Toledo refinery operates normally, despite fire

MOSCOW (MRC) -- PBF Energy's Toledo refinery is operating normally, despite the fire that broke out at one of its gasoline processing units on 23 November, according to Hydrocarbonprocessing with reference to the company's statement.

Crews tackled a large fire at Toledo Refining Company in Oregon Tuesday. Firefighters were seen working to get water on the site just before noon and the fire appeared to be dwindling around 12:30 p.m.

"We can confirm that a fire occurred on a gasoline processing unit there at approximately 11:00 am this morning. Refinery crews were actively responding with assistance from the Oregon Fire Department. Importantly, there have been no injuries, and everyone is safe and has been accounted for at the site. We have notified appropriate public officials and regulatory agency representatives, and at this time are unaware of any community impact," - said the company on Tuesday.

The refinery manager, Mike Gudgeon, said it happened around 11 a.m., following an incident at a gasoline-producing unit at the plant. Two processing units were shut down, but everything else operated as normal Tuesday.

As MRC wrote previously, in H1 September, 2021, US-based PBF Energy began the process of restarting aromatics production in Chalmette, southeast Louisiana, USA after an unscheduled maintenance, caused by Hurricane Ida. The plant's production capacity is 185,000 mt/year of benzene, 180,000 mt/year of toluene and 270,000 mt/year of xylenes. PBF Energy restarted most of the production at its refinery in Chalmetta around September 17, 2021. The facility was shut down due to a power outage when Hurricane Ida hit the coast on 29 August.

Benzene is feedstock for the production of styrene monomer (SM), which, in its turn, is the main raw material for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 420,690 tonnes in the first nine months of 2021, up by 16% year on year. September estimated consumption was 46,150 tonnes, down by 3% year on year.
MRC

MOSCOW (MRC) -- Russia's overall production of high density polyethylene (HDPE) totalled 1,618,000 tonnes in the first ten months of 2021, up by 7% year on year. At the same time, only one producer increased its output, according to MRC's ScanPlast report.

October total HDPE production in Russia dropped to 144,000 tonnes, whereas this figure was at 146,400 tonnes a month earlier; Kazanorgsintez and Stavrolen's production capacities were shut for maintenance. Thus, overall HDPE output reached 1,618,000 tonnes in January-October 2021, compared to 1,506,000 tonnes a year earlier. Only ZapSibNeftekhim's output increased, three other producers reduced their polyethylene (PE) production.

The PE production structure by grades looked the following way over the stated period.

SapSibNeftekhim's October total HDPE production reached 98,200 tonnes versus 98,900 tonnes a month earlier. The Tobolsk plant's overall HDPE output reached 984,100 tonnes in the first ten month of 2021, up by 35% year on year.

Kazanorgsintez's overall HDPE output rose to 25,000 tonnes last month from 19,400 tonnes in September, the Kazan producer shut its production for a turnaround in the second half of September-the first decade of October. Thus, the plant's overall production of this PE grade totalled 308,600 tonnes over the stated period, down by 24% year on year.

Stavrolen's October HDPE production was 9,500 tonnes versus 24,900 tonnes a month earlier, the Budennovsk producer shut its production for scheduled repairs in the second decade of the month. Overall HDPE output exceeded 247,700 tonnes in January-October 2021, down by 7% year on year.

Gazprom neftekhim Salavat' total HDPE production was slightly less than 11,300 tonnes last month, its September output was 3,200 tonnes due to a long outage for maintenance works. Thus, the Salavat plant's overall output of this PE grade totalled 78,000 tonnes in the first ten months of 2021, down by 25% year on year.

MRC

MOSCOW (MRC) -- Fire broke out in a fuel tank outside Iraq's main Gulf Umm Qasr port near Basra, reported Reuters with reference to the state news agency reported on Wednesday.

Iraq exports most of its oil through its southern Gulf ports.

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

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.
MRC

MOSCOW (MRC) -- Russia's overall linear low density polyethylene (LLDPE) production totalled 4,946,000 tonnes in the first ten months of 2021, up by 17% year on year. ZapSibNeftekhim accounted for the main increase in the output, according to MRC's ScanPlast report.

October total LLDPE production in Russia decreased to 35,300 tonnes, whereas this figure was at 47,300 tonnes a month earlier, all producers decreased their capacity utilisation. Thus, overall PE output reached 4,946,000 tonnes in January-October 2021, compared to 4,242,000 tonnes a year earlier. All producers raised their output of PE, but ZapSibNeftekhim accounted for the greatest increase in production.

The structure of PE output by grades looked the following way over the stated period.

October LLDPE production at ZapSibNeftekhim's facilities reached 18,400 tonnes against 29,300 tonnes a month earlier. In general, the total output of linear polyethylene at the Tobolsk plant reached the level of 272,600 tonnes in January-October, up 21% year on year.

Last month, LLDPE production at the facilities of Nizhnekamskneftekhim decreased to 13,700 tonnes against 18,100 tonnes in September, the Nizhnekamsk producer stopped production in October for a short repair. Thus, overall production of this PE grade totalled 187,600 tonnes over the stated period, up by 4% year on year.

Kazanorgsintez for ten months of this year produced 34,400 tonnes of linear polyethylene against 19,500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- US crude oil stocks rose last week but gasoline and distillate stocks fell even as refining activity increased on strong overall fuel demand, reported Reuters with reference to the Energy Information Administration's statement on Wednesday.

Crude inventories rose by 1 MM bbl in the week to Nov. 19, compared with analysts' expectations for a decrease of 481,000 bbl.

Fuel stocks have continued to decline as product demand remains strong. Gasoline stocks fell by 603,000 bbl, compared with analysts' expectations in a Reuters poll for a 461,000-bbl drop. Stocks of gasoline are at their lowest since November 2017.

"Demand for gasoline and diesel fuel continues to be good in this holiday season and I expect that with drivers taking to the roads over the holiday, we're going to see gasoline inventories decline next week," said Andrew Lipow, president of Lipow Oil Associates in Houston.

Overall, gasoline product supplied, a measure of US demand, has averaged 9.3 MMbpd over the last four weeks, or in line with pre-pandemic levels.

"The gasoline demand is phenomenal - it's been unrelenting since the summer, and we are not seeing any decline now," said John Kilduff, partner at Again Capital Markets in New York.

Distillate stockpiles, which include diesel and heating oil, fell by 2 MM bbl, versus expectations for a 1 MM-bbl drop, the EIA data showed. Overall distillate stocks are now at their lowest since November 2018.

Refinery crude runs rose by 243,000 bpd, EIA data showed. Refinery utilization rates rose by 0.7% points.

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