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Petchem News & Global Market Outlook: May 2008 4/19/11 5:13 PM

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•
Berkshire
Hathaway
Acquired
Lubrizol
Ethane Petrochemical industry plays a major role in our daily life. Almost everything that we are •
Conference:
Middle
East
Technology
Forum
Methane dependent nowadays are made from petrochemicals be it plastics, clothes, home appliances etc. for
Gas
P...
Being a professional chemical engineer, one needs to keep up-to-date with fast changing •
Pertamina
Collaborating
with
Petronas
&
Propane petrochemical industry especially when new processes for new products, new chemicals are Total
for
...
Butane invented everyday. •
Saudi
Aramco
to
Increase
Gulf
Chemical
Production
...
FRIDAY, MAY 30, 2008
Pro. PVC Raw- •
Shell
Expanding
its
Saudi
Arabia
Sadaf
JV
Meterials
China Excellent Environmental Concern Grows at Egyptian Fertilizer Plant •
2011
Petrochemical
Conference
List
Manufacturer, Top •
Saudi
Aramco
Launching
New
Petchem
Quality, Good Price!
www.skybright-che…
Products
Throug...
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.
•
Engen
Petroleum
Ltd
Acquired
Chevron
Corp.'s
asset...
CHEMICAL The fertilizer chemical plant is scheduled for completion in 2010 with capacity of two 1,200 tonne/day ammonia plants and two
•
India
to
Build
New
450,000
tonne/year
Ethylene
Pla...
urea plants of production capacities of 1,925 tonnes/day.
LISTING •
Conference:
6th
Methanol
Markets
&
Tech
Summit
in
...
Labels: Egypt, Environment, Fertilizer, Middle East, News, Plant
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DME | Ammonia |
State Oil Co of Azerbaijan (Socar) Eyeing Romanian refinery Arpechim
Biofuels | Chemical State Oil Co of Azerbaijan (Socar) is eyeing to acquire Romanian refinery Arpechim. The news comes after Socar recent
Information | acquisition of Turkey's Petkim.
Company | Ethanol |
Fertilizer | Gas | Labels: Deals, News
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Outlook | News | POSTED AT 4:57 AM 0 COMMENTS LINKS TO THIS POST
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By Countries

Algeria | Argentina |
Brazil | Egypt | Iran |
India | Malaysia | THURSDAY, MAY 29, 2008
Peru | Saudi | |
Turkmenistan | New PVC Plant in India to be Comissioned
Venezuela | Vietnam |
Korea 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 Petrochemical Archives
LLC (TCI). The parent company, Sanmar group had announced that it is also evaluating the prospects of producing ethylene - Archives -
dichloride (EDC) and VCM at the complex located at Port Said in Egypt.
The Author
I am a chemical engineer who now work
Labels: Asia, india, News, Plant, PVC as a strategist for a petrochemical oil and
gas company by keeping abreast of latest
market outlook, technology, new
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development and news on petchem


industry. I like to share with others on my
experience for chemical engineering
society.

MONDAY, MAY 26, 2008

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.

Labels: Complex, Middle East, Plant, Saudi, Saudi Kayan

POSTED AT 7:12 AM 0 COMMENTS LINKS TO THIS POST

SATURDAY, MAY 24, 2008

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.

Labels: Asia, Biofuels, india, Technology

POSTED AT 10:17 PM 0 COMMENTS LINKS TO THIS POST

FRIDAY, MAY 23, 2008

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.

Labels: Aromatics, Asia, Complex, Ethylene, News, Plant, Thailand

POSTED AT 8:06 PM 0 COMMENTS LINKS TO THIS POST

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.

Labels: America, Country, Methanol, News

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WEDNESDAY, MAY 21, 2008

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.

Labels: Methanol, Middle East, News, Plant, Saudi

POSTED AT 6:23 AM 0 COMMENTS LINKS TO THIS POST

TUESDAY, MAY 20, 2008

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.

Labels: Fertilizer, Investment, News, Plant, Russia

POSTED AT 5:15 AM 0 COMMENTS LINKS TO THIS POST

MONDAY, MAY 19, 2008

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.

Labels: America, Brazil, Deals, Ethanol, ExxonMobil, Gas, News, Oil

POSTED AT 8:30 AM 0 COMMENTS LINKS TO THIS POST

SUNDAY, MAY 18, 2008

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

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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.

Labels: Asia, China, Market Outlook, News, Other Chemicals, PVC

POSTED AT 8:10 PM 0 COMMENTS LINKS TO THIS POST

SATURDAY, MAY 17, 2008

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.

Labels: Biofuels, Environment, Japan, Technology

POSTED AT 7:03 AM 0 COMMENTS LINKS TO THIS POST

FRIDAY, MAY 16, 2008

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.

Labels: America, News, Other Chemicals

POSTED AT 10:09 PM 0 COMMENTS LINKS TO THIS POST

Petrochemical Conference: 10th Asia Olefins & Polyolefins 2008


4 weeks to 10th Asia Olefins & Polyolefins 2008

About 10th Asia Olefins & Polyolefins 2008

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10th Asia Olefins & Polyolefins will examine strategies


for the Asian petrochemical producers to prepare for a
possible downturn in Q4 2008, evaluate alternative
feedstock and deal with escalating energy cost in PP
production.

More Information | Getting Involved

Programme Updates

Economics of Refinery - Petrochemical Integration


Mr. Ashanendu Mandal, Engineer (Production-
Marketing), ONGC

Polyolefin Aditivation - A Route Towards


Differentiated Polyolefin Resins
Mr. Tony Ong, Regional Marketing Manager, APAC,
Plastic Additive Segment, Ciba Singapore Pte Ltd

Proposed Ban / Discouragement on use of Plastic


Carry Bags - Impact on Polyolefin Producers and
Processors in Asia
Mr. Surender Choudhary Chairman, Coordination
Committee, Plastindia Foundation Convenor, All India
Flat Tape Mfrs. Assn.
C.E.O. & Director, Dura Syntex Ltd.

More Information | Getting Involved

Getting Involved

4 more weeks to take advantage of meeting with speakers


from Samsung Total Petrochemicals, Nexant,
EcoSecurities, Petrovietnam, Petrochina, Lurgi, and
many more local, regional, and international champions
in the petrochemical league.

Click here to register

Labels: Conference

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TUESDAY, MAY 13, 2008

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.

Labels: Asia, Malaysia, News, Oil

POSTED AT 4:12 AM 0 COMMENTS LINKS TO THIS POST

SUNDAY, MAY 11, 2008

Petrochemical Conference: 16th Asia Petchem Summit, 9 - 10 Oct


2008, Bangkok
Make your plans now to attend CMT's, 16th Asia Petchem Summit, taking place on 9 - 10 October 2008 in Bangkok,
Thailand.

As in the past years, our summit will feature a combination of plenary and round table discussions by widely respected industry
experts from different sectors of the global petrochemical industry.

2007 Summit Accolades

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"Very good selection of presentations from key decision makers, providing the right market intelligence for strategic decisions." - Schmidt +
Clemens

"The conference gave me a full understanding of the current and future trends in the Petrochemical industry - Asia." - KBC

"Great opportunity to network and exchange ideas with key industry players."
- Qurain Petrochemical Industries Co

"Good! See you next year…!" - PTT Public Company Ltd

2008 Challenge at the 16th Asia Petchem Summit

As the race to stay profitable intensifies, producers must constantly innovate to create value or manage their costs more
efficiently. Hence 16th Asia Petchem Summit will examine these concerns and provide insights on the challenges and
opportunities in the industry.

This year's special highlight will be on complex expansions plans in Asia, cracker investment projects in Middle East,
petrochemical price volatility and risks in swaps and hedging, carbon trading opportunities, clean fuel regulations and its impact on
the aromatics chain.

Getting Involved

Plan to meet local, regional, and international champions in the petrochemical league from the following divisions/companies:

• Presidents/Vice-Presidents
• CEOs, MDs, GMs
• Traders for Aromatics, Feedstock, Olefins, Plastic
• Coal & Natural Gas Companies
• Refineries, Additives and Catalysts
• Industry/Energy Consultants
• Business Development Managers
• Product/Sales/Marketing Directors
• Project Financiers
• Technology Licensors
• International Engineering & Contracting Firms supporting the energy industries
• Upstream or downstream Operations

Click here to register

Labels: Conference

POSTED AT 9:39 PM 0 COMMENTS LINKS TO THIS POST

11th IMPCA Asian Methanol Conference UPDATE


In just over a week, the largest and most comprehensive methanol conference covering the vast Asian region will
again take place in Kuala Lumpur.

Jim Jordan & Associates, the International Methanol Producers and Consumers Association (IMPCA), and
MMSA welcome you to join the 150+ delegates expected at this event, which features presentations by the CEO of
PETRONAS Methanol (Labuan), the Methanex SVP of Global Marketing and Logistics, the Deputy CEO of
Brunei Methanol Company, BP, Ancom Kimia, KBR, SES China, MEO Australia, Dynea, Toyo, MAN-
Ferrostaal, Lurgi, Sud Chemie, MMSA (2), JJ&A, and Chemease-CBI.

Delegates will also have several chances to meet, including an opening cocktail reception, and a quick tour of the
Petronas Twin Towers Skybridge (connecting the Towers), followed by a dinner at the Malaysian Petroleum
Club.

The conference provides unique opportunities to 1) hear state-of-the-art market analysis from experts in their fields;
2) network with the key executives who are shaping the Asian methanol industry. Anyone interested in
understanding the driving forces behind methanol in Asia should attend this event.

The preliminary agenda, list of registered delegates, and on-line registration for the conference can be found at
www.jordan-associates.com/AsiaMethanol.htm.

Labels: Conference

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SATURDAY, MAY 10, 2008

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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.

Labels: America, Brazil, News, Plant, Polypropylene

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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.

Labels: Biofuels, Environment, Europe, Germany, Oil, Technology

POSTED AT 5:35 AM 0 COMMENTS LINKS TO THIS POST

$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.

Labels: Complex, Investment, Middle East, Other Chemicals, Plant, Saudi

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FRIDAY, MAY 9, 2008

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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.

Labels: Asia, China, Plant, Propylene

POSTED AT 6:38 PM 0 COMMENTS LINKS TO THIS POST

THURSDAY, MAY 8, 2008

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.

Labels: Asia, Market Outlook, News, Oil

POSTED AT 7:44 AM 0 COMMENTS LINKS TO THIS POST

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.

Labels: America, Company, Deals, News

POSTED AT 6:46 AM 0 COMMENTS LINKS TO THIS POST

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.

Labels: Asia, China, Country, DME, Methanol, News

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WEDNESDAY, MAY 7, 2008

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.

Labels: Environment, News, Oil, SASOL, Technology

POSTED AT 6:07 AM 0 COMMENTS LINKS TO THIS POST

TUESDAY, MAY 6, 2008

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.

Labels: Asia, Malaysia, News, Oil

POSTED AT 9:46 PM 0 COMMENTS LINKS TO THIS POST

MONDAY, MAY 5, 2008

Petrochemical Conference: 10th Asia Olefins &


Polyolefin Markets Bangkok
In just 6 weeks CMT's 10th Asia Olefins & Polyolefin Markets 10 -11 June 08 will
bring together key international speaker panelist to Bangkok, Thailand.

To be held on the 10-11 June, and with the theme of `Transition into oversupply -
strategizing to sustain profitability' the conference aims to present a unique
insight into many of pertinent issues impacting the industry:

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insight into many of pertinent issues impacting the industry:

High energy costs and the US recession are causing the Asian Pacific
• Petrochemical Industry to slide into a downturn. - What is the prospective on
Asia Position in weathering the US economy slow down?
Also the huge Olefins and polyolefin capacities looming from the Mideast is a
• challenge for Asia's producers. - How can producers in Asia strategize and
position themselves competitively in today's volatile markets?
Naphtha markets Dynamics and alternative feedstock - How would it impact the

feedstock balance in Asia , Is alternative feedstock the answer to manage costs?
More majors are integrating to ensure their competitiveness. What is the
• economics of this strategy? (capacity expansion and market dynamics focus on
China, India, middle east, Vietnam)
Environmental concerns are also increasing. Legislation in countries like China,
• Australia has banned the usage of plastic bags - How will the ban against plastic
bag usage impact polyolefin producers?
As the 'Green Movement' surges ahead, how will it further shape the polyolefins

industry? -What are the challenges and opportunities ahead?

For an up-to-date speaker list and full conference programme click here.

Register with your team today and enjoy a min saving of USD900 for group fees for
3 or more from the same company.

Labels: Conference

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SATURDAY, MAY 3, 2008

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.

Labels: Middle East, News, Olefins, Polyethylene, Polypropylene, UAE

POSTED AT 9:56 PM 0 COMMENTS LINKS TO THIS POST

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.

Labels: Asia, China, Market Outlook, Methanol, News

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FRIDAY, MAY 2, 2008

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.

Labels: America, ConocoPhillips, Environment, News

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