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.