Reliance Industries expects Saudi Aramco deal to formalise this year

MOSCOW (MRC) -- Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), on Thursday said he expects the company's deal with Saudi Aramco to materialise this year, said Reuters.

Meanwhile, Yasir Al-Rumayyan, chairman of Saudi Aramco and the Governor of the Public Investment Fund, joined the board of Reliance as an independent director.

Speaking at the company's annual general meeting, Ambani said "As an important part of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner in our O2C business." Despite several challenges due to covid-19, "we have made substantial progress in the past year in our discussions", he added.

RIL had in 2019 announced its interest to sell 20% stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at USD15 billion. Last fiscal, RIL carved out its oil-to-chemicals business into a separate entity, to facilitate onboarding of strategic partners like Aramco.

O2C undertaking of the company comprises of entire oil-to-chemicals business consisting of refining, petrochemicals, fuel retail & aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities. O2C’s aim, RIL said, is to maximize crude to chemicals conversion while creating a sustainable growth business.

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.

Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.
MRC

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, began restarting its No. 3 cracker in Point Comfort, Texas on June 23 and was expected to ramp up through the week, reported S&P Global with reference to sources familiar with company operations.

The Formosa OL3 cracker with the capacity of 1.25 mln tonnes of ethylene per year was shut on June 4, 2021, owing to technical issues.

A Formosa spokesman June 22 had said the unit would be undergoing start-up activities beginning June 23, according to market sources. The startup was initially expected after one week of downtime, but the timeline was extended to the week ending June 25.

As MRC informed before, Formosa Plastics' new 1.5 million mt/year cracker in Point Comfort came online in H1 January, 2020, and was seen ramping up through January.

We remind that Formosa Plastics USA started up its 400,000 tons/year low density polyethylene (LDPE) plant in Point Comfort, Texas, US, on 30 November, 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.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

1. NKNK revenue in the first quarter increased by 44%

MOSCOW (MRC) - The revenue of Nizhnekamskneftekhim (NKNKH) in January-March set a new record of 54.9 billion rubles, according to BUSINESS Online. The impressive results were achieved mainly due to the favorable situation on the world markets, and NKNK is forecast to have strong performance in the coming quarters already due to growing production amid recovery in demand for petrochemical products. After the "covid" 2020, a number of economic sectors headed "north", recovering from a forced pause. Of the leading Tatarstan enterprises, it is worth highlighting, first of all, petrochemists, whose affairs after last year's fall are on the rise again. The revenue of the largest Russian manufacturer of synthetic rubbers Nizhnekamskneftekhim in the first quarter of 2020 increased by 44% to a record 54.9 billion rubles, follows from the statements of the joint-stock company.


MRC

MOSCOW (MRC) -- Crude oil futures were steady during the mid-morning trade in Asia June 25 following a deal on the US infrastructure package, with the market expecting only a moderate increase in OPEC+ supply August onwards, reported S&P Global.

At 11:00 am Singapore time (0300 GMT), the ICE August Brent futures contract was down 8 cents/b (0.11%) from the previous settle at USD75.48/b while the NYMEX August light sweet crude contract was down 6 cents/b (0.08%) at USD73.30/b.

On June 24, US President Joe Biden announced that a bipartisan agreement has been reached on a USD973 billion infrastructure plan, which includes more than half a trillion dollars of new spending. The announcement led to higher risk appetite in the broader financial markets, with crude also benefiting from the bullish sentiment.

Crude also remains supported by a rosy demand outlook, as vaccination rates around the world rise, and as countries roll back mobility restrictions.

Against the backdrop of rising global oil demand, the OPEC+ coalition has met with calls to raise oil production to prevent surging energy prices from undermining the global economic recovery. In a virtual meeting with OPEC Secretary General Mohammad Barkindo on June 24, Indian oil minister Dharmendra Pradhan raised concerns over inflationary pressure from increasing oil prices and made a renewed call for OPEC+ to phase out its production cuts.

OPEC+ is currently holding crude production at 6.2 million b/d below October 2018 levels and intends to taper this output cut to 5.76 million b/d in July. OPEC+ alliance's July 1 meeting is expected to provide guidance into output levels for August, and while reports have emerged that the coalition is considering tapering its production quota, most analysts expect a tempered rise of around 500,000 b/d.

We remind that as MRC informed earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

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) -- LyondellBasell (LBI), the world's largest polyolefins producer, reported an equipment failure at its La Porte linear low density polyethylene (LLDPE) plant, which forced the company to shut down the 355,000 tons/year unit without a return schedule, according to CommoPlast with reference to the company's official letter to its customers on 17 June 2021.

LyondellBasell is currently evaluating the impact of the event on its ability to supply the materials.

As MRC reported earlier, LBI declared a force majeure (FM) on shipments of some polypropylene (PP) grades from its Wesseling plant in Germany as of May 20. Thus, the FM was declared for all PP Moplen grades produced at this plant with the capacity of 238,000 mt/year. However, the reactor issies, which resulted in force majeure, were found at one line of this plant with the capacity of 135,000 mt/year.

Besides, LBI also declared FM on supplies of some PP grades from its Ferrara plant in Italy as of May 3. This plant is able to produce 285.000 tons/year of PP. At the time of press, no details were shared regarding the reason or duration of the FM.

According to MRC's ScanPlast report, April LLDPE shipments to the Russian market increased to 56,810 tonnes from 35,810 tonnes a year earlier. Local producers raised their PE output. LLDPE shipments to the market were 132,470 tonnes in January-April 2021, up by 4% year on year.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC