Eneos permanently shuts 115,000-bpd Osaka CDU

MOSCOW (MRC) -- Japan’s biggest refiner, Eneos Corp, permanently shut the 115,000 barrels-per-day (bpd) crude distillation unit at its Osaka refinery on September 30 as planned, a company spokeswoman said, said Reuters.

The refiner, which was formerly known as JXTG Nippon Oil & Energy Corp and is now under Eneos Holdings Inc, is shifting its joint venture with PetroChina Co to Eneos’ Chiba refinery after shutting the venture’s Osaka refinery.

Eneos also shut the 127,500 bpd CDU at its Wakayama refinery on Sept. 27 for scheduled maintenance, with a plan to restart in early December, the spokeswoman said.

The company also shut the 120,000 bpd No.1 CDU at its Negishi refinery on Sept. 25, with an aim to resume operations in early November.

As MRC informed earlier, Eneos (formerly JXTG Nippon Oil & Energy), part of Eneos Holding, a major petrochemicals producer in Japan, set its October contract price for benzene in Asia at USD425 per tonne, up USD20 per tonne from the contract price in September. The price has been approved on CFR Asia delivery terms.

Benzene is a raw material for the production of styrene, which, in turn, is the main raw material for the production of polystyrene (PS).

As per ICIS-MRC Price Report, the high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) market
participants in Russia said demand for material remained strong amid its shortage. Large buyers were generally provided with material according to their needs, whereas small ones could not fully meet their needs, as there were no free quantities of Nizhnekamskneftekhim's polystyrene (PS) for injection moulding, extrusion and production of XPS-boards at the beginning of autumn.

Eneos Holding (formerly known as JXTG) is Japan's largest oil company. Its activities include the exploration, import and refining of crude oil; production and sale of petroleum products (ethylene, propylene, butadiene, styrene, paraxylene, orthoxylene, etc.), including fuels and lubricants. In recent years, the company has been expanding its production facilities in other countries. Its products are sold under the ENEOS brand. On June 25, 2020, JXTG, founded in April 2017 after the merger of two Japanese companies, JX Holding and TonenGeneral, changed its name to Eneos Holdings, while its subsidiary JXTG Nippon Oil & Energy changed its name to Eneos.
MRC

ExxonMobil extends relationship into Malaysia

MOSCOW (MRC) -- ExxonMobil Asia Pacific Pte Ltd has appointed Quality Logistics Services Asia (QLSAsia), a wholly owned subsidiary of Quality Logistic Services Australia (QLSA), as its base oil distributor for Malaysia, said Hydrocarbonprocessing.

QLSAsia plans to offer a range of Group I and Group II products including Core 150, Core 2500, EHC 50, EHC 110 and SN500. As a distributor of ExxonMobil base stocks, QLSAsia will adhere to the company’s product integrity systems to ensure product quality and consistency. QLSA has been distributing ExxonMobil base stocks in Australia since 2011.

"We are excited to establish our relationship with QLSAsia to reach a wider range of customers in this important market,” said Vipin Rana, ExxonMobil Asia Pacific Base Stocks and Specialties sales manager.

"The Malaysian market has no local production of API Group I and limited Group II refining capacity,” said QLSAsia’s general manager Ken Chua. “With this appointment, QLSAsia will hold inventory of ExxonMobil basestocks in Malaysia and supply via tank truck to Malaysian blenders. Malaysian blenders will have access to responsive and transparent customer service, supply chain and technical capability from the ExxonMobil and QLSA relationship."

As MRC informed earlier, ExxonMobil Chemical, is in plans to bring on-stream its polypropylene (PP) plant following turnaround. The company is likely to complete maintenance at the plant by end-October, 2020. The plant was shut for maintenance in mid-September, 2020. Located at Singapore, the PP plant has a production capacity of 500,000 mt/year.

According to MRC's ScanPlast report, Russia's 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.

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

Founder of major Singapore fuel supplier charged in Shell oil heist case

MOSCOW (MRC) -- The founder of one of Singapore's biggest marine fuel suppliers has been charged for his involvement in a large-scale oil theft from Shell's refinery in the city-state, according to a charge sheet, said Reuters.

Pai Keng Pheng, the founder and managing director of Sentek Marine & Trading, was accused on Thursday of conspiring to dishonestly receive stolen property in a charge issued by the police's organized crime branch. Sentek and Shell employees and other third parties have been previously charged for their role in the theft, first uncovered in 2017.

In total, about USD150 million of oil was stolen over several years from the refinery, which is situated on one of Singapore's southern islands and is Shell's largest globally. Singapore is the world's biggest ship refueling station and Southeast Asia's petroleum refining hub, but the local industry has been rocked by a series of scandals in recent years including the high profile collapse of oil trading firm Hin Leong.

Pai, 57, could not be immediately reached by telephone or email for comment. Reuters was not immediately able to identify any legal representative for Pai. Sentek did not respond to a request for comment. Sentek was listed as Singapore's second largest bunker supplier by volume in 2019, according to Singapore's port authority.

As MRC informed earlier, Shell says it will cut up to 9,000 jobs worldwide as part of a major restructuring that will enable cost savings of USD2.0–2.5 billion per year by 2022, while outlining plans to grow its chemicals business and further integrate it with a more streamlined downstream refining business.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

COVID-19 - News digest as of 02.10.2020

1. Bayer to introduce further cost-saving measures, confirms 2020 outlook

MOSCOW (MRC) -- Bayer has provided a business update confirming its adjusted outlook for 2020, and says it expects 2021 sales to be at approximately the same levels as in 2020 despite significant headwinds from the COVID-19 pandemic, especially in the agricultural market, said Chemweek. As a result, the company’s board has decided to introduce additional operational savings that may lead to more job cuts. Bayer says it also plans to optimize further its working capital and capital expenditure and is reviewing options to exit nonstrategic businesses or brands that are below the divisional level, it says.


MRC

Kaustik Volgograd shut PVC production

MOSCOW (MRC) -- Volgograd Kaustik, Russia's fourth largest polyvinyl chloride (PVC) producer, shut down production of polyvinyl chloride (PVC) for a scheduled turnaround, according to ICIS-MRC Price Report.

According to a company representative, scheduled maintenance works started at PVC production on 1 October.
The shutdown will be short and will last for about 12 days. The plant's PVC production capacity is 90,000 tonnes/year.

As it was earlier said, the largest Russian PVC producers SayanskKhimPlast and RusVinyl, whose annual capacity is 350,000/tonnes and 330,000/tonnes , respectively, stopped their lines for maintenances in July-August.

PVC production at Volgograd Kaustik was launched in December 1972 with the assistance of the Japanese firm Kureh's specialists. Nikokhim Group is one of the leaders of the Russian chemical industry, the main production assets of which are located in the southern industrial hub of Volgograd. The holding company includes: JSC Kaustik is the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC NikoMag - production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Zirax, Ltd. - production of high-purity reagents for various industries and JSC Poligran - the production of plastic compounds and rigid PVC compounds.
MRC