Pemex sees poor environmental record as threat to financing

Pemex sees poor environmental record as threat to financing

MOSCOW (MRC) -- Mexican state oil company Pemex said it has been falling behind in a global race to transition from fossil to renewable energy sources, and that stricter demands from environmentally conscious investors pose a threat, said Reuters.

Investors have for years considered Pemex a laggard as rivals worldwide moved to dramatically decrease emissions from energy production and consumption over climate change concerns. In its updated business plan for 2023 to 2027, Pemex said its environmental, social and governance (ESG) record risked hurting its financing.

"Limitations from ESG financing" are posing a threat, as is the "acceleration in energy transition that is decreasing the market for Pemex's crude oil and products," the company said. Further weaknesses are "important gaps in reaching net-zero-emissions" and operational challenges, particularly in gas exploration and production.

Julia Gonzalez, an expert on energy and infrastructure at law firm Gonzalez Calvillo, said Pemex urgently needed private investment and that Mexico should not exclusively rely on public funds to maintain or improve infrastructure.

"Pemex has to make significant efforts if it intends to access financing," said Gonzalez. "It's increasingly important to prevent and mitigate risks associated with ESG, including, of course, climate change."

While the business plan reiterated promises made by President Andres Manuel Lopez Obrador to reduce Pemex's emissions, it focused on oil and gas production and exploration as well as refining rather than shifting toward renewables.

Lopez Obrador says he inherited a company weakened by decades of mismanagement and corruption under his predecessors. Even so, his energy policies have limited participation by private companies that could bring in funds.

This year, Pemex has come under increased pressure to reduce the vast amounts of natural gas it burns off - including at two of its top priority fields, Ixachi and Quesqui - to the detriment of the environment.

As per MRC, Pemex requested this week almost USD6.5 bn in additional funding from the government to pay for works at the"'Dos Bocas" refinery this year. The additional funding is to cover works not initially included in the project's proposal, higher construction and startup costs, according to the document and sources. Mexican President Andres Manuel Lopez Obrador considers the new refinery a signature project and has argued it will help the country cut a longstanding dependence on gasoline and diesel imports.

Fire at Lanaz refinery in Iraq Erbil under control

Fire at Lanaz refinery in Iraq Erbil under control

MOSCOW (MRC) -- A fire at the Lanaz refinery in the northern Iraqi city of Erbil has been brought under control by civil defence teams, said Reuters.

The director of civil defence teams in Erbil said no casualties were reported.

Photos shared earlier by INA showed a big blaze and dark fumes at the Lanaz refinery, located on al-Kuwayr-Erbil road.

The cause of the fire was not clear and no further information was immediately available.

As pre MRC, on 28 of December, a fire broke out in a refinery in Iraq's northern city of Erbil and attempts by firefighting teams to get it under control are ongoing.

We remind, Lanaz Co has let a contract to Honeywell UOP LLC to deliver technology licensing and equipment for a project to increase production of cleaner-burning transportation fuels at the operator's 100,000-b/d refinery at Erbil in the Kurdistan region of Iraq. As part of the contract, Honeywell UOP supplied basic engineering design, licensing, and full-modular units equipped with its proprietary naphtha hydrotreating and fixed-bed platforming process technology for the Lanaz clean-fuels upgrading project, the service provider said in a 10 Jan 2022.

AkzoNobel finalizes EUR500 million share buyback

AkzoNobel finalizes EUR500 million share buyback

MOSCOW (MRC) -- AkzoNobel has repurchased 162,810 of its own common shares in the period from December 12, 2022, up to and including December 16, 2022, at an average price of €64.61 per share. The consideration of the repurchase was EUR10.52 mln, said the company.

This finalizes the EUR500 million share buyback announced on February 9, 2022, which was scheduled to be completed by the end of 2022, as previously stated. The total number of shares repurchased under the program was 7,263,728 ordinary shares, at an average price of EUR68.84 per share.

This share buyback was implemented within the limitations of the authority granted by the Annual General Meeting (AGM) on April 22, 2022. The share repurchase program was conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the safe harbor parameters prescribed by the Commission Delegated Regulation 2016/1052 for share buybacks.

We remind, AkzoNobel has completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH, a deal which strengthens the company’s performance coatings portfolio. The acquired business will complement AkzoNobel’s existing powder coatings offering and expand the range of innovative products the company supplies.

INEOS and SINOPEC complete two out of four significant petrochemical deals

INEOS and SINOPEC complete two out of four significant petrochemical deals

MOSCOW (MRC) -- INEOS and SINOPEC have completed two of the four significant petrochemical deals announced earlier this year, said the company.

The two deals are: SECCO joint venture. INEOS has acquired 50% of Shanghai SECCO Petrochemical Company Limited.

ABS joint venture. INEOS and SINOPEC have also established a 50:50 joint venture for ABS (Acrylonitrile Butadiene Styrene), based on INEOS’ world leading proprietary ABS Technology.

The third and fourth deals are expected to complete in 2023. These are: HDPE joint venture. INEOS and SINOPEC will also establish a third 50:50 joint venture to build a new 500ktpa HDPE (High-Density Polyethylene) plant in Tianjin.

INEOS to acquire a 50% share in the Tianjin Nangang Ethylene Project, which is currently under construction by SINOPEC and is expected to be on-stream by the end of 2023.

Jim Ratcliffe, Chairman and CEO INEOS said “These agreements significantly reshape INEOS’ petrochemical production and technology in China. We are pleased to make these major investments with SINOPEC in areas that provide the best growth opportunities for both companies. Both parties recognise the potential for closer collaboration across a number of other areas as we look ahead.”

Dr. Ma Yongsheng, Chairman of SINOPEC said, “SINOPEC and INEOS have enjoyed many years of partnership and these two significant deals are testament to the cooperation in the petrochemical field between us, which is now taken to a new level. Driven by the dual goals of managing carbon emissions and the energy transition, the two parties will play to their respective advantages in market location, resources and technology, to create a win-win development for both companies to expand further possibilities in the development of Chinese petrochemical market."

We remind, 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.

Omani OQ, Kuwait Petroleum International and SABIC plan petrochemicals complex

Omani OQ, Kuwait Petroleum International and SABIC plan petrochemicals complex

MOSCOW (MRC) -- Oman’s state energy company OQ has signed an agreement to develop a petrochemicals complex in the Duqm economic zone with Kuwait Petroleum International and Saudi Basic Industries Corp. — also known as SABIC, state news agency ONA reported on Wednesday according to Reuters.

The special economic zone at Duqm located in Al Wusta Governorate in Oman spans across an area of 2,000 sq. kilometers and has several economic, tourism and service development zones.

It lso has a multi-purpose port, a dry dock for repairing ships, a fishing port, a regional airport, and tourist, industrial and logistical areas.

The new deal signed by SABIC is one of the many recent agreements by the company to develop petrochemical complexes within the Kingdom and abroad.

On Dec. 18, SABIC signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corporation, known as Sinopec, to assess the economic and technical feasibility study to develop an integrated petrochemical complex with an existing refinery in Yanbu.

In November, SABIC and Saudi Aramco signed another initial agreement with Polish refining firm PKN Orlen to explore the potential of joint investments in petrochemical projects in Poland and other European markets.

During the same month, the firm also announced that it is intending to set up a plant to convert crude oil into petrochemicals, capitalizing on growing demand.