Russia invites other BRICS countries to take part in Arctic oil and gas projects

MOSCOW (MRC) -- Russian Energy minister Alexander Novak said he had invited other BRICS countries - Brazil, India, China and South Africa - to take part in joint oil and gas projects in the Arctic, reported Reuters.

In a speech at a meeting of energy ministers from the group of major emerging economies, Novak added that the recovery on global energy markets would be slow in the wake of the second wave of the coronavirus pandemic.

As MRC informed earlier, Russian oil pipeline monopoly Transneft and producer Rosneft have reached a settlement with Total over dirty oil supplies to the French company’s Leune refinery in Germany, Transneft said. Up to 5 MM tons of Russian oil in route to central Europe via the Druzhba pipeline were found to be contaminated last year. Total declared a force majeure in June 2019 on the production of jet fuel at its Leuna refinery in Germany following the supply of contaminated crude from Russia. Transneft did not disclose how much compensation would be paid to Total.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Kemira has provided a brief business update and says that based on preliminary and unaudited information, the company's revenue in the third quarter was approximately EUR597 million (USD704 million) and operative EBITDA EUR113 million, said Chemweek.

In the second quarter of 2020, the company's revenue was EUR582.9 million, down 12% on a year-on-year basis.

Following the developments in the third quarter, Kemira has updated its outlook and still expects, in line with its previous guidance announced in July, that its operative EBITDA in the second half of 2020 will be lower than the EUR214 million recorded in the first half of the year, but it now expects full-year operative EBITDA to increase from the EUR410 million posted in 2019.

Kemira will announce third-quarter results on 27 October.

As MRC informed earlier, Kemira has signed a multiyear extension of its polymer supply agreement with Ithaca Energy. Kemira says it has signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

Ethylene and propylene are feedstocks for producing 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.
MRC

MOSCOW (MRC) -- The European Commission today adopted the EU's chemicals strategy for sustainability, describing it as the first step towards a zero-pollution ambition for a toxic-free environment announced in the European Green Deal, reported Chemweek.

The strategy includes actions that prohibit the use of the most harmful chemicals in consumer products such as toys, childcare articles, cosmetics, detergents, food contact materials, and textiles, unless proven essential for society, and ensures that all chemicals are used more safely and sustainably, the Commission says.

The strategy sets out concrete actions to make chemicals safe and sustainable by design, and to ensure that chemicals can deliver their benefits without harming the planet, and both current and future generations, according to the Commission. Several innovation and investment actions "will be foreseen to accompany the chemicals industry through this transition," it says, although no further details were provided. The strategy also draws the attention of EU member states to the possibilities of the Recovery and Resilience Facility to invest in the green and digital transition of EU industries, including in the chemical sector, according to the Commission.

“We owe our well-being and high living standards to the many useful chemicals that people have invented over the past 100 years. However, we cannot close our eyes to the harm that hazardous chemicals pose to our environment and health. We have come a long way regulating chemicals in the EU, and with this strategy we want to build on our achievements and go further to prevent the most dangerous chemicals from entering into the environment and our bodies, and affecting especially the most fragile and vulnerable ones,” says Virginijus Sinkevicius, Commissioner for the Environment, Oceans and Fisheries.

Some of the main initiatives of the strategy that aim to increase the protection of human health and the environment from harmful chemicals include the phasing out from consumer products of the most harmful substances, such as endocrine disruptors, chemicals that affect the immune and respiratory systems, and persistent substances such as per- and polyfluoroalkyl substances (PFAS), unless their use is proven essential for society. Others include minimizing and substituting as far possible the presence of substances of concern in all products; addressing the combination effect of chemicals (cocktail effect); and ensuring that producers and consumers have access to information on chemical content and safe use.

The actions announced in the strategy will support industrial innovation so that safer and more sustainable chemicals become the norm on the EU market and a benchmark worldwide, the Commission says. It aims to capture the economic opportunity that arises with this and enable the green transition of the chemicals sector and its value chains, it says.

Actions within the strategy that aim to boost innovation and promote the EU's competitiveness worldwide include developing safe-and-sustainable-by-design criteria and ensuring financial support for the commercialization and uptake of safe and sustainable chemicals; ensuring the development and uptake of safe and sustainable-by-design substances, materials and products through EU funding and investment instruments and public-private partnerships; and stepping up enforcement of EU rules considerably at the borders and in the single market. Others include putting in place an EU research and innovation agenda for chemicals, and simplifying and consolidating the EU legal framework.

The Commission says that it will promote safety and sustainability standards globally, lead by example, and promote a coherent approach so that hazardous substances banned in the EU are not produced for export.

The adoption by the Commission today is in line with the European Parliament’s call on the Commission in July to come up with a strategy that effectively ensures health and the environment are well protected by minimizing exposure to hazardous chemicals, and includes measures to protect vulnerable groups such as children, pregnant and breastfeeding women, and the elderly.

As MRC informed before, in mid-July, 2020, The European Commission approved PKN Orlen’s acquisition of Grupa Loto,. The approval is conditional on full compliance with a commitments package offered by PKN Orlen.

We remind that n H1 September 2019, Honeywell announced that PKN ORLEN had licensed the UOP MaxEne process, which can increase production of ethylene and aromatics and improve the flexibility of gasoline production. The project, for the PKN Orlen facility in Plock, Poland, currently is in the basic engineering stage. Honeywell UOP, a leading provider of technologies for the oil and gas industry, first commercialized the UOP MaxEne process in 2013. The process enables refiners and petrochemical producers to direct molecules within the naphtha feed to the processes that deliver the greatest value and improve yields of fuels and petrochemicals.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- BASF is planning to restart its 300,000-metric ton/year toluene diisocyanate (TDI) plant in Ludwigshafen, Germany, by the end of October, according to sources. The company declared force majeure on 31 August after experiencing technical problems, it stated at the time, said Chemweek.

BASF has tried to restart the plant since then, but its efforts were unsuccessful. “They will make another restart attempt in two to three days,” says a market source. The company had planned three months of maintenance at the TDI plant this year, but postponed it to March 2021, citing the impact of COVID-19 as the main reason, the sources say. “The force majeure at our TDI plant in Ludwigshafen is still in place,” a BASF spokeswoman tells OPIS.

The force majeure at Ludwigshafen has exacerbated tightness in the global TDI market, according to James Elliott, principal analyst/polyurethane feedstocks at IHS Markit. This has not only been driven by supply-side issues but also demand has been particularly strong during the third quarter. Early indications for the fourth quarter are that offtake continues to strengthen, says Elliott.

BASF started operations at the Ludwigshafen TDI plant in November 2015 after investing more than €1 billion ($1.17 billion) to build it. Since then, it has not consistently operated at optimal rates at the site, encountering different production and technical issues which have caused delays and shutdowns, according to Elliott. The company stopped producing TDI at its 80,000-metric tons/year Schwarzheide facility, based in southern Germany, in April this year.

The COVID-19 pandemic and associated lockdowns led to a collapse in TDI demand during the second quarter as consumer spending on flexible polyurethane foam goods dropped, with total European demand plunging as much as 80% in April. Flexible polyurethane foam is mainly used in mattresses and furniture in western Europe.

BASF is due to release third-quarter results on 28 October 2020 and full-year results on 26 February 2021.

As MRC reported earlier, COVID-19 occurred at an already challenging time for the petrochemical industry and has required it to take some drastic actions, said the leaders of the worldпїЅs two biggest chemical companies, BASF and Dow, on Monday at the 54th European Petrochemical Association (EPCA) annual meeting, which is taking place in a virtual format. The pandemic has also accelerated key industry trends, particularly those around sustainability and the environment, they said.

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.
MRC

1. Crude oil futures maintain overnight losses on fear of supply glut

MOSCOW (MRC) -- Crude oil futures were steady during mid-morning Asian trade Oct 13, maintaining overnight losses, as production capacity in the US Gulf of Mexico started to come back online, heightening concerns of a supply glut amid an unimproved demand outlook, reported S&P Global. At 10.25 am Singapore time (0225 GMT) ICE Brent December crude futures were up 1 cent/b (0.02 %) from the Oct. 12 settle to USD41.74/b, while the NYMEX November light sweet crude contract was up 2 cents/b (0.05%) at USD39.45/b. Both international crude markets had dived 2.64% and 2.88% to settle at USD41.72/b and USD39.43/b, respectively, on Oct. 12, after supply disruptions caused by a Norwegian labor strike and a hurricane in the US Gulf of Mexico were resolved.


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