US Marathon Oil to Sell its Irish Asset to PETRONAS

The US' Marathon Oil has agreed to sell most of its Irish assets to PETRONAS for $180 million.also include a 100% interest in the company's gas storage business with current capacity of 7 billion cubic feet.  

This acquisition includes a 86% stake in the producing Seven Heads gas fieldand a 100% operated interest in the Kinsale Head Area comprising Kinsale Head, South West Kinsale and the Ballycotton gas fields, as well as an 86% interest in the gas producing Seven Heads field which is tied back to Kinsale. All the gas fields at Kinsale area are estimated for current net production of 36 million cf/day. 

Petronas subsidiary Star Energy was appointed for Petronas behalf responsible for the acquisition. 

New Gas Fields Found in Mozambique

Two new natural gas fields were found in the southern Inhambane province of Mozambique. The gas field discovery is foreseen for domestic demand for natural gas as suggested by Mineral Resources Minister Esperanca Bias of Mozambique including for electricity generartion, fertiliser factory and fuel for vehicles.

Under Mozambican law, any consortium that has discovered gas reserves has six months to assess its findings and present a report to the government. In this case, the player will be South Africa's Sasol , Malaysia's Petronas and the Mozambican government. Sasol, the world's biggest maker of diesel from coal, owns 50 percent of the project, Petronas owns 35 percent, while the government of Mozambique holds 15 percent through national oil company Empresa Nacional De Hidrocarbonetos De Mozambique (ENH). 

Dow & PIC Setting up a JV Petchem

Dow Chemical and Kuwait’s Petrochemical Industries Co (PIC) have been reportedly signing a mutual agreement for a $17.4 billion K-Dow petrochemicals joint venture. It is estimated that K-Dow would generate $11 to $15 billion annual sales with the new JV which includes Dow's existing joint-ventures MEGlobal and Equipolymers. 

The 50:50 JV company will use Dow's strength from its olefins and polyolefins capacity turning it to be a major producer of petrochemicals and plastics including polyethylene, ethylene amines, ethanolamines, polypropylene and polycarbonate. K-Dow is also seen to be one of the important polypropylene technology and market related catalysts licensor.

World's Biggest Carrier Dropped $882 Million Deal

The world's largest ship company and carrier of liquified natural gas, MISC Bhd has reportedly dropped a $882 million dollar acquisition deal for oil service firm Ramunia Holdings Bhd due to due diligence incompleteness. MISC is a unit of state oil company Petronas.

$25 Million Ransom by Somali Pirates

Somali pirates have demanded $25m ransom in return for a hijacked oil tanker hijacked from Saudi owner of the Liberia-flagged MV Sirius Star. The pirates had given the Saudis 10 days to comply. 

The Sirius Star is the largest ship ever hijacked known as a very large crude carrier (VLCC), had been heading for the US via the Cape of Good Hope at the southern tip of Africa. Sirius Star standsat 1,800 feet now anchored off Somalia near a pirate stronghold Haradheere. The sea traffic operating off the Horn of Africa has been attacked more than 90 vessels with more than £60m ($40m) from ransom demands were made.

Itochu Bought New Zealand MDF Plant

Japanese conglomerate Itochu Corp has reportedly bought New Zealand’s Carter Holt Harvey's medium-density fibreboards (MDF) plant in Rangiora, New Zealand for an undisclosed amount.

The new joint venture is housed under new shareholder, Japan’s Daiken Corp of which 51% owned by Daiken and remaining by New Zealand.  The MDF joint venture will be known as Daiken New Zealand.

NPC Iran to Start-up New PDH Plant

Iran's National Petrochemical Co (NPC) will be starting up its new 350,000 tonne/year propane dehydrogenation (PDH) plant at Bandar Imam, Iran, by 2011 which is currently under construction. So far the propylene product has no outlet for derivative downstream other than planned polypropylene (PP) units at Bandar Imam. It was also reported that phenol-acetone projects are currently underway at Bandar Imam, Iran.

Malaysia to Build Petrochemical Plants in Sabah

Malaysia is expected to build a petrochemical plant in Sabah, despite global economic downturn after heavy pressure from the local political scene. The Malaysian government has instructed the complex after Petronas, its national oil company to construct the RM3billion gas pipeline from Sabah to Sarawak.

Early indication is expecting a full-fledged petrochemical industry setup.

German Biodiesel Power Plant Facing Economic Threat

Germany’s environment ministry in the wake of economic turmoil must act quickly to ensure Germany's power stations running on palm and soy oil-based fuels and biodiesel do not go bankrupt.

This is after a legal change to restrict palm and soy-based fuels to no longer be counted into biofuels quotas. The resulting consequence is that the plants will no longer receive a bonus for using renewable energy from 1 January 2008 impacting most of power plants margin.

Lucite Acquired by Mitsubishi Rayon

Mitsubishi Rayon is reportedly in the midst of buying UK-based Lucite International for $1.6bn in cash, rumoured caused by the recent economic downturn. The acquisition is expected to be completed by end-January 2009 boosting Mitsubishi Rayon production technologies  expected to increase Mitsubishi competitive edge to a new level.

Plastic Futures Available December in Dubai

The Dubai Multi Commodities Centre (DMCC) and the Dubai Gold and Commodities Exchange (DGCX) will be launching the first ever Middle East and Asia plastics futures contracts targeted to be live in December 2008. The products for the Future Exchange will be polypropylene (PP) and linear low density polyethylene (LLDPE). More plastic derivatives will be inlcuded in the near future.

The futures will be backed up by physical deliverable in warehouses. DMCC selected various locations for the warehouses including Jebel Ali in Dubai, Busan and Gwang Yang in South Korea, Pasir Gudang and Tejung Pelapas in Malaysia, and Singapore.

Malaysian Offshore in Drastic Development

After the announcement of new offshore oil and gas development by PETRONAS Carigali, the exploration and production arm of Malaysian group Petronas, the offshore development in Malaysia has seen a new height.

The programme is worth MR2.8bn ($773m) of contracts to local suppliers for several drilling and production platforms for development of fields off the northern coast of Borneo and east of Peninsula Malaysia increasing production levels and deliver more supplies to a liquefied natural gas plant early next decade. The expected construction will be at least three years and involve the transportation of several jackets and topside modules from yards to field locations. It will involve a host of offshore vessels as the platforms are deployed and pipelines installed.

Petronas is developing fields offshore Sarawak, Sabah and off the state of Terengganu with new platforms and pipelines which when completed twill boost Malaysia's gas production by 950m cu ft per day. The multi-billion contract will see major development and increase in human capital and infrastructure in the local area.

Malaysia to Raise Biodiesel Export

One of the largest biodiesel producer from palm oil, Malaysia has raised its 2008 biodiesel export forecast to 200,000 tonnes a twofold increment from its previous year.

High spread between the selling price of palm methyl ester and the feedstock crude palm oil (CPO) is seen as the main reason behind the huge jump. Malaysia currently has 1.6 million tonnes capability to produce CPO per year mainly for production of methyl ester. Malaysian's biodiesel export mostly goes to the European countries.

BASF Acquired 66.67% Ciba

BASF has reportedly holding 66.67% stake in Swiss specialty chemicals company Ciba after the expiry of the public tender offer period on 28 October. BASF had previously holding some of Ciba's shares. A total of 45,030,453 of Ciba shares had been tendered to BASF as part of the company’s public tender offer to shareholders of Ciba Holding and after combination of BASF's previous shares, it amounted to 1,011,536 Ciba shares capitalizing 66.67%.

US Fertilzer Expected to Continue on Strong Demand

Despite the recent global economic turmoil, US fertilizer industry is looking bright as corn futures prices for December 2009 delivery indicate that the upcoming seasons should be picking up demand. The corn industry is one of the largest consumer for the fertilizer industry and this will boost demand for as farmers are expected to plant corn instead of soybeans which will boost fertilizer demand.

Analysts are predicting that the fundamentals that's driving fertilizer demand remains strong coming from world growing population in developing nations.

Aker in Agreement with Shell for Supply Arrangement

Sarawak Shell Berhad (SSB) has awarded five year supply arrangement with Aker Solutions for subsea production systems equipment and services. The agreement covers five-year supply including design, manufacturing, testing, installation, commissioning, technical support and maintenance of wellheads, subsea trees, subsea control systems, flow bases and tie-in equipment. This is the first such agreement between Aker and Shell in Malaysia.

Middle East Petchem Market Review

Despite the recent financial hiccups in the global market, the Middle East countries continue with exports as usual in 2008.  It looks as if the situation does not affect the demand for Middle East petchem.

This is mainly due to the substantial cost advantage (feed stock advantage) the region has over other producers. In addition to that, many of the countries are booming with new capacity addition of petrochemical plants, boosting competition. Demand for 2008 is expected to remain high despite there is a potential slower growth in the Western world affecting mostly ethylene demands.

Shipyards are also busy with new ships being built pushing supply down on top of other underlying problems such engineering and the design process. 

BG and PETRONAS Agreed on Open Market for Dragon

BG and Petronas who both share and hold the capacity rights at Dragon LNG are expected to operate the terminal on an open-market basis allowing demand to dictate imports into the terminal. The Dragon LNG joint-development partnership comprises of 50% BG Group and Petronas with 30% and Dutch terminal developer 4Gas with 20%. Dragon LNG is built on a former refinery site taking advantage of two storage tanks and one jetty with capacity to handle 6.8 mtpa of LNG. 

China Plastics Demand Slowing

World petchem products are expected to be in a slump due to lower demand in China plastic products as consumer products, such as toys, shopping bags, cables, car foams and packaging film demand are slowing. Analysts are expecting global plastics markets to be in a downturn trend lasting anywhere from 1 to 4 years.

The current situation in the US doesn't help either. United States is the major plastics consumption and currently in a recession bringing demand for consumer products down. This resulted in the world to loose the top two countries for plastics consumers.

However, a slight growth for polyethylene based products are expected to be maintained throughout this year until next year.

Samsung Petrochemicals Running Reduced Capacity

Samsung Petrochemicals's PTA plant is currently operating at reduced capacity levels due to a regular maintenance turnaround. The PTA plant which is now running at 75% capacity is located at Daesan with production capacity of 700,000 metric tons per year.

However, it is expected that the PTA plant will resume production at lower rates especially as many petrochemical plants in South-East Asia are reducing their operating levels due to poor operating margins and decline in demand for petrochemical products from downstream players. This is mainly due to the current financial crisis and the doom of commodity prices.

Georgian Ports Reopened

Following the geopolitical tense between Georgia and Russia, the Georgian port of Poti was partially closed and reopened again recently. Earlier, Russia had effectively shut down Georgia’s largest commercial port with warships patrolling around 15km outside the port.

Vessels trade was halted although some routes are operating as usual such as the Poti and and Tblisi route. The disruption had caused severe financial impacts on petrochemicals and crude oil vessels.

MOPCO Took Over Agrium Fertilizer Project

After months of delay, Egypt’s MISR Oil Processing Company (MOPCO) has agreed to acquire EAgrium joint-venture fertilizer project making EAgrium a subsidiary of MOPCO. Under the new deal, Agrium would own 26% of the combined project, including MOPCO’s recently completed 675,000 tonne/year urea plant as the acquisition is based on share swapping.

The Egypt Fertlizer project worth $1.2 billion was delayed on 21 April due to local resistance with Egyptian government was rumoured to take over the whole project.

South America Gets Iran's Ethylene Tender

Iran's National Oil State - Iran Petrochemical Commercial Co (IPCC) has sold a tender worth 5kmta ethylene cargo to a South America buyer priced at around $1,800/tonne on a cost and freight (CFR) basis

It was marked as exceptional as most  southeast Asia buyers are bidding at low $1,300s/tonne CFR level. Speculative talks indicate cargo destination to Venezuela from Assaluyeh and/or Bandar Imam Khomeini (BIK).

China's Jianfeng Signing JV for Melamine Plant

Despite recent hiccups in melamine prices, China-based JianFeng Chemicals has signed a joint venture (JV) agreement with Austria’s Agrolinz Melamine International (AMI)for a $67 million melamine plant in southwestern Chongqing city. The melamine plant will have a capacity of 30kmta located in Baitao chemical industry park with expected construction to be determined at a later stage.

Ticona Extending Distribution with Resinex

Ticona has extended its contract with distribution company Resinex to distribute Ticona’s specialty plastics in Benelux countries, Ireland and the UK alongside with existing Eastern Europe. Resinex distributes for over nine plastic products with 400 modified grades to customers.

Petronas - Australia Gladstone LNG Ink MoU

The Directors of Liquefied Natural Gas Ltd inked down a Technology Memorandum of Understanding with SK Engineering and Construction (SKEC) for the framework for SKEC and the Company to establish a technology joint venture. The JV is 50% each for between LNG (which is partly-owned by Malaysian O&G PETRONAS) and another 50% for SKEC.

The agreement focuses on:

• Completion of the final design of the OSMRTM process technology for inclusion in the Gladstone LNG Project front end engineering and design (FEED) package
• OSMRTM process technology license to the Gladstone LNG Project process guarantee.
• Colloboration for commercialisation of the OSMRTM process technology including development, marketing and LNG related processes.

New Fertilizer JV by Ecuador-Venezuela

Ecuador and Venezuela is signing an official agreement between both energy ministers for a new fertilizer project joint-venture. This will make both coutries as the major producer of fertilizers in the region. The agreement involves a construction of 300,000 bpd refinery which is to be completed by 2013. The stakeholders are known to be Petroecuador of Ecuador 51% stake and Venezuela's PDVSA owning 49%.

Lotte Daesan Commissioned South Korea New PP Unit

South Korea based company, Lotte Daesan has commissioned up its new 300,000 tonne/year capacity polypropylene (PP) plant in Daesan. Lotte Daesan complex has previously undergone expansion on its ethylene, benzene, linear low density polyethylene (LLDPE), butadiene (BD) and monoethylene glycol (MEG) plants. The PP unit is now under quality control measure before going to market.

Agropolychim Switching to DAP and MAP Chemical Plants

A Bulgarian fertilizer producer, Agropolychim is switching to diammonium phosphate (DAP) and monoammonium phosphate (MAP) at its Devnya plant which has a capacity of 850 tonnes/day of DAP/MAP. The chemical plants has flexibility to swing either DAP/MAP or triple superphosphate (TSP). Agropolychim produces around 25,000-27,000 tonnes/month of TSP mostly for export market.

SABIC Closing UK Aromatics

With sharp increase in feedstock prices, more companies are forced to temporarily shut down petchem units until prices stabilize. SABIC Europe is planning to close down two UK aromatics units at North Tees, near Seal Sands, and the paraxylene plant at Wilton, near Redcar. The closure is planned in end 2008.

BASF Shuts Down Butyl Acetate Unit

BASF is preparing for a turnaround of its 90,000 tonne/year butyl acetate unit in Ludwigshafen, Germany expected to commence on 22 which most likely will push the price up.

SABIC Europe Closing Aromatics Unit

After the recent spike in oil price, petchem business is facing challenges. Due to poor economics, SABIC Europe is closing down two UK aromatics units at North Tees, near Seal Sands, and the paraxylene plant at Wilton, near Redcar.

Yara Formed Joint-Venture with NOC Fertiliser

Norway’s Yara has signed major agreements with National Oil Corp (NOC) and the Libyan Investment Authority (LIA) to form a joint venture for the production and marketing of mineral fertilizers

The JV comprise of 50% stake by Yara and remaining owned by LIA and NOC. The JV was setup to upgrade existing ammonia and urea production plants with capacity of approximately 700,000 tonnes/year of ammonia and 900,000 tonnes/year of urea located at Marsa el-Brega and additional new fertilizer plants.

Albermarle Acquired China JVs

Albemarle, a US-based specialty chemicals maker has acquired 100% of two polymer additive joint ventures in China namely Ningbo Jinhai Albemarle Chemical & Industry, and Shanghai Jinhai Albemarle Fine Chemicals. The acquisition has moved Albemarle as the top position of manufacturer and supplier of polymer antioxidants in China doubling its antioxidant production capacity.

Dow - Rohm and Haas Deal Amounting $750 Million

US producer Dow Chemical in a buy-over deal with Rohm and Haas will need to pay a $750m (€473m) termination fee if it abandoned its $18.8bn deal to buy the specialty-chemical firm, Rohm and Haas. The deal was a two-way and deal and if Rohm and Haas subjected to a pull-out, the company had to pay Dow a $600m termination fee.

Japan Aronkasei Buys Mikuni

Aronkasei has signed an agreement to buy all the shares of Daicel Industries wholly-owned subsidiary Mikuni Plastics. The main reason for selling was due to lack of synergies between parent company, Daicel and Mikuni Plastics, a producer of polyvinyl chloride (PVC) fittings, plastic automobile parts and home appliance components. Aronkasei which produces PVC fitting and pipes however, could be expecting synergies from the integration of Aronkasei and Mikuni Plastics in business operations and production.

Dow Stop Production on Polystyreme Poor Economics

Cyclical petrochemical business has brought Dow Europe to temporarily stop production of all its polystyrene (PS) resins at Terneuzen, the Netherlands. However, some operating units across Europe will still operating at reduced rates. Dow Polystyrene (PS) has production plants at Tessenderlo, Belgium, Bilbao in Spain, Schkopau in Germany and Lavrion in Greece and the Terneuzen unit which has an annual capacity of 50,000 tonnes/year.

The feedstock price hike comes mostly from the recent increase in global oil price. PS demand has been low for several months impactin producers in Europe including BASF, Total Petrochemicals, Dow, Polimeri Europa and INEOS NOVA.

CNOOC to Build Petchem Complex in Hebei, China

It seems like the high price of chemical plants construction doesn't have an effect on petchem development as China National Offshore Oil Corp (CNOOC) is planning to build a petrochemical complex in Cangzhou city in northeastern Hebei province. Construction is expected to start in late 2008 with capex investment may be in the tune of $2billion. No official news have been released on the complex capacity as yet.

PETRONAS EBITDA Increased 24%

PETRONAS, a Malaysian state-owned oil and gas major has posted a 24% year-on-year rise in its earnings before interest, tax, depreciation and amortisation (EBITDA) coming from sustained growth in demand for oil on the back of strong global economic expansion particularly in China and India. Revenue was up 21.2% to M$223.1 with PETRONAS profit after tax rose 31%. However, PETRONAS suffers drop in revenue for its petrochemical business segment nearly 7% due to decrease in production volumes from 9.8m tonnes to 9.3m tonnes.

New Methanol and DME Plants by Hubei Biocause China

China-based Hubei Biocause Pharmaceutical Co is constructing a methanol plant and a dimethyl ether (DME) unit, both with a capacity of 200,000 tonnes/year. The chemical plants are located at Jingmen city.

The DME unit is expected to come on-stream llate 2008 completing the third phase of the total 1millin tonne/year DME chemical complex. The first phase of the project was completed in April 2007 with nameplate capacity of 100,000 tonne/year and then another 200,000 tonne/year unit was brought on-stream in June 2008 for second phase of the project.

Shanghai Petrochemical Expanding Cracker Capacity

Sinopec subsidiary, Shanghai Petrochemical, is in the midst of expanding the capacity of its No 1 cracker to 600,000 tonnes/year from 150,000 tonnes/year to build new chemical plants.

Some of the new chemical units planned are 300,000 tonne/year polypropylene (PP) unit and a 380,000 tonne/year monoethylene glycol (MEG) facility which may mean that the cracker need to be expanded up to 800,000 tonnes/year.

New Russion Pipe Makers JV with Sumitomo and Sekisui

Japan’s conglomerate Sumitomo Corp and chemical producer Sekisui Chemical are planning to form a joint venture with Russia’s water company Vodokanalstroy (VSK) to form LLC Sumi-Lon. Sumi-Lon will be producing reinforcement plastic pipes.

The company's first unit has a capacity of producing 3,000 tonnes/year of plastic pipes, which was expected to start commercial production by the end of December 2008 with additional total capacity of 15,000 tonnes/year by the end of March 2012

SABIC Europe Butadiene Unit on Force Majeure

SABIC Europe has declared force majeure on butadiene supply as its Geleen butadiene (BD) unit in Netherlands with the chemical plant operating rates reduced due to technical issue.

The butadiene unit has a capacity of 130,000 tonne/year butadiene extraction.
Butadiene supply gets major cut due to at least two other cases of butadiene forces majeures in other plants at LyondellBasell’s Wesseling, Germany, unit and the other at INEOS Olefins’ Cologne, Germany, site.

Butadiene is currently under extremely tight supply due to recent production issues, combined with strong demand both domestically and abroad pushing the price to record high.

US A Schulman Selling Business Unit

US plastic compounder A Schulman is plannning to either establish a joint-venture or selling its Invision business unit,

Schulman Plastic Company initially marketed Invision to be used in automobile interiors as a substitute to polyvinyl chloride (PVC).
However, US automobile sales is declining forcing the company to sell to non-automobile market as well which is also under hit due to US economy slowdown.

The news receives mix reaction with others claiming the product is well received which could lead to opportunity loss. The Invision business unit reported operating losses of $1.6m this year with $2.2m loss for last year.

PETRONAS Found Gas in Pakistan

Despite the regional political instability, PETRONAS Carigali Pakistan Ltd (PCPL), a unit of Petroliam Nasional Sdn. Bhd. (PETRONAS) existence in Pakistan progressed. PETRONAS Carigali had reportedly made a second gas discovery in Mubarak Block, located in Sindh Province, Pakistan.

Technology to Convert Waste to Fertilizer

Two Illinois companies have been awarded a $1m from United States federal grant to look into ways to produce nitrogen fertilizer from wastes.

US Department of Agriculture (USDA), is funding the research on a process derived from N-Ovation and Fluidic MicroControls, which in theory can derive nitrogen from a gas created by cooking crop residue. The gas comes from cooking farm waste, which then turned into nitric acid by introducing a spark of electricity.

The protoype is already existing and the companies are looking at efficient way and to create a machine that capable of supplying 1000 acre of farm fertilizer. This will revolutionize the way fertilizers are made which currently extensively from petrochemical plants.

Japan Energy Venturing Into Petrochemicals from Plastics

Japan Energy has become the Japanese first refiner to use processed waste plastic as a thermal cracking fuel at its Mizushima refinery. The technological breakthrough is seen as a great potential for the company as petrochemical feedstock is skyrocketing and plastic wastes will not only save feedstock cost but it might as well be counted as negative cost due to save on waste management.

The nation’s sixth largest refiner has the capacity to turn 1,000 kilolitres/year of liquefied waste plastic to petrochemical products using the hydrogenation refining unit at Mizushima. Most of the refined products will be naphtha. Currently there is an abundance of plastic wastes in which Japan generates 10 million tonnes of waste plastic in 2006. Only 5,000 kilolitres of liquefied plastic was produced for refiners from the total of 10,000 tonnes processed.

DOW Chemicals Growing Business in Asia

Dow Chemicals is reportedly making major investments will be made by Dow Chemicals' performance fluids business in the Asia Pacific region. New R&D chemical plants are planned for China and India in late 2008 targeting research for increasing output of new water-soluble fluids' at its Optimal JV with PETRONAS.

Shell Seeking JV Partners for Styrene Monomer/ Propylene Oxide Latest Technology

Shell Chemicals is seeking potential joint venture partners for its new styrene monomer (SM) and propylene oxide (PO) facility. The chemical plant is expected to cost in the region of $500 million which is to be built in Southeast Asia or Middle East with a world-scale capacity for Asia Pacific demand.

The chemical will be producing mainly PO with SM as co-products hence having higher flexibility and financial advantages due to current strong propylene oxide value chain.

Petrochemical Conference: International Refining & Petrochemicals Week, London 2009

International Refining & Petrochemicals Week

Royal Garden Hotel, London 16-19 February 2009
Incorporating
11th International Petrochemicals Technology Conference & Exhibition: IPTC
10th International Downstream Technology & Catalyst Conference & Exhibition: IDTC

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Dear Colleague,

 

EPC is delighted to announce that International Refining & Petrochemicals Week will be held in London in February 2009.
Following the success of the 2008 events in Prague, IPTC and ICTC will once again be held consecutively to allow participants to maximise their attendance.

 

Please click on the links above for IPTC and IDTC to:

• View conference focus and topics
• Submit an abstract for the programme/s
• View sponsorship and exhibition details
• Register now or sign up to be reminded later for IPTC / IDTC  
•  View previous programmes 

Alternatively please contact me if you have any questions or queries.

Malaysia to Use Nuclear Energy

Malaysia is prepared to use nuclear energy if oil price continues to soar to substitute oil as a long-term alternative to produce electricity. The government official told the press that Malaysia would first look for other alternative sources of power such as solar, hydro, mini-hydro, biomass and renewable energy source from garbage.

It was proposed that turning to nuclear energy in the future may be the answer as it is cheap and safe. However, the infrastructure to generate electricity for the future will take around 15 years.

Malaysian Terengganu Oil Wells to be Reopen by ExxonMobil

Exxon Mobil will reopen abandoned oil wells in Terengganu waters to take advantage of the escalating crude oil price in the world market for investment value of US$2.3 billion under production sharing contract with Petronas renewal.

Reopen of the old oil wells will explore deeper in search for oil at a much higher investment cost which only become feasible at current oil price.

India Urea Plant Revived by RCF and DoF

India’s Rashtriya Chemicals and Fertilizers (RCF) together with the Department of Fertilizers (DoF) plan to revive India's already mothballed plants due to rising demand and shortages of fertilizers. Currently, India is importing 5 to 6 million tonnes of urea on top of 20 million tonnes local production.

RCF and DOF planning to revive Hindustan Fertilizer Corporation’s Durgapur plant in West Bengal, which was earlier a naphtha plant, and Fertilizer Corporations of India’s coal-based Talcher plant in Orissa which both are now at the first stage of our feasibility study to produce 100,000 tonnes/year of urea.

The revival plan is expected to be completed in 2012 subject to assurance by the Petroleum Ministry of natural gas to supply within three-to-four years for manufacturing urea.

Natpet's Yanbu Project Gets US$ 125 Million Loan

Saudi National Petrochemical Industries Company (Natpet) has signed a financial agreement with Saudi General Investment Fund for a $125m loan which will be used to finance the company project in Yanbu.

The project consists of a Spheripol PP technology from Basell petrochemical plant with capacity of 400,000 tonnes/year propylene and polypropylene.

Jubail Petchem Company Established by Aramco and Total

Saudi Arabian Oil Co (Saudi Aramco) and France’s Total have signed a joint venture Petrochemical Co for a 400,000 bbl/day capacity Jubail Refining. The refinery is expected to begin operations by 2012 producing diesel and jet fuels, 700,000 tonnes/year of paraxylene, 140,000 tonnes/year of benzene and 200,000 tonnes/year of polymer-grade propylene.

The refinery is in its close proximity to the Arabian heavy crude supply system and closeby to the Jubail Industrial City's King Fahad Industrial Port, power and water grids, and residential areas.

Gulf Cooperation Council (GCC) Nations Investing $200 Billion

It is estimated that as much as $200 Billion will be invested by the Gulf Cooperation Council (GCC) nations are via 14 to 20 energy projects as the energy demand is increasing. This is much helped by the rising surge in the crude oil price.

Previous analysts estimate that fear due to possible US economic recession or the mortgage market have yet to see any decline of energy funds and a negative impact on GCC countries if not helping to fuel the investment demand.

As much as 20% of the $200 Billion will be invested in downstream petrochemical plants and complex in the Gulf Nation such as Saudi Arabia, Qatar and other booming Middle Eastern countries. New petrochemical capacities in the Middle East are growing at an exponential rate and is expected to continue at least until 2012.

PETRONAS Sues Adani Energy

Petroliam Nasional Berhad, or Petronas is suing Adani Energy Ltd, subsidiary of Adani group for breach of contract in agreement to buy and sell liquefied natural gas, or LNG. The legal proceedings claimed $100 million in losses, way in excess of the Adani Energy revenue which may bring it to bankruptcy.

Petronas subsidiary, Asean LNG Trading Co. Ltd, has initiated legal action due to Adani Energy failure to service the contract to muster space at a cargo terminal in Gujarat in 2007 to take delivery of LNG. Asean LNG initiated arbitration proceedings against Adani Energy in London Court of International Arbitration in January, claiming damages for failure to adhere to the agreement.

India's rapidly expanding economy which a study conducted claims that for India to sustain a growth of 8-9% in gross domestic product its energy supply has to fourfold creating a massive influx of demand of LNG and other energy derivatives into the country.

PETRONAS Buys Stakes in Santos Australia LNG

Malaysia's State Oil Company, Petronas is buying a 40 percent stake in Australian energy firm Santos Ltd's Gladstone for $2.51 billion. Santos Gladstone is in the liquefied natural gas project in Australia.

Petronas' investment in the project will help to fasten the usage of coal seam gas as a feedstock as Petronas is seen as the ideal partner to help develop Santos' coal seam gas to LNG strategy.

Santos was quoting that Petronas will inject capital investment of $2.01 billion followed by remaining for the second LNG train at the Gladstone, Queensland. The key strategic alliance is due to marketing power of Petronas, the third-largest LNG producer in the world. Santos shares jumped 10.12 percent to a record high of A$20.90 by 0325 GMT, a proud achievement for both Santos and Petronas.

Other oil and gas companies such as Exxon Mobil are also taking lead in LNG project in Papua New Guinea with Santos for a race amid rising prices and a forecast surge in global demand.

Malaysia New Oil Field to Increase Production

Malaysia's newly found oil field, Kikeh field will increase production output to 120,000 b/d by end of 2008 as compared to only 60000 barrel per day in 2007.

Malaysia's Kikeh field is operated by US' Murphy Oil, will be more than happy to pump out oil especially since oil price now fetching USD140. Kikeh's oil is light sweet grade, with an API of 34.91 and sulfur content of 0.105%, is of very good quality and traded mostly in the Asian market.

The stake is Malaysia Kikeh is held by operator Murphy Oil with 80% interest in Kikeh while Petronas Carigali holds the remaining 20%.

Global Oil Output Falls

First time since 2002, the global world production output has fallen by 0.2 percent in 2007.

Consumption, however rose by 1.1 percent, which pressured the oil price even more to be on the bullish side. Oil production fell by 130,000 barrels per day (bpd) last year to 81.53 million bpd amid China's and India's growing demand. Oil price has topped almost $140 per barrel due to various reasons and global oil production shortage is one of key factors.

The world's only hope of increasing production stays with OPEC as non-OPEC production has seen an inevitable decline.

Malaysian' Petronas Maintains Gas Price

Petronas chairman Tan Sri Hassan Marican, has given affirmation that the nation's natural gas price sold as NGV or compressed natural gas in the country will remain the same for the motorists. This come soon after public rage of Malaysian Government that increased the price of oil by reducing subsidy given to the nation.

Petronas is also caught saying that there will be additional 200 stations by 2010. Currently, for every litre sold at 68 sen, the national oil company forks out RM2. Petronas told the press that the biggest challenge is due to high electricity bill for the petrol stations and transport of compressed natural gas outside pipeline area.

Australian Titanium Oxide Production Continues

Australian TiWest, the company that produces Titanium Oxide (TiO2) will continue operation by Tronox of US Texas. TiWest titanium dioxide (TiO2) is a joint venture in western Australia. The production has been badly hit by a force majeure declaration due to natural gas supply limitation.

Tronox however mentioned that the sustainability of the TiO2 production is now susceptible to supply of natural gas and electricity.

TiWest complex houses Cooljarloo mineral sands mine, Chandala synthetic rutile plant and Kwinana titanium dioxide pigment plant. The disruption of natural gas supply cost has not been revealed yet.

Malaysia Increase Fuel Price to RM2.70 per Litre

Months after news regarding Malaysian's high subsidy oil price to the nation, the government had raised the fuel price to RM2.70 per liter of Petrol which started a public rage. The new price is 40% higher of what average Malaysians had paid before the price hike.

Sudan Finalizing Agreement with Malaysia's Petronas

Sudan is in the midst of finalizing an agreement with Malaysia's Petronas for a 175,000 barrels per day capacity Port Sudan refinery with the Sudan oil ministry.

Sudan's Energy and Mining Ministry signed an agreement with the Malaysian state oil and gas company, Petronas in August 2005 to build 100,000 barrels per day refinery in a 50/50 joint venture. The refinery will be designed to use Sudan's high acid crude which Petronas already has a 40% stake from the total Sudan production of around 500,000 barrels per day of crude oil

Malaysian State Oil Company Petronas to Burst in 2018

Malaysian State Oil Company, Petronas is expected to pay up to RM164 Bln in gas subsidy up to 2022 for the power sector and up to 2018 for the non-power sector. The figure is for a relaxed market price.

If subsidy to continue however, as much as RM252 Billion will be subsidised by Petronas. The pricing formula was signed with all the gas buyers but suspended in 1997 for power sector due to economic recession and 2002 for non-power sector.

Beginning July 1, 2008, the prices of gas supplied by Petronas in Peninsular Malaysia will be revised. For the electricity sector, the price will be increased from RM6.40 per mmBtu (million British thermal units) to RM14.31 per mmBtu. The current market price is RM44.42 per mmBtu and we are going to sell it at RM14.31 per mmBtu. For that price, Petronas is still subsidising RM30.11 per mmBtu.

United States Asked China to Join International Energy Agency

It seems that the oil crisis is getting at the nerve of many Americans. The U.S. has asked that China, the second major consumption of energy after United States to join the International Energy Agency, which was set up after the oil shocks of the 1970s to help developed countries manage emergency oil supplies.

The International Energy Agency (IEA) is currently made up of the world's richest nations and China participation is hope to bring relief in the current global oil price soaring.

Chinese officials confirmed the news and was showing interests to join IEA but concerned since the group is part of the Organization for Economic Cooperation and Development, which includes most of the world's richest countries which vow to an open market economy and democratic pluralism, a concern to Communist China.

Beijing Limiting Petrochemical Production During Olympics

Some chemical plants in Beijing will be closed and some reducing operation capacity as Beijing Municipal setting a new air quality guideline during the Olympic and Paralympic games.

Sinopec subsidiary Yanshan Petrochemical is already planning a 30% capacity reduction at its facilities in the Fanshan district of Beijing.

Some other chemical players are arranging turnaround during the Olympic Game as city transport will be restricted, and products may not be delivered to other cities. The Eastern Chemical Factory, a subsidiary of Beijing Eastern Petrochemical Co, was required to stop operation by government.

China is preparing considerably for the 2008 Olympics.

NEW JOBS OFFERING AT SABIC GROUP

Jobs available:

 Position 1: Financial Analyst
Qualifications: Bachelor of Science in financial field. Nationality: any. Minimum experience: 5 years.
Job responsibilities: Should able to evaluate a new investment from financial aspects, new project financial evaluation and apply the project evaluation parameters such as IRR, NPV…etc, Making and evaluation feasibility study (finance side of it)

Position 2 :Business Analyses
Qualifications: Bachelor of Science in Business field. Nationality: any. Minimum experience: 5 years. Job responsibilities:
Should able to built different business models, investment valuation, investment comparisons. Prices followers

Position 3 :Mining & Metrological or Metal Engineer
Qualifications : Bachelor of science in relevant field. Nationality : any. Minimum experience : 5 years. Job responsibilities:
Should able to evaluate ,analyze all the technical aspects or mining , iron ore processing from mining process to reduction process, making & evaluation feasibility study (the technical side of it ).

 Position 4.    Process Engineer:
B.Sc. Chemical Engineering (mandatory) and experience of min 9 years.Experience with Process optimization calculations and simulation software such as Pro-II.Experience in Petrochemicals or Refinery industry and doing mass and heat balance calculations.Experience in process HAZOP study and process control logics. Preferred experience in Polypropylene (DOW or Basell) technologies.Good in English speaking and writing skills as well PC knowledge.

Position 5.    Instrument Engineer/Control System Engineer:
B.Sc. Electrical-electronics and experience of min 9 years.Experience in Yokogawa and Honeywell DCS installation and trouble shooting.
Experience in PLC programming and trouble shooting.Experience in developing control logics and implementation.
Experience in GE Mark V & Mark VI for gas turbines and CCC control systems.Experience in Plant instrumentation calibration and modifications such.Good in English speaking and writing skills as well PC knowledge.

Position 6.   Control System Eng
B.Sc in Electrical/Electronics with minimum 10 years experience. Should have experience in Yokogawa & Honeywell DCS installation and troubleshooting, PLC programming & troubleshooting, developing control logics & implementation. Need experience in GE Mark V & VI for gas turbines & CCC Control Systems and plant instrumentation calibration & modifications such. Good in English speaking & writing skills as well PC knowledge.

Position 7.    Mechanical Engineers (Design):
Degree in Mechanical Engineering with minimum 8 years experience in petrochemical/refinery in design change package preparation, reviewing, acceptance  and execution. Be conversant with material selection and design of various plant equipment such as  pressure vessels, heat exchangers…etc. Knowledge of applicable code/standards like ASME SEC I &VIII/PD5500, API 650. Also familiarity with piping code ASME B31.1/3/8, and Stress Analysis of piping system using software like CESAR-II/K-PIPE. Familiar with Safety/Health/Environment requirement. Good command of the English language reading and writing.

Position  8.   SPECIALIST, CONTRACT
B.S in Engineering / Business Management with 8-10 years in Petrochemical industry in contracts management. Able to negotiate terms and conditions & prepare the contract.Good communication skills.

Position 9. Business Analyst
BS Degree in Marketing/Industrial Engineering/Statistics/Process Engineering with 6 to 7 years of experience in Petrochemical Manufacturing
Knowledge of Company's manufacturing process is needed. Good communication and computer skills are critical. Able to develop and maintain necessary databases and models that will facilitate business.Able to analyze business performance and prepare analytical and research report.

 Position 10..Safety Engineer Requirements
Chimecal/Mechanical Engineer background ,15 years of experience. work at petrochemical or refinery industry. Experience on JSA, Risk Assessment and safety culture

Position 11.      PDH Process Engineer (#2)
Candidate must have a university degree in Chemical engineering, with minimum of ten (10) years experience of process engineering in dehydration reaction, CATOFIN process & OLEFLEX  process . Must be able to prepare basic engineering package (EEP), P&I, Pump sizing, C.V. min/max, DP calculations, and HAZOP study a long with all process input to be used for details engineering. Must be able to conduct PSR(s) and (MOC) for on going plants products. Also, he should have an commissioning experience

Position 12.       Aromatic Process Engineer(#2)
Candidate  should be a B.S. degree in Chemical Engineering with minimum 10 years of experience UOP PAREX, TATORAY,ISOMAR, Extraction  Unit/ plant .Must be able to prepare basic engineering package (EEP), P&I, Pump sizing, C.V. min/max, DP calculations, and HAZOP study a long with all process input to be used for details engineering. Must be able to conduct PSR(s) and (MOC) for on going plants products. Also, he should have an commissioning experience.

Position 13.         .PP Process Engineer(#3)
Candidate  should be a B.S. degree in Chemical Engineering with minimum 8 years of experience on polypropylene (producing homo/random/co polymer) . Must be able to prepare basic engineering package (EEP), P&I, Pump sizing, C.V. min/max, DP calculations, and HAZOP study a long with all process input to be used for details engineering. Must be able to conduct PSR(s) and (MOC) for on going plants products. Also, he should have an commissioning experience.

Position 14          ACETIC ACID Process Engineer(#1)
Candidate  should be a B.S. degree in Chemical Engineering with minimum 8 years of experience on ethylene oxide . Must be able to prepare basic engineering package (EEP), P&I, Pump sizing, C.V. min/max, DP calculations, and HAZOP study a long with all process input to be used for details engineering. Must be able to conduct PSR(s) and (MOC) for ongoing plants products. Also, he should have an commissioning experience.

Position 15           PET  Process Engineer(#1)
Candidate  should be a B.S. degree in Chemical Engineering with minimum 8 years of experience  on Polythene terephthalte (PET) who experience on investa or ZIMMAR. Must be able to prepare basic engineering package (EEP), P&I, Pump sizing, C.V. min/max, DP calculations, and HAZOP study a long with all process input to be used for details engineering. Must be able to conduct PSR(s) and (MOC) for ongoing plants products. Also, he should have an commissioning experience.

Position 16         PTA operation Specialist (#1)
Candidate  should be a B.S. degree in Chemical Engineering with minimum 8 years of experience on of CTA/PTA process.


CLOSING DATE - 21st JUNE 2008.

Oman Octal Building new PET Chemical Plant

Omani-based Octal Petrochemicals is planning a new polyethylene terephthalate (PET) resin capacity of 300,000 tonnes/year and is due to start up in the fourth quarter of 2008 in Salalah.

Environmental Concern Grows at Egyptian Fertilizer Plant

Canada-based fertilizer producer, Agrium who owns a $1.2bn Agrium joint-venture nitrogen fertilizer plant in Egypt, is working to address concerns on the environmental impact of the chemical plant towards the nearby community at port of Damietta.

The fertilizer chemical plant is scheduled for completion in 2010 with capacity of two 1,200 tonne/day ammonia plants and two urea plants of production capacities of 1,925 tonnes/day.

State Oil Co of Azerbaijan (Socar) Eyeing Romanian refinery Arpechim

State Oil Co of Azerbaijan (Socar) is eyeing to acquire Romanian refinery Arpechim. The news comes after Socar recent acquisition of Turkey's Petkim.

New PVC Plant in India to be Comissioned

India's Chemplast Sanmar Limited (CSL) is expected to commission its greenfield polyvinyl chloride (PVC) chemical plant at Cuddalore in Tamilnadu State by end of 2008 with a capacity of 200,000 tonnes/year of PVC at the Cuddalore plant.

Feedstock for the intermediate vinyl chloride monomer (VCM) will be supplied from its Egyptian associate TCI Sanmar Chemicals LLC (TCI). The parent company, Sanmar group had announced that it is also evaluating the prospects of producing ethylene dichloride (EDC) and VCM at the complex located at Port Said in Egypt.

Progress Heating Up at Al-Jubail Petrochemical Complex by Saudi Kayan

Saudi Kayan Petrochemical Co (Kayan) who is reportedly going worldwide scouting for employees has awarded all the contracts to build its mega petrochemical complex which now stands at 73% progress.

The petrochemical complex at Al-Jubail will produce 6m tonnes/year of petrochemical products including ethylene, propylene, monoethylene glycol (MEG), polypropylene and other chemicals due to be commissioned late this year.

India Developing Bioethanol Technology

India's Praj Industries has set up a bioethanol R&D (research and development) centre looking at nullifying the impact of energy feedstock on food and animal feed which has lead the R&D centre to achieve a breakthrough in technology for production of bioethanol from lignocellulosic feedstock. Praj Industries is currently in the midst of commercialising its patented technology of producing ethanol from sweet sorghum with interested oil companies.

Map Ta Phut Petrochemical Complex Commission in 2010

Map Ta Phut Olefins, a new venture by Thai producer Siam Cement Group which is now in heavy construction of its benzene, toluene and mixed xylenes (BTX) facility will be starting up the petrochemical complex in the second-half of 2010 which is integrated with its new naphtha cracker.

The naphtha cracker has an ethylene capacity of 900,000 tonnes/year and 400,000 tonnes/year of aromatics. This is an addition to its existing facility produces 190,000 tonnes/year of benzene and 90,000 tonnes/year of toluene.

New Demand for Methanol: Fuel Cell

Following the US Transportation Department approval to permit in-flight use of methanol-powered fuel cells for laptop computers it is expected that a slight boost will be seen in both methanol and fuel cells.

Passengers will be allowed to use methanol fuel cells in commercial airliner passenger and crew compartments, major manufacturers of portable consumer electronic devices such as in mobile phones, digital cameras, DVD players as well as laptops.

SABIC Ar-Razi New Methanol Plant On-Stream in May

Saudi Basic Industries Corp (SABIC) joint venture mega methanol plant in Saudi Arabia, Ar-Razi 5 is expected to come on stream in May as per schedule. Rumours have spread that there was insufficient gas for the plant lagging the on-stream date.

Saudi Methanol Co, a joint venture of SABIC and a Japanese consortium will have a total capacity of methanol 5.7 million tonnes/year if the new mega methanol chemical plant is on-stream at Al-Jubail.

Another $570 Million Investment by Russia Eurochem

200 will mark another Eurochem, a Russian fertilizer producer plan to invest $570 million to upgrade its existing production facilities and building new units including a new 50,000 tonnes/year melamine facility at Azot, Nevinnomyssk.

The chemical plant which costs $277m using Germany's Lurgi process technology, is due on-stream in 2011. Overall, Eurochem is expecting an increase in its Azot, Novomoskovsk urea capacity by 25% to 2,000 tonnes/day as part of Eurochem's vision to conquer the Russian market.

Brazil Cosan Acquiring ExxonMobil

Brazilian energy giant - Cosan which produces Brazil's major ethanol is planning to acquire ExxonMobil’s operations in Brazil for $826m for a direct control of more than 1,500 fuel stations in Brazil.

The take-over will inherit $163m in debt from ExxonMobil and $35m in net credits specific for the fuel stations operation. However, ExxonMobil is still in charge of its major chemical plants and upstream oil and gas operations especially at offshore Santos Basin.

Analysts are looking at the strategic move as a favorable one since it lets Brazil Cosan to take charge of the fuel stations for distribution of its vast production of Brazil's ethanol.

PVC Producers in China Incompetitive

Due to overcapacity, the global ethylene prices expected to drop in 2008. China’s PVC producers who mainly are acetylene-based route method of polyvinyl chloride (PVC) production facing heavy competition despite China’s massive coal deposits.The acetylene-based PVC, is facing overcapacity from ethylene prices downward trend making ethylene-based PVC production to become increasingly profitable.

Coal is currently the main source of fuel for China’s power plants, and the massive growth of the Chinese economy could create a bottleneck in the supply of coal for acetylene production, something PVC producers are worrying over at the moment.

New Biodiesel and Glycerine Process by Nippon Shokubai

Japanese chemical producer, Nippon Shokubai has developed a new mainstream catalytic process to produce biodiesel and glycerine that generates much lesser waste than current technology.

Nippon Shokubai's new method process technology also reduces the cost to build and maintain the plant by as much as 10%, and also improved the ratio of converting vegetable oils into fatty acid ester, a biodiesel fuel, by 3% and on top of that, the byproduct glycerine produced by this method is very high in purity (over 98wt%). At 98% wt purity, the glycerin could be used as a feedstock for other chemicals without any refining.

US to Ban Bisphenol-A

US Senator Chuck Schumer is in the midst of proposing a legislation to ban the sale of children’s products and food containers containing bisphenol A due to its linkage in the risk of cancer and developmental defects to high doses of BPA.

BPA is used in the manufacture of polycarbonate (PC) for PC bottles especially for PC baby products. America's biggest retailer, Wal-Mart is fast reacting to the news by phasing out products containing BPA. Others like Playtex Infant Care and Nalgene Outdoor Products are also in the move to phase out products containing the chemical.

Malaysia Subsidy to End by 2014

Former Malaysian prime minister Tun Dr Mahathir Mohamad has advised the nation that Malaysia may no longer afford to provide price subsidy for fuel when it becomes a net importer of oil in 2014. Tun Dr Mahathir Mohamad is also the advisor for PETRONAS, Malaysian national oil company. As of current, Malaysia's oil production is able to export 250,000 barrels per day, making it in profit when its price increases.

Paulinia Polypropylene Plant by Braskem

After years of construction and planning, Brazil petrochemicals major Braskem is starting up a 350,000 tonne/year polypropylene (PP) plant at Paulinia in Sao Paulo state in the Brazil which had costed $420million. The feedstock for the plant is supplied by Brazil oil major Petrobras from the refineries in the Sao Paulo state.

The plant is expected to increase Braskem’s overall annual PP production capacity to 1.1million tonnes/year, a producer and market leader in South America.

First Jatropha Plant By Wartsila Finland

Finland company, Wartsila has won a $11 million contract to build a 9 megawatt combined heat and power (CHP) plant in Belgium that will run on vegetable oil from the jatropha plant and to produce both electricity and heat.

This will be the first Jatropa facility in the world using carbon dioxide neutral fuels that do not compete with food crops since Jatropha oil was a liquid biofuel with great potential as it could be harvested outside the world’s rainforest areas, even near deserts.

Commissioning of the plant is expected to begin in February 2009 operated by Greenpower NV, a joint venture of Thenergo and four local agricultural companies and a private investor.

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$1 Billion Petrochemical Complex Project by Saudi OSOS

Saudi Arabia's Osos Petrochemicals is planning to develop its estimated $1bn polybutylene terephthalate (PBT) petrochemical complex. The earlier plan was to include Saudi Basic Industries Corp (Sabic) for a 35% stake but SABBIC withdrew from the project.

The chemical plant will be located at Yanbu on the Red Sea coast with capacity of 60,000 tonnes/year of PBT, 50,000 tonnes/year of butanediol, 3,500 tonnes/year of tetrahydrofuran, and 85,000 tonnes/year of maleic anhydride acid. For the cost of $1 billion for the construction, analysts are considering the cost to be a bargain.

The polybutylene terephthalate (PBT) complex is in commercial phase with EPCC (engineering, procurement and construction contractors) for award of contracts in the end of the third quarter of 2008. A few contractors including Oslo-based Aker Kvaerner with China's Sinopec, and South Korea's GS Engineering & Construction, Samsung Engineering Company and Hanwha Engineering & Construction are currently in the bidding process for the award of construction contract.

Formosa Plastics Starting It's New PP Plant

Formosa Plastics had obtained governmental approval to receive propylene feedstock at its Ningbo port terminal, with the first refrigerated propylene cargo and eventually to start feeding feedstock propylene into Farmosa Plastics's new 450,000 tonne/year polypropylene (PP) plant in Ningbo.

The start-up has had many hiccups due to governmental regulations and construction problems and the successful start-up of Formosa’s Ningbo PP plant would tighten the critical propylene supply in the market.

Condensate Becoming New Appetite Due to NE Asia Heavy Naphtha Poor Margin

Several heavy naphtha end-users in northeast Asia are turning to condensate instead of heavy naphtha as a feedstock due to poor margins from the aromatics market despite uptight and limited condensate supplies. Condensate prices are usually pegged to either naphtha or crude formula prices generally $5/tonne lower than heavy naphtha.

Most of traded condensates will go to the hands of buyers from China, South Korea, Japan and Taiwan. Condensate supply come from the Middle East, southeast Asia or Australia via ships. Companies that supply condensates are many, among them are Qatar’s Tasweeq, Indonesia’s BPMIGAS, Vietnam’s Petechim and Malaysia’s PETRONAS.

Huntsman and Hexion Merger Extended

US producer Hexion Specialty Chemicals which is under way of merging with Huntsman has extended the termination date of the Huntsman merger agreement by 90 days to 4 July 2008. This would give the US regualtors more time to evaluate the proposed merger agreement for the two companies.

Methanol for Energy only for China

Methanol usage in the energy sector is widely used in China due to a number of reasons unique to the nation such as the cheap and abundant supply of coal as feedstock for making methanol.

Refining margins in China are currently negative due to lower price of gasoline and even much lower methanol prices. The factor is also driven by transportation infrastructure where local auto manufacturers are looking to capture energy market share with 'low running costs' and the Chinese government was pushing for coal to replace part of energy derived from crude.

Sasol Producing First Ever Synthetic Jet Fuels

Sasol has made a history when the International Air Transport Association (IATA) and other authorities have approved Sasol's coal-to-liquids (CTL) synthetic jet fuel, the first evert synthetic jet fuel approved for commercial airplanes which will be produced at Sasol's Synfuels plant in Secunda, South Africa.

The plan has long been considered but only recently the authorities realised the need to develop aviation fuel from feedstocks other than crude oil in current escalating demand. Sasol's synthetic jet fuels has less emissions due to its limited sulphur making it an environmental friendly fuel.

Foreign Company Building Refinery in Malaysia

Gulf Petroleum is reportedly succeeding in getting government approval to build US$5 Bln Integrated Oil & Gas Complex In Malaysia. Qatar based Gulf Petroleum Ltd has received the final and official approvals from the Malaysian government to build the integrated oil and gas complex in Manjung, Perak.

This is confirmend by the Gulf Petroleum president Ir Abdulaziz Hamad Al-Delaimi which will proceed with the project together with other consortium members comprising major oil and gas groups, including prominent banking and insurance groups.

The proposed site as offered by the state government comprises of 400-hectare site in Manjung offered by the Perak state government.

UAE Borouge Increasing PP/PE Capacity

United Arab Emirates plastics producer, Borouge is planning to increase its polyolefins including Polyethylene and Polypropylene capacity by 2.5m tonnes per annum by the end of 2014 under a feasibility study for the expansion project, codenamed Borouge 3.

The additional feedstock will be supplied Abu Dhabi National Oil Company (Adnoc) through its planned expansions at upstream which if succeeded will boost Borouge's total production capacity to 4.5m tonnes/year to meet the growing demands of polyethylene and polypropylene markets in the Middle East and Asia.

Analysts expect that the feasibility study will be successful since Borouge is a 40:60 joint venture between Borealis and Adnoc.

Methanol Production Cost Arising in China

China methanol makers from medium-to-large coal methanol producers in China are feeling the pinch of rising costs whether in feedstock, inland transport and shipping. Coal prices, previously known as in abundance and unwanted in China, is the most common feedstock for methanol production in China.

Surging fuel oil costs making shipping more expensive especially since methanol cargoes are shipped within China via the country's rivers, even the inland road and rail transport has also become more expensive. On top of these factors, the yuan has appreciated and the government has curbed incentives for the methanol producers to export the product.

The greatest hit is of course the feedstock price of coal which has increased by 10-30% from last year forcing producers working with technology providers to have greater efficiency in coal gasification.

Hefty $1.2 Million Environmental Penalty for ConocoPhilips

An environmental penalty of $1.2m constituing civil penalty to resolve environmental violations has been summoned to ConocoPhillips' 146,000 bbl/day Texas refinery in Borger by the US Environmental Protection Agency (EPA) due to violation of effluent limits in its Clean Water Act for over 2,000 occasions between 1999 and 2006.

The discharged water effluent was found to contain selenium and whole effluent toxicity affecting aquatic organisms. ConocoPhillips has managed to run the refinery in compliance with the regulations after the court order which also requires ConocoPhillips to monitor surrounding waters for selenium levels.

MTO Projects Spur in Inner Mongolia

China’s Inner Mongolia is spurring with methanol investments through methanol-to-olefins (MTO) projects due to its cheap and abundant coal supply with estimated of nearly 10 million tonnes/year of methanol will be produced by the next 5 years.

MTO projects such as by Datang International Power has capacity of 1.7 million tonne/year methanol with around 1.5m tonnes will be converted to propylene using Lurgi’s technology as feedstock to make around 500,000 tonnes of polypropylene (PP).

The cost of polypropylene made from this route is expected to be cost competitive, given the low price of coal in Inner Mongolia using coal gasification technology from Shell with 3 tonnes of methanol are needed to produce 1 tonne of propylene through the process.

Thailand Bisphenol-A Chemical Plant By PTT

Thailand PTT’s has decided to invest in a $250 million bisphenol A (BPA) petrochemical plant which has a capacity of 150,000 tonne/year of BPA at Mab Ta Phut, Rayong.

Construction is expected to complete in the third quarter of 2010. Upon completion, the bisphenol-A plant will use 128,000 tonnes of phenol and 41,000 tonnes of acetone as feedstocks each year which will be supplied by joint venture PTT Phenol having annual capacity of phenol and acetone of 200,000 tonnes and 125,000 tonnes respectively.

Sinopec Collaborate with Mitsubishi Chem for New $300 Million Bisphenol-A, Plycarbonate Plant

Mitsubishi Chemical (MCC) under its partner Mitsubishi Engineering-Plastics (MEP) has formed a $300 million joint venture with China’s Sinopec for a bisphenol-A (BPA) and a polycarbonate (PC) chemical plants in China. The plants, with capacity would be 150,000 tonne/year of BPA and 60,000 tonnes/year PC will be built in Beijing starting end of 2008 with target completion in 2010.

Mitsubishi Chemicals (MCC) will provide the license for Bisphenol-A production technology together with the feedstock of diphenyl carbonate (DPC) for the polycarbonate production. Sinopec in returns will provide the key feedstocks for production of Bisphenol-A of phenol and acetone.

Russia's Sakhalin plans methanol, ammonia plants

New methanol and ammonia production facilities are planned to be built in Russia's Sakhalin region. Feedstock for the methanol and ammonia complex would come from natural gas deposits in northern Sakhalin.

This is shortafter announcement that Russia's Yakutiya region plans to build two facilities for $1 billion to produce 450,000 tonnes/year of methanol and 200,000 tonnes/year of ammonia by 2012.

Malaysia's Titan Polypropylene Capacity Increased to 500 kmta

Malaysia's Titan Chemicals is planning to increase its homo-polymers and co-polymers polypropylene plant up to 500,000 tonnes/year from the current 380,000 tonnes/year in the second half of 2008. This comes after Titan Malaysia completed its metathesis unit which has a propylene production capacity of 130,000 tonnes/year.

Saudi Arabia's Ar-Razi 5th Methanol Plant To Be Commission

Saudi Methanol Company (Ar-Razi), plans to commission its fifth mega-methanol plant at Al Jubail, Saudi Arabia late April of 2008 with commercial operations in June.

This fifth mega-methanol plant will be in addition to Ar-Razi current four methanol plants at Al Jubail, two with a capacity of 700,000 mt/year each, and two that are capable of producing 850,000 mt/year each.

Shell & QatarGas Supplying LNG to Dubai from 2010

Royal Dutch Shell together with QatarGas signed a deal with the emirates of United Arab Emiratges to supply liquefied natural gas (LNG) to Dubai in the peak demand summer period from 2010. Shell and QatarGas will supply around 1.5 million tonnes of LNG a year for 15 years.

Demand for power and water in the Dubai increased by 20 percent a year, driven by rapid economic and population growth due to tourism, trade and financial services.

Dubai Supply Authority (Dusup) has been given the sole rights to supply gas users. DUSUP will also be responsible in building a floating LNG regasification facility at Jebel Ali port with capacity of 3 million tonnes a year expected to be completed by the first quarter of 2010. Ironically, UAE is the world's fifth-largest gas reserves but has not developed the gas reserves quickly enough to meet its own rising gas demand as the UAE economy expands in particular Dubai.

Japan Offers Coal-to-Gas Technology for Gas Supply

Japan, one of heavy energy users, offering Indonesia with technology that would allow it to produce gas from coal, in exchange for a stable supply of liquefied natural gas to Japan. The offer comes from Japan Gas Association especially since Indonesia is the largest liquefied natural gas exporter to Japan by volume and recently has been saying that it may cut LNG exports to Japan to meet its own domestic demand.

Indonesia's state-owned energy company, Pertamina, will reduce LNG exports to Japan to 3 million-5 million tons a year from 2011 from about 12 million tons a year now.

The development of the coal-to-gas technology for commercial use in turn can save Japan from the energy crisis. Indonesia is known to have an abundance source of coal.

Lawsuits Await Oil Majors for Ethanol-Gasoline Damages

In what could be a hard slap for the environment, ExxonMobil, Chevron, BP, Shell, Valero, ConocoPhillips and several other oil majors are facing a lawsuit for the manufacture and sale of ethanol-blended gasoline due to the allegedly blended biofuels damaging marine fuel tanks and engines including polluting the marine environment.

The lawsuits is costing thousands of dollars in repairs of hard items alone. It was understood that the ethanol in gasoline fuel has corrosive properties and dissolved the fibreglass resins used in the fibreglass tanks as well as engines.

Since the banning of methyl tertiary butyl ether (MTBE) in 2004, Ethanol has been added to regular gasoline to boost octane levels, reduce engine knocking and improve vehicle performance.

So far, Chevron, BP, Shell, Valero and ConocoPhillips are the oil majors facing with the lawsuits with other names like PetroDiamond, Tower Energy and Big West currently on the list as well.

Qatar & Malaysia Replace Pertamina LNG

Taiwan's CPC Corp which managed to secure 5.25 million metric tons of liquefied natural gas supplies from Qatar and Malaysia is not seeking new contracts from expiring contracts with Indonesia's Pertamina. This comes after Indonesia's state-owned Pertamina announced discontinued renew of supply agreements with Taiwan and South Korea to supply 1.54 million metric tons of LNG that will begin expiring this year due to declining gas production at its aging fields.

CPC has signed a 25-year contract with Qatar-based RASGAS (Ras Laffan Liquefied Natural Gas Company Co) for a 3 million metric tons LNG supply, as well as the long-term contract with Malaysia LNG, a subsidiary of Malaysia's national petroleum company, Petronas Gas Bhd amounting 2.25 million metric tons of LNG, which will expire in March 2015. On top of that, Taiwan CPC has a 2 million tons supply deal with Australia's Woodside Petroleum Ltd.

Malaysia Maintains Fuel Subsidy

After the ruling coalition suffer its worst ever election setback in Malaysia, fuel prices are kept unchanged under energy subsidies review to find ways to curb waste and fuel smuggling.

Cheap energy has turned Malaysians' addiction to subsidised fuel has led to pollution and waste in which the Malaysian government wanted to keep the fuel pump price level at the same level at Ringgit 1.90 ($0.65 / litre) but at the same time reducinge the subsidy by improving the system.

The government's ultimate target is that the subsidy becomes more targeted, more focused and goes to the groups who actually deserve it aiming at lower-income Malaysians and the transport sector to help keep retail prices down. At $110 per barrel, Malaysia government is spending 18 billion ringgit ($5.70 billion) to maintain fuel subsidies. Moreover, Malaysian's cheap fuel price has increased fuel smuggling to neighbouring Thailand and Singapore.

DME Blending in China Fail

China's domestic dimethyl ether (DME) as a fuel additive in the LPG and gasoline blending for use in buses and other energy sector is yet to start even though approval for use from the country’s petroleum and chemical industry bodies has been released.

The reason for the halt of blending DME into LPG and gasoline pool is due to low standards of LPG coming from the blending and low profits for the DME producers. It was estimated that LPG producers gain only $11-14/tonne from using DME as a fuel additive which includes transportation and sales costs making DME producers hesitant due to small saving.

There is currently no standard available on how much DME should be added to LPG despite China Petroleum and Chemical Industry Association approval on the use DME as an additive in liquid petroleum gas (LPG). To be on the safe side, most major LPG producers such as Zhuhai LPG Co, Longda LPG and Shenzhen LPG are waiting for a formal regulation policy before using DME as an additive in a serious manner.

BASF Puts-off Coal to Gas Petrochemical Plan

BASF has put off plans for a massive $2.5 billion coal gasification project due to uncertainties over the costs of Europe's emission trading scheme. The petrochemical complex would produce gas from coal as widely practiced in China to make methanol and ammonia, initially planned to be built either at BASF’s base in Ludwigshafen, Germany, or elsewhere.

Coal is regarded as cheap feedstock compared to natural gas for key raw material to the petrochemical industry.

New Dow/BASF HHPO Technology Plant Delayed

Dow/BASF joint-venture for a 300,000 tonne/year capacity hydrogen peroxide-to-propylene oxide (HPPO) plant at Antwerp, Belgium is delayed until the second part of 2008 which was previously scheduled to come on-stream in May 2008. This will be the first HPPO petrochemical plant in the world incorporating the JV technology by Dow and BASF. It was claimed that the process technology is more economical and environmentally friendly.

China Welcomes Green Technology

China is set to become a world leader in environmentally friendly technologies due to its high impact on global influence of the Chinese economy.

Analysts are expecting that by 2020, China will not be just a global economic giant, but a leader on many of the world's fields, including technology.

Indian Methanol Producer GNFC Expanding Capacity

GNFC, India’s largest methanol producer or Gujarat Narmada Valley Fertlisers Co is shutting down its 700 tonne/day capacity production complex in Bharuch for a catalyst change. The methanol producer will take the opportunity to debottleneck methanol capacity by 200 tonnes/day making the total production capacity 900 tonnes/day.

Indian methanol producers mostly used for local consumption, with additional demand met by Middle Eastern producers such as Saudi Basic Industries Corp (SABIC), Iran, Qatar Fuel Additives Co (Qafac) and Oman Methanol. As much as half of the nearly 950,000 tonne/year Indian methanol demand comes from these methanol suppliers.

Texas Building Renewable Fuels Complex by Orion

Orion Ethanol is planning to build a renewable fuel complex from corn fructose in Texas. Orion has already secured an idle wet mill in Dimmitt, Texas, which will be integrated into the company's 2million gal/year renewable fuels complex.

The wet mill will be able to produce 60m gal/year ethanol 10m gal/year edible oil for the first stage of the project. Later, Orion Ethanol plans for additional 10m gal/year cellulose-to-ethanol process, a 12m gal/year biodiesel plant, a 25,000 tonne/year yeast plant and a 60-75 megawatt (MW) wind and biomethane power plant.

Japanese Plastic Maker, Ube Investing in Thailand

As much as $118millions will be spent from Ube Group, Japanese engineering plastics maker to expand its petrochemical plants capacity. Ube Group plans to add a second nylon plant in Rayong to triple its annual capacity to 75,000 tonnes/year. Construction is expected to complete in October 2009.

The company's caprolactam capacity will also be boosted to 130,000 tonnes from 110,000 tonnes in 2010. The whole revamp is expected to raise its annual ammonium sulphate output by 80,000 tonnes to 520,000 tonnes.

The Japanese maker is also currently studying a 1,6-hexanediol project with capacity of 6,000 tonne/year plant for completion in 2011.

Shell & Virent Develop New Biogasoline Fuel Technology

Shell and in collaboration with US biofuels company Virent is developing a new biogasoline fuel and blend components directly from plant sugars without the need for fermenting sugars into ethanol. Virent’s catalytic process will be used which is a proven biomass-derived feedstocks to biogasoline production. Researchers claimed that the new biogasoline molecules will have a better fuel efficiency than ethanol. Furthermore, the new biogas can eliminate the need for new engine designs.

Russia's New Aromatics Unit

Kazakhstan's Atyrau Refinery company is planning to build an aromatics production unit in Atyrau, Russia due to be on stream in 2012. The aromatics unit estimated at $800 million would have a capacity of 500,000 tonnes/year of paraxylene (PX) and 130,000 tonnes/year of benzene situated in the new $5.2bn petrochemicals hub in Atyrau.

The petchem hub has the capability to produce 800,000 tonnes/year for polyethylene (PE) and 400,000 tonnes/year for polypropylene (PP).

Sibur Polypropylene Using INEOS Technology

INEOS has been selected for a contract to provide 200,000 tonne/year Polypropylene plant in southwest Siberia process technology for Sibur's proposed plant in Tomsk, Russia. The construction is expected to start commissioning in 2012.

This will be Sibur's second polypropylene plant using INEOS process technology. Previously, Sibur used INEOS’ Innovene polypropylene process technology for a proposed 500,000 tonne/year PP plant at Tobolsk, Russia.

Brazil Uses More Ethanol than Gasoline

Brazil, the world's largest ethanol producer from sugarcane consumes more ethanol than gasoline at the start of the South American winter as predicted by analysts. Ethanol demand in Brazil is especially high and it exceeded gasoline was in February 2008.

Brazillian ethanol consumption mainly goes to sales of flexible-fuel vehicles, which can burn either ethanol or gasoline which is the normal spec for somewhat 2.75 million automobiles in 2007 alone.

Ethylene Oxide/ Ethylene Glycol Licenses Sold by Shell to CNPC

Shell has agreed to sell ethylene oxide/ethylene glycol (EO/EG) licenses for process technology to produce these two chemicals to China National Petroleum Corp (CNPC). CNPC is planning to build a new plant near Chengdu, Sichuan, capable to produce a 380,000 tonnes/year mono ethylene glycol (MEG) facility and a 50,000 tonnes/year ethylene oxide capacity. So far, Shell has sold six EO/EG license to China and with three of them for CNPC. The petrochemical plant will be operated by PetroChina Sichuan Petrochemical, CNPC subsidiary with commissioning targeted in 2010.

Russia's Schekinoazot Methanol Upgrade

Russia's Schekinoazot plans to spend as much as $230 million to upgrade its methanol production facilities to build a new unit to produce 450,000 tonnes/year of methanol.

The unit is planned to be built in the Tula region, south of Moscow replacing existing 370,000 tonne/year methanol facility utilizing Denmark's Haldor Topsoe technology.

Vietnam Expansion - Idemitsu, Mitsui Building Paraxylene Petrochemical Plant

A paraxylene unit will be included in the petrochemical complex jointly developed by Japanese oil refiners Idemitsu Kosan and Mitsui Chemicals with a capacity of 480,000 tonne/year paraxylene (PX) and 150,000 tonnes/year of benzene products in the $6 billion joint venture petchem complex in Vietnam.

The JV paraxylene unit will be constructed at Nghi Son, Thanh Hoa province. The complex will also include BTX (benzene, toluene and mixed xylenes) plant of total capacity higher than 500,000 tonnes/year. Aromatics outlet for the products will be sold to Mitsui Chemical’s purified terephthaliac acid (PTA) and phenol businesses as feedstock.

Ethylene Dichloride Released By OxyVinyls

OxyVinyls, a wholly-owned subsidiary of Occidental Chemical has accidentally released more than 750 lbs of ethylene dichloride (EDC). OxyVinyls’ LaPorte plant in Texas with capacity of 1.77m tonnes/year EDC was also found previously releasing 500 lbs of carbon monoxide, 340 lbs of gaseous ethylene and 39 lbs of vinyl chloride monomer (VCM) to atmosphere.

Ethylene, EDC and VCM are feedstocks for production of polyvinyl chloride (PVC). The investigation revealed that two vent gas incinerators were tripped offline causing the release of toxic gas to air.

MMA Plant Via Ethylene Route by Lucite

The first ethylene route methyl methacrylate production facility by Lucite is on its way in Singapore. The petrochemical plant has the capacity of 120,000 tonne/year of MMA and will be the first petrochemical plant using Lucite's proprietary ICI technology. The feedstocks for the MMA plant will be mainly ethylene, carbon monoxide and methanol.

Construction is expected to complete September with MMA production will gradually ramp up from 15,000-20,000 tonnes in the fourth quarter. Lucite's latest MMA technology is expected to reduce production cost of MMA as opposed to other MMA producers using methyl tertiary butyl ether (MTBE) or acetone with methanol as feedstock as widely practiced by MMA producers worldwide such as Sumitomo Chemical, Mitsubishi Rayon Co., Formosa Plastics and LG MMA.

Russia Polyurethane Project By Dow, Dipol & JSC Nord JV

Dow Chemicals (Europe) together with Dow Izolan, Dow's Russian joint venture, Dipol Chemical and JSC Nord are set to explore the possibility of producing rigid polyurethane (PU) in Russia with production will be sold to JSC Nord’s Polyurethane Unit for 6000 tonnes in 2008.

The group of companies are looking at the economic feasibility of the Joint-venture PU project expected to be completed by end of 2008. The main driving force to build the PU unit in Russia, despite political instability is that Asian competition is skyrocketing, coupled with the weak US dollar.

The JV hopes that products will be focused to Russian's home appliance companis for cost saving with the polyurethane producers.

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Yam Tethys and Israel Chemicals Ironed $300 million Natural Gas Deal

Yam Tethys and Israel Chemicals Ltd (ICL) committed in a deal worth $300 million in order to make production cost savings for ICL fertilizer and specialty chemicals business. Under the deal, Yam Tethys is to provide Israel Chemicals natural gas a total of 2 billion cubic meters until 2015.

The deal also includes cost saving through energy optimisation and value-add the natural gas by converting natural gas to reduce emissions.

Sibur and Evonik on Discussion for Propylene Oxide Plant

Propylene oxide facility (PO) using Evonik and Uhde, a german engineering firm is on discussion for Evonik Industries and Russia-based JSC Sibur Holding to undertake a feasibility study on the construction of the chemical plant.

JSC Sibur partnership in the JV most likely is for penetration into the Russian market which may also looking at creating a joint venture to produce hydrogen peroxide to supply the PO plant as well as for applications in the paper and pulp bleaching industry.

Titan's Metathesis Unit Producing Propylene

Titan's metathesis unit at Pasir Gudang Malaysia which has a capacity of 115 thousands tonnes per annum of propylene starts delivering on-spec propylene which will enter the market soon.

The propylene produced largely will be for internal consumption of captive downstream polypropylene (PP) plants with limited cargoes going away in the region.

Petrovietnam and Vinatex JV for Polyester

A 50:50 Joint Venture between Petrovietnam and Vinatex (PVTEX JSC) for a $200m polyester fibre plant in Haiphong, Vietnam has been set-up with a capacity of 165 thousand tonnes per day. The feedstock for the plant, monoethylene glycol (MEG) and purified terephthalic acid (PTA) will be on import basis.

Under the agreement, Vinatex who is also the parent company for the JV will buy PVTEX JSC’s polyester for its textile and garment production facility. A pre-feasibility study for the project has been laid out to Vietnam's Ministry of Planning and Investment (MPI).

Thailand's ACN and MMA Chemical Plants High Cost by Asahi Kasei

Asahi Kasei Chemical's Joint Venture to build ACN (Acrylonitrile) and MMA (Methyl Methacrylate) unit in Mab Ta Phut in Rayong, Thailand costs have increased to $760m. The project is expected to start commercial production by 2010, after several construction cost hikes. The JV includes PTT Asahi Chemical Company (PTTAC), of 48.5% share and another 3% by Marubeni Corp.

Explosion at Nanjing Chemical Industrial Killed One

Sinopec subsidiary Nanjing Chemical Industrial suffered an explosion killing one worker and injured six others at the company’s 300,000 tonne/year capacity ammonia synthesis plant in Nanjing.

LNG Becoming Global Commodity - A Market Perspective

With more and more country finding scarcity for energy resources, LNG, which once was considered regional commodity is now set to become a globally traded commodity as expected by analysts. Liquefied natural gas (LNG) upcoming LNG projects are skyrocketing, especially as oil production and gas recovery is increasing in the Middle East.

Liquefaction capacity is expected to rise 30% with shipping capacity will increase by 50% by end of 2010. The main contributing factor that leads to the move of becoming globally trading commodity comes from trading structure for the upcoming supply of LNG - a more flexible rather than relying on long-term contracts.

Moreover, new supply destined for North America, the largest natural gas market in the world will play a massive role in pricing and LNG contracts. North America's has a vast storage capacity of 4,000 bcf expected to act as a buffer against market prices movement.

NPC Fanavaran Methanol Plant Restarting

The short-term methanol shortage due to National Petrochemical Co’s (NPC) 1million tonne/year capacity methanol plant at Fanavaran, Bandar Imam, Iran has been remedied when the methanol plant restarted.

The plant was having problems with its gas supply a likely scenario in Iran having gas supply shortages during the severe winter weather.

PET Bottles Manufactured Domestically

Following plastic bottle resin industry small margin, more and more end users are manufacturing their own polyethylene terephthalate (PET) bottles in-house to reduce costs. The trend is increasing.

The situation mostly driven by small margin for PET bottles manufacturer and economies of scale wouldnt help either. There is increasing trend of large PET bottles manufacturer closing their plants.

Siam Cement & Dow Chemicals Cracker Project at Mab Ta Phut On Schedule

Siam Cement and Dow Chemical new joint-venture for 900,000 tonne/year capacity cracker project in Mab Ta Phut, Thailand is on track to start up in the second half of 2010 despite concerns that the project schedule affected by a recent dispute between Mab Ta Phut residents and government officials over environmental concerns which could turn the site into a “pollution-control” zone.

Siam Cement/Dow Chemicals had already started construction with erection on piling work for the new complex including a new naphtha cracker is on progress. The cracker survives on imported naphtha, as much as 85% for the feedstock.

The economics for the project was uplifted by a value-added downstream integration including propylene oxide (PO) and specialty elastomers through Dow Chemicals. Planned specialty elastomers plant will produce AFFINITY Polyolefin Plastomers and ENGAGE Polyolefin Elastomers for packaging and automotive thermoplastic applications. It was also estimated that as much as 50% savings from construction cost can be achieved as compared to Middle East.

US Refineries Growth Stagnant

With heavy competitions from the rest of the world, especially from the Middle East, US refineries are facing difficulties for refinery expansion. The current situation in the US doesn't help much either with shortage of skilled labour and regulatory issues.

At the moment, it is very hard to get a permit from the US authorities especially outside the Gulf Coast.

PETRONAS ExxonMobil Renewing PSC

Petronas, a Malaysian state oil firm has signed an initial pact with Exxon Mobil for a renewed production-sharing contract (PSC) deal for seven offshore Malaysian oil fields that would require the two companies around $2.1 billion on fields development. The current production-sharing contract signed between Petronas and ExxonMobil in 1995 is due to expire in March 2012.