Shapoorji Pallonji Oil & Gas awarded two global Business Excellence Awards

MOSCOW (MRC) -- Shapoorji Pallonji Oil & Gas Pvt Ltd (SP O&G) won two global awards commemorating their significant contribution in the Oil & Gas sector, said Hydrocarbonprocessing.

The company was conferred with ‘Business Excellence’ at the 4th ASEAN-India Business Awards 2019 in Manila, Philippines. In the presence of H.E. Shri Ram Nath Kovind, Hon’ble President of India and other ASEAN Ministers, the award was received by Mr. Ravi Shankar, CEO, SP O&G, from H.E. YB Senator Waytha Murthy Ponnusamy, Hon’ble Minister for Trade, National Unity in the Prime Minister’s office, Malaysia and H.E Mr. Ramon M Lopez Hon’ble Secretary, Minister for Trade and Industries of Philippines.

The company was also conferred with ‘Excellent Performance Award of FPSO Contractor of the Year’ at the 6th FPSO & FLNG & FSRU Asia Pacific Summit 2019 in Shanghai. The award was received by Mr. Biswa Mohan Jha, Planning Manager, SP O&G and Mr. Hemant Bedi, DGM Commercial, SP O&G from Mr. Nazery Khalid, Head, Planning & Development at Boustead Heavy Industries Corp., Malaysia. The awards were focused on the ‘Rebound of FPSO & FLNG Global Development and Upgrading’ and Design Innovation and Process Optimization of FPSO and Best Industry Practices.

"I commend our teams at Shapoorji Pallonji Oil & Gas for their dedication to engineering & Construction excellence, which has led us to grow and achieve a respectable milestone in this niche industry segment. We are the only company specializing in offshore processing in both floating and fixed platform segments. It goes to prove that our world-class excellence lies not only in our engineering, procurement & construction capability, innovative financing, talented human resources but also our operating philosophy of safety & quality,” said Mr. Ravi Shankar, CEO, SP Oil & Gas.

The 4th ASEAN - India Business Awards, held on 19th October 2019 aimed to acknowledge the ASEAN companies who have made significant contribution for strengthening bilateral trade and business investment between ASEAN & India member countries.

The 6th FPSO & FLNG & FSRU Asia (FFA) Pacific Convention, ‘Offshore China Awards’, held on 24th and 25th October 2019, celebrated the industry’s best practices and performances. FFA is a leading Global FPSO, FLNG and FSRU industry conference and exhibition held in China, which attracts key decision makers from the industry. The conference represents industry leaders with a particular focus on China and Southeast Asia’s Floating Production Market.

As MRC informed earlier, Indian Oil Corporation (IOC), the country’s largest fuel retailer, has posted an 83 per cent dip in net profit at Rs 563 crore for the second quarter ended September on the back of decreased revenue and fall in gross refinery margins.

Indian Oil Corp restarted operation at its naphtha cracker in India in early-October, 2019, after completing maintenance works. The cracker was shut in early-September, 2019 for a maintenance turnaround. Located in Panipat, in the northern Indian state of Haryana, the cracker has an ethylene production capacity of 857,000 mt/year and propylene capacity of 425,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Total quits U.S. oil lobby group over climate policy differences

MOSCOW (MRC) -- French oil giant Total SA said it won’t renew its membership of a key industry lobby group because the organization’s stance on climate issues doesn’t align with its own, said Bloomberg.

The company’s decision to leave the American Fuel & Petrochemical Manufacturers association follows a similar move by Royal Dutch Shell Plc earlier this year. Such lobby groups have long been a target of environmental activists, but now oil majors are increasingly feeling the heat from investors demanding that their business models align with the Paris climate accord.

Total reviewed its membership of 30 industry associations, and detailed its subsequent decision to leave the AFPM in its “Integrating Climate Into Our Strategy” report, released on Friday. It also singled out three other North American lobby groups with which it’s only “partially aligned” on climate issues, and said it would “advocate internally for changes” in their positions.

Total said it would reconsider its memberships of these three groups “in the event of lasting divergences."

Explaining its planned exit from the AFPM, Total said it held different views on the Paris agreement, carbon pricing and renewable energies.

Anglo-Dutch rival Shell said in April that its position on climate change was misaligned with about half of the trade associations it’s a part of, and the disagreement with the AFPM was so severe that the company was withdrawing.

The AFPM said at the time that it works on “myriad issues” for its members, and “like any family, we aren’t always fully aligned on every policy.” It added that “we always strive to reach consensus positions on policies that are in the best interest of our membership and the communities and consumers that rely on us."

As MRC informed earlier, Total has decided to double the production capacity of its affiliate Synova to meet growing market demand for high-performance recycled materials. By early 2021, Normandy-based Synova, a French leader in its sector, will produce 40,000 tons per year of recycled polypropylene (PP) that meets the demanding quality standards of automotive OEMs and carmakers.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.

Perstorp breaks ground on India pentaerythritol site

MOSCOW (MRC) -- Perstorp has broken ground at a new site in Gujarat, India, for the production of pentaerythritol (penta), said the company on its website.

The world scale, green-field Gujarat plant will produce Penta, including the renewable grades of Voxtar, providing up to a 60% reduced carbon footprint.

Construction of the Gujarat plant started in October this year, with commercial production planned to start in Q1 2022. When fully operational, the site will employ 120 people. The investment will significantly expand Perstorp’s Penta production capacity, designed to produce 40,000 ton/yr of Penta from 2022.

Penta has a vast range of application areas, being an essential building block ingredient in coatings, as well synthetic lubricants and antioxidants. The Gujarat investment will reinforce Perstorp’s ability to meet growing demand, particularly in Asian markets, as well as offering various Penta qualities including Penta Mono and Di-Penta and, additionally, calcium formate.

Perstorp will also produce its renewable grade of penta – which can be used as a building block ingredient in coatings, as well as synthetic lubricants and antioxidants – which can provide up to a 60% reduction in carbon emissions.

As it was written earlier, Perstorp introduced in September 2019 a renewable polyol ester (non-phthalate) plasticizer Pevalen Pro. It will make flexible PVC an even more attractive choice of plastic, based on a significantly lower carbon footprint versus competing materials and technologies. Pevalen Pro improves the sustainability of PVC without compromise on quality and performance.

As per ICIS-MRC Price Report, negotiations over November shipments of suspension polyvinyl chloride (SPVC) began in the Russian market this week. Some producers significantly decreased prices, in some cases up to roubles (Rb) 4,000/tonne. November deals for K64/67 PVC were negotiated in the range of Rb72,000-74,000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes. K70 PVC was contracted at the prices, which were by on average of Rb1,000/tonnes higher.

South Africa sees new Saudi-backed USD10B refinery onstream by 2028

MOSCOW (MRC) -- South Africa’s Central Energy Fund (CEF), partnering with Saudi Aramco, expects a proposed new 300,000 barrel per day crude oil refinery along South Africa’s east coast to come onstream by 2028, making it the region’s largest refinery, reported Hydrocarbonprocessing with reference to CEF’s acting group chief executive's statement.

Work on the project is still at an early stage, but indications are that it would cost in the region of USD10 billion, said Kholly Zono, adding this cost excluded the development of a related petrochemical complex at Richards Bay.

Former Saudi Energy Minister Khalid al-Falih announced the project in January, ahead of plans by Saudi Aramco, the world’s biggest oil firm, to list its shares.

"We are comfortable we have a very solid business case to attract investment and funding from bankers," Zono told Reuters on the sidelines of an oil and gas conference in Cape Town.

"This refinery will not only increase capacity for South Africa but also the region," he said, adding it would be funded through a mix of debt and equity.

A pre-feasibility study will be completed in the next few weeks, after which a more detailed feasibility study will firm up the design and capital cost estimates, followed by front-end engineering and design.

"We are looking at the refinery becoming operational by 2027/28," Zono said.

The new refinery would reduce the need for refined product imports and cement Saudi Arabia’s dominant position in South Africa’s oil sector. The Gulf kingdom already supplies around 40 percent of the crude oil consumed in South Africa, which is a net importer of petroleum products.

The refinery will be designed to accept other types of crude and produce fuel compliant with South Africa’s impending clean fuels regulations based on Euro V specifications, Zono said.

South Africa has talked about building a new refinery for more than a decade, but has struggled to find investors.

Africa’s most industrialised economy has six refineries, four using crude oil and two synthetic fuel as feedstock. Royal Dutch Shell, BP, Total and Sasol are among the major refinery operators.

Zono said the new refinery will not jeopardise the Mossel Bay gas-to-liquid (GTL) refinery operated by CEF’s subsidiary PetroSA, amid fears the plant could be shuttered.

South Africa’s national oil company, PetroSA, said in September its flagship GTL refinery could run out of domestic supplies by the end of 2020.

"The refinery in Mossel Bay will continue to operate and there is no intention to close it down," said Zono.

As MRC informed earlier, Saudi Aramco, which temporarily lost half of its oil production following the September 14 attacks on two key oil facilities, is running its local refineries at full capacity and is forging ahead with plans to start up new refineries. The company is also starting up a joint venture refinery in Malaysia next year. According to Aramco's bond prospectus released in April, the refining and petrochemical joint venture with Petronas - the Malaysian national oil company - collectively known as PRefChem, was supposed to start this year.

The PRefChem joint venture includes a 300,000 b/d refinery, an integrated steam cracker with capacity to produce 1.3 million mt of ethylene located in Johor, Malaysia. Aramco was supposed to provide a significant portion of PRefChem's crude supply under a long-term supply agreement. Jazan and PrefChem will help Aramco reach a gross refining capacity of 5.6 million b/d, it said in the prospectus. The company currently owns and has stakes in four refineries abroad with a total refining capacity exceeding 2 million b/d.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.

China and US agree to roll back existing tariffs in phases

MOSCOW (MRC) -- After weeks of high-level discussions, the US and China have agreed to simultaneously lift existing trade tariffs on each other’s goods in phases, reported NCT with reference to the Chinese local media.

Chinese media reported that a spokesperson from China’s Ministry of Commerce the leaders of both counties have resolved their core concerns in the past two weeks through constructive discussions.

Quoting the ministry spokesperson, the report said the most important condition for the first phase of the trade agreement was that the both countries must remove the same amount of charges simultaneously.

However, a timeline was not provided at the time of publication.

The US and China, the world’s two biggest economies, have been embroiled in a tit-for-tat tariff war since the start of 2018.