Exxon Baton Rouge, Louisiana refinery restarting after February fire

MOSCOW (MRC) -- Exxon Mobil Corp restarted the largest crude distillation unit (CDU) at its 502,500 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery for the first time since a Feb. 12 fire, reported Reuters with reference to sources familiar with plant operations.

Exxon began restarting the second-largest CDU at the Baton Rouge refinery on Monday, the sources said. The Feb. 12 fire knocked out the natural gas supply that fuels the boilers on the refinery’s four CDUs.

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 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

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) -- Exxon Mobil Corp plans to begin restarting its 502,500 barrel-per-day Baton Rouge, Louisiana, refinery as early as Friday with the largest crude distillation unit (CDU), said sources familiar with plant operations, said Hydrocarbonprocessing.

The 210,000 bpd PSLA-10 CDU has been shut along with most units at the refinery since a Feb. 12 natural gas pipeline fire, the sources said. The pipeline supplied natural gas to the refinery’s four CDUs.

The CDUs do the primary breakdown of crude oil into the hydrocarbon feedstocks, from which motor fuels like gasoline and diesel and plastics are made in other production units at the refinery. Restarting PSLA 10 has been a top goal with for Exxon since the fire, the sources said. Restart efforts depend on restoring the natural gas feed to the unit.

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 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

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) -- Last year's imports of expandable polystyrene (EPS) into Kazakhstan grew by 10% year on year, totalling 7,310 tonnes, according to MRC's DataScope report.

December 2019 EPS imports into the country rose by 37% year on year to 525 tonnes from 383 tonnes a year earlier. Imports of material to Kazakhstan were 537 tonnes in November 2019.

Russia and China were the main importing countries of EPS to Kazakhstan.

Thus, imports of Russian material to the Kazakh market fell in 2019 by 17% year on year: from 5,990 tonnes in January-December 2018 to 4,960 tonnes. Last year's share of EPS imports from Russia in the total shipments to the country slumped to 68% from 90% a year earlier.

December 2019 shipments of Russian EPS to Kazakhstan were 285 tonnes versus 467 tonnes in November, whereas imports of material were 313 tonnes in December 2018.

And shipments of Chinese material almost quadrupled last year: from 610 tonnes to 2,290 tonnes. The share of Chinese companies in the overall EPS imports to the country grew sharply in 2019 to 31% from 9% a year earlier.

December 2019 EPS shipments from China to Kazakhstan grew significantly to 240 tonnes from 69 tonnes a month earlier, whereas imports of Chinese material were 70 tonnes in December 2018.

MRC

MOSCOW (MRC) -- Motiva Enterprises, the US refining arm of Saudi Aramco, shut the small crude distillation unit (CDU) at its 607,000-barrel-per-day (bpd) Port Arthur, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

The 80,000-bpd VPS-2 CDU began coming down on Tuesday morning, the sources said. VPS-2 is the smallest of three CDUs that do the primary breakdown of crude oil into feedstocks for all other production units at the refinery.

Motiva declined on Tuesday to discuss the status of individual units at the refinery.

As MRC informed earlier, Motiva 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.

Besides, in late 2019, Motiva Enterprises acquired 100% of Flint Hills Resources chemical plant, adjacent to its Port Arthur, Texas, oil refinery. The Flint Hills plant operates a 1.57 billion-pound-per-year ethylene cracker, a unit producing nylon component cyclohexane, and a network of pipelines and storage caverns. Saudi Aramco, in its IPO prospectus, said the cash payment will be determined as per the project value at SAR 7.13 billion (USD1.9 billion).

Ethylene and propylene are feedstocks for producing 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.

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

MOSCOW (MRC) -- Huntsman reports fourth-quarter net income of USD308 million, swinging from a loss of USD315 million in the year-ago period, according to Chemweek.

Adjusted net income came to USD65 million, down 28% year over year (YOY) from USD90 million. Sales totaled USD1.657 billion, down 9% YOY from USD1.821 billion. Volume declined in all segments except polyurethanes, while pricing declined in all segments except advanced materials.

Adjusted earnings per share of 29 cents/share matched the average analyst estimate as compiled by Refinitiv (New York).

"Heading into 2020 we remain focused on what we can control, which will include investing both organically and through acquisitions into our downstream and specialty platforms, and being balanced in our approach to capital allocation, including maintaining a competitive dividend and ongoing opportunistic share repurchases,” says Peter R. Huntsman, chairman, president, and CEO.

Huntsman expects continued demand headwinds for polyurethanes, but growth in insulation, particularly spray foams. Industrial markets for advanced materials will remain weak. In the performance products segment, amines volumes will continue to grow, although demand for maleic acid will remain soft. The company also expects stable volume in textile effects, with continued growth for specialty products.

The polyurethanes segment recorded revenue of USD980 million, down 3% YOY, and adjusted EBITDA of USD122 million, down 13%. Lower average selling prices for methylene di-para-phenylene isocyanate (MDI), mainly in China and Europe, were partially offset by higher volumes in most major markets.

Revenue in performance products totaled USD278 million, down 10% YOY, and adjusted EBITDA was USD43 million, up 10%. Weaker market conditions pulled down both sales volumes and average selling prices, which also reflected lower raw material costs. Profitability increased owing to lower fixed costs and the acquisition of Sasol’s half of their German maleic anhydride joint venture.

The advanced materials segment reported revenue of USD241 million, down 9% YOY, and adjusted EBITDA of USD42 million, down 13%. The economic slowdown and customer destocking pulled down volumes in most markets, says Huntsman. Average selling prices were stable locally, but the US dollar was stronger YOY.

Revenue in the textile effects segment declined 7% YOY to USD180 million, and adjusted EBITDA declined 14% to USD18 million. Volume declined as trade uncertainty cut into demand, says the company, and average selling price declined in line with market prices.

As MRC reported earlier, in January 2020, Indorama Ventures Public Company Limited (IVL), a global chemical producer, completed its acquisition of Huntsman’s world-class integrated oxides and derivative businesses, including a large flagship site on the US Gulf Coast (USGC) at Port Neches, as well as Chocolate Bayou and Dayton in Texas, Ankleshwar in India, and Botany in Australia, as per IVL's press release.

The acquisition is a profitable and growing end applications business along with unique products and geographical profile among the crowded olefins space. It has a well-integrated assets base with an extensive infrastructure and future expansion possibilities. The area is adjacent to many USGC feedstock suppliers. The cash value of USD2.0 billion makes it the largest acquisition by Indorama Ventures ever and now our capital employed is nicely spread over plastic, chemicals and fibers. The transaction value translates to an EV/EBITDA of ~5.7x and is expected to add substantial synergies to Indorama’s existing 450kta Ethane/Propane Cracker and our 550kta EO/EG. IVL will now be integrated from Ethane to PET as well as the high-margin EO and PO derivative businesses.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than USD8 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within its four distinct business divisions.
MRC