Pertamina signed agreement with UOP for modernization of its refineries

MOSCOW (MRC) -- Indonesian state-owned energy company Pertamina and UOP LLC, a wholly-owned subsidiary of Honeywell, US based company, has signed an agreement to conduct a Bankable Feasibility Study (BSF) for Refinery Development Master Plan (RDMP) in order to modernize Pertamina refineries, according to the company's press release.

BFS is partially funded by a grant from the United States Trade and Development Agency (USTDA) worth USD1,07 million. The RDMP will serve Pertamina in achieving company’s goal to become world class downstream business.

President Director and CEO of Pertamina Karen Agustiawan said, Indonesia’s fuel consumption has experienced annual growth rate of 8% over the last 10 years amid the rising growth of economy of the country. Pertamina expects the trend will be continuing for 5 coming years with average annual growth leastwise of 5% per annum.

At the same time, domestic demand for petrochemical products is also expected to grow continuously due to increasing new centers of economic growth outside Jakarta, especially manufacturing sector. Indonesia’s petrochemicals market value is expected to be USD30 billion by 2018, and Pertamina targets to grab 30% of the market share.

"Pertamina needs to modernize its downstream infrastructure to meet the rising demand for energy and petrochemical products in Indonesia. The RDMP will strengthen national energy security and reduce our dependence on imports," said Karen.

Pertamina operates 5 major refineries with total capacity of 1,035 milion barrels oil per day, the largest capacity in the South East Asia Region and the fifth largest capacity in the Asian Region. It is the comparative advantage of Pertamina to meet it’s target to become the main energy and petrochemical player in Indonesia and in the region.

As MRC wrote previosly, this summer Pertamina signed an agreement to purchase petrochemical products from Thailand’s PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia.

UOP is a recognized global leader in refining and petrochemical technology and also the prime licensor of technologies for the refineries. UOP has been working with Pertamina for more than four decades. In the signed agreement, UOP will develop a master plan to upgrade Pertamina’s downstream assets.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC

MOSCOW (MRC) -- At its last meeting the Supervisory Board of Evonik Industries AG, the German speciality chemicals group, unanimously passed resolutions relating to the successful focusing of the group on specialty chemicals and its future growth targets, reported the company on its site.

Over the past five years Evonik has been restructured from an integrated conglomerate to a listed specialty chemicals company. Following the refocusing of the business, the next step is to consolidate management and administrative processes.

Within the Executive Board, operational responsibility for the entire specialty chemicals business will therefore be transferred to Patrik Wohlhauser (49) as of January 1, 2014. Dr. Thomas Haeberle (57) and Dr. Dahai Yu (52) will be leaving the company by amicable and mutual agreement effective December 31, 2013.

Further, Evonik's Supervisory Board unanimously welcomed the Executive Board's decision to undertake extensive streamlining of group-wide administrative structures. In many respects, the present administrative functions still reflect the needs of Evonik's former structure as a conglomerate.

Moreover, administrative expenses are now approximately 26% higher than they were in 2008. Evonik therefore intends to extend the progress made in the operating units through the On Track and On Track 2.0 efficiency enhancement programs to its administrative organization. The goal is to make cost savings of up to EUR250 million a year by the end of 2016.

The planned restructuring of the administrative functions will result in savings in material and personnel expenses. The related job cuts will be achieved in a socially compatible manner in close collaboration with representatives of the workforce and the German Mining, Chemical and Energy Industrial Union (IG BCE). The scope and nature of the necessary measures will be examined in the coming months. Existing framework agreements, including the agreement to refrain from dismissals for operational reasons, will be extended for two years to the end of 2018.

We remind that, as MRC informed previously, Evonik Industries plans to expand its capacities for precipitated silicas worldwide by about 30 % by 2014. Besides, Evonik's new polyamide 12 line is planned to be built in Singapore by 2014 to increase the availability of this specialty plastic. The company invested over EUR100m (GBR131m) in a new hydrogen peroxide plant in Jilin, China. The plant is scheduled to be completed by the end of 2013 where it will annually produce 230,000 tons of hydrogen peroxide, which is mostly used as a bleaching agent in the textile and pulp industry. As part of the company's strategic portfolio expansion, Evonik plans to launch a new generation of PVC plasticizers. Evonik started construction of the production facilities with the estimated production capacity of 40,000 tpa at the Marl Chemical Park this summer.

Evonik Industries is an industrial corporation in Germany and one of the world's leading specialty chemicals companies. Company's specialty chemicals activities focus on high-growth megatrends, especially, health, nutrition, resource efficiency, and globalization, and on entering attractive future-oriented markets. In 2012 Evonik generated sales of EUR13.6 billion and an operating result (adjusted EBITDA) of EUR2.6 billion. The international rating agency Moody's has upgraded the credit rating of the German speciality chemicals group Evonik Industries AG from Baa3 with a positive outlook to Baa2 with a positive outlook.
MRC

MOSCOW (MRC) -- Teijin Limited announced that it has established a joint venture with South Korean chemical producer SK Chemicals opening a new window to develop and sell polyphenylene sulfide (PPS) resins and compounds in Ulsan, South Korea, said the company in its press release.

Construction of a 12,000-ton per annum PPS resin plant began on October 1. Teijin owns 34% of the new company, INITZ Co., Ltd., and SK Chemicals holds the remaining 66% share. Working in cooperation with Teijin and SK Chemicals, INITZ will start by providing samples to selected customers in the automotive and electronics fields.

Focusing on customers especially in fast-growing Asian markets, it aims to become a world leader in PPS resin and compounds. A global market share of 20% and annual sales of 300 billion KRW (280 million USD) are envisioned by 2020.

INITZ expects to produce the world’s first chlorine- or sodium-free PPS resins utilizing proprietary technologies of SK Chemicals.

PPS resin, a super engineering plastic, exhibits excellent thermal resistance, chemical resistance, mechanical strength and dimensional stability. The demand for PPS resin is expected to grow in line with the increasing popularity of electric and hybrid vehicles and the ongoing expansion of electronics markets in emerging countries.

With conventional PPS resins, chlorine and sodium from raw materials and byproducts remain in the resin, which can lead to the corrosion of molds and functional deterioration of metal parts, such as defective contacts. Also, chlorine has potentially harmful environmental effects if burned.

Following formal establishment of the company on September 1, a groundbreaking ceremony held at the Ulsan plant on October 1 was attended by guests including the mayor of Ulsan and the chairman of the Ulsan city council.

As MRC wrote before, Teijin established a Russian subsidiary, Teijin Rus, as part of its strategy to expand businesses in emerging economies. The new company, which was created 1 October 2013, has absorbed the existing local office that was established in 2006.

Teijin is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 17,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY745.7 billion (USD 7.4 billion) and total assets of JPY 762.4 billion (USD7.6 billion) in the fiscal year ending March 31, 2013.

MRC

MOSCOW (MRC) -- DuPont has increased prices on all of its titanium dioxide (TiO2) products sold in North America, Europe, Middle East, Africa, Latin America and the Asia Pacific regions, reported the company on its site.

The price increase was effective 1 October, 2013, or as contracts allow, as follows:

- USD100 per tonne for DuPont Ti-Pure titanium dioxide grades sold in the Asia Pacific and Latin America regions;

- USD100 per tonne for DuPont Ti-Pure TiO2 grades sold in the dollar markets or EUR EUR75 per tonne in Eurozone markets in Europe, Middle East and Africa region;

- five cents per pound for DuPont Ti-Pure TiO2 grades sold in the North America region with the exception of DuPont RPS Vantage titanium dioxide products sold into paper and paperboard applications, which will be managed separately.

As MRC informed earlier, in late 2012 DuPont reported of investments that the company were making in all its divisions kept on delivering results which were offset by the weakness in titanium dioxide (TiO2) markets. "Excluding the performance chemicals unit, which includes TiO2, the company expects earnings growth of at least high-teens in 2013 versus 2012. Performance chemicals margins are expected to fall six to seven percentage points in 2013," DuPont said.

DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide, serving customers globally in the coatings, paper and plastics industries. DuPont is also supplying TiO2 to Russia and its share in the Russian market has been growing since 2013.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC

MOSCOW (MRC) -- Temasek and Sinopec have both approached Repsol over buying its EUR4.7bn stake in Gas Natural as the Spanish oil company seeks to raise cash to increase its investment in oil exploration, said Financial Times.

Repsol, which is working with Deutsche Bank and Citigroup to find a buyer for the domestic gas distributor, has received separate expressions of interest from Temasek, Singapore’s sovereign wealth fund, and the Chinese state-controlled Sinopec after the summer, people close to the process said.

Repsol’s management, which is aiming to sell 25% of its 30%, views both Temasek and Sinopec’s interest favourably due to their existing ties to the Spanish oil group. Temasek holds 6.3% of Repsol’s shares, having raised its stake earlier this year, while Sinopec has been its partner in its Brazilian oilfields since 2010.

Both potential investors are also viewed favourably by the Spanish government as stable, long-term investors in Gas Natural, while Caixabank, the utility’s biggest shareholder with a 34% stake, has also approved.

However, people close to the deal said that no final decision had been made over a sale; that Repsol had also received interest from other parties; and cautioned that since the company was in no hurry to sell, it would come down to an attractive price being offered. Repsol declined to comment, as did Temasek.

Repsol has been exploring the possibility of selling its Gas Natural holding since it sold its liquefied natural gas unit to Royal Dutch Shell in February.That deal removed the synergies it had previously used to justify the holding in Gas Natural.

The sale of the bulk of the holding would release further funds to invest in exploration assets, with Repsol’s management currently looking to buy assets in politically stable countries. Repsol has earmarked EUR19.1bn of investment between 2012 and 2016 as part of its strategic plan, with 80% of these funds allocated to exploration and production. It aims to increase output by at least 7% a year up to 2016, and to achieve a "reserve replacement ratio" of 120% – meaning that for every five barrels extracted the company will find a further six.

While Repsol has sought to move a greater part of its operations into politically stable jurisdictions, in part due to the traumatic expropriation of its YPF division by the Argentine government, it has also continued to explore in Libya. Initial results from a current exploration programme there are expected as soon as this week.

MRC