Saudi Aramco IPO on track for 2018

MOSCOW (MRC) -- Saudi Aramco’s initial public offering is on track for next year and the national oil giant could be valued at more than USD2 trillion, Saudi Arabia’s Crown Prince Mohammad bin Salman told Reuters in an interview.

The sale of around 5% of Aramco next year is a centrepiece of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil which is championed by Prince Mohammad.

Saudi officials have said domestic and international exchanges such as New York, London, Tokyo and Hong Kong have been looked at for a partial listing of the state-run firm.

A decision on which exchange would secure the offering has still not been made, fuelling market speculation that the IPO could be delayed beyond 2018 or even shelved, amid growing concerns about the feasibility of an international listing.

"We are on track in 2018... but the listing (details) are still under discussion," Prince Mohammad told Reuters in an interview. "It will be IPO-ed in 2018."

The crown prince declined to discuss specific details of the IPO, which could be the biggest in history and is expected to raise as much as USD100 billion.

As MRC reported earlier, in June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. 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. A joint venture is possible if the companies decide to move ahead after the study is completed. 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

Mexicos energy chief says plan coming to 'soften' retail fuel increases

MOSCOW (MRC) — Mexico's finance ministry is looking at ways to "soften" the price impact of gasoline market liberalization next year, as er Hydrocarbonprocessing.

Some independent fuel importers recently have complained about a lack of tax adjustments to reflect the at least 15% increase in recent weeks in international prices of gasoline and diesel, the two main refined products imported by Mexico.

Coldwell said through an interpreter that a tax mechanism will be designed "for softening these prices. This protects the Mexican consumer from abrupt increase in prices." He did not elaborate on the changes. Coldwell said overall energy reform efforts are benefiting Mexico's consumers, bringing wider choices for the first time in gasoline quality and brands.

The market reform ended the monopoly national oil company Pemex once enjoyed in everything from crude production to retail sales, paving way for international oil companies including Royal Dutch Shell Plc, BP Plc and ExxonMobil Corp to enter the retail market.

"Before we had only one brand for retail gasoline stations. Now we have 30," Coldwell said.
MRC

Middle East, US crude oil curbs Indian appetite for African supplies

MOSCOW (MRC) — India's imports of African crude oil in October plunged to their lowest in over four years, with the world's No.3 oil consumer increasingly turning to cheaper supplies from the United States and heavier Middle Eastern grades, ship tracking data showed, as per Hydrocarbonprocessing.

US crude production has soared more than 14% since mid-2016 to 9.65 MMbpd, altering trade routes as its relatively cheap and light grades become a viable import option for Asian refiners. "Earlier in Asia, West African oil was competing with Middle East grades, but now it has a new competitor: the US," said Ehsan Ul-Haq, director of crude oil and refined products at consultancy Resource Economist.

Surging US crude output has made West Texas Intermediate (WTI)-linked American oil relatively cheap compared with the international benchmark, Brent, which has been propped up by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

WTI has since October been trading at an average discount of USD6/bbl to Brent. "In the last few months, US oil gave tough competition to the African grades and the price difference (between WTI and Brent) was good enough to cover the freight," said R Ramachandran, head of refineries at Bharat Petroleum Corp.

US crude oil exports to India were unheard of until 2015, when Washington eased tight export restrictions in parallel with its growing output. Rising steadily this year, US oil in October accounted for about 3% of India's overall imports, while the share of African crude fell to about 10.5%, the lowest since November 2012, the ship tracking data in Thomson Reuters Eikon showed.

India's oil imports in October totaled 4.1 MMbpd, a decline of 15% over September, when they hit a monthly record. The imports were also 4.6% lower than a year ago. Of that, around 430,000 bpd came from Africa, the lowest level since March 2013.

Supply disruptions in Nigeria also dented its exports, forcing Indian refiners to seek supplies elsewhere. Last month, the share of the Middle East crude in India's overall imports rose to its highest in about a year, making up almost 70% of all supplies, the data showed, shipping over around 2.8 MMbpd.
MRC

ELIX Polymers renews environmental care efforts with commitment to Operation Clean Sweep

MOSCOW (MRC) -- ELIX Polymers, a leading producer of ABS resins and compounds, has joined Operation Clean Sweep (OCS), the international program designed to eliminate losses of pellets, flake, and powder and prevent these materials entering rivers and oceans, said the producer in its press release.

Marine litter is a global concern, affecting all the oceans of the world, and this specific program is a contribution to avoid this problem from plastics producers and converters.

This program, in combination with circular economy programs, intensive education, awareness actions and campaigns to the society, should prevent marine litter. The scope of this program is extended from polymer and compound producers, transporters, bulk terminal operators, processors and recyclers, covering every step of the supply chain. Joining the Ocean Clean Sweep program is only one of the efforts ELIX make to preserve the environment.

OCS is a voluntary stewardship program for plastics production and handling facilities administered jointly by the Plastics Industry Association (PLASTICS, previously SPI) and the Plastics Division of the American Chemistry Council (ACC). Founded just over 25 years ago in the USA, OCS is now taking on an increasingly global aspect. Its program is now being implemented in 23 countries around the world. In the European Plastics Industry, the implementation of the OCS program is coordinated by Plastics Europe. As ELIX Polymers is an associate member of Plastic Europe, it now gladly joins this program.

Operations Director David Castaneda confirmed ELIX Polymers’ adherence to the Operation Clean Sweep (OCS) program at a signing ceremony at its headquarters in Tarragona, Spain. He was accompanied by Ignacio Marco, Iberica Region Director for trade association PlasticsEurope.

OCS provides a manual, checklists, guidelines and other resources and tools designed to help companies keep plastics pellets, flakes and powder out of the environment.

"ELIX Polymers has a strong commitment to sustainability and the environment," says Castaneda. "Signing up to the OCS program is a further confirmation of that commitment. We will make a step forward by implementing the program within our organisation and our partners."

As MRC wrote previously, in 2016, ELIX Polymers unveiled an upgraded version of P2MC as well as new ABS grades to complete the plating portfolio. Target applications for these electroplating grades include radiator grilles, logos, profiles, tailgate handles, and decorative interior parts.

ELIX Polymers is one of the most important manufacturers of ABS resins and derivatives in Europe, with 40 years of experience in engineering plastics and an installed capacity of 180,000/year from their plant in Tarragona (Spain) to the world. The operation starts in 1975, when the Tarragona ABS and SAN production plant was inaugurated.
MRC

AkzoNobel completes expansion at US LeMoyne plant

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business has completed a USD10 million investment at its LeMoyne sulfur derivatives plant in the US, which supplies essential ingredients used in several major industries, said the producer on its site.

Located in Alabama, the investment includes a 20,000 dry metric ton expansion for the production of sodium hydrosulfide (NaSH), which the company supplies to customers in the paper, leather tanning, mining and specialty polymers segments.

"This is a key expansion which will help to support growing customer demand," explains Sulfur Derivatives General Manager, Ignacio Garin. "The LeMoyne facility employs unique AkzoNobel technology which provides NaSH at lower impurity levels and higher concentrations than competing processes, providing a significant sustainability benefit for customers."

AkzoNobel is the only company to produce a high strength, high purity NaSH at 60% concentration, which means the product qualifies as an eco-premium solution, offering advantages in terms of energy efficiency, emissions and waste water.

Commenting on the expansion, Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Specialty Chemicals, adds: "This project is just the latest in a series of capital investments we have made to support the growth of our customers across a range of end-use markets. It also underlines our ongoing commitment to sustainability."

As MRC wrote previously, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC