Crude futures up on optimism over Europe reopening

MOSCOW (MRC) -- Crude oil futures were higher in the mid-morning trade in Asia April 23, as optimism over the reopening of Europe lent support to the market, even as concerns remained on the progression of the pandemic in India, reported S&P Global.

At 11:17 am Singapore time (0317 GMT), the ICE Brent June contract was up 27 cents/b (0.41%) from the April 22 settle at USD65.67/b, while the June NYMEX light sweet crude contract was 36 cents/b (0.59%) higher at USD61.79/b.

Market analysts said that oil prices pared their loses in the week of April 18 due to an improved outlook for Europe. COVID-19 cases in major European economies have plateaued and countries such as Italy, Greece and France are on track to ease some of their mobility restrictions, according to media reports.

Meanwhile, concerns over the rise in COVID-19 infection numbers in India, the third largest oil importer in the world, continued to persist, capping upside in the market. The country reported record highs of 314,644 cases and 2,104 deaths on April 21, latest data from John Hopkins university showed.

Analysts noted that volatility in the market seen in the week of April 18 comes from the tussle between a bullish outlook for oil demand in the US and Europe, and a bearish outlook in India.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Ineos declares force majeure on mLDPE supply from Cologne, Germany

MOSCOW (MRC) -- Ineos has declared force majeure (FM) on its metallocene linear low density polyethylene (mLLDPE) supplies from its plant in Cologne, Germany, following an unplanned outage on April 6, according to NCT with reference to a source familiar with the issue.

The company could not be reached for comments at the time of publication, however.

The company’s Cologne LLDPE plant has a production capacity of 230,000 mt/year.

This site also houses another plant with the capacity of around 400,000 mtyear of low density polyethylene (LDPE).

We remind that Ineos declared FM on its LDPE supplies from Cologne, Germany due to a power outage on November 11, 2020. The force majeure was slated to last for 3 weeks. The company’s mLLDPE unit at this site was reported to be unaffected,

As MRC informed before, in January 2019, INEOS announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively LDPE increased.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Kem One declares FM on PVC supply from its plant in Berre, France

MOSCOW (MRC) -- France’s Kem One declared a force majeure (FM) on polyvinyl chloride (PVC) supplies from its Berre unit in France on April 15, 2021, according to NCT with reference to market sources.

It is not yet known when the FM will be lifted.

The company could not be reached for confirmation.

The plant has a suspension PVC (SPVC) production capacity of 290,000 mt/year through 3 fully automated production trains, according to Kem One’s web site.

As MRC informed before, Kem One declared FM on PVC supplies from its Saint-Fons site, France on February 3, 2021. Rising water levels on Rhone River, which interrupted the transportation of feedstock VCM, was cited as the reason behind the FM. The interrupted navigation on Rhone River prevented the company from transporting vinyl chlorie monomer(VCM) to its Saint-Fons site and forced it to slow down production of PVC there.

According to MRC's ScanPlast report, Russia's overall PVC production reached 259,400 tonnes in the first three months of 2021, down 3% year on year. All producers decreased production volumes over the reported period.

Kem One, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s second-largest producer of PVC with revenues in excess of one billion euros, Kem One continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC

Ineos declares force majeure on PP supplies from its plant in Belgium

MOSCOW (MRC) -- Ineos, one of the word's petrochemical majors, has declared force majeure (FM) on polypropylene (PP) supplies from its plant in Geel, Belgium due to a technical issue, reported NCT with reference to a source familiar with the issue.

Thus, the FM was declared on April 20.

The company could not be reached for comments at the time of publication, however.

The company was conducting a planned maintenance work at its PP plant with the capacity of 290,000 mt/year of PP stretching from early March to mid-April, meanwhile.

As MRC informed before, in January 2019, INEOS announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Chevron and Toyota to jointly explore development of commercial hydrogen businesses in the US

MOSCOW (MRC) -- Oil and gas company Chevron has signed a memorandum of understanding with carmaker Toyota to explore the development of "commercially viable, large-scale" hydrogen businesses in the US, reported S&P Global with reference to the companies' statement April 21.

According to the statement, the partners would investigate the market potential for light-duty and heavy-duty fuel cell electric vehicles, along with the supply options for such demand.

They would also collaborate on public policy developments to support hydrogen infrastructure and explore research and development in hydrogen powered transportation and storage.

"Working towards a strategic alliance on hydrogen presents an opportunity to build a large-scale business in a low-carbon area that is complementary to our current offerings," Chevron's Americas Fuels & Lubricants president Andy Walz said.

As MRC informed earlier, in September 2020, Chevron Phillips Chemical, part of Chevron Corporation, deferred a final investment decision on a USD8 billion joint venture petrochemical complex project along the US Gulf Coast that was expected in 2021. The project, in partnership with Qatar Petroleum (QP), was announced in July 2019. It is slated to include a 2 million mt/year cracker and two 1 million mt/year high density polyethylene (HDPE) plants. The FID delay will also push the original target startup date past 2024.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC