PKN Orlen expects higher downstream margins in 2017

MOSCOW (MRC) -- Poland’s biggest oil refiner PKN Orlen expects its downstream margin to rise this year from $11.70/bbl in 2016, as per Hydrocarbonprocessing with reference to the company’s official.

"It seems that the downstream margin will be on a higher level than last year," Rafal Warpechowski, a director at PKN Orlen, told a news conference.

He also said that on the whole the macroeconomic environment for PKN this year would improve.

PKN on Thursday booked a third-quarter net profit of 1.6 B zlotys, missing analysts’ expectations.

As MRC wrote before, in December 2016, PKN Orlen signed an annex with Tatneft Europe AG to the agreement for crude oil supplies to Czech refinery in Litvinov that provides the extension of contractual period and increases the possible maximum volume of the crude oil delivered. According to the annex, Tatneft will deliver to Litvinov refinery a crude oil in the quantity from 1,620 MMt to maximum 3,960 MMt. The contract is valid from Jan. 1, 2017 until Dec. 31, 2019.

PKN Orlen is a major Polish oil refiner and petrol retailer. The company is a significant European publicly traded firm with major operations in Poland, Czech Republic, Germany, and the Baltic States. It currently (2015) ranks 353, with a revenue of over USD33.8 billion.
MRC

MOSCOW (MRC) -- Air Liquide is expanding its healthcare business in Japan with the acquisition of Sogo Sangyo Kabushiki Kaisha (“SSKK”), a major Japanese player with a strong presence in the home healthcare and medical gases markets especially in the Tokyo region, said the company on its website.

Present in the Japanese market for 60 years, SSKK is specialized in the medical gases field serving more than 2,000 hospitals and clinics and home treatment for patients suffering from respiratory diseases including: sleep apnea, Chronic Obstructive Pulmonary Disease and chronic respiratory failure. This acquisition represents a major development of the Healthcare activity locally where it increases the number of patients served at home by Air Liquide in Japan to reach 20,000.

Well known for its medical staffs’ know-how, SSKK has more than 150 employees and generated revenue of approximately EUR27 million in 2016. Air Liquide will rely on the commitment of the teams in place to pursue the development of SSKK business.

Worldwide, Japan now ranks as the third-largest Respiratory Home Healthcare market after the US and France. Home Healthcare services in Japan are expected to continue increasing, supported by a robust healthcare system and social welfare coverage reaching almost 100% of the population. With this acquisition, Air Liquide strengthens its footprint in Japan both in medical gases to hospitals and in home healthcare business.

Francois Jackow, member of the Air Liquide Group’s Executive Committee, supervising the Healthcare activities, said: "With this acquisition Air Liquide pursues the development of its Healthcare activity in a growing Asian market that benefits from a strong potential. We are delighted to welcome SSKK’s teams in Air Liquide Group. Thanks to their know-how combined with Air Liquide expertise, we will deliver greater value to healthcare professionals and patients. This acquisition, which allows us to develop our activities in Japan, will also fuel our future growth".
MRC

MOSCOW (MRC) -- Air Liquide recently entered into a new joint venture with Sinopec (China Petroleum & Chemical Corp.) in Beijing, for the take-over and optimization of three existing ASUs (Air Separation Units) and the building of a new nitrogen production unit, for a total investment of 40 million euros, said the company on its website.

In the third quarter 2017, Air Liquide also commissioned a new state-of-the art ASU for the supply of oxygen and nitrogen to Sinopec in South China. The new joint venture, Air Liquide-BYPC Gases, is located in Beijing and will supply oxygen and nitrogen to Sinopec Beijing Yanshan Co. with a total capacity of 340 tonnes of oxygen and 1,110 tonnes of nitrogen per day.

In South China, located in Maoming City of Guangdong Province, the newly commissioned ASU1 supports the new ethylene oxide plant of Sinopec’s subsidiary, Maoming Petrochemical (MPCC), by supplying oxygen (850 tonnes per day) and nitrogen (840 tonnes per day).

Sinopec is one of the largest integrated energy and chemical companies in China. Cooperation between Air Liquide and Sinopec dates back to 2007. The two parties have established three joint ventures so far.

Francois Abrial, member of the Air Liquide Group’s Executive Committee supervising Asia Pacific, said: "The continuous expansion of our partnership with Sinopec showcases their confidence in Air Liquide’s ability to provide state-of-the-art technologies and competitive solutions. We are proud to provide our expertise to Sinopec, in support of their expansion in China."
MRC

MOSCOW (MRC) -- India's Reliance Industries Limited is in the process of stabilizing production at its new Jamnagar polyethylene (PE) complex, a company source said Tuesday, reported Apic-online.

The new complex was started up in September. It comprises a 550,000 mt/year linear low density polyethylene swing plant (LLDPE) and a 400,000 mt/year low density polyethylene (LDPE) unit.

The ethane-based plants will use refinery offgas as feedstock.

Meanwhile, RIL is building a 1.37 million mt/year steam cracker at the same site.

As MRC informed before, initially, RIL planned to start commercial operations at its new PE plants in Q2 2017.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) — The US Department of Commerce said on Tuesday it began an investigation into whether imports of polyethylene terephthalate (PET) resin from Brazil, Indonesia, South Korea, Pakistan and Taiwan were being dumped in the US market, said Reuters.

The US International Trade Commission is expected to make a decision by Nov. 13 on whether imports of the material used to make clothing and plastic bottles harm or threaten to harm US producers, the department said in a statement

If they are found to do so, the Commerce Department would continue its investigation and make a preliminary antidumping decision by March 5, 2018, the department said.

The probes were prompted by petitions filed by DAK Americas LLC of North Carolina, Indorama Ventures USA Inc of Alabama, M&G Polymers USA LLC of Houston, and Nan Ya Plastics Corp America of South Carolina, a unit of Taiwan’s Nan Ya Plastics Corp, the department said. Indorama Ventures USA Inc is not a petitioner with respect to the Indonesia investigation, it said.

The estimated dumping margins alleged by the petitioners range from 18.76% to 115.87%, 8.49% to 53.50%, 55.74% to 101.41%, 25.03% to 43.40%, and 14.67% to 45.00% for Brazil, Indonesia, South Korea, Pakistan and Taiwan, respectively, the statement said.

In 2016, imports of PET resin from Brazil, Indonesia, South Korea, Pakistan and Taiwan were valued at an estimated USD51.7 MM, USD35.7 MM, USD24 MM, USD34.1 MM and USD109.8 MM, respectively.
MRC