Kazanorgsintez resumes PE production

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) has completely resumed operations at its polyethylene (PE) production capacities after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said Kazanorgsintez had completely brought on-stream its low density polyethylene (LDPE) and high density polyethylene (HDPE) production capacities after the annual scheduled maintenance by 11 October. The outage was long and started on 14 September.

It is also worth noting that the last shutdown for repairs at Russian plants this year is planned for Stavrolen. The Budennovsk producer intends to shut down its HDPE production for a 36-day maintenance on 12 October. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of high density polyethylene (HDPE). The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

1. OMV raises its refinery utilisation by 6% in Q3 on downstream recovery

MOSCOW (MRC) -- Austrian oil and gas group OMV saw its indicative refining margins double and raised its refinery utilisation by 6% to 91% in the third quarter, as upstream production volumes weakened compared with the second quarter, reported S&P Global with reference to the company's statement on Oct. 8. In a trading statement, the Central European company put its European refining margin indicator for the quarter at USD4.43/b compared with USD2.21/b in the second quarter and just 87 cents/b in the third quarter of 2020. Its sales of fuel and other oil products were up 16% on the quarter at 4.66 million mt. The company's upstream production, of both liquids and gas, fell back slightly compared with the second quarter, to 198,000 b/d of oil equivalent and 272,000 boe/d respectively. Its gas production, a significant portion derived from Russia, was also down 3% on the year, however, its oil output was up 20% compared with a year earlier.


MRC

MOSCOW (MRC) -- Crude oil futures were lower in mid-morning trade in Asia Oct. 13 as investors awaited the release of weekly US stocks data for fresh pricing cues, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), the ICE December Brent futures contract was down 61 cents/b (0.73%) from the previous close at USD82.81/b, while the NYMEX November light sweet crude contract was 58 cents/b (0.72%) lower at USD80.06/b.

The pause in the recent sustained rally could prompt profit taking, but that may also prompt buying on the dips by market participants anticipating more upside to emerge in the coming week.

Investors are awaiting the release of weekly US stocks data by the American Petroleum Institute later Oct. 13 and more definitive numbers by the US Energy Information Administration the following day for fresh pricing cues.

Analysts polled Oct. 11 by S&P Global were expecting the data to show a 500,000-barrel draw in US crude stocks to 420.4 million barrels for the week ended Oct. 8, which would run counter to seasonal trends; US inventories typically build as refinery runs slow with the onset of shoulder season maintenance.

ANZ research analysts in a note said that crude oil prices have ebbed and flowed as investors debate the impact of energy shortages in Asia and Europe, but there were growing expectations that high prices for gas and thermal coal were likely to boost demand for alternatives such as diesel and fuel oil.

Supply outlooks also remain constrained by the high gas and coal prices that raise the prospect of more switching to oil for power generation.

ANZ analysts referenced TotalEnergies CEO Patrick Pouyanne as saying that demand for fuel oil was soaring in parts of Asia as buyers turn away from gas, and also the IMF cautioning that threats to growth have increased amid rising costs for food and fuel.

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

MOSCOW (MRC) -- The alliance of OPEC and non-OPEC countries remains key to stabilizing the oil market which is still volatile from the consequences of COVID-19 and Russia expects the deal to last until the end of 2022, reported S&P Global with reference to President Vladimir Putin's statement Oct. 13.

Speaking at the Russian Energy Week in Moscow, he noted how the OPEC+ agreement on historic oil production cuts reached in April 2020 was crucial to ensuring stability during the pandemic and falling oil demand, as well as keep up investment activity.

"At that time, the OPEC+ agreement played a key role in stabilizing the oil market ... If investments in new fields and prospective oil production were stopped, the market would inevitably face a large-scale, critical deficit in the very near future. We are witnessing some of this today," Putin said.

Russia remains a responsible member of the alliance and expects the OPEC+ deal to last until the end of 2022, he said.

"As the global economy and oil demand are still recovering, our countries continue stabilize the market and prices, and timely increase oil production and supplies," Putin said.

Sharp jumps in oil prices seen in recent weeks remain negative for both producers and consumers, he said. Moreover, prices reaching USD100/b "is quite possible", Putin said.

S&P Global has assessed Dated Brent at three-year highs in recent days, with the benchmark reaching as high as USD84.43/b on Oct. 11.

"We often hear that high prices are beneficial for producers, allowing them to receive super-profits without making any visible efforts ... high prices have negative consequences for everyone, including producers. And our producers are well aware of this," Putin said.

Beyond 2022, Putin hopes to continue cooperation with OPEC+ countries on broader topics, including reduction of carbon footprint.

"Cooperation between our countries has every chance of further development. Mastering new environmentally friendly technologies, production and refining of hydrocarbons, exchange of practices, reduction of carbon footprint," he said.

Russia aims to become carbon neutral by 2060, Putin said.

As MRC informed earlier, Russia is expected to have 3.464 million tonnes of primary oil refining capacity offline in October, a weekly estimate based on Refinitiv Eikon data and Reuters calculations showed on Friday, up 9.1% from last week's estimate. That is still be lower than the previous month, with many plants expected to finish maintenance.

We remind that in August 2021, industrial production in the Russian Federation increased by 4.7% compared to August 2020, the Federal State Statistics Service (Rosstat) said in a statement.

We also remind that Russia's GDP in 2021 will grow to 4.2% instead of the projected 3.8%, said State Secretary and Deputy Minister of Economy Alexei Khersonsev in September 2021.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Nova Energies, a joint venture of Technip Energies and NIPIGAS, has been awarded a Pre-FEED contract by SIBUR, the largest petrochemical holding of Russia and Eastern Europe, to study potential Carbon Capture solutions for ZapSibNeftekhim (part of SIBUR), as per NIPIGAS's press release.

The scope of NOVA ENERGIES work includes technology and optimal technical solutions development, along with a cost estimate for the process of capturing, transporting and utilizing carbon dioxide (CO2) from the operating enterprises of ZapSibNeftekhim and the Tobolsk thermoelectric power station, which is the unique supplier of steam for the plant and the key supplier of heat for housing and social facilities of the region.

Dmitry Evstafiev, General Director of NIPIGAS, declared: “We are pleased to announce that NIPIGAS team in partnership with Technip Energies has begun the development of a project to reduce carbon emissions of the largest petrochemical enterprise in our country and the main production asset of SIBUR. This project gives Nova Energies an opportunity to contribute to the development and to take a leading position in the market for energy transition in our country from the very beginning of the operation of the joint venture.”

As MRC reported, ZapSibNeftekhim produced the 7 millionth ton of polyolefins, according to the company's statement earlier this month.

We remind that the first polymer production with a capacity of 500,000 tons of polypropylene (PP) per year began operations in Tobolsk on October 15, 2013, at the site of Tobolsk Petrochemical Plant (SIBUR-Tobolsk). In 2019, another production complex with a capacity of 1.5 million tons of polyethylene (PE) and 500,000 tons of PP per year was launched in Tobolsk, and in 2020, it reached its design capacity. In 2020, the legal merger of ZapSibNeftekhim with the petrochemical plants of SIBUR-Tobolsk, located at the same industrial site, was also completed. At present, the combined facilities of SIBUR in Tobolsk make it possible to produce 2.5 million tons of base polymers per year.

According to ICIS-MRC Price report, SIBUR Tobolsk will reduce its capacity utilisation in October due to problems with raw materials. But by November, the company intends to resolve the problem with the shortage of feedstocks for PP production. The annual production capacity is 500,000 tons.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.

Nova Energies is a full-fledged independent player on the Russian market which provides a wide range of expertise, including Engineering and Design, Project Documentation and CAPEX estimates ("FEED/PD") as well as Engineering, Procurement, Construction, Installation, and Commissioning (“EPC/EPCm”) for CO2 removal, Carbon Capture, clean H2 production, Bio Energies, Bio Refineries, Bio Chemistry, Ammonia, as well as other energy transition related themes.
MRC