Linde to build large ammonia plant in Russia

MOSCOW (MRC) – The technology company Linde Group has formed a joint venture with chemical company JSC KuibyshevAzot to build and operate a large ammonia plant at the Togliatti site in Russia's Samara region, said Linde.

Both partners signed an agreement to this effect on 27 May 2013. The deal will involve a total investment volume of around EUR 275 million. Both companies have an equal stake in the newly formed venture, Linde Nitrogen Togliatti.

"We are proud to team up with our partner to support further expansion of the Togliatti industrial hub," said Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG. "This project not only strengthens our presence in Samara, but also our position as the leading gases and engineering company in the fast-growing Russian market."

The Engineering Division of The Linde Group will construct the new, state-of-the-art on-site plant, designed to deliver exceptional levels of energy efficiency. The plant will have a production capacity of 1,340 tonnes of ammonia per day (tpd). Construction work is scheduled for completion in 2016.

JSC KuibyshevAzot, one of the biggest chemical companies in Russia, plans to expand Togliatti production capacity for caprolactam – a precursor of polyamide plastics – and nitrogen fertilizers. It will need a rising stream of ammonia to support these growth plans.

Linde Group received an engineering contract for the licensing and front end engineering design (FEED) of one of the world's largest ethylene plants in Tobolsk, Western Siberia. The contract was awarded by Russia's largest petrochemical company, Sibur LLC. The FEED services provided by Linde are the first step in the project to realise the new plant. The Group's work will provide a foundation for the detailed engineering and construction phase. Linde"s services also include a cost estimate, which will be used by Sibur to inform the final investment decision.

The Linde Group is a world-leading gases and engineering company with around 62,000 employees in more than 100 countries worldwide. In the 2012 financial year, Linde generated revenue of EUR 15.280 bn. The strategy of the Group is geared towards long-term profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development.
MRC

MOSCOW (MRC) -- The global market in volume for engineering resins and polymer alloys and blends was estimated at more than 22 billion lbs in 2012 and is projected to increase to 28 billion lbs by 2018 after increasing at a five-year compound annual growth rate (CAGR) of 4.4%, according to Plastemart.

Asia comprises the largest segment with nearly 55% of the total market, followed by Europe and the Americas. Over the next five years, the Asian segment will increase, but at a slower rate than the previous decade due to significant penetration over the last decade.

The global market value was estimated at nearly USD43 billion in 2012 and is expected to increase to more than USD55 billion by 2018. The polycarbonates and polyamides are clearly the most prominent segments, accounting for slightly more than 60% of total volume, and that scenario is expected to remain intact over the next five years. The main driving force for developing alloys/blends is the reduced time and cost in commercializing new effective products, and ability to tailor properties with two known entities.

Demand for medical plastics will outpace packaging applications, especially in the area of prosthetic devices and minimally-invasive surgical instruments. Plastics in the packaging sector are largely driven by cost. Most consider that the use of engineering resins will increase faster than commodity resins because of increased physical demands being placed on resins used for medical devices.

We remind that, as MRC reported earlier, in March 2013, Toyo Engineering Corporation was awarded a contract to construct a synthetic resin (ethylene-vinyl alcohol copolymer, EVOH) production plant with a capacity of 15,000 tonnes per year in La Porte, Houston, Texas, USA, planned by the Nippon Synthetic Chemical Industry. Construction of the new plant is scheduled to begin in the summer of 2013 and to be completed at the end of 2014.
MRC

MOSCOW (MRC) -- The company’s net debt also grew in the period but it maintained that it "continues to show the best financial efficiency in the industry", said Upstreamonline.

Net profit for the first three months of the year was USD2.58 billion, down from USD3.79 billion a year earlier.

At the top end, revenues sank from USD35.26 billion to USD33.77 billion as production dropped 0.8%.

Barrel of oil equivalent lifting costs were, however, down 1.5% from the fourth quarter last year.

However, the effect of foreign exchange differences on Lukoil’s tax liability sent the tax cost soaring from USD367 million in the first quarter last year to USD789 million this time around.

Lukoil contended in Tuesday’s release, however: "Measures aimed at higher efficiency and cost control allowed the company to assuage the fall of financial indicators and maintain high operating efficiency in unfavorable external economic conditions."

As MRC wrote earlier, Lukoil reported its net profit for the final three months of 2012 nearly doubled year-on-year, when it was hit by a nearly USD1 billion write-off. Lukoil said net profit for the period totaled USD2.69 billion, compared with USD1.35 billion in 2011.

Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include exploration and development of oil and gas, manufacturing and marketing of petroleum products.
MRC

MOSCOW (MRC) -- SIBUR has begun integrated equipment testing at the propylene storage facility and trial production of the first polypropylene line at the company’s Tobolsk-Polymer complex, according to the commissioning timetable, reported the company on its site.

This follows testing of the first production line at the extrusion plant and the polypropylene packaging and dispatch plant.

Over the course of the next few months SIBUR will continue commissioning operations across all production facilities and expects to begin production at the complex by the end of 2013, once all approvals have been granted.

SIBUR has notified the Federal Service for Environmental, Technological and Nuclear Supervision (Rostekhnadzor) that construction of the complex has been completed.

As MRC informed previously, Russian President Vladimir Putin had visited SIBUR’s Voronezh site to witness the commissioning of a new manufacturing plant which will produce styrene-butadiene thermoplastic elastomers (TPE). These innovative polymers have many applications including in road construction where they prolong a road’s serviceable life. This new facility will have a design capacity of up to 50,000 tpa of polymer products, capable of meeting the rising domestic demand for thermoplastic elastomers. Currently, the Voronezh site, producing 35,000 tpa of TPE, is the only TPE manufacturer in Russia and the CIS.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. As well as thermoplastic elastomers for the road construction sector, SIBUR also produces polymer-modified geosynthetics. Use of these materials extend the time between repairs and equalise the loading intensity and prevent ruts and potholes. These materials also serve a variety of purposes such as reinforcement, separation, filtration, drainage, protection, and water proofing of pavement layers.
MRC

MOSCOW (MRC) -- Prices of Chinese and Korean bottle PET granulate for buyers in the CIS countries remain stable despite the volatility of terephthalic acid (PTA) and monoethylene glycol (MEG) prices, according to MRC Price report.

For the fifth consecutive week, Asian producers have not virtually changed their prices for export shipments. The price range, voiced by Russian converters last week, amounted to USD1,495-1,525/tonne DAP Moscow, excluding VAT.

According to Ukrainian converters, PET prices were USD1,480-1,510/tonne CIF, including delivery to Odessa port and excluding VAT.

PET producers in Asia reported a high demand in May. The residues of material at market players' warehouses were also within acceptable levels. Trying to keep high levels of sales and anticipating weaker demand, producers did not raise prices of granulate.

Meantime, spot prices of feedstocks for Chinese PET producers slightly dropped last week. Thus, MEG prices fell by USD10-11/tonne, whereas paraxylene prices went down by USD14-16/tonne. At the same time, TPA prices remained intact. More information about feedstocks prices can be found in MRC Price Report.
MRC