Lukoil, ExxonMobil 'bid on Ukraine blocks'

(upstreamonline) -- Lukoil and an ExxonMobil-led group including Shell, Petrom and Nadra Ukrainy have reportedly bid for offshore acreage in Ukraine’s Skifska field in the Black Sea.
Ecology and Natural Resources Minister Eduard Stavitsky told journalists in Kiev of the bids, according to Reuters.

No bids were received for a second field at Foroska, which has now been pulled, Ukrainian officials said.

Ukraine, which wants to increase its energy independence from Russia, invited bids last June for potential partners for the two fields.

The Skifska field purportedly has a potential yield of 3 billion to 4 billion cubic metres.

As part of its energy strategy, in May Ukraine picked Shell and Chevron as partners in projects to explore and develop two potentially large shale gas fields at Yuzivska and Olesska respectively.

Ukraine imports about two-thirds of its gas from Russia at a price that has been rising steadily for the last few years.
MRC

CNPC to resume Hohhot refinery operations after year-long shutdown

(hydrocarbonprocessing) -- China National Petroleum Corp. (CNPC) is preparing to resume production at its Hohhot refinery in the northern autonomous region of Inner Mongolia, the country's largest energy producer said this week in an in-house newsletter.

The Hohhot refinery has completed upgrades that will more than triple its crude-oil processing capacity to 5 million tpy, or about 100,000 bpd, up from 1.5 million tons previously.

The refinery has been shut since August 2011 to make way for a new crude distillation unit, fluid catalytic cracking unit and polypropylene unit, it said.

The refinery will now be able to produce 1.7 million tons of gasoline, 2.1 million tons of diesel, 200,000 tons of jet fuel and 150,000 tons of polypropylene, along with other petrochemical products.

MRC

PP production registered negative trend again in Japan

(chemmonitor) -- According to the production information recently disclosed by Japan Petrochemical Association, polypropylene (PP) output volumes dropped once again in the current year.

Japanese PP manufacturers considerably reduced production in June by cutting manufacturing rates at their mills.

As a result, the monthly output lowered by 43,000 or 20.6 percent from May.

MRC

A major decline in polymers imports from Asia is expected in August

MOSCOW (MRC) – Due to the APEC summit Russian Railways has temporarily restricted goods train movement from the eastern part of Russia to Siberia and beyond. The restriction of railway traffic will affect polymers supply from Asia, report MRC analysts.

Due to the congestion of infrastructure, Russian Railways restricted goods train movement from the eastern part of Russia to Siberia and beyond during the summit and its preparation period. At present traders that receive goods from Asia have to apply for shipments by rail 10 days prior to the following month. Freight traffic is also severely restricted.

Such serious freight restrictions might significantly affect the Russian market of large polymers since the share of imports of some polymers through the eastern marine border is quite substantial.

Approximately 15% of the total PE import volumes are shipped through Vostochny port and the port of Vladivostok. They are mostly pipe PE100 and injection moulding PE from Asia. However, film HDPE shipments through the eastern region have considerably grown recently.

In polypropylene supply this index makes about 10% and largely accounts for South Korean PP-homo and random copolymer. In PVC supply, a share of imports from Asia through Eastern Russia is rather low. Basic import flows of resin from Asia come through Kazakhstan (Chinese acetylene PVC).

PS and styrenic plastics import volumes through the eastern border make about 36%, basically it is EPS. The largest share of import volumes through eastern Russian borders is for PET. The index of PET reaches 67%.

The business APEC summit will take place in Vladivostok on September, 7-8, 2012. The Heads of states and governments of APEC Forum will take part in Vladivostok summit 2012.
MRC

European makers to increase PE prices by EUR140-210/tonne

MOSCOW (MRC) - European makers aim to increase export prices of polyethylene (PE) by EUR140-210/tonne for August. Some market participants doubt that they will be able to achieve the wishful result, according to MRC analysts.

On rising oil quotations ethylene contract price in Europe for August was increased by EUR140/tonne, from July. However, despite this, many European makers have to raise the export prices of polyethylene for August by EUR140 - 210/tonne, while export quotas are still limited.

The June drop in prices of oil and low demand for polyethylene in Europe in the first half of the year have forced local producers to decline prices seriously. The contract price of ethylene in July was reduced by EUR170/tonne, from the June level. European makers, in turn, were forced to drop prices of polyethylene EUR70-170/tonne. Export offers for July shipment of European HDPE fell on average to EUR1,000-1,080/tonne, FCA. Some deals in the supply of LDPE reached the level of EUR900 - 940/tonne, FCA.

A serious fall in the price of polyethylene has intensified the demand in July. Local converters, and companies from foreign markets have been actively buying European material. As a result, by mid-July, many European makers sold the August volumes, and were forced to suspend further deals.

European makers aim a more serious rise in prices for August on the back of a significant increase in the price of ethylene and July sales. Export prices of polyethylene for the CIS markets are increased on average by EUR140-210/tonne, from July, depending on the grade of polyethylene. Price quotations of HDPE were at EUR1,200-1,280/tonne, FCA.

However, some market participants doubt that European makers will be able to achieve such a serious rise in prices. This significant increase in the price dictated by the desire to offset the price decline in July, and, very importantly, not supported by the real growth in demand for polyethylene.
MRC