Portugaese Galp halts fuel production at Matosinhos refinery

MOSCOW (MRC) -- Portugal’s Galp Energia temporarily suspended fuel production at its smallest oil refinery at Matosinhos due to unstable national and international markets shaken by the coronavirus pandemic, according to Hydrocarboprocessing with reference to a Galp spokesman's statement.

“Supply of the national market is guaranteed to remain, with an adequate level of products to satisfy the needs of the Portuguese, companies and industrial units,” he said in a statement.

Galp said that although the suspension had no end date as yet, no workers would be laid off.

The suspension, which began on Oct. 10, was Galp’s second at the refinery this year, after one in April along with a halt at its largest refinery in Sines. The two refineries comprise 20% of refining capacity on the Iberian peninsula.

Galp resumed production at both refineries in June, a month after Portugal slowly started to emerge from a coronavirus lockdown.

Portugal has recorded nearly 90,000 confirmed coronavirus cases and 2,110 deaths - far fewer than in many other European countries. But the pandemic is set to leave lasting scars on the Portuguese economy, with the government predicting gross domestic product to contract 8.5% this year.

Earlier this year, Galp said it would kick off its green business by installing renewable energy capacity of 10 gigawatts in the next decade, enough to power millions of homes.

As MRC reported before, earlier this year BP set one of the oil sector's most ambitious targets for curbing emissions, although some environmental campaigners accused it of greenwash and said it had not given enough detail on how it would achieve its targets.

We remind that , in September 2019, 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 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) -- The problem-plagued Limetree Bay refinery in St. Croix, Virgin Islands, may lose its main supplier of crude, oil major BP, if it isn’t successfully up and running by December, reported Reuters with reference to two people familiar with the matter.

The Caribbean refinery’s owner, Limetree Bay Ventures, has spent at least USD2.7 billion restoring the facility, initially hoping to tap rising demand for low-sulfur fuels and markets in Latin American and Caribbean. But the plant’s restart date has been delayed by nearly a year now.

BP Plc BP.L invested in the plant with an agreement to supply its crude and market the fuels produced in anticipation of a late 2019 startup. BP can terminate that contract if the plant cannot reach a certain production target by year-end, the people said, threatening the future of the largest new refining capacity in the Americas.

Limetree owners EIG Global Energy Partners and Arclight Capital Partners embarked on the overhaul in expectation of a surge in demand for marine fuels that comply with new maritime rules for low sulfur content. BP’s investment was to be repaid from product sales.

The goal was to have the refinery produce as much as 210,000 barrels per day (bpd)of refined product, but the COVID-19 pandemic has crushed refining margins for fuels across the globe.

BP and EIG declined comment. Arclight could not be reached for comment.

In recent weeks, Limetree experienced problems trying to restart the crude unit, according to one of the people familiar with the matter. That followed a series of delays due to corrosion uncovered during renovations.

With the problems the refinery is having, it is less attractive for BP to remain invested, according to sources familiar with the plant. The oil major is in the midst of a global overhaul of its operations, with plans to boost renewable investments and cut fossil fuel development, which also now makes this investment less attractive.

At least one vessel carrying crude oil booked by BP has been moored outside the refinery since the end of August, waiting to unload crude loaded from Guyana, according to two sources and data from Refinitiv Eikon. Companies usually pay demurrage fees when ships idle without unloading.

As MRC informed previously, 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.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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

ccording 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) -- SABIC has confirmed that the establishment of its Specialties strategic business unit (SBU), as a separate, stand-alone business, which will remain owned by SABIC, is on track, as per the company's press release.

While SABIC continues to monitor the business impacts of COVID-19, at this time, it anticipates that the timing of the “go-live” for the stand-alone operations of the group of companies embedding its Specialties strategic business unit (SBU) will be November 1, 2020.

The establishment of the stand-alone model for the Specialties SBU will bring additional value to its customers who depend on the Specialties business for its innovation expertise and highly differentiated ULTEM and NORYL resins, LNP compounds and copolymers.

The process of establishing the corporate, financial, commercial and business structure of the stand-alone organization has progressed successfully. The Specialties business has been working closely with its customers, distributors and suppliers with the strong commitment to ensure business continuity for all parties during the transition.

Ernesto Occhiello, Executive Vice President Specialties, said: “We are pleased the establishment of the Specialties business unit, as a stand-alone corporate group of companies within SABIC, is progressing as planned. The task we have as a business is to continue to strengthen our market position and bring added value to our customers. We will continue to work closely with them to address their most – and often one-of-a-kind – challenges by offering a unique portfolio of high-end products, technologies and solutions.“

Moreover, in advance of the go-live, the Specialties business has undertaken a global reorganization to align required staffing with the strategic focus of the transformed business. This endeavour has been effective in bringing no impact to customers, while successfully retaining company’s talent within SABIC and limiting the instances of redundancies.

SABIC’s Specialties business has deployed new fulfilment strategies to ensure the best support of its broad customer base. The business is focusing its resources and efforts on specification and is working closely with its customers and distribution partners. The anticipated capacity expansions for the NORYL and ULTEM products are progressing while the company is adhering to strict safety precautions for its employees in light of the global pandemic. The expansions are expected to be operational in 2021 in the Netherlands and 2022 in Singapore, benefiting a growing customer demand with strategically positioned supply and shorter lead times.

The decision to establish the Specialties business as a stand-alone group of companies precedes the acquisition of a 70% stake in SABIC from the Public Investment Fund (PIF) by Saudi Aramco and it is unrelated to it. SABIC remains a listed company on the Saudi Stock Exchange, with its board of directors representing the interests of all shareholders and continuing to exercise its own robust governance practices.

As MRC reported earlier, SABIC Europe, an affiliate of Saudi Basic Industries Corp (SABIC), has shut its No. 6 cracker in Wilton (UK) for a scheduled maintenance. The flaring was registerend on 29 September. The turnaround at this cracker which has an annual ethylene capacity of 865,000 tonnes and propylene capacity of 415,000 tonnes will be conducted during approximately 75 days.

Ethylene and propylene are the main 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.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Poland would like to increase its stake in oil refiner PKN Orlen as a result of the company's merger with rival Lotos, reported Reuters with reference to a deputy state assets minister's statement.

“Poland’s treasury holds only a 27% stake in PKN Orlen. As a result of the (Lotos) transaction we would like significantly increase the treasury’s share in the combined group,” said Deputy State Assets Minister Zbigniew Gryglas.

The state currently holds a 53.19% stake in Lotos.

As MRC wrote before, Poland’s PKN Orlen said in August 2020 it had signed a non-binding agreement with the state treasury and Grupa Lotos to shape a deal to take direct or indirect capital control of fellow state company Lotos.

Also, in line with the Polish government policy of creating large “national champion” industrial groups capable of competing in global markets, Orlen in July launched a process to acquire oil and gas exploration and production company PGNiG, another group contolled by the Polish state.

We remind that in 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.

Ethylene is the main feedstock for the production of polyethylene (PE).

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).

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.
MRC

MOSCOW (MRC) -- Sekisui Specialty Chemicals announced today that it will increase the price of Selvol Polyvinyl Alcohol, Selvol Ultiloc, Selvol Ultalux and Selvol Premiol up to USD150/mT globally, said Chemweek.

Sekisui Specialty Chemicals remains committed to meeting customers' needs with high quality products. The increase will take effect November 1, 2020, or as contracts and agreements allow. Customers should contact their local Sekisui sales representative for more details.

As MRC informed earlier, Sekisui Chemical has commenced the production of thermal interface materials for environment-friendly vehicles at Roermond, the Netherlands. Sekisui Chemical has established a new company, Sekisui Polymatech, based in the Netherlands.

As per MRC, Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-July output. August production of benzene fell to 102,000 tonnes from 95,300 tonnes a month earlier due to scheduled shutdowns for maintenance at several producers. Overall output of this product reached 918,300 tonnes over the stated period, down by 0.9% year on year.

Sekisui Specialty Chemicals' primary product is Selvol, a line of high performance polyvinyl alcohol polymers and copolymers used in paper, adhesive, packaging, construction, personal care, and many other specialty formulations. The company also represents Durastream CPVC compounds and resins, Advancell expandable microspheres, and S-LEC BK polyvinyl acetal resins. Sekisui Specialty Chemicals is a subsidiary of the Sekisui Chemical Group, a multibillion dollar, global company that delivers a wide range of products and services to enrich people's lives. The company is comprised of core businesses and technologies in housing, social infrastructure, and chemical solutions.
MRC