Gas, petrochemicals prices increase in August

Brent and gas prices increased 8.2 percent and 2.6 percent respectively in August. Prices of most of the petrochemicals increased 1-8 percent month on month (MoM), except styrene (down 3.3 percent). This is mainly due to the positive economic indicators reported by the US and the euro zones combined with the increase in oil prices. This is according to a new report issued by NCB Capital Tuesday.
“The TASI petrochemical index rose 1.5 percent in August, while the TASI declined 1.1 percent. Most of the stocks were down with Nama Chemicals being the worst performer with a decline of 8.9 percent. Saudi Kayan (+3.6 percent), Saudi Basic Industries Corp. (+1.1 percent) and Saudi Fertilizer Co. (+1 percent) were the only gainers,” the report said.
According to the report, Sipchem started commercial operations at its 100,000 ton ethyl acetate and butyl acetate plant. Moreover, SATORP agreed to increase propylene supply to 80,000 tons per annum (tpa), from 50,000 tpa agreed earlier to APPC for a period of five years, effective Jan. 1, 2014.
The EIA estimates WTI crude oil to increase 3 percent year on year (YoY) to $97 per barrel in 2013 and decline 4.1 percent YoY to $93 per barrel in 2014. Brent prices are expected to
decline 5.2 percent and 5.7 percent YoY, respectively in 2014.
Maaden has signed a shareholders’ agreement with the Mosaic Co. and SABIC for building a SR26 billion fully integrated phosphate production facility. The facility is expected to produce 3 million tons of phosphate and 440,000 tons of phosphate downstream products. Maaden is expected to award an EPC contract by the end of 2013, while production is scheduled to commence in 2016. Maaden, Mosaic and SABIC will hold 60 percent, 25 percent and 15 percent stakes, respectively, in the project.
SABIC awarded a contract to Germany’s Linde Group to build a carbon dioxide (CO2) purification and liquefaction plant to compress and purify 1,500 tons/day of raw CO2 from ethylene glycol plants. The purified CO2 will be supplied to SABIC’s three affiliates to improve the production of methanol and urea. This will save approximately 500,000 tons per annum of CO2 emissions. Moreover, the plant will have a production capacity of 200 tons/day of liquid CO2.
Ar-Razi (a 50:50 JV between SABIC and Mitsubishi Gas Chemical) plans to conduct a maintenance shutdown at its No.5 methanol facility (1.7 million tpa) for 40 days during November-December 2013. This facility accounts for 30 percent of Ar-Razi’s total methanol production capacity.
SABIC increased the September Asian Contract Price (ACP) of monoethylene glycol (MEG) by 9.1 percent MoM to $1,200 tons.
In early August, Sahara and Maaden Petrochemicals Company (SAMAPCO), a 50:50 joint venture between Sahara and Maaden, started the trial production at its new facility, which has a total capacity of 250,000 tpa of caustic soda and 300,000 tpa of EDC. Trial runs are expected to continue for the next 4-6 months.
Saudi Aramco Total Refining and Petrochemicals (SATORP) agreed to increase propylene supply to 80,000 tpa (from 50,000 tpa agreed earlier) to APPC for a period of five years, starting from Jan.1, 2014.
On Sept. 1, 2013, Sipchem started commercial operations at its wholly owned ethyl acetate and butyl acetate plant (total annual capacity of 100,000 tons). The financial impact of this facility will be reflected in Sipchem’s Q3, 2013 results.
National Petrochemical Industrial Co. (NATPET) (57.4 percent owned by Alujain Corporation) will receive an insurance claim of SR75 million related to a breakdown at its polypropylene complex in Yanbu Industrial City in September 2011. This will be reflected in Alujain’s Q3, 2013 results.
PetroRabigh started unplanned shutdowns at three plants — LLDPE (350,000 tpa) and two PP units (with combined capacity of 700,000 tpa) — in mid-August 2013 due to technical issues. However, details on the duration of the shutdown and the financial impact have not been disclosed.