Layoffs

Mercury-Reduction Law

The Mercury Pollution Reduction Act is aimed at the nation’s four remaining chlorine factories that use a mercury processing system to manufacture chlorine. The legislation would require the chemical plants to undertake a $90 million conversion to eliminate its use of mercury was approved by the U.S. House Energy & Commerce Committee with an amendment offering the companies until 2015 to complete their renovations. The legislation would also affect Olin plants in August, Georgia and Charleston, Tennessee; a PPG Industries facility in Natrium, West Virginia; and the Ashta Chemicals plant in Ashtabula, Ohio.

Methane Into Liquid Fuel

Researchers at the University of Washington and the University of North Carolina at Chapel Hill have taken an important step in converting methane gas to a liquid, potentially making it more useful as a fuel and as a source for making other chemicals. Methane is difficult and costly to transport because it remains a gas at temperatures and pressures typical on the Earth’s surface. Scientists at the universities have moved closer to devising a way to convert methane to methanol or other liquids that can easily be transported, especially from the remote sites where methane is found.

Wacker Chemie AG and Dow Corning Corporation have started the construction of the second phase of their pyrogenic silica plant in Zhangjiagang, China. The plant, along with a siloxane plant, are key parts of an integrated silicone manufacturing site developed by both companies to produce materials used in construction, beauty and personal care, power and automotives.

Plant Closure

BASF Antwerpen N.V. has announced its intention to close its 115,000 tons/year maleic anhydride production facility by the end of 2009 and to withdraw all BASF activities from its site in Feluy, Belgium. There are 133 employees at the Feluy site. BASF’s maleic acid business is suffering from unsatisfactory profitability due to overcapacity and resulting low margins along with the effects of the current economic crisis.

License

Eni has been awarded the license for the development of the Zubair giant filed in Iraq. The Zubair field, one of the largest Iraqi oil fields, currently produces 195,000 barrels of oil/day. In the next seven years, production is expected to reach a plateau level of 1.125 million barrels of oil/day. The project includes the drilling of more than 200 wells, the construction of treatment facilities and the required collection network, as well as the refurbishment of the existing plants. The service contract will last 20 years and can be extended to 25.

Petrochemical Base

CNPC has launched a major petrochemical project in Yangzhong, China, a traditional stronghold of its rival Sinopec Group. The project will begin in 2010 with a total investment of CNY 20 billion. CNPC will build a refined fuel reserve, a petrochemical logistics center and a chemical raw materials producing base. A refined oil pipeline 1,000 kilometers in length will also be built as an auxiliary facility.