Petrobras mulls new USD400 M lubricant plant

MOSCOW (MRC) -- Brazil’s state-controlled oil company Petrobras SA is mulling construction of a new lubricant plant that could quadruple its production capacity by 2022, reported Reuters with reference to the company’s refining chief.

Anelise Lara, Petrobras’ refining and natural gas chief, told Reuters the company will invest about USD400 million to build the new plant in the Comperj refinery, raising its lubricant production capacity to 225,00 cubic meters.

The new Comperj plant will use raw materials from another refinery, Reduc, she added. Both refineries, located in the state of Rio de Janeiro, will be linked by a pipeline.

When the Comperj plant is concluded, Petrobras plans to shut down its lubricant production unit at Reduc.

Lara said the new plant will produce more sustainable and high-quality lubricants, also reducing imports.

As MRC informed previously, the chief executive of Brazilian state-run oil firm Petroleo Brasileiro said on Friday he wants to sell the company's stake in petrochemical company Braskem within 12 months, adding that he strongly disagreed with reported plans to delay the sale.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- ExxonMobil's cracker at Notre Dame de Gravenchon, France, had an "unexpected stoppage" on Friday, 6 December, following a technical failure this October, reported Chemweek.

As reported earlier, an electric fire Saturday morning, 19 October, 2019, on the ExxonMobil facilities in Notre-Dame-de-Gravenchon (Seine Maritime) resulted in a plume of smoke, below the regulatory thresholds, which could remain visible for several days.

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, which has a capacity of more than 800,000 t/y.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Plastik (Uzlovaya), the Russian producer of acrylonitrile-butadiene-styrene (ABS) plastics and suspension polystyrenes (PS), has reduced its December selling prices of expandable polystyrene (EPS) for the Russian market, according to ICIS-MRC Price report.

Thus, the company's prices for December shipments, as well as SIBUR-Khimprom's December prices, dropped to Rb97,000-103,000/tonne, CPT Moscow, including VAT.

As reported earlier, domestic EPS prices have decreased to a minimum for the past five years. Prices were at this level in late 2014-early 2015.

At the same time, demand was either moderate or weak in the Russian EPS market. Some market participants reported a noticeable decrease in activity in the EPS market in the previous weeks.

OJSC "Plastic" (Uzlovaya) specializes in the production of ABS plastics and polystyrene. The plant's complex includes the following production capacities: styrene - 60,000 tonnes/year, EPS - 11,300 tonnes/year and ABS plastics - 23,000 tonne/year. The plant's sales policy is implemented by the Trading House "Plastik".
MRC

MOSCOW (MRC) -- Exports of suspension polyvinyl chloride (SPVC) from Russia totalled 175,600 tonnes in the first eleven months of 2019, up by 22% year on year. Imports increased more significantly - by 230% year on year to 48,500 tonnes, according to MRC's DataScope report.

Last month's exports of Russian suspension (excluding shipments to the countries of the Customs Union ) were 13,900 tonnes, compared to 14,200 tonnes in October. Some producers increased their exports in the past two months due to a seasonal decrease in demand for resin from the domestic market. Thus, overall exports of resin from Russia were 175,600 tonnes in January-November 2019, compared to 144,000 tonnes a year earlier.

Indian buyers were the main foreign importers of Russian resin this year. Overall sales of resin totalled 96,200 tonnes over the stated period. Belarus and Poland with shipments of 24,500 tonnes and 14,500 tonnes, respectively, occupied the second and third positions.

July accounted for the peak of imports of resin, which totalled 13,700 tonnes, because of scheduled shutdowns for maintenance at SayanskKhimPlast and Bashkir Soda Company' production capacities. Seasonal factors have begun to put pressure on polyvinyl chloride imports since September. Last month's SPVC imports were 2,600 tonnes versus 2,900 tonnes a month earlier, with American producers accounting for the main decrease in shipments.

Overall imports totalled 48,500 tonnes over the stated period versus 14,700 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Motiva Chemicals is beginning startup operations at its Port Arthur, Texas cracker, reported S&P Global with reference to the company's statement sent to a Texas Commission on Environmental Quality regulatory filing late Monday.

The company said it will begin startup operations of its Light Olefins Unit, or LOU, on or about December 10 "following the unplanned shutdown of the LOU which occurred on November 25."

The company was not immediately available for comment on operations.

Motiva acquired the previously Flint Hills' cracker on October 31, according to the filing.

The unit has a capacity of 634,000 mt/year, according to S&P Global Platts data. The cracker is a mixed-feed facility that can process ethane, propane, and butane.

In August, 2019, as MRC informed earlier, Motiva Enterprises signed an agreement to buy Flint Hills Resources chemical plant. The deal would extend Saudi Aramco's push to grow its petrochemical operations in Texas and elsewhere.

Moreover, in April 2019, Houston-based Motiva announced it would refurbish two empty, historic buildings in downtown Port Arthur for use as offices. It also has filed documents with the state to build a USD5 billion steam cracker that would produce ethylene.

Besides, the company is evaluating opportunities to build a new polyethylene (PE) line within its proposed steam cracker and aromatics project in Jefferson County, Texas. The new PE capacity will be located at the company’s Port Arthur Refinery Complex in Jefferson County, Texas. The planned capacity of the unit was not specified, while the value of the project is reportedly estimated at around USD3.1 billion.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Motiva Enterprises, LLC, is a fully owned affiliate of Saudi Refining Inc. and headquartered in Houston, Texas, United States with revenue of USD24 billion. Previously, it was a 50–50 joint venture between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining Inc. (controlled by Saudi Aramco).
MRC