BASF and Sinopec started constrution of world-scale isononanol plant in China

MOSCOW (MRC) -- BASF and China Petroleum & Chemical Corporation (Sinopec) has broken ground on the construction of its world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China, reported BASF on its site.

At start-up in 2015, the plant, which is the first of its kind in China, will serve the increasing market demand for next-generation plasticizers. A newly-formed 50-50 joint venture company has been created, BASF MPCC Company Limited.

"High quality and reliable plasticizers help underpin industrial growth, and with this plant we will be well positioned to serve China’s growing demands. Additionally, this project brings us a step closer to BASF’s strategic goal to better serve local industries with local production in Asia Pacific of approximately 75% by 2020. The new joint venture with SINOPEC also solidifies our already strong partnership, and demonstrates BASF’s long-term commitment to China," said Dr. Albert Heuser, President, Functions Asia Pacific, President and Chairman, Greater China, BASF.

"This project is the first of its kind to bring BASF’s advanced INA technology into China, and to build a world-scale INA plant at Maoming Hi-tech Industrial Development Zone. It not only fills the country’s INA production gap, but also opens a new chapter for the strategic alliance between Sinopec and BASF. It closely unites two strong parties in order to enjoy mutual benefits and develop business together, taking our relationship to a new level," said Dr. Yu Xizhi, President of SINOPEC Corp. Maoming Company.

INA is used as the feedstock for the production of next generation plasticizers, including diisononyl phthalate (DINP) and non-phthalate plasticizer Hexamoll DINCH. DINP is widely used as a plasticizer in industrial applications such as automotive, wires, building and construction, while Hexamoll DINCH is BASF’s non-phthalate plasticizer for sensitive applications, including toys as well as food contact and medical applications.

BASF and Sinopec have a longtime partnership and jointly operate BASF-YPC Co. Ltd., a 50-50 joint venture formed in 2000 between BASF and Sinopec in Nanjing, China.

As MRC reported earlier, in summer 2012 the companies signed a Memorandum of Understanding (MoU) to further strengthen their cooperation by jointly exploring the possibility of building a world-scale isononanol plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. And, in January 2013, BASF and Sinopec completed a joint feasibility study and taken the next steps in the establishment of the INA plant in China.

China Petroleum & Chemical Corporation (Sinopec) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is China's largest manufacturer and supplier of major petrochemical products.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
MRC

MOSCOW (MRC) -- China's state-run Sinopec posted an increase in production in 2013, compared to the previous year, said Upstreamonline.

Output for 2013 totalled nearly 442.4 million barrels of oil equivalent which was up about 3.4% on 2012's total which came in at just under 428 million boe.

Helping boost figures was domestic crude production which totalled more than 310.8 million barrels, up 1.4% on 2012, and helped offset a 0.8% decline in overseas production which totalled 21.5 million barrels.

Gas production for the year was also up, with the Chinese company producing just under 660.2 billion cubic feet of gas, up 10.4% on the 598 Bcf produced a year earlier in 2012.

As MRC informed previously, in late 2012, Sibur, a Russian gas processing and petrochemicals company, and Sinopec International (Hong Kong) Co. Ltd, the wholly owned subsidiary of Sinopec, signed an agreement that will see Sinopec purchase 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP). Sibur and Sinopec are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC

MOSCOW (MRC) - Russia's production of finished polymer products decreased by 7.9% in December 2013 compared with the level in November on the back of seasonal factors. However, total production of polymer products increased by 7.3% in 2013, according to MRC analysts.

The biggest reduction in the output occurred for the sector of plastic windows and sills. According to the Federal State Statistics Service, December production of plastic windows and sills fell to 1.7 million square meters, compared to 2.3 million square meters in November 2013. Russia's production of these polymer products reached 27.5 million square meters in 2013, up 7.3% from the level in 2012.

Production of polymer doors and door boxes in Russia was about 73,600 square meters in December, down 17% from the level in November. Total Russian production of polymer doors and door boxes in 2013 was 977,400 tonnes, down 4.7% compared with the level in 2012.

December production of plates, films and noncombined sheets fell to 66,000 tonnes, compared with 68,800 tonnes in November. Russia's production of these polymers products in 2013 was about 841,000 tonnes, which is only 0.6% more than in 2012.

Production of tubes, hoses and fittings made of polymers in December 2013 fell to 42,300 tonnes, from 47,600 tonnes in November. Total production of tubes, hoses and fittings made of polymers in 2013 was about 586,400 tonnes, down 17% year on year.

December production of plates, sheets, porous and combined films in Russia declined to 17,600 tonnes, down 7.8% from the level in November. Total Russia's production of these products grew to 206,000 tonnes in 2013, up 15.9% than a year earlier.

December production of polymer bottles fell to 1.1 billion units. Total Russia's production of polymer bottles was about 13.5 billion units in 2013, up 1% compared to the level in 2012.
MRC

MOSCOW (MRC) -- German chemicals, energy and logistics group PCC SE and Israeli investment fund Fortissimo Capital have decided not to take part in the privatisation of Romanian insolvent chemicals producer Oltchim, said Seenews.

"We have decided, together with Fortissimo Capital, not to take part in the tender that will select the new owner of Oltchim. The current situation of the plant and the conditions of the tender procedure have led us to this decision," PCC SE representative in Romania Wojciech Zaremba said in a statement.

PCC SE holds a 32.3% stake in Oltchim.

Romania will select on February 3 the buyer of Oltchim SPV, a special purpose vehicle that comprises the core business and assets of the insolvent chemicals producer, its judicial administrators said in December. Binding bids can be filed by 1000 CET on January 31.

Besides PCC SE and Fortissimo Capital, a consortium led by Romania's Chimcomplex Borzesti and Russia's Oil Gas Trade has also entered the pre-selection procedure for the privatisation of Oltchim, the Romanian economy ministry said in November, adding that China's Baota Petrochemical Group and Junlun Petroleum are also interested in taking part in the race.

Oltchim was declared insolvent on January 30 last year. Romania tried unsuccessfully to sell its 54.80% stake in Oltchim in 2012.

Oltchim's total loss shrank to 39 million euro ($52.9 million) in the first nine months of 2013 from 70 million euro the same period of 2012.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.
MRC

MOSCOW (MRC) -- Sahara Petrochemical Co., the Saudi Arabia-based firm which last month announced plans to merge with Saudi International Petrochemical Co. (Sipchem) in the first half of this year, has earned net profit of SR578.7 million in 2013, registering a growth of 183% compared to net profit of SR204.4 million in 2012, as per Ein News.

In the fourth quarter of 2013, Sahara made a net profit of SR178.2 million, showing an increase of 176% over profit of SR64.5 million in the corresponding quarter of 2012, the company said in a statement to Saudi Stock Exchange.

The major improvement in Al Waha plant performances (an affiliate of Sahara) and the diversity of product grades produced led to the increase in sales. In addition, the increase in sale prices and lower feedstock prices, and the improvement in the results from associates were the reasons cited by the company for increases in its annual and quarterly net profits.

As MRC wrote previously, in December, 2013, Saudi International Petrochemical Co. (SIPCHEM) unveiled its plans to sign a share-swap merger agreement with Sahara (SPC) Petrochemicals Co. in the first half of 2014, seeking to create a company with about USD5 billion in market value.

Sahara Petrochemical is involved in building and operating petrochemical projects, especially propylene, polypropylene, ethylene and mixed polyethylene industries.
MRC