Equinor sells its Danish refinery to Klesch Group

Equinor sells its Danish refinery to Klesch Group

MOSCOW (MRC) -- Norway's Equinor has agreed to sell its Danish Kalundborg refinery as well as an oil terminal to Geneva-based Klesch Group for an undisclosed sum, said Reuters.

The companies declined to reveal the value of the deal, which will require approval by Danish authorities. Built in 1961 and acquired by Equinor in 1986, the facility can process 107,000 barrels a day of crude oil and condensate for gasoline, diesel, propane and heating oil, with an annual capacity of 5.5 million tonnes of oil products, Equinor said.

"This transaction supports Equinor's strategy to focus its portfolio around core areas," said Irene Rummelhoff, head of the Norwegian firm's Marketing, Midstream and Processing unit. Equinor will now concentrate its refining business at Norway's Mongstad, she added.

Klesch, which is involved in the production and trading of oil and metals, as well as the trading of financial derivatives, already owns northern Germany's Heide refinery, acquired a decade ago from Shell.

"Given the proximity of our refinery in Germany, I'm sure there will be lots of opportunities for both refineries to work together; especially when it comes to deploying our decarbonisation strategy," Klesch Group Chairman A. Gary Klesch said in a statement.

We also remind that BP and Equinor confirmed they are shutting in production on their platforms, while Chevron, BHP and others said they are evacuating some personnel and considering decisions on production reductions.

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 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.
MRC

Citgo intends to further increase its refinery capacity utilization

Citgo intends to further increase its refinery capacity utilization

MOSCOW (MRC) -- US refining company Citgo Petroleum expects to continue increasing its refinery utilisation rates after weather events hit its facilities last year and in the first quarter, reported Reuters with reference to Chief Executive Carlos Jorda's statement.

Citgo's utilisation rate rose in March for an average of 83% in the first three months of the year, a quarter when a winter storm that severely affected refiners in the US Gulf Coast contributed to the company's net loss of USD180 million, the firm said last month.

As MRC wrote before, in September 2020, Citgo Petroleum Corp said it did not plan to idle its 418,000 barrel-per-day (bpd) Lake Charles, Louisiana, refinery damaged by Hurricane Laura. Rumors have circulated since Laura’s passage over the Lake Charles area on Aug. 27 that Citgo was considering shutting the refinery for an indefinite period because of the extent of the damage and continuing low demand for motor fuels in the COVID-19 pandemic.

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 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.
MRC

Axens signs agreements with Aemetis for its project in California

Axens signs agreements with Aemetis for its project in California

MOSCOW (MRC) -- Axens has signed a license agreement for its Vegan renewable hydroprocessing technology with Aemetis, Inc. for its “Carbon Zero 1” project in Riverbank, California, according to Hydrocarbonprocessing.

Axens is also providing the basic engineering, catalyst supply, as well as the proprietary equipment for the conversion of ultra-low carbon intensity, non-edible vegetable and other non-edible oils along with renewable hydrogen in partnership with Gulf Process Gases to produce a flexible mix of sustainable aviation fuel (SAF) and renewable diesel fuel.

“Today Axens is pleased to announce yet another key step in the deployment of Aemetis’ Carbon Zero 1 project. While we are excited to renew our support to Aemetis vision, today also marks another significant milestone for Axens’ Vegan technology position in the sustainable and renewable biofuels market,” stated Romain Lemoine, VP of Process Licensing, Axens Americas.

As MRC reported previously, earlier this month, Raizen Argentina, Shell licensee, selected Axens for the modular supply of a FCC gasoline hydrodesulphurization unit Prime-G+ in its Buenos Aires 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

Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days

Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days

MOSCOW (MRC) -- Russian oil pipeline monopoly Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days to carry out maintenance work, the Interfax news agency reported.

The Soviet-built Druzhba pipeline, named after the Russian word for friendship, links Russian oilfields to European refineries and has the capacity to pump 1 million barrels per day (bpd). Polish pipeline operator PERN said that the halt of supplies has been agreed upon between the operators and their clients and that deliveries are expected to restart on June 12.

"Technological breaks in supplies from the east that last 1-3 days are routine and occur practically every month, of which PERN is informed in monthly delivery plans," PERN said in a statement. PERN's customers are Polish and German refineries. The Polish ones, owned by state-run PKN Orlen and Lotos, have been importing most of their crude from Russia via the pipeline.

PKN Orlen declined to comment. Lotos said that it had been informed about the planned break. "These events... do not affect the operation of the Gdansk refinery," Lotos press office said.

As per MRC, the European Commission agreed to the merger of the Polish concerns PKN Orlen and Lotos. For example, PKN Orlen received conditional EU antitrust consent to take over its rival Lotos and announced that it plans to buy Poland's largest oil and gas company PGNiG. The Polish state is the largest shareholder in PKN Orlen, Lotos and PGNiG. Orlen's acquisition of Lotos was announced in February 2018.

As MRC informed earlier, Polski Koncern Naftowy Orlen SA, (PKN Orlen) reduced the production of terephthalic acid (PTA) at the plant in Wloclawek (Wloclawek, Poland) due to a technical breakdown. Production problems at the enterprise supplying raw materials for PTA production led to a decrease in its output in January and most of February by 20%, and by the end of February - by about 50%.

PTA is one of the main raw materials for the production of polyethylene terephthalate (PET).

As per MRC ScanPlast, Russia's calculated consumption of polyethylene terephthalate (PET) grew to 263,660 tonnes in the first four months in 2021, up 13% compared to the same period in the previous year. 78.3% of the increase in consumption falls on the share of bottled PET chips due to the virtual absence of exports and an increase in the volume of imports.
MRC

ExxonMobil and USW negotiators to meet over US refinery lockout

ExxonMobil and USW negotiators to meet over US refinery lockout

MOSCOW (MRC) -- Negotiators for the United Steelworkers union (USW) and ExxonMobil will meet on Thursday for the first time since a May 1 lockout of Beaumont, Texas, refinery workers, reported Reuters.

A contract covering 650 union workers expired earlier this year and Exxon locked out workers, citing its fear of a sudden walkout. The 2,700-acre complex, Exxon's third-largest US refinery, continues to operate with managers and replacement workers producing gasoline and Mobil 1 motor oil.

“We will be trying to resolve the open issues,” USW Staff Representative Hoot Landry told Reuters on Wednesday. The union has proposed a six-year contract covering the refinery and lubricants plant and would continue existing seniority protections.

"We continue to engage in good-faith negotiations with the union until a contract is ratified," Exxon spokeswoman Julie King said.

The two sides have communicated on proposal terms but have not formally negotiated, according to people familiar with the matter. Landry and another staff representative met with Exxon officials on May 12 to clarify terms of each other's proposals.

The company has insisted USW Local 13-243 call a vote on its proposal that would create separate contracts for refinery and lubricant plant workers, and give the company control over which employees move up to senior posts. Exxon's proposal would give the 369,024 barrel-per-day refinery flexibility to be profitable in even low-margin environments, the company has said.

The USW’s last proposal, made on April 30, sought a six-year contract with no pay raise in the first year. It would match pay raises in the second through sixth years to those set by national labor negotiations that have yet to be held.

As MRC informed previously, Gov. John Bel Edwards and ExxonMobil Baton Rouge Refinery Manager David Oldreive have announced the company’s final investment decision for more than USD240 million in capital improvements at the ExxonMobil Baton Rouge 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 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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC