European PP prices increased in April by EUR10/tonne for CIS markets

MOSCOW (MRC) - April contract price of propylene in Europe was agreed up by EUR10/tonne from the level of March. Most European producers announced the increase in April export PP prices for CIS markets proportionally to the increase in prices of propylene, according to ICIS-MRC Price Report.

In some cases prices were increased by EUR15-30/tonne and roled over from March. Negotiations on the April price for European PP began on Tuesday, 3 April.

All market participants reported an increase in export prices for propylene polymers in the current month, at least in proportion to the growth in the price of the monomer in the region, with some exceptions. Some producers announced an increase in homopolymer PP prices by EUR30/tonne from the March level.

Deals for April shipments of homopolymer PP were discussed in the range of EUR1,090-1,155/tonne FCA, whereas March deals were negotiated in the range of EUR1,060-1,145/tonne FCA. Some producers still had limited quotas for exports of injection moulding homopolymer PP.

Deals for copolymers of propylene (PP block copolymers) were discussed in the range of EUR1,210-1,250/tonne FCA, while in March deals were done in the range of EUR1,195-1,250/tonne FCA.
MRC

MOSCOW (MRC) -- A coal ship that dropped anchor off the coast of the Indonesian port city of Balikpapan on Borneo island was likely to blame for an oil spill, after dragging a pipeline more than 100 meters and causing it to crack, reported Reuters with reference to an energy ministry official.

Indonesia declared a state of emergency this week after the spill and fire killed five fishermen. The environment ministry said the oil covered an area of nearly 13,000 hectares and had polluted 60 km of coastal ecosystems, including mangrove wetlands and marine mammal habitats.

"We suspect the pipe was dragged by the ship that caught fire," Oil and Gas Director General Djoko Siswanto told reporters on Thursday.

"At the time it was bad weather, so they had to drop anchor," Siswanto said, noting it was an area where ships were not supposed to anchor.

Siswanto did not identify the vessel, but said it was a coal ship with a Panama flag.

Balikpapan is a bustling mining and energy hub, sitting on a shipping lane serving one of Indonesia's biggest thermal coal mining regions.

Pertamina had at first said initial tests showed the oil was marine oil used in boats, but on Wednesday said a cracked 20-year-old underwater pipeline linked to its refinery in Balikpapan was the source.

By Tuesday night, around 70 cubic meters of spilled oil had been contained by a team from several oil companies operating in the area and government agencies, the environment ministry said.

Thick clumps of oil were still visible in some areas on Thursday, but "much less than the several days prior," Environment Minister Siti Nurbaya said in a statement.

The ministry, which is responsible for supervising the cleanup and compensation claims, had asked Pertamina to contain the remaining oil and help affected members of the community, Nurbaya said.

Oil and Gas Director General Siswanto said the spill had been stopped and "the remains of the oil spill are still being cleaned up". He did not estimate how much oil had spilled.

The spill had reduced the operational capacity of the Balikpapan oil refinery, a Pertamina official said.

A second smaller undamaged pipeline running next to the broken pipe was being used to deliver crude to the refinery, with additional oil supplied via tankers, Siswanto said.

Some green groups have criticised Pertamina for not taking responsibility for the spill.

Siswanto said Pertamina had been late in announcing the source of the oil, but said the government was investigating the company that owned the vessel suspected of breaking the state company's pipeline.

The vessel owners would be questioned and could be charged over the deaths resulting from the spill, he said.

"It depends on who was to blame. It depends on the investigation," he said.
MRC

MOSCOW (MRC) -- Annual average U.S. crude oil production reached 9.3 MMbpd in 2017, an increase of 464 Mbpd from 2016 levels after declining by 551 Mbpd in 2016, as per Hydrocarbonprocessing.

In November 2017, monthly U.S. crude oil production reached 10.07 MMbpd, the highest monthly level of crude oil production in U.S. history. U.S. crude oil production has increased significantly over the past 10 years. EIA projects that U.S. crude oil production will continue to grow in 2018 and 2019, averaging 10.7 MMbpd and 11.3 MMbpd, respectively.

Although much has changed since 1970, Texas continues to produce more crude oil than any other state or region of the United States. Texas has held the top position in nearly every year since 1970, with the exceptions of 1988, when Alaska produced more crude oil than Texas, and from 1999 through 2011, when production from the Federal Gulf of Mexico was higher.

Texas crude oil production averaged 3.5 million b/d in 2017 and reached a record high monthly level of 3.95 million b/d in December 2017. Texas’s 2017 annual production increase of nearly 300,000 b/d—driven by significant growth within the Permian region—was more than all other states and the Federal Gulf of Mexico combined.
MRC

MOSCOW (MRC) -- The consumer goods group Unilever, the PET manufacturer and recycler Indorama and the Dutch start-up Ioniqa have launched a partnership to advance the development of a new PET recycling technology, as per EUWID.

The process, developed by Ioniqa, was already successful at the pilot scale and is now entering industrial-scale testing, Unilever said Wednesday.

According to Ioniqa, its proprietary technology is capable of breaking down any PET waste, including coloured packaging, to base molecules and separating the colour and other contaminants. The molecules can then be converted back into PET. The resulting material was equivalent to the virgin material currently manufactured by Indorama, said Unilever.

“If proven successful at industrial scale, in future it will be possible to convert all PET back into high quality, food-grade packaging,” said the project partners. The companies believe that this new technology could lead to an industry transformation, since it could be repeated indefinitely.

As MRC wrote earlier, in September 2017, Indorama Ventures Public Company Limited (IVL), a global chemical producer, and Toyobo, announced a license agreement that provides IVL with rights to Toyobo’s aluminum catalyst technology for the production of PET resin.

Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. Indorama Ventures products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017.
MRC

MOSCOW (MRC) - Indonesia’s state oil company Pertamina said a cracked underwater pipeline was the cause of a deadly oil spill off the coast of a port city on Borneo island, that has prompted a major clean-up operation in the areaб фы зук Reuters.

Authorities rushed to contain the spill off Balikpapan, which started on Saturday and sparked a fire that killed four people who were trying to clear the spill. TV footage has shown officials scooping up buckets of oil from the sea and dumping them in pits on shore.

“The pipe was found ... in a broken condition. There were external factors that caused that,” said Togar MP, general manager of Pertamina’s refinery in Balikpapan. “We are still calculating the volume of the leak and losses,” he said at a news conference in Balikpapan, adding the leak was of crude oil.

It was not immediately clear if the pipeline had been repaired. A government official in Jakarta said it was unclear what had caused the leak.

"It could be that the pipeline is rusty or an anchor hit it," said Djoko Siswanto, director general of oil and gas at the energy ministry.

The state energy firm said on Sunday initial tests showed the oil was marine oil used in boats.

Balikpapan city, a major mining and energy hub, declared a state of emergency on Monday, warning residents to stay away from the coast because the area was prone to fires.
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