Pakistan State Oil seeks 905 Mt of oil products for September

MOSCOW (MRC) — Pakistan State Oil is seeking 905,000 t of gasoline and fuel oil for September, three tender documents showed on Wednesday, said Hydrocarbonprocessing.

The state-owned company is seeking 10 cargoes of 65,000 t each of 180-cst high sulfur fuel oil for September loading on a free-on-board (FOB) basis.

It is also looking for 55,000 t of low sulfur fuel oil for September delivery into Kaemari or Port Qasim in Karachi on a cost and freight (C&F) basis.

For gasoline, PSO is seeking four cargoes of 50,000 t each of 92-octane gasoline on a C&F Keamari basis. The tenders close on July 24, remaining valid until Aug. 7

PSO typically uses fuel oil for power generation and gasoline in road transport. Its gasoline imports are slightly higher than usual this month due to increased demand during the school holidays, a source close to the matter said.

But this may fall once monsoon season kicks in and curbs transportation, the source added. Monsoon rains are also curbing demand for gasoil in the agriculture sector, the source said.

PSO has a high inventory of gasoil and jet fuel and does not need to import the fuels for September as of now, the source added.

The company has resumed jet fuel shipments to Afghanistan, after they were halted in June amid a border dispute, the source said.

PVC imports into Kazakhstan increased by 8% in January-May

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan slightly exceeded 18,000 tonnes in January-May 2017, up 8% compared with the same time a year earlier, according to MRC analysts.
May unmixed PVC imports into Kazakhstan grew to 4,600 tonnes from 3,900 tonnes a month earlier.

Total PVC imports into Kazakhstan exceeded 18,000 tonnes in January-May, compared with 16,700 tonnes year on year.

The main suppliers of PVC in the local market were producers from China, with their share more than 99% from the total PVC imports into the country.


SABIC appoints group to oversee decommission of 10 petchem plants

MOSCOW (MRC) -- Petrochemical firm SABIC has appointed specialist consultancy RVA Group to oversee the decommissioning, demolition and dismantling of 10 plants at its North Tees and Wilton sites, said Hydrocarbonprocessing.

With work having already commenced in the two locations, the multi-million pound program is expected to be completed in 2020.

The more immediate program involves the demolition of a Jetty, which will begin at the end of July and be cleared in eight weeks. Continued decommissioning support is being provided for a tank farm complex and RVA is also finalizing the contractor selection process for the demolition of two Aromatics plants, with a proposed mobilization date of January 2018.

Elsewhere in Wilton, the 48-week demolition of SABIC’s Olefins 5 Furnaces and neighboring Butadiene 2 facility is already in progress and expected to be completed by the spring of 2018 and the close of 2017 respectively.

“With the two-year upgrade of our cracker plant now complete, this current multi-million pound clean-up signals the latest chapter in the creation of safe, efficient and state-of-the-art facilities that are fit for the future,” said Daren Smith, Site Director (acting).

Whilst RVA is no stranger to projects of this scale—having overseen the three largest decommissioning and dismantling projects ever executed on Jurong Island, Singapore, for instance—this is the biggest assignment the team has seen undertaken in the UK.

RVA was appointed via competitive tender to act as the decommissioning consultant, project management resource and CDM Principal Designer, for this latest phase of the project.

Six RVA personnel have a full-time presence on the two sites, with visiting roles from three additional senior managers. The collaborative assignment is also being carried out in conjunction with SABIC’s own project management team, plus surveyors, dismantling and demolition contractors who are being independently appointed via tender for each individual phase of work.

Azerbaijan H1 2017 oil exports via Turkey pipeline fall 12% yr/yr

MOSCOW (MRC) — Azeri oil exports through the Baku-Tbilisi-Ceyhan (BTC) pipeline via Georgia and Turkey fell 11.8% year on year in the first half of 2017 to 13.174 MMt from 14.930 MMt in the same period last year, state energy company SOCAR.

Oil exports through the BTC in 2016 totaled 28.86 MMt, up 1.3%. Azerbaijan exports oil via the pipeline from the Azeri, Chirag and Guneshli (ACG) oil fields operated by BP.

It also exports oil via Russia, through the Baku-Novorossiisk pipeline and via Georgia by rail and through the Baku-Supsa pipeline.

Oil from Kazakhstan and Turkmenistan is also exported through the BTC.

Saudi Arabia tightens its grip on Japan, its biggest Asian oil market

MOSCOW (MRC)— Saudi Arabia has boosted its market share in Japan, the world's top oil exporter's biggest Asian market, by selling more light crude to the country as a way to offset revenue lost implementing OPEC's production cuts, said Reuters.

Middle East crude sellers consider Japan, the world's fourth-largest oil importer, a premium market since its refiners will pay more to secure supply than other Asian buyers. Saudi Arabia raises revenue by boosting sales of more expensive light crude since it cut its supply of so-called heavy crude to comply with the agreement between the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers to reduce output.

Japan's imports of Saudi crude between January and June reached 1.3 MMbpd, 7.7% higher than a year ago, making it Japan's biggest supplier, according to trade flows data on Thomson Reuters Eikon.

The increase was mainly in Arab Extra Light as state oil giant Saudi Aramco offered extra cargoes on top of contracted volumes to Japanese buyers, two Japanese refining sources said. They declined to be named due to company policies.

Imports of Arab Extra Light and Arab Light were 160,000 bpd higher through May at 1.03 MMbpd, said Virendra Chauhan, Singapore-based analyst at consultancy Energy Aspects.

Saudi Arabia "clearly sees Asia as its backyard and as a center of growth and long-term source of demand. As such, it does not want to give up too much market share here," he said. Saudi Aramco did not respond to an e-mail from Reuters seeking comment.

Japan's spending on oil through May this year surged 73% from the same time a year ago to USD33.64 B as global oil prices rose and imports climbed, data from the Ministry of Finance shows.

Saudi imports came at the expense of Iran, whose imports dropped 20% in the first half of 2017, and Kuwait and the United Arab Emirates, which fell by 8% and 5% respectively.

Saudi crude exports to its second- and third-largest Asian buyers—China and South Korea—were little changed in the first half of 2017 from a year ago, the trade flow data showed.

Exports to India and Taiwan dropped 3% and 13% respectively, the data on Eikon showed. Trade sources said this was because Saudi Aramco was unable to supply more heavy crude.

"People are asking for more (heavy crude) but the Saudis can't give because of the OPEC cuts," said a Gulf oil source who requested anonymity because of the sensitivity of the topic.