PP imports to Belarus up 8.3% in Jan-Sep 2019

MOSCOW (MRC) -- Overall imports of polypropylene (PP) to Belarus rose in the first nine months of 2019 by 8.3% year on year, totalling 81,500 tonnes. All grades of propylene polymers accounted for the increase in demand, according to a MRC's DataScope report.


PP imports into Belarus were about 8,000 tonnes in September 2019 versus 9,000 tonnes a month earlier, local companies reduced their purchasing of homopolymer of propylene (homopolymer PP), whereas demand for propylene copolymers increased. Overall imports of propylene polymers exceeded 81,500 tonnes in January-September 2019, compared to 75,300 tonnes a year earlier, demand increased for all PP grades, with propylene copolymers accounting for the greatest rise.

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


September imports of homopolymer PP reached 5,200 tonnes, compared to 6,500 tonnes a month earlier, purchasing of homopolymer PP in Russia decreased because of shutdowns for maintnenance at the local plants. Overall imports of homopolymer PP reached 54,700 tonnes in January-September 2019, up by 6.6% year on year. Russian producers with the share of about 85% of the total shipments were the key suppliers.

Septmeber imports of propylene copolymers to Belarus were 2,800 tonnes versus 2,400 tonnes a month earlier, local companies increased their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Middle Eastern producers. Thus, overall imports of propylene copolymers reached 26,800 tonnes over the stated period, up by 12% year on year.

MRC

US propane and propylene stocks fall, exports rise

MOSCOW (MRC) -- US propane and propylene stocks fell by 3.5 million bbl to a total combined inventory of 94.2 million bbl for the week ended 15 November, as per Chemweek.

Propylene inventories increased by 400,000 bbl week over week (WOW) to 5.1 million bbl, according to the US Department of Energy. A survey of analysts and traders forecast an average propane and propylene stock draw of 1.87 million bbl, according to OPIS, an IHS Markit company.

Products supplied for propane and propylene decreased this week by 90,000 b/d on the week to 1.39 million b/d. Propane and propylene imports WOW rose 15,000 b/d to 137,000 b/d. Exports increased by 251,000 b/d to 1.36 million b/d.

US inventories are up 15.2% over the year-ago period.

Propylene is a feedstock for the production of polyprolypele (PP).

According to MRC's ScanPlast report, 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.
MRC

RIL plans to invest Rs 70,000 crore for setting up crude-to-chemical projects at Jamnagar

MOSCOW (MRC) -- Mukesh Ambani-led Reliance Industries (RIL) plans to invest Rs 70,000 crore for setting up crude-to-chemical projects adjacent to the existing Jamnagar site, an integrated petroleum refinery and petrochemical complex, as part of its oil-to-chemical strategy, reported EconomicTimes with reference to the company's statement in an application to the environment ministry.

"Aligned to the national Make-in-India objective, RIL plans to optimally leverage the Jamnagar refinery + gasification assets, as a future growth platform, to maximize petrochemicals, termed as crude-to-chemicals. For setting up the crude-to-chemical growth projects in Jamnagar, RIL proposes to develop a total area of 2,000 acres adjacent to the existing Jamnagar supersite," the company said as part of the application.

RIL plans to undertake setting-up a host of oil-to-chemical units including multi-feed steam cracker to maximize chemical monomers, setting-up of Multizone Catalytic Cracking units for conversion of feedstock to high value propylene and ethylene, converting existing fluid catalytic cracking units to Petro FCC for maximizing production of olefins and aromatics instead of gasoline.

The company also said it plans to set-up aromatic complex along with chemical complexes to produce streams of C1, C2, C3, C4 and C6 chemicals.

Saudi Aramco, the world's largest oil producer, earlier this year announced its decision to invest USD75 billion to pick up a 20 per cent stake in RIL’s oil-to-chemical business. The partnership will cover all of RIL's refining and petrochemicals assets, including 51 per cent of the petroleum retail Joint Venture. Aramco will supply up to 500,000 barrels per day of crude oil on a long-term basis to the Jamnagar refinery.

As part of RIL’s strategy to stay ahead of the curve amid a shift towards renewable energy and electric mobility the company plans to transform the Jamnagar refinery from a primary producer of fuels to chemicals. The Jamnagar refinery, at the culmination of the oil-to-chemical transition, will only produce jet fuel and petrochemicals, according to the company.

"All refined products priced below crude shall be eliminated for chemicals at initial stage. Final fuel de-risking shall target elimination of gasoline, alkylate and diesel, synchronised to the global evolution of E-mobility and transport fuel demand decline," RIL had said in its 2018-2019 annual report.

The company aims to achieve over 70 per cent conversion of crude oil in Jamnagar to olefins and aromatics. RIL’s petrochemical production during the second quarter ended September increased to 9.9 Million Tonne (MT) from 9.4 MT in the corresponding quarter last year.

The company’s market value briefly surpassed BP for the first time at the end of last month and it has now regained the lead over the British company after its shares hit a fresh high in Mumbai on Wednesday. RIL's market capitalisation today edged closer to Rs 10 lakh crore mark, a first for any Indian company.

As MRC informed earlier, in 2017, Reliance Industries conducted maintenance works at its cracker in Hazira (India) from March 24 to end-April. Located at Hazira near Surat in Gujarat, the cracker has a production capacity of 1.1 mmt/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 1,589,580 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.

Reliance Industries is one of the world's largest producers of polymers. The company is engaged in a wide range of activities, ranging from oil and gas production to production of polyester and polymer goods, including the production of polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and textiles.
MRC

Petronas sees commercial production this year at refinery

MOSCOW (MRC) -- State oil company Petronas said its massive refinery and petrochemicals complex in southern Malaysia, a USD27-billion joint venture with Saudi Aramco, will start commercial operations as planned by the end of the year, dismissing a report of a delay, reported Reuters.

The refinery’s atmospheric residue desulphurization (ARDS) unit, hit by a fire in April, will begin operation by mid-2020, Petronas said in an email late on Wednesday.

"Petronas would like to clarify that its Pengerang Integrated Complex is in the middle of start-up activities and expected, as planned, to be in commercial operations by end of 2019," it told Reuters.

Last week, Platts said the fire had delayed commissioning of Pengerang Refining and Petrochemical (PRefChem), a part of the complex, to the second half of 2020, citing Aramco’s comments in its prospectus for an initial public offering.

The project had been shut in April after fire damaged the atmospheric residue desulphurization unit.

It consists of a 300,000 barrels-per-day (bpd) oil refinery and a petrochemical complex with annual production capacity of 7.7 million tonnes.

As MRC informed earlier, in the first week of November, Saudi Aramco approached Malaysian state energy company Petronas to participate in Aramco’s IPO, Petronas said, as the Middle Eastern oil giant seeks cornerstone investors for the listing.

Besides, we remind that 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.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

ExxonMobil urges Nigeria to end oil sector uncertainty to bolster production

MOSCOW (MRC) -- The Nigerian government needs to end the air of uncertainty around the country's oil sector to attract much-needed investment that will bolster production, reported S&P Global with reference to ExxonMobil's statement.

The two critical Nigerian oil sector needs are certainty and business competitiveness, Paul McGrath, chairman and managing director of the ExxonMobil Nigeria producing unit, said during a meeting in Abuja with Nigeria's oil minister, Timipre Sylva, according to an oil ministry statement.

"There is nobody who doesn't want to invest in Nigeria," McGrath said.

The ExxonMobil executive, who also is chairman of the Oil Producers Trade Section, the umbrella body for oil companies operating in Nigeria, said he hoped the Nigerian oil minister would make these two critical factors priorities.

Oil companies have strongly opposed Nigeria's plans to increase taxes on its deepwater oil production after Nigeria amended the fiscal terms for existing production-sharing contracts.

That decision came as other producers in the region sweetened their fiscal terms to attract foreign investment to the beleaguered oil sector.

Angola recently improved fiscal terms for some oil contracts, giving international oil companies higher returns and opening up offshore and onshore basins.

Sylva said the amendment to the production-sharing law was "deemed necessary in recognition of the current realities in the sector."

Group managing director of state-owned Nigerian National Petroleum Corporation Mele Kyari said earlier Tuesday in Lagos that Nigeria needs the help of international oil companies to raise exploration activities if it is to increase production to its target of 3 million b/d by 2023.

Kyari said Nigeria would still hold talks with oil companies on new fiscal terms for oil exploration after recent amendments to the law.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant (UK), which has a capacity of more than 800,000 t/y.

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.

PBF Energy Inc. is a petroleum refiner and supplier of unbranded transportation fuels, heating oils, lubricants, petrochemical feedstocks, and other petroleum products. Headquartered in Parsippany, New Jersey, the company's refineries include facilities in Chalmette, Louisiana, Toledo, Ohio, Port of Paulsboro in Gibbstown, New Jersey, the Delaware City Refinery in Delaware City, and the former ExxonMobil refinery in Torrance, California. PBF produces a range of products including gasoline, ultra-low-sulfur diesel (ULSD), heating oil, jet fuel, lubricants, petrochemicals and asphalt.
MRC