GNS started commissioning of the catalytic cracking complex

MOSCOW (MRC) - Gazprom neftekhim Salavat has started the final stage of commissioning of the catalytic cracking complex, the company said in a statement.

The commissioning of a catalytic cracking complex will increase the production of commercial high-octane motor gasolines that meet Euro-5 requirements, as well as significantly reduce the burden on the environment.

When debugging the operation of the equipment and bringing the complex to normal technological mode, in particular, the first start-up of the centrifugal compressor of wet gas, part of the gases is temporarily directed to the flare stack for the period of setting the parameters of the compressor, as a result of which the gases are burned with intense smoke generation. Combustion of gases on a flare stack is a controlled process and is an integral part of start-up operations. The impact on the environment does not exceed the permitted standards.

The catalytic cracking complex is designed for the production of a high-octane component of motor gasoline and liquefied hydrocarbon gases - propane-propylene and butane-butylene fractions, which are a valuable raw material for petrochemicals.

The implementation of the project will increase the production of commercial high-octane motor gasolines that meet Euro-5 requirements and, accordingly, the output of light petroleum products. The complex meets all the requirements of environmental and industrial safety. The project provides for specialized gas cleaning facilities, electrostatic precipitators, in which all harmful impurities will be screened out. There are no environmental risks. The catalytic cracking complex will replace two outdated units: Katcracking-1 and Katcracking-2, built in the 50s of the last century.

Earlier it was written that RusGazDobycha plans to create a gas chemical cluster on the basis of Gazprom neftekhim Salavat (GNS), one of the largest oil refining and petrochemical complexes in the Russian Federation, for which almost 30 billion cubic meters of "ethane" gas will be supplied from Yamal. In particular, the gas processing complex that RusGazDobycha will build at the gas pumping station will process ethane-containing gas from the Nadym-Pur-Taz region and the Tambeyskoye field (Yamal).

According to the ICIS-MRC Price Report, Gazprom neftekhim Salavat (GNS, Salavat, Bashkortostan) resumed production of low-pressure polyethylene (LDPE) after shutting for a long planned maintenance works. GNS 1 October resumed production of low-pressure polyethylene (LDPE) after shutting for scheduled preventive maintenance. The idle capacity was quite long and started on the 20th of July. The annual production capacity is 45,000 tonnes.

OJSC Gazprom neftekhim Salavat (formerly OJSC Salavatnefteorgsintez) is one of the leading petrochemical companies in Russia, which carries out a full cycle of hydrocarbon processing. The list of commercial products manufactured by the enterprise includes more than 140 names, including 76 names of the main products: motor gasolines, diesel fuels, kerosene, heating oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrene, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of plastics household products, surfactants and much more.

MRC

1. Cepsa chemicals Q3 earnings decreased on weaker phenol, acetone margins

MOSCOW (MRC) -- Cepsa’s chemicals division third-quarter earnings fell 6%, quarter on quarter, on the back of falling margins in phenol and acetone and lower solvents output, said the company. Year on year, however, earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply compared with Q3 2020, when Spain was only emerging from one of the strictest lockdowns in Europe to contain the pandemic. The company did not disclose sales figures. Cepsa is privately owned by The Carlyle Group and Abu Dhabi's investment fund Mubadala and it is not bound by financial reporting like publicly listed companies are.


MRC

MOSCOW (MRC) -- Crude oil futures were higher in midmorning trade in Asia Nov. 19, extending gains from the overnight session after heavy mid-week losses, as investor confidence returned in a market still stuck in deficit, reported S&P Global.

At 10:15 am Singapore time (0215 GMT), the ICE January Brent futures contract was up 40 cents/b (0.49%) from the previous close at USD81.64/b, while the NYMEX December light sweet crude contract rose 37 cents/b (0.47%) at USD79.38/b.

"Crude oil edged higher as the market debates the implications of releases from strategic oil reserves. The market also shrugged off concerns that new COVID-related restrictions would hurt demand," said ANZ Research analysts Brian Martin & Daniel Hynes in a note.

Oil markets have been through a rollercoaster few weeks as oil prices struggled to break past their post-pandemic highs of around USD86/b reached in late October.

Since then, the ICE Brent and NYMEX light sweet crude benchmarks have slid by close to 10% as a slew of bearish headlines, particularly the threat of a release of oil reserves by major oil consuming economies, pressured prices lower.

Analysts said that traders have mostly priced in the impact of any government action by now.

The US oil rig continued to climb as drillers took advantage of oil prices still hovering at multi-year highs despite recent declines. The domestic oil rig count rose by 16 to 541 for the week ended Nov. 17, energy analytics and software company Enverus 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, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MOSCOW (MRC) -- Royal Dutch Shell, the world's petrochemical major, has restarted its cracker in Pulau Bukom, Singapore after resolving technical issue, according to CommoPlast.

Thus, this cracker with an annual output of 960,000 tons/year of ethylene and 550,000 tons/year of propylene came back on-line on 5 November, 2021. It was shut on 1 November, after a flare occurred at the plant.

The company was earlier rumored to have reduced the ethylene and propylene allocations to its downstream buyers at the adjacent locations following the incident, however, with the prompt restart, the impact might be smaller than initially expected.

As MRC reported 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

MOSCOW (MRC) -- Ningbo Huatai Shengfu Wealthy Polymer Material was forced to shut down its hydrocarbon ethylene cracker in Daxie, Ningbo on 8 November 2021 due to a technical glitch, according CommoPlast.

The cracker has an annual output of 600,000 tons/year of ethylene. At the time of this report, it is unclear to when the company would be able to bring the unit back online.

As a result of feedstock disruptions, the producer has taken all of its downstream units at the same complex offline, including a 450,000 tons/year styrene monomer (SM) plant, and a 450,000 tons/year FDPE plant until the cracker resume operation.

As MRC informed earlier, the company launched this cracker in Ningo in July, 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 1,868,160 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