Indian BPCL can buy up to 2 mln tons of Iranian crude oil if sanctions lifted

MOSCOW (MRC) -- Bharat Petroleum Corporation Ltd (BPCL) said on Thursday it can buy up to 2 million tons of crude oil from Iran if sanctions are lifted and terms are attractive, according to IranOilGas.

BPCL Director (Finance) N Vijayagopal said his company used to buy 2 million tons a year of crude oil from Iran before sanctions halted imports. BPCL bought 1.15 million tons of crude from the US in the last financial year, he said adding it would not be possible to replace dependence on the Middle East in the long run.

India stopped importing oil from Iran in mid-2019 following sanctions on the Persian Gulf nation by the Trump administration.

Indian Oil Corporation (IOC), the nation’s largest oil firm, and Hindustan Petroleum Corporation Ltd (HPCL) too had earlier this month expressed hope of resuming oil imports from Iran once the sanctions are lifted.

India was the second-biggest buyer of Iranian oil after China before sanctions halted supplies in May 2019.

Iran in 2017-18 was its third-largest supplier after Iraq and Saudi Arabia and met about 10% of total needs.

As MRC wrote before, in April, 2020, BPCL shipped the first consignment of acrylic acid from its Propylene Derivative Petrochemical (PDP) complex at Kochi Refinery. Acrylic Acid is one of the six niche petrochemical products produced in the new PDP Complex at Kochi Refinery.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- State-backed Sinopec is ready to launch its first green hydrogen project in Inner Mongolia next year as part of an effort to help meet its goal of becoming China’s top hydrogen company by 2025, according to Energy Voice.

The 2.6 billion yuan (USD405 million) green hydrogen plant in Ordos, which will use solar and wind, is designed to have a yearly production capacity of 20,000 tonnes. The first phase will involve 10,000 tonnes hydrogen production, supported by 270 megawatts (MW) of solar power and 50 MW of wind power.

The green hydrogen will be consumed by Sinopec’s Zhongtian Hechuang coal-to-chemicals project in Ordos.

Sinopec, China’s largest hydrogen producer, also said it will focus on fossil fuel-based hydrogen production over the next five years and set up 1,000 hydrogen filling stations across the country, as part of its target to be carbon neutral by 2050.

Sinopec currently has yearly hydrogen production capacity of 3.5 million tonnes, mainly grey hydrogen as a by-product from its refineries, making up about 14% of total hydrogen production in China.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectively.

According to MR''s ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- Energy pipeline companies will have to report cybersecurity incidents to the U.S. government under a new directive that will be announced by the Transportation Security Administration (TSA), senior government officials said, said Hydrocarbonprocessing.

The officials, who asked to remain unidentified, said the directive will impose fines on pipeline companies that fail to report incidents within 12 hours and mandate that the pipeline companies designated a cybersecurity coordinator to report incidents and coordinate with the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA). "This is the first time there's mandatory reporting of cybersecurity incidents," said one of the four senior officials that spoke to journalists ahead of the directive's unveiling.

The new directive comes after hackers earlier this month carried out a ransomware attack on the Colonial Pipeline Co , the United States' biggest fuel pipeline system, that caused supply disruptions, price spikes and panic buying across the East Coast earlier this month. The directive was first reported by The Washington Post earlier this week.

The hackers, alleged to be operating out of Russia, held Colonial Pipeline's computer network hostage and successfully extorted millions of dollars in digital currency. The incident has bumped the cybersecurity of critical infrastructure to the top of the national agenda. The U.S. government has traditionally relied on private industry to flag hacks to officials, but is shifting toward mandatory reporting amid a number of major intrusions.

Similar mandates might appear in other industries. Speaking Wednesday, the officials said the new pipeline mandate is being eyed as a potential model for other sectors as well.

As per MRC, Colonial Pipeline restarted operations Wednesday at approximately 5 p.m. ET after a ransomware attack last week forced the entire system offline on Friday evening. The company did warn, however, that its pipeline would not be fully functional immediately.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Four oil firms including Nigeria's state-oil company have approached Dangote Industries to acquire a stake in Africa's largest oil refinery, a senior executive told Reuters.

Devakumar Edwin, group executive director, said the firms from Western and Middle East countries and involved in trading and crude production were looking to secure crude supply agreements, a similar objective to that pursued by the Nigerian National Petroleum Corporation (NNPC). "They are seeking to have 20% minority stake in Dangote refinery as part of collaboration ... so that they can sell their crude," Edwin told Reuters by telephone.

He said Dangote refinery is not looking for equity and the company wants to be able to secure crude from the market. Nigeria, Africa's biggest crude oil exporter, imports virtually all of its fuel due to moribund state refineries, which has prompted the state oil company's interest in the 650,000 barrel per day (bpd) Dangote refinery.

NNPC's spokesman, speaking to Reuters in a phone interview, said the corporation had considered the idea of acquiring a stake in the USD19.5 billion oil refinery project owned by Africa's richest man, Aliko Dangote. Edwin said the refinery is scheduled for mechanical completion this year with commissioning by January 2022.

Nigerian billionaire Dangote, who built his fortune in cement, first announced a smaller refinery in 2013, to be finished in 2016. He then moved the site to Lekki, in Lagos, upgraded the size and said production would start in early 2020. The company has held talks with firms including Vitol(VITOLV.UL) and Trafigura (TRAFGF.UL) over the supply of crude and lifting of petroleum products for sale abroad.

Nigeria lost its biggest customer, the United States, after it start producing shale oil. The U.S. is now pushing into some of Nigeria's most valued markets, Edwin said.

As per MRC, Africa's largest oil refinery will deliver its fuels to Nigerian consumers via roads and sea ports, and will effectively replace all of Nigeria's fuel imports once fully operational. The 650,000 barrel-per-day Dangote oil refinery is under construction in Lagos, the biggest city in the most fuel-consuming nation in the region, which absorbed 266,000 barrels of petroleum products per day as of 2015. Congested ports and dilapidated roads led some to expect that the company would build a pipeline or other method of getting its fuel to consumers.

The Dangote group is also eyeing ethanol production at its sugar and molasses plant in Adamawa state, and has facilities at the refinery to blend ethanol with fuel if needed. Edwin said they are also already considering expanding plastics and petrochemical productions at the refinery, which will make polyethylene and polypropylene when it begins production.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Royal Dutch Shell is selling its 90,000 barrel-per-day (bpd) Mobile, Alabama refinery to specialty refiner Vertex Energy for USD75 million plus the cost of hydrocarbon inventory, reported Reuters with reference to the company's statement.

Vertex plans to produce petroleum fuel and renewable diesel at the refinery following the close of the transaction in the fourth quarter of 2021, pending approvals.

Vertex will also buy co-related logistics infrastructure and hydrocarbon inventory, including more than 3 million barrels of crude oil and product storage. The inventory is currently valued between USD65 and USD85 million, Shell said.

Shell and Vertex will have crude supply and product offtake agreements, according to the companies.

Vertex plans to produce approximately 10,000 bpd of renewable diesel and renewable byproducts at the plant by the end of 2022, increasing to 14,000 bpd by 2023. The company said it will spend USD85 million to convert Mobile's hydrocracking unit.

As MRC informed previously, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

Last week, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

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