Russia replaces Iraq as top oil supplier to India in November

Russia has for the first time emerged as top oil supplier to India replacing Iraq as refiners last month snapped up oil from Moscow fearing a price cap from Dec. 5 could hit supplies and choke payment avenues, data obtained from trade sources showed, said Reuters.

India's oil imports from Russia rose for the fifth straight month, totaling 908,000 bpd in November, up 4% from October, the data showed. The Group of Seven nations, Australia, and the 27 European Union countries have imposed a price cap of USD60 a barrel on Russian seaborne oil from Dec. 5 as the West tries to limit Moscow's ability to finance its war in Ukraine.

The price cap plan calls for G7 countries to deny insurance, finance, brokering, navigation, and other services to oil cargoes priced above the price cap on crude and oil products. Russian oil accounted for about 23% of India's overall import of about 4 million bpd oil in November, the data showed.

India's overall imports in November declined 11% from October on lower purchases by Russia-backed Indian refiner Nayara Energy, which had shut its 400,000 bpd refinery for maintenance during the month, the data showed. India, which rarely used to buy Russian oil because of costly logistics, has emerged as Russia's second biggest oil client after China as refiners snap up discounted crude shunned by Western nations since the February invasion of Ukraine.

Last month India's oil imports from Iraq declined to the lowest since September 2020, while that from Saudi Arabia plunged to a 14-month low, the data showed. Indian refiners that were initially wary of placing orders for Russian crude for loading post Dec. 5, have resumed purchases from Moscow as sanctions allow direct payment for Russian oil, sources said.

Higher purchases of Russian oil dragged down Indian imports from the Middle East and member nations of Organization of Petroleum Exporting Countries (OPEC) declined to the lowest ever in November, the data showed. During April-November, the first eight months of this fiscal year, Iraq continued to be the largest oil supplier to India followed by Saudi Arabia and Russia, which has knocked down UAE to the fourth position.

We remind, BP would like to confirm the current status of its business and interests in Russia, said the company.
On 27 February 2022, bp’s board decided that bp would exit its 19.75% shareholding in Rosneft and its other business in Russia. bp was the first international company to announce such an exit. That decision remains unchanged and bp has no intention of returning to business as usual in Russia.
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MEGlobal has nominated its January 2023 monoethylene glycol (MEG) Asian Contract Price (ACP) at USD820/tonne, up by USD20/tonne from the December ACP, said the company.

The price is on a CFR (cost and freight) Asia basis.

Asia MEG market has bottomed out in December after China relaxed its COVID curbs, but the upcoming new capacities in China and India may weigh on the prices.

We remind, MEGlobal has nominated its December 2022 monoethylene glycol (MEG) Asian Contract Price (ACP) at USD800/tonne, down by USD10/tonne from the November ACP.

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Borealis announces the appointment of Michael Schenk as Vice President Treasury and Funding effective 1 January 2023, said the company.

Michael Schenk is currently Director of Internal Audit & Risk Management at Borealis and joined the company in 2008, when he was appointed Head of Business Unit Controlling, Wire & Cable. In 2009, he became Head of Business Finance for Polyolefins & Innotech, and in 2013 took on the role of Head of Group Corporate Finance & Investor Relations. He became Chief Audit Executive of Internal Audit & Risk Management in 2017.

Before joining Borealis, Michael Schenk worked in Group Treasury at UBS Group in Zurich, Switzerland, and as an investment analyst at UBS Investment Bank in London, UK. He holds a Master’s degree in International Business from the University of Vienna.

“For several years now, Michael Schenk has been fostering and developing a systematic, disciplined and innovative approach to risk management, financial control and governance processes at Borealis,” says Mark Tonkens, Borealis Chief Financial Officer. “His leadership experience and broad background in treasury, financial controlling and investment banking will be an asset to Borealis as it continues to develop its robust and well-diversified funding portfolio."

Michael Schenk succeeds Jan-Martin Nufer, who was appointed CFO of Borouge PLC effective 1 November 2022.

We remind, Borealis is designing a first-of-its-kind commercial-scale advanced mechanical recycling plant to be located in Schwechat, Austria. The plant will be based on Borealis’ own Borcycle™ M technology, which transforms polyolefin-based post-consumer waste into high-performance polymers suitable for demanding applications. This represents another tangible step forward on Borealis’ path to net zero.

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Chairman Khalid al-Zamil, vice chairman Fahad al-Rajhi reappointed by board for another term, said Maal.

Sahara International Petrochemical Company (Sipchem) is pleased to announce to its Shareholders that its Board of Directors, which was elected during the 24th Ordinary General Assembly Meeting held on Wednesday 30 November 2022 for a three-year term that starts on 10th December 2022 and will end on 09th December 2025, issued the following resolutions on 12th December 2022.

A secretary of the Board of Directors has also been appointed Mr. Fahad M. Al-Ohaly. Also, Sipchem Board has appointed representatives of the company for the Capital Market Authority (CMA) and the Saudi Tadawul Group (Tadawul) the Securities Depository Center Company (Edaa).

We remind, Sahara International Petrochemical Co's (Sipchem) net profit fell by 24.8% year on year in the third quarter amid a drop in selling prices, the Saudi Arabia producer said in a stock exchange filing. Decrease in most of the selling prices of company’s products in the third quarter specially methanol, butanediol, ethyl acetate and polypropylene (PP), the company said in a filing on the Saudi bourse, Tadawul, on 18 October. - Earnings also weighed by the increase in feedstock prices of butane, ethylene, ethanol and propane.

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INEOS Olefins & Polymers USA announced today it has entered into a renewable power purchase agreement which will enable the construction of a new 310-megawatt solar project located in north central Texas, said the company.

The INEOS Hickerson Solar Farm will be constructed, owned and operated by a subsidiary of NextEra Energy Resources, LLC, the world’s largest generator of renewable energy from wind and sun and a world leader in battery storage. The entire output of the new solar project will be dedicated to INEOS O&P USA and is projected to cover the net purchased electricity load of all 14 of INEOS O&P USA’s manufacturing, fractionation and storage facilities in the U.S. The new solar project will be located in Bosque County, Texas, and is ultimately expected to produce 730,000 megawatt hours of clean energy annually – the equivalent of over 68,000 homes’ annual electricity use – and is expected to reduce greenhouse gas emissions by more than 320,000 tons per year.

“INEOS O&P USA seeks to be a bellwether of what the petrochemical community can do to adopt renewable energy among its long-term energy demands, and this is one of many important steps being taken globally to reduce the carbon footprint of all the INEOS businesses,” said CEO Mike Nagle.

“We’re pleased to work with INEOS O&P USA and support the company’s renewable energy goals,” said Matt Handel, senior vice president of development for NextEra Energy Resources. “We commend INEOS for taking a leading role in decarbonizing the petrochemical industry.” Construction on the INEOS Hickerson Solar Farm is expected to commence in Q1 2024, with a planned commercial operation date by December 2025.

We remind, Ineos has agreed a fourth joint venture with Sinopec that will see it take a 50% share in the Tianjin Nangang project, which is currently underway and due to go on stream at the end of 2023.

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