PetroChina, INEOS form JVs for Grangemouth, Lavera refineries

MOSCOW (MRC) -- China-based oil and gas company, PetroChina Company, and INEOS Group, a UK-based chemicals group, have formed trading and refining joint ventures (JV) between PetroChina International (London) Company and INEOS Investments (Jersey), said Refiningandpetrochemicals.

The JVs have been formed to manage the trading and refining operations at INEOS' Grangemouth refinery in Scotland and Lavera refinery in France. PetroChina paid USD1.015bn in cash for the shares in the joint ventures.

The JVs are expected to create a strategic partnership between both companies to strengthen presence of both the refineries, improve security of supply for customers and secure jobs in both the UK and France.

Through the JVs, PetroChina is expected to explore the high-end European market and start establishing PetroChina's European oil and gas operation centre.

INEOS Refining CEO Calum MacLean said PetroChina is its long-term strategic partner in both the Grangemouth and Lavera refineries.

"The formation of the joint ventures provides further investment in our refineries, and enhances their competitiveness in European markets," MacLean added.

PetroChina's parent company China National Petroleum (CNPC) and INEOS are also working on a strategic co-operation agreement to share refining and petrochemical technology and expertise.

The Grangemouth refinery is located on the Firth of Forth and processes about 210,000 barrels of crude oil per day, and provides fuel to Scotland, Northern England and Northern Ireland.

The Lavera refinery located on the coast of the Mediterranean crude oil trading basin processes 210,000 barrels of crude oil per day and supplies fuel through pipelines into France, Switzerland and Southern Germany.
MRC

MOSCOW (MRC) -- Huntsman Corp. has signed a definitive agreement to acquire Oxid LP, a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas, said Hydracarbonprocessing.

Oxid's polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction.

The polyols are combined with methylene diphenyl diisocyanate (MDI) to create polyurethane foam insulation for walls, roofs, refrigerators and other applications.

Oxid markets its product line of specialty polyols under the trademark Terol, and it distributes products worldwide from its manufacturing facility in Houston.

The addition of Oxid's MDI product portfolio will support Huntsman's offerings to downstream insulation markets in North America and provide new opportunities globally. The transaction is expected to close in the 3Q. Oxid generated USD86 million of revenue in 2012.

As MRC wrote before, Huntsman Corp, the U.S. chemicals producer founded by Jon Huntsman Sr., is considering an offer for Rockwood Holdings Inc. titanium-dioxide pigments business.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

MOSCOW (MRC) - Prices of injection high density polyethylene (HDPE) in the Russian market surged to Rb66,000/tonne early this week on the back of tight supply, according to ICIS-MRC Price Report.

Russian market of injection HDPE in June was oversupplied, but by the end of the month the shipment disruptions from Kazanorgsyntez had changed the market balance.

As a result, in July, Russian converters faced with a shortage of injection HDPE, resulting in higher prices.
In the beginning of June the price for Russian injection HDPE were heard in the range of Rb60,000-61,000/tonne CPT Moscow, including VAT, but by the second week of July they reached Rb65,000-66,000/tonne CPT Moscow, including VAT.

In June many converters did not replenish their stocks of injection HDPE, but now many companies, despite higher prices, try to form an additional inventories of it.

The deficit in the market of injection HDPE resulted from several factors. Firstly, one of the main producers of injection PE Gazprom neftekhim Salavat shifted to the production pipe HDPE in June, moreover the plant is to stop its capacities for a month long maintenance works from 18 July.

The second Russian producer of injection HDPE - Kazanorgsyntez also soon suspends the output of the material, and according to preliminary information, plans to return to resume the production of HDPE injection only after a scheduled turnaround in October.
MRC

MOSCOW (MRC) -- Nizhnekamskneftehim, Russia's largest polystyrene (PS) producer, has increased July prices by 1,000/tonne, according to ICIS-MRC Price report.

General purpose polystyrene (GPPS) and high impact polystyrene (HIPS) prices in the Russian market increased a bit in early June, slightly offsetting the price fall in April-May. In late June, market participants did not expect significant changes and counted on maintaining June prices for July.

However, it was announced at the beginning of the week that Nizhnekamskneftekhim, the largest GPPS and HIPS producer in Russia, raised its prices for the material by Rb1,000/tonne. A similar increase was also made for export shipments.

Devaluation of the ruble in June, which resulted in higher GPPS and HIPS import prices, is named as the main reason for the price rise.

Other Russian producers still maintain their prices at the same level. PGProf's PS is not available in the spot market at present, as virtually all the volumes are used for self-processing.

Gazprom neftekhim Salavat keeps its prices at June's level. In mid-July, the plant will stop PS production for a month of scheduled maintenance works. Traders that sell Salavat PS intend to increase July prices on the upcoming outage. However, present deliveries are shipped at June prices.
MRC

MOSCOW (MRC) -- The commissioning of new polypropylene (PP) plants in Russia this year has reduced dependence on imports. In the first half of 2013, PP imports to the country dropped by 18% to 110,500 tonnes, according to MRC DataScope.

Polyom (part of Titan) with the capacity of 180,000 tonnes
started PP production in mid-February, and in late May, Tobolsk-Polymer (part of SIBUR) with the annual capacity of 500,000 tonnes also launched its production. The launch of two new plants allowed to double polypropylene output in Russia. As a result, PP imports to Russia began to decline starting from April.

The fall in PP prices in the Russian market also helped to reduce imports. Particularly, high export prices in Turkmenistan led to termination of raffia shipments from this country since May. In 2012, the average monthly supplies of Turkmen raffia to the Russian market made 5,500 tonnes.

Homopolymers of propylene (homopolymers PP) accounted for the most of imports fall, whereas imports of propylene copolymers, particularly, statistical copolymer of polypropylene (PP-random), continued to grow. And, although some Russian producers increased their production of propylene copolymers this year, import substitution in this segment will take longer than a few months.

MRC