November export prices for European PE announced in a mixed way for the CIS countries

MOSCOW (MRC) - November contract price of ethylene in Europe was agreed up by EUR30/tonne from the level in October. However, not all European producers of polyethylene (PE) have increased prices, according to ICIS-MRC Price Report.

Negotiations on the European export prices of PE began last week, many market participants reported that in most cases the export polyethylene prices have been kept at the level of October. Only a few producers have announced a price increase of EUR20/tonne.

Deals for November shipments of high-density polyethylene (HDPE) were discussed in the range of EUR1,090 - 1,180/tonne FCA, which practically the same as in October. Negotiations for pipe black PE100 are kept in the range of EUR1,210- 1,250/tonne FCA, on average up by EUR20/tonne from the level in October.

Many market participants reported notable restrictions on HDPE supply from the producers from the Czech Republic and Hungary because of shutdowns.

Deals for November shipments of low density polyethylene (LDPE) were discussed in the range of EUR1,190 - 1,250/tonne FCA, which corresponds to the October level of prices.

Market participants also reported a limited supply of LDPE from the producers from Slovakia and Hungary also on the back of outages of the plants.
MRC

Braskem posts 45 pct drop in third-quarter profit

MOSCOW (MRC) -- Brazil's Braskem SA , Latin America's largest petrochemical producer, posted third-quarter net income of 818 million reais (USD253 million), down 45 percent from a year earlier, said Reuters.

Earnings before interest, taxes, depreciation and amortization from its Brazilian operations fell 17 percent to 2.206 billion reais.

Gross revenue fell 4% year on year over the same period to R14.25bn despite a new average capacity utilisation rates for its Brazilian crackers of 96% during the quarter, the company added.

As MRC informed earlier, Braskem has commissioned a new UTEC ultra-high-molecular-weight-polyethylene (UHMWPE) production plant at its La Porte, Texas site. The new UTEC plant is scheduled for startup by the end of 2016 and reflects another milestone investment in Braskem's North American growth strategy.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

KBR, SOCAR JV awarded second program management contract in Azerbaijan

MOSCOW (MRC) -- KBR, Inc.’s JV with SOCAR was awarded a second program management consultancy contract for the Azerikimya Production Union of the State Oil Company of Azerbaijan, said Hydrocarbonprocessing.

This award marks the second award to the JV, SOCAR-KBR LLC., since its inception in mid-2015. SOCAR-KBR LLC. was formed to help further Azerbaijan's ambition for creating a world-class Azerbaijan based engineering company. SOCAR-KBR LLC will build upon KBR's more than 20 years of project experience in Azerbaijan to perform program management services from its established offices in Baku for the Azerikimya modernization project.

Addressing the audience at the contract signing ceremony, Rovnag Abdullayev, SOCAR's President, said, "The modernization project will make it possible to increase the production facilities at Azerikimya, ensure the supply of raw materials to polyethylene and polypropylene production installations and to meet the demand in the country. It will also increase the country's export potential, enhance the security of the technological process and the quality of raw materials and finished products."

The value of the contract is undisclosed and will be booked into the backlog of unfilled orders for KBR's Engineering & Construction business segment in Q4 of 2016.

As MRC informed earlier, the AzeriKimya Production Union of the State Oil Company of Azerbaijan (SOCAR) has signed two contracts with Technip Italy Nov. 5, as part of the project for modernization and reconstruction of the ethylene-polyethylene plant in Sumgayit.

SOCAR Polymer is a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
MRC

Genoil signs USD50-B letter of intent to develop integrated oil project in Russia

MOSCOW (MRC) -- Genoil Inc., the publicly traded clean technology engineering company for the petroleum industry, has signed a USD50-B letter of intent (LOI) to develop oil fields and construct clean technology upgraders, refineries and pipelines in Russia, said Hydrocarbonprocessing.

The project will incorporate Genoil’s efficient clean technology hydroconversion (GHU) process, and mark the second time that Genoil will provided a complete integrated project, from the development of oil fields to the production of cleaner fuels. The scope of the project is to produce 3.5 MMbpd.

Genoil’s hydroconversion process improves upon the existing data-verified Fixed Bed Hydroconversion technology, which is widely used worldwide. Currently, 85% of all desulphurization is taking place worldwide via hydroconversion. Genoil’s investment into hydroconversion projects can significantly increase the desulphurization, demetalization and denitrogenization conversion rates, and increase operating efficiencies by 75%.

In addition to the development of the oilfields and construction of the technology, the parties involved will also explore linking this new project to existing pipeline networks in the region. The finance will be provided in full from Chinese banks to the Russian companies involved.

As agreed in the LOI, Genoil will be responsible for the design and construction of six MMtpy of new refinery capacity in Chechnya. To facilitate this, Genoil will organise a large consortium of Chinese engineering and services companies, with many years of operational experience, to provide all the necessary support and project guarantees. In addition to project guarantees, Genoil will arrange for a leading Chinese insurance company to insure the entire project.

The LOI has been signed by the President of the Board of Directors of Grozneft, a former official in the administrative department of the Russian Federation. The Russian Government and the Ministry of Fuel and Energy of the Russian Federation, as well as other required ministries and departments will give their full support to this project to ensure timely completion. The project will be listed in a trade agreement, pact or cooperation agreement between Russia and China.

As with the project in the Middle East defined in the USD5-B LOI signed in April 7, 2016, Genoil will be the master contractor in charge and in control of the project. Fuel produced from the projects will be exported to China through secured long-term contracts of up to 30 years.

Genoil is a provider of world leading hydroconversion fixed bed technology for upstream and downstream oil and gas industry. The company is also working with a top Chinese policy bank and Chinese companies to provide, project financing, drilling, production, and processing services to the oil and gas industry.
MRC

ExxonMobil forms JV with Sunoco Logistics to expand crude supply to its refineries

МОSCOW (MRC) -- Sunoco Logistics Partners has formed a strategic JV with ExxonMobil, Permian Express Partners LLC., to combine certain of their key crude oil logistics assets, said Reuters.

Sunoco Logistics will contribute its Permian Express 1, Permian Express 2 and Permian Longview and Louisiana Access pipelines. ExxonMobil will contribute its Longview to Louisiana and Pegasus pipelines, Hawkins gathering system, an idle pipeline in southern Oklahoma, and its Patoka, Illinois terminal. This JV establishes a stronger crude oil logistics network to meet market demand, provides additional take-away opportunities for shippers, and expands ExxonMobil’s options to supply its network of refineries.

Concurrent with the transaction, ExxonMobil and its affiliates will enter into a preferred provider agreement with the joint venture. Sunoco Logistics will be the majority owner and operator of the joint-venture’s assets.

"This combination of certain strategic crude oil assets, together with our existing and recently acquired Midland Basin assets, greatly enhances our service capabilities for the Permian Basin, one of the most prolific shale areas with incredible growth opportunities. We expect to achieve significantly greater longterm accretion as domestic crude oil production grows over time," said Michael J. Hennigan, President and Chief Executive Officer of Sunoco Logistics.

Upon closing, ownership in Permian Express Partners LLC. will be approximately 85% Sunoco Logistics and 15% ExxonMobil.

As MRC informed earlier, ExxonMobil is introducing low viscosity Vistamaxx performance polymers that can be used to maintain or improve cycle times of injection molded or extruded applications.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
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