EPS imports to Russia down by 4% in first eleven months of 2017

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) dropped in the first eleven months of 2017 by 4% year on year to 19,300 tonnes from 20,200 tonnes a year earlier, according to MRC's DataScope report.

About a half of the total shipments were imported by traders.


November EPS imports were 1,900 tonnes, compared to 1,700 tonnes a month earlier.

Styrochem's imports rose to 770 tonnes last month from 580 tonnes in October, Loyal's shipments were 490 tonnes versus 480 tonnes a month earlier, whereas BASF's imports were 250 tonnes versus 310 tonnes. Shipments from China reached 590 tonnes in November versus 560 tonnes a month earlier, accounting for 31% of the total EPS imports for the month versus a 33% stake in September.

In the total imports structure by producers, Styrochem's shipments rose by 18% to 6,800 tonnes from 5,700 tonnes a year earlier, which accounted for 35% of the total imports versus a 28% stake in January-November 2016. Loyal's share decreased in the first eleven months of 2017 to 22% (4,300 tonnes) year on year versus 24% (4,900 tonnes) a year earlier, BASF accounted for 14% (2,800 tonnes) versus 13% (2,600 tonnes), LG Chem - for 8% (1,500 tonnes) versus 6% (1,300 tonnes).

Overall imports of Chinese EPS dropped by 10% year on year in the first eleven months of 2017 to 6,300 tonnes from 7,000 tonnes a year earlier.

MRC

NOVA Chemicals Proceeds With Growth Plans in Canada

MOSCOW (MRC) -- NOVA Chemicals Corporation (NOVA Chemicals) announced two significant growth projects for its Ontario operations involving a capital investment expected to exceed CdnD$2 billion, said the company on its website.

This brings industry-leading manufacturing technology to Ontario, with improved product performance and increased energy efficiency.

The announcement marks the addition of two new large-scale capital investments in the Sarnia-Lambton region. The expansion of NOVA Chemicals’ Corunna cracker by approximately 50 percent will provide ethylene feedstock to a new polyethylene facility, NOVA Chemicals’ second Advanced SCLAIRTECH™ technology facility (AST2). The AST2 facility is designed to increase NOVA Chemicals’ polyethylene production capacity by approximately 950 million pounds (450 kilotons) per year. Site preparations are currently underway for both projects, with start-up targeted for late 2021.

"We are pleased to be moving forward with this growth opportunity and thankful for the support from the provincial government. With this investment, we are bringing innovation to the North American and global marketplace, investing in our highly skilled people and creating a solid future for the communities in which we operate. This was made possible by our talented teams across Canada, the strong support of the community and collaboration with Ontario," said Naushad Jamani, Senior Vice President, Olefins and Feedstocks, NOVA Chemicals.

Earlier this year, NOVA Chemicals acquired the Geismar Olefins Facility located in Louisiana, an operating facility with positive cash flow and significant opportunity for future growth. An additional opportunity to help meet the growing consumer demand for polyethylene continues to progress. Specifically, the proposed Joint Venture with Borealis and Total involving Total’s existing Bayport, Texas polyethylene facility, development of a new light feed cracker in Port Arthur, Texas and a new Borstar® technology polyethylene facility in Bayport, with expected start-up in 2020.

NOVA Chemicals develops and manufactures chemicals and plastic resins that make everyday life healthier, easier and safer. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care®. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
MRC

Britains biggest oil pipeline shut for weeks for repairs

MOSCOW (MRC) — Britain's largest oil pipeline could shut down for weeks for unscheduled repair work, sending the price of crude to new 2-yr highs and triggering a steep rally in natural gas prices, just as a cold snap sweeps the country, said Reuters.

The Forties Pipeline System, which carries around 450,000 bpd of Forties crude from the North Sea to the Kinneil processing terminal in Scotland, had been operating at reduced capacity since Dec. 7 when a routine inspection revealed a small leak. Ineos, a privately owned Anglo-Swiss chemicals company, owns the pipeline and said it had taken the decision to close the system completely.

Oil traders estimated this was the first total closure since 2011, when then-operator BP shut it down while a suspected World War II bomb was removed from the seabed. "It's early days and it is premature to give a time frame for the repair work. We can't give a precise estimate other than to say it is a matter of weeks, rather than days," an Ineos spokesman said.

Ineos bought the Forties Pipeline System (FPS) from BP less than 2 mos ago for USD250 MM. The pipeline, which handles nearly a quarter of total North Sea crude output, is also a major route for bringing natural gas to Britain that has been produced offshore.

Britain is in the grip of a cold front that has brought heavy snowfall and prompted the closure of schools and disrupted travel across the country. Ineos, which also owns the 200,000-bpd Grangemouth refinery in Scotland, said the plant would have to seek "alternative supplies of crude", but that there was enough oil currently in storage at Grangemouth for the company to "manage the situation."

Fiona Legate, a senior analyst for the North Sea oil industry at consultant Wood Mackenzie, said even a temporary shutdown of the pipeline would have wide-reaching implications for the UK oil and gas industry. "FPS transports liquids from more than 80 fields, including the two largest producers in the UK—Buzzard and Forties," she said.

"The bulk of throughput from FPS comes from 10 fields ... In 2017, FPS transported more than 40% of liquids in the UK Continental Shelf." The price of Brent crude oil rose by nearly 2% on Monday to its highest since mid-2015, around USD65/bbl, while prices of Forties on the physical market traded at four-month highs. Forties is the biggest of the five North Sea crude oil streams that underpin the dated Brent price benchmark.
MRC

South China chemical producer halts ammonia output as gas crisis deepens

MOSCOW (MRC) — A major Chinese chemical producer based in the southern province of Yunnan said it has halted production of synthetic ammonia and urea due to natural gas shortages as China's winter heating crisis deepens, as per Reuters.

Yunnan Yuntianhua Co stopped a 500,000-tpy production plant of ammonia and an 800,000-tpy urea production line at its Yunnan Shuifu subsidiary, it said in a filing to the Shanghai Stock Exchange on Tuesday. "Gas producers have suspended gas supplies to major industrial consumers in southwestern regions. Our Shuifu plant will temporarily halt production of two chemicals as a result," the company said.

Yuntianhua, which halted production on Monday, will book a USD3.78-MM loss due to the disruption. The company does not expect to resume before Dec. 31. The stoppage comes as at least one state natural gas producer has diverted supplies of the fuel to China's north for residential heating use.

State radio reported last week that PetroChina has sent at least 5 MMcm of gas from the southern provinces of Zhejiang, Fujian and Guangdong province to help relieve shortages in northern China. A PetroChina official familiar with the plan said as much as 10 MMcm has been diverted north. He declined to be named because he is not authorised to speak to the press.


MRC

China crude oil imports to rebound in January on quotas, low stocks

MOSCOW (MRC) -- China's crude oil imports are expected to rebound in January as demand from independent refiners will accelerate once 2018 import quotas are in place, and processors start to replenish inventories, reported Reuters with reference to analysts and trade sources.

China's crude imports are expected to rise to another record in 2018 as new capacities are brought online and Beijing allows more independent refiners to import crude.

Robust demand growth in the world's largest crude importer - China having overtaken the United States this year - is also helping to support global oil prices just as the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers are set to extend supply cuts.

China's crude imports could hit 8.8 MMbpd next year, while January shipments may hit a monthly record of 8.53 MMbpd as independent refiners receive their import quota and buyers start to replenish stocks ahead of Chinese New Year in mid-February, said Seng Yick Tee, analyst at Beijing-based consultancy SIA Energy.

"An oil price at above USD60/bbl is unlikely to dampen buyers' enthusiasm as refiners can pass on the cost to end-users on the upward trend of crude prices," Tee said.

Beijing is expected to bring forward the release of 2018 import quotas to December, allowing shipments to enter the country from January, refining and trade sources said. For 2017, the Ministry of Commerce issued quotas in January.

"Demand is accelerating because of more crude quotas coming in January," a source with an independent refiner said.

The source said refineries are placing more orders for crude arriving in the second half of January on concerns that the quotas may not come in time.

Stronger than expected fuel demand and firm margins has lifted China's refinery use rates and pushed crude oil inventories to their lowest in more than seven years as refiners drew down stocks.

China is likely to buy crude mainly from the Middle East and Russia, while some of its demand will be met from other regions, the sources said.

Spot premiums for Oman and Russian ESPO grades, two of the most popular among independent refiners, have hit multi-month highs for January loading.

As much as 800,000 bpd of US crude is expected to arrive in Asia in December, said an analyst who tracks oil flows.

Royal Dutch Shell is sending 6 million barrels of North Sea crude to Shandong, where most of the country's independent refiners are located, in December and January, trade flows data on Thomson Reuters Eikon showed.

Shell said it does not comment on commercial matters.
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