New Acrylic Acid Process Route

US biofuels player and ethanol producer Cargill is in the collaboration with Novozymes to develop a new breakthrough technology that would create acrylic acid through 3-hydroxypropionic acid (3HPA) using sugar. Engineered biological micro-organisms will be used to make 3HPA from fermented sugar. Bio-

Business Deals Archive for January 2008

Ecopetrol Buying Propilco

Colombia Polyethylene (PE) producer Ecopetrol is expanding its business portfolio towards Polypropylene (PP) by acquiring Columbia's PP producer Propilco for $690 deal. If successful, Ecopetrol will be the sole producer of polyetheylene and polypropylene in Columbia.

Business analysts is expecting that the acquisition will boost the company's earnings as it would have an enormous strategic value for Ecopetrol since its upstream synergies in exploration, production, refining can be channeled down to the rest of the petrochemical chain. Ecopetrol inevitably will be the largest petrochemical company in Columbia after the acquisition.

Tullow Oil Selling Pakistan Oil & Gas Investments

Following the recent assassination of Pakistan Prime Minister's Benazir Bhutto, another Oil & Gas company,

US Petchem Industry Looking Gloomy Due to Recession

Everyone is talking about it, the US subprime crisis and the recession that is coming in 2008. The recession means less demand and US petchem industry is likely to suffer and be dependent totally on export.

The US housing market seems to have a high bearing on the economy and most business and economic analysts are in tandem with a conclusion that there will be a recession at least in the US in 2008 and this includes the chief of the American Chemistry Council (ACC).

Since end users of petrochemical products include those of housing and construction where most

Market Outlook for Russia, Expansion of Petrochemicals

Lets have a look at Russia petchem industry outlook in 2008, the long and short of it.

Currently, Russia is one of the most prominent world leading oil and gas producers due to its high reserve in the country. Russia holds the biggest gas reserve in the world but more than half of its plastics and petrochemical products are imported. 2008 will look into a change in this and potentially become the biggest petrochemical producer in the world.

Russia is planning to raise the overall production of chemicals and petrochemicals by 40% by 2015 at a whopping $163 billion. The plan will comprise of 800 new petrochemical plants expansion and empl0yment

Malaysia to Spend RM35 Billion on Oil Subsidy

The Malaysian government is expected to spend over RM35 billion in subsidy for gasoline fuel in the country if oil price is to hover around US$100. Asian countries are well-known for providing oil subsidies but as oil prices becoming too expensive with energy prices booming everywhere, it is unlikely for any of the governments to provide full subsidy as high as before. Read the Asian countries oil subsidy news and forecast here.

The Malaysian government however said that the budget deficit does not impact on how the government would spend to boost the nation's GDP growth. Malaysian analysts expecting around 5% GDP growth for 2008.

Benazir Bhutto Assasination and Pakistan Petchem Industry Risk Assessment

The recent assassination of former Benazir Bhutto in Pakistan is likely to slow down foreign investment in Pakistan due to the political instability. Analysts, however is confident that the impact would be temporary with risk period to be around two quarters or 6 months period.

The death of Pakistan's beloved former prime minister, Benazir Bhutto had somehow impacted the financial

Market Outlook for Polystyrene

Petrochemical outlook for 2008 polystyrene (PS) looks rather interesting with market trend is expecting to see Middle East polystyrene to be bullish with a lot of new capacity expansion for polystyrene chemical plants to be built at the expense of the South Asia Market.

Price for Polystyrene likely to remain strong and high due to tight supply in Middle East, with a different