Nigeria brings major Dangote refinery to life with own oil supply

Nigeria brings major Dangote refinery to life with own oil supply

MRC -- Nigeria's state oil firm NNPC Ltd will supply the new 650,000-bpd Dangote oil refinery with up to six cargoes of crude oil in December to be used in test runs, three industry sources with knowledge of the matter said, as per Hydrocarbonprocessing.

The refinery, funded by Africa's richest man, Aliko Dangote, will transform oil trading in the Atlantic Basin and remove a lucrative outlet for fuels produced in Europe and the United States that have for years powered the cars, trucks and generators on the continent.

The refinery is in the Lekki free trade zone near Lagos. Once it is fully up and running, it will turn oil powerhouse Nigeria into a net exporter of fuels, a long-sought goal for the OPEC member that is currently almost totally reliant on imports.

One of the sources, an NNPC official, who declined to be named, specified six cargoes, or 200,000 bpd, would be supplied in December as part of a one-year deal, adding that volumes in future months would be supplied "based on mutual agreement and availability".

The other sources said about 4-5 cargoes, or at least 130,000 bpd, were planned. A Dangote Group official, who did not wish to be named, said "some of the agreements have confidentiality clauses" without elaborating when asked about the NNPC supply deal.

The NNPC official said gasoline and diesel purchases from the refinery would be negotiated in separate contracts at a later date. NNPC has a 20% stake in the refinery. The refinery began the commissioning process in May this year after running years behind schedule at a cost of $19 billion, above initial estimates of $12-14 billion.

Commissioning includes testing the different units that make products from gasoline to diesel and making sure they respond to the control panels. Experts say it can take months for refineries to move from test runs to producing high-quality fuels at full capacity.

We remind, Seaborne diesel and gasoil exports from Russian ports fell 11% in October from a month earlier to about 2.55 MMt due to major maintenance work at refineries and a fuel export ban, data from traders and LSEG showed. Idle primary oil refining capacity for October stood at 4.915 million tons, down by around 1.9% from September, according to Reuters calculations.

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Trinseo reports smaller Q3 net loss

Trinseo reports smaller Q3 net loss

MRC -- S-based styrenics and engineered materials producer Trinseo lowered on Friday its guidance for the year as it reported a Q3 net loss that was smaller than the same time in 2022, said the company.

The company's shares rose slightly in afterhours trading. The following table shows the company's latest guidance for 2023 and compares with the previous one. Figures are in millions of dollars.

Trinseo expects demand will remain constrained through the rest of the year, and the company will continue to take steps to improve its cost position and cash generation, it said.

On the one hand, Trinseo said economics for its European styrene economics should improve in the fourth quarter. The outlook takes into account the effects of the shutdown of its styrene plant in Terneuzen.

Those improvements should be partially offset by lower styrene margins at its AmSty joint venture.

On the other hand, Q4 profitability for its Plastics Solutions segment should fall from the third quarter because of higher costs for raw materials and because of the strike by the United Auto Workers (UAW).

We remind, Trinseo, a specialty material solutions provider, today announced its decision to discontinue operations at its ethylbenzene styrene monomer (EBSM) manufacturing facility in Terneuzen, the Netherlands, said the company.
This decision was made following the completion of joint negotiations with the Works Council in Terneuzen. The plant is scheduled to officially cease operations in November 2023. With the closure of the EBSM facility, the company will purchase of all of its styrene needs from third party suppliers to support its downstream businesses.

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Russia's October seaborne diesel exports fall on ban, maintenance

Russia's October seaborne diesel exports fall on ban, maintenance

MRC -- Seaborne diesel and gasoil exports from Russian ports fell 11% in October from a month earlier to about 2.55 MMt due to major maintenance work at refineries and a fuel export ban, data from traders and LSEG showed, said Hydrocarbonprocessing.

Idle primary oil refining capacity for October stood at 4.915 million tons, down by around 1.9% from September, according to Reuters calculations.

Russia temporarily banned exports of gasoline and diesel from Sept. 21 to cope with a domestic shortage but lifted restrictions on bunker fuel and high sulfur gasoil.

The embargo was partially lifted on Oct. 9 with Russia resuming ULSD exports via Transneft pipelines provided that the manufacturer supplies at least 50% of the produced diesel fuel to the domestic market.

Total October diesel loadings from Russia's port of Primorsk, the main outlet for ULSD exports and completely dependent on pipeline shipments, rose by 10% month on month and by 40% from an initial plan to 977,000 tons, according to LSEG data and traders.

We remind, Last month about 680,000 tons of diesel and gasoil from Russian ports were heading to African countries including Libya, Togo, Morocco, Senegal and Ivory Coast, LSEG data showed. Another 270,000 tons of diesel from Russia in October was destined for ship-to-ship transfers near the Greek port of Kalamata with final destinations for these cargoes not yet known. All the shipping data above are based on the date of cargo departure.

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Shell Q3 EBITDA down by 24% on falling prices, volume

Shell Q3 EBITDA down by 24% on falling prices, volume

MRC -- Shell reported a 24% year-on-year drop on adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the third quarter as both prices and volumes decreased year on year, the company announced.

Its Q3 chemical sales volume surged to 2.998m tonnes, compared to 2.828m tonnes in Q2 2023 and 2.879m tonnes in Q3 2022. The nine-month chemical sales volume decreased 7% to 8.656m tonnes. Chemicals had negative adjusted earnings of $329m in Q3.

Chemicals manufacturing plant utilisation was 70% in Q3, in line with the second quarter 2023. Refinery utilisation was 84% in Q3, compared with 85% in the second quarter 2023.

Q3 results improved from Q2, with 23% up in adjusted earnings and a 13% rise in adjusted EBITDA, reflecting higher refining margins, higher realised oil prices, higher liquefied natural gas (LNG) trading and optimisation results, and higher upstream production.

Shell is commencing a $3.5bn buyback programme for the next three months, bringing the buybacks for the second half of 2023 to $6.5bn, well in excess of the $5bn announced at Capital Markets Day in June.

We remind, Shell plc subsidiary Shell Gas BV and partners in the Oman LNG LLC venture signed an amended shareholders’ agreement for Oman LNG LLC extending the business beyond 2024.Oman LNG in turn signed various agreements to secure its gas supply until 2034, Shell said in a release Oct. 23.

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Trinseo announces price decrease for polystyrene in Europe

Trinseo announces price decrease for polystyrene in Europe

MRC -- Trinseo, a specialty material solutions provider, and its affiliate companies in Europe, announced today a price decrease for all polystyrene (PS) grades. Effective November 1, 2023, or depending on existing contract terms, said the company.

The prices for the products listed below will decrease as follows:

STYRON™ and STYRON™ X-TECH general purpose polystyrene grades (GPPS) by -125 Euro per metric ton
STYRON™ and STYRON A-TECH™, STYRON C-TECH™ and STYRON X- TECH™ high impact polystyrene grades (HIPS) by -125 Euro per metric ton.

We remind, Trinseo, a specialty material solutions provider, today announced its decision to discontinue operations at its ethylbenzene styrene monomer (EBSM) manufacturing facility in Terneuzen, the Netherlands. This decision was made following the completion of joint negotiations with the Works Council in Terneuzen. The plant is scheduled to officially cease operations in November 2023. With the closure of the EBSM facility, the company will purchase of all of its styrene needs from third party suppliers to support its downstream businesses.

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