- Email: [email protected]
Market prospects
Pump Industry Analyst
MOBIL BACKS I N D O N E S I A AND S O U T H E A S T ASIA In a speech to the Indonesian Petroleum Association, Lucio A Noto, Mobil Corporation's chairman and chief executive officer, has reiterated his company's commitment to energy development in Indonesia and Southeast Asia. Mobil, which has substantial production operations in Indonesia, in addition to a number of development programmes, is optimistic about its future in the region.
[-., r,.)
©
CHEVRON SELLS SUMATRA GULF OIL LIMITED
[.-
Chevron has sold Sumatra Gulf Oil Limited, its wholly owned subsidiary,
<
to Premier Oil plc. By selling Sumatra Gulf, Chevron is divesting its twothirds interest in the Natuna Sea Block 'A' productionsharing contract (PSC) offshore Indonesia. The move reflects Chevron's tong-term strategy for exploration and production operations in nine other contract areas onshore and of~hore Indonesia. TEXACO AWARDS PETRONIUS PROJECT Texaco Exploration & Production Inc has awarded the contract to build the compliant tower for the Petronius project to J Ray McDermott (see Pump Industry Analyst, September 1996). The US$140 million order is to design, fabricate and in-
,-)
October 1996
stall a compliant tower tbr installation in Viosca Knoll Block 786, 130 miles southeast of New Orleans. Texaco is the operator for the project. Texaco and Marathon Oil Company each hold a 50 per cent working interest in the field. J Ray McDermott is a worldwide marine construction company. McDermott International Inc holds a majority interest in J Ray McDermott. A M O C O , BP AND PHILLIPS STRIVE FOR CLOSER NORTH SEA C O O P E R A T I O N According to studies undertaken by Amoco Norway Oil Company, BP Norge and Phillips Petroleum Company Norway, significant improvements can be achieved in their operations in the North Sea. As a result, the three companies have agreed to jointly pursue further studies with a view to reaching an agreement of closer cooperation. The research has been driven by the need to become more cost effective and by the joint government and industry Norsok programme to improve the competitiveness of the Norwegian Continental Shelf. O I L AND GAS B R I E F S •
Total US petroleumimports (crude and products) in August were 9742 000 barrels per day (b/d). This compares with
9061 000 b/d for August 1995. • Central Abstracting & Information Services, a division of the American Petroleum Institute (API), has changed its name to API EnCompass rM. The New York-
based organization provides on-line databases and print publications covering technical literature, patent information and business and economic news. Fol further information, contact Susan L Hahn, Tel: +1 202 682 8118. Valero Natural Gas Company, a subsidiary of Valero Energy Corp, is to expand capacity at its East Texas natural gas pipeline. US$11.7 million will be invested in the expansion project.
parties to adopt policies which focus on competitiveness, instil confidence in the UK economy, liberalise trade and let Britain play an influential role in Europe.
Policies for a successfid British chemical industl 3' is a manifesto published by the CIA, in advance of the 1997 British General Election. The document states 'Wealth creation by the UK chemical industry requires government policies which maintain and enhance our ability to compete in Europe and the world'. In order to encourage continuing investment in the UK, the industry seeks responsible UK/EU regulation based on the application of risk assessment, compliance cost assessments and cost-benefit analysis.
AMOCO PLANSNEW TEXAN
BAYER TO INVEST
METAXYLENE UNIT
IN L A T I N A M E R I C A
Amoco is to build a new metaxylene (MX) unit at its Texas City plant. The unit, with a capacity of 100 000 tons per annum, is expected to begin production in late 1998. Capital expenditure for the project was not disclosed. Metaxylene is the feedstock used to produce purified isophthalic acid (PIA). Amoco has recently announced plans to expand PIA production capacity at its Joliet, Illinois plant (see
Pump Industry Analyst, September 1996). CHEMICAL INDUSTRIES ASSOCIATION LAUNCHES MANIFESTO The Chemical Industries Association (CIA) has urged Britain's political
Bayer, the German chemicals and pharmaceuticals company, plans to invest a further DM190 million in Mexico and nearly DM1 billion in Central and South America by the year 2000. Mexico currently has sales of US$324 million in Mexico and employs 2500 people. AMOCO CHEMICAL EUROPE EXPANDS POLYPROPYLENE CAPACITY Amoco Chemical Europe has opened a new 200 000 metric-ton polypropylene unit in Geel, Belgium. The new unit has full capabilities to produce homopolymer, random copolymer and impact copolymer. This brings Amoco Europe' s total polypropylene annual capacity to 410 000 metric tons.
October 1996
Pump Industry Analyst
in Frankfurt am Main, Germany. ACHEMA is the leading international exhibition tot chemical technology, environmental protection and biotechnology. An estimated 3500 exhibitors are expected to participate in the show. Pumps, Compressors, Valves and Fittings will again be one of the largest exhibitor groupings. For further information, access ACHEMA's lnternet website at http:ffwww.dechema.de
its herbicide business to BASF, the German chemicals giant. Sandoz hopes that the disposal will clear the way for its merger with Ciba. The US Federal Trade Commission had objected to the maize herbicide business. BASF said the purchase was part of the Group's strategy to become more independent of economic cycles. The acquisition will increase BASF's annual turnover by an estimated US$320 million per annum.
BASF TO INCREASE
BP C H E M I C A L S IN
KNOLL EXPANDS
STYRENE
US$2.5 B I L L I O N
G E N E R I C S BUSINESS
COPOLYMER
JOINT VENTURE
ARCO TO BUILD BUTANEDIOL PLANT IN R O T T E R D A M ARCO Chemical Company has started engineering on a butanediol plant in Rotterdam, the Netherlands. The plant is adjacent to ARCO's propylene oxide/styrene monomer plant that is also under construction. The Rotterdam butanediol plant is expected to come on stream in early 2001.
C A P A C I T Y IN S O U T H KOREA HyosunglBASF Co Ltd, a joint venture between BASF AG and Tongyang Nylon Co Ltd, is to increase its capacity for acrylonitrile-butadiene-styrene copolymers (ABS) plastics at its Ulsan site in South Korea. Annual capacity will increase from 40 000 metric tons to t 90 000 metric tons. The increased capacity plant will come on stream in October 1997, making it the world's biggest single plant for the production of ABS. FORMALDEHYDE AND R E S I N P L A N T FOR NEW YORK Spurlock Adhesives Inc, a subsidiary of Spurlock Industries Inc, is to build a new formaldehyde and resin facility in Albany, New York, USA. A site has been purchased lk~rthe plant which is expected to be operational by late 1997. A C H E M A '97 The 25th ACHEMA will take place 9-14 June 1997
Shanghai Petrochemical Company (SPC) and BP Chemicals have signed a letter of intent for a US$2.5 billion joint venture chemical plant in Zhejiang Province, China. The investment will be the largest made by BP in China to date. 650 ktpa ethylene cracker and certain derivatives will be manufactured at the plant. D O W PLANS N E W
Knoll AG, part of the BASF Group, and its French affiliate Laboratoires Knoll France, have acquired the French generics manufacturer GNRpharma. Headquartered in Paris, GNR-pharma is one of the biggest generics companies in France.
SANDOZ SELLS
M O B I L E X P A N D S IN VENEZUELA Mobil Chemical and Pequiven, a subsidiary of Petroleos de Venezuela, are to jointly operate a US$1.5 billion petrochemicals plant at Jos~, Venezuela. Construction of the plant is expected to begin in 1998 and the facility will come on stream in 2000. Tile new plant will serve the growing Latin America market.
US$1 B I L L I O N
CAI.S AND
O I L & GAS MALAYSIA The 7th Oil & (;as Malaysia Exhibition will take place in Kuala Lumpur 14-17 July 1997. For further information, contact Mr Desmond Liew, Project Manager, Malaysian Exhibition Services Sdn Bhd, 468-IB, Batu 3, Jalan lpoh, 51200 Kuala Lumpar, Malaysia. Tel: +603 441 0311; Fax: +603 443 7241.
SCOTLAND Hyundai Electronics is to build a £1 billion semiconductor plant at Dunfermline in Fife, Scotland, despite falling semiconductor prices, overcapacity and reduced demand. The plant will begin operation in 1999 and will produce 64-megabit and
HERBICIDE
C H E V R O N IN S A U D I
O C W A S E T T O BE
ARABIAN VENTURE
PRIVATISED
Chevron Chemical Company has formed a joint
[-
PLANT FOR
D I V I S I O N T O BASF
Sandoz, the Swiss drugs company, has sold part of
O
< SEMICONDUCTOR
REFINING
L)
ELECTRONICS
P E T R O C HEM I-
PLANT AT STADE The Dow Chemical Company is to build a second polycarbonate plant at its site in Stade, Germany. When the plant comes on stream in 1999, the Stade facility will have an annual capacity in excess of 105 000 metric tonnes.
venture with Saudi Industrial Venture Capital Group to Imild and operate a US$650 million petrochemical complex in AI-Jubail, Saudi Arabia. The 480 000 ton-per year benzene plant and a 220 000 ton per year cyclohexane unit is scheduled to be completed in mid- 1999.
Ontario has announced plans to privatise the On-
3
Pump Industry Analyst
tario Clean Water Agency (OCWA). The Agency claims to be North America's biggest operator of water and sewage treatment systems. A number of foreign water companies are believed to be
October 1996
not to go ahead with a bid to operate a water supply project in Oman. It is understood that the company will focus more on investment in the south west region of the
Institute of Canada. One of the largest research projects of its kind in the world, the programme aims to develop closed cycle technologies which can be commercial-
UK.
ized at mills in Canada and in export markets. The concept of system closure re-
interested in bidding for the Agency. OCWA, which was established in 1993, man-
duces pollution at the source by developing efficient ways
ages water and sewage serv-
to re-use more water and ele-
ices/or approximately
FINNISH PAPER
3 million Ontario residents. The Agency has annual contract revenues of approximately C$t 25 million.
COMPANIES
LOAN APPROVAL
[--, c,.)
FOR WATER SUPPLY IN T H E P H I L I P P I N E S A US$50 million loan has
©
been approved by the Asian Development Bank to improve water supply in
[-
the Philippines. The Small Towns Water Supply Sector Project, which will be completed by the year 2001, consists of the construction of simple, low-
<
PROFITS TUMBLE Two of Finland's leading pulp and paper groups have reported reduced profits for the first eight months of fiscal 1996. Hit by falling prices and weak demand, UPM-Kymmene saw pre-tax profits fall to FM2.6 billion from FM4.6 billion a year ago. Mets~i-Serla reported pre-tax profits down from FMI.3 billion to FM336 million. The results were in line with market expectations.
cost piped water supply sys-
CANADIAN PULP
tems and training and education programmes. The
AND PAPER
project is in line with the Philippine government' s target of expanding the water supply coverage to 90 per cent of the urban population by the year 2000. SOUTHERN WATER'S
RETRENCHMENT STRATEGY
Southern Water, the UK utility company acquired by Scottish Power earlier this year, is to cut back its international activities. Southern Water is currently negotiating to withdraw from a joint venture in the Philippines and has decided
m
SEE
ments in the waste stream. Future closed systems will reduce water, energy and chemical usage and effluent and emission volumes.
N I P P O N P A P E R SEES PROFITS SLIDE Japanese paper company Nippon Paper Industries has recorded reduced interim profits. In the six months to September, recurring profits tell 9.6 per cent, while turnover increased 2.7 per cent. Reduced exports and increased competition from south-east Asia have affected the company' s performance.
INDUSTRY
JAMAICAN
POWER
S A L E IS C A L L E D O F F
The Jamaican government has cancelled the sale of its power company because of a lack of suitable bids. The company, which was put up for sale in 1993, generates 86 per cent of the country's power. The future plans for the power generation company have not been announced.
WORLD BANK SUSPENDS LOANS TO INDIAN POWER GROUP
In an attempt to speed up reform in India's power sector, the World Bank has suspended loan payments to the Maharashtra State Electricity Board (MSEB). The World Bank is concerned about the financial health of MSEB and its failure to meet loan covenants. In addition, there are concerns about the amount of unpaid and unrecoverable electricity tariff payments, which are estimated at approximately US$205 million.
LAUNCHES C$88 MILLION RESEARCH PROGRAMME
CHILEAN POWER The Canadian pulp and paper industry has launched a C$88 miUion five-year research programme to develop next-generation pulp and paper mill technologies. The new technologies will shift the environmental focus from pollution treatment to pollution prevention. The programme is a joint undertaking by induslry, government and industry suppliers and will be carried out by the Pulp and Paper Research
SALE FAILS TO
GENERATE
ASEAN DELAYS BURMESE MEMBERSHIP
INTEREST Shortlisted potential buyers have failed to bid for the Chilean state-owned electricity utility Colb6n.
The Association of Southeast Nations (Asean) has decided to delay indefinitely Burma's entry into the organization.
Only one offer was received, but this was considered too low. Corfo, the state holding company, wanted to raise aproximately US$400 million li'om the sale of a 37.5 per cent stake in and operational control of Colbdn.
Defending their decision, a number of countries have cited the political difficulties and associated complications as reasons for the delay. Cambodia and Laos are scheduled to join the organization next year.
MOBIL BACKS I N D O N E S I A AND S O U T H E A S T ASIA In a speech to the Indonesian Petroleum Association, Lucio A Noto, Mobil Corporation's chairman and chief executive officer, has reiterated his company's commitment to energy development in Indonesia and Southeast Asia. Mobil, which has substantial production operations in Indonesia, in addition to a number of development programmes, is optimistic about its future in the region.
[-., r,.)
©
CHEVRON SELLS SUMATRA GULF OIL LIMITED
[.-
Chevron has sold Sumatra Gulf Oil Limited, its wholly owned subsidiary,
<
to Premier Oil plc. By selling Sumatra Gulf, Chevron is divesting its twothirds interest in the Natuna Sea Block 'A' productionsharing contract (PSC) offshore Indonesia. The move reflects Chevron's tong-term strategy for exploration and production operations in nine other contract areas onshore and of~hore Indonesia. TEXACO AWARDS PETRONIUS PROJECT Texaco Exploration & Production Inc has awarded the contract to build the compliant tower for the Petronius project to J Ray McDermott (see Pump Industry Analyst, September 1996). The US$140 million order is to design, fabricate and in-
,-)
October 1996
stall a compliant tower tbr installation in Viosca Knoll Block 786, 130 miles southeast of New Orleans. Texaco is the operator for the project. Texaco and Marathon Oil Company each hold a 50 per cent working interest in the field. J Ray McDermott is a worldwide marine construction company. McDermott International Inc holds a majority interest in J Ray McDermott. A M O C O , BP AND PHILLIPS STRIVE FOR CLOSER NORTH SEA C O O P E R A T I O N According to studies undertaken by Amoco Norway Oil Company, BP Norge and Phillips Petroleum Company Norway, significant improvements can be achieved in their operations in the North Sea. As a result, the three companies have agreed to jointly pursue further studies with a view to reaching an agreement of closer cooperation. The research has been driven by the need to become more cost effective and by the joint government and industry Norsok programme to improve the competitiveness of the Norwegian Continental Shelf. O I L AND GAS B R I E F S •
Total US petroleumimports (crude and products) in August were 9742 000 barrels per day (b/d). This compares with
9061 000 b/d for August 1995. • Central Abstracting & Information Services, a division of the American Petroleum Institute (API), has changed its name to API EnCompass rM. The New York-
based organization provides on-line databases and print publications covering technical literature, patent information and business and economic news. Fol further information, contact Susan L Hahn, Tel: +1 202 682 8118. Valero Natural Gas Company, a subsidiary of Valero Energy Corp, is to expand capacity at its East Texas natural gas pipeline. US$11.7 million will be invested in the expansion project.
parties to adopt policies which focus on competitiveness, instil confidence in the UK economy, liberalise trade and let Britain play an influential role in Europe.
Policies for a successfid British chemical industl 3' is a manifesto published by the CIA, in advance of the 1997 British General Election. The document states 'Wealth creation by the UK chemical industry requires government policies which maintain and enhance our ability to compete in Europe and the world'. In order to encourage continuing investment in the UK, the industry seeks responsible UK/EU regulation based on the application of risk assessment, compliance cost assessments and cost-benefit analysis.
AMOCO PLANSNEW TEXAN
BAYER TO INVEST
METAXYLENE UNIT
IN L A T I N A M E R I C A
Amoco is to build a new metaxylene (MX) unit at its Texas City plant. The unit, with a capacity of 100 000 tons per annum, is expected to begin production in late 1998. Capital expenditure for the project was not disclosed. Metaxylene is the feedstock used to produce purified isophthalic acid (PIA). Amoco has recently announced plans to expand PIA production capacity at its Joliet, Illinois plant (see
Pump Industry Analyst, September 1996). CHEMICAL INDUSTRIES ASSOCIATION LAUNCHES MANIFESTO The Chemical Industries Association (CIA) has urged Britain's political
Bayer, the German chemicals and pharmaceuticals company, plans to invest a further DM190 million in Mexico and nearly DM1 billion in Central and South America by the year 2000. Mexico currently has sales of US$324 million in Mexico and employs 2500 people. AMOCO CHEMICAL EUROPE EXPANDS POLYPROPYLENE CAPACITY Amoco Chemical Europe has opened a new 200 000 metric-ton polypropylene unit in Geel, Belgium. The new unit has full capabilities to produce homopolymer, random copolymer and impact copolymer. This brings Amoco Europe' s total polypropylene annual capacity to 410 000 metric tons.
October 1996
Pump Industry Analyst
in Frankfurt am Main, Germany. ACHEMA is the leading international exhibition tot chemical technology, environmental protection and biotechnology. An estimated 3500 exhibitors are expected to participate in the show. Pumps, Compressors, Valves and Fittings will again be one of the largest exhibitor groupings. For further information, access ACHEMA's lnternet website at http:ffwww.dechema.de
its herbicide business to BASF, the German chemicals giant. Sandoz hopes that the disposal will clear the way for its merger with Ciba. The US Federal Trade Commission had objected to the maize herbicide business. BASF said the purchase was part of the Group's strategy to become more independent of economic cycles. The acquisition will increase BASF's annual turnover by an estimated US$320 million per annum.
BASF TO INCREASE
BP C H E M I C A L S IN
KNOLL EXPANDS
STYRENE
US$2.5 B I L L I O N
G E N E R I C S BUSINESS
COPOLYMER
JOINT VENTURE
ARCO TO BUILD BUTANEDIOL PLANT IN R O T T E R D A M ARCO Chemical Company has started engineering on a butanediol plant in Rotterdam, the Netherlands. The plant is adjacent to ARCO's propylene oxide/styrene monomer plant that is also under construction. The Rotterdam butanediol plant is expected to come on stream in early 2001.
C A P A C I T Y IN S O U T H KOREA HyosunglBASF Co Ltd, a joint venture between BASF AG and Tongyang Nylon Co Ltd, is to increase its capacity for acrylonitrile-butadiene-styrene copolymers (ABS) plastics at its Ulsan site in South Korea. Annual capacity will increase from 40 000 metric tons to t 90 000 metric tons. The increased capacity plant will come on stream in October 1997, making it the world's biggest single plant for the production of ABS. FORMALDEHYDE AND R E S I N P L A N T FOR NEW YORK Spurlock Adhesives Inc, a subsidiary of Spurlock Industries Inc, is to build a new formaldehyde and resin facility in Albany, New York, USA. A site has been purchased lk~rthe plant which is expected to be operational by late 1997. A C H E M A '97 The 25th ACHEMA will take place 9-14 June 1997
Shanghai Petrochemical Company (SPC) and BP Chemicals have signed a letter of intent for a US$2.5 billion joint venture chemical plant in Zhejiang Province, China. The investment will be the largest made by BP in China to date. 650 ktpa ethylene cracker and certain derivatives will be manufactured at the plant. D O W PLANS N E W
Knoll AG, part of the BASF Group, and its French affiliate Laboratoires Knoll France, have acquired the French generics manufacturer GNRpharma. Headquartered in Paris, GNR-pharma is one of the biggest generics companies in France.
SANDOZ SELLS
M O B I L E X P A N D S IN VENEZUELA Mobil Chemical and Pequiven, a subsidiary of Petroleos de Venezuela, are to jointly operate a US$1.5 billion petrochemicals plant at Jos~, Venezuela. Construction of the plant is expected to begin in 1998 and the facility will come on stream in 2000. Tile new plant will serve the growing Latin America market.
US$1 B I L L I O N
CAI.S AND
O I L & GAS MALAYSIA The 7th Oil & (;as Malaysia Exhibition will take place in Kuala Lumpur 14-17 July 1997. For further information, contact Mr Desmond Liew, Project Manager, Malaysian Exhibition Services Sdn Bhd, 468-IB, Batu 3, Jalan lpoh, 51200 Kuala Lumpar, Malaysia. Tel: +603 441 0311; Fax: +603 443 7241.
SCOTLAND Hyundai Electronics is to build a £1 billion semiconductor plant at Dunfermline in Fife, Scotland, despite falling semiconductor prices, overcapacity and reduced demand. The plant will begin operation in 1999 and will produce 64-megabit and
HERBICIDE
C H E V R O N IN S A U D I
O C W A S E T T O BE
ARABIAN VENTURE
PRIVATISED
Chevron Chemical Company has formed a joint
[-
PLANT FOR
D I V I S I O N T O BASF
Sandoz, the Swiss drugs company, has sold part of
O
< SEMICONDUCTOR
REFINING
L)
ELECTRONICS
P E T R O C HEM I-
PLANT AT STADE The Dow Chemical Company is to build a second polycarbonate plant at its site in Stade, Germany. When the plant comes on stream in 1999, the Stade facility will have an annual capacity in excess of 105 000 metric tonnes.
venture with Saudi Industrial Venture Capital Group to Imild and operate a US$650 million petrochemical complex in AI-Jubail, Saudi Arabia. The 480 000 ton-per year benzene plant and a 220 000 ton per year cyclohexane unit is scheduled to be completed in mid- 1999.
Ontario has announced plans to privatise the On-
3
Pump Industry Analyst
tario Clean Water Agency (OCWA). The Agency claims to be North America's biggest operator of water and sewage treatment systems. A number of foreign water companies are believed to be
October 1996
not to go ahead with a bid to operate a water supply project in Oman. It is understood that the company will focus more on investment in the south west region of the
Institute of Canada. One of the largest research projects of its kind in the world, the programme aims to develop closed cycle technologies which can be commercial-
UK.
ized at mills in Canada and in export markets. The concept of system closure re-
interested in bidding for the Agency. OCWA, which was established in 1993, man-
duces pollution at the source by developing efficient ways
ages water and sewage serv-
to re-use more water and ele-
ices/or approximately
FINNISH PAPER
3 million Ontario residents. The Agency has annual contract revenues of approximately C$t 25 million.
COMPANIES
LOAN APPROVAL
[--, c,.)
FOR WATER SUPPLY IN T H E P H I L I P P I N E S A US$50 million loan has
©
been approved by the Asian Development Bank to improve water supply in
[-
the Philippines. The Small Towns Water Supply Sector Project, which will be completed by the year 2001, consists of the construction of simple, low-
<
PROFITS TUMBLE Two of Finland's leading pulp and paper groups have reported reduced profits for the first eight months of fiscal 1996. Hit by falling prices and weak demand, UPM-Kymmene saw pre-tax profits fall to FM2.6 billion from FM4.6 billion a year ago. Mets~i-Serla reported pre-tax profits down from FMI.3 billion to FM336 million. The results were in line with market expectations.
cost piped water supply sys-
CANADIAN PULP
tems and training and education programmes. The
AND PAPER
project is in line with the Philippine government' s target of expanding the water supply coverage to 90 per cent of the urban population by the year 2000. SOUTHERN WATER'S
RETRENCHMENT STRATEGY
Southern Water, the UK utility company acquired by Scottish Power earlier this year, is to cut back its international activities. Southern Water is currently negotiating to withdraw from a joint venture in the Philippines and has decided
m
SEE
ments in the waste stream. Future closed systems will reduce water, energy and chemical usage and effluent and emission volumes.
N I P P O N P A P E R SEES PROFITS SLIDE Japanese paper company Nippon Paper Industries has recorded reduced interim profits. In the six months to September, recurring profits tell 9.6 per cent, while turnover increased 2.7 per cent. Reduced exports and increased competition from south-east Asia have affected the company' s performance.
INDUSTRY
JAMAICAN
POWER
S A L E IS C A L L E D O F F
The Jamaican government has cancelled the sale of its power company because of a lack of suitable bids. The company, which was put up for sale in 1993, generates 86 per cent of the country's power. The future plans for the power generation company have not been announced.
WORLD BANK SUSPENDS LOANS TO INDIAN POWER GROUP
In an attempt to speed up reform in India's power sector, the World Bank has suspended loan payments to the Maharashtra State Electricity Board (MSEB). The World Bank is concerned about the financial health of MSEB and its failure to meet loan covenants. In addition, there are concerns about the amount of unpaid and unrecoverable electricity tariff payments, which are estimated at approximately US$205 million.
LAUNCHES C$88 MILLION RESEARCH PROGRAMME
CHILEAN POWER The Canadian pulp and paper industry has launched a C$88 miUion five-year research programme to develop next-generation pulp and paper mill technologies. The new technologies will shift the environmental focus from pollution treatment to pollution prevention. The programme is a joint undertaking by induslry, government and industry suppliers and will be carried out by the Pulp and Paper Research
SALE FAILS TO
GENERATE
ASEAN DELAYS BURMESE MEMBERSHIP
INTEREST Shortlisted potential buyers have failed to bid for the Chilean state-owned electricity utility Colb6n.
The Association of Southeast Nations (Asean) has decided to delay indefinitely Burma's entry into the organization.
Only one offer was received, but this was considered too low. Corfo, the state holding company, wanted to raise aproximately US$400 million li'om the sale of a 37.5 per cent stake in and operational control of Colbdn.
Defending their decision, a number of countries have cited the political difficulties and associated complications as reasons for the delay. Cambodia and Laos are scheduled to join the organization next year.