Raizen buys Shell downstream assets in Argentina for USD950 mln

MOSCOW (MRC) -- Brazil's Raizen Combustiveis SA agreed to buy downstream assets in Argentina from Royal Dutch Shell PLC for USD950 million, according to a securities filing, reported Reuters.

Raizen Combustiveis, a joint venture between Brazil?s Cosan SA Industria e Comercio and Shell, will have a 20 percent market share in fuel distribution in Argentina after acquiring a network of 645 gas stations in the country.

Raizen also is acquiring a refinery in Buenos Aires, LPG and aviation fuel terminals and a lubricant plant, among others, which have an annual net revenue of USD3.3 billion.

Reuters first reported that Raizen would buy the business last August.

The deal in Argentina is similar to the model Shell operates in downstream assets in Brazil. The network of 6,200 gas stations that uses the Shell brand is owned by its joint venture with Cosan.

During the sale process, Raizen?s bid topped rival offers by Argentine oil company YPF SA, Chile's Quinenco SA and China National Petroleum Corp's Petrochina Co.

The businesses acquired by Raizen will continue their relationships with Shell through various commercial agreements, representing an estimated value of $300 million, Shell said.

The Anglo-Dutch company said it will keep its upstream interests in the Vaca Muerta shale formation, which was not included in the Raizen deal, as it "sees substantial long-term growth potential in Argentina's shale resources."

The sale is part of Shell's strategy to simplify its portfolio through a USD30 billion divestment program by 2018, and follows a strategic review of the downstream business in Argentina that began in August 2016.

As MRC informed before, Royal Dutch Shell Plc is selling its upstream assets in New Zealand to Austria’s OMV AG (OMVV.VI) for USD578 million. The March agreement includes the sale of Maui, Pohokura and Tank Farms. After deal closure, Shell Taranaki and Shell New Zealand employees will become a part of OMV New Zealand, Shell said.

Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".
MRC

MOSCOW (MRC) -- The U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), Growth Energy and their member organizations welcome the news that the Japanese government’s new biofuel policy will allow imports of ETBE made from U.S. corn-based ethanol, as per Hydrocarbonprocessing.

"The U.S. Grains Council is pleased by this decision and that Japan recognizes these improved benefits of U.S. product. We continue to work around the world, sharing the benefits of U.S. ethanol with other countries that are serious about reducing their GHG emissions,” said Tom Sleight, president and chief executive officer of the U.S. Grains Council, which has an office in Japan working closely with the Japanese government and industry. "From this decision, it is unequivocal that continued improvements in carbon intensity reductions are critical to gain and maintain market access for U.S. ethanol."

The change comes as part of the country's update of its existing sustainability policy, approved in 2010, in which only sugarcane-based ethanol was eligible for import and which only allowed sugarcane-based ethanol for the production of ETBE, an oxygenate. The new policy calls for an increase in the carbon intensity reduction requirements of ethanol used as a feedstock to make ETBE to meet a 55 percent reduction, up from 50 percent, and recognizes corn-based, U.S.-produced ethanol’s ability to meet that goal, even with the higher greenhouse gas (GHG) reduction standard.

Japan will now allow U.S. ethanol to meet up to 44 percent of a total estimated demand of 217 million gallons of ethanol used to make ETBE, or potentially 95.5 million gallons of U.S.-produced ethanol annually. Japan imports nearly all of the ETBE from ethanol that it uses.

This decision by the Japanese government is based on its evaluation and life cycle assessment update of U.S. corn-based ethanol. The U.S. industry’s efforts to maximize production efficiency through technological innovations that lead to higher GHG emission reductions for corn-based ethanol and the emergence of co-products like distillers dried grains with solubles (DDGS) have supported this new access to the Japanese market while positively contributing to the feed and energy value chains.
MRC

MOSCOW (MRC) -- RusVinyl, Russia's largest polyvinyl chloride (PVC) producer (Nizhny Novgorod region), a joint venture of SIBUR Holding and Belgian group Solvay, shut down its PVC production for a scheduled turnaround, reported MRC analytsts.

The plant's representatives said RusVinyl took off-stream its PVC production for a scheduled maintenance last weekend. The outage will not be long and will last approximately until 5 May. RusVinyl's design capacity is 300,000 tonnes/year of suspension polyvinyl chloride (SPVC) and 30,000 tonnes/year of emulsion polyvinyl chloride (EPVC).

This is the first scheduled shutdown for maintenance at Russian PVC plants this year.

SayanskKhimPlast will be the second one to shut down its production capacities for a turnaround. The exact dates of the outage have not been announced by the Sayansk producer yet, but the turnaround is scheduled for July and will last for about a month. The plant's annual production capacity is 300,000 tonnes.
MRC

MOSCOW (MRC) - Overall imports of polyethylene (PE) into Belarus grew by 0.7% year on year in the first two months of this year, reaching 20,200 tonnes. Local companies have increased the volume of purchases of only high density polyethylene (HDPE), as per MRC DataScope.

According to the National Bureau of Statistics of Belarus, February 2018 PE imports to Belarus dropped to 9,300 tonnes from 10,900 tonnes a month earlier. Local companies reduced their purchasing of PE in Russia and Ukraine. Overall PE imports reached 20,200 tonnes in January-February 2018, compared to 20,070 tonnes a year earlier. The demand for HDPE has increased, while the demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) has declined.

The structure of PE imports to Belarus by grades looked the following way over the stated period.

February LDPE imports decreased to 1,900 tonnes from 2,100 tonnes a month earlier. Local companies reduced slightly their PE purchasing in Russia. Overall imports of this PE grade into Belarus totalled about 4,000 tonnes in January-February, compared to 5,600 tonnes a year earlier.

February LLDPE imports were 1,900 tonnes versus 2,500 tonnes a month earlier, local companies significantly reduced their purchasing of Middle Eastern butene PE. Thus, overall LLDPE imports exceeded 4,400 tonnes in January - February 2018, whereas this figure was about 8,100 tonnes a year earlier.

February imports of HDPE into Belarus decreased to 4,400 tonnes against 5,700 tonnes in January. Local companies decreased their purchasing of PE in Russia and Ukraine. Overall HDPE imports into the country were about 10,700 tonnes in January-February 2018, up by 58.5% year on year.

MRC

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus increased to about 14,900 tonnes in first two months of this year, up 17.4% year on year, compared to the same period of 2017. Demand for all PP grades increased, as per MRC DataScope.

February PP imports into Belarus exceeded 8,000 tonnes against 6,900 tonnes a month earlier, local converters increased their purchases of injection moulding propylene copolymers. Total PP imports into the country reached 14,900 tonnes in January - February, compared with 12,600 tonnes year on year.

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

February imports of homopolymers of propylene to the Belarusian market rose to 5,300 tonnes against 5,000 tonnes a month earlier, local companies increased the volume of purchases of injection moulding PP in Russia. Thus, overall homopolymer PP imports reached 10,300 tonnes in January-February, up by 21% year on year.

Russian producers with the share of about 86% of the total shipments were the key suppliers. February imports of propylene copolymers to Belarus increased to 2,700 tonnes from 1,900 tonnes a month earlier, local companies increased their procurement of injection moulding statistical copolymers (PP random copolymers) in Russia. Thus, overall imports of propylene copolymers reached 4,600 tonnes in January-February 2018, whereas this figure was 4,100 tonnes a year earlier.
MRC