McDermott selected for licensed modular unit for largest PE integration project

MOSCOW (MRC) -- McDermott International, Ltd announced it has been awarded an engineering and procurement contract for a spent caustic treatment solution on the Gas Chemical Complex (GCC) project from Heat Transfer Technologies DMCC (HTT), as per the company's press release.

The GCC project is owned by Baltic Chemical Plant LLC, a subsidiary of RusGazDobycha. It is the largest polyethylene (PE) integration project in the world and is located near Russia's shores in the Gulf of Finland.

"This award is a testament to our ability to leverage our suite of capabilities to provide integrated solutions throughout the lifecycle of a project," said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa. "Our proven experience delivering world-class polyethylene projects make us the ideal partner to continue supporting the GCC project."

McDermott's scope includes license technology rights, basic design engineering package (BDEP), module detailed engineering design and full procurement of main equipment. The modularized solution for the spent caustic treatment solution will be an integral part of the GCC project and enable the project's annual production of up to 3 million tons of PE.

As MRC informed previously, McDermott International, Ltd has been also selected by LACC, LLC, a joint venture between Westlake Chemical Corporation and Lotte Chemical Corporation, to provide engineering, procurement and construction for a seventh heater addition to its LACC Ethane Cracker Facility in Westlake, La, USA. Schematic image for seventh heater addition to LACC Ethane Cracker Facility in Westlake, La.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased.

McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott's innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.

1. China June diesel exports more than double YOY amid record refinery output

MOSCOW (MRC) -- China's June diesel exports rebounded from May and more than doubled from the same period last year, as refiners shipped out more surplus barrels amid record refinery production, according to Hydrocarbonprocessing. Diesel shipments last month reached 2.36 million tons, versus 1.68 million tons in May and 1.04 million tons in June 2020, data from the General Administration of Customs showed on Sunday. Chinese refineries processed at record rates in June as plants returned from maintenance and due to the start-up of a new crude unit at private mega refiner Zhejiang Petrochemical Corp in April.




MRC

MOSCOW (MRC) -- Nearly 150 workers have been evacuated or are due for evacuation from Shell's Shearwater project in the North Sea since a COVID-19 outbreak emerged at the end of June, the company said July 20, as the industry called for an exemption from self-isolation rules for offshore workers, reported S&P Global.

So far, 26 people at the Shearwater oil and gas hub have tested positive for COVID-19, with another 122 categorized as having been "close contacts" of those infected, Shell told S&P Global.

Most have already been flown to shore, with a small number isolating at the facility prior to returning to shore, Shell said, adding that the spread of infection was slowing, with only five cases detected in the last seven days of the outbreak.

Shearwater is the focus of concerns that rising UK infection rates could spread to the offshore oil and gas sector, which normally provides 1 million b/d of oil including the Brent and Forties benchmark grades, and meets about half the country's gas needs.

Shearwater is currently shut down for summer maintenance and for work on the redevelopment project, which is central to Shell's realignment of its North Sea strategy. The project is intended to redirect gas flows from a cluster of North Sea fields, some of them newly developed and operated by other companies, to St Fergus in Scotland and on to petrochemical facilities, rather than being sent ashore at Bacton, eastern England.

The project had already suffered delays due to the pandemic and last year's price crash, having originally been scheduled to come on stream in 2020.

As MRC informed before, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries 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) -- Oil dropped towards USD68 a barrel on Tuesday, extending the previous session's steep slide, pressured by concern that rising COVID-19 infections could weaken demand again just when OPEC+ is increasing supply, reported Reuters.

Monday's selloff had pushed oil to a two-month low and hit other riskier assets. While equities avoided a new selloff on Tuesday, US.Treasury and German bond yields also slipped as a reminder that investors remained worried.

"As things stand, it is hard to see prices staging a comeback unless virus jitters are brought back under control," said Stephen Brennock of oil broker PVM.

"The market is clearly unsettled about the demand outlook."

Brent crude fell 23 cents, or 0.3%, to USD68.39 a barrel by 1353 GMT, having slid by 6.8% on Monday. U.S. crude for August , which expires later on Tuesday, was down by USD1.19, or 1.8%, at USD65.23 after falling 7.5% on Monday. The September US crude contract was down 1.6% at USD65.31.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed on Sunday to increase output from August, unwinding more of the supply curbs put in place when the pandemic struck last year.

The Delta coronavirus variant is now the dominant strain worldwide, US officials said on Friday. Still, Julius Baer analyst Carsten Menke said it was unlikely to jeopardise the recovery of global growth, though it could cause "regional hiccups".

The coronavirus concerns outweighed support from tight oil supply in the near term. Crude inventories in the United States are expected to fall for a ninth week. OPEC, meanwhile, expects global oil demand to grow by 6.6% in 2021.

"Global demand still appears to be recovering dynamically, so the oil market should end up in supply deficit in the coming months despite the production hikes to be implemented by OPEC+," said Eugen Weinberg of Commerzbank.

As MRC informed earlier, Saudi Arabia, the world's top crude oil exporter, will supply full contractual volumes of August-loading crude to at least five Asian customers. However, Saudi Aramco has turned down two of the buyers' requests for extra barrels.

We remind that Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), said in June he expects the company's deal with Saudi Aramco to materialise this year. 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.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- The oil market is largely convinced that a strong recovery in demand is imminent, based on the view that the world is recovering from the coronavirus pandemic and economies are rebounding. Asia may be a late arrival to the impending crude oil party, reported Reuters.

Although this may be true for North America and Europe, the top oil-consuming region of Asia is looking somewhat less optimistic, with crude demand in top importers China and India presenting a mixed outlook.

China, the world's biggest crude buyer, looks set for another month of modest imports in May, as several refineries undergo scheduled maintenance.

India, Asia's second-biggest importer, also is on track to record a soft May import number, even before the impact of the current coronavirus wave on demand shows up in monthly purchases.

While these are both likely temporary factors, it does signal that the pick-up in Asia's crude oil demand may not be as rapid as what most analysts are expecting for the rest of the major consuming regions.

As MRC informed earlier, China's crude oil imports fell 3% from January to June versus a year earlier, in the first first-half contraction since 2013, as an import quota shortage, refinery maintenance and rising global prices curbed buying. Imports totalled 40.14 million tonnes last month, data released by the General Administration of Customs showed on Tuesday, equivalent to 9.77 million barrels per day (bpd).

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC