BP to shut two Azerbaijan oil and gas platforms for maintenance in 2020

MOSCOW (MRC) -- British oil major BP plans to close down two of its oil and gas platforms in Azerbaijan for planned maintenance next year, BP’s regional vice president told Reuters.

Bakhtiyar Aslanbayli, BP’s vice president for Azerbaijan, Georgia and Turkey, said the maintenance would take place in the second half of 2020.

He said that maintenance shutdowns would take place at Chirag and Shah Deniz-Alfa platforms.

A BP-led consortium produces oil at Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfield and natural gas - at the major Shah Deniz field.

The Shah Deniz I field has been pumping gas since 2006, while output from Shah Deniz II is expected to reach 16 billion cubic meters (bcm) of natural gas per year, with 10 bcm earmarked for Europe and 6 bcm for Turkey.

Aslanbayli said the consortium planned to produce 16.6 bcm of gas at Shah Deniz this year.

"Gas output will be rising, while oil production will be declining as expected," he said, adding that peak gas output would be in 2022-2023.

He said seismic works at bloc D-220 as well as drilling the first exploration well at the Shafag-Asiman gas field had been postponed to January next year due to bad weather conditions. Drilling will take 12-13 months.

As MRC reported earlier, in December 2019, several companies announced the formation of a new consortium that aims to address the problem of plastic waste by speeding up the commercialization of BP Infinia enhanced recycling technology that was developed by London-based BP. Businesses involved in the partnership include those that manufacture, use, collect and recycle polyethylene terephthalate (PET) plastic packaging. BP Infinia is designed to turn opaque and hard-to-recycle PET plastic scrap into recyclable feedstocks that can be used to make high-quality PET packaging with no loss in quality, according to BP.

According to MRC's ScanPlast report, Russia's overall estimated PET consumption reached 42,020 tonnes in October 2019, down by 32% year on year. PET consumption in Russia increased to 593,480 tonnes in January-October 2019, up by 5% year on year.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

Russian industrial enterprises actively contributing to Gazproms goals

MOSCOW (MRC) -- The Gazprom Board of Directors took note of the information about the engagement of Russian industrial and machine-building enterprises in the implementation of the Company's strategic goals, said the company.

Gazprom is actively employing various organizational mechanisms to enhance its cooperation with domestic enterprises. These mechanisms include long-term contracts with manufacturers for batch production, supply and maintenance of hi-tech equipment; roadmaps signed with Russian regions to increase involvement of local enterprises; agreements and cooperation programs with leading metal and pipe companies, state-run corporations and the military-industrial complex. In total, Gazprom signed more than 60 instruments of this kind.

It was pointed out at the meeting that the systematic steps Gazprom has made in this direction are producing comprehensive results. The Company is further improving its operational efficiency: the economic effect from the import-substituting technologies, equipment and materials applied at the Gazprom Group's facilities in 2016–2018 is estimated at RUB 20.7 billion. In addition to that, the investments made by Russian companies in upgrading and creating new production facilities have already reached RUB 17.8 billion under long-term contracts with Gazprom alone.

Among the results of the steps taken is the creation of the first domestic equipment prototypes for subsea hydrocarbon production systems through joint efforts of Gazprom, the Russian Ministry of Industry and Trade, research institutes and machine-building enterprises. A full range of the key equipment for operating offshore fields was presented at the St. Petersburg International Gas Forum in October 2019.

As MRC informed earlier, Gazprom and Sinopec discuss potential avenues for cooperation. A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Li Yong, Vice President of China Petrochemical Corporation (Sinopec Group), took place in St. Petersburg. The parties discussed their potential areas of cooperation.

As MRC informed earlier, Gazprom Neft and the Abu Dhabi National Oil Company (ADNOC) have entered into a Framework Agreement on Strategic Cooperation. The companies will explore opportunities for implementing joint projects in the upstream and downstream sectors, as well as in information technologies, artificial intelligence, and other areas.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 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.
MRC

Zhejiang Petrochemical to receive commercial production at its new cracker and to start up its PP, PE plants soon

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd is planning to start up its ethylene cracker within these two days and if everything goes smooth, its polyolefin plants will be starting up soon, reported Commoplast with reference.

Based in Zhejiang, China, the cracker is able to produce 1.4 million tons/year of ethylene.

Market sources reported that one of its polypropylene (PP) plant with capacity of 450,000 tons/year will startup by 30 December 2019, followed by another line with same capacity by 15 January 2020.

Meanwhile its 450,000 tons/year of lienar low density polyethylene (LLDPE) and 300,000 tons/year of high density polyethylene (HDPE) will startup around similar time with PP plants.

As MRC informed earlier, China's greenfield Zhejiang Petrochemical will use a range of process technology from Honeywell UOP for the second phase of its integrated refining and petrochemical complex in Zhoushan, Zhejiang province, according to a document, quoting a senior Honeywell official. "This second phase of the complex by itself will process 20 million tons per year of crude oil and produce another six million tons per year of aromatics when completed," Bryan Glover, vice president and general manager, Process Technology and Equipment, at Honeywell UOP, stated in the document as of January 2019.

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

European producers intend to at least roll over December PVC prices for January

MOSCOW (MRC) -- Negotiations over January shipments of suspension polyvinyl chloride (SPVC) began in the Russian market on Wednesday. Most producers announced a roll-over of December prices for next month, according to ICIS-MRC Price report.

Traditionally, many converters announced a decrease in PVC purchasing in January partially because of long holidays in the first half of the month. The current appreciation of the rouble against the dollar also made imported material more affordable for Russian consumers. However, Russian producers do not intend to reduce next month's PVC prices, and a producer does not rule out a price increase of Rb1,000/tonne.

The Russian rouble strengthened perceptibly against the dollar and the euro in the second half of December. And this factor made imported PVC attractive for purchases. Some converters considered the possibility of meeting some of their needs in January due to imports. But these cases were rare, and there has been no talking about bulk purchasing so far.

December was a rather successful month for Russian producers regarding PVC sales in the domestic market. All deals for December deliveries were done in the first half of the month, and some converters reported slight restrictions on shipments of resin. Thus, most producers are entering the year of 2020 with optimal warehouse inventories, and producers do not experience any pressure amid weaker January demand for PVC from the domestic market.

Mass shutdowns for scheduled maintenance works at most converters' production capacities began this week. Some consumers will have them until the second decade of January, a small part of converters still intends to remain idle until the third decade of January. Outages for turnarounds at converters' production capacities will affect the volume of PVC purchasing.

Overall, deals for January shipments of Russian resin with K=64/67 PVC were negotiated in the range of Rb71,000-74,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes. Resin with K=70 was offered by Rb1,000-2,000/tonnes more expensive.
MRC

Lubrizol restarts the Rouen factory after fire

MOSCOW (MRC) -- The Lubrizol factory in Rouen "restarted during the night from Friday to Saturday (14 December)," said Frederic Henry, president of Lubrizol France, on France Bleu Seine maritime/Eure, less than three months after the fire that hit this site, reported EN24.

The prefecture had given the green light on 13 December for this partial reopening, "limited to two small mixing and solubilization units, not involving a chemical reaction".

Shortly before the prefectural decree was published, Lubrizol France’s general manager Isabelle Striga said Friday that production could resume the next day. Lubrizol has on its site "put a fence that allows us to clean the site for the next few months and meanwhile continue to make mixtures," added Frederic Henry on Monday. The palisade "separates the factory in two pieces, that is to say the warehouse that burned, and 90% of the site that did not burn at all, where this production restarted this weekend" , said the president of Lubrizol France. On Friday, the prefecture said there were "900 drums to be removed" from the site, including "around 70 with some sensitivity."

Lubrizol still believes that the fire did not start from its site. "There are a lot of things that tell us that it did not start from home and that a huge energy came to us," said Frederic Henry on France Bleu. Asked about a complete restart of the factory, the president of Lubrizol France replied: "To see. No doubt it will be in stages. For the moment that is not the subject. We have to leave a little time to see how the orders arrive if the orders arrive correctly think maybe of opening another unit. "The viability of the Rouen site was compromised from mid-November. Every day that passed, we lost customers who went to see elsewhere. So it was very important to restart as soon as possible", he added.

As MRC wrote previously, in August 2015, S and L Specialty Polymers Co., a joint venture of Sekisui Chemicals (51%) and Lubrizol Advanced Materials (49%), started up its new chlorinated polyvinyl chloride (CPVC) plant on the Hemaraj Eastern Industrial Estate in Map Ta Phut, Thailand. The plant, built at a cost of about USD 50-million, has the capacity to produce 30,000 t/y of CPVC. The venture plans to increase capacity to 40,000 t/y in 2016, and possibly to 60,000 t/y in the future.

According to MRC's DataScope report, 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 into the country increased more significantly - by 230% year on year to 48,500 tonnes.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers" high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC