Dow partners with key Russian customers for energy efficiency

MOSCOW (MRC) -- As the Official Carbon Partner of the Sochi 2014 Organizing Committee, the Dow Chemical Company is partnering with a key customer in Russia to implement industrial enhancements and promote a consumer-facing campaign that is expected to result in substantially lower greenhouse gas (GHG) emissions for years to come, as per GV.

Delivering on the commitment to enable Olympic and Paralympic Winter Games with minimal impact on climate in Russia, Dow has launched a program in partnership with the strategic customer Profflex that can enable substantial reductions in greenhouse gas (GHG) emissions over the next decade, targeting buildings and households within the Russian Federation.

Dow’s approach to this program is two-fold. First, tailor-made Voratherm polyurethane systems produced by Dow Izolan in Vladimir, Russia, enabled the incorporation of a less GHG-intensive blowing agent into the formulation for its customer’s polyurethane straw foam and gun foam insulation products. This replacement is expected to result in a reduction of the product’s carbon footprint by over 500,000 t of CO2 equivalent emissions over the next two years.

Second, the company has launched a consumer-facing campaign to promote the domestic usage of polyurethane-based insulating sealant in window installations to reduce sources of cold air infiltration, ensuring lower energy consumption by making residences more energy efficient throughout the country. Leading an unprecedented initiative in Russia, 100,000 cans of insulating foam sealant will be provided free-of-charge to homeowners who decide to replace obsolete windows with new ones that utilize proper insulation technology – each can of insulating foam helps reduce GHG emissions by at least 3 t over 10 years, says Dow. From now through October 2013, over 130 leading window replacement companies in all regions of Russia will be involved in this project.

"This partnership with Sochi 2014 is something that Dow is uniquely qualified to deliver", said George Hamilton, vice president, Dow Olympic Operations. "We have the expertise, the right portfolio, state-of-the-art technologies, strong partnerships, a solid 40-year presence in Russia, and an everlasting focus on more sustainable solutions to help Sochi 2014 fulfill its vision of games with minimal impact on the climate."

We remind that, as MRC reported earlier, as a part of the agreement on its sponsorship of XXX Olympic Games signed in 2010, Dow Chemical will also support the Winter Olympics in Sochi in 2014, in connection with which the company opened a representative office in Sochi in late 2012. A new company's office in Sochi will strengthen Dow's position in the Russian market, contribute to the further introduction of innovative technologies into various industries, such as construction, transport, electricity and telecommunications, wich are necessary for the development of infrastructure of the city and successful Olympic Games in Sochi.

Dow Chemical is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue after BASF. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- SK Global Chemical and China Petroleum & Chemical Corp. have signed an agreement that establishes a joint venture between the two companies to operate Sinopec's recently completed 800,000 tonnes per year naphtha cracker in Wuhan, China, according to Apic-Online.

SK, which now owns a 35% interest in the Wuhan project, noted that this is "by far the largest joint venture project in the petrochemical area since the 1992 resumption of China-Korea diplomatic ties". Besides, this is the first occasion for any non-Middle East Asian company to produce ethylene in China, as per the company's statement. Sinopec holds the remaining 65%.

The USD2.9-billion project includes facilities for the production of 300,000 tonnes per year of high-density polyethylene, 300,000 tonnes per year of linear low-density polyethylene and 400,000 tonnes per year of polypropylene.

We remind that, as MRC reported previously, last year SK Group set up a USD588 million joint venture with China’s state oil firm Sinopec. The new venture is led by unlisted SK subsidiary SK Global Chemical and will produce butanediol, a synthetic fiber precursor. The butanediol JV is a part of a Sinopec petrochemical complex in which BP is also participating.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group is a state-owned company solely invested by the State, functioning as a state-authorized investment organization in which the state holds the controlling share. Headquartered in Beijing, Sinopec Group has a registered capital of RMB 182 billion.
MRC

MOSCOW (MRC) -- Nippon Shokubai Co. has received a new "lift of restrictions," allowing the company to resume production at a second acrylic acid unit at its Himeji complex in Japan, reported Apic-online.

Two separate explosions at its Himeji site last September forced the company to stop production of acrylic acid and superabsorbent polymers and resulted in the suspension of most operations at Himeji.

The company recently was granted a "lift of restrictions" for an acrylic acid plant that was not damaged in the incident, as well as some derivatives facilities, including superabsorbent polymers and water soluable polymers.

Nippon Shokubai noted that it has also been approved to resume operations of some derivative units, including special acrylates.

Nippon Shokubai produces one fifth of the global volume of superabsorbent polymers and it is one of the world's biggest makers of acrylic acid, the main ingredient of a resin called SAP, which is used in diapers.
MRC

MOSCOW (MRС) -- On June 29th and 30th, Petrobras established a production record of 2.2 million bpd of oil at its refineries, said Hydrocarbonprocessing.

This volume is 30,000 bbl more than the previous record, set on May 26, 2013.

This strong performance has enabled a reduction in oil product imports, the company said, adding that it reflects the high level of operational efficiency at its refineries and in the integrated management of downstream operations.

Petrobras said it was also important to note that this level was achieved without cutting any corners and fully respecting the health, safety and environment (HSE) principles that govern company activities.

We remind that Moody's changed the outlook for Petrobras to "negative" from "stable," citing rising debt levels and growing uncertainty over how quickly the oil company can bring new production onstream. As MRC reported earlier, Petrobras plans to launch the first of its new refineries in November 2014. The second line will be put in operation in May 2015. The refinery will add 230,000 bpd of processing capacity.

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) -- Russian Prime Minister Dmitry Medvedev held a meeting on the development of the chemical and petrochemical industries, said Fibre2fashion.

The meeting was held at the POLIEF production site, one of Russia’s largest polyester complexes producing feedstock for the manufacture of plastic bottles for food products.

Dmitry Medvedev inspected the POLIEF production site, which is currently expanding its polyethylene terephthalate (PET) capacities. PET is used to produce food and pharmaceutical packaging, and film. POLIEF’s current terephthalic acid (feedstock for PET production) output is 250,000 tonnes per annum, and PET output – 140,000 tonnes per annum. With the expansion of the polyester facility, PET capacities are expected to reach up to 210,000 tonnes per annum.

This project will allow POLIEF to process its own terephthalic acid into high value-added products and to replace imports in some Russian PET market segments. Despite current tightening of spreads between feedstock and finished product prices in the global PET market, the Russian market has substantial growth potential. In 2012, Russia produced about 453,000 tonnes of PET and imported 185,000 tonnes. The current consumption rate per capita of food-grade PET in Russia is 4.1 kg compared with 9.5 kg in the US.

The project is included in the list of priority projects of Bashkortostan. Today, 100% of the production equipment has been installed, and 50% of the construction work has been finished. Commercial operations are scheduled to begin in 1H2014.

POLIEF’s PET fully meets the Russian and international quality standards for food contact materials. The Pira International Certificate of Conformity authorises POLIEF to sell its products in the European market.

The Russian Prime Minister also had a look at the KhimTerra Industrial Park Project. This Project, which is being led by the Bashkortostan Development Corporation, aims to support small and medium-sized businesses and to set up new production facilities that will use POLIEF products. The opening of this Industrial Park will help boost economic growth in the Republic, raise tax revenues, and create new jobs.

SIBUR Holding is the major shareholder of POLIEF; 17.5% interest in POLIEF is held by the Bashkortostan Government.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry.

MRC