Maire Tecnimont wins deal to design PP plant in Vietnam

Maire Tecnimont wins deal to design PP plant in Vietnam

MOSCOW (MRC) -- Vietnam's Stavian Quang Yen Petrochemical JSC said it had awarded a contract to design a USD1.5-B polypropylene plant in the country to Italian engineering group Maire Tecnimont, said Hydrocarbonprocessing.

The 10-month Front End Engineering Design contract signed on the same day in Hanoi was for the development of the plant to be built in the northern province of Quang Ninh, Stavian said in a statement.

Stavian said earlier the plant would start commercial operations from the fourth quarter of 2026 and would produce 600,000 tons of polypropylene annually to supply manufacturers of home appliances, automobiles, electronics and medical equipment.

Vietnam's demand for plastic raw materials, estimated at eight million tons last year, is forecast to increase 6.6% a year from now through 2025, Stavian chairman Dinh Duc Thang said.

"Domestic supply is limited, leaving significant room for development," Thang said in the statement.

We remind, Maire Tecnimont S.p.A. (Milan, Italy) announced that its Sustainable Technology Solutions subsidiary NextChem has been awarded a new contract by Storengy to carry out a further advanced basic engineering study for the gasification of the waste wood and the purification system of the syngas to produce biomethane.

India plans to fill Mangalore SPR with 5.5 mln barrels of oil

India plans to fill Mangalore SPR with 5.5 mln barrels of oil

MOSCOW (MRC) -- India plans to import about 5.5 million barrels of crude oil after October to fill part of its Mangalore strategic petroleum reserve in southern Karnataka state and may change the crude grade at another facility, said Hydrocarbonprocessing.

The oil imports are needed because one of the Mangalore reserve tanks is currently empty. India, the world's third-biggest oil importer and consumer, has built strategic storage at three locations - Mangalore, Padur and Vizag - in southern India to store up to 5 million tons of crude (37 million barrels) that could be tapped on in case of supply disruption.

Indian Strategic Petroleum Reserves Ltd (ISPRL), the government-owned company mandated to manage the SPRs, has been selling from the caverns to local refiners after a change in the government rules in 2021.

The Mangalore SPR facility has two equal size compartments of about 5.5 million barrels each. One of those that had previously contained Saudi oil is empty, the source said.

This compartment would be filled after the single point mooring (SPM) facility at the Mangalore port resumes operations in October, the source said.

The SPM, used by very large crude carriers for discharging oil, is typically shut during the monsoon season. The second compartment at the Mangalore SPR has been leased to UAE's Abu Dhabi National Oil Co.

The Indian government has allocated $611.40 MM for its strategic oil purchases this fiscal year to March 31, 2024. Overall, India will need to import about 13 million barrels of oil for the SPR as later this year another SPR would be empty, the source said.

India had released oil from its strategic reserves as part of the U.S.-coordinated program to calm global oil prices in 2021. ISPRL plans to sell a second batch of 300,000 tons of Iraqi Basra crude from the 1.03 million ton Vizag SPR in southern Andhra Pradesh state, according to its website.

The company plans to sell the remaining oil by end-2023 or early 2024 and refill it with possibly another crude grade, the source said. "ISPRL might fill Vizag SPR with a new grade depending on pricing," the source said. ISPRL did not respond to a request seeking comment.

We remind, Reliance Industries Limited (RIL) unveiled India’s first Hydrogen Internal Combustion Engine technology solution for heavy duty trucks flagged off by Honourable Prime Minister Narendra Modi at the India Energy Week in Bangalore. The Hydrogen Internal Combustion Engine (H2ICE) powered trucks will emit near zero emissions, deliver performance on par with conventional diesel trucks and reduce noise and with projected reductions in operating costs thus redefining the future of Green Mobility.

Shell reports 'operational upset' at unit in Singapore complex

Shell reports 'operational upset' at unit in Singapore complex

MOSCOW (MRC) -- A unit at Shell's Pulau Bukom refinery and petrochemical complex in Singapore experienced an "operational upset" on Tuesday, said Reuters.

The incident took place at about 10:15 pm local time (1415 GMT) on Tuesday and resulted in flaring, Shell said in a statement on Wednesday.

Shell declined to name the unit and the impact on its production for commercial reasons. The issue had occurred at the company's cracker, people familiar with the matter said, adding that the unit is running at a reduced rate after the incident.

Shell operates a refinery and 1 million tpy cracker on Pulau Bukom, a small island in the Southeast Asian city-state and home to the company's only energy and chemicals park in Asia.

We remind, Shell's Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.

AkzoNobel launches a new range of powder coatings

AkzoNobel launches a new range of powder coatings

MOSCOW (MRC) -- Color expertise is at the heart of a new range of Interpon A1243 powder coatings to protect and enhance brake calipers, giving traditional and Electric Vehicle (EV) automotive manufacturers the style, they demand matched with superior levels of mechanical performance for life out on the road, said the company.

With automotive OEMs leaning towards larger wheels for certain models and a more ‘open’ design, brake calipers have become style accessories. Accent colors and finishes, especially bright yellows and reds but also electric blues and greens with metallic pigments and other special effects are particularly on trend, and especially popular for more sporting brand.

Colors within the Interpon A1243 powder coatings range are driven by and matched to the designs and style demanded by automotive OEMs. Bespoke colors can also be made to complement body colors and trim.

In terms of performance, the single coat Interpon A1243 combines superior mechanical properties with excellent protection against corrosion, chemicals (e.g., gasoline, brake fluid etc.), and brake dust, keeping the calipers easier to clean and looking better for longer. The powder coating also resists chips and general wear and tear, and specific protection against UV light that stems from the wheels’ size and design.

Gustavo Carvalho, Automotive Global Segment director said that the innovation behind the new range is significant. “OEMs demand high performance and protection against brake dust and harsh chemicals and oils that brake calipers are subjected to. That’s standard.”

“But what they also want is color and style, and that’s where our true innovation and experience counts, working in partnership with the OEMs and going the extra mile with coatings that combine exceptional appearance with the tough, durable finish for life on the road,” added Carvalho.

We remind, AkzoNobel is to further strengthen its China position after reaching an agreement with Sherwin-Williams to acquire its Chinese Decorative Paints business. Completion, which is subject to regulatory approvals, is expected in the second half of 2023. The business has an annual revenue of about EUR100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognized in China.

Oil prices slide 2% as strong US economic data boosts dollar

Oil prices slide 2% as strong US economic data boosts dollar

MOSCOW (MRC) -- Oil prices slid about 2% on Thursday after solid U.S. economic data spurred the dollar to a two-month high on growing expectations the U.S. Federal Reserve could raise interest rates again in June, said Reuters.

Brent futures fell USD1.17, or 1.5%, to $75.79 a barrel by 1:23 p.m. EDT (1723 GMT), while U.S. West Texas Intermediate (WTI) crude fell USD1.06, or 1.5%, to USD71.77.

The U.S. dollar rose to its highest since March 17 against a basket of other currencies on reports showing lower-than-expected U.S. initial jobless claims and optimism about a possible U.S. debt ceiling deal to avert a potential default. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies.

Dallas Federal Reserve Bank President Lorie Logan said she is concerned that "much too high" inflation is not cooling fast enough yet to allow the Fed to pause its interest-rate hike campaign in June. High interest rates boost borrowing costs, which can reduce oil demand by slowing economic growth.

"Good news for the economy is now bad news for the crude demand outlook as economic resilience will force the Fed to kill the economy," said Edward Moya, senior market analyst at data and analytics firm OANDA. "Oil is becoming an easy trade, as it will track the dollar and not so much anything else," Moya said.

The strength of April U.S. economic data in addition to optimism about the debt ceiling negotiations have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday.

President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal to raise the federal government's USD31.4-T debt ceiling and avoid an economically catastrophic default. A debt agreement needs to be reached before the government runs out of money to pay its bills, which could be as soon as June 1.

Traders are pricing in around a 20% chance the Fed will raise rates at its June meeting, whereas a month ago, traders were pricing in around a 20% chance of a cut.

Meanwhile, European Central Bank (ECB) Vice President Luis de Guindos said the ECB will have to keep raising interest rates further to bring inflation back to its mid-term goal of 2% though most of the tightening has already been done. Also weighing on oil prices, blue-chip stocks in China, the world's biggest oil importer, slipped after the country's industrial output and retail sales growth undershot forecasts, suggesting the economic recovery is losing momentum.

On the supply side, Saudi Arabia's crude oil exports rose about 1% to 7.52 million barrels per day (bpd) in March from the previous month, according to data from the Joint Organisations Data Initiative (JODI).

Kpler and Petro Logistics, which also monitor shipments, however, have said Saudi exports may have fallen in May as a voluntary production cut pledged by the kingdom and other Organization of the Petroleum Exporting Countries (OPEC) plus their allies, a group known as OPEC+, takes hold.

We remnd, India's oil imports from Russia rose to a fresh record high in April, further reducing the share of Middle Eastern and African grades to their lowest level in at least 22 years. Refiners in India, the world's third-biggest oil importer and consumer, are on a Russian oil-buying binge after some countries shunned purchases from Moscow over its invasion of Ukraine in February last year.