Indorama Ventures PCL will list and commence trading on February 5. It is the first company to list on the Thai bourse this year, with a market capitalization at its initial public offering (IPO) price of over THB44.00 billion (approx. USD1.33 billion). The company will be in the Industrials Group, Petrochemical & Chemicals Sector, using “IVL” as its trading symbol, and comes from restructuring shareholdings of the business group.
“This listing of IVL supports SET’s strategy in 2010 to encourage large companies to list. SET aims at increasing its market capitalization by THB100 billion (approx. USD3.02 billion) from new listings this year,” revealed SET Chief Marketing Officer, Issuer & Listing Vichate Tantiwanich.
IVL is the holding company of domestic and international firms involved in integrated petrochemical products. These companies have 13 production facilities in five countries worldwide and manufacture and/or distribute polyester fiber and yarn, with highest production capacity in the country, and polyethylene terephthalate (“PET”), with the world’s second largest production capacity.
IVL has a total paid-up registered capital of THB4.33 billion (approx. USD130.74 million), with a par value of THB1.00 each, consisting of 3,352 million existing common shares and 583 million capital increase shares to exchange with shares held by Indorama Polymers PCL (IRP)’s retail investors at 1 IRP share for 1.4150 IVL share. At its IPO on January 25-27, 2010, IVL offered 400 million shares and 60 million Green shoe option shares, or a total of 460 million shares, to the general public at THB10.20 per share. The funds raised will be used for debt repayment and general operations, including as working capital. Bualuang Securities PCL was its financial advisor and underwriter.
The IPO price of THB10.20 per share came from book-building process among institutional investors. IVL’s dividend payment policy is to pay out no less than 30% of profit after taxes and legal reserves.
For more information about Indorama Ventures PCL, please see the company’s prospectus at the Securities and Exchange Commission (SEC) at www.sec.or.th and for general information at www.indoramaventures.com, and www.set.or.th.
Sunday, February 7, 2010
Friday, February 5, 2010
Fitch: APAC Oil & Gas Credit Quality To Remain Broadly Stable
Fitch Ratings has said today, in its "Asia-Pacific Oil & Gas: Credit Outlook 2010" report, that the overall credit outlook for the sector is broadly stable, although the outlook for some refiners remains negative.
"Most exploration & production (E&P) and integrated companies have significant headroom at their rating levels," says Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "Major investments to boost reserves and production, either organically or through acquisitions, are therefore not expected to exert any significant downward pressure on their ratings," adds Mr. Durose.
Whilst upstream oil businesses' cash flows can be unpredictable due to their dependence on volatile international oil prices, Fitch rates through the economic cycle and therefore does not upgrade during periods of high oil prices and downgrade when prices fall. Fitch expects that 2010's oil prices will benefit from inflationary expectations and the significant amount of liquidity being injected into the global financial markets. Therefore, the agency broadly expects operating cash flows to increase for upstream and integrated oil companies. However, Fitch does not expect balance sheets to strengthen significantly as any additional cash generated is likely to be spent on investment.
"On the other hand, downstream refiners will generally continue to face industry-wide capacity surplus, constraining utilisation and margins," adds Mr. Durose. Furthermore, the creditworthiness of some downstream Asia-Pacific oil and gas companies continues to be constrained by the obligation to supply refined products at prices which are subject to political influence rather than economically cost-reflective. If crude prices rise significantly above current levels for a sustained period, this risk will become more acute.
The ratings of many of the region's oil and gas companies are supported by their close legal, operational and strategic ties with respective government owners. Fitch does not expect the implied or actual government support for any of these companies to weaken in 2010.
"Most exploration & production (E&P) and integrated companies have significant headroom at their rating levels," says Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "Major investments to boost reserves and production, either organically or through acquisitions, are therefore not expected to exert any significant downward pressure on their ratings," adds Mr. Durose.
Whilst upstream oil businesses' cash flows can be unpredictable due to their dependence on volatile international oil prices, Fitch rates through the economic cycle and therefore does not upgrade during periods of high oil prices and downgrade when prices fall. Fitch expects that 2010's oil prices will benefit from inflationary expectations and the significant amount of liquidity being injected into the global financial markets. Therefore, the agency broadly expects operating cash flows to increase for upstream and integrated oil companies. However, Fitch does not expect balance sheets to strengthen significantly as any additional cash generated is likely to be spent on investment.
"On the other hand, downstream refiners will generally continue to face industry-wide capacity surplus, constraining utilisation and margins," adds Mr. Durose. Furthermore, the creditworthiness of some downstream Asia-Pacific oil and gas companies continues to be constrained by the obligation to supply refined products at prices which are subject to political influence rather than economically cost-reflective. If crude prices rise significantly above current levels for a sustained period, this risk will become more acute.
The ratings of many of the region's oil and gas companies are supported by their close legal, operational and strategic ties with respective government owners. Fitch does not expect the implied or actual government support for any of these companies to weaken in 2010.
Saturday, January 30, 2010
RAINBOW CNG AND THE FLY II DDF SYSTEM
Over the past year, Rainbow CNG has been assiduously testing a DDF system that would enable to optimize the performance of Diesel engines without invasion.
Our engineer, Mr. Attilio Guidetti, has been instrumental in developing the electronics with which this system can run.
The Diesel Dual fuel System allows an amount of gas to be injected into the engine through the air intake manifold. This improves the rate at which the engine burns fuel, and this translates into a better performance and/or a saving of fuel.
The DDF can be used with either CNG or LPG gas. Using the CNG gas obviously has a better environmental impact.
Starting in February 2009, Rainbow CNG together with Rainbow Fuel Energy Solutions Inc. first tested the system on some of the Jeepneys crowding the streets of Metro Manila. The Jeepneys with Isuzu C240 engine were found to be running 30% smoother and with noticeably improved engine performance. The production of black engine exhaust smoke was significantly reduced.
The testing has continued over a variety of vehicles in Thailand, from pick ups to cars to minivans. The system was tested successfully on Mercedes MD140 2.9 Vip Van finding that the range of fuel saving with CNG went from 45 % to 48%. and pick up Mitsubishi Strada 2.8 D, finding that the range of fuel saving with LPG went from 30 % to 35%.
Together with Engine Expert Enterprise of Malaysia, a successful test was also carried out on a truck Nissan lorry CD45, 20 ton, finding that the overall saving on Diesel consumption was of more than 40%.
THE CONVERTED NISSAN LORRY ON ROAD TEST
The great advantage of the DDF system is that it allows the vehicle operator the flexibility of using two fuels, can gain both economically and environmentally from this and can revert completely to diesel, which is a bonus in terms of the resale value of the vehicle.
The above graph depicts the flexibility of the system. The configuration can be easily adapted to the customer’s needs and driving style. The customer can decide at which level of RPM he wishes to inject gas into the system and get increased power or savings.
The second graph shows the increase of the torque and consequently the increase in power of the diesel engine in gas configuration.
Our engineer, Mr. Attilio Guidetti, has been instrumental in developing the electronics with which this system can run.
The Diesel Dual fuel System allows an amount of gas to be injected into the engine through the air intake manifold. This improves the rate at which the engine burns fuel, and this translates into a better performance and/or a saving of fuel.
The DDF can be used with either CNG or LPG gas. Using the CNG gas obviously has a better environmental impact.
Starting in February 2009, Rainbow CNG together with Rainbow Fuel Energy Solutions Inc. first tested the system on some of the Jeepneys crowding the streets of Metro Manila. The Jeepneys with Isuzu C240 engine were found to be running 30% smoother and with noticeably improved engine performance. The production of black engine exhaust smoke was significantly reduced.
The testing has continued over a variety of vehicles in Thailand, from pick ups to cars to minivans. The system was tested successfully on Mercedes MD140 2.9 Vip Van finding that the range of fuel saving with CNG went from 45 % to 48%. and pick up Mitsubishi Strada 2.8 D, finding that the range of fuel saving with LPG went from 30 % to 35%.
Together with Engine Expert Enterprise of Malaysia, a successful test was also carried out on a truck Nissan lorry CD45, 20 ton, finding that the overall saving on Diesel consumption was of more than 40%.
THE CONVERTED NISSAN LORRY ON ROAD TEST
The great advantage of the DDF system is that it allows the vehicle operator the flexibility of using two fuels, can gain both economically and environmentally from this and can revert completely to diesel, which is a bonus in terms of the resale value of the vehicle.
The above graph depicts the flexibility of the system. The configuration can be easily adapted to the customer’s needs and driving style. The customer can decide at which level of RPM he wishes to inject gas into the system and get increased power or savings.
The second graph shows the increase of the torque and consequently the increase in power of the diesel engine in gas configuration.
PTT Chemical and GE sign gas turbine service agreement
PTT Chemical Public Company Limited, Thailand’s largest chemical producer and a regional leader in the petrochemical industry, has signed a service agreement with GE (NYSE: GE) in Singapore to ensure the long-term reliability of nine GE gas turbines at PTT Chemical’s site in Map Ta Phut Industrial Estate, Rayong Province, Thailand.
The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.
Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”
“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.
PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.
GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.
Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”
“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.
PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.
GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
Tuesday, December 15, 2009
ETIHAD TO JOIN SUSTAINABLE AVIATION FUEL USERS GROUP
Etihad Airways has joined the Sustainable Aviation Fuel Users Group (SAFUG), an airline-led industry working group established in 2008 to accelerate the commercialisation and availability of sustainable biofuels.
James Hogan, Etihad Airways’ chief executive, said: ““Etihad recognises the need for step-changes in aviation to reduce our reliance on fossil fuels and meet our industry’s carbon reduction goal. We also recognise that any fuel alternatives must be morally, socially and environmentally acceptable, while not compromising the future sustainability of the aviation industry.”
SAFUG members are bound by stringent criteria for the development of non fossil fuels, including the following:
The development of plant sources must be undertaken in a manner that is non-competitive with food, with biodiversity impacts minimised and without jeopardizing drinking water supplies. The total lifecycle greenhouse gas emissions from plant growth, harvesting, processing and end-use should be significantly less than that from fossil sources. In developing economies, development projects should include provisions or outcomes that improve socio-economic conditions for small-scale farmers and their families and that do not require the involuntary displacement of local populations. High conservation value areas and native eco-systems should not be cleared and converted for jet fuel plant source development.
Each SAFUG member has pledged to work through the Roundtable for Sustainable Biofuels (RSB), a global multi-stakeholder initiative consisting of leading environmental organizations, financiers, biofuel developers, biofuel-interested petroleum companies, the transportation sector, developing-world poverty alleviation associations, research entities, and governments.
“Abu Dhabi, our home base, has itself made a strong commitment towards sustainability and in the promotion of renewable energy through the establishment of Masdar City, which will the headquarters of the International Renewable Energy Agency,” Mr Hogan said.
About Etihad Airways
Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 55 destinations in the Middle East, Europe, North America, Africa and Asia.
James Hogan, Etihad Airways’ chief executive, said: ““Etihad recognises the need for step-changes in aviation to reduce our reliance on fossil fuels and meet our industry’s carbon reduction goal. We also recognise that any fuel alternatives must be morally, socially and environmentally acceptable, while not compromising the future sustainability of the aviation industry.”
SAFUG members are bound by stringent criteria for the development of non fossil fuels, including the following:
The development of plant sources must be undertaken in a manner that is non-competitive with food, with biodiversity impacts minimised and without jeopardizing drinking water supplies. The total lifecycle greenhouse gas emissions from plant growth, harvesting, processing and end-use should be significantly less than that from fossil sources. In developing economies, development projects should include provisions or outcomes that improve socio-economic conditions for small-scale farmers and their families and that do not require the involuntary displacement of local populations. High conservation value areas and native eco-systems should not be cleared and converted for jet fuel plant source development.
Each SAFUG member has pledged to work through the Roundtable for Sustainable Biofuels (RSB), a global multi-stakeholder initiative consisting of leading environmental organizations, financiers, biofuel developers, biofuel-interested petroleum companies, the transportation sector, developing-world poverty alleviation associations, research entities, and governments.
“Abu Dhabi, our home base, has itself made a strong commitment towards sustainability and in the promotion of renewable energy through the establishment of Masdar City, which will the headquarters of the International Renewable Energy Agency,” Mr Hogan said.
About Etihad Airways
Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 55 destinations in the Middle East, Europe, North America, Africa and Asia.
ROLLS-ROYCE POWERS MAJOR GAS PIPELINES IN CHINA
Rolls-Royce, the global power systems company, has won two additional major contracts from PetroChina for power systems to be installed on the West to East Gas Pipeline Project (WEPP).
The contracts include extension of Rolls-Royce involvement in the initial WEPP Line 1 and the Western section of Line 2, a second West to East pipeline currently under construction. Total value of the orders exceeds $120 million.
Three RB211-powered gas compressor packages and a single motor-driven compressor have been ordered for Line 1 of the WEPP pipeline to increase installed horsepower at various stations along the pipeline. Crossing ten Chinese provinces from the West Gobi desert to Shanghai in the East, this 4,000 km line has a capacity of 17 billion cubic meters (bcm) of natural gas per year.
In addition, six RB211 compressor packages have been ordered for the 2,450 km Western section of Line 2, which is being constructed to transport gas from the Chinese border with Kazakhstan in the West to Zhongwei, the intersection point between the regions of Ningxia, Gansu and Inner Mongolia. When completed and fully operational, this line is designed to have a capacity of 30 bcm of natural gas per year, which is broadly equivalent to the current annual domestic consumption of natural gas in the UK.
Tony Ruegger, Vice-President – Oil & Gas for the Rolls-Royce energy business, said: “We are very pleased to once again be selected by PetroChina to provide Rolls-Royce power and compression equipment for their growing pipeline network.
”These latest orders emphasize the increasing success of Rolls-Royce equipment and expertise in China, one of the world’s most important energy markets.”
The new contracts increase the number of RB211 gas turbine packages ordered for the original WEPP line to19 and the number of motor-driven units to six. Fifteen RB211 sets and five motor-driven compressors are already in operation, and an additional RB211 set is currently undergoing installation. Total operating experience now exceeds a quarter of a million hours, with one engine installed at station one, Lunnan, Xinjiang Province, having recorded over 23,000 hours.
The gas compressors for all nine newly-ordered gas turbine packages plus the single motor drive unit will be model RFBB-36, also designed and manufactured by Rolls-Royce.
The RB211 gas generators will be manufactured at the company’s Montreal facility in Canada while packaging of the units and the manufacture of the compressors will take place in Mount Vernon, Ohio. All the equipment for WEPP Line 1 is scheduled for delivery in the first quarter of 2010 with the six packages for Line 2 due in the second quarter of 2010.
Rolls-Royce has 26 RB211 gas turbines currently operating in and around the Gulf of Thailand.
The contracts include extension of Rolls-Royce involvement in the initial WEPP Line 1 and the Western section of Line 2, a second West to East pipeline currently under construction. Total value of the orders exceeds $120 million.
Three RB211-powered gas compressor packages and a single motor-driven compressor have been ordered for Line 1 of the WEPP pipeline to increase installed horsepower at various stations along the pipeline. Crossing ten Chinese provinces from the West Gobi desert to Shanghai in the East, this 4,000 km line has a capacity of 17 billion cubic meters (bcm) of natural gas per year.
In addition, six RB211 compressor packages have been ordered for the 2,450 km Western section of Line 2, which is being constructed to transport gas from the Chinese border with Kazakhstan in the West to Zhongwei, the intersection point between the regions of Ningxia, Gansu and Inner Mongolia. When completed and fully operational, this line is designed to have a capacity of 30 bcm of natural gas per year, which is broadly equivalent to the current annual domestic consumption of natural gas in the UK.
Tony Ruegger, Vice-President – Oil & Gas for the Rolls-Royce energy business, said: “We are very pleased to once again be selected by PetroChina to provide Rolls-Royce power and compression equipment for their growing pipeline network.
”These latest orders emphasize the increasing success of Rolls-Royce equipment and expertise in China, one of the world’s most important energy markets.”
The new contracts increase the number of RB211 gas turbine packages ordered for the original WEPP line to19 and the number of motor-driven units to six. Fifteen RB211 sets and five motor-driven compressors are already in operation, and an additional RB211 set is currently undergoing installation. Total operating experience now exceeds a quarter of a million hours, with one engine installed at station one, Lunnan, Xinjiang Province, having recorded over 23,000 hours.
The gas compressors for all nine newly-ordered gas turbine packages plus the single motor drive unit will be model RFBB-36, also designed and manufactured by Rolls-Royce.
The RB211 gas generators will be manufactured at the company’s Montreal facility in Canada while packaging of the units and the manufacture of the compressors will take place in Mount Vernon, Ohio. All the equipment for WEPP Line 1 is scheduled for delivery in the first quarter of 2010 with the six packages for Line 2 due in the second quarter of 2010.
Rolls-Royce has 26 RB211 gas turbines currently operating in and around the Gulf of Thailand.
Thailand Inaugurates First Private NGV Mother Station
9 November 2009 – H.E. Dr. Wannarut Channukul, Minister of Energy, today inaugurated Thailand’s first NGV mother station under private investment. Located at Tambon Chiang Rak Noi, Amphoe Sam Khok, Pathum Thani province, the station is operated by Sakol Energy Co., Ltd., which pioneers NGV distribution on behalf of PTT Plc.
The minister of energy said that with the spiraling NGV demand, PTT had been expanding the capacity of existing mother stations while securing land for additional mother stations to meet the public demand for the increasingly popular fuel. At the same time, the ministry had supported PTT’s invitation for private investment in new mother stations to add to PTT’s tally and raise NGV supply. With a distribution capacity of 250 tons/day, Sakol Energy’s station is Thailand’s first private NGV mother station, supplementing PTT’s distribution capacity and transmission volume for 19 daughter stations in Bangkok, Nonthaburi, Pathum Thani, and Ayutthaya.
Mr. Prasert Bunsumpun, PTT’s Chief Executive Officer and President, added that the private sector’s acceptance of PTT’s invitation to set up mother stations is regarded as a milestone step for private participation in NGV business development. For this would not only raise PTT’s own efficiency of promoting NGV in the transport sector, but also ease motorists’ NGV refueling queues. Today, PTT commands a total of 18 mother stations, which supply the fuel to daughter stations nationwide with a total distribution capacity of 3,600 tons/day. Combined with the distribution capacity of its 78 conventional stations, its total capacity now stands at 7,750 tons/day. The national oil company’s current NGV sales volume amounts to about 3,900 tons/day. Currently, there are 358 NGV stations operating nationwide. According to the plan, PTT targets to increase the number of NGV stations by the end of this year.
The minister of energy said that with the spiraling NGV demand, PTT had been expanding the capacity of existing mother stations while securing land for additional mother stations to meet the public demand for the increasingly popular fuel. At the same time, the ministry had supported PTT’s invitation for private investment in new mother stations to add to PTT’s tally and raise NGV supply. With a distribution capacity of 250 tons/day, Sakol Energy’s station is Thailand’s first private NGV mother station, supplementing PTT’s distribution capacity and transmission volume for 19 daughter stations in Bangkok, Nonthaburi, Pathum Thani, and Ayutthaya.
Mr. Prasert Bunsumpun, PTT’s Chief Executive Officer and President, added that the private sector’s acceptance of PTT’s invitation to set up mother stations is regarded as a milestone step for private participation in NGV business development. For this would not only raise PTT’s own efficiency of promoting NGV in the transport sector, but also ease motorists’ NGV refueling queues. Today, PTT commands a total of 18 mother stations, which supply the fuel to daughter stations nationwide with a total distribution capacity of 3,600 tons/day. Combined with the distribution capacity of its 78 conventional stations, its total capacity now stands at 7,750 tons/day. The national oil company’s current NGV sales volume amounts to about 3,900 tons/day. Currently, there are 358 NGV stations operating nationwide. According to the plan, PTT targets to increase the number of NGV stations by the end of this year.
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