PetroChina 2022 net profits up 62%

PetroChina reported a net profit increase of 62.1% in 2022, thanks to strong prices of oil and gas, the company said.

Chemical business encountered an operation loss of yuan (CNY) 598m (USD87m), reversing the CNY12bn profits in 2021, due to significant rise on crude-related cost. Oil, gas and new energy segment generated CNY165.7bn profits, 142% more than the previous year, boosted by prices rallies.

Ethylene production increased 10.5% to 7.4m tonnes. Capital expenditure (capex) stood at CNY274.3bn, up by 9.2% from 2021.

The company expects that global economy to continue recovering but at a slower pace, with many uncertainties and crude prices may face high volatility in 2023. China’s economic growth will rebound, driving up demand recoveries of refined oil, while competition will remain fierce.

The company targets to produce 1,727.7m barrels of oil equivalent (boe) of oil and gas in 2023, an increase of 2.5% from the 1,685.4m boe in 2022. PetroChina aims to process 1,293.1m bbls of crude oil in 2023, up by 6.6% from 2022. Capex in 2023 is expected to decrease to CNY243.5bn, which is 11% less than 2022.

We remind, China’s biggest oil and gas producer PetroChina posted a big 71.5% increase on net profits in the third quarter, thanks to strengthening oil prices, the company announced.

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Enterprise Products Partners has a plan to complete about USD6.1bn worth of capital expenditures, the company announced.

Among the upcoming projects is the Morgan’s Point plant and terminal flexibility upgrade, located at the Enterprise facility in La Porte, Texas. As part of the plan, a 120,000 bbl/day train would be converted to a flex unit in the second half of 2024.

In 2025, a 900,000 bbl refrigerated ethane tank is due to be completed. The facility currently produces 500,000 gal/day of MTBE. Enterprise also plans an expansion project at its Beaumont, Texas, location.

In the second half of 2025, a 120,000 bbl/day refrigeration train is set to be completed, as well as a 900,000 bbl refrigerated ethane tank. The tanks are expected to enable capability to load at 45,000 bbl/hour onto a vessel (over 2m bbl/day across terminals.)

In order to meet growing demand, Enterprise also plans an expansion at its Houston Ship Channel hydrocarbon terminal in Texas. To be completed in the first half of 2025, Enterprise said the expansion would optimise refrigeration for greater product flexibility.

The expansion would create the ability to fully refrigerate polymer-grade propylene (PGP) exports, allowing for dual cargo liquid petroleum gas (LPG) and PGP loadings, and would increase total load max rates to 43,000 bbl/day.

We remind, a joint venture made up of Enterprise Products and Navigator plans to increase the export capacity of an ethylene terminal in the US by at least 550,000 tonnes/year to up to 2m tonnes/year. The project would increase the total export capacity at the terminal to a maximum of 3m tonnes/year, Navigator said. Construction should finish by the end of 2024.

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Canada Infrastructure Bank (CIB) said on Monday it would invest CD277-MM in a carbon recycling facility in Quebec run by a joint-venture backed by Shell and Suncor Energy Inc., said Hydrocarbonprocessing.

The facility will generate hydrogen and oxygen by using electrolysis to convert non-recyclable waste and residual biomass into biofuels with a capacity of up to 130 million liters annually.

Proman and the government of Quebec are also partners in the joint venture running the facility in Varennes. The project is expected to cost CD1.2-B.

Construction at the CD1.2-B has already begun and commercial output is expected to begin in 2025.

We remind, China's mega private refineries are expected to operate at full processing rates or higher until April as their margins have improved after the government lifted COVID-19 restrictions. The rise in crude demand at Zhejiang Petrochemical (ZPC) and Hengli Petrochemical, which account for 6.5% of China's refining capacity, will lift crude imports by the world's top importer, with volumes expected to hit record levels this year and support global prices.

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North American chemical railcar traffic fell for a fourth straight week, with loadings for the week ended 25 March down 1.6% year on year to 46,366, led by a 3.5% decline in the US, according to the latest freight rail data on Wednesday.

For the first 12 weeks of 2023 ended 25 March, North American chemical rail traffic was down 3.4% year on year to 542,955 railcar loadings, with US traffic down 6.9%, to 385,829 loadings.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, North American chemical railcar traffic fell for a third straight week, with loadings for the week ended 18 March down 2.2% year on year to 45,200, led by a 5.8% decline in the US.

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CNOOC and Shell Petrochemicals Company Ltd (CSPC), a joint venture established by China National Offshore Oil Corp (CNOOC) and Royal Dutch Shell, signed a framework agreement worth USD5.6-bn with China’s Huizhou city government to expand its ethylene project in the city, said Hydrocarbonprocessing.

CSPC is expected to add 1.5 million tons per annum ethylene production capacity on top of its existed 2.2 million tons in Huizhou, according to a statement issued by CNOOC on Sunday night.

The new project will have 14 petrochemical production lines to churn out products including ethylene, propylene, butadiene and ethylene glycol.

We remind, China's mega private refineries are expected to operate at full processing rates or higher until April as their margins have improved after the government lifted COVID-19 restrictions. The rise in crude demand at Zhejiang Petrochemical (ZPC) and Hengli Petrochemical, which account for 6.5% of China's refining capacity, will lift crude imports by the world's top importer, with volumes expected to hit record levels this year and support global prices.

mrchub.com