Huge explosion and fire destroyed Ming Dih EPS plant in Thailand

MOSCOW (MRC) -- A huge explosion and fire destroyed Taiwanese-owned Ming Dih's expandable polystyrene (EPS) plant in Samut Prakan, Thailand and caused extensive damage to surrounding communities in Bang Phli district early Monday morning, reported Bangkok Post.

The explosion occurred at about 2.50am at the plant, which produces 50,000 mt/year of EPS. There were five or six warehouses in the factory compound, where 50 tonnes of chemicals were stored.

The explosion was followed by a massive fire which engulfed the entire factory and caused extensive damage to buildings and houses within in a one-kilometre radius.

More than 30 fire engines rushed to the scene. One rescuer was killed and more than 60 people injured in an overnight explosion and fire at a chemical factory that continued to send black smoke into the sky in Samut Prakan late into Monday afternoon.

Thus, rescue foundations reported one of their firefighters was killed by the fire and 12 others were injured. Fifty other people were also hurt.

The fire was initially believed to have been brought under control around dawn, but smoke continued to rise above the gutted ruins.

Ming Dih operates a 180,000 mt/year unit in Taiwan, a 100,000 mtyear unit in China and a 50,000 mtyear unit in Thailand.

As MRC informed before, Ming Dih Group expanded its EPS plant in Thailand in the third quarter of 2014. The expansion lifted the plant’s capacity by 10,000 mt/year to 50,000 mt/year.

According to MRC's ScanPlast report, May EPS imports into Russia were 1,520 tonnes versus 1,060 tonnes a month earlier and 1,040 tonnes in May 2020. EPS imports into the country grew by 4% year on year in January-May 2021: from 6,300 tonnes to 6,600 tonnes. Styrochem's imports increased over the stated period by 9% year on year: from 2,700 tonnes to 2,900 tonnes. Deliveries of Chinese EPS were reduced by more than three times: from 1,610 tonnes to 470 tonnes.
MRC

MOSCOW (MRC) -- US crude stocks fell for the sixth straight week as refiners ramped up output in response to rising demand, reported Reuters with reference to the Energy Information Administration.

Crude inventories fell by 6.7 million barrels in the week to June 25 to 452.3 million barrels, a steeper drop than the 4.7 million barrels expected by analysts in a Reuters poll.

That drawdown came as a result of increased refining activity, with crude runs rising by 187,000 barrels per day to bring refinery utilization rates to 92.9% of total capacity, the EIA said.

"Generally the report reflects the strong reopening of the economy, very strong demand and refiners are responding," said Phil Flynn, senior analyst at Price Futures Group.

Gasoline production rose to 9.6 million bpd, as the four-week average of product supplied came in at nearly 20 million bpd, another signal of improved U.S. demand for fuel. Product supplied, a measure of demand, is far outpacing 2020's coronavirus-influenced slump, but is still about 4% short of 2019's demand.

US gasoline stocks rose by 1.5 million barrels in the week to 241.6 million barrels, while analysts hae expected a 886,000-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell by 869,000 barrels versus expectations for a 486,000-barrel rise.

Net US crude imports fell in late June by 603,000 barrels per day, EIA said.

As MRC informed earlier, OPEC and its allies appear in striking distance of a deal on production quotas, discussing proposals that call for an output increase of about 2 million b/d from August to December to meet recovering global oil demand. If agreed, the OPEC+ alliance's collective production cuts would shrink by about one-third by the end of the year to about 3.76 million b/d, from July's 5.76 million b/d.

We remind that 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) -- PetroChina said that the company is estimated to swing to profits from losses in the first half of this year amid broad demand recovery and strengthening oil prices, said the company.

PetroChina made an estimated profit of 45bn-60bn yuan (USD7.3bn-9.3bn) in January-June this year after it declared a net loss of Yn30bn in the same period of 2020. Its estimated first-half 2021 profit would also be up sharply from Yn28.4bn in January-June 2019.

As it was earlier said, PetroChina's first-quarter revenue was up 8.4% at 551.9 billon yuan. Asia's biggest oil and gas producer swung to a 27.7 billion yuan ($4.28 billion) first-quarter net profit, having posted a loss in the same period last year, and announced that it is setting up a new investment vehicle with a focus on strategic assets and low-carbon projects.

As per MRC, PetroChina Jilin Petrochemical, a subsidiary of China's state-owned oil giant PetroChina, shut polyethylene (PE) production in Jilin province (Jilin, northeast China) on 1 June for routine maintenance. The work at this facility, which includes a 320,000 tonnes of HDPE line and a 290,000 tonnes LLDPE line, is expected to take approximately 45 days.

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.

PetroChina is a Chinese state-owned oil company engaged in the exploration, development and production of oil and natural gas, as well as the refining, transportation and distribution of oil and petroleum products, petrochemical products and the sale of natural gas. CNPC owns 86% of the company's shares. PetroChina again became the most valuable energy company in the world on April 9, 2015, surpassing ExxonMobil in terms of capitalization.
MRC

MOSCOW (MRC) -- Shell began restarting the second stage of the hydrocracker at its 230,611-bpd Norco, Louisiana, said sources familiar with plant operations, said Reuters.

A Shell spokesman did not reply to a request for comment. The second stage of the 40,000-bpd hydrocracker was shut on June 18. The first stage of the hydrocracker continued to operate, the sources said.

Shell issued a notice on Thursday to nearby residents in the Norco area of the start-up of an unidentified unit, which may cause flaring and greater noise at the refinery.

As per MRC, by the end of 2021, Royal Dutch Shell will have just one operating crude oil refinery in the United States: The 227,400-bpd refinery in Norco, Louisiana. Sources familiar with Shell’s plans say the company will likely hang on to the Norco refinery because of its role in supplying the company’s chemical plants. "Norco is integrated with them," one of the sources said of the refinery, 25 miles (40 km) west of New Orleans.

As MRC informed previously, in late May, 2021, 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 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.

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

MOSCOW (MRC) -- A blast at Romania's biggest crude oil refinery killed one person and injured five others, authorities and the company which runs the Petromidia plant on the Black Sea said, as per Reuters.

Video footage from a nearby beach in the coastal resort of Mamaia showed black smoke rising from the area next to the refinery and some tourists reported hearing a loud bang. Rompetrol Rafinare, part of KMG International Group, said the explosion was inside the diesel oil refining installation, and that processes had been halted safely.

"Five of our colleagues are in medical care at Constanta County Hospital, and we are sorry to inform you that a person has been identified as deceased," it added in a statement.

Rompetrol declined to comment on the likely financial damage but said the fire had been "isolated and stabilised".

Raed Arafat, head of the Department for Emergency Situations said the danger of further blasts was diminished dramatically as firefighters have been putting out the fire.

Petromidia is based on the shores of the Black Sea in Navodari, 20 km (12.5 miles) north of the country's biggest port, Constanta. It said it processed a total of 1.26 million tonnes of raw materials in the first quarter of this year, a similar level to a year before, and had been running at 84% capacity. Rompetrol was trading 1.96% down at 0.05 lei by 1225 GMT.

As MRC informed earlier, the petrochemical activities of Romanian Rompetrol Group have been integrated in the refinery arm since November, 2013, in a move designed to cut costs and increase the overall efficiency of the group’s operations. "The integration of the two companies represents the continuation of Rompetrol Group’s strategy to concentrate the production activity in a single activity", said then Rompetrol in a statement.

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.

Rompetrol, the only producer of PP and PE in Romania, is majority owned by Kazakhstan’s KMG International Group with a 54.63% shareholding, with the Romanian government owning the remaining 44.7%.
MRC