Locked-out workers block entrances to Canadas Co-op Refinery

MOSCOW (MRC) -- Locked-out workers at the Co-op Refinery in Regina, Saskatchewan blockaded the facility, halting the movement of workers and trucks, the union and owner said, said Hydrocarbonprocessing.

Federated Cooperatives Ltd (FCL), which owns and operates the refinery, locked out 800 workers on Dec. 5 in a dispute over pensions, but has kept western Canada’s third-largest oil refinery operating with replacement workers and managers.

Unifor, which represents the workers, said that hundreds of union activists had surrounded the refinery, effectively shutting it down.

The lockout comes as western Canadian oil producers in Saskatchewan and Alberta struggle to move crude to U.S. refiners, their main market, due to congested pipelines.

FCL confirmed that blockades at the refinery’s entrances prevented people or trucks from passing in or out and said they violated a court injunction.

Brad DeLorey, a spokesman for FCL, said the actions were causing delays but the refinery remained fully operational.

The Co-op Refinery, which can process 135,000 barrels of oil per day, makes gasoline, propane and asphalt, among other products.

As MRC informed earlier, Russian oil major Rosneft said its oil refineries in the Samara region are increasing their level of environmental monitoring. Kazakhstan on Tuesday reduced oil supplies via the Atasu-Alashankou pipeline to China after tests carried out at the end of the last week showed a high content of organic chloride. Some oil transit from Kazakhstan to Russia goes via a pipeline which has a connection with the Russian pipeline system in the Samara region.

As MRC informed earlier, Rosneft said that its German subsidiary Rosneft Deutschland GmbH had completed the deal to acquire a 3.57% stake in Germany’s Bayernoil Raffineriegesellschaft mbH from BP.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

Lyondell Houston refinery restarts large crude unit

MOSCOW (MRC) -- Lyondell Basell Industries, one of the largest plastics, chemicals and refining companies in the world, restarted the large crude distillation unit (CDU) at its 263,776 barrel-per-day (bpd) Houston refinery on Thursday night, reported Reuters with reference to sources familiar with plant operations.

The 147,000 bpd Unit 537 CDU was shut on Jan. 15 because of clogging of the desalter section of the unit, the sources said.

As MRC wrote previously, LyondellBasell shut down its cracker in La Porte (Texas, USA) on 19 September, 2019, because of the flooding, caused by the tropical storm Imelda. According to the company's statement, this plant, which can produce 1,150,000 tonnes of ethylene per year, was shut last Wednesday when water entered a building containing electrical components and damaged critical process control equipment.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

Formosa to start up its new LDPE plant in Point Comfort in April 2020

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, has reportedly delayed the start-up of its new low density polyethylene (LDPE) unit from February to April, 2020, reported NCT with reference to market sources.

Located in Point Comfort, Texas, the unit has a production capacity of 400,000 tons/year.

The company initially planned to begin operations at its new cracker at the same location and LDPE unit by December 2019 before delaying the schedule for undisclosed reasons.

As MRC wrote before, Formosa has recently started up its new 1.5 million tons/year cracker in Point Comfort, Texas. The company has been ramping up the operating rates of the cracker.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

Sinopec, EIG deliver bid for Petrobras refinery in Minas state

MOSCOW (MRC) -- China’s Sinopec and US-based EIG Global Energy Partners have recently delivered non-binding offers to buy Brazilian refinery REGAP from state-run oil firm Petrobras, reported Reuters with reference to three people with knowledge of the matter.

With a processing capacity of 150,000 barrels per day, REGAP is the fifth-largest refinery of eight up for sale by Petrobras, as part of a plan to raise around USD10 billion to pay debts and sharpen its focus on offshore oil exploration and production.

REGAP in the state of Minas Gerais is the only refinery for sale in southeastern Brazil, the nation’s economic powerhouse and the heart of its oil industry.

The bid marks an entry into the race by Washington-based EIG, as the private equity firm looks to boost its downstream presence in Brazil’s energy industry. Reuters had reported last month that EIG was interested in REGAP.

Sinopec had already delivered a non-binding offer for RLAM, a refinery in the northeastern state of Bahia, which is part of the first block of refineries put up for sale by Petrobras.

Other firms selected for the second round of bidding on that block of refineries are Abu Dhabi’s state investor, plus fuel distributors Ultrapar Participacoes SA and Raizen.

REGAP could offer operational efficiencies for EIG, which owns the Port of Acu in Rio de Janeiro state. Oil received at the port could be transported 500 kms (310 miles) inland to REGAP. EIG also owns a major stake in a Bolivia-Brazil gas pipeline and has bid on other assets divested by Petrobras.

EIG declined to comment. Sinopec did not immediately respond to a Reuters request for comment. Petroleo Brasileiro SA, as Petrobras is formally known, said it would announce any noteworthy developments via public filings.

The buyer of REGAP will also receive pipeline infrastructure connecting it to the region of the REDUC refinery, near Rio de Janeiro city, one of the sources said. Connections from there to nearby seaports, such as Acu, are under study, the source added.

Brazil’s Raizen and Ultrapar Participacoes SA were also eyeing REGAP, but it is not clear if they delivered bids.

As MRC informed before, Sinopec Guangzhou Petrochemical, part of China's petrochemical giant - Sinopec, restarted its cracker in China on December 5, 2019. The cracker was shut for maintenance on October 12, 2019. Located in the Guangzhou province of China, the cracker has an ethylene production capacity of 260,000 mt/year and propylene production capacity of 150,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

China Petroleum & Chemical Corporation or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. Sinopec"s business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.
MRC

ABS imports to Russia drop by 4% in 2019

MOSCOW (MRC) -- Overall imports of acrylonitrile-butadiene-styrene (ABS) to the Russian market decreased in 2019 by 4% year on year to 33,700 tonnes, according to MRC's DataScope report.

This figure was 35,200 tonnes in January-December 2018.


South Korean companies LG Chem and Lotte Advanced accounted for more than half of the country's ABS imports.

Styrolution and Trinseo shipped the bulk of European ABS. The share of their supplies is 23% of the total imports.

ABS imports to Russia continued to decline for the third month in a row. December ABS imports to Russia fell by 26% month on month to 2,400 tonnes from 3,300 tonnes, imports of material into the country were 2,500 tonnes in December 2018.

MRC