Motiva to market S-Oil products in North America

MOSCOW (MRC) -- Motiva Enterprises has executed a long-term supply agreement with Aramco base oil affiliate S-Oil Corporation that will more than double Motiva’s current offer for Group III base oil in North America, according to Hydrocarbonprocessing.

Per the agreement, Motiva will assume all North American marketing, sales, and distribution of Group III base oils produced by S-Oil (based in Onsan, South Korea). Phillips 66 Company was previously the exclusive distributor for S-Oil ULTRA-S Group III base oils in North America.

Motiva Base Oils Director Colleen Murphy-Smith said the new supply agreement represents a huge milestone for Motiva, which already operates the largest base oils refinery in the Western Hemisphere.

S-Oil is one of the largest Group III base oil producers in the world. Motiva will market the S-Oil products under the aramcoULTRA brand name.

Aramco affiliates Motiva, S-Oil, and Luberef have been part of the Aramco Base Oils Global Alliance since 2019. Products are marketed under one brand to strengthen global reach and maximize opportunities to serve both existing and gain new customers. Combined, the Alliance boasts a 14% market share, selling one in every seven barrels of base oils around the globe.

As MRC reported previously, Motiva Chemicals has resumed operations at its mixed-feed cracker in Port Arthur, USA. The process of restart of this cracker with the capacity of 635,000 mt/year of ethylene and 340,000 mt/year of propylene began on 27 February, 2021, and finishe in the first week of March 2021. The cracker wa shut along with the refinery at the same site on 14 February, 2021, because of the deep freeze.

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

MOSCOW (MRC) -- India's private refiner Reliance Industry said a secondary unit at its export-focused refinery in the western state of Gujarat has been shut since June 6, which may delay the shipment of some product cargoes, said Reuters.

The refinery, which has the capacity to process 704,000-bpd, is part of the world's biggest refining complex in the city of Jamnagar in Gujarat state.

Reliance did not give a reason for the "emergency shutdown" of the refinery's fluidized catalytic cracking unit (FCCU). "The FCCU unit is being repaired on top priority and is expected to be restarted expeditiously," the company said in a stock exchange filing. "Consequently, some product shipments may get delayed and we are working to minimize the impact on our customers," it said.

A source familiar with the matter said that the unit will be fixed in a week's time. The refining complex in Jamnagar has two refineries. The plant is adjacent to the 330,000 bpd refinery that mostly sells products in the local market.

As per MRC, Reliance Industries Ltd (RIL), the Indian energy and petrochemical giant and the largest polyvinyl chloride (PVC) producer in the country, decreased its PVC offerings in the Indian market late last week amid declining demand for the material.

According to the ICIS-MRC Price Report, PVC prices in Russia broke another historic record in May, but this factor did not affect demand. The key issue was whether the seller had enough resin. Some companies began to work out options for providing themselves with raw materials for July, a period of stoppages for repairs of two manufacturers.

Reliance Industries Limited is an Indian petrochemical company, the largest holding in the country. The company is engaged in a wide range of activities, from oil and gas production to the production of polyester and polymer products, including the production of polyethylene, polypropylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Overall polypropylene (PP) imports into Belarus only grew in the first four months of 2021 by 7% year on year to 38,700 tonnes. Demand for all grades of propylene polymers increased, according to MRC's DataScope report.

April PP imports into the Republic of Belarus rose to 11,800 tonnes from 10,200 tonnes a month earlier. Local companies raised their purchasing of homopolymer of propylene (homopolymer PP) in Azerbaijan and Russia. Overall imports of propylene polymers reached 38,700 tonnes in January-April 2021, compared to 36,200 tonnes a year earlier, demand for all grades of propylene polymers increased, with homopolymer PP accounting for the greatest growth in demand.

The supply structure by PP grades looked the following way over the stated period.

April imports of homopolymer PP rose to 8,400 tonnes from 6,900 tonnes a month earlier, purchases of injection moulding homopolymer PP in Russia and Azerbaijan increased. Overall imports of homopolymer PP reached 27,900 tonnes in January-April 2021, up by 9.1% year on year.

April imports of propylene copolymers into Belarus were 2,800 tonnes versus 2,600 tonnes a month earlier, local companies significantly increased their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian producers. Thus, overall imports of propylene copolymers reached 8,800 tonnes over the stated period, up by 1% year on year.

MRC

1. Honeywell to supply zeolites to accelerate setting up of MOP in India to address the ongoing pandemic

MOSCOW (MRC) -- Honeywell is partnering with Defence Research Development Organisation (DRDO) and with the Council of Scientific and Industrial Research–Indian Institute of Petroleum (CSIR–IIP), Government of India, to supply molecular sieve adsorbents (zeolites) to accelerate setting up of Medical Oxygen Plants (MOP) in the country to address the ongoing pandemic, said Hydrocarbonprocessing. Honeywell UOP has assured a timely supply of adsorbents to enable the country to produce sufficient medical grade oxygen to meet the increased demand, and has partnered with DRDO and CISR-IIP and their associates to identify and supply alternative adsorbents to optimize cost and streamline supply-related logistics without compromising output from plants.



MRC

MOSCOW (MRC) -- Oil prices are set to remain on a bullish course this year given the strong recovery in global demand following the COVID-19 pandemic-induced slump, reported Reuters with reference to the head of the Petroleum Association of Japan (PAJ).

"Global crude demand is expected to further recover in the second half of this year, given the convergence of the pandemic and the revival of economic activity in the United States and Europe," PAJ president Tsutomu Sugimori told a news conference.

Middle East crude benchmark prices in Dubai are expected to remain in the USD70s per barrel for a while, he said.

The world will need a lot more oil from OPEC+ as global demand is on track to return to pre-pandemic levels at the end of next year, the International Energy Agency said last week, just a few weeks after saying long-term oil production must decline to reduce emissions.

Sugimori, who also serves as chairman of Japan's biggest refiner, Eneos Holdings Inc, said fuel demand in Japan was expected to pick up later this year.

Japan's gasoline demand in May rose 14% from the same month a year earlier but it was still down 12% from May 2019, he said, adding that the figure in June is expected to fall 5% from a year earlier and decline 9% from June 2019.

As MRC wrote previously, ENEOS restarted its Sendai refinery in northeast Japanon 18 May, 2021. This refinery was hit by an earthquake on 1 May, 2021. Besides, on 18 May, the company shut down its Sakai refinery in western Japan for maintenance.

We remind that ENEOS Corporation restarted its naphtha cracker in Kawasaki on 1 February 2021. The company shut this cracker with an annual capacity of 515,000 tons/year of ethylene, 300,000 tons/year of propylene, and 105,000 tons/year of butadiene on 4 December, 2020, for repairment after a technical issue reported at the butadiene separation unit and initially planned to resume operations on 28 December, 2020.

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.

Japan's largest refiner JXTG Nippon Oil & Energy was renamed ENEOS Corporation on 25 June, 2020, as part of a wider re-organization of the parent company JXTG Holdings. The move, which also involved renaming the parent company to ENEOS Holdings upon approval at its annual shareholders meeting in June 2020, comes as it strives to be a more comprehensive energy and materials company under its 2040 vision announced in May, 2019. JXTG Holdings was formed as a result of a merger between JX Holdings and TonenGeneral in April 2017. This followed the establishment of JX Holdings as a result of the merger between Nippon Oil and Nippon Mining Holdings in April 2010.
MRC