Reliance to complete maintenance at PP plant in Indian

MOSCOW (MRC) -- Reliance Industries (RIL) is on track to restart its polypropylene (PP) unit in Jamnagar, India as the company is completing the 20 days maintenance works, reported CommoPlast.

The unit was taken offline on 15 October and would come back online on 5 November 2020.

The plant has an annual capacity of 480,000 tons/year.

As MRC informed earlier, in September 2020, RIL released a detailed plan to carve out its oil-to-chemicals business into a separate entity for a potential stake sale. As per the scheme, RIL’s oil-to-chemicals (O2C) assets, including its refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, will be transferred to a new unit. The new unit will include the refining and petrochemical plants and manufacturing assets at RIL’s Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hosiarpur locations.

It will also include all assets relating to RIL’s ongoing refinery and petrochemical projects that are being commissioned or near completion, the company said. RIL had officially announced its proposal to transfer its oil-to-chemicals (O2C) business to a separate entity in April.

According to MRC's ScanPlast report, 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.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Crude oil futures were higher day on day in European morning trading Oct. 27, but slightly down from levels in earlier Asian trading, with the market reflecting on lost production of both crude and products in the Gulf of Mexico as a result of Hurricane Zeta, reported S&P Global.

At 1214 GMT, the ICE December Brent crude futures was up 20 cents/b from the Oct. 26 settle at USD40.65/b while the NYMEX December light sweet crude contract was 25 cents/b higher at USD38.81/b.

The 27th named storm in this year's Atlantic hurricane season is expected to make landfall in the US on the morning of Oct. 28, the country's National Hurricane Center has said. BP, Equinor and Chevron were among those who'd suspended production at offshore oilfields in the gulf, while Shell said it hadn't done so. "We are likely to see further production shut in the coming days," ING wrote in a note.

The Bureau of Safety and Environmental Enforcement has said almost 294,000 b/d of production is shut in, which represents 16% of total production in the Gulf of Mexico. Zeta is expected to strengthen into a hurricane later on Oct. 26 and make an initial landfall near Mexico's Yucatan Peninsula before entering the central Gulf and making a second landfall as early as Oct. 28 near southeastern Louisiana, according to the hurricane center. The subsequent risk of refinery closures means that many market participants are prepared for this session's price rise to be reversed.

"The situation on the oil market remains confusing and ominous," wrote Commerzbank in a research note, drawing attention to possible demand destruction from "refinery closures and transport restrictions" that could be the next result of Hurricane Zeta.

Moreover, the growth of COVID-19 cases in Europe and the US means that traders are circumspect about any rise in crude prices, especially given the previously stated intention of OPEC+ to relax output cuts from January.

"If there is little improvement in the demand picture, there will likely be growing pressure on OPEC+ to rollover current cuts into next year," wrote ING.

With nine days remaining until the US presidential election, commodity, bond and equity markets are all examining possible policy changes in the world's biggest economy.

Commerzbank said a victory for Joe Biden could be both negative and positive for oil prices in the longer term. Among bearish signals for oil, Commerzbank named the Democrat candidate's commitment to alternative energy, as well his position toward Iran, which could pave the way for the major producer to be reintegrated into the oil market. However, decisive victory for the Democrats could also provide a boost to prices if it accelerated fiscal stimulus measures or if Biden restricts US shale oil.

As MRC reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

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) -- PTT Global Chemical (PTTGC) might start up the newly constructed cracker in Map Ta Phut, Thailand this December, reported CommoPlast with reference to market sources.

The company kickstarted the project in early 2018 as part of PTTGC’s USD4.5 billion projects to “retrofit” its Map Ta Phut site.

The new cracker operates on flexible feeds, primarily to utilize the surplus naphtha from its refinery. The unit has an annual capacity of 500,000 tons/year of ethylene and 261,000 tons/year of propylene.

As MRC wrote previously, PTTGC fully restarted its No. 2 cracker in Map Ta Phut by end-February, 2020, after a planned turnaround. The cracker was shut for maintenance on January 20, 2020. Located at Map Ta Phut, Thailand, the No. 2 cracker has an ethylene production capacity of 400,000 mt/year.

The company also operates No. 1 cracker at the same site with a capacity of 515,000 tonnes of ethylene and 310,000 tonnes of propylene per year, which was also shut on 23 January, 2020, for a 40-day turnaround.

Ethylene and propylene are feedstocks for producing 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.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Reliance Industries (RIL) is scheduled to restart the low density polyetylene (LDPE) plant in Gujarat on 28 October following brief maintenance, according to CommoPlast.

The unit was taken off-line on 25 October 2020.

The LDPE line has an annual capacity of 400,000 tons/year.

“Due to the short shutdown, there is virtually no impact on the supply,” a source close to the producer informed.

As MRC reported earlier, in September 2020, RIL released a detailed plan to carve out its oil-to-chemicals business into a separate entity for a potential stake sale. As per the scheme, RIL’s oil-to-chemicals (O2C) assets, including its refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, will be transferred to a new unit. The new unit will include the refining and petrochemical plants and manufacturing assets at RIL’s Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hosiarpur locations.

It will also include all assets relating to RIL’s ongoing refinery and petrochemical projects that are being commissioned or near completion, the company said. RIL had officially announced its proposal to transfer its oil-to-chemicals (O2C) business to a separate entity in April.

According to MRC's ScanPlast report, August estimated LDPE consumption in Russia rose to 48,460 tonnes from 43,380 tonnes a month earlier. Russian producers reduced their export LDPE shipments. Russia' estimated LDPE consumption rose to 383,500 tonnes in January-August 2020, up by 6% year on year. Despite the long outages, LDPE production increased, and imports also rose.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Roughly half of all the oil and gas production from the US Gulf of Mexico was shut in Oct. 27 ahead of Tropical Storm Zeta, which is expected to again strengthen into a hurricane before making a projected landfall in southeastern Louisiana, reported S&P Global.

An estimated 914,811 b/d of crude production and 1,500 MMcf/d of natural gas production was shut in, reflecting 49.45% and 55.35% of US Gulf output, respectively, according to the US Bureau of Safety and Environmental Enforcement. About 25% of the Gulf's platforms and rigs, or 157 facilities, have been evacuated thus far, BSEE said, with more underway.

Chevron, Shell, BP, BHP, Murphy Oil and Equinor all confirmed they've shut down platforms and production ahead of the storm. BP and Chevron count among those shutting-in all of their operated platforms.

"In preparation for the tropical weather, we have begun evacuating all personnel from our Chevron-operated Gulf of Mexico platforms and are shutting-in the facilities," Chevron said in a statement.

BP said it was shutting-in its four operated platforms - Atlantis, Mad Dog, Na Kika and Thunder Horse - and evacuating personnel.

Shell, on the other hand, is only closing down its Stones FPSO thus far, which happens to be its Gulf project that's farthest offshore.

"As a precautionary measure at our Stones asset, we have begun evacuating non-essential personnel and shut in production," said Shell spokeswoman Cindy Babski in a statement on Oct. 27. "We have safely paused some of our drilling operations and currently have no other impacts to our production across the Gulf of Mexico."

BHP spokeswoman Judy Dane said the Australian firm shut-in and evacuated its Shenzi and Neptune, while Equinor said it shut-in production at its Titan platform.

Murphy oil spokeswoman Megan Larson said the offshore production is "evacuating and shutting in certain facilities," but would not name specific assets.

Occidental Petroleum was more vague, saying in a statement, "All of our facilities have plans to prepare for weather-related events, and those in the storm's potential path are implementing those procedures."

Oil and gas volumes in the US Gulf will yet again be disrupted from a record-setting 2020 Atlantic hurricane season. Zeta is the 27th named storm of the year, tying the 2005 record with more than a month remaining in the season.

Earlier in October, Hurricane Delta forced more than 90% of the US Gulf's nearly 1.9 million b/d of crude production to be shut in, but Zeta isn't expected to take that much production offline.

Zeta strengthen into a Category 1 hurricane Oct. 26 before making an initial landfall near Mexico's Yucatan Peninsula and weakening back to tropical storm status. Zeta is expected to strengthen back into a hurricane later on Oct. 27 and make a second landfall late Oct. 28 near southeastern Louisiana, according to the National Hurricane Center.

Named storms Delta, Beta, Sally, Marco, Laura, Hanna and Cristobal have all disrupted activities in the Gulf from June through October.

The current path of the hurricane targets roughly 2.7 million b/d of refining capacity, mostly in Louisiana.

Refiners continue to monitor the storm, based on their hurricane readiness and response plans.

"We are closely monitoring Tropical Storm Zeta. Operations are currently normal," said ExxonMobil spokesman Jeremy Eikenberry about the status of its 517,000 b/d Baton Rouge, Louisiana plant.

Shell said it plans to keep operating its refineries and petrochemical plants in Louisiana and Alabama during the storm.

Decisions to slow or shut down plant depending on the intensity, location and timing of landfall of the storm are likely to be made within the next 24 hours, sources familiar with operations at several refineries said.

Citgo Petroleum's Lake Charles Refinery in Louisiana has been offline since it sustained damages from Hurricane Laura in August, although the refinery is expected to come back online in about a week or so. Phillips 66's Alliance Refinery in Belle Chasse, Louisiana also remains offline for maintenance work.

As MRC informed earlier, Royal Dutch Shell plc. said earlier this month that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant’s costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

Ethylene and propylene are feedstocks for producing 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