ADNOC to improve energy efficiency by 10% by 2020

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) announced, today, it plans to introduce measures that will increase energy efficiency by 10% by 2020, sid Hydrocarbonprocessing.

The energy efficiency strategy will reduce ADNOC’s gas consumption by 156 MMcf/d, saving a total of USD1 billion by 2020.

The initiatives have already cut CO2 emissions by 3.1 MMt, the equivalent of 658,800 car journeys a year, compared with 2014 levels. Further cuts in emissions will occur over the next three years as additional operational efficiencies are introduced.

ADNOC’s energy efficiency plans were announced on the second day of the World Future Energy Summit (WFES), being held as part of the Abu Dhabi Sustainability Week (ADSW) Exhibition and Conference, at the Abu Dhabi National Exhibition Centre (ADNEC).

As part of the initiative, ADNOC will optimize energy use, consumption and performance, across a range of industry related activities, and upgrade systems to measure and report data for better energy planning across the organization.

"ADNOC’s commitment to energy efficiency has already brought significant tangible results," said Omar Al Suwaidi, Director of Gas Management at ADNOC Group. "These efficiencies are going to drive further cost savings and enable us to create maximum value from our gas resources. This will not only improve profitability, it will also enable ADNOC to achieve its strategic goal of meeting Abu Dhabi’s rising energy demand from domestic gas supplies."

As MRC informed earlier, ADNOC shut half the capacity at its 800,000 barrels-per-day Ruwais refinery after a fire in mid January 2017.

The Abu Dhabi National Oil Company or ADNOC is the state-owned oil company of the United Arab Emirates (UAE). According to the Oil & Gas Journal, as of January 2015, the UAE holds the seventh-largest proven reserves of oil in the world at 97.8 billion barrels. Most of these reserves are located in Abu Dhabi. It is the world's 11th largest oil company by production, standing at 3.1 million barrels per day.It is the UAE's biggest company.
MRC

Solvay restates 2015 and 2016 financial information

MOSCOW (MRC) -- Solvay publishes restated consolidated financial information for 2015 and the first nine months of 2016, said the company on its site.

The restatement reflects the reclassification of the Acetow and Vinythai businesses in discontinued operations following the recent announcement of their divestment.

Solvay announced in December 2016 the agreement to sell its cellulose acetate tow business Acetow for an enterprise value of about EUR1 billion, as well as a definitive agreement to sell its 59% stake in its Asian PVC activity Vinythai for an enterprise, based on an enterprise value of EUR435 million. These transactions are expected to close in the first half of 2017. The sale of the Latin American PVC activity Indupa, which was closed in December 2016, has no impact on the restatement as it had been discontinued previously.

The net sales and EBITDA restatements in the Performance Chemicals and Functional Polymers segments reflect respectively the discontinuation of the Acetow and Vinythai businesses. The EBITDA restatements in the Corporate & Business Services segment result from residual costs that were previously allocated to these discontinued business activities. Cost reduction measures to absorb these residual costs will continue to feature prominently in Solvay’s excellence programs.

The 2016 fourth quarter and full year results will be published on February 24 on this restated basis. The balance sheet will reflect Acetow and Vinythai assets and liabilities moved into assets held for sale and associated liabilities. The 2016 outlook for underlying EBITDA growth and free cash flow are unaffected by the restatements.

As MRC informed earlier, in December 2016, Solvay completed the sale of its 70.59% stake in Solvay Indupa to Brazilian chemical group Unipar Carbocloro, following the approval earlier this month of the Brazilian antitrust authority CADE.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

ADNOC shuts half capacity at Ruwais refinery after fire

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) has shut half the capacity at its 800,000 barrels-per-day Ruwais refinery after a fire there last week, said Reuters.

ADNOC has closed the newer section of the refinery, which doubled its capacity when it started operating in 2015, the sources said, declining to be identified as they were not authorized to speak with media.

The refinery is expected to come back online this week, one of the sources added.

The fire broke out at an olefin conversion unit (OCU) which produces petrochemical products like propylene, a second source said.

"(ADNOC) is still exporting products and receiving feedstock," the first source said, adding that the company had plenty of oil product inventory and that the impact on supply would be limited to propylene.

But ADNOC has deferred at least two diesel cargoes which were expected to load from the refinery in January, traders have said.

The refinery mainly processes ADNOC's flagship Murban crude and the producer has been in talks with its crude customers in Asia to adjust their loadings in January to accommodate the refinery's outage, trade sources said.

ADNOC is requesting that buyers switch to loading Murban crude in January instead of Das or Upper Zakum, said a source with a refinery.

"We can switch but price-wise, it's 50 cents a barrel difference," the source said, adding that the request had also been for very prompt delivery. For a week's shutdown, ADNOC may have to sell up to six prompt cargoes, the source said.

Another two sources at Asian refineries said ADNOC had been looking for buyers who could lift additional crude this month.

As MRC informed earlier, ADNOC plans to almost triple its petrochemical production to an annual 11.4 MMt by 2025 from 4.5 MMt at present.

The Abu Dhabi National Oil Company ??or ADNOC is the state-owned oil company of the United Arab Emirates (UAE). According to the Oil & Gas Journal, as of January 2015, the UAE holds the seventh-largest proven reserves of oil in the world at 97.8 billion barrels. Most of these reserves are located in Abu Dhabi. It is the world's 11th largest oil company by production, standing at 3.1 million barrels per day.It is the UAE's biggest company.
MRC

PP imports in Russia rose by 11% in 2016

MOSCOW (MRC) - Total imports of polypropylene (PP) into Russia increased to 167,200 tonnes in 2016, up 11% compared to 2015.
Russia's imports of all grades of PP increased, with the exception of PP random copolymers, according to MRC DataScope.

Russia's imports of PP increased in December, having reached 12,400 tonnes compared with 10,600 tonnes in November. The main increase in import deliveries accounted for pipe PP random copolymers, as low export prices in Europe and strengthening euro made imports quite attractive for the local pipe producers. In general, PP imports into Russia totalled 167,200 tonnes in January-December 2016, compared with 151,200 tonnes year on year. The decrease in supply showed only in PP random copolymers segment due to a significant growth of pipe PP production by Nizhnekamskneftekhim, Stavrolen and Tomskneftekhim.

PP imports in Russia over the reported period looked as follows.

December imports of homopolymer PP into the country grew to 4,100 tonnes, compared with 3,800 tonnes in November. Local companies increased the volume of purchases of injection moulding homopolymer PP from Europe. Total imports homopolymer PP raffia grade into Russia exceeded 72,500 tonnes in January - December 2016, compared with 60,800 year on year.

December imports of PP block copolymers was about 2,000 tonnes, which actually equal to the level in November. Total imports of PP block copolymers into Russia reached 30,800 tonnes in 2016, up 9% year on year. The greatest increase in supply accounted for pipe propylene copolymers.

Imports of stat-propylene copolymer (PP-random) in December was about 3,700 tonnes against 2,500 tonnes in November. Despite the seasonal factor, some local producers of pressure pipes significantly increased purchases of raw materials in Europe. Total imports of PP random copolymers into Russia decreased to 34,800 tonnes in 2016, down 4% year on year. The reduction accounted for only pipe PP random copolymers, while purchases of film and injection copolymers grew.

Imports of other propylene polymers for the reported period decreased to about 29,100 tonnes compared with 26,000 tonnes in the same time a year earlier.


MRC

Prices of European PE rose by EUR45/tonne and higher for CIS markets

MOSCOW (MRC) -- The January contract price of ethylene in Europe was agreed up by EUR45/tonne from December. European polyethylene (PE) producers increased their export prices by EUR45/tonne and higher, according to ICIS-MRC Price Report.

Negotiations over export prices of European PE began back last week, and most deals were done at once. Many negotiators said all European producers raised their export PE prices. Prices were adjusted by at least EUR45/tonne, some producers announced a price increase of up to EUR80/tonne. As in December, most producers had serious restrictions on exports this month.

January deals for high density polyethylene (HDPE) were done in the range of EUR1,090-1,205/tonne FCA, whereas last month's deals were done in the range of EUR1,045-1,160/tonne FCA. Negotiations over pipe grade black PE 100 were held in the range of EUR1,225-1,270/tonne FCA, up by an average of EUR75-80/tonne from December. Negotiations participants said producers from Hungary, Serbia and the Czech Republic still had significant restrictions on exports this month as well.

January deals for low density polyethylene (LDPE) were discussed in the range EUR1,205-1,275/tonne FCA, whereas last month's deals were done in the range of EUR1,160-1,230/tonne FCA. Similar to HDPE, a number of producers also had restrictions on shipments this month.
MRC