ExxonMobil rejects USW modified proposal in Texas refinery lockout

ExxonMobil rejects USW modified proposal in Texas refinery lockout

MOSCOW (MRC) -- ExxonMobil on Thursday rejected a proposal by the United Steelworkers union (USW) to end an eight-month lockout of about 600 workers at the company’s Beaumont, Texas, refinery, reported Reuters with reference to the company's statement.

The union's proposed modifications to contract language do not meet the company's goals and would increase costs, Exxon said. The company told the union "we remain far apart," it said on its Embeaumont.com website.

The two sides met for about an hour on Thursday in their first negotiating session since late October, said Bryan Gross, USW international representative.

As MRC informed before, ExxonMobil said on Dec. 27, its Baytown, Texas, refinery continued to operate at reduced rates following a fire on Dec. 23, and that the unit involved remained shut down. The company has not yet determined the cause of the fire, but said it was continuing to empty the unit so it could safely enter the facility and assess what impact it would have on production. A filing with the Texas Commission on Environmental Quality said the fire occurred at the facility's hydro desulfurization unit 1.

Exxon's Baytown facility is home to a chemical plant, an olefins plant and the country's fourth-biggest oil refinery, with capacity to process 560,500 bpd of crude.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Trinseo raises January prices for PC/ABS grades and MAGNUM ABS in Europe

Trinseo raises January prices for PC/ABS grades and MAGNUM ABS in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all PULSE polycarbonate (PC)/ acrylonitrile-butadiene-styrene (ABS) and for all MAGNUM ABS automotive market products in Europe, according to the company's press release.

Effective January 1, 2022, or as existing contract terms allow, the contract and spot prices for the products stated above rose by EUR200 per metric ton.

As MRC reported earlier, Trinseo last raised its prices for all PULSE PC/ABS grades in the EMEA region on November 1, 2021 by EUR300 per metric ton.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) decreased in the first eleven months of 2021 by 11% year on year due to a major fall of imports and higher exports. Thus, overall estimated consumption in Russia totalled 74,300 tonnes in January-November 2021 versus 83,600 tonnes a year earlier.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

COVID-19 - News digest as of 11.01.2022

1. Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has released its annual activity outlook for 2022-2024, which provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses, as per the company's press release. For 2022, Petronas anticipates the path towards sustained demand recovery to remain fragile and uncertain as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amidst the COVID-19 pandemic.

MRC

Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has released its annual activity outlook for 2022-2024, which provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses, as per the company's press release.

For 2022, Petronas anticipates the path towards sustained demand recovery to remain fragile and uncertain as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amidst the COVID-19 pandemic.

Petronas’ Vice President of Group Procurement, Freida Amat said: “While accelerated energy transition will create further challenges to the traditional oil and gas business, industry players must be innovative and remain cost-competitive to ensure projects and production remain feasible in the uncertain economic climate for the sustainability of the industry.”

Petronas foresees a positive outlook for drilling rigs activity and a steady outlook for fabrication of fixed structures and subsea facilities, supply of line-pipes, underwater services, as well as decommissioning activities. However, a modest outlook is expected for installation of float-over barges.

In the report, Petronas also shares insights expected to have a positive impact on the industry.

Among the highlights are:

- Petronas is pushing further for the usage of cleaner energy and pursuit for a lower carbon profile as the company ventures into hydrogen business, presenting opportunities for oil and gas services and equipment industry players.
- Petronas Ventures, as the company’s venture capital arm, will continue to drive technology innovation and maintain a competitive edge to support its core oil and business for further growth.
- Efficiency as an enabler in pursuit of maximizing assets is key to continuous improvement to operations. Highest degree of efficiency in project delivery practices enables better project outlook, creates value for the industry and maintains its competitive advantage and sustainability.

As MRC reported earlier, in January 2021, Petronas said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy.

We remind that in June 2019, Petronas and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

Former head of Pemex may go to jail for 39 years

Former head of Pemex may go to jail for 39 years

MOSCOW (MRC) -- Mexico's attorney general has requested a prison sentence of up to 39 years for the former chief executive of state oil company Petroleos Mexicanos (Pemex) for his role in a corruption scandal, said Hydrocarbonprocessing.

Emilio Lozoya is accused of having requested money from scandal-plagued Brazilian construction conglomerate Odebrecht to partially finance the presidential campaign of former President, Enrique Pena Nieto in exchange for contracts.

On Monday, the attorney general formally charged Lozoya, who led Pemex between 2012 and 2016, with money laundering, criminal association and bribery. Together, the penalties could result in up to 39 years in prison, said the sources, who requested anonymity because they were not authorized to speak to media. Local media had reported the development earlier.

Mexico's attorney general accused Lozoya of receiving more than USD9 mln in bribes from Odebrecht for which it was awarded contracts during the Pena Nieto government without having to compete in tenders. The penalty is solely for the to Odebrecht-related probe, the sources said, and Lozoya is under investigation for other wrongdoing.

Lozoya, who was extradited from Spain to Mexico in mid-2020, has pleaded not guilty. A lawyer for Lozoya could not immediately be reached for further comment. While initially allowed to await his trial without being jailed, he was put behind bars late last year after photos of him surfaced on social media that showed him dining with friends in a luxury restaurant in one of the capital's most exclusive neighborhoods that sparked outrage among many Mexicans.

As MRC wrote previously, in September 2021, Brazilian petrochemical producer Braskem said its Mexican subsidiary Braskem Idesa ha reached a new gas supply agreement with Pemex to settle differences between the companies and build a USD400 million ethane terminal.

As MRC informed before, Pemex Petroquimica, a subsidiary of the Mexican state oil company Pemex, has resumed production of high-density polyethylene (LDPE) on line 2 in Cangrejera, Mexico after an unscheduled renovation. Earlier it was noted that Pemex postponed the restart of the second line with a capacity of 200,000 tonnes per year for the production of LDPE until August 10. It was originally planned that the launch of this production will begin at the end of July. The line was closed on 10 July.

Petroleos Mexicanos (Pemex) is a Mexican state-owned oil and gas and petrochemical company. Since the nationalization of the Mexican oil industry in 1938, Pemex has remained a state-owned company and, by law, has exclusive rights to explore and produce oil in the country. Almost 60% of the company's revenues go to the state budget. Petrochemical products include, but are not limited to, polyethylene, polyvinyl chloride.
MRC