OMV examines decree on OMV assets in Russia

Austrian oil and gas company OMV on Wednesday said it is examining the impact of seizure of its shares in the Yuzhno-Russkoye gas field and reserves its rights, after Russian President Vladimir Putin ordered that its stake be transferred.

According to current information, the Russian President has signed a decree regarding the Yuzhno-Russkoye field. According to this decree, OMV's shareholdings and its interests in the gas field are to be transferred to new Russian companies. Those companies would be ultimately held by the insurance company JSC SOGAZ and Gazprom. The proceeds from the transfer of the OMV interest to JSC SOGAZ are to be paid into a special account.

OMV already decided in March 2022 that Russia is no longer a core region and that it will no longer make investments there. OMV has a 24.99% stake in the West Siberian Yuzhno Russkoye gas field, which was almost completely value adjusted in 2022. No further negative effects on the results are factually to be expected. With regard to this investment, a review was initiated at that point in time in which all options were examined, including the possibility of a sale and an exit.

In addition, the consolidation method for the Russian business was changed as of March 1, 2022. This stipulates that the operating results, cash flows and production volumes in Russia will no longer be included in the group report.

In 2022, OMV adjusted the value of its Russian business by a total of 2.46 billion euros. This value adjustment includes the 24.99% stake in Yuzhno Russkoje, as well as the receivables from Nord Stream 2 AG.

OMV is currently reviewing the presidential decree and may take further steps to preserve its rights.

We remind, Abu Dhabi National Oil Co is closing in on a deal with Austria's OMV to combine two entities in which the companies own stakes to create a chemicals giant, two people with knowledge of the talks said to Reuters. In July OMV said it had entered into talks to merge petrochemicals group Borealis - which is owned by OMV and ADNOC in a 75:25 split - and Borouge, which is 54:36 owned by ADNOC and Borealis.

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India is expected to remain on top in Asia for demand of petrochemical in 2024 given its strong economic growth and resilient industrial production, said Exportgenius.

However, the greater demand is unlikely ro bring much relief to domestic producers struggling with pressure on margins as prices of key chemicals in bulk are expected to remain suppressed due to ample supplies and new capacities coming on stream. According to a report, India’s market for chemical commodities is predicted to grow at around 7% in 2023 and 8% in 2024.

The robust demand of India’s chemical products is being driven by a sharp flow of economic activities after the country emerged from COVID-19 lockdowns. While India’s domestic chemicals demand is expected to stay strong in 2024, price expectations will not be very robust as the market struggles to find the right balance. This is due to new production capacities on stream in the country and in the rest of Asia, weak global demand, changing trade flows and volatile upstream prices.

India’s import of polyolefins – the largest chunk of its petrochemical import market surged significantly in 2023, crossed USD 200 million mark in first half of the year itself. This led by higher demand and increased imports from China, where downstream demand scenario stood weak. India’s imports of polyolefins from the world totalled USD 159 million in 2020, that increased to USD 360 million in 2022.

We remind, Bharat Petroleum Corp. Ltd. (BPCL) has approved a project to add petrochemical production capacity at its 7.8-million tonne/year (tpy) refinery at Bina, Madya Pradesh, India. At a meeting of the company’s board on May 15, BPCL approved an investment of 490 billion rupees (nearly $6 billion) for an ethylene cracker project at the Bina refinery that, alongside a cracker, would include the addition of other downstream petrochemical plants as well as an expansion of the refinery, the operator said in separate regulatory filings to BSE Ltd. and the National Stock Exchange of India Ltd.

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North American chemical rail traffic rose month on month and year on year, the Association of American Railroads (AAR) said on Wednesday.

For this week, total U.S. weekly rail traffic was 486,787 carloads and intermodal units, up 24.2 percent compared with the same week last year.

Total carloads for the week ending December 23 were 230,946 carloads, up 23.7 percent compared with the same week in 2022, while U.S. weekly intermodal volume was 255,841 containers and trailers, up 24.7 percent compared to 2022.

All of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included coal, up 16,458 carloads, to 66,730; motor vehicles and parts, up 4,936 carloads, to 16,287; and grain, up 4,475 carloads, to 21,237.

For the first 51 weeks of 2023, U.S. railroads reported cumulative volume of 11,519,813 carloads, up 0.6 percent from the same point last year; and 12,478,616 intermodal units, down 5.0 percent from last year. Total combined U.S. traffic for the first 51 weeks of 2023 was 23,998,429 carloads and intermodal units, a decrease of 2.4 percent compared to last year.

North American rail volume for the week ending December 23, 2023, on 12 reporting U.S., Canadian and Mexican railroads totaled 340,069 carloads, up 21.4 percent compared with the same week last year, and 337,542 intermodal units, up 25.3 percent compared with last year. Total combined weekly rail traffic in North America was 677,611 carloads and intermodal units, up 23.3 percent. North American rail volume for the first 51 weeks of 2023 was 33,580,237 carloads and intermodal units, down 2.2 percent compared with 2022.

Canadian railroads reported 93,678 carloads for the week, up 23.1 percent, and 70,358 intermodal units, up 33.5 percent compared with the same week in 2022. For the first 51 weeks of 2023, Canadian railroads reported cumulative rail traffic volume of 8,168,179 carloads, containers and trailers, down 2.5 percent.

We remind, North American chemical rail traffic rose for a sixth consecutive week, with railcar loadings for the week ended 16 December rising 8.8% year on year to 48,215. Increases in the US and Canada more than offset a decline in Mexico.

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Health authorities in California's Contra Costa County said on Tuesday they had launched an unannounced inspection at PBF Energy's 156,400 barrel per day refinery in Martinez, said Hydrocarbonprocessing.

The inspection was aimed at requesting records and observing its operation with a focus on safety programs, reliability of equipment, and to follow up regarding several recent accidents, Contra Costa Health said.

The refinery had released petroleum coke dust in October, after a similar incident in July. The Department of Justice is also investigating the refinery over a November 2022 release of a powdery substance later determined to be spent catalysts.

Due to the facility's history of chemical spills and other mishaps, PBF is required by the county's industrial safety ordinance to allow inspectors on site and grant them complete access to the site and all corporate records, it said.

"So far in 2023, there have been 21 documented releases or spills of hazardous materials at PBF," the Contra Costa release said, adding that PBF also reported flaring at a rate of nearly one per week throughout the year.

This regulatory inspection will include staff from the Bay Area Air Quality Management District, according to the release.

CCH staff will review records pertaining to deferred maintenance of equipment, programs and training relating to workplace safety, and policies and procedures related to emergency response and community notification.

The release also stated that the inspection will conduct a variety of field verification activities.

Contra Costa Health had issued an advisory earlier this month after a strong odor from the refinery, asking people with respiratory sensitivities to stay indoors with doors and windows closed if there is an odor in their area.

We remind, Nigeria's oil refinery in Port Harcourt will restart operations "after the Christmas break" following an overhaul, the petroleum minister said on Thursday, following several delays. Africa's top oil exporter has for years prioritized the production of its own fuels but efforts to overhaul refineries have often failed, leaving it almost entirely reliant on imports of refined crude.

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Mitsubishi Gas Chemical Company, Inc. announces today that it has acquired International Sustainability and Carbon Certification (ISCC) PLUS for Bio-methanol and dimethyl ether (DME) produced at its Niigata Plant, said the company.

MGC has signed a Basic Agreement with Niigata Prefecture on the Purchase and Sales of Biogas to ensure the effective utilization of unused biogas generated from its sewage treatment plants (septic center). With this certification, MGC can manufacture and sell Bio-methanol produced from this unused biogas as an ISCC PLUS certified product manufactured via the mass balance method.

MGC will use existing facilities at Niigata Factory to process bio-methane and bio-CO2, the main components of biogas, and will start producing Bio-methanol in the spring of 2024. Bio-methanol produced via this method will be used in a wide range of applications including as a chemical feedstock, fuel, and hydrogen carrier, all under the Carbopath™ brand developed as part of MGC's Circular Carbon Methanol (CCM) concept. This certification also facilitates the use of Bio-methanol as an ISCC PLUS certified feedstock in the production of methanol derivative products.

DME is produced by dehydrating methanol and has various uses including as an injection agent and foaming agent. When DME is used as a fuel, its physical properties are similar to those of liquid petroleum gas (LPG), so it is a promising environmentally friendly alternative to the fossil fuel, by using Bio-methanol as a feedstock.

Based on our mission of "Creating value to share with society," we will continue to realize the social implementation of Carbopath™, build a carbon-neutral society based on the reduction of greenhouse gases and the recycling of resources, and actively promote the realization of a decarbonized society and a recycling-oriented society.

Mitsubishi Chemical sells Indonesian PTA business to Lintas Citra Pratama, said the company.
Mitsubishi Chemical Group Corporation resolved at its Executive Officers' Meeting held that it will transfer shares of PT Mitsubishi Chemical Indonesia (President: Hideyuki Matsuda; location: Special Capital Region of Jakarta, Indonesia, hereinafter, “MCCI”), which operates the pure terephthalic acid (hereinafter, "PTA") business to PT Lintas Citra Pratama.

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