Rosneft and CNPC strengthen their cooperation

Rosneft and CNPC strengthen their cooperation

MOSCOW (MRC) -- During the visit of the delegation headed by the President of the Russian Federation Vladimir Putin to Beijing (PRC), negotiations were held between PJSC Rosneft Oil Company and China National Petroleum Corporation (CNPC) and the Agreement was signed on the supply of 100 million tons of oil to China through Kazakhstan for 10 years, said the company.

Crude oil will be processed at factories in northwest China to meet the country's needs for petroleum products. The Company's total supplies to China since 2005 amounted to 442 million tons of oil. Rosneft is the leading oil exporter to PRC, providing 7% of the country’s total demand in raw annually. Rosneft is also one of the leading suppliers of petroleum products to China. Since 2009, the Company has exported about 41 million tons of petroleum products.

Also during the visit, agreements were signed in the field of low carbon development, digitalization and technological cooperation. Energy cooperation of Rosneft with Chinese partners is integral, covering all business segments.

In Udmurtia there is a joint mining enterprise of Rosneft and Sinopec – Udmurtneft. Over the 15 years of joint work, the enterprise's production amounted to over 96 million tons, more than 1.2 thousand new wells were drilled, and the volume of development drilling increased 6.3 times. During this period, Udmurtneft began developing 10 new fields, and the total increase in recoverable reserves amounted to about 110 million tons of oil.

Beijing Gas Company owns 20% of the share of Vercknechonskneftegas (a subsidiary of the Company), which is engaged in the exploration and development of the Verkhnechonskoye field located in the Irkutsk Oblast, which is one of the largest in the Eastern Siberia. The cumulative production of the enterprise is more than 87 million tons of oil. In addition, Rosneft and Beijing Gas are planning to implement a project to develop a network of gas service stations in Russia.

Cooperation with Chinese partners is also actively being developed within the framework of the large-scale project the "Zvezda" Shipbuilding Complex, which is being implemented by the Consortium of companies headed by Rosneft.

Rosneft and CNPC are organizers of Russian-Chinese Energy Business Forum established by the instruction of the President of the Russian Federation Vladimir Putin and the President of the People's Republic of China Xi Jinping. The objective of this Forum is a development of the energy dialogue between Russia and China, increase in bidirectional commodity circulation, extension of the portfolio of joint projects, attraction of investments and funding of projects.

Also, Rosneft and CNPC cooperate within the Joint Coordinating Committee (JCC), which was established by companies to develop cooperation in a number of strategic areas: interaction in the exploration and development of oil and gas fields, oil refining and petrochemicals, trade in oil and oil products, scientific and technical research, training of personnel, as well as the implementation of promising projects in the field of supply and oil services. In November 2021 there was the fourth meeting of the JCC.

As per MRC, Rosneft Oil Company and China National Petroleum Corporation (CNPC) signed the Memo on Cooperation in the field of low carbon development. Within the visit of the delegation headed by the President of the Russian Federation Vladimir Putin to Beijing (PRC), PJSC Rosneft Oil Company and China National Petroleum Corporation (CNPC) signed the Memo on Cooperation in the field of low carbon development.

Rosneft is the world's largest public oil company. The company accounts for about 5% of global oil production, and its proven reserves in the international category will exceed 5 billion tons of oil equivalent. The structure of Rosneft includes the Angarsk Polymer Plant and Ufaorgsintez (part of the structure of Bashneft) after the closing of the deal to purchase Bashneft on October 12, 2016. The main shareholder of Rosneft is the state-controlled Rosneftegaz (50% plus one share), and the British BP owns another 19.75%.

Trinseo to begin construction of its new recycling plant in Belgium by late 2022

Trinseo to begin construction of its new recycling plant in Belgium by late 2022

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics and latex binders, is targeting to begin construction of its world-class chemical recycling plant in Europe by the end of 2022, said the company on its site.

The company announced that plans for this plant are progressing rapidly. In late 2021, Trinseo contracted with global technology provider Synova and global engineering services company Worley, and is currently working on an engineering package and preparing Trinseo’ s Tessenderlo, Belgium site for recycling operations.

The plant will be dedicated to recycled polystyrene (rPS), meeting increased demand for the material as brand owners seek sustainable options. It will process 15 kilotons of rPS flakes annually that will be converted into high quality recycled styrene to enable further production of polystyrene (PS) and/or a styrene derivative including Acrylonitrile Butadiene Styrene (ABS) and Styrene Acrylonitrile (SAN).

PS is one of the most widely used plastics and can be fully circular. Due to its simple chemistry, it can be converted to its monomer yielding a material with identical properties as its fossil equivalent.

“Trinseo chose Synova and Worley to move forward with because of their leadership in their respective areas, the efficiency and maturity of their technologies and approaches, and high-quality output,” said Francesca Reverberi, SVP and Chief Sustainability Officer. “Both, also, have a very strong commitment to sustainability and this alignment was critical for us as we continue our journey and goal of delivering sustainable material solutions, while maintaining high quality and performance.”

Besides being a founding member of Styrenics Circular Solutions and an active member of over 60 industry and trade associations globally, regionally and locally, Trinseo has been an advocate for mass balance processes, essential to providing sustainable plastics solutions. The company recently announced an offtake agreement for recycled styrene with recycler Indaver, the acquisition of recycler Heathland B.V., and the introduction of bio-attributed PS, ABS and SAN.

As MRC reported earlier, Trinseo raised its prices for all PS, ABS and SAN grades on January 1, 2021, as stated below:

- STYRON GPPS -- by EUR175 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR175 per metric ton;
- MAGNUM ABS resins - by EUR155 per metric ton;
- TYRIL SAN resins - by EUR155 per metric ton.

According to ICIS-MRC Price report, in Russia, prices of Nizhnekamskneftekhim's GPPS are at Rb190,750-201,700/tonne, CPT Moscow, including VAT, in February, whereas HIPS prices are at Rb202,750-213,700/tonne CPT Moscow, including VAT. Prices of Penoplex's material to be shipped in February grew to the range of Rb209,000-211,000/tonne CPT Moscow, including VAT. Prices of Gazprom neftekhim Salavat's GPPS are at Rb190,500-199,000/tonne CPT Moscow, including VAT, in early February.

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 and has 26 manufacturing sites and one recycling facility around the world and approximately 3,400 employees.

Repsol seeking to sell parts of its Canadian assets

Repsol seeking to sell parts of its Canadian assets

MOSCOW (MRC) -- Spanish oil and gas company Repsol SA is considering putting some of its Canadian assets for sale later this year as it looks to reap the benefits of higher oil and gas prices, four sources told Reuters on Monday.

Repsol is seeking buyers for its holdings in the Duvernay basin, in western Canada, which are still in early development stages, according to its website. The company's 170,000 acres (688 square kilometers) in the Duvernay could fetch about CD750 MM (USD589.9 MM), according to an industry source.

Repsol also owns assets in Alberta's Greater Edson and Chauvin basins, along with gas- and power-related infrastructure.

Repsol has not made a final decision on any of the assets, the sources cautioned, adding that among the options it could consider are partial sell-downs or joint ventures.

Repsol, whose total annual Canadian production was 57,800 barrels of oil equivalent per day in 2019, could still choose to retain the assets as is, they said.

As MRC reported earlier, Repsol said in October, 2021, it will invest EUR2.549 billion (USD2.958 billion) in the entire hydrogen value chain by 2030. Renewable hydrogen is one of Repsol’s strategic pillars to achieve zero emissions by 2050. Thus, the company presented its hydrogen strategy for up to 2030.

We remind that the “Cracker of the Future” consortium has recently announced two new member companies: Repsol and Versalis (Eni) have joined the consortium.

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.

Repsol is headquartered in Madrid, Spain. In the 2020 Forbes Global 2000, Repsol was ranked as the 645th-largest public company in the world. It has more than 24,000 employees worldwide. Its products are distributed in nearly 100 countries to around 24 million customers. Repsol Industrial Complex in Sines is the largest chemical site in Portugal.

COVID-19 - News digest as of 07.02.2022

1.Sumitomo Chemical net profit jumps on growth of petchemichal, plastics business earnings

MOSCOW (MRC) -- Sumitomo Chemical reports a steep increase in net profit to Yen 133.6 billion (USD1.1 billion) in the fiscal first nine months ended 31 December, from Yen 20.2 billion a year earlier, on sales up 24% to Yen 2.0 trillion, as per the company's press release. Operating income was Yen 197.9 billion, higher by 71% year on year (YOY). les at Sumitomo's petrochemicals and plastics business segment, the company's largest, rose by 53% YOY to Yen624.9 billion. The unit swung to an operating profit of Yen 51.9 billion from an operating loss of Yen 27.8 billion a year earlier. The company adds that market prices for petchem products, synthetic resins, and synthetic fibers increased owing to demand recovery and a rise in raw material costs. Margins also improved.


Russian Acron to buy fertilizer plant in Brazilia from Petrobras

Russian Acron to buy fertilizer plant in Brazilia from Petrobras

MOSCOW (MRC) -- Brazil’s state-run oil company Petrobras has reached a deal to sell the fertilizer plant UFN3 to Russia’s Acron Group, according to Investing with reference to confirmation in Petrobras' securities filing on Friday.

Earlier, Brazil’s Agriculture Minister Tereza Cristina Dias announced the sale, saying she was briefed by Petrobras Chief Executive Joaquim Silva e Luna and Mining and Energy Minister Bento Albuquerque on the deal for the plant, which has been up for sale since 2017.

Petrobras and Dias did not provide a price for the deal. Dias said that should be one of the topics of President Jair Bolsonaro’s official trip to Russia Feb. 14-17.

The signing of the agreement depends on Petrobras and government approvals, it said in the securities filing.

Acron, a leading mineral fertilizer producer in Russia and globally, had been in talks with Petrobras about buying the plant in 2018 that were suspended and resumed last year.

The designed capacity of the UFN3 plant, also known as Nitrogen Fertilizer Unit III, is 800,000 tons of ammonia and 1.3 million tons of carbamide per year.

As MRC reported earlier, Russia introduced a two-month ban on the export of ammonium nitrate on February 2, 2022. The corresponding government decree was signed, the press service of the Cabinet of Ministers reported. "This is a temporary measure, the remaining volume can be exported from April 2, when Russian enterprises will receive ammonium nitrate in the required volume, and demand for it in the domestic market will peak," said First Deputy Prime Minister Andrey Belousov, whose words are quoted in the message.

According to VTB Capital's analysts, a two-month ban on the export of ammonium nitrate will not have a significant impact on producers: the falling volumes are insignificant and can be compensated after the restrictions are lifted. According to them, 60% of the ammonium nitrate produced in Russia is consumed domestically (45% in agriculture and 15% in industry). The largest producer is Akron, whose ammonium nitrate accounts for about 30% of sales.

Acron Group is Russia's leading vertically integrated producer of NPK compound fertilizers and is one of the top ten global leaders in terms of NPK production capacity. The company operates two chemical plants and a mining and processing plant in Russia with a total production capacity of over 8 million tons of end products.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.