LDPE production in Russia increased by 9% in January-April 2017

MOSCOW (MRC) - Production of low density polyethylene (LDPE) in Russia increased to about 221,800 tonne in the first four months of 2017, up 9% year on year. Gazprom neftekhim Salavat and Nizhnekamskneftekhim showed a decrease in production, according to MRC ScanPlast report.

April LDPE production in Russia was 45,100 tonnes, while in March it was about 59,600 tonnes. The reduction in output was a result of the long-term shutdown of Kazanorgsintez for scheduled maintenance in April-May. Overall LDPE output reached 221,800 tonnes in the first four months of 2017, compared to 203,300 tonnes a year earlier but not all producers had demonstrated a positive output dynamics.

Structure of LDPE production over the reported period looked as follows.

Tomskneftekhim produced about 23,200 tonnes of LDPE in April, while in March it was produced about 24,700 tonnes. The plant's LDPE output reached 88,400 tonnes in the first four months of 2017, up by 3% year on year.

April LDPE production at Kazanorgsintez decreased to 6,600 tonnes from 19,200 tonnes a month earlier on the back of scheduled shutdown.
The producer's total LDPE production was 66,400 tonnes in the first four months of the year, up 4% year on year.

Ufaorgsintez increased LDPE production to 8,300 tonnes in April, compared with 7,900 tonnes in March. Producer's production of LDPE totalled 32,900 tonnes in January - April of this year, down 2% year on year.

April LDPE production at Angar ZP decreased to 3,600 tonnes from 4,500 tonnes a month earlier. Angar ZP's LDPE production reached 20,700 tonnes in the first four months of the year, compared with 6,400 tonnes year on year. The low level the production in 2016 was a result of the long forced shutdown of capacities in February-July due to a breakdown in the ethylene production.

Gazprom neftekhim Salavat last month increased capacity utilisation, total LDPE reached 3,500 tonnes against 3,500 tonnes in March. Overall LDPE production at Gazprom neftekhim Salavat exceeded 13,400 tonnes over the stated period, down by 3% year on year.


MRC

MOSCOW (MRC) -- Oil giant Saudi Aramco is interested in a stake in India’s proposed 1.8 trillion rupee (USD27.87 bln) refinery in Maharashtra State, Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said, reported Plastemart.

The official said both Aramco and Abu Dhabi National Oil Co. (ADNOC) were in talks with New Delhi over investments in India’s energy sector. State-run Indian Oil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) plan to build the 60 million tpa (1.2 million bpd) refinery to meet rising domestic fuel demand. Indian Oil owns 50% of the project, while BPCL and HPCL have 25% each. The project is likely to be funded through 60% debt and 40% equity.

Aramco is interested in the West coast refinery, while ADNOC is interested in petrochemical projects, Pradhan said, without divulging the size of the stake the Saudi NOC might pick up. The mega complex will produce gasoline, diesel, LPG, jet fuel and petrochemical feedstock. It will be the South Asia country’s largest refinery when completed.

The first phase will set up 40 million tpa (800,000 bpd) of capacity with an aromatic complex, naphtha cracker and a polymer complex, and will carry a price tag of INR 1.2-1.5 trillion (USD18.58-23.22 bln). Once the land has been acquired the initial phase is expected to take five to six years to complete. The second phase, involving a 20 million tpa (400,000 bpd) refinery, will cost INR 500-600 bln (USD7.74-9.29 bln).

As MRC infromed before, in late June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. (Sabic) became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia, they said in a statement. A joint venture is possible if the companies decide to move ahead after the study is completed by early 2017, they said. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

According to the National Statistics Committee of Belarus, March PE imports to Belarus virtually remained at the level of February and were 11,500 tonnes. Local companies offset lower shipments of linear low density polyethylene (LLDPE) by higher purchasing of high density polyethylene (HDPE) in Russia. Overall PE imports reached 31,500 tonnes in January-March 2017, compared to 24,400 tonnes a year earlier. Imports of all PE grades rose, with low density polyethylene (LDPE) accounting for the greatest increase.

The structure of PE imports to Belarus by grades looked the following way over the stated period.

March total LDPE imports decreased to 3,400 tonnes from 3,600 tonnes a month earlier. Local companies reduced their PE purchasing in Russia. Overall imports of this PE grade into Belarus totalled 8,500 tonnes in the first three months of 2017, compared to 4,100 tonnes a year earlier. An accident at the local producer's ethylene unit and, as a result, a major fall in capacity utilisation at LDPE production in the second half of the year was the main reason for such a great increase in imports.

March LLDPE imports were 3,800 tonnes versus 3,500 tonnes a month earlier. Thus, overall LLDPE imports to Belarus exceeded 12,400 tonnes in January-March 2017, whereas this figure was 11,500 tonnes a year earlier.

March HDPE imports grew to 4,200 tonnes from 3,500 tonnes a month earlier. Local companies increased their purchasing of film grade PE from Russian producers. Thus, HDPE imports totalled 10,600 tonnes in January-March 2017, up by 20% year on year.

MRC

MOSCOW (MRC) — Royal Dutch Shell shareholders on Tuesday widely rejected a proposal by an environmental group calling for the oil company to set and publish annual targets to reduce carbon emissions, said Hydrocarbonprocessing.

The vote is a setback for climate activists who are increasing pressure on global oil companies, including US firms Exxon Mobil and Chevron, to become more ambitious in helping combat climate change.

Around 94% of Shell shareholders who cast a vote decided against resolution 21, according to final results reported following the company's annual general meeting (AGM) in The Hague. Roughly 5% of voters abstained.

"The resolution is an unreasonable ask," said Shell Chief Executive Ben van Beurden, promising to engage further with investors on how the oil company can become more transparent about its plans to tackle climate change.

Shell said binding emissions reduction targets would mean "tying its hands" and weakening the company because it would be forced to reduce production and sales.

Growing investor sensitivity to climate change risks have already led Shell to invest in renewable energy projects such as offshore wind farms.

Shareholders overwhelmingly approved the company's new remuneration policy which for the first time ties 10% of executives bonuses to cutting greenhouse gas emissions.

Van Beurden's speech at Tuesday's AGM began with a 30-min. presentation of Shell's initiatives to help lower carbon emissions. Mark van Baal, founder of the Follow This activist group which put forward the resolution, said the group would target other oil companies such as BP as soon as funding was available.

There was also little opposition to a 60% increase in van Beurden's pay package, with 93% of shareholders supporting it in Tuesday's vote. Last week, shareholders of rival London-listed oil company BP approved CEO Bob Dudley's pay package, which was 40% lower than the previous year.

Last year, some 60% of shareholders voted against Dudley's pay package of nearly $20 MM.
MRC

MOSCOW (MRC) -- The Department of Industrial Relations' (DIR) Occupational Safety and Health Standards Board approved a regulation to strengthen workplace safety and health at oil refineries across the state. The new regulation provides a framework for anticipating, preventing and responding to hazards at refineries, as per Hydrocarbonprocessing.

"This is the most protective regulation in the nation for the safety and health of refinery workers and surrounding communities," said DIR Director Christine Baker. "This new regulation will ensure California's oil refineries are operated with the highest levels of safety possible and with injury and illness prevention in mind."

The approved regulation introduces a new refinery safety order enforced by Cal/OSHA's Process Safety Management (PSM) Unit, adding section 5189.1 to Title 8 of the California Code of Regulations.

Most refineries in California have adopted some of the practices outlined above over the past decade. However, the industry still experiences major incidents that pose a risk to workers, nearby communities and cause disruption to fuel services. The regulation represents a comprehensive safety performance standard for the state's refinery sector. Now that the Standards Board has approved the regulation, the Office of Administrative Law has 30 working days to review and approve it.

The new rules are part of a package of complementary regulations intended to make California refineries safer for both workers and surrounding communities. The companion regulation strengthens the California Accidental Release Prevention (CalARP) program, designed to prevent the accidental release of hazardous substances that could harm public health and the environment. The revised CalARP regulation will also be submitted to the Office of Administrative Law for approval in the coming weeks.

Following a chemical release and fire at the Chevron refinery in Richmond in 2012, the Governor's Interagency Working Group on Refinery Safety called for the establishment of an Interagency Refinery Task Force. The task force was mandated to improve workplace safety and health, emergency preparedness and response procedures at refineries. The California Environmental Protection Agency formed the task force in August 2013, which includes DIR, eight other state agencies, the US Environmental Protection Agency, as well as local and regional agencies from across the state that have refineries in their jurisdictions.

As MRC informed before, on 20 June 2016, three workers suffered minor injuries when a crane collapsed at ExxonMobil’s Torrance refinery in Torrance, California. No reports were issued of damage to the refinery itself. The refinery’s flare system was activated to ensure the safety of refinery workers when operations were halted, and the Torrance Fire Department was onsite to prevent the possibility of a fire or vapor leak.
MRC