Crown Prince: Saudi Arabia ready to extend oil output cut deal

MOSCOW (MRC) — Crown Prince Mohammed bin Salman reiterated Saudi Arabia's readiness to support the extension of a global oil production cut agreement, as per Reuters.

"The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand," the crown prince said in a statement. "The high demand for oil has absorbed the increase in shale oil production," Prince Mohammad added.

Prince Mohammad made similar comments to Reuters in an interview published on Thursday about the position of the kingdom towards the extension of the oil deal and condition of the market. "We will support anything to stabilize the oil demand and supply," he told Reuters when asked whether the kingdom would support extending the agreement until the end of 2018.

"I think now the oil market swallowed the shale oil supply, now we are regaining things again," he told Reuters. His comments gave a boost to oil prices, with Brent crude on Friday trading above USD60/bbl for the first time since July 2015. Saudi Arabia, OPEC's biggest producer is leading OPEC and other oil producers such as Russia to restrict oil supplies under a global oil pact to drain global inventories and boost oil prices.

The Organization of the Petroleum Exporting Countries, plus Russia and nine other producers, have cut oil output by about 1.8 MMbpd since January. The pact runs to March 2018, but an extension is under consideration.

OPEC and non-OPEC producers meet on Nov. 30 to set oil policy.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, will acquire the assets of Artlant PTA, S.A.’s (Artlant), including all equipment, surface rights and employment contracts. Artlant, a Purified Terephthalic Acid (PTA) plant in the Sines Industrial Complex in Portugal is a large PTA producer in Europe with a production capacity of 700,000 tonnes per annum adding substantial scale and enhancing IVL's PTA leadership in Europe, as per the company's press release.

IVL will also acquire the assets of adjacent utilities provider, Artelia Ambiente, S.A. (Artelia), which has a capacity of 40.390 MW of electricity, steam, demineralized water, wastewater treatment and hydrogen. This acquisition will benefit the company by securing energy supply to Artlant and sell excess power to the grid.

PTA is used as raw material for PET (Polyester) production. With the Company’s plan to grow its core businesses in the future, this feedstock security will be a solid basis for portfolio expansion. IVL expects to reduce cost and increase operational synergies via internal supply of feedstock and replace imports in Europe.

Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "Artlant fortifies our core PTA business and is a part of our successful vertical integration strategy. We can apply our scale and operational expertise while taking advantage of cost synergies and capture the opportunity for future growth and expansion."

"We are confident that Artlant will drive the growth of the polyester business both in Portugal and the rest of Europe. It will support employment opportunities in the region, and help economic growth. I look forward to closing the deal in the fourth quarter of 2017," Mr. Lohia concluded.

As MRC informed before, in October 2017, IVL entered into an agreement to acquire DuPont Teijin Films (DTF), a leading global producer of Biaxially-oriented Polyethylene Terephthalate (BOPET) and Polyethylene Naphthalate (PEN) films with total film/polymer capacity of 277,000 tonnes per annum. The DTF acquisition includes 8 production assets in the US, Europe and China, with a global innovation center in the UK. The transaction is expected to be completed during late 2017 or early 2018, subject to the usual regulatory approvals.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. IVL products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. IVL has approx. 15,000 employees worldwide and consolidated revenue of USD7.2 billion in 2016.
MRC

MOSCOW (MRC) -- The November contract price of ethylene was settled at the level of October in Europe. However, European polyethylene (PE) producers reduced their export PE prices by up to EUR60/tonne for November shipments to the CIS countries, as per ICIS-MRC's Price report.

Negotiations over November prices of European PE to be shipped to the CIS markets began at the end of last week. Many negotiators said most European producers had reduced their export PE prices, despite the stability of monomer prices. Only in some casese, producers rolled over October prices.

Deals for November shipments of high density polyethylene (HDPE) were discussed in the range EUR940-1,050/tonne FCA, whereas October deals were done in the range of EUR1,000-1,100/tonne FCA. It should be noted that some producers significantly reduced their prices for stocks back in the second half of October, prices reached EUR930-980 per tonne, FCA.

Deals for black PE 100 were done in the range of EUR1,250-1,270/tonne FCA, which virtually corresponded to October prices.

Deals for November shipments of low density polyethylene (LDPE) were negotiated in the range of EUR1,070-1,180/tonne FCA, whereas last month's deals were done in the range of EUR1,130-1,180/tonne FCA.
MRC

MOSCOW (MRC) -- CB&I’s LA MEG-1 project achieved a major construction milestone with the erection of a 350-ft wash tower, as per Hydrocarbonprocessing.

A PTC-200 ringer crane with a capacity of 3,200 mt was used to set the wash tower, which is one of the largest cranes in the world in terms of capacity and reach. Even more noteworthy, is that the tower was set two weeks ahead of schedule.

The MEG-1 project was awarded to CB&I in December 2015 by Lotte Chemical Louisiana L.L.C., a subsidiary of Lotte Chemical U.S.A. and Lotte Chemical headquartered in Seoul, Korea.

The wash tower is an integral part of converting ethylene oxide into ethylene glycol. The ethylene glycol produced will be used as a feedstock to produce polymers for the plastics and clothing industries.
MRC