Lukoil starts supplying electricity from solar power plant to Stavrolen

Lukoil starts supplying electricity from solar power plant to Stavrolen

MOSCOW (MRC) - Lukoil, the second largest oil company in Russia, has begun supplying electricity to Stavrolen in Budennovsk from its own solar power plant (SPP) located on the territory of the Volgograd refinery, the company said.

The annual volume of supplies will be about 11 mln kWh.

The use of electricity generated from renewable energy sources will reduce the carbon footprint of Stavrolen's products with an expected reduction in the volume of indirect energy emissions of greenhouse gases by almost 5 thousand tons of CO2 per year.

The development of renewable energy sources for its own production needs is an important instrument of the company's decarbonization program, and Lukoil plans to continue implementing such projects in accordance with its climate strategy.

SPP in Volgograd with a capacity of 10 MW was commissioned in 2018. After the commissioning of the second stage in May 2021, the capacity of the SPP was increased to 30 MW.

Earlier it was reported that in July of this year, Lukoil began construction of a polypropylene (PP) production complex on the territory of the Nizhny Novgorod refinery in the city of Kstovo. The complex will become the largest polypropylene production facility in Russia integrated into an oil refinery. The raw material for polypropylene production at Lukoil's Nizhny Novgorod site will be propylene from two modernized catalytic cracking units with a capacity of 4 million tons per year. After putting the complex into operation, the enterprise will be able to produce about 500 thousand tons of polypropylene grades.

Earlier it was reported that in July of this year, Lukoil began construction of a polypropylene (PP) production complex on the territory of the Nizhny Novgorod refinery in the city of Kstovo. The complex will become the largest polypropylene production facility in Russia integrated into an oil refinery. The raw material for polypropylene production at Lukoil's Nizhny Novgorod site will be propylene from two modernized catalytic cracking units with a capacity of 4 million tons per year. After putting the complex into operation, the enterprise will be able to produce about 500 thousand tons of polypropylene grades.

According to the ICIS-MRC Price Report, from 12 October, Stavrolen began a shutdown of its HDPE capacities for scheduled preventive maintenance. The idle capacity will be quite long and will take about 36 days. The annual production capacity is 300,000 tonnes/year.

Stavrolen (Stavropol Territory, part of Lukoil) is the second largest producer of low-density polyethylene (HDPE) in Russia after Kazanorgsintez and the fifth in terms of PP production. Stavrolen's capacities for the production of HDPE and PP are 300 thousand tons and 120 thousand tons per year, respectively, the plant also produces 80 thousand tons of benzene and 50 thousand tons of vinyl acetate per year.
MRC

Trinseo raises October PS, ABS and SAN prices in Europe

Trinseo raises October PS, ABS and SAN prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of October 4.

Effective October 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR55 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR55 per metric ton;
- MAGNUM ABS resins - by EUR60 per metric ton;
- TYRIL SAN resins - by EUR45 per metric ton.

As MRC reported earlier, Trinseo reduced its prices for its PS grades on September 1, 2021, as stated below:

- STYRON GPPS -- by EUR65 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR55 per metric ton.

According to ICIS-MRC Price report, in Russia, October prices of Nizhnekamskneftekhim's GPPS were in the range of Rb152,750-163,700/tonne CPT Moscow, including VAT, and HIPS prices were at Rb156,750-167,700/tonne CPT Moscow, including VAT. Penoplex contracted its GPPS quantities at Rb169,000-171,000/tonne CPT Moscow, including VAT, in October, whereas last week's prices of Gazprom neftekhim Salavat's GPPS were heard at Rb152,500-156,500/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

COVID-19 - News digest as of 12.10.2021

1. Crude oil prices go up to multi-year highs as energy crisis grips major global economies

MOSCOW (MRC) -- Oil prices rose by about 2% on Monday, extending gains as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers, reported Reuters. Brent crude was up USD1.45, or 1.8%, at USD83.84 a barrel by 1336 GMT, its highest since October 2018. US West Texas Intermediate (WTI) crude rose USD1.71, or 2.2%, to USD81.06 for its highest since late 2014. "Oil prices are likely to continue climbing in the short term," said Commerzbank analyst Carsten Fritsch. Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival in economic activity, with Brent advancing for five weeks and US crude for seven.



MRC

Crude oil futures stop rising in Asia after a sustained rally but tight supply, strong demand outlook remains

Crude oil futures stop rising in Asia after a sustained rally but tight supply, strong demand outlook remains

MOSCOW (MRC) -- Crude oil futures were stable to lower in mid-morning trade in Asia Oct. 12 after a sustained rally, with expectations of tight supply and strong demand set to continue supporting prices in the near term, reported S&P Global.

At 11 am Singapore time (0300 GMT), the ICE December Brent futures contract was down 7 cents/b (0.08%) from the previous close at USD83.58/b, while the NYMEX November light sweet crude contract was 13 cents/b (0.16%) lower at USD80.39/b.

"Oil prices may be taking a breather today after surging more than 20% since late August on tighter oil supplies and increasing demand," IG market strategist Yeap Jun Rong told S&P Global Oct. 12, adding that prices were still above USD80/b and expectations of a near-term uptrend remain intact.

Other analysts said the oil market continued to be supported by high gas and coal prices that raise the prospect of more switching to oil for power generation.

Tightened US supply has supported prompt-month WTI prices and contributed to the widening backwardation of the WTI forward curve. Front-month WTI settled at a USD7.33/b premium to the year-ahead contract Oct. 11, the widest backwardation since mid-July.

ANZ research analysts in a note Oct. 12 raised their 2021 oil demand forecast by 450,000 b/d amid continuing recovery in transportation fuel requirements as pandemic mobility restrictions ease across the globe.

"Demand is improving in China, while easing restrictions in other countries are keeping oil demand prospects strong. Transportation fuels are leading the charge as consumers return to the road. High gas prices are inducing gas-to-oil switching in heating and industrial sectors," the ANZ analysts said.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

Epsilyte raises October EPS prices on higher feedstock costs

Epsilyte raises October EPS prices on higher feedstock costs

MOSCOW (MRC) -- Epsilyte (The Woodlands, Texas), a leading North American producer of expandable polystyrene (EPS), has announced an increase in its prices of all EPS grades for October shipments on higher feedstock costs, said the company.

Thus, the price of the company's EPS grades went up by 5 cents/pound (cts/lb) or USD110/tonne, effective 1 October, 2021 or as contracts allow.

Escalating feedstock costs necessitated this adjustment of Epsilyte's October prices.

As MRC reported earlier, Epsilyte increased its September EPS prices in the region by the same amount.

EPS is a rigid form of polystyrene (PS) used in insulation foams for the construction industry as well as for packaging.

According to ICIS-MRC Price report, prices of Russian EPS remained steady last week. Spot prices of Russian material were at Rb188,000-205,000/tonne CPT Moscow, including VAT. Some market participants continued to report a shortage of EPS in the domestic market. Demand for material was strong.

Epsilyte is owned by private equity firm Balmoral Funds (Los Angeles, California). Epsilyte is one of North America’s leading producers of expandable polystyrene resin. The company is focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad.
MRC