Market prospects

Pump Industry Analyst

March 1996

CHEMICAL DUPONT’S

ABB WINS US$250

NEW CEO

DISCUSSES

MILLION

PROFITABLE

GAS CHEMICAL CONTRACT

POWER GENERATION

GROWTH

IN

KVAERNER

mouth of the Pearl River

ACQUIRES

in Guangdong province,

TAMPELLA

UZBEKISTAN

POWER

In his first press briefing

China is currently under construction.

Asea Brown Boveri, the

since being appointed chief

Kvaerner, the Norwegian

Swiss-Swedish

executive officer of Du-

industrial engineering and

Pont, John A Krol has said

wan power plant project will

tional engineering group,

shipbuilding group, has

has won a US$250 million

that DuPont will achieve

have three 350 000 kW gen-

contract to build a chemi-

long-term profitable

interna-

cal complex in Uzbekistan.

growth by being the lead-

The Shurtan gas chemical

ing chemical and engineer-

plant complex, which is val-

ing company wherever it

ued at US$SOO million, will

chooses to operate.

include ethylene, polyethyl-

Krol believes that success

ene and copolymer

will be driven by a combina-

plants.

The US$SSO million Qian-

bought Tampella Power

erating units and will act as a

for Nkr168 million from

peak adjuster for Shenzhen

Tampella, the Finnish in-

City’s power network.

dustrial group. Kvaerner also plans to ac-

NEPALESE

quire 35 million shares in

HYDROELECTRIC PROJECT

Tampella at a cost of

SEEKS

Nkr372 million. The deal is

FOREIGN

ity and committed

to be approved at an extraor-

INVESTMENT

employees. According to

dinary general meeting of

Krol, routes to profitable

Tampella’s

BASF, the German chemi-

growth include focusing on

20 March 1996.

cals group, is to invest in

core businesses,

tion of innovation, productivBASF INVESTS

IN

ASIA

three large production sites in Germany.

selective

penetration of new regional

gotiating a large integrated

markets, and utilising acqui-

site in Nanjing, China and is

sitions, joint ventures and al-

planning to build a plant in

liances to complement

on

Nepal is seeking foreign private investment to develop a hydroelectric

the contin-

JAPANESE

ued application of research and development,

The company is currently ne-

shareholders

NUCLEAR-FUEL FACILITY’S

COSTS

DOUBLE

project, which was rejected by the World Bank last August. The 402MW Arun III project in eastern Nepal is now

Construction costs for Ja-

open to private sector and

pan’s first private nuclear-

foreign investment. The

Mangalore, India. A third

DuPont’s capabilities and

site is to be announced.

market access. Key to

fuel reprocessing plant are

World Bank withdrew a

BASF plans to double its

achieving DuPont’s growth

expected to increase from

promised US$l75 million

market share in Asia and tri-

goals will be success in mar-

W40 billion, which was

loan for the first phase of the

ple its sales in the region

kets outside the US and

the initial estimate, to

project because it felt that

over the next 15 years.

Europe.

Y1.66 trillion.

the facility

The plant is currently being

Nepal to support.

SHELL

CHEMICALS

AND BASF PLAN DMSSO MILLION CHEMICAL

PLANT

MOBIL

EXPANDS

OPP CAPACITY Mobil Chemical Company’s Films Division is to

Shell Chemicals and BASF

expand its annual world-

are jointly planning an

wide oriented

DMSSO million chemical.

polypropylene

plant. The new plant will be built

manufacturing

in the Netherlands

or Ger-

many and will produce annually at least 250 000 tonnes of propylene oxide and 550 000 tonnes of styrene monomer. Growth in the demand for propylene oxide has prompted the investment.

capacity by

for

built by Japan Nuclear Fuel Ltd and should be finished in early 2003, three years be-

PRIVATISATION THAILAND’S

OF POWER

INDUSTRY

hind the original schedule. The increase in costs is attributable to rising material

(OPP)

was too big

prices, additional safety measures against radiation

one third by year-end 1998.

leakage and an increase in

The capacity increase from 430 million pounds to 575 million pounds will include a new onenter in Belgium, a new joint venture in Thailand and plant improvements and upgrades throughout Europe and North America.

the amount of concrete being used.

A consortium which includes Texaco Inc and another consortium which includes Unocal Corp and Westinghouse

Electric

Corp are favourites to win the first stage of the US$4

NEW CHINESE POWER

PLANT

billion privatisation

of

Thailand’s power industry. Two winning bids will be se-

A large power plant on

lected within the next few

Dachandao Island at the

months.

March 1996

Pump Industry Analyst

BRITISH GAS TO

part of the Fiat Group,

OIL AND GAS

DEMERGE

for exploration acreage in Italy.

British Gas has announced plans to demerge.

rels while gas output rose by

proval from China for a

8 per cent.

US$lS

The company’s exploration, international businesses

and pipeline will be put into

one quoted company while the company’s trading business will be in a separate

The 50 exploration and production blocks in thesouthern

billion oil refinery

in Shenzhen.

AMOCO-LED

The refinery is the single

CONSORTIUM

largest South Korean invest-

INVESTS IN UK GAS

ment in China since 1992

TERMINAL

when the two countries es-

TEXACO IN GULF OF MEXICO PIPELINE

tablished diplomatic links.

unit. The demerger is an at-

A consortium, led by

If the oil project is approved,

tempt to protect the com-

Amoco, the US oil com-

Sunkyong has indicated that

pany’s more profitable

pany, is to spend %70mil-

it will invest US$IO billion

lion on the expansion of

in petrochemical

the Cats natural gas termi-

China.

businesses from the potential &I .5 billion losses on US$40 billion of contracts to purchase gas. In addition, the company’s controversial chief executive, Cedric Brown, is to retire.

ORDERS WORTH f13 MILLION PLACED WITH UK COMPANIES Amoco, the US oil com-

nal at Seal Sands on

GAS PROJECTS Repsol SA of Spain is to

and gas exploration unit of

form a joint venture with

Austria’s OMV, has sold a

Sonatrach of Algeria to develop a gas field in eastern

10 per cent share in an offshore Vietnamese oil block to Nafta Gbely of Slovakia. Despite spending US$26 mil-

pany, and its partners in the Arkwright oil field in

lion on exploration, no hy-

Repsol will take a 30 per

drocarbons have been found.

the North Sea, have placed

cent stake in the US$SSO mil-

orders worth more than &13 million with companies

lion project. The Tin Fouye Tabenkort natural-gas field

in Scotland and northeast

will come on stream in I999

IRAQ AND UN START OIL TALKS Iraqi government and UN

a US$ I .5 billion production sharing contract to rehabili-

New York that could lead

tate the Rhourde El Baguel

to a resumption of oil ex-

oilfield, 450 miles south-east

ports by Bagdad.

of Algiers. The oilfield is Algeria’s second largest. A significant proportion of Arco’s

tional in March 1996 and is designed to service new deepwater and subsalt Central Gulf of Mexico producoperated b:y Texaco and will of Mexico and connect with shore pipeline system at

18 million cubic metres of

US oil company, has signed

The first plhase of the Poseidon pipeline will be opera-

the company’s extensive on-

DEVELOPMENT

gineering group, in con-

officials have had talks in

RECORD BRITISH

OILFIELD

and is expected to yield

In a separate deal, Arco, the

don pipeline.

be located in the central Gulf

AASGARD

ABB, the Swiss-Swedish

natural gas per day.

50150 joint venture com-

tion. The pipeline will be

Algeria.

England, as part of the %57million development.

line Company LLC, a

own and operate the Posei-

OMV Exploration, the oil

Total SA of France and

have announced the forma-

pany which will construct,

OIL BLOCK

OIL AND

Texaco Inc and Leviathan

tion of Poseidon Oil Pipe-

IN VIETNAMESE ALGERIAN

VENTURE

Gas Pipeline Partners LP

facilities in

OMV SELLS STAKE

Teeside, UK.

Apennines include proven gas reserves of 10 million barrels of oil equivalent.

en-

Houma, LA.

junction with Norwegian

MOBIL ANNOUNCES

companies Aker and the

1996 INVESTMENT

Maritime Group has won a

PROGRAMME

US$400 million order from Statoil to develop the Aas-

Mobil Oil has announced

gard oilfield in the North

projected capital and explo-

Sea.

ration expenditures

According to ABB, thecon-

US$4.6 billion for 1996, in-

of

sortium will produce the

creasing from US$4.3 bil-

world’slargestfloatingoil

lion in 1995.

production ship with a daily

OIL AND GAS

planned investment will be

oil production capacity of

The budget is flexible and can bc revised if the business envi-

PRODUCTION

made in the first four years

200 000 barrels and an oil stor-

ronment changes or opportu-

of the 25-year project.

age capacity of 150 000 cubic

nities arise. Capital and

metres of oil.

exploration expenditureon

DURING 1995 According to Royal Bank

SUNKYONG

of Scotland analysts, Britain’s combined oil and gas

AWAITS APPROVAL

production reached a record level in 1995. North Sea oil output grew 2 per cent to 927 million har-

GROUP

FOR SHENZHEN

OIL

REFINERY South Korea’s Sunkyong Group, is seeking final ap-

exploration and producing is

BRITISH GAS BUYS EXPLORATION ACREAGE

IN ITALY

British Gas has paid f20 million to Fiat Rimi,

estimated at US$2.8 billion, a US$I OOmillion increase on 1995’s figure. For marketing and refining, 1996 expenditure isestimated at US$1.4 billion.

Pump Industry Analyst

March 1996

PETROCHEMICALS AND REFINING CHEVRON

AND

TEXACO

SELL

JAPANESE REFINERY

STAKE

Caltex Petroleum Corporation, a joint venture between Chevron Corp and Texaco Inc, is to sell its stake in Nippon Petroleum

Jody Hayden, API, Manufacturing, Distribution and Mar-

the venture. Caltex and Nippon Oil established the refinery in 195 1. The sale will allow Caltex to invest in faster growing Asian markets where refining costs are cheaper and precedes the lifting of the import restrictions by Japan on refined oil scheduled for 1April 1996. RELIANCE PETROLEUM

RAISES

PAPER

SECOND

BUILDS PAPER

PLANT CHINA

PLANT A new HK$18.58 billion

keting Department Tel: +l 202 682 8193 Fax: +I 202

y30 billion board paper

proved for eastern China.

682 8222.

and newsprint plant in

Construction of the Beilun

US IS WORLD’S

Iwaki, northern Japan.

steel plant will begin

The plant, which will be

shortly.

Daio’s second paper plant, is

The plant, which is located

expected to be operational

in Ningbo City, Zhejiang

by the end of 1997 and will

province, is expected to have

have a monthly production

an annual capacity of

According to data com-

capacity of 12 000 tonnes of

1.6 million tonnes.

piled by the US Depart-

corrugated cardboard and

ment of Energy’s Energy

8500 tonnes of newsprint.

THIRD

LARGEST

PETROLEUM PRODUCER

CARLSBERG

Information Administration, the United States is the world’s third largest petroleum producer. During the first nine months of 1995, US crude oil production averaged 6.5 million barrels per day. A listing of nations producing at least one million barrels per day for the first three quarters of 1995 is given below.

BUILD HEINZ

EXPANDS

ORGANIC

FOOD

CHINA Carlsberg, the Danish

HJ Heinz Company is to

brewing group, is to build

acquire Earth’s Best Inc of Boulder, Colorado, a proc-

a brewery near Shanghai,

essor of organic baby food. In a separate transaction, Heinz has acquired a majority interest in Fattoria Scaldasole

northern Italy, Scaldasole operates an 8000 sq m facility

markets to part-finance its

RHGNE-POULENC

refinery

IN

JOINT

VENTURE

API’S SPRING RhBne-Poulenc Rorer Inc,

MEETING

a US pharmaceutical

sub-

The American Petroleum

sidiary of Rhbne-Poulenc

Institute’s 61st Spring Refining Meeting is to be held

SA, the French chemicals company, is to establish a pharmaceuticals joint

on 13-15 May 1996 at the. Sheraton Chicago Hotel and Towers, Chicago. The meeting will feature sessions on the environment, on accident avoidance and more than 100 technical meetings on updating refinery equipment standards. Registration and additional programme information is available from Source: EIA

nual capacity of 500 000 hectolitres of beer. According to Carlsberg, the Chinese beer market is growing 15-20 per

est market for beer by the year 2000.

PHARMACEUTICALS

jarat, India.

pected to come on stream in early 1998, will have an an-

pected to be the world’s larg-

CHINESE

project at Jamnagar in Gu-

China. The brewery, which is ex-

cent annually. China is ex-

which employs 90 people.

lion from the international

IN

BUSINESSES

organic foods. Located in

of India’s Reliance Industries, is to raise US$260 mil-

TO

NEW

BREWERY

SpA, an Italian processor of

Reliance Petroleum, part

REFINING

NEW STEEL FOR EASTERN

steel plant has been ap

FINANCES

15 million-tonne

DA10

Daio Paper is to build a

Refining Co to Nippon Oil, its equal equity partner in

GENERAL

CIBA VIETNAM BUILDS

TWO

FACTORIES The ground-breaking

cere-

mony for two new Ciba Vietnam factories has taken place.

venture with the Chinese government. RhBne-Poulenc will hold a

The factories will package

90 per cent stake in the US$30 million venture which will be based outside Beijing. The plant will produce antibiotic and antiinflammatory medications.

pharmaceutical

products for

the Vietnamese

market. Both

crop protection products and manufacture and package

factories will comply with stringent international

stand-

ards on labour safety and environmental

protection.