Colonial Pipeline halts fuel deliveries due to Hurricane Ida

MOSCOW (MRC) -- Colonial Pipeline Co, the largest petroleum products pipeline in the United States, said it would temporarily halt fuel deliveries from Houston to Greensboro, North Carolina, due to Hurricane Ida, according to Hydrocarbonprocessing.

The pipeline operator, which carries nearly half the fuel consumed along the US East Coast, said supplies would continue to be available at its terminals throughout the Southeast. It expects to resume full service when it is safe to do so, it said in a note to shippers.

Colonial suffered a crippling cyberattack earlier this year that disrupted fuel supplies for almost a week, leaving thousands of gas stations in the Southeast without fuel and prompting airlines to reroute planes to get jet fuel.

Hurricane Ida prompted US Gulf of Mexico oil operators to shut in some 95% of crude production on Sunday, while refineries that produce gasoline and jet fuel along the Gulf Coast are shutting plants or reducing production due to the storm.

Phillips 66 shut its Alliance plant in Belle Chasse, Valero Energy temporarily halted operations at its Meraux and St. Charles refineries, and Exxon Mobil Corp reduced production at its Baton Rouge refinery ahead of the storm's landfall. All the facilities are in Louisiana.

As MRC reported before, the fourth-largest US refiner Phillips 66 said earlier this month that it put the smaller of its two Louisiana refineries up for sale amid continued losses and an uncertain future for motor fuels. The company is holding talks with a potential buyer on the sale of its 255,600 barrel-per-day (bpd) Alliance refinery in Belle Chasse, Louisiana, according to two people familiar with the matter. The identity of the potential buyer could not immediately be learned. US refiners have closed or sold oil processing plants as the COVID-19 pandemic slashed demand for gasoline and jet fuel, generating losses for the industry.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Hurricane Ida pummelled US Gulf Coast energy suppliers, knocking out most of the region's offshore wells, nearly half its motor fuel production and closing energy-export ports, reported Reuters.

The storm moved into Mississippi on Monday after leaving a trail of destruction in Louisiana and rampaging through US offshore oil and gas fields. Hundreds of oil production platforms were evacuated and more than 1.3 million homes and businesses in Louisiana and Mississippi were without power.

Production losses - including at six Gulf Coast refineries - will lift retail gasoline prices by 5 to 10 cents a gallon, tracking firm GasBuddy said. Crude oil eased on Monday after an earlier rally to a four-week high.

Colonial Pipeline, the largest US fuel pipeline network, halted motor fuel deliveries from Houston to Greensboro, North Carolina. A spokesman on Monday did not say when it expects to resume full operations. Its lines supply nearly half the gasoline used along the US East Coast and an extended May shutdown led to fuel shortages.

Some 1.74 million barrels of oil output were lost to shut-ins on Sunday, an amount greater than Mexico's daily production. US Gulf of Mexico natural gas also was cut by 94%, or 2 billion cubic feet, a government tally found.

Six refineries that process 1.92 million barrels per day of oil into gasoline and other petroleum products, either shut or curtailed some production, sources familiar with the operations and companies said. That includes two Valero Energy plants in Louisiana that combined process 335,000 barrels per day and Phillips 66's 255,000 bpd Alliance, Louisiana, refinery.

Oil companies on Monday are beginning damage surveys of offshore platforms before taking crews back and restoring any output. Royal Dutch Shell plans a flyover of its offshore properties.

We remind that 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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Kazanorgsintez PJSC has published consolidated interim financial statements in accordance with International Financial Reporting Standards for the six months of 2021, said the company.

According to the reported data, the profit of the enterprise amounted to Rb14.7 bns, which is 3.6 times higher than the similar indicators of the crisis in the first half of 2020.

Revenue of Kazanorgsintez PJSC for the first half of this year reached 52.7 billion rubles, which is 68% higher than the results for the same period last year. The export volume amounted to 8.4 billion rubles. The domestic market sold products worth 44.3 billion rubles. Compared to the comparable period, the share of exports in the first half of 2021 decreased from 23% to 16%. The enterprise made such a reorientation in the face of reduced supply on the Russian market from foreign polymer producers.

Plastics accounted for Rb46.3 bn in the total revenue of the enterprise. For other petrochemical products - Rb5.2 bn. Sales of other petrochemical products include the sale of bisphenol A, ethylene glycol, monoethanolamine, acetone and other petrochemical products.

Funds allocated for investment activities in the first half of 2021 amounted to Rb13.3 bns. This is 5.6 times higher than investment costs for 6 months of 2020.

Earlier it was reported that the subsidiaries of the Italian engineering company Maire Tecnimont S.p.A. received a contract for the construction of a new Kazanorgsintez plant (KOS, part of TAIF) for the production of high-pressure polyethylene (LDPE) / ethylene vinyl acetate (EVA) at the existing KOS complex in Kazan (Tatarstan, Russia). The capacity of the new enterprise will be 100,000 tonnes of LDPE / EVA per year.

According to MRC's ScanPlast, in June the estimated consumption of LDPE in Russia fell to 45,190 tonnes against 47,780 tonnes a month earlier. Russian manufacturers have increased export sales of polyethylene (PE). In the first six months of the year, the estimated consumption of LDPE in Russia amounted to 280,850 tonnes, which is 2% less than a year earlier. PE output decreased, while export volumes increased.

Kazanorgsintez PJSC is one of the largest enterprises in the Russian Federation (TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total. The annual production volume is 1.6 million tonnes. The enterprise is the largest Russian manufacturer of low-pressure polyethylene (HDPE) pipes. The annual production capacity of HDPE is 540,000 tonnes, and LDPE - 225,000 tonnes.
MRC

1. Asian PET recycling companies report feedstock shortage due to COVID-19 pandemic

MOSCOW (MRC) -- Southeast Asian polyethylene terephthalate (PET) recycling companies will continue facing challenges with the availability of raw materials, due to the low collecting and processing rate, as a result of the COVID-19 pandemic, reported S&P Global with reference to market sources. Many manufacturers are still looking to shift more volumes for local sales, as exports are restricted by container shortage and higher freight costs, sources said.

MRC

MOSCOW (MRC) -- US energy companies on Thursday began airlifting workers from Gulf of Mexico oil platforms and moved vessels ahead of a powerful hurricane forecast for the weekend, according to Hydrocarbonprocessing.

Gulf of Mexico offshore wells account for 17% of US crude oil production and 5% of dry natural gas production. Over 45% of total US refining capacity lies along the Gulf Coast.

Exxon Mobil Corp said it was preparing its 520,000 barrel-per-day (bpd) Baton Rouge, Louisiana refinery for severe weather, but operations were normal on Thursday.

Phillips 66 operations at refineries in Lake Charles and Alliance, Louisiana, “will be adjusted based on the storm’s progression,” spokesman Bernardo Fallas said.

BP PLC, BHP, Chevron, Equinor and Royal Dutch Shell removed workers from offshore facilities, spokespeople said. BHP and Chevron evacuated non-essential staff while Equinor said it is preparing to move workers off its Titan platform.

BHP, BP and Shell said they have begun to shut in production at offshore platforms. Chevron said its production remained at normal levels on Thursday, while Occidental Petroleum and Hess Corp said they are monitoring weather conditions.U.S. Gulf Coast gasoline prices rose in the past two trading sessions because of concerns around the storm, traders said.

Tropical Storm Ida was swirling in the Caribbean Sea and forecast to march through the main oil-producing region of the Gulf on Friday. Louisiana declared a state of emergency and called on residents to prepare for a major hurricane. Ida is expected to strike the central Gulf Coast with a life-threatening storm surge, damaging winds and heavy rains, the National Hurricane Center said. It could make landfall as a category 3 hurricane packing winds of up to 111 miles (178 km) per hour.

As MRC reported before, the fourth-largest US refiner Phillips 66 said earlier this month that it put the smaller of its two Louisiana refineries up for sale amid continued losses and an uncertain future for motor fuels. The company is holding talks with a potential buyer on the sale of its 255,600 barrel-per-day (bpd) Alliance refinery in Belle Chasse, Louisiana, according to two people familiar with the matter. The identity of the potential buyer could not immediately be learned. US refiners have closed or sold oil processing plants as the COVID-19 pandemic slashed demand for gasoline and jet fuel, generating losses for the industry.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC