ADNOC signs new long-term agreement for base oil sales into China

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) concluded a significant long-term sales agreement with the Xiamen Sinolook Oil Co. Ltd., of China, for its high-quality base oil, ADbase, reported Reuters with reference to the company's statement.

ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tons per year of the Group III base oil, at its Ruwais refining and petrochemicals complex.

Murban, Abu Dhabi’s light, high paraffinic crude, is used as feedstock for ADNOC’s Base Oil plant in Ruwais.

Xiamen Sinolook Oil Co. Ltd. is one of China’s biggest importers and distributors of base oils, with a 5 percent share of the 7.17 million tonnes per annum market.

As MRC informed before, in September 2018, ADNOC Refining, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), reached full production of polymer-grade propylene from its newly commissioned Propane Dehydrogenation (PDH) unit, located in the Ruwais integrated refining and petrochemical hub. The PDH unit processes propane from two major sources, ADNOC Gas Processing and Ruwais Refinery West, to produce half a million tons per year of polymer-grade propylene. The standalone unit is part of the recently commissioned Carbon Black and Delayed Coker project.

April prices of European PVC rose for CIS markets under pressure from higher feedstock prices

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for April shipments to the CIS markets have begun this week. Higher feedstock prices made European producers raise their export prices further, according to ICIS-MRC Price report.

The April contract price of ethylene was agreed up by EUR30/tonne from March, which presupposes the increase in PVC production costs in the region by EUR15/tonne. On the back of this, European producers announced an increase in export prices of suspensions for April shipments to the CIS countries, while discussing price increases that are not proportional to the increase in the price of ethylene.

Demand for PVC has remained weak from the main consumers in the CIS countries for several months due to seasonal factors and sufficient supply of resin by national producers.

Some European producers still have had restrictions on export shipments since March because of the upcoming shutdowns for maintenance, but such restrictions are not critical, given the current weak demand.

Deals for April shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were negotiated in the range of €715-785/tonne FCA, whereas last month's deals were done in the range of €710-765/tonne FCA.

Celanese raises April VAM prices in Europe, Middle East, Africa, Asia and Americas

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increase April list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa, Asia and the Americas, as per the company's press release.

The price increases below were effective for orders shipped on or after 20 March, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by EUR100/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD110/mt - for Mexico & South America;
- by USD100/mt - for Asia outside China (AOC):
- by CNY800/mt - for China.

Besides, Celanese increased its prices of emulsion polymers by USD50/mt for AOC.

As MRC reported earlier, Celanese last raised its VAM prices for some of the stated above regions on 1 March, 2019, as follows:

- by EUR100/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD110/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.

Lyondell Houston refinery restoring coker to normal operation

MOSCOW (MRC) -- Lyondell Basell Industries is restoring the large coker to normal operation at its 263,776 barrel-per-day (bpd) Houston refinery after a compressor malfunction, said Gulf Coast market sources, said Reuters.

The 57,000 bpd 737 Coker malfunctioned after a compressor tripped off early on Thursday morning, the sources said. The compressor was reset, allowing Lyondell to begin returning the coker to normal operation.

As MRC informed earlier, LyondellBasell announced that Lianyungang Petrochemical Co., a subsidiary of Zhejiang Satellite, has selected its Hostalen Advanced Cascade Process (ACP) technology for a new high-density polyethylene (HDPE) facility to be built in China.

LyondellBasell is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.

IMO rules to cause 0.6mln bpd marine gasoil deficit in 2020

MOSCOW (MRC) -- The upcoming International Maritime Organization sulfur regulations for marine fuel will lead to a deficit of 600,000 barrel per day of marine gasoil in 2020, according to consultancy Rystad Energy, said Hydrocarbonprocessing.

"We estimate that global gasoil/diesel demand growth in 2020 could reach 1.7 mln bpd, 1.4 million bpd of which is from marine bunkers, almost six times the five-year average global gasoil growth," said Bjornar Tonhaugen, head of oil market research.

The IMO has restricted sulfur content in marine fuels to a maximum of 0.5 percent, down from 3.5 percent now, from the start of 2020.

As MRC informed earlier, Asian refining margins for 10 ppm gasoil slipped, while weaker buying interest in the physical market pushed cash differentials for the industrial fuel lower. Refining margins or cracks for gasoil with 10ppm sulfur content were at USD15.99 a barrel over Dubai crude during Asian trade, 15 cents lower from Monday's USD16.14 per barrel.