China plans to reduce carbon emission before 2030

MOSCOW (MRC) -- China will take action to reduce waste, promote renewables and unconventional fuel, and reform its electricity network as part of its plan to bring carbon emissions to a peak before 2030, said Hydrocarbonprocessing.

The new action plan repeats China's targets to bring wind and solar capacity to 1,200 gigawatts by the end of the decade, to build more hydropower and nuclear plants and further develop natural gas resources. The document was published just five days before talks get under way in Glasgow to strengthen the global fight against climate change. China is set to announce its updated "nationally determined contributions" before the meeting begins.

Climate watchers have been looking closely for signs that China, the world's biggest source of climate-warming greenhouse gases, might make more ambitious pledges ahead of the Glasgow talks. Tuesday's document offered few advances.

As the country grapples with power shortages and ramps up coal production in order to guarantee winter supplies, the State Council said China would accelerate efforts to build a new and more flexible power system that allows new energy sources to be steadily increased. As well as new solar and wind farms, new hydroelectric dams would also be built on the upper reaches of the Yangtze, Mekong and Yellow rivers, and China will also make more use of new-generation nuclear technology, including small-scale offshore reactors, it said.

China will also take action to ensure that energy-intensive industrial sectors such as steel, non-ferrous metals and building materials improve energy efficiency and recycling rates, and make full use of new technologies to bring their own emissions to a peak. Last week, China's state planner said at least 30% of production capacity in those energy-intensive sectors would meet tighter energy efficiency standards by 2025.

Additionally, primary oil refining capacity in China will be capped at 1 B tons per yr by 2025, the document outlined, while petroleum and chemical companies will be encouraged to adjust their feedstock structure by replacing coal with electricity and natural gas. Meanwhile, China plans to "reasonably" manage oil and gas consumption by "gradually adjusting gasoline use" and advocate biofuel and sustainable jet fuel to replace conventional fuel products.

Some Chinese oil refiners and analysts reckon that diesel consumption in the country has already peaked, and expect gasoline demand to peak in 2025-2028. China's plan promotes natural gas as well as non-conventional oil and gas, including coalbed methane, even though they are fossil fuels and sources of carbon dioxide. China is currently investing USD131 B in new gas infrastructure, think tank Global Energy Monitor said on Tuesday, adding that its reliance on gas would do little to reduce temperature rises.

As per MRC, oil refiners are ramping up output to meet a synchronized uptick in demand across Asia, Europe and the United States, but plant maintenance and high natural gas prices will constrain supply in the fourth quarter. This comes as profits for producing ground transportation fuels such as diesel and gasoline have rebounded globally for the first time since the start of the pandemic, as countries gradually emerge from COVID-19 movement restrictions.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

1. Global oil refiners increase output as margins recover to pre-pandemic levels

MOSCOW (MRC) -- Oil refiners are ramping up output to meet a synchronized uptick in demand across Asia, Europe and the United States, but plant maintenance and high natural gas prices will constrain supply in the fourth quarter, reported Reuters with reference to company officials and analysts' statements. This comes as profits for producing ground transportation fuels such as diesel and gasoline have rebounded globally for the first time since the start of the pandemic, as countries gradually emerge from COVID-19 movement restrictions. A coal shortage across Europe and Asia, which has forced some power generators to burn kerosene, diesel or fuel oil and stock up ahead of the peak winter heating demand, is also supporting global oil prices.



MRC

MOSCOW (MRC) -- Crude oil futures edged higher in mid-morning trade in Asia Nov. 8, extending gains from the previous session amid a broad risk-on sentiment in financial markets following a strong US jobs report and news of Pfizer's antiviral drug, reported S&P Global.

At 10:10 am Singapore time (0210 GMT), the ICE January Brent futures contract was up USD1.03/b (1.24%) from the previous close at USD83.75/b, while the NYMEX December light sweet crude contract rose USD1.02/b (1.26%) at USD82.29/b. Both benchmarks had settled higher by 2.7%-3.1% in the last session Nov. 5.

Financial markets across Asia are being buoyed by a stellar US jobs report that showed the US adding jobs at a faster-than-expected pace, boosting hopes of a quick recovery from the COVID-19 pandemic.

US non-farm payrolls jumped 531,000 last month, the Department of Labor said, beating some analysts' forecasts of a 450,000 increase.

"Global risk sentiment received yet another boost after Friday's (Nov. 5) US nonfarm payrolls exceeded market expectations and the October unemployment rate fell to a 19-month low of 4.6%," OCBC Treasury Research analysts said in a note.

"Asian markets are likely to cheer the better-than-expected US labor market data this morning," they added.

Also adding to bullish sentiment was news that pharmaceutical giant Pfizer had stopped a trial for a COVID-19 experimental antiviral pill early after it was shown to cut by 89% the chances of hospitalization, or death, for adults at risk of developing severe disease.

This comes as the US on Nov. 8 reopens its borders to vaccinated travelers across the world, boosting the outlook for jet fuel demand as airplanes prepare to take to the skies again.

The latest developments will add to the overall bullish sentiment in oil prices as analysts maintain that oil markets remain in deficit and prices will continue to be supported going forward.

Market watchers also noted that Saudi Aramco had raised its December official selling prices, announced late Nov. 5, for Asia, Mediterranean, Europe and US-bound cargoes as strengthening Asian demand ahead of colder winter months is expected to tighten crude supplies.

"Saudi Aramco raised its official selling price of crude to all buyers across the globe, suggesting demand remains strong. This comes following OPEC's decision to stick with its scheduled 400,000 b/d increase in output despite consumers saying the current pace is too slow to sustain the post-COVID recovery," ANZ Research analysts Brian Martin and Daniel Hynes said.

As MRC informed earlier, Saudi Aramco's downstream business consumed 43.5% of the company's crude in the first nine months of 2021, while its bottom line for the third quarter to September was in the black amid an improvement in market conditions. During January-September 2020, Aramco's downstream oil consumption stood at 39.5%, the company said in an earnings report released Nov. 1.

We remind that in June 2020, Aramco finalized its USD69 billion acquisition of a 70% stake in Saudi Basic Industries Corp., the Middle East's biggest petrochemical maker. SABIC reported more than a fivefold year-on-year increase in its Q3 net profit to USD1.49 billion thanks to higher average sales prices.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

MOSCOW (MRC) -- China National Offshore Oil Corporation Ltd., or CNOOC, has booked two diesel shipments in late October, totalling about 50,000 tonnes, for early November delivery into south China, a rare purchase spurred by a strong domestic diesel market, reported Reuters with reference to several trading sources.

China has been a net diesel exporter in recent years but a reduction in domestic refinery throughput since June has tightened supplies and led to a rally in wholesale prices of the main transportation and industrial fuel.

The government's clampdown on light cycle oil, a blending component for diesel, by imposing a hefty tax on imports also cut into supplies.

"Very strong domestic diesel prices have created a window to bring in imported diesel," said one source.

A widespread power curb as well as soaring natural gas prices have also lent support to diesel, as some industrial and commercial consumers shifted to standalone diesel generators and truck fleets switched to more diesel use from natural gas.

As MRC wrote before, CNOOC targets to produce 545 million-555 million barrels of oil equivalent, or 1.49 million-1.52 million boe/d, of oil and gas in 2021, up about 4.5% from its estimated production of 528 million boe in 2020, on the back of contribution from its 19 new projects, including Buzzard oil field phase II.

We remind that CNOOC Dongfang, a subsidiary of CNOOC, halted production at its propylene plant in Hainan province on March 2 for a schedule turnaround. It was expected that the maintenance at this plant with a capacity of 150,000 mt/year of propylene to continue until mid-April 2021.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

CNOOC is China's third largest national oil company after CNPC and Sinopec. The company was founded in 1982. The headquarters is located in Beijing. The company is engaged in the production, processing and marketing of oil and natural gas offshore China. The Chinese government owns 70% of the company's shares.
MRC

MOSCOW (MRC) -- Royal Dutch Shell Plc plans to restart this week units shut in September for a planned overhaul at its 302,800 barrel-per-day (bpd) joint-venture Deer Park, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

Fuel-gas treating units have restarted and work is being completed on the 45,900 bpd reformer and an aromatics unit, the sources said.

A Shell spokesperson did not immediately reply to a request for comment.

Shell is preparing to transfer control of the refinery to its joint-venture partner Petroleos Mexicanos (Pemex), Mexico’s national oil company, by the end of the year for USD596 million in cash and debt plus the value of inventory on-hand.

Shell and Pemex announced the sale of Shell’s interest in May. Shell has sold all but two of its refineries as part of a plan to depart US refining.

Shell’s Norco, Louisiana, refinery is restarting following repairs of damage from Hurricane Ida, which struck at the end of August.

As MRC informed earlier, 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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC