India sets up panel to quicken govt stake sale in HPCL to ONGC

MOSCOW (MRC) — India has decided to set up a panel headed by Finance Minister Arun Jaitley to expedite the sale of government's stake in refiner Hindustan Petroleum Corp to explorer Oil and Natural Gas Corp, Oil Minister Dharmendra Pradhan said, as per Indiatimes.

The Indian cabinet last week decided to sell the government's 51.1% stake in refiner and fuel retailer HPCL to oil producer ONGC. The panel "will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues to the transaction," Pradhan told lawmakers in a statement.

Pradhan reiterated that the integration of the two companies will be completed in the current fiscal year. Post-acquisition by ONGC, HPCL can still retain its brand identity, he said.

The acquisition will help create a vertically integrated 'oil major' with a presence across the hydrocarbon chain. ONGC's margins have been hit by falling oil prices while improved gross refining margins and rising local fuel sales have help boost profits of HPCL.

"This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralize the impact of global crude oil price volatility," Pradhan said.
MRC

SCC subsidiary - Vina SCG Chemicals to invest in Long Son Petrochemicals

MOSCOW (MRC) -- The Siam Cement Public Co. Ltd (SCC) has announced that its wholly-owned subsidiary, Vina SCG Chemicals Co. Ltd (VSCG), will proceed with the investment in Long Son Petrochemicals Co. Ltd (LSP), said Plastemart.

The final contract signing is expected to be in H2-17, with commercial operation expected to commence in H1-22. The total project cost is estimated at USD5.4 bln and financing will be with a combination of foreign denominated debt and equity at 60:40.

LSP is positioned as Vietnam’s first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and flexible feedstock. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included at approximately 30% of the total investment cost.

At the heart of the project is a 1 million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tpy depending on the feedstock mix. LSP’s technology will be comprised of proven processes from leading world class licensors. The feedstock will consist of locally sourced ethane, and imported propane and naphtha, on secured contracts and at competitive market prices. This will facilitate the highly flexible cracker that is able to utilise gas up to 80% for cost optimisation. Furthermore, the downstream polyolefins operations will be of similar scale to the cracker, consisting of high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP) plants.


MRC

Port Corpus Christi approves 41-acre lease agreement with Howard Energy Partners

MOSCOW (MRC) -- The Port of Corpus Christi announced the approval of a long-term lease agreement with Maverick Terminals Corpus LLC, a subsidiary of Howard Energy Partners, said Hydrocarbonprocessing.

The 30-yr lease agreement was approved unanimously by port commissioners for approximately 41 acres of land on the north side of the Corpus Christi Ship Channel in the Inner Harbor.

With the growth in both Eagle Ford and Permian Basin productions and the growing global energy demand in general and in particular in Mexico, Corpus Christi is fast emerging as the Energy Port of the Americas. As the largest refining center in close proximity to Mexico Corpus Christi continues to see large investments in supporting the transportation of US energy to Mexican consumers. Howard Energy Partners, a full-service midstream company based in San Antonio, has emerged as a strong player in the energy space and continues to demonstrate leadership in developing projects on both sides of the border.

Howard Energy Partners plans to design, construct, and operate a rail terminal, and a petroleum and petroleum products storage facility on the leased property. Further, Howard Energy Partners intends for this facility to connect with its proposed Dos Aguilas pipeline to Monterrey, Mexico. As part of the lease agreement terms the Port of Corpus Christi Authority will design and construct a new oil dock, Oil Dock 20.

The Oil Dock 20 facility will initially serve Mexico’s transportation fuel demands by rail with an estimated target of at least two to three unit trains per week. Once the Dos Aguilas pipeline is permitted, constructed, and in-service, significantly more volume is anticipated. Further, the Oil Dock 20 is targeting crude exports to international markets and will have Suez-max capability.
MRC

Russia is top China oil supplier 4th straight month in June, longest streak ever

MOSCOW (MRC) — Russia was China's biggest crude oil supplier for a fourth straight month in June, its longest streak ever in the top spot, data from the General Administration of Customs showed on Monday, said Reuters.

China's total crude oil imports reached 36.11 MMt in June, or 8.79 MMbpd, making the country the world's largest buyer for a second month. However, imports dipped 2.9% from May's purchases, the second-highest on record.

Russia's shipments to China last month rose 27% from a year ago to 1.27 MMbpd, but were down from its record 1.35 MMbpd in May, the customs data showed. The country has been China's top oil exporter since March, its longest period ever as the biggest supplier.

Russian crude exports to China grew this year after independent refiners expanded their diet to include the Urals grade exported from the Mediterranean. China also snapped up almost all of the ESPO blend exports from the Pacific port of Kozmino.

Shipments from Angola rose 10.6% from a year ago to 1 MMbpd, the data showed. That was also down from May's 1.31 MMbpd, the data showed.

Russia and Angola are also the top two suppliers for the first six months of this year. During the period, Russia supplied 29.2 MMt of crude to China, or 1.18 MMbpd, and Angola shipped 1.09 MMbpd, a 22% jump from last year.

Saudi Arabia's exports continue to fall, with June shipments down 15.8% from a year ago to 936,607 bpd, making it China's third-largest supplier. For the year to date, it has shipped 1.07 MMbpd.

Lower refinery throughput is likely to further reduce China's demand for crude in coming months, with almost 10% of the country's refining capacity set to be shut down during the third quarter as the industry struggles under a glut of fuel products.

The data also showed that June imports from Iraq surged 47% compared with a year ago to 834,788 bpd. Supplies from Brazil jumped 118% to 689,969 bpd in June, making it the fifth-biggest supplier for the month.
MRC

Ongoing VCM issue at Formosa Plastics Point Comfort plant limiting PVC avails for August

MOSCOW (MRC) -- An ongoing vinyl chloride monomer issue at Formosa Plastics' Point Comfort, Texas, plant is impacting downstream polyvinyl chloride production, and limiting availability for August, as per Plastemart.

Multiple sources -- including some with knowledge of business plans -- said this week Formosa Plastics would not be offering spot export PVC for the upcoming month, adding additional tightness to the export market ahead of potential August price increases. Formosa is expected to have domestic resin in August and meet contractual obligations, sources said. A source with knowledge of company operations said repairs to the VCM plant were expected to last about two weeks. Formosa Plastics spokesman declined to comment.

VCM is a key feedstock used in the production of PVC. Formosa has a VCM capacity of 753,000 m tpa at the Point Comfort complex.
MRC