Gasoline demand in India may hit record this fiscal year on easing of COVID-19 curbs

MOSCOW (MRC) -- India's gasoline demand is set to hit a record this fiscal year, with consumption accelerating as more people hit the road for business and leisure travel after easing of COVID-19 curbs, reported Reuters.

Shunning trains, buses and planes, safety-conscious Indians are buying more cars and increasingly using personal vehicles to commute as they embark on 'revenge travel' - flocking to tourist destinations after months of restrictions, despite record high fuel prices.

Annual passenger vehicle sales in India rose by 45% to 264,442 units in July, driven by pent-up demand, according to data from the Society of Indian Automobile Manufacturers.

The stronger-than-expected gasoline consumption growth could prompt Indian refiners to import the fuel or boost gasoil exports in coming months. Indian refineries are traditionally configured to maximise production of diesel, where demand is still below pre-COVID levels, hurt by an uneven economic recovery.

"We may have to import some quantity of petrol if momentum in demand continues," said an official at an Indian state-run refiner, who declined to be identified as he is not authorised to speak to the media.

"We cannot increase crude throughput as some refiners have high levels of diesel inventory and export margins for diesel are not attractive."

The expected rise in India's gasoline imports could support Asian refiners' margins for the fuel. The country, which has a refining surplus, has shunned gasoline imports since May and raised gasoil exports by a fifth in July from April, government data showed.

Sluggish diesel demand has forced some refiners to cut crude oil processing as their fuel storage were full. That reduced India's July crude oil imports to their lowest in a year.

Changes in India's fuel demand patterns are crucial for global oil markets as Asia's third-largest economy is seen as the main driver of rising demand for energy over the next two decades, the International Energy Agency said in February.

India's gasoline demand rebound follows that of China, where consumption of the fuel is expected to rise by 11% to 13% this year to a record 3.8 million to 4.1 million bpd.

On the other hand, gasoil consumption - which accounts for two-fifths of refined fuel use in the country and is a barometer of industrial activity - is expected to take well into the fourth quarter or even next year to recover to pre-pandemic levels.

India is also gradually cutting dependence on diesel as it looks to fully electrify its vast railway network by end-2023, allow trucks to carry more weight, and increase power generation capacity from cleaner fuel sources.

As MRC informed eearlier, India plans to force refineries and fertilizer plants to use some green hydrogen, junior oil minister Rameswar Teli said in late August, as Asia's third-largest economy strives to reduce carbon emissions.

We remind that Indian Oil Corporation (IOC) will build the nation's first 'green hydrogen' plant at its Mathura refinery, as it aims to prepare for a future catering to the growing demand for both oil and cleaner forms of energy.

We also 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.
MRC

MOSCOW (MRC) -- Material supplier Asahi Kasei Plastics North America Inc. has named Todd Glogovsky as its new president and chief operating officer, said Canplastics.

Glogovsky, who joined the Fowlerville, Mich.-based compounding company in 2017 and was formerly the executive vice president of sales and technology, has over 30 years of plastics experience, including as managing director for a South American compounding business.

Glogovsky also has over 15 years of senior management experience, including strategic development, and has held positions related to sales, technology, operations and research and development throughout his career.

"In Todd’s four years with the company, he has made a significant impact on our business strategy and product growth,” said John W. Moyer, senior executive officer of Asahi Kasei Corp. “Todd’s extensive background and experience is an asset to our entire organization; he has proven himself as an effective leader who prioritizes both internal and external relationships. His efforts will play a critical role in advancing both APNA and Asahi Kasei toward our 2024 mid-term plan goals."

As per MRC, Asahi Kasei Chemicals (AKC), a subsidiary of Asahi Kasei Corporation, kept capacity utilization at its acrylonitrile (ACN) plant in Mizushima, Japan, at a regular level in August following the completion of planned preventive measures. So, repair work at this enterprise with a capacity of 200,000 tonnes per year was started on May 16 this year and ended on 16 July. Thus, they continued for two months.

According to the ICIS-MRC Price Report, ABS imports to Russia grew by 40% in the first half of 2021 compared to the same period last year and amounted to 20,900 tonnes against 15,000 tonnes. The share of South Korean supplies fell to 56% (11,800 tonnes) against 60% (9,000 tonnes) a year earlier.

Asahi Kasei Corporation, founded in May 1931, is a Japanese chemical company. The company is headquartered in Tokyo and has offices and subsidiaries throughout Japan, as well as in China, Singapore, Thailand, the United States and Germany.
MRC

MOSCOW (MRC) -- The engine of the US offshore energy industry struggled to recover from Hurricane Ida as a lack of crews, power and fuel left companies unable to fully assess the damage to offshore facilities, reported Reuters.

Ports were reopening and some pipelines restarted as companies completed post-storm evaluations. However, larger hurdles remained for offshore producers and some refiners that struggled to get enough power to begin restarts.

Five days after the hurricane churned through offshore oil and gas fields, the extent of the damage to key facilities was still unknown. Crews have not returned to three-quarters of the evacuated platforms and more than 90% of production remained offline, government data showed.

The White House sought to ease regional fuel shortages, authorizing the release of 1.5 million barrels of crude oil to Exxon Mobil to produce gasoline. Four large refineries in the state remain shut.

Fuel and power shortages have hampered recovery. About 860,000 homes and businesses in the state lacked power. More than a third of gasoline stations in Louisiana were without fuel, according to tracking firm GasBuddy.

The shortages included aviation fuel for helicopters that conduct post-hurricane aerial evaluations and ferry workers to and from platforms. Ida's winds crushed fuel depots and helicopter pads used by transport firms.

Royal Dutch Shell, the largest Gulf of Mexico producer, has resumed just 20% of its usual production, the company said. An offshore facility that connects three large oil production basins was damaged by the storm, though the extent of it was not immediately clear, it said.

Pipeline operator Enbridge said it continues to evaluate its Gulf of Mexico facilities and offshore production remained shut. Damages to offshore oil facilities could cost insurers about USD1 billion, estimated CoreLogic.

Overall Gulf of Mexico output declined by 240,000 barrels, according to government data, an unusual reversal. Production restarts are taking longer than after past storms, analysts said, in part because of the extent of infrastructure damage.

As MRC informed before, Shell found evidence of building damage at its 230,611-bpd Norco, Louisiana refinery. But sources familiar with plant operations did not know the extent of the damage or time needed to make the repairs. Shell is awaiting the restoration of external electrical power to the Norco refining and chemical plant complex.

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) -- Polyplastics Co., Ltd. has decided to construct the new polymerization plant with the production capacity of 5,000 tonnes per year at Polyplastics Taiwan Co., Ltd., said the company.

As a highly heat-resistant super engineering plastic, LCP is used in a wide range of industrial fields, mainly electronic components used in information and communication equipment such as personal computers and smartphones, and its market has continued to expand at a high growth rate. In recent years, the market demand has increased along with the increase in investment for 5G equipment, and it is expected that the applications of LCP will continue to expand with the full-scale support for 5G millimeter waves.

We have the LCP polymerization plant with the production capacity of 15,000 tons/y at the Fuji Plant (Fuji City, Shizuoka Prefecture), and PTW has been responsible for the compounding process in the manufacturing of LCP products. This new polymerization plant enables PTW to have the integrated production of LCP products from polymerization to compounding and LCP polymerization. In the future, by expanding PTW’s LCP polymerization plant, the Polyplastics Group as a whole will achieve the production capacity of 25,000 tons/y of LCP polymerization.

To respond to the global market of LCP which is expected to expand rapidly in the future, we will continue to make efforts to earn the trust of our customers with high performance, high quality and stable supply as a top manufacturer of LCP based on the further growth strategy of LCP business.

As per MRC, Polyplastics (Tokyo, Japan) plans to build a 20,000-metric tons/year cyclic olefin copolymer (COC) production facility in Leuna, Germany, with the plant scheduled to be operational by mid-2023. No investment figure has been given. The plant will be operated by its fully owned subsidiary Topas Advanced Polymers and will more than double the company’s current COC output. Polyplastics already has an existing COC production plant in Oberhausen, Germany, but says the new facility will help meeting growing demand worldwide for COC polymers.

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.

Polyplastics Taiwan Co., Ltd. Is a joint venture company that manufactures and sells engineering plastic invested by Polyplastics Co., Ltd. (75% stake) and Chang Chun Group (25% stake) (Headquarters: Taipei, Plant: Kaohsiung).
MRC

MOSCOW (MRC) -- French giant TotalEnergies signed a USD27-billion contract to invest in oil, gas and solar production in Iraq Sunday, as the country faces an acute energy crisis, according to France24.

The announcement of the deal, supposed in part to reduce Iraq's reliance on fossil fuels, came as Oil Minister Ihsan Ismail signed the contract at a Baghdad ceremony with TotalEnergies chief Patrick Pouyanne.

TotalEnergies has not directly confirmed to AFP the value or duration of the contract, which was signed after months of negotiations and several visits by Pouyanne. But the French major plans initially to invest USD10 billion in infrastructure, the proceeds of which will then allow a second round of investments of USD17 billion, the officials said.

"This is the largest investment in Iraq by a Western company," Ismail said. "Implementing these projects is the challenge we face now."

Iraq has immense reserves of oil and gas. Despite being the number two producer in the Organization of the Petroleum Exporting Countries, it is experiencing an acute energy crisis and chronic blackouts that fuel social discontent.

Officials justify the lack of investment and the dilapidated state of its energy network by citing falling oil prices, which represent more than 90% of state revenue.

As MRC informed previously, in June 2021, TotalEnergies and Novatek signed a Memorandum of Understanding (MoU) to jointly work on sustainable reductions of the CO emission resulting from the production of liquefied natural gas (LNG) including with the use of renewable power, to develop large-scale carbon capture and storage solutions (CCS) and to explore new opportunities for developing decarbonized hydrogen and ammonia.

We remind that in November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables, and electricity. The company rebranded itself from Total to TotalEnergies during Q2 2021. The French firm has announced allocating part of surplus revenues to share buybacks. Its 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
MRC