Sea freight rises to its highest in five years

MOSCOW (MRC) -- The cost of sea freight reached a five-year high in late July 2021, reported Vedomosti.

Thus, as of July 29, the World Container Index (WCI, World Container Index), published by the international analytical agency Drewry, was USD9,330 for the transportation of a standard 40-ft container (FEU), which is the highest index value for, at least, the last five years and 368% higher year on year.

Moreover, the growth rate accelerated - in just a week from July 22 to July 29, WCI gained 4%.

On some routes, the cost of transportation is significantly ahead of the average indicators, which are reflected by the WCI.

According to Vladimir Frenty, a leading specialist in intermodal transportation at the Daxter logistics company, today's freight rates for transportation in the China-Europe direction exceed USD15,000 per FEU.

As MRC reported earlier, in June, 2021, ZapSibNeftekhim (part of SIBUR), Russia's largest polymer production plant, began shipping its products to Latin America, Southeast Asia (Southeast Asia), Africa and South Africa. It is noted that market factors and conditions in the global market at the beginning of 2021, which led to a shortage of polymers in different regions, contributed to the expansion of the sales geography of ZapSibNeftekhim. The complex's production is also supplied throughout Russia, to the CIS countries and Europe, Turkey and China.

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.
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MOSCOW (MRC) -- Angarsk Polymers Plant has resumed its low density polyethylene (LDPE) production after a scheduled turnaround, according to ICIS-MRC Price Report.

The plant's customers said Angarsk Polymers Plant had brought on-stream its LDPE production by 2 August after a scheduled an long maintenance. The outage began on 21 June and virtually lasted over 30 days. The plant's annual production capacity is about 75,000 tonnes.

It should also be noted that Gazprom neftekhim Salavat shut its polyethylene (PE) production capacities for one month on 20 July. The resumption of PE production is scheduled for 20 August. Gazprom neftekhim Salavat' s LDPE and high density polyethylene (HDPE) production capacities are 45,000 and 120,000 tonnes per year, respectively.

Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) is the only petrochemical full-cycle plant in Eastern Siberia. The bulk of the produced ethylene is used by the plant for the production of LDPE, styrene monomer (SM) and polystyrene (PS). Straight-run gasoline and hydrocarbon gases, mainly produced by OAO Angarskaya NHK, are the feedstocks for the plant.
MRC

MOSCOW (MRC) -- AVEVA, a global leader in industrial software driving digital transformation and sustainability, has recently announced that it has signed a partnership agreement with RIB Software (RIB), a global leader in digital technologies for construction, to enhance AVEVA’s Project Execution portfolio offering for process and plant industries, as per the company's press release.

The integration will extend the AVEVA Unified Project Execution solution to include new capabilities from the RIB MTWO platform such as enhanced estimation and project cost controls, more powerful dashboards and KPI monitoring, and optimized construction management with full Connected Worker capabilities in the Cloud.

Together with RIB, AVEVA will connect project teams and allow them to collaborate more effectively by bringing together the engineering, procurement and construction functions to deliver a true design to delivery solution. AVEVA and RIB have committed to further integration and expansion of the new platform that will bring together AVEVA Enterprise Resource Management and AVEVA Contract Risk Management with RIB’s iTWO and MTWO solutions that create a world leading end-to-end integrated, platform solution for multi-dimensional digital construction.

Benefits include advanced estimation and cost controls for more accurate bidding, enhanced project monitoring through 4D and 5D simulations, tighter project management, improved cash flow control, as well as a reduction of waste and optimized use of scarce resources for enhanced sustainability. The joint offering will help the industry further align to emerging best practices that rely on collaboration, such as advanced work packaging (AWP), integrated project delivery, strategic procurement and collaborative contracting.

The enhanced AVEVA Unified Project Execution platform will help capital project customers to connect teams, visualize data and reduce project execution risk by using artificial intelligence (AI) and the Cloud to boost safety, efficiency, and sustainability.

As MRC reported previously, in May 2021, Maire Tecnimont Group, through its subsidiary Tecnimont, signed a Memorandum of Understanding (MoU) with AVEVA to create new digital predictive and prescriptive maintenance services that drive enhanced business outcomes.

We remind that Maire Tecnimont S.p.A. has recently announced that its subsidiaries Tecnimont S.p.A. and Mumbai-based Tecnimont Private Limited were awarded an EPCC (Engineering, Procurement, Construction and Commissioning) Lump Sum contract by Indian Oil Corporation Limited (IOCL), for the implementation of a new paraxylene (PX) plant and the relevant offsites facilities. The plant will be located in Paradip, in the State of Odisha, in Eastern India. The overall value of the contract is about USD450 million.

PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, May estimated PET consumption in Russia increased by 15% year on year to 85,850 tonnes. Russia's overall estimated PET consumption totalled 349,940 tonnes in January-May 2021, up by 22% year on year.

AVEVA is a global leader in industrial software, driving digital transformation and sustainability. By connecting the power of information and artificial intelligence with human insight, AVEVA enables teams to use their data to unlock new value. We call this Performance Intelligence. AVEVA’s comprehensive portfolio enables more than 20,000 industrial enterprises to engineer smarter, operate better and drive sustainable efficiency. AVEVA supports customers through a trusted ecosystem that includes 5,500 partners and 5,700 certified developers around the world. The company is headquartered in Cambridge, UK, with over 6,500 employees and 90 offices in over 40 countries.
MRC

MOSCOW (MRC) -- Westlake Chemical Corporation has announced plans for one of its subsidiaries to acquire the parent company of Dimex LLC, from Grey Mountain Partners, a private equity firm, according to BusinessWire.

Based in Marietta, Ohio, Dimex produces a variety of consumer products made from post-industrial-recycled (PIR) polyvinyl chloride (PVC), polyethylene (PE) and thermoplastic elastomer (TPE) materials, and has annualized sales of approximately USD100 million. These consumer products include landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls.

The proposed transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to close during the second half of 2021.

“Westlake’s pending acquisition of Dimex underscores the company’s longstanding commitment to stewardship of the environment and recycling, and to taking actions that contribute to a sustainable, circular economy”

Since its founding in 1991 as a regional compounder and extruder, Dimex has grown its consumer and commercial products that are sold into growing markets. Following its acquisition by Grey Mountain Partners in 2013, the company expanded its product development resources, which resulted in the introductions of No-Dig Landscape Edging, MotionTex Fitness Equipment Mats, and GrillTex Under the Grill Protective Deck and Patio Mats. Dimex has also established relationships with major retailers in the United States and has developed its commercial distribution and online commerce channels as well. Over the last four years, Dimex has secured 29 US patents for its products.

As MRC reported earler, in July 2021, McDermott International, Ltd has been 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.

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.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

MOSCOW (MRC) -- BP raised Aug. 3 its 2025 oil price assumption by USD5/b to USD60/b to reflect an expected supply constraint, while promising a recovery in its own production volumes following a maintenance-related slump in the second quarter, reported S&P Global.

In its Q2 results statement, the UK oil company spoke of an "improving outlook" in the industry environment and said its own performance was "resilient," even as production in its upstream oil production and operations unit fell nearly 25% on the year at 1.25 million b/d of oil equivalent. Its upstream production slump was offset by more stable production in the company's LNG-focused gas and low-carbon energy unit and at Rosneft, in which BP holds a near 20% stake.

BP said its third-quarter production should be higher due to the completion of maintenance, which has held back many of the major producers in recent months, as well as the ramp-up of key new projects.

Production is expected to get a boost from the startup of four main projects in Q2, in India, Egypt, Angola and the US Gulf of Mexico, the company added.

BP said the oil market was rebalancing and global stocks should revert to historical levels in the first half of 2022. It consequently set out new Brent oil price assumptions, raising its 2025 forecast to USD60/b, maintaining its 2030 forecast at USD60/b, but lowering its 2040 forecast to USD55/b from USD60/b to reflect an acceleration in the transition to low-carbon energy. BP also lowered its 2050 price assumption to USD45/b from USD50/b.

In downstream, where the company struggled to capitalize on broadly improved margins in Q2, "realized refining margins are expected to improve slightly supported by stronger demand and wider North American heavy crude oil differentials," BP said.

As MRC reported before, BP and Lukoil want to quit their Iraqi energy projects due to the current investment environment, the country's oil minister said earlier this month, as OPEC's second biggest producer faces an exodus of international oil companies that want to exit unattractive contracts. Lukoil wants to sell its stake in West Qurna 2 to Chinese companies.

We remind that Russian energy major Lukoil (Moscow) is studying several potential petrochemical projects in Russia and Bulgaria, with investment decisions expected to be made on two of them in 2021.

Thus, Lukoil announced an investment decision in June, 2019, to proceed with a 500,000-metric tons/year polypropylene (PP) plant at its Kstovo refinery. In September this year it selected Lummus Technology’s Novolen PP technology and basic design engineering for the facility’s production unit. Kstovo is one of Lukoil’s largest crude refineries in Russia with a throughput of 17 million metric tons/year, with the company recently adding a catalytic cracking unit that almost doubled the refinery’s production of propylene feedstock to 300,000 metric tons/year.

At Budennovsk in Russia’s far south west, the company’s Stavrolen petchems complex currently has the capacity to produce 350,000 metric tons/year of ethylene, 300,000 metric tons of polyethylene (PE), 120,000 metric tons/year of PP, and 80,000 metric tons of benzene. Lukoil has for several years been considering construction of a new gas chemicals plant at Stavrolen to crack more ethane extracted from associated petroleum gas produced by its oil and gas fields in the north of the Caspian Sea. The potential new plant would raise Stavrolen’s ethylene and PE output to around 600,000 metric tons/year each, and increase PP production to 200,000 metric tons/year.

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.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
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