expected for 2012, and was optimistic for this year even though its net profit lost almost 20% to USD2.78 billion.

DuPont is an American chemical company that was founded in July, 1802. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009. DuPont manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials.

DuPont Packaging & Industrial Polymers is a world-class manufacturer of high-performance resins and films for a variety of packaging and industrial applications. Its ethylene copolymer products include DuPont Surlyn resins for packaging and industrial applications, Bynel coextrudable adhesives, Selar PA amorphous polyamide barrier resins, Nucrel acid copolymers, Elvax EVA copolymers, Elvaloy, Elvaloy AC, Entira and Fusabond modifiers.
MRC

MOSCOW (MRC) -- An Argentinian court order has determined the shutdown of Bahia Blanca city's refinery, property of Brazilian oil and gas giant Petrobras, said SeeNews.

The facility, located in Argentina's Buenos Aires province was closed as of 6 am on Friday for an indefinite period of time as its effluents discharge certificates are said to be overdue since 2003, while the environmental permits have expired four years ago.

Residents in the vicinity of the refinery are complaining of toxic gases inhaled on a daily basis that cause allergies, vomiting, nausea and headaches.

Petrobras Argentina, however, denies any irregularity and guarantees that its has fulfilled all environmental requirements and that the refinery's operations are in strict accordance with local regulations. The company has appealed the court's decision, Petrobras Argentina also said in a note released on Friday afternoon.

The refinery, whose name is Dr. Ricardo Elicabe, has refining capacity of 30,000 barrels per day (bpd) of oil and is reportedly currently being sold to Argentinian sector player Oil Combustible.

The unit has recently faced other problems. In 2011, it was closed for a few days due to the death of a worker killed by an explosion.

As MRC wrote earlier, Petrobras, Brazil's state-controlled oil company, reported a 53% rise in fourth-quarter income following tax and financial gains, rounding off that was still its least profitable year since 2004.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC

MOSCOW (MRC) - In January, the total output of large volume polymers in Russia made about 339,000 tonnes, which corresponds to the level of December 2012. The makers of polyolefins and PVC kept high level of capacity utilization, according to the MRC ScanPlast.

In January, despite the low seasonal demand in many sectors of consumption, almost all Russian makers of large volume polymers kept a high level of capacity utilization, the exception made the producers of polystyrene (PS) and polyethylene terephthalate (PET).

The capacity utilization of Russian makers of PE in January was at 95%, the production of PE ecxeeded 150,000 tonnes. Where production of high density polyethylene (HDPE) made 92,200 tonnes, and low density polyethylene (LDPE) - 58,000 tonnes. In December 2012 production of HDPE and LDPE made 86,000 tonnes and 61,800 tonnes respectively.

The total production of PP in Russia in January amounted to about 62,000 tonnes, compared with December 2012 - 60,700 tonnes. Russian producers of polypropylen loaded their production almost by 100% , the only exception made Nizhnekamskneftekhim that due to technical problems had to stop its output of PP for a few days.

Omsk Poliom (Titan Group) in February launched a new production of polypropylene. The two-week's output of PP of the plant made about 5,000 tonnes of polypropylene. In March Poliom plans to double the volume of production of polypropylene.

The total production of a unmixed PVC (suspension and emulsion PVC) in January remained at the level of December and reached 58,500 tonnes. Russian makers have been keeping the high level of capacity utilization since October 2012. The output of PVC was about 56,600 tonnes of emulsion - 1,900 tonnes.

In January, the total production of polystyrene and styrene plastics by Russian producers made about 33,000 tonnes, up only 200 tonnes from December 2012. The output of general purpose polystyrene and high impact polystyrene made about 22,000 tonnes due to reduction of capacity utilization and PJ Prof and Gazprom neftekhim Salavat. The output of EPS rose to 10,000 tonnes due to the increased capacity utilization of Sibur-Khimprom.

Production of PET by Russian enterprises in January 2013 amounted to 35,300 tonnes, which is 5% less than in December 2012. Besides Sibur-PETF, all Russian producers of PET have reduced the level of capacity utilization in January.


MRC