US shale oil output to drop 68,000 bpd to 7.64 mln bpd in Oct

MOSCOW (MRC) -- US oil output, from seven major shale formations, is expected to decline by about 68,000 barrels per day (bpd) in October to 7.64 MM bpd, reported Reuters with reference to the US Energy Information Administration (EIA) said in its monthly productivity report.

That would be the first decline in production since May, according to revised data from the agency.

Output at every formation is expected to fall in October, except the Permian basin of Texas and New Mexico, where production is expected to rise by about 23,000 bpd to 4.17 MM bpd, the data showed. That would be the smallest increase since production declined in May, the data showed.

The biggest decline is expected to come from the Eagle Ford basin in South Texas, where output is expected to fall by nearly 28,000 bpd to 1.13 MM bpd.

US oil prices are still down about 40% from the peak at the start of the year, due to coronavirus demand destruction.

However, US crude futures have gained almost 100% over the past five months to around USD37 a barrel, mostly on hopes global economies and energy demand will snap back as governments lift lockdowns.

Analysts said those higher oil prices have encouraged some energy firms to start adding rigs, an early indicator of future output, in recent weeks.

Separately, the EIA projected US natural gas output would decline for a second month in a row to 80.6 billion cubic feet per day (bcfd) in October.

That would be down over 0.4 bcfd from its forecast for September. Output from the big shale fields hit a monthly all-time high of 86.8 bcfd in November.

Output in Appalachia, the biggest US shale gas formation, was set to slip for a third month in a row in October to 32.8 bcfd, down about 0.2 bcfd from September.

As MRC wrote beofre, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels. Demand for oil will be the biggest casualty over lower energy demand in the coming three decades as weaker economic growth and a faster shift to renewable energy accelerates the demise of oil-based transport fuels, BP said its Energy Outlook 2020 published Sept. 14.

We remind that six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Celanese increases September prices of EVA emulsions in Asia

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced an increase in its September prices of vinyl acetate-based emulsions sold in Asia outside China (AOC), as per the company's press release.

Thus, the company's prices of EVA emulsions rose by USD50/mt for this region, effective September 15, 2020, or as contracts otherwise allow.

The price increases above are for orders shipped immediately, or as contracts otherwise allow, and are incremental to any previously announced rises.

As MRC reported earlier, Celanese also raised its September prices of EVA emulsions for China by CNY300/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.

PP imports to Kazakhstan up by 18% in Jan-July 2020, exports down by 7%

MOSCOW (MRC) -- Polypropylene (PP) imports into Kazakhstan rose in January-July 2020 by 18% year on year, exceeding 25,000 tonnes, whereas PP exports, conversely, decreased by 7%, reported MRC analysts.
July 2020 PP shipments to Kazakhstan fell to 3,300 tonnes from 4,900 tonnes a month earlier, local converters reduced their purchasing of homopolymer of propylene (homopolymer PP) in Uzbekistan and Russia. Overall PP imports exceeded 25,000 tonnes in the first seven months of 2020, compared to 21,300 tonnes a year earlier. At the same time, the forced shutdown for a turnaround at the local producer's production capacities led to lower export sales.

July imports of homopolymer PP and propylene copolymers decreased to 2,800 tonnes and 407 tonnes, respectively, versus over 4,200 tonnes and 613 tonnes a month earlier, local companies significantly reduced their PP purchases from Russian and Uzbek producers. Overall imports of homopolymer PP and propylene copolymers reached 21,000 tonnes and 4,100 tons, respectively, in January-July 2020, compared to 17,100 tonnes and 4,200 tonnes a year earlier.

Kazakhstan exported 11,500 tonnes of PP in the first seven months of 2020, whereas this figure was 12,300 tonnes a year earlier. Such a decrease in exports was caused by the long and forced outage of the local producer - Neftekhim LTD - in late April- June 2020.


Chemplast Sanmar to shut Cuddalore PVC plant for maintenance in late September

MOSCOW (MRC) -- Chemplast Sanmar is likely to undertake a planned shutdown at its Cuddalore polyvinyl chloride (PVC) unit this month, as per Apic-online.

A Polymerupdate source in India informed that the company is likely to start maintenance at the unit on September 27, 2020. The unit is expected to remain off-line for about 4-5 days.

Located in Tamil Nadu, India, the Cuddalore PVC unit has a production capacity of 300,000 mt/year.

As MRC reported earlier, the company last conducted a turnaround at this plant from 22 September, 2019, to 3 October, 2019.

According to MRC's ScanPlast report, Russia's overall PVC production reached 632,500 tonnes in the first seven months of 2020, which, in fact, corresponded to the last year's figure. Two producers managed to increase their PVC output.

Chemplast Sanmar Limited is a chemical company based in Chennai, Tamil Nadu. It is part of Sanmar Group which has businesses in Chemicals, Shipping, Engineering and Metals. It has a turnover of over Rs.65 billion and a presence in some 25 businesses, with manufacturing units spread over numerous locations in India.Chemplast Sanmar's manufacturing facilities are located at Mettur, Panruti, Cuddalore and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory of Puducherry. It is a major manufacturer of PVC resins, chlorochemicals and piping systems. The Cuddalore PVC project commissioned in September 2009 is the largest such project to come up in Tamil Nadu. It's aggregate capacity of 235,000 tons makes it one of the largest PVC players in India.

Sasa Polyester Sanayi began producing PET at new plant in Turkey

MOSCOW (MRC) -- Sasa Polyester Sanayi began producing polyethylene Terephthalate (PET) in Adana, Turkey in mid-September, said Hibya.

Early stage capacity totalled 500 tonnes/day. The new plant can produce PET bottle, film and fibre grades and production will be distributed among the grades depending on the demand from the market. The new plant will have an effective capacity of 120,000 tonnes this year.

As it was written earlier, Sasa Polyester Sanayi signed a licence and technical service agreement with US-based nylon and fibre producer INVISTA, paving the way for the construction of a 1.5m tonne/year purified terephthalic acid (PTA) production facility. The project investment would amount to USD935m.

As per ICIS-MRC Price Report, demand continued to subside in the Russian polyethylene terephthalate (PET) market. Some sellers reported a decrease in spot market activity compared to the beginning of the month. Some Russian factories have free volumes of PET chips. On the other hand, a large PET preform producer reported that he had met its target sales of finished products in the current month and that consumption of finished products was quite high.

SASA, headquartered in Seyhan in Adana province, produces polyester staple fibres, specialty polymers and yarns.Its polyester production capacity at the end of 2019 was 700,000 tonne/year.