Petrochemical industry in Taiwan to see USD3.35 bln investment in 2013

MOSCOW (MRC) -- About NTUSD100 bln (USD3.35 bln) will be invested in Taiwan's petrochemical industry in 2013, including NTUSD15 bln in high-value petrochemical sectors, reported Plastemart with reference to the Council for Economic Planning and Development (CEPD).

This investment outlay was similar to the NTUSD99 bln invested in 65 projects last year. However, investment in high-value production is expected to rise about 13%, from NTUSD13.3 bln in 2012, supported by a program approved by the Cabinet last year to promote high value-added petrochemical development.

The program aims to help downstream petrochemical companies become more innovative and competitive and to better integrate the industry's supply chain by creating a more favorable environment for higher value products. To meet the goal, the government is spending about NTUSD600 mln a year to encourage petrochemical businesses to invest more in research and development.

We remind that, as MRC wrote previously, Taiwan's CPC Corp, a state-owned petroleum, natural gas, and gasoline company in Taiwan and the core of the Taiwanese petrochemicals industry, denied reports on scrapping a planned investment project in Malaysia. Besides, the company has plans to commission a new 700,000 tpa cracker by end 2012 or early 2013.

Besides, the largest supplier of plastics in Taiwan, Formosa Plastics Group, will resume its large-scope investment in construction of manufacturing base of ethylene in Ningbo, eastern China following the decision of the Chinese government to ease restrictions on foreign investment in naphtha cracking in the mainland.
MRC

OSCOW (MRC) -- U.S. Gulf Coast fuels strengthened after Citgo Petroleum Corp. shut a fluid catalytic cracker at the Corpus Christi East refinery in Texas and two plants began planned maintenance, said Bloomberg.

The No. 2 FCC at the Corpus Christi refinery was halted following a leak on the unit’s power train, according to a filing with the Texas Commission on Environmental Quality.

Valero Energy Corp. (VLO) and Phillips 66 (PSX) began scheduled work at plants in Texas. Valero expects a five-week turnaround on the 108,000-barrel-a-day No. 2 crude unit at the McKee refinery, while Phillips 66 carries out unspecified work at the Borger plant.

As MRC wrote earlier, Valero, the largest independent oil refining company in the U.S., reported increased revenue in recent quarters as global distillate demand grows despite continuing weakness in the U.S. gasoline market.Valero reported a profit of USD 45 million, or 8 cents a share, compared with a loss of USD 438 million, or 77 cents, a year earlier. Revenue jumped 56% to USD 34.7 billion. Operating margin fell to 0.5% from 1.7%.

The Corpus Christi, McKee and Borger refineries have the ability to process 481,000 barrels a day, or 5.3% of Gulf Coast capacity.

The spread for refineries in New York Harbor, based on Brent oil in Europe, declined 16 cents to USD13.41 a barrel, the lowest level since March 7.

MRC

MOSCOW (MRC) -- Royal Dutch Shell, Europe’s largest energy producer, set up a venture to invest in technology companies and venture-capital funds as oil and gas extraction becomes more costly and complex, said Bloomberg.

"Shell is ready to invest several hundred million dollars in emerging technology companies," the company said today in a statement on its website. "Shell Technology Ventures will make investments over the next six to eight years."

The oil company, which spent more than USD1.3 billion on research and development last year, has helped fund production of transport fuels from sugar cane and tight-oil extraction in Siberia. Shell and its peers are investing in technology as a four-year surge in crude prices pushes global energy explorers to more remote, harder-to-tap deposits.

Shell Technology Ventures’ focus will include enhanced oil recovery; natural-gas production and marketing; geophysical surveys; chemical manufacturing; and water treatment. It’s a successor to Shell Technology Ventures Fund 1 BV, which was set up in 1998 and managed by Kenda Capital BV.

The new venture is fully owned and managed by The Hague- based Shell, it said. Fund 1 will focus on its current portfolio of projects and won’t make further investments, according to the Anglo-Dutch company.

As MRC wrote earlier, Shell will build plants in Louisiana and Canada to produce liquefied natural gas as a fuel for heavy trucks and large ships. Shell will build the facilities in Geismar, Louisiana, along the Mississippi River south of Baton Rouge, and in Sarnia, Ontario, on the southern shore of Lake Huron just east of Michigan. Each plant will be able to produce 250,000 tpy of LNG by chilling natural gas to negative 260 degrees so it can be compressed into a liquid and stored in high-pressure insulated tanks.

MRC

MOSCOW (MRC) -- The last large-size equipment has been built up at Bashkir POLIEF (SIBUR group), one of the major PET producers and the only producer of terephthalic acid (PTA) in Russia, as part of the investment project "PETF-210," said the company on its website.

The installed unit is a crystallizer, which is part of the key equipment of the project for the expansion of PET production from 120,000 to 210,000 tonnes per year.

The 40-tonne crystallizer became the last large-size equipment delivered to the facility as part of "PETF-210" project. Due to the fact that such equipment is not available in Russia, the crystallizer was made as per the order of UOP in Italy and delivered to Blagoveshchensk by special transport.

The unit is one of the most important equipment that the licensor supplies. It is aimed for the process of solid state polycondensation of PET, said the Assistant General Director for the development, the Head of POLIEF's project Urmantsev Ural.

Apart from the cristallizer the company had previously built up a 30-meter reactor for the solid state polycondensation SSP, which is the main equipment for the production of crystalline PET for food containers.

Besides, in February, Polief launched the fourth water purification system, which is targeted to ensure the reliability of the plant water supply.

Polyethylene terephthalate (PET) is a raw material for the production of polyester fibers and plastic containers.

POLIEF (Blagoveshchensk, Bashkortostan) is Russia's largest producer of polyester, the only Russian producer of terephthalic acid (PTA), one of the leading Russian producers of polyethylene terephthalate (PET).

SIBUR, the largest integrated gas processing and petrochemical company in Russia and the CIS countries, as well as Central and Eastern Europe, is a controlling shareholder of POLIEF.
MRC

MOSCOW (MRC) -- Momentive Specialty Chemicals Inc. announced results for the fourth quarter and year ended December 31, 2012, said the company.

Results for the fourth quarter of 2012 include: revenues of USD1.1 billion versus USD1.2 billion in the fourth quarter of 2011.
Operating income of USD15 million compared to operating income of USD19 million for the prior year period. Fourth quarter 2012 operating income reflected lower volumes and unfavorable product mix shift, partially offset by the positive impact of savings from the shared services agreement with Momentive Performance Materials Inc. (MPM).

Fourth quarter 2012 operating income was also negatively impacted by USD8 million due to a temporary manufacturing outage at one of epoxy resin facilities. Net loss of USD52 million versus net loss of USD47 million in the prior year period. Fourth quarter 2012 results reflect the same factors impacting operating income.

Segment EBITDA totaled USD84 million compared to USD106 million during the prior year period.

Fiscal year 2012 results include: revenues of USD4.8 billion in 2012 compared to USD5.2 billion during the prior
year period driven primarily by the impact of volume decreases of USD260 million and unfavorable foreign currency translation of USD193 million.

Operating income of USD202 million in 2012 compared to operating income of USD368 million for the prior year period. Full-year 2012 operating income reflected the same trends as the fourth quarter of 2012. Selling, general and administrative expense decreased by USD13 million due to lower project and transaction costs, as
well as various cost reduction initiatives. Net income of USD324 million in 2012 versus net income of USD118 million in 2011.

2012 and 2011 results reflect the same factors impacting operating income. 2012 net income also reflected a USD365 million tax benefit as a result of the release of a significant portion of the Company's valuation allowance in the United States.

Segment EBITDA totaled USD490 million in 2012 compared to USD635 million in 2011. In addition, the Company reported Adjusted EBITDA for the last twelve months of USD530 million, which includes cost reduction program savings, as well as savings that the Company expects to achieve in connection with the shared services
agreement with MPM.

As MRC wrote earlier, Momentive and OAO Shchekinoazot, a large Russian industrial chemicals producer, formed a joint venture company to manufacture resins for the forest products and construction markets.

Momentive Specialty Chemicals Inc., previously Hexion Specialty Chemicals, is a chemical company based in Ohio. Momentive Specialty Chemicals is an operating company of Momentive Performance Materials Holdings. Momentive Specialty Chemicals makes thermoset resins used in the construction, transportation, electronics and automotive industries. Products include acrylic monomers, amino resins, epoxy resins, phenolic resins, polyester resins, versatic acid and derivatives.
MRC