US imposes sanctions against Iranian petchem companies

MOSCOW (MRC) -- The US has announced new sanctions against Iran by identifying eight Iranian petrochemical companies it claims to be owned or controlled by the Iranian government, namely Bou Ali Sina Petrochemical Company, Mobin Petrochemical Company, Nouri Petrochemical Company, Pars Petrochemical Company, Shahid Tondgouyan Petrochemical Company, Shazand Petrochemical Company, Tabriz Petrochemical Company and Bandar Imam Petrochemical Company, on May 31, 2013, according to media reports.

The US also imposed separate sanctions on two companies, Niksima Food and Beverage JLT, a frozen yogurt company based in the United Arab Emirates and Jam Petrochemical Company, an Iranian manufacturer and seller of petrochemical products, suggesting that Niksima received payments on behalf of Jam Petrochemical Company.

The US and the European Union imposed new sanctions against Iran’s oil and financial sectors in order to prevent other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

Turkish players gauge the impact of new US sanctions on Iran. After the US announced new sanctions against eight Iranian petrochemical companies, the impact of this development has started to be felt on the nearby Turkish market, for which Iran is a very important source of supply, particularly for PE. According to media reports, the petrochemical industry is the second largest source of income for the Iranian government after sales of crude oil.

Today, a couple of manufacturers in Turkey reported, "We had shaken hands with a trader for Iranian homo PP raffia last week; however, the trader called us to inform that they have had to cancel the deal since their supplier’s accounts have been frozen following the sanctions."

A veteran Turkish trader, who usually works with Iranian suppliers, also commented, "These sanctions have started to be applied on eight specific petrochemical companies in Iran because their majority stakes belong to the government. However, none of these 8 companies have direct sales in Turkey. Hence, we don’t expect to see a major impact of this development on the Turkish market as there are still Iranian suppliers who are able to conduct their export business without being affected by these sanctions."

As MRC wrote earlier, United Against Nuclear Iran (UANI) is asking South African energy giant Sasol to immediately declare an end to its business in Iran and take the steps necessary to complete such an exit, the US-based advocacy group said on Monday.

Sasol maintains an active presence in Iran through the Arya Sasol Polymer Company (ASPC), which operates two polyethylene plants in Iran. The company is a USD900 million joint venture between Sasol and Iran's state-owned National Petrochemical Company (NPC).

MRC

MOSCOW (MRC) -- Technip was awarded by Oil Projects Company SCOP a significant contract for project management consultancy (PMC) services for the engineering, procurement and construction (EPC) phase of the Karbala refinery, Iraq, said the producer.

This award follows the front-end engineering design executed by Technip in 2010. The scope of work will cover two phases.

Phase 1: issue of enquiries for the EPC contract, bids clarification, evaluation and contracts finalisation with the EPC contractors.
Phase 2: overall management of the EPC contract execution.

Technip’s operating center in Milton Keynes, United Kingdom will execute phase 1 of the project, which is scheduled to be completed in the second semester of 2013. Riccardo Moizo, Technip’s Senior Vice President for PMC, stated: "We are delighted to have been awarded this project by SCOP and to participate in developing and enhancing Iraq’s refinery capabilities. This is a significant contract for Technip’s newly created PMC business unit and we believe it will open up opportunities in the near future."

As per MRC, ZapSibNeftekhim LLC, an affiliate of JSC Sibur Holding, awarded two front-end engineering and design (FEED) contracts to Technip for polyethylene plants located in Tobolsk, in the Tyumen region of Russia.
The first contract concerns a linear-low/high-density gas phase polyethylene plant.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC

MOSCOW (MRC) -- The shutdown of Synthos' three Czech plants will not affect shipments of expandable polystyrene (EPS) to Ukrainian customers, said MRC analysts.

As MRC reported earlier, the Polish chemical producer Synthos stopped operations at its three plants in the Czech Republic due to the risk of flooding of the pump station at the river Vltava.

In 2012, Synthos was among the three largest suppliers of EPS to the Ukrainian market. Despite the scale of the disaster in Central Europe, EPS shipments to the Ukrainian market will not be affected in June 2013. The plants are located in the Polish Oswiecim, whose territory was not exposed to the negative effects of the disaster.

Since the beginning of the year, supplies of Synthos' EPS were reduced because of the general passivity of the Ukrainian market in January-April 2013. However, Ukrainian consumers bacame active in May and resumed purchases of Polish EPS, to which favorable prices of the producer contributed a great deal. Market participants expect to receive prices for June shipments June this week.

Synthos SA is one of the largest producers of chemicals in Poland. It is also the Europe's largest producer of emulsion rubber and the third largest manufacturer of expandable polystyrene.
MRC

MOSCOW (MRC) -- BASF is implementing its global strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability, said the company.

To achieve sales of EUR25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy "grow smartly" outlines investments of EUR10 billion, around 9,000 new jobs, and annual savings of EUR1 billion. Around 25% of BASF’s global R&D will be conducted in Asia Pacific by 2020, to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life.

"In the next decade, Asia Pacific will face huge challenges while remaining the fastest growing market for the chemical industry. With our Asia Pacific strategy, we are positioning BASF as the leading provider of sustainable solutions for the Asia Pacific region," said Dr. Martin Brudermuller, Vice Chairman of the Board of Executive Directors of BASF SE, responsible for Asia Pacific. "Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region."

BASF estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at 6.2%, well above the world average of 4.0%. According to its strategy, BASF intends to grow profitably at least two percentage points above regional chemical production to achieve sales of EUR25 billion in Asia Pacific by 2020.

As MRC wrote earlier, Toyo Engineering has reached a comprehensive engineering partnership agreement with BASF for the Asia-Pacific region. The three-year agreement covers basic engineering, detailed engineering, procurement, construction management, and other project-related services in the region's petrochemical and chemical sectors.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. BASF had sales of EUR72.1 billion in 2012 and more than 110,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Borealis, a a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, inaugurated a new catalyst plant at their Linz location on June 3, 2013, said Borealis.

The company has invested EUR100 million in the construction of this facility which will produce chemical substances – so-called catalysts – utilising the proprietary Borealis Sirius catalyst technology. Catalysts enable a precise alignment of plastics properties with varying demands and requirements and help determine, among other things, the hardness, plasticity and/or elasticity of end products.

The start-up of the plant will create 35 new jobs at the Linz location and strengthen Borealis' position along the entire plastics value chain: from research and development into and production of own catalysts, to application-oriented development of innovative end products in close co-operation with Borealis customers. Furthermore, the patented Borealis Sirius catalyst technology enhances the profitability and sustainability of the company in the plastics manufacturing sector.

The opening of the new catalyst plant in Linz is a central pillar of the growth strategy within the Borealis polyolefins business segment. Since 2007, the company has already invested EUR 50 million in the development of its Innovation Headquarters in Linz, inaugurated in 2009. The construction of the catalyst plant involves an additional investment of EUR 100 million. Upon commencement of full operations at the plant, 35 new employees will join the existing 1,250 currently employed in Linz.

As MRC wrote earlier, Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals, announced that it has acquired DEXPlastomers VOF in Geleen, The Netherlands, from DSM Nederland BV and ExxonMobil Benelux Holdings BV.

Borealis AG is Europe's second largest producer of polyethylene (PE) and polypropylene (PP) and is headquartered in Vienna, Austria.
MRC