Chexpress - January 27, 2011

North America

Nearing Purchase

DAK Americas LLC has moved closer in its $600 million purchase of the Eastman Chemical Company’s polyethylene terephthalate operation in Sandy Run, South Carolina. The waiting period required under federal antitrust law has expired without a request for additional information from the U.S. Federal Trade Commission. The site will be integrated into DAK America’s PET and PTA business units, which also have operations in Charleston, South Carolina; Wilmington, North Carolina; and Fayetteville, North Carolina.

Plan Canceled

A plan to spend $100 million on a boiler that would burn plant-based fuels at The University of Wisconsin-Madison’s Charter Street power plant was cut by the Department of Administration (DOA). The DOA is overseeing the rebuild of the plant. Work will continue on outfitting the plant with new natural gas boilers. The cost of the project with the biofuel boiler would have been $250 million, the most expensive building project in the university’s history.

Sale

Zero Emission Energy Plants has entered into an agreement with Eastman Chemical Company Investments, Inc. to purchase all membership interests of TX Energy LLC. Texas Energy is engaged in developing a gasification facility in Beaumont, Texas. The facility will convert petroleum coke into hydrogen (H2) and pipeline quality carbon dioxide. The transaction is expected to close in the second quarter of 2011.

World

Contract Awarded

Lummus Technology has been awarded a contract by OAO Salavantnefteorgsyntez (SNOS) for the engineering, procurement and supply of materials for a third SRT VI cracking heater at its ethylene plant in Salvat, Russian Federation. This contract is part of the plant’s long-term modernization and upgrading project.

Expansion

Bayer Technology Services (BTS) recently opened a regional office in Moscow, Russia. In close cooperation with ZAO Bayer, BTS is furthering its presence in the emerging market.

Master Service Agreement

GL Noble Denton has signed a Master Service Agreement with Aramco Overseas Company B.V. for vendor inspection services. GL Noble Denton will inspect the manufacturing process of all types of oil and gas equipment at the vendor’s site. The three-year contract covers services to be rendered in all European countries.

Supply Deal

Canpotex Ltd. has agreed to supply 600,000 tons of potash during the first six months of 2011 to China through an agreement with Sinofert Holdings Ltd.