China Ministry of Commerce allocates extra 1 mln mt bunker oil export quota to Sinopec, PetroChina and CNOOC

MOSCOW (MRC) -- China's Ministry of Commerce on Nov. 10 allocated an additional 1 million mt of quotas to Sinopec, PetroChina and CNOOC to export their domestically produced bunker fuel oil for bonded bunkering at China's ports in 2021, reported S&P Global with reference to sources with knowledge of the matter.

Meanwhile, the ministry has also approved Sinochem to transfer 230,000 mt of its bunker fuel oil export quota to export gasoline, gasoil and jet fuel in the rest of the year, the sources said. As a result, the total volume of fuel oil export quotas for 2021 will amount to 11.77 million mt.

China in January-October produced about 9.2 million mt of bunker fuel oil for export to the country's bonded ports for bunkering, according to local information providers.

Moreover, the volume of gasoline, gasoil and jet fuel export quotas amounts to 37.23 million mt for 2021, with Sinochem's quota transfer. In comparison, the country exported 33.70 million mt of these three key products in January-September, data from General Administration of Customs showed.

On Nov. 10, MOFCOM also approved PetroChina, Sinopec and Sinochem to transfer their key oil products export quotas, totaling 969,000 mt, from the processing trade route to the general trade route.

Under the processing trade route, export quotas are restricted to specific refineries, specific volumes and specific products.

Sinochem's key oil product export quotas under the processing trade route were allocated to the 15 million mt/year Quanzhou Petrochemical that it built.

With the transfer to the general trade route, the state-owned oil company will be able to fully use the quotas by sourcing from the ChemChina refineries that it merged this year, as Quanzhou Petrochemical is going to shut for scheduled maintenance around the end of November into early December, a company source said.

As MRC wrote before, China's Sinochem Quanzhou Petrochemical began production of ethylene vinyl acetate (EVA) at a new EVA/high density polyethylene (LDPE) plant in Quanzhou, Quanzhou, Fujian, China on July 10,2021. In early July, this year, the company began production of LDPE at this plant with a capacity of 100,000 tons of EVA/LDPE per year. The plant was originally slated to be launched in Q4 2020, but the launch had to be postponed due to the coronavirus pandemic. Then the start of the test production was postponed to Q2, 2021.

According to MRC's DataScope report, September EVA imports to Russia fell by 14,2% year on year to 3,070 tonnes from 3,570 tonnes a year earlier, whereas overall imports of this grade of ethylene copolymer into the Russian Federation rose in January-September 2021 by 21,13% year on year to 33,35 tonnes (27,520 tonnes in the first nine months of 2020).

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation (CNPC), headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.

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) -- Russia's overall production of unmixed polyvinyl chloride (PVC) totalled 828,600 tonnes in the fist ten months of 2021, up by 3% year on year. At the same time, only two producers raised their output, according to MRC's ScanPlast report.

October production of unmixed PVC dropped to 81,900 tonnes from 82,600 tonnes a month earlier, lower output was caused by a scheduled shutdown for maintenance at Kaustik (Volgograd). Overall output of polymer totalled 828,600 tonnes in January-October 2021, compared to 804,900 tonnes a year earlier. Two producers increased their production, whereas two manufacturers maintained their last year's figures.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl produced slightly over 30,000 tonnes of PVC in October, with emulsion polyvinyl chloride (EPVC) accounting for 2,600 tonnes, compared to 28,000 tonnes a month earlier. RusVinyl's overall output of resin reached 289,200 tonnes in the first ten months of 2021, compared to 277,100 tonnes a year earlier. Higher production was mainly caused by the absence of a shutdown for maintenances this year.

SayanskKhimPlast also slightly raised its output last month and produced just over 28,000 tonnes of suspension PVC (SPVC), compared to 27,200 tonnes in September. The Sayansk plant managed to produce 254,300 tonnes of PVC in over the stated period, compared to 243,800 tonnes a year earlier.

Baskhir Soda Company produced 23,400 tonnes in October versus 22,700 tonnes a month earlier. Baskhir Soda Company's overall output of resin reached 222,300 tonnes in January-October 2021, which virtually corresponds to the last year's figure.

Kaustik (Volgograd) produced 0,400 tonnes of suspension polyvinyl chloride (SPVC) last month, whereas this figure was at 4,600 tonnes in September. The plant's overall production of resin reached 62,700 tonnes over the stated period, which corresponds to the last year's figure.

MRC

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 113,300 tonnes in the ten months of 2021, which practically corresponded to the same figure last year. Only some grades of propylene copolymers imports have grown, according to MRC's DataScope.

October PP imports to Ukraine decreased to 13,300 tonnes from 16,800 tonnes a month earlier, local companies decreased their purchasing of propylene homopolymers (homopolymer PP) from Russia and Saudi Arabia. Overall imports of propylene polymers reached 113,300 tonnes in January-October 2021, compared to 113,000 tonnes a year earlier; demand only for homopolymer PP decreased, whereas demand for propylene copolymers increased.

The structure of PP imports by grades looked the following way over the stated period.

October imports of homopolymer PP into the Ukrainian market decreased to 10,700 tonnes, while a month earlier this figure was 13,100 tonnes. Producers from Russia and Saudi Arabia decreased their export volumes. Thus, overall homopolymer PP imports reached 85,200 tonnes in the first ten months of 2021, down by 2% year on year.

Last month's imports of block copolymers of propylene (PP block copolymers) were about 1,200 tonnes, compared to 1,700 tonnes in September, a small decrease in supplies of injection moulding PP block copolymers was seen. About 11,000 tonnes of PP block copolymers were imported in the ten months of this year, compared to 11,400 tonnes a year earlier.

October imports of statistical copolymers of propylene (PP random copolymers) decreased to 1,600 tonnes from 1,700 tonnes a month earlier due to weaker demand for pipe grade PP. Total PP random copolymer imports to Ukraine reached 14,200 tonnes in the first ten months of the year, compared with 12,900 tonnes year on year. Overall imports of other propylene copolymers totalled slightly over 2,900 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Chevron Products Company, a Chevron U.S.A. Inc. division, maker of the Havoline brand of advanced passenger car motor oils, announced the launch of Havoline® PRO-RS Renewable Full Synthetic Motor Oil, its first renewable motor oil product and ultra-premium addition to the Havoline portfolio, said Hydrocarbonprocessing.

Made with 25 percent sustainably sourced plant-based oils manufactured by Novvi LLC, Havoline PRO-RSTM supports Chevron’s aim to advance a lower carbon future. “As an industry leader in motor oil through our trusted Havoline brand, Chevron continues to make strides in developing game-changing, premium products that support the desire of our customers to reduce their lifecycle carbon intensity,” said Andy Walz, president of Americas Fuels and Lubricants for Chevron. “Havoline PRO-RS is Chevron’s first renewable motor oil, building on our partnership with Novvi."

Havoline PRO-RS uses Chevron’s proprietary ECOSTRENGTH™ Technology, a process to develop high-performance synthetic lubricants using renewable plant-based feedstocks. Havoline PRO-RS has all the performance attributes of a premium, full synthetic motor oil, including cleaning power and wear protection. This product also enhances certain environmental performance attributes like emission control1 and lower carbon intensity2 compared to full synthetic motor oil. As such, Havoline PRO-RS is better for cars and the environment.

In addition, Havoline PRO-RS delivers superior fuel economy retention3, which can save on fuel costs and helps to maintain the oil’s fuel economy longer than other petroleum-based full synthetic motor oils that degrade over time. Havoline PRO-RS also provides excellent thermal protection4 to maintain the oils’ original viscosity to protect against oil breakdown.

Havoline previously launched two different motor oil package styles that use recyclable cardboard to reduce plastic waste. PitPack is a 6-gallon package used in fast lube and mechanic shops, while Havoline Smart Change is a 6-quart package found on the retail shelves and online at Walmart for those “do-it-yourselfers” who prefer to change their own oil. Havoline PRO-RS will be sold in both package styles.

In addition, Havoline PRO-RS delivers superior fuel economy retention3, which can save on fuel costs and helps to maintain the oil’s fuel economy longer than other petroleum-based full synthetic motor oils that degrade over time. Havoline PRO-RS also provides excellent thermal protection4 to maintain the oils’ original viscosity to protect against oil breakdown.

Havoline previously launched two different motor oil package styles that use recyclable cardboard to reduce plastic waste. PitPack is a 6-gallon package used in fast lube and mechanic shops, while Havoline Smart Change® is a 6-quart package found on the retail shelves and online at Walmart for those “do-it-yourselfers” who prefer to change their own oil. Havoline PRO-RS will be sold in both package styles.

As per MRC, at cracking unit No. 1594 in Cedar Bayou, Texas, USA, the American Chevron Phillips Chemical (CP Chem), one of the world's largest petrochemical companies, suffered a compressor failure on October 5, which led to its shutdown. The capacity of this enterprise is 1.725 million tons of ethylene per year.

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) -- Lukoil has submitted to Iraq's oil ministry a preliminary development proposal for Eridu field, which may yield an estimated 250,000 b/d at peak, helping OPEC's second biggest producer in its efforts to boost crude production capacity, reported S&P Global.

The proposal's submission will allow the ministry to study and approve the field's development, the ministry said in a Nov. 12 statement.

Initial indications point to Eridu holding potential resources ranging between 7 billion and 12 billion barrels, the ministry added.

The field, located in Block 6 in southern Iraq, was discovered in 2016. Lukoil holds a 60% interest in the field and Japan's Inpex Corp. 40%.

In October 2021, Lukoil and Inpex applied to Iraq's state-owned Thi Qar Oil Co for "for commerciality of reserves and filed a preliminary proposal on the development of the Eridu oil field within Block-10," it said in a Nov. 11 statement.

"Geological exploration proved significant reserves, making Eridu the largest discovery in Iraq in the last 20 years," Lukoil said.

Lukoil currently operates Iraq's southern West Qurna 2, one of the world's largest oil fields with around 14 billion barrels of initial recoverable reserves, according to its website. The field pumps around 9% of Iraqi total oil production. Lukoil holds a 75% interest in West Qurna 2 and Iraqi state-owned North Oil Co. the remainder.

As MRC informed earlier, in July 2021, Lukoil, the second largest oil company in Russia, began construction of a polypropylene (PP) production complex at the Nizhny Novgorod refinery in the city of Kstovo. It is noted that the complex will become the largest PP production facility in Russia integrated into an oil refinery. The raw material for PP 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 500,000 tons of PP grades.

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.

Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include operations for the exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest privately-owned oil company in the world in terms of proven hydrocarbon reserves. The structure of Lukoil includes one of the largest petrochemical enterprises in Russia - Stavrolen.
MRC