PetroChina to close last unit of biggest north China refinery end-June

PetroChina is set to close the last remaining crude unit at its biggest north China refinery at the end of this month, broadly in line with an earlier plan that marks the country's first full closure of a state-run plant, four industry sources said, as per Hydrocarbonprocessing.

PetroChina will switch off the 200,000-bpd No.1 crude unit at Dalian Petrochemical Corp. on June 30, and the secondary processing units in the following month, said the sources familiar with the shutdown plan.

It was reported last October that PetroChina intended to close the whole 410,000-bpd Dalian plant by mid-2025, part of the state oil major's long-mooted project to relocate and replace it with a smaller facility at a new site.

PetroChina will meanwhile start drawing down inventory of crude oil and other feedstocks this month and clean up all the products' inventory by the end of August, said two of the sources.

For the proposed new refinery complex to be built in Changxing island, about two hours' drive from downtown Dalian, PetroChina has yet to make a final investment decision, sources said.

PetroChina began the shutdown process at the Dalian plant in late 2023.

The refinery, which accounts for nearly 3% of China's national refining capacity, processes mainly Russian ESPO blend crude from Siberian fields.

mrchub.com

Surgutneftegas reported a net loss of 439.7 billion rubles in Q1 2025 compared to a profit of 268.5 billion rubles in the same period last year, according to the company's financial statements to Russian Accounting Standards (RAS), as per Interfax.

Quarterly revenue figures were not disclosed, along with most other line items in the financial results section.

The company also released its 2024 annual accounting statements. Net profit for the past year decreased 30.8% to 923.3 billion rubles.

mrchub.com

PJSC Gazprom filed a lawsuit with the Arbitration Court of St. Petersburg and the Leningrad Region against National Joint Stock Company Naftogaz Ukraine on June 5, as per Interfax.

The information was published in the arbitration case registry. The claim amount and other details have not yet been disclosed.

This marks Gazprom's second lawsuit against Naftogaz under Russian jurisdiction. The first legal proceeding concerns a court injunction prohibiting dispute resolution in foreign arbitration regarding allegedly underpaid gas transportation services by Naftogaz.

On January 12, 2024, the Arbitration Court of St. Petersburg and the Leningrad Region ruled in Gazprom's favor, stipulating that Naftogaz would face a $1.305 billion penalty for violating the court decision.

The dispute concerns the 2019 gas transit contract between the companies, which stipulates the arrangement and amounts of gas changing hands at two transfer points on the Russian-Ukrainian border, Sudzha and Sokhranovka. In May 2022, Naftogaz refused to fulfil its obligations at the Sokhranovka point and demanded that all gas be transferred only through Sudzha.

Gazprom refused to meet this demand and stopped paying for gas transport services through Sokhranovka. Naftogaz maintains that gas should have been redirected through Sudzha, and the fact that services were not being provided through Sokhranovka does not free Gazprom of the obligation to pay for them. Naftogaz therefore filed a claim of $150 million against Gazprom at the International Court of Arbitration of the International Chamber of Commerce in Paris. The case is being heard in Switzerland.

mrchub.com

North American weekly chemical rail volume continues to trend down seasonally while maintaining year-over-year gains on strength throughout the region, according to new data from the Association of American Railroads (AAR), as per Chemweek.

During the week ended May 31, chemical railcar volume in North America totaled 48,600 carloads, up 0.8% from the previous week and up 9.4% year over year. The four-week moving average (4wma) came to 48,045 carloads, down 0.8% sequentially, up 2.4% year over year and up 7.8% from the seasonal trendline, as represented by the average for 2015–2024.

In the US, 4wma chemical railcar volume came to 32,728 carloads, down 1.5% sequentially, up 1.2% year over year and up 4.1% from the region’s seasonal trendline (right chart). In Canada, 4wma chemical railcar volume came to 14,295 carloads, up 0.6% sequentially, up 5.8% year over year and up 14.3% from the trendline. In Mexico, 4wma chemical railcar volume came to 1,022 carloads, up 4.6% sequentially, down 1.8% year over year and down 2.6% from the trendline.

For the year to date, chemical railcar volume in North America is up 1.1%, while total railcar volume is up 0.8%. US chemical railcar volume is up 2.0% on the same basis, while Canadian chemical railcar volume is flat and Mexican chemical railcar volume is down 17.0%.

mrchub.com

Alpek, S.A.B. de C.V. has announced the strategic decision to cease operations at its Cedar Creek facility in Fayetteville, North Carolina (U.S.) by July 31, 2025, as per Hydrocarbonprocessing.

The site, acquired by Alpek in 2001, has an installed capacity of 170,000 t of PET resin and approximately 35,000 t of rPET flake production.

This decision is aligned with Alpek’s long-term strategy to optimize its global footprint and focus on its more competitive and scalable assets. The company will reallocate its production to continue serving its customers with high-quality products and sustainable solutions by leveraging its regional and global network.

Through this optimization, which is part of Alpek’s Cost Reduction Strategic Initiatives, the company will be able to generate approximately $20 MM in annualized savings on a run-rate basis, effective by 2026. This reinforces Alpek’s long-term vision to solidify its core business and strengthen its financial position.

mrchub.com