Enis Italian refineries at risk of shutdown after tax evasion probe

MOSCOW (MRC) — Italy’s Eni said on Wednesday its refineries in Italy were at risk of shutdown after Italian tax police seized assets as part of a probe into alleged tax evasion, as per Reuters.

The state-controlled oil major said in a statement a judge had ordered the seizure of devices used to measure oil products at its refineries and storage facilities across the country.

Eni denied any wrongdoing. "Considering the consequences that might derive... from a total stop of the refining and fuel supply activities, Eni will request the possibility to continue using the measurement devices," it said.

In a separate statement the tax police said the devices in question had been manipulated in such a way that Eni marketed more refining products than were actually recorded, in a scheme involving tax evasion of about USD12 MM.

It said a total of 18 people were being probed on suspicion of violating tax laws. With five wholly owned refineries, Eni is Italy’s biggest refiner. It also has a series of depots across the country to transport and store oil products onshore.
MRC

AkzoNobel completes expansion of surface chemistry plant in China

MOSCOW (MRC) -- AkzoNobel has completed the EUR4.8 million expansion project at its Surface Chemistry facility in Boxing, China, significantly increasing the company's regional product portfolio and reconfirming its commitment to the Asian market, as per the company's press release.

Being able to supply higher value products means AkzoNobel Specialty Chemicals is now in a stronger position to serve customers in numerous market sectors, including cleaning, agrochemical, personal care (such as cosmetics), mining, fuel and lubes, asphalt and the oil industry.

Prior to the expansion, the site was mainly dedicated to producing fatty acids, nitriles, amines and quaternary ammonium compounds for chemical intermediaries and manufacturers in the fabric softeners market.

"The chemicals industry in Asia continues to evolve and over the last four years we have significantly increased our capabilities in the region," explains AB Ghosh, Managing Director for AkzoNobel's Surface Chemistry business.

"Having already invested in the Boxing facility to improve operational excellence, the new production capacities we now have at the site mean we are better equipped to serve the growing demands of our customers in Asia and regions around the world."

The Boxing expansion is the latest in a series of investments to increase production in China. As well as inaugurating a new alkoxylation plant in Ningbo in 2016, the company is also on track to double capacity for organic peroxides at the Ningbo multi-site over the course of next year.

"China remains a fast growing market and we will continue to make strategic investments in the region," adds Werner Fuhrmann, AkzoNobel's Executive Committee member responsible for Specialty Chemicals. "As well as helping us to accommodate the growth of our customers, our commitment to Asia will also enable us to further build on our leadership positions."

As MRC informed earlier, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

PP imports into Belarus rose by 4.7% in Jan-Sep 2017

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into Belarus grew in January-September 2017 by 4.7% year on year to 72,100 tonnes. Demand for all PP grades increased, as per MRC's DataScope report.

September PP imports to Belarus dropped to 8,300 tonnes from 9,600 tonnes a month earlier, local companies reduced their purchasing of propylene polymers in Russia due to scheduled shutdowns for maintenance at local plants. Overall imports of propylene polymers reached 72,100 tonnes in January-September 2017, compared to 68,900 tonnes a year earlier. Demand for all PP grades increased, but propylene copolymers accounted for the greatest growth.

The structure of PP imports by grades looked the following way over the stated period.


September imports of propylene homopolymers (homopolymer PP) to the Belarusian market dropped to 5,400 tonnes from 5,600 tonnes a month earlier, shipments of injection moulding homopolymer PP decreased. Thus, overall shipments of homopolymer PP reached 48,100 tonnes in the first nine months of the year, compared with 46,800 tonnes a year earlier. Russian producers with the share of about 88% of the total shipments were the key suppliers.

September imports of propylene copolymers into Belarus fell to 3,000 tonnes from 4,000 tonnes a month earlier, local companies reduced their procurement of statistical propylene copolymers (PP random copolymers) in Russia. Thus, overall imports of propylene copolymers reached 24,000 tonnes in January-September 2017, whereas this figure was 22,100 tonnes a year earlier.

MRC

Indian Oil Corp studies renewed Venezuelan crude purchases

MOSCOW (MRC) -- Indian Oil Corp is considering buying Venezuelan crude for the first time in at least 6 yr, in a move that could help the crisis-struck South American nation settle unpaid bills with another state-owned Indian energy firm, reported Reuters.

The OPEC-member's economy has collapsed since crude prices plummeted in 2014, forcing it to delay payments for oil services and fuel supplies. Venezuela depends on oil for more than 90% of its export revenues.

Venezuela's national oil company PDVSA has missed debt payments to ONGC Videsh, the foreign investment arm of Indian explorer Oil and Natural Gas Corp, for 6 mos and wants to settle USD449 MM dues using existing and new Indian clients.

In a letter reviewed by Reuters, Venezuelan Oil Minister Eulogio del Pino wrote to the chairman of Indian Oil Corp, Sanjiv Singh, last week "to evaluate the possibility of a new Venezuelan crude oil supply and refining agreement" with IOC.

IOC chairman Sanjiv Singh confirmed he had received a letter from Venezuela seeking to sell crude.

"All routes are open for us. We need to look at pricing and quality before taking any decision," Singh told Reuters on Wednesday.

PDVSA did not respond to a request for a comment.

The letter said Venezuela has a supply agreement for more than 360,000 bpd with Indian companies.

It is not clear, however, whether Venezuela could supply more oil to overseas customers. To meet its highly subsidized domestic needs, PDVSA is said to have been siphoning off crude from cash-paying joint ventures with foreign firms.

Venezuela's crude production in October fell below 2 MMbpd, its lowest in almost three decades, according to figures provided to OPEC.

Currently, only private refiners Reliance Industries and Essar Oil currently buy Venezuelan oil.

IOC, which is India's biggest fuel refiner, has not processed Venezuelan oil for years as its crude is heavy and has a high sulfur content. However, IOC's ability to process such cheaper grades has improved after an upgrade of its 300,000-bpd east-coast Paradip refinery last year.

PDVSA and its Indian partners together produce around 40,000 bpd from joint ventures in Venezuela's Orinoco belt.

As MRC wrote before, Indian Oil Corporation's Rs 34,555-crore 15 million tonnes per annum Paradip Refinery was commissioned in phases from March 2015 onwards. Indian Oil Corporation was conducting feasibility studies to set up a petrochemical complex at Paradip in Odisha for Rs 20,000 crore. The petrochemical complex will be built in the vicinity of the company’s to-be-commissioned 15-mln tpa greenfield refinery at Paradip. The petrochemical complex will be in addition to the already announced Rs 3,150-crore polypropylene project at the same location, the foundation stone for which was laid by MOS for petroleum and natural gas.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

Neste forms partnerships with four distributors to provide renewable diesel to California

MOSCOW (MRC) -- Neste has announced exclusive partnerships with four fuel distributors in California: IPC (USA), Inc.; Ramos Oil Company, Van De Pol Petroleum; and Western States Oil. Public and private fleets will now have access to a consistent and high-quality supply of Neste MY Renewable Diesel through these partners, said Hydrocarbonprocessing.

California's fuel regulations are among the strictest in the US and Neste MY Renewable Diesel is a sustainable drop-in fuel that meets those requirements. It is a low-carbon fuel produced from 100% renewable raw materials. Neste MY Renewable Diesel cuts greenhouse gas emissions by up to 80% and significantly reduces tailpipe emissions.

The four distributor territories are:

IPC USA, Southern California
Ramos Oil Company, Northeast California
Van De Pol Petroleum, Central Valley California
Western States Oil Co., North Coast California
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