MEGlobal decreased July MEG ACP by USD50/tonne

MEGlobal has nominated its July 2023 monoethylene glycol (MEG) Asian Contract Price (ACP) at USD790/tonne, down by USD50/tonne from its June ACP, said the company.

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

We remind, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD840/MT CFR Asian main ports for arrival June 2023. The June 2023 ACP reflects the short-term supply/demand situation in the Asian market.
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Global monoethylene glycol (MEG) producer EQUATE has nominated its June 2023 MEG India Contract Price (ICP) at USD501/tonne CFR (cost & freight) India Main Ports, said the company.

The June nomination was USD7/tonne lower than the May number.

We remind, global monoethylene glycol (MEG) producer EQUATE has nominated its May 2023 MEG India Contract Price (ICP) at USD508/tonne CFR (cost & freight) India Main Ports. The May nomination was USD7/tonne lower than the April number.
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U.S. crude oil stockpiles posted a surprise large build last week, while gasoline and distillate inventories gained more than expected, as per Hydrocarbonprocessing.

Crude inventories rose by 7.9 million barrels in the week to June 9, the EIA said, compared with analysts' expectations in a Reuters poll for a draw of 510,000 barrels. "U.S. crude inventories have jumped higher, hitting the brakes on today's rally, while builds to the products are somewhat inevitable given strong refinery runs," said Matt Smith, lead oil analyst for the Americas at Kpler.

While refinery utilization rates dropped by 2.1 percentage points in the week, rates are still relatively elevated compared to recent months. Meanwhile, refinery crude runs fell by 61,000 barrels per day (bpd). Oil prices pared gains following the data and turned slightly negative after rising USD1 per barrel earlier in the session. Brent crude futures traded at USD74.26 and U.S. crude was at USD69.34 at 10:55 a.m. EDT.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 million barrels last week, the EIA said, to the highest since June 2021. Cushing stockpiles have gained for eight weeks in a row, the data showed. Gasoline stocks rose by 2.1 million barrels in the week, the EIA said, compared with analysts' expectations for a rise of 316,000 barrels.?

Distillate stockpiles, which include diesel and heating oil, rose by 2.1 million barrels in the week versus expectations for a rise of 1.2 million barrels, the EIA said. "The across-the-board inventory increases are decidedly bearish for the oil markets," said Andrew Lipow, president of Lipow Oil Associates in Houston. "It continues the trend we've seen in the refined products over the last month." Net U.S. crude imports dropped by about 810,000 bpd, the data showed.

We remind, India will soon overtake China as the largest driver of global oil demand, International Energy Agency (IEA) chief Fatih Birol said on Wednesday.The Paris-based energy agency said in its outlook report released on Wednesday that about three quarters of the 2022-28 demand growth increase will come from Asia, with India surpassing China as the main source of growth by 2027.

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India will soon overtake China as the largest driver of global oil demand, International Energy Agency (IEA) chief Fatih Birol said, as per Hydrocarbonprocessing.

"One of the reasons why we say this is that electrification of cars and buses in China is growing rapidly," Birol told reporters on the sidelines of a G20 event in New Delhi. "I very much hope India will move closer in terms of electrification."

The Paris-based energy agency said in its outlook report released on Wednesday that about three quarters of the 2022-28 demand growth increase will come from Asia, with India surpassing China as the main source of growth by 2027.

Birol also said that, since India has abundant renewable energy capacity, the country should not miss the opportunity to become a superpower in the green hydrogen business.

We remind, India's fuel consumption surged in May with diesel sales scaling a record high, buoyed by strong factory activity in the third-largest oil consumer in the world. India's factory output expanded at the quickest pace since October 2020 last month at a time when regional peers such as China, Japan and South Korea have seen their manufacturers struggle for prolonged periods.

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Axens has signed an agreement with KazMunayGas (KMG) to supply the process design package for its proprietary AlphaButol technology for producing high-purity 1-butene, which is required for producing PE, said Chemanager-online.

KMG has plans for a 1.2 million t/y PE plant in Atyrau, Kazakhstan. French technology and engineering group Axens has signed an agreement with KazMunayGas (KMG) to supply the process design package for its proprietary AlphaButol technology that produces high-purity 1-butene, which is required for producing PE. KMG plans to build a 1.2 million t/y PE plant in the Atyrau region of Kazakhstan – a timescale for the project has not been disclosed.

The companies have worked together before, specifically on the Atyrau Oil refinery in 2018 where Axens licensed technology as part of a modernization program that increased production of petrochemicals, gasoline, diesel and jet fuels.

In separate news, Axens also announced that it has signed an exclusive licensing alliance with ExxonMobil Catalysts and Licensing that will allow it to offer the latter’s MTBE decomposition technology for high-purity isobutylene.


The technology is used in the production of high-reactivity polyisobutylene and butyl rubber and will, said Axens, enable its customers to better address the growing demand for petrochemical intermediates over the next decade.

“ExxonMobil MTBE decomposition technology is a commercially proven, cost-effective, continuous fixed bed process that catalytically cracks MTBE into isobutylene and methanol. Adding this technology to Axens’ portfolio completes Axens’ offer and strengthens our long-term partnership with ExxonMobil Catalysts and Licensing,” said Luc Wolff, Axens vice president petrochemical product line.

Under the agreement, Axens gains the worldwide right to market, license and provide engineering work and technical support for the design, construction and start-up of new MTBE decomposition units. The alliance builds on collective expertise to provide customers with isobutylene purity of at least 99.99 wt% via an integrated unit with MTBE and MTBE decomposition technologies, or through a standalone unit using MTBE decomposition technology.

We remind, Sinopec and Kazakh state-owned oil and gas company KazMunayGaz have agreed key terms for a potential investment in a polyethylene plant in Kazakhstan's western Atyrau region. A final decision on the proposed investment will be made in 2024, the statement said. The agreement was signed on the sidelines of the ongoing China-Central Asia Summit in Xian in China's Shaanxi province, where China's president Xi Jinping is meeting with the leaders of five ex-Soviet countries to discuss enhanced cooperation in a range of fields, including energy.

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