Eneos to purchase alternative to Russian crude oil from Middle East

Eneos to purchase alternative to Russian crude oil from Middle East

Japan's biggest oil refiner, Eneos Holdings Inc. has no plans to buy Russian crude until all problems related to the Ukraine crisis are over and will purchase alternative supplies from the Middle East, reported Reuters with reference to its chairman's statement on Wednesday.

"For now, we intend to get alternatives from existing trading partners such as Saudi Arabia, Abu Dhabi and Kuwait, but we will continue our efforts to diversify our sources to reduce reliance on the Middle East in the future," Tsutomu Sugimori, chairman of Eneos Holdings, told reporters.

Last month, Sugimori said that Eneos had stopped buying Russian crude in response to Russia's invasion of Ukraine, which Moscow calls a "special operation."

Japan was a buyer of Russian crude in 2021.

The United States said in March it would sell 180 MM barrels of crude from its Strategic Petroleum Reserve at a rate of 1 MM barrels per day starting in May to help dampen the surge in prices following the Ukraine crisis. This represents the biggest release from the stockpile since it was created in the 1970s.

Members of the International Energy Agency, including Japan, are releasing an additional 60 MM barrels.

"It's a fairly large volume and it will have a certain effect on oil market," said Sugimori, also president of the Petroleum Association of Japan.

As MRC informed previously, earlier this month, TotalEnergies and ENEOS announced a collaboration to jointly conduct a feasibility study to assess the production of sustainable aviation fuel (SAF) in ENEOS' Negishi refinery in Yokohama city, Japan.

We remind that ENEOS Corporation restarted its naphtha cracker in Kawasaki on 1 February 2021. The company shut this cracker with an annual capacity of 515,000 tons/year of ethylene, 300,000 tons/year of propylene, and 105,000 tons/year of butadiene on 4 December, 2020, for repairment after a technical issue reported at the butadiene separation unit and initially planned to resume operations on 28 December, 2020.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Japan's largest refiner JXTG Nippon Oil & Energy was renamed ENEOS Corporation on 25 June, 2020, as part of a wider re-organization of the parent company JXTG Holdings. The move, which also involved renaming the parent company to ENEOS Holdings upon approval at its annual shareholders meeting in June 2020, comes as it strives to be a more comprehensive energy and materials company under its 2040 vision announced in May, 2019. JXTG Holdings was formed as a result of a merger between JX Holdings and TonenGeneral in April 2017. This followed the establishment of JX Holdings as a result of the merger between Nippon Oil and Nippon Mining Holdings in April 2010.
MRC

Solvay implements global price adjustment for mining products in April

Solvay implements global price adjustment for mining products in April

Solvay is implementing a global price adjustment of 10% to 30% on certain product lines from its Mining Solutions business, effective for all shipments as of April 1 or as contracts allow, as per the company's press release.

Offered by Solvay’s global business unit Technology Solutions, the products subject to this price adjustment are: ACCO-PHOS depressants; ACORGA extraction reagents; AERO promoters; AERODRI surfactants; AEROFLOAT promoters; AEROFROTH frothers; AEROMINE promoters; AEROPHINE promoters; CYANEX extraction reagents;
CYBREAK defoamers; CYFLOC flocculants; CYQUEST modifiers; MAX HT scale inhibitors; OREPREP frothers;
and PHOSFLOW scale inhibitors.

The price adjustment addresses the global inflationary environment and unprecedented raw material, energy and logistics costs, which have been further heightened by geopolitical tensions and the Russia-Ukraine conflict.

These price increases are necessary to maintain the high quality standards that Solvay’s customers have come to expect and to provide security of supply.

As MRC reported before, earlier this month, Solvay partnered with Mitsubishi Chemical Advanced Materials to recycle end-of-life medical components. New collaboration will help customers reach sustainability goals for high-performance Udel PSU polymers in demanding applications.

We remind that Belgian chemicals group Solvay has suspended operations and new investments in Russia after the invasion of Ukraine. The suspension is temporary and will be reviewed in due course, a spokesperson said in early March, 2022, adding that the company had put a task force in place to manage the impact of the measures.

We also remind that in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

Lanxess reports strong start to year, Q1 sales

Lanxess reports strong start to year, Q1 sales

German specialty chemicals maker Lanxess said it expects a significant rise in first-quarter core profit and sales, citing strong demand, said Reuters.

First-quarter EBITDA pre-exceptionals is expected to rise 32% to 320 million euros (USD345 million), while sales are seen up 44% at 2.43 billion, the company said. Full results for the first-quarter are due May 5.

“Demand for our high-margin specialty chemicals products remains high now. This course makes us less vulnerable to global fluctuations in demand. Nevertheless, given the geopolitical uncertainties, we remain very vigilant for the rest of the year,” CEO Matthias Zachert said.

Lanxess reports its final Q1 results on 5 May.

As per MRC, Lanxess said it was suspending its business activities in Russia due to the war in Ukraine. Thus, the company had “suspended business activities with Russian customers as far as contractually possible until further notice” and had suspended all investments in Russia. Its sales in Russia and Ukraine made up less than 1% of its global sales, it said.

Lanxess is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
mrchub.com

CNOOC shares surge by 44% in Shanghai debut

CNOOC shares surge by 44% in Shanghai debut

MOSCOW (MRC) -- China oil giant CNOOC Ltd shares surged as much as 44% in their Shanghai debut on Thursday, defying broad market weakness, as investors sought safety in the Chinese oil giant amid high energy prices and quickening inflation, reported Reuters.

After opening 20% higher, CNOOC shares immediately shot up 44% on the Shanghai Stock Exchange, hitting a price ceiling for the day and triggering a 30-minute trading halt. The stock ended the session up 27.7%.

It marked a bright spot in a bleak Shanghai market that slumped more than 2% amid COVID-19 lockdowns and geopolitical tensions.

"CNOOC is being chased by investors who are seeking shelter in big caps with relatively low valuation and high dividends," said Linus Yip, chief strategist at First Shanghai Group. "The stock also whets market appetite at a time when oil prices are climbing and inflation accelerating."

China's largest offshore oil producer raised 28.08 billion yuan ($4.41 billion) in the country's 11th-biggest public stock offering. It said it would use the proceeds to fund one gas and seven oilfield projects in China and overseas, and to replenish capital.

The Shanghai listing "is a key milestone in the company's history," CNOOC Chairman Wang Dongjin said in a statement.

CNOOC will fully exploit financing channels both home and abroad, to promote quality growth, and create value for shareholders, he added.

As MRC wrote before, China's Ministry of Commerce on Nov. 10, 2021, 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.

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

LyondellBasell to cease operation at its Houston refinery by end December

LyondellBasell to cease operation at its Houston refinery by end December

LyondellBasell has announced its decision to cease operation of its Houston Refinery no later than December 31, 2023, as per the compay's press release.

In the interim, the company will continue serving the fuels market, which is expected to remain strong in the near-term, and consider potential transactions and alternatives for the site.

"After thoroughly analyzing our options, we have determined that exiting the refining business by the end of next year is the best strategic and financial path forward for the company," said Ken Lane, interim CEO of LyondellBasell. "These decisions are never easy and we understand this has a very real impact on our refinery employees, their families and the community. We are committed to supporting our people through this transition."

Lane added, "While this was a difficult decision, our exit of the refining business advances the company's decarbonization goals, and the site's prime location gives us more options for advancing our future strategic objectives, including circularity."

LyondellBasell's Houston Refinery has a rated capacity to transform 268,000 barrels per day of crude oil into transportation fuels and other products including lubricants, chemical intermediates and petroleum coke.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas shipments of PP random copolymers decreased significantly.

As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine's "World's Most Admired Companies" for the fifth consecutive year.
MRC