Borouge partnered recycling firm Plaspulp Union

Borouge partnered recycling firm Plaspulp Union

MOSCOW (MRC) -- Borouge has partnered with Singapore-based recycling firm Plaspulp Union to further develop and commercialize new packaging applications using recycled materials, said the UAE-based company.

The Memorandum of Understanding (MoU) marks Borouge's first foray into the recycling market in Southeast Asia, the company said in a statement. "Borouge is expected to develop more partnerships with other processing companies in the coming months," it said.

Borouge has already successfully tested the use of Plaspulp Union recycled materials in flexible packaging such as laminate and shipping packaging.

The MOU with Plaspulp Union will add to the existing partnerships Borouge has established with two other recycling companies in China to increase the volume of recycled materials in its portfolio and jointly develop innovative new solutions for packaging applications.

As per MRC, Borouge, a joint venture between Borealis and Abu Dhabi National Oil company, plans to complete the construction of a fifth polypropylene (PP5) plant in Ruweis in 2021. The PP5 plant is under construction and will begin operations in mid-2021. This plant with a capacity of 450,000 tonnes of PP per year will be fully commissioned in 2022.

According to MRC's ScanPlast report, Russia's PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Rosneft signs 73 contracts under the SPIEF

Rosneft signs 73 contracts under the SPIEF

MOSCOW (MRC) -- Rosneft has signed 73 agreements for a total of Rb616.5 bn, including more than 50 contracts for the implementation of the Vostok Oil project for a total of Rb558.8 bn, the company said.

Rosneft, within the framework of the St. Petersburg International Economic Forum (SPIEF), signed contracts for the construction of high-priority facilities at Vostok Oil, power supply, aviation support, provision of services, supply of equipment, materials, special equipment and pipe products. These include an agreement with the United Energy Company (UEC) for the construction of hydraulic structures for the Port Bukhta Sever oil terminal, and an agreement with LenmorNIIproekt for design and exploration work on the second and third stages of the terminal construction.

In addition, the company signed an agreement with the Pipe Metallurgical Company on the supply of metal products for the timely implementation of construction and installation work at Vostok Oil. In turn, Inter RAO - Engineering will carry out design and survey work for the construction of facilities of the first stage of energy supply for Vostok Oil with a total capacity of more than 1 gigawatt.

Rosneft has agreed with Norilsk Nickel on the development of integrated logistics services for the Vostok Oil project within the framework of the SPIEF. The company also signed an agreement with partners on the maintenance of its own fleet of Vostok Oil aircraft, which implies the development of a special service center in Russia.

At the forum, Rosneft and the United Machine-Building Group signed an agreement on the transportation of the company's projects with special and road-building equipment, which is necessary, among other things, for the implementation of the first stage of Vostok Oil. The company has also agreed with Sodexo Eurasia LLC on the provision of catering, accommodation and comprehensive maintenance services for social facilities at the fields of the Vankor cluster.

As part of the SPIEF, Rosneft signed agreements with two international oilfield service companies: Schlumberger and Baker Hughes. An agreement was signed with Schlumberger for the implementation of innovative projects in Russia, and with Baker Hughes, an agreement was signed on cooperation in the field of carbon management. An agreement was also signed with SUEZ Water Technologies & Solutions SA on cooperation in the field of wastewater treatment and recycling technologies.

The company also signed agreements of intent in the retail business: with Inter RAO UES on cooperation in the development of low-tonnage production and sale of liquefied natural gas as a motor fuel and with Rosseti on cooperation in the development of charging infrastructure for electric vehicles.

Earlier it was reported that Rosneft intends to build a new polyolefin complex for the production of polyethylene (PE) and polypropylene (PP) based on Ufaorgsintez (UOS, Bashkortostan). The design capacity for the production of polyethylene is at least 250 thousand tons per year, and the granted license should provide the ability to produce 230-250 thousand tons per year of low-density polyethylene (HDPE), up to 20 thousand tons per year of linear low-density polyethylene (LLDPE ) and up to 10 thousand tons per year of linear polyethylene on a metallocene catalyst. At the moment, the capacities of Ufaorgsintez allow producing up to 90 thousand tons per year of high-pressure polyethylene (LDPE) and 120 thousand tons per year of polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Rosneft is the world's largest publicly traded oil company. The company accounts for about 5% of global oil production, and its proven reserves in the international category will exceed 5 billion tons of oil equivalent. The structure of Rosneft includes the Angarsk Polymer Plant, the Lisichansk Refinery after the acquisition of TNK-BP and Ufaorgsintez (part of the Bashneft structure) after the closing of the transaction for the purchase of Bashneft on October 12, 2016. The main shareholder of Rosneft is the state-controlled Rosneftegaz (50% plus one share), another 19.75% is owned by British BP.

CADE approves Petrobras refinery sale to UAE investor

CADE approves Petrobras refinery sale to UAE investor

MOSOCW (MRC) -- Brazilian antitrust body CADE has approved the sale of refinery RLAM to the UAE's investor Mubadala Investment Company, reported Reuters with reference to a notice in the official gazette.

The deal was announced in March for USD1.65 billion.

RLAM is the first of eight Petrobras refineries on the block to be sold.

As MRC informed before, in December 2020, it became known that Petrobras was seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company's recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras's stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company's stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras" activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

PC imports to Russia almost halve in Jan-Apr 2021

MOSCOW (MRC) -- On the back of an acute shortage of European material and high polycarbonate (PC) prices in Asia, imports of PC granules into Russia (excluding shipments from Belarus) decreased in the first four months of 2021 almost by 2 times year on year to 4,400 tonnes, according to MRC's DataScope report.

Imports of material into the country were 8,100 tonnes in January-April 2020. Imports, excluding imports to Belarus, were 990 tonnes last months versus 2,000 tonnes in April 2020. March 2021 imports of PC granules were 1,220 tonnes.

Extrusion grade PC accounted for the reduction in imports. Its share in the total imports of material into the Russian Federation was 22% (990 tonnes) versus 71% (5,800 tonnes) a year earlier. The share of injection moulding grades rose to 67% (3,000 tonnes) in the January-April 2021 versus the share of 23% (1,900 tonnes) a year earlier.
Covestro (with the share of 50%) and Sabic Innovative Plastics (22%) were the main import suppliers of PC granules. Both producers significantly reduced their shipments in 2021. Thus, imports of Covestro's material fell by 27% in the first four months of 2021: from 3,000 tonnes a year earlier to 2,200 tonnes. Sabic's shipments decreased even more - to 970 tonnes (excluding Belarusian imports) from 4,300 tonnes a year earlier.


COVID-19 - News digest as of 10.06.2021

1. Crude oil futures drop on large US product inventories

MOSCOW (MRC) -- Crude oil futures slipped during midmorning trade in Asia June 10 on the back of a large build in US product inventories, which cast a shadow of doubt on the optimism surrounding summer driving demand in the region, reported S&P Global. At 10:38 am Singapore time (0238 GMT), the ICE August Brent futures contract was down 65 cents/b (0.90%) from the previous settle at USD71.57/b while the NYMEX July light sweet crude contract was down 61 cents/b (0.87%) at USD69.35/b. The Energy Information Administration reported a 5.2 million-barrel draw in US crude oil inventories in the week ended June 4 amid high refining run rates, but market sentiment was bogged down by a large build of 7 million barrels in gasoline stocks and a 4.4 million-barrel build in distillate inventories over the same period.

2. US PVC exports fall 18.4% YOY in Jan-Apr 2021

MOSCOW (MRC) -- US exports of construction staple polyvinyl chloride (PVC) in the first four months of 2021 were 18.4% lower than in the January-April period of 2020, reflecting fallout from tight supply and strong domestic demand, according to S&P Global with reference to US International Trade Commission data released June 9. The US shipped out 673,664 mt of PVC over January-April 2021, compared to 825,996 mt in the year-ago period, the data showed. April 2020 marked the height of coronavirus pandemic-related shutdowns in the US, which hindered construction activity and prompted sharp production cuts. Upstream chlor-alkali rates plunged to 68% in April 2020 from 90% in March that year, industry statistics show.