Gunvor drops PetroSeraya fuel oil storage in Singapore, Sinopec to take over

Global energy trader Gunvor is exiting fuel oil storage at the PetroSeraya terminal in the Asian oil hub of Singapore, with a Sinopec unit set to take over the space, several market sources told Reuters.

The Geneva-based trader's exit comes after more than a decade of storing fuel oil at the terminal on Pulau Seraya, part of Singapore's Jurong island oil and chemicals hub. Onshore oil storage space in Singapore is limited and is often viewed as a strategic asset for companies and their trading activities.

Gunvor still holds fuel oil storage tanks at the Jurong Port Universal Terminal site although it was not immediately clear if the trading house would renew its lease there, which will likely expire by the end of the year, the sources said.

The company may instead charter tankers to store fuel oil, which provides more flexibility at lower costs, the sources added. A spokesperson for Gunvor Group declined to comment. PetroSeraya and Jurong Port Universal did not respond to requests for comment.

Sinopec Fuel Oil Singapore, a unit of Asia's largest refiner, state-run Sinopec, will gradually take over the fuel oil tanks Gunvor is vacating, which can hold about 600,000 cubic meters of fuel, the sources said. Sinopec Fuel Oil has been expanding its fuel oil cargo and bunker trading volumes this year after receiving a bunker license to sell ship fuel from Singapore's port authority last year.

Sinopec did not respond to a request for comment.Storage fees to lease onshore tanks in Singapore reached S$7 ($5.15) per cubic meter in November for new contracts, about $1 more than floating storage, according to the sources.

We remind, Sinopec said it has signed an equity agreement with Kazakh state-owned oil and gas firm KazMunayGaz for a 30% stake in a planned polyethylene project in Kazakhstan. The project has a design capacity of 1.25 million metric tons per year and is located in western Kazakhstan’s Atryau region, the statement said.

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Brazilian petrochemical producer Braskem said Abu Dhabi oil company ADNOC has presented a new non-binding offer to buy conglomerate Novonor's stake in the firm, said Reuters.

Novonor, formerly known as Odebrecht, is Braskem's main shareholder alongside state-run oil firm Petrobras (PETR4.SA), but has been long looking to sell its controlling stake as part of a broader restructuring.

According to Braskem, ADNOC's bid implies the price of 37.29 reais per share of the company, with an equity value of 10.5 billion reais ($2.14 billion) for Novonor's 38.3% stake in the petrochemical firm.

That represents a premium of more than 100% over Braskem's Wednesday closing price, and Sao Paulo-traded shares of the company soared as much as 23% following the news, making it the top gainer on Brazil's benchmark stock index Bovespa (.BVSP).

Braskem said ADNOC offered to pay in two parts: half in cash upon closing of the deal and the other half via an ADNOC senior equity instrument maturing in seven years with annual interest of 7.25%.

The petrochemical company cited a letter exchange with Novonor in its filing.

Petrobras in a separate statement said it had also been informed of ADNOC's bid but noted it would still analyze it, as any potential deal requires a new shareholder agreement with the state-controlled oil giant.

We remind, OMV is actively in negotiations with the state-owned Abu Dhabi National Oil Company about a possible merger of their chemicals business, the Austrian firm's chief executive said on Tuesday, after third-quarter results were released. The company would be listed on the stock exchange, added Chief Executive Alfred Stern.

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Unipar's net income fell by 3.5% year on year to Brazilian reais (R) 190.8m in the third quarter with earnings weighed by reduced spreads, high costs of energy raw materials and strong competition from imports, the Brazilian chemicals producer said.

Operating conditions in Brazil's chemical industry weakened in the third quarter amid waning domestic demand and a decline in production, the company said in a statement.

The country's chemical plant utilisation rate stood at 65% in the January-October period, six percentage points below the level recorded during the same period in 2022, with August recording the worst production results since 2007, it added.

We remind, Unipar has chosen German engineering firm thyssenkrupp nucera for the modernisation of its chlor-alkali plant at Cubatao in Sao Paulo, Brazil. Unipar last month gave the green light to the “Phase Out Project (PO25)”.

Unipar produces chlorine, caustic soda and derivatives such polyvinyl chloride (PVC), vinyl chloride monomer (VCM), ethylene dichloride (EDC) or hydrochloric acid, among others. Its main markets are Brazil and Argentina.

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Italian energy group Eni and energy services company Saipem have signed a deal to support the transformation of traditional refineries and the development of new Eni's bio-refineries, said Hydrocarbonprocessing.

The agreement will focus on the study for and subsequent potential construction of plants for the production of biojet, a sustainable aviation fuel, and of the biofuel HVO diesel, produced from 100% renewable raw materials.

Eni was the first company in the world to convert two traditional refineries into bio-refineries, it said in a statement.

It plans to expand its bio-refining capacity from the current 1.65 million tons per year to over 5 million tons per year by 2030.

We remind, Russia is considering lifting an export ban on some grades of gasoline. Shulginov said the lifting of export bans on Ai 92 and Ai 95 gasoline was under consideration. Russia introduced a ban on fuel exports on Sept. 21 to tackle high domestic prices and shortages. The government eased restrictions on Oct. 6, allowing the export of diesel by pipeline, but kept measures on gasoline exports in place.

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Aspen Technology, Inc., a global leader in industrial software, today announced a newly expanded relationship with OMV Group to help accelerate the international integrated oil and gas company's energy transition initiatives and its path to achieving net zero targets, as per Hydrocarbonprocessing.

The selection of AspenTech as its strategic innovation partner is the culmination of a long-term relationship dating back more than two decades and will enable OMV to achieve greater levels of integration between its solutions and business processes in the supply chain and production domains. The first stage joining digital initiatives will focus on renewables optimization, unlocking industrial data, and developing a simplified integration across the company's supply chain.

“OMV continues its forward-thinking approach to digitalization solutions to help optimize and improve the way it operates,” said Michael Sattler, Senior Vice President, Value Chain Optimization at OMV Group. “We aim to become a net zero business by 2050, to accelerate the energy transition, and to proactively expedite the transition from a linear to a circular economy. To do that we need to build positive and proactive relationships, maintain our agility, and be able to effectively respond to market volatility and demand. Working with AspenTech gives OMV the best chance to unlock its potential at a rapid pace.”

Antonio Pietri, President and CEO at Aspen Technology said, “This strategic relationship with OMV, built on many years of trust and thought leadership, demonstrates the importance of technology innovators working together to address the biggest challenges in ensuring a sustainable future. It further underscores the role advanced digital technologies can play in helping industry leaders like OMV meet their net zero targets.? Our mutual objectives for working together in close collaboration are to rapidly evaluate potential opportunities and new innovative solutions that mitigate carbon footprints while ensuring profitability.”

We remind, Russia is considering lifting an export ban on some grades of gasoline. Shulginov said the lifting of export bans on Ai 92 and Ai 95 gasoline was under consideration. Russia introduced a ban on fuel exports on Sept. 21 to tackle high domestic prices and shortages. The government eased restrictions on Oct. 6, allowing the export of diesel by pipeline, but kept measures on gasoline exports in place.

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