Crude exports from Iran set to fall in May to 14-mos low

MOSCOW (MRC) -- Iran's crude oil exports are set to hit a 14-mos low in May, suggesting that the country is struggling to raise exports after clearing out stocks stored on tankers, reported Reuters.

Part of the drop may also be attributable to a decline in demand, as loadings bound for India are set to slump to a 1-yr low after a dispute over the award of a contract for a gas field, and Japan's orders fall by more than half from April.

Iran is also putting approximately 3 MMbbl back into storage in May, underlining how much oil remains available in the market despite an agreement between the OPEC and non-OPEC producers to cut output and boost prices.

Crude oil loadings from Iran are expected to total nearly 1.7 MMbpd in May, with almost 100 Mbpd being put into storage on tankers, according to sources.

In April, the country is expected to export 1.8 MMbpd of crude, and more than 370 Mbpd of condensate, down sharply from a 6-yr high of nearly 2.9 MMbpd in February for both forms of oil. In March, Iran loaded some 2.6 MMbpd of both crude and condensate, mostly the former. It is reported that no barrels of either crude or condensate were put into storage in March and April.

The final figures for February exports were significantly higher than preliminary numbers reported earlier by Reuters, and show that Iran took full advantage of its exemption from the production cuts by OPEC and non-OPEC producers, including Russia.

Still, Indian buyers are cutting purchases after state-owned refiners agreed to cut their annual imports deal with Iran by one-fifth to put pressure on Tehran to award the Farzad B gas field to an Indian consortium.

Crude liftings for India in May are expected to reach approximately 370 Mbpd. In April, Indian customers are lifting nearly 470 Mbpd of both crude and condensate. Japan is scheduled to lift nearly 40 Mbpd in May, the lowest since March.

Loadings of crude and condensate for China this month will hit a 4-mos low of a little more than 500 Mbpd.

We remind that, as MRC wrote before, after eight months of a break, shipments of Iranian polycarbonate (PC) were resumed to the Russian market, an Iranian trader told MRC. He said he intends to focus on PC sales to Turkey and Russia in the coming months.
MRC

Metso to supply emergency shutdown valves at Orpic petchem complex in Oman

MOSCOW (MRC) -- Metso will supply 400 Neles emergency shutdown (ESD) valves for an ethylene cracker as part of the new Liwa Plastics Industrial Complex (LPIC) Project in Sohar, Oman, said Hydrocarbonprocessing.

The new complex will process light ends produced in Orpic's (Oman Oil Refineries and Petroleum Industries Company) Sohar Refinery and its Aromatics plant as well as optimize Natural Gas Liquids (NGLs) extracted from currently available natural gas supplies.

"We are pleased that Orpic trusted Metso's knowledge in demanding valve solutions for their new petrochemical complex. Metso's ESD valves are widely used in refineries, petrochemical sites and LNG plants around the world. Top-level safety and field-proven reliability are the strengths of Metso's valve solutions," said Heikki Voutilainen, Global Project Sales Manager, Flow Control, Metso.

The delivery includes Neles ESD valves ranging in size from 6 in.–40 in. The valves are equipped with Neles ValvGuardTM intelligent safety solenoid valves, which can monitor valve condition, perform on-line testing and automatic reporting and enable need-based maintenance. Furthermore, the contract also includes optional customer site training and maintenance services for the new plant.

The order is included in the first-quarter 2017 orders received by Metso. The value of the order will not be disclosed. Metso's valves will be delivered in the beginning of 2018.

Earlier, Metso had been selected to supply ESD and control valves to Orpic's Sohar Refinery Improvement Project (SRIP) in Oman in 2015.
MRC

ChemChina obtains all regulatory approvals to acquire Syngenta

MOSCOW (MRC) -- ChemChina has reconfirmed that all regulatory approvals and conditions required for the closing of its offers to acquire Syngenta have been obtained or satisfied, said Reuters.

In response to speculation in the market, ChemChina today reconfirmed on behalf of the Offeror that all regulatory approvals and conditions required for the closing of the offers have been obtained or satisfied. Subject to at least 67% of Syngenta’s issued shares and ADSs being validly tendered into the offers and not withdrawn as of May 4, 2017, the Offeror will purchase and pay for all such shares and ADSs at the first settlement on May 18, 2017.

As MRC informed earlier,C hina National Chemical (ChemChina) has signed a memorandum of understanding (MoU) with Rosneft to acquire a majority stake in Far-East Petrochemical Company (FEPCO) project in Nakhodka, Russia.

Syngenta is a leading agriculture company helping to improve global food security by enabling millions of farmers to make better use of available resources. Through world class science and innovative crop solutions, our 28,000 people in over 90 countries are working to transform how crops are grown. We are committed to rescuing land from degradation, enhancing biodiversity and revitalizing rural communities.

ChemChina produces special chemical materials, basic chemicals, oil refining, agricultural chemistry, rubber products, and chemical equipment.
MRC

Thai PTT to begin commercial production at new metallocene LLDPE plant Q1 2018

MOSCOW (MRC) -- PTT is on track to start commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018, a company source said Tuesday, as per Apic-online.

PTT will start up the plant by the end of this year, the source said.

"We currently switch the normal C4 LLDPE units to metallocene-based C6 LLDPE production, and are facing a few quality issues, hence our decision to build a dedicated metallocene plant," the source explained.

PTT currently has a total capacity of 800,000 mt/year of high density polyethylene (HDPE), 300,000 mt/year of low density polyethylene and 400,000 mt/year of LLDPE at the same site.

As MRC wrote before, PTTGC restarted LLDPE plant on 3 April, 2016, following a maintenance turnaround. The plant was shut for maintenance in early-March 2016. Located at Map Ta Phut in Thailand, the LLDPE plant has a production capacity of 400,000 mt/year.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

Nord Stream 2 AG and European energy companies sign financing agreements

MOSCOW (MRC) -- The Nord Stream 2 project, being pursued by Gazprom, has taken another important step towards its implementation, responding to the need of the European Union for additional gas imports and thereby improving security of supplies to Europe, reported BASF on its site.

Nord Stream 2 AG signed financing agreements for the Nord Stream 2 pipeline project with ENGIE, OMV, Shell, Uniper and Wintershall.

These five European energy companies have committed to provide long-term financing for 50 % of the total cost of the project, which is currently estimated to be EUR9.5 billion. Each European company will fund up to EUR950 million. Gazprom is and will remain the sole shareholder of the project company, Nord Stream 2 AG.

The financial commitment by the European companies underscores the Nord Stream 2 project’s strategic importance for the European gas market, contributing to competitiveness as well as medium and long-term energy security especially against the background of expected declining European production.

The 1,220-kilometer Nord Stream 2 gas pipeline, with a total capacity of 55 billion cubic meters a year, will provide a direct link between reliable Russian gas reserves and European gas consumers from the coast of Russia via the Baltic Sea to Greifswald, Germany. Construction work will begin in 2018 and will be completed by the end of 2019.

Nord Stream 2 is a planned pipeline through the Baltic Sea, which will transport natural gas over 1,200 km from the world’s largest gas reserves in Russia via the most efficient route to consumers in Europe. Nord Stream 2 will largely follow the route and design of the successful Nord Stream pipeline. With Europe’s domestic gas production projected to halve in the next 20 years, Nord Stream 2’s twin pipeline system will help Europe to meet its future gas import needs, with the capacity to transport 55 billion cubic metres of gas per year, enough to supply 26 million European households. This secure supply of natural gas with its low CO2 emissions will also contribute to Europe’s objective to have a more climate-friendly energy mix with gas substituting for coal in power generation and providing back-up for intermittent renewable sources of energy such as wind and solar power.

As MRC informed before, BASF and Gazprom completed the swap of assets with equivalent value effective at the end of September 30, 2015, financially retroactive to April 1, 2013. With the swap, BASF is further expanding its production of oil and gas and has exited the gas trading and storage business.
MRC