ICIG announces appointment of new president of Vynova Group

ICIG announces appointment of new president of Vynova Group

MOSCOW (MRC) -- International Chemical Investors Group (ICIG) and Vynova Group announced the appointment of Christophe Andre as new President of Vynova Group, with effect from 1 September 2021, according to Bordeless.

Christophe Andre will succeed Stefan Sommer, who will retire as President of Vynova Group and assume the role of Chairman of the Supervisory Board of Vynova Holding.

Stefan Sommer (63) has held the role of President of Vynova Group since the company’s foundation on 1 August 2015. He will retire on 1 September 2021 and will join Vynova’s parent company ICIG on 1 January 2022 as Chairman of the Supervisory Board of Vynova Holding. Stefan Sommer will also continue to represent Vynova Group in key European PVC- and plastics-related industry associations such as VinylPlus, the European Council of Vinyl Manufacturers (ECVM) and PlasticsEurope. Until the end of 2021, he will support the Vynova Management Board in the transition to his successor.

Christophe Andre (50) holds engineering and economics master degrees from Telecom Paris and ESSEC as well as an MBA from INSEAD. He has held various international senior management positions at specialty chemicals manufacturer Rohm and Haas, where he served as European head of the Monomers and Adhesives business lines, and he has held the position of Managing Director at paper manufacturer Arjowiggins Graphic. In his last roles, Christophe Andre served at specialty chemicals company Arkema as Group President of the global Thiochemicals activities and, since 2016, as a member of Arkema’s Executive Committee in charge of the Advanced Materials business portfolio.

As MRC informed previously, in late October, 2020, European chlor-alkali and polyvinyl cloride (PVC) producer VYNOVA resumed operations at its PVC plant in Beek, the Netherlands. The producer was also preparing to restart production at its Mazingarbe plant in France then. PVC plants were then restarted after the return of the producer’s monomer vinyl cloride (VCM) unit in Tessenderlo, Belgium from a maintenance shutdown, which supplies feedstock to both PVC plants. Vynova’s Beek plant has a PVC production capacity of 225,000 tons/year, while the Mazingarbe plant can produce 250,000 tons/year of PVC. Meanwhile, the company’s Tessenderlo site produces 740,000 tons/year of VCM.

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia reached 14,600 tonnes in the first five months of 2021, up by 48% year on year. At the same time, exports decreased by 10% year on year.

VYNOVA is a leading European PVC and chlor-alkali company. It operates production sites in five countries and has over 1,250 employees, realising an annual turnover of EUR1 billion. The company's products play a key role in manufacturing numerous industrial products and consumer goods that improve the quality of life. Established in 2015, VYNOVA is the chlor-vinyls platform of the International Chemical Investors Group (ICIG).
MRC

India fuel sales grow in June on eased coronavirus-related restrictions

MOSCOW (MRC) -- Indian state refiners' gasoline and gasoil sales rose in June compared with a month earlier, preliminary industry data showed on Thursday, as states across the country eased coronavirus-related restrictions as cases fell, according to Hydrocarbonprocessing.

Gasoline sales by state refiners rose 29.4%, while diesel sales were up 18.5% in June compared with May, the data showed. Sales had declined by about a fifth in May from a month earlier due to lockdowns across the country.

Sales of gasoline were up 5.7% from the same period in the previous year, but diesel sales were down 1.8%, the data showed.

Meanwhile, 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 worldэs 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

COVID-19 - News digest as of 06.07.2021

1. 76% of employees have antibodies to COVID-19 at Tomskneftekhim

MOSCOW (MRC) --- 76% of employees have antibodies to COVID-19 at Tomskneftekhim, the press service of the enterprise reports. Nevertheless, at the Tomsk enterprises of SIBUR, a mandatory mask regime remains, as well as the need to observe social distance in personal interaction and other measures to prevent infection with COVID-19. The press service of the enterprise notes that the collective immunity at Tomskneftekhim has developed from people who have had COVID-19, including asymptomatic ones, as well as vaccinated employees. Before the start of the mass vaccination against COVID-19 in Tomsk, all employees of Tomskneftekhim were tested for antibodies. SIBUR, as a responsible employer, contributes to providing employees with the maximum information to make an informed and balanced decision, as well as to provide them with the opportunity to get vaccinated.

MRC

Crude oil futures increase in Asia on fears of tightening supply after OPEC+ cancels meeting

MOSCOW (MRC) -- Crude oil futures extended overnight gains during mid-morning trade in Asia July 6 on fears that oil demand will soon outstrip supply after the OPEC+ coalition, consisting of OPEC members and other oil producers, cancelled its July 5 meeting without ratifying an increase in production for August onward, reported S&P Global.

At 11:16 am Singapore time (0316 GMT), the ICE September Brent futures contract was up 25 cents/b (0.32%) from the previous close at USD77.41/b, while the NYMEX August light sweet crude contract was up 30 cents/b (4%) at USD76.64/b. The ICE Brent marker had settled 1.30% higher July 5 at USD77.16/b, the highest on record since Oct. 29, 2018.

The rise in the international oil markers come after OPEC+ called off their July 5 meeting, which was to mark the third day of official talks, necessitated by the coalition's failure to reach an agreement to ease production cuts from August onwards.

The producer group has reached a tentative agreement to boost collective crude output by 400,000 b/d each month from August to December, but Saudi Arabia wanted to tie the production increases to lengthening the supply management pact through the end of 2022 from the current April 2022 expiry.

The UAE, however, refused to sign off on the extension, insisting that its baseline production level from which its quota is determined be raised first. The UAE's baseline under the current pact, determined by its October 2018 production level, is 3.168 million b/d, but it now claims a capacity closer to 4 million b/d. UAE officials have also highlighted that the country has about 35% of its capacity shut, compared with an average 22% for other members.

Since all OPEC+ decisions must be unanimous, UAE's refusal to sign off on the extension, and by association the production plan, means that the alliance will rely on the fallback agreement, which calls for output quotas to remain flat at July levels. The coalition is withholding 5.8 million b/d of output as of July.

Analysts say that this would lead to an undersupplied market, with oil demand expected to rise as countries around the world emerge from pandemic-related lockdowns.

Meanwhile, 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

Lukoil acquires 50% stake in Area 4 in Gulf of Mexico

Lukoil acquires 50% stake in Area 4 in Gulf of Mexico

MOSCOW (MRC) -- Lukoil has entered into an agreement to acquire a 50% operator interest in the Area 4 offshore project in Mexico through the acquisition of the operator's holding company, said the Russian oil company.

"The transaction value is USD435 million plus expenditures incurred in 2021 as of the transaction completion date. The completion of the transaction is subject to certain conditions, including approval by the Mexican authorities," Lukoil said.

The project includes two plots with a total area of ??58 sq. km, located on the shelf of the Gulf of Mexico, 42 km from the coast. The sea depth in the area of ??the blocks is 30-45 m. Within the blocks there are two oil fields Ichalkil and Pokoch with recoverable hydrocarbon reserves of 564 million barrels of oil equivalent, of which more than 80% is oil.

Currently, the development of the fields is being completed, the start of production is scheduled for the third quarter of 2021. The project is being implemented in three phases with an expected maximum daily production of more than 115,000 barrels of oil equivalent.

The project is being implemented under the terms of a production sharing agreement signed in 2016 for a period of 25 years with the possibility of extension for up to 10 years. The partner in the project is the oil and gas company PetroBal (part of the Mexican conglomerate GrupoBAL) with a 50% participation interest.

As MRC reported earlier Lukoil plans to restore investments at pre-crisis levels in 2022, as President and co-owner of Lukoil Vagit Alekperov said in an interview with TASS on the sidelines of the St. Petersburg International Economic Forum in June.

Amid the recovery in the price environment, Lukoil has increased the target for the volume of capital expenditures in 2021 compared to the initial forecast. Now it is Rb460-490 billion, excluding the service project "West Qurna - 2". Previously, the target for capital expenditures was Rb450 billion.

It was also reported that Lukoil plans to invest about USD3 billion in petrochemical projects in the next 6 years, V. Alekperova also told reporters in June. At the same time, the company does not plan to adopt a separate petrochemical strategy, he said then.

Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include operations for the exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest privately-owned oil company in the world in terms of proven hydrocarbon reserves. The structure of Lukoil includes one of the largest petrochemical enterprises in Russia - Stavrolen.
MRC