Malaysian Having Closer Tie with Iran on Oil Exploration

Malaysian under one of the country's state Chief Minister of Kedah had a discussion with Iran for investment in oil exploration and exploitation in Iran. Iran Ambassador to Malaysia Mehdi Khandaqabadi assuring Iran's great potentials through economic and cultural cooperation with Iran and Malaysia would transpire into benefits for both countries.

Also on discussion was to declare the two islands of Malaysian Langkawi and Iranian Kish as sister cities, promoting better ties and perhaps investment opportunities through government support.

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.

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.

$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.

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.

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.

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.

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.

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.

.

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.

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.

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.

PKN Orlen Joint-Venture with Basell

PKN Orlen's nitrogen fertilizer profits were dropping due to heavy competitions from companies based in countries east of Poland. PKN Orlen's subsidiary, Anwil sales of ammonium nitrate products declined 6.9% to 135,000 tonnes in the fourth quarter of 2007.

PKN Orlen has Joint-Venture with Basell through Basell Orlen Polyolefins, a 50:50 share, is posting higher profit of Zl120m. As of now, PKN profits mostly come from other business than its fertilizer products due to the competitions.

Algeria Investing Massive $28 Billion for Petrochemical

Algeria is planning an investment of $28bn in the country’s petrochemicals industry over the next five years with developments located on the country’s east and west coasts.

The investment include recent contracts to build ethane and methanol plants by Almet, a consortium set-up for the projects by Lurgi, Japan's Mitsui & Company, Kuwait's Al-Qurain Petrochemical Company and the local Sotraco.

Algeria is attractive to foreign investors due to low cost of feedstock there and its proximity to Europe.

Colombia Building 100 ktpa Biodiesel Plant

Colombia biofuels supplier, Ecodiesel is planning to build a massive 100,000 tonne/year capacity biodiesel plant in Barrancabermeja, Colombia with cost of investment to be in the range of $23m to start construction in February 2009.

The plant will use palm oil feedstock using Brazilian engineering technology Dedini A Industrias de Base. Upon completion, Colombia will be Latin America’s second largest biofuels producer after Brazil.

50% stake in Ecodiesel is partly owned by Colombian palm and vegetable oil manufacturers namely Extractora Central, Palmas Oleaginosas Bucarelia, Extractora Monterrey, Oleaginosas Las Brisas, Palmeras de Puerto Wilches and Palmas del Cesar y Agroince.

ABS Plant in Al-Jubail by Saudi Petrokemya

SABIC affiliate Arabian Petrochemical Co (Petrokemya) is on its way to build an acrylonitrile butadiene styrene (ABS) petrochemical plant with a capacity of 200 ktpa at Al-Jubail complex.

This come quick after SABIC Innovative Plastics, formerly the US' GE Plastics, which SABIC (Saudi Basic Industries Corp) acquired last year. The ex-GE Plastics is also providing process technology for the plant.