Borouge launches new infrastructure and advanced packaging solutions

Borouge Plc launched five new grades to meet the growing demand in the infrastructure and advanced packaging industries in the Middle East, Africa and Asia, said Hydrocarbonrocessing.

The launch supports Borouge’s growth and innovation strategy by increasing its market share in the piping market in the company’s core territories, valued at nearly USD1 billion. Catering to the needs of consumers, Borouge unveiled its first-ever Bulk Continuous Filament (BCF) product, designed for fiber and carpet applications, to target a market worth USD100 million in the Middle East and North Africa region and providing strong opportunity for Borouge to grow its market share.

Commenting on the launch, Khalfan Mohamed AlMuhairi, Senior Vice President, Region Middle East, Africa and Exports, Borouge, said: “Demand for Borouge’s premium and differentiated polyolefin solutions in the Middle East, Africa, and Asia Pacific continues to grow. We plan to capitalize on trends driving the demand such as increased urbanization resulting from population growth in our core markets. Our latest solutions have been designed to not only meet the needs of modern communities, but also contribute to more sustainable production processes for our customers - increasing the energy efficiency of the manufacturing process and reducing its carbon footprint. Borouge is committed to commercial excellence driven by innovation, and we look forward to continuing to pursue new areas of growth.”

Produced using advanced Borealis Borstar® nucleation technology, the RA150E grade is the latest infrastructure solution designed for water piping applications delivering hot and cold water to homes around the world. The new solution has unmatched, long-term pressure performance, even at very high temperatures, and is fully-recyclable at the end of its 50-year life span.

Borouge’s latest infrastructure solution addresses emerging trends in the construction of modern communities, which prioritize environmental sustainability, with many developments aiming to achieve urban resilience - the measure of the adaptability of a community against environmental stresses, while positively adapting and transforming towards sustainability.

Launched as part of Borouge’s sustainable advanced packaging portfolio, the new polyethylene (PE) and polypropylene (PP) grades feature good mechanical properties and processability, designed with recyclability in mind.

We remind, Borouge Plc, a leading petrochemical company that provides innovative and differentiated polyolefin solutions, announced that it has signed a Memorandum of Understanding with National Petroleum Construction Company, a UAE-based Engineering, Procurement and Construction Company.

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Turkish petrochemicals company Bayegan Group is set to enhance domestic polypropylene production with a planned $1.9-B plant in Hatay province. The facility, expected to produce 450,000 tpy, aims to meet about 20% of Turkey's demand for polypropylene, a key material in the country's carpet industry, said Hydrocarbonprocessing.

Bayegan's investment aligns with its strategy to expand across the value chain. The plant is projected to save Turkey approximately $500 MM annually, making it less dependent on imports and reducing costs.

The Turkish government is supporting the project with tax breaks and reduced power and labor costs, as part of efforts to boost core industries amid economic challenges, including a 65% inflation rate. The proposed site near Gaziantep, known for its carpet-making heritage, positions the project strategically.

Bayegan is exploring potential partnerships for the venture and continues discussions with export credit agencies. Construction is expected to take 34 months once the engineering, procurement, and construction (EPC) contract is signed. The initiative reflects a broader trend, with another group also developing a $1.7-B polypropylene plant nearby in Ceyhan. Turkey, a significant importer of polypropylene, seeks to strengthen its domestic production capabilities in collaboration with local and international investors.

We remind, Borouge Plc launched five new grades to meet the growing demand in the infrastructure and advanced packaging industries in the Middle East, Africa and Asia. The launch supports Borouge’s growth and innovation strategy by increasing its market share in the piping market in the company’s core territories, valued at nearly USD1 billion.

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MEGlobal has nominated its February 2024 monoethylene glycol (MEG) Asian Contract Price (ACP) at $850/tonne, USD10/tonne higher than its January ACP, said the company.

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

We remind, MEGlobal has nominated its January 2024 monoethylene glycol (MEG) Asian Contract Price (ACP) at $840/tonne, stable from its December ACP, a company source said. The price is on a CFR (cost & freight) Asia basis.
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Shell is set to conclude nearly a century of operations in Nigerian onshore oil and gas after agreeing to sell its subsidiary there to a consortium of five mostly local companies for up to $2.4 bn, said Hydrocarbonprocessing.

The British energy giant pioneered Nigeria's oil and gas business beginning in the 1930s. It has struggled for years with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits.

Since 2021, Shell has sought to sell its Nigerian oil and gas business but will remain active in Nigeria's more lucrative and less problematic offshore sector. Shell's exit is part of a broader retreat by western energy companies from Nigeria as they focus on newer, more profitable operations. Exxon Mobil, Italy's Eni and Norway's Equinor have struck deals to sell assets in the country in recent years.

The British major will sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, it said in a statement, while the buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.

"This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions," Shell head of upstream Zoe Yujnovich said.

The buyer, the Renaissance consortium comprises ND Western, Aradel Energy, First E&P, Waltersmith, all local oil exploration and production companies, and Petrolin, a Swiss-based trading and investment company.

The sale, which Renaissance confirmed, requires the approval of the Nigerian government.

Shell's SPDC Limited operates and has a 30% stake in the SPDC joint venture that holds 18 onshore and shallow water mining leases. Shell's resources in SPDC reached around 458 million barrels of oil equivalent by the end of 2022. Other partners in the joint venture are the state's Nigerian National Petroleum Corporation (NNPC), which holds 55%, TotalEnergies, with 10% and Italy's Eni with 5%.

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Chinese refiners are actively booking crude oil cargoes for delivery in March and April to replenish stocks, locking-in relatively low prices and in anticipation of stronger demand in the second half of 2024, trade sources said, as per Hydrocarbonprocessing.

Global benchmark Brent futures have stayed under $80 a barrel since December despite rising tensions in the Middle East, making oil attractive, while Beijing has issued fresh quotas for crude imports and fuel exports to refiners, allowing them to boost purchases and operations.

Robust demand from the world's top crude importer is underpinning spot premiums for Middle East crude exports even as Asian refiners plan seasonal maintenance for the second quarter that typically reduces the region's oil demand.

"There will be a stock-building spree over the Q1-Q2, in preparation for the summer," said Kpler analyst Viktor Katona, repeating a trend seen by Chinese refiners in 2023. "This has worked wonders for them last year and this year it seems to have an even better delineation between a weaker H1 and a stronger H2."

China bought record volumes last year to build its biggest ever oil stockpile of more than 1 billion barrels. Refiners started drawing down stocks from late July, helping China to sail through a price rally powered by voluntary output cuts by OPEC kingpin Saudi Arabia last year.

China's crude stocks fell to 933-951 million barrels last week, data compiled by analytic firms Vortexa and Kpler showed, after refiners ramped up crude processing in the fourth quarter.

We remind, Borouge Plc launched five new grades to meet the growing demand in the infrastructure and advanced packaging industries in the Middle East, Africa and Asia. The launch supports Borouge’s growth and innovation strategy by increasing its market share in the piping market in the company’s core territories, valued at nearly $1 billion.

mrchub.com