ADNOC to explore expanding partnerships with Chinese Energy, Technology and Chemical

MOSCOW (MRC) -- His Excellency Dr Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO, has held a series of meetings with government and corporate leaders in Beijing, focused on strengthening the strategic relationship between the UAE and China and deepening the partnerships between ADNOC and China’s energy, chemical and technology sector, reported Hydrocarbonprocessing.

Group wide, as part of its 2030 strategy, ADNOC is undertaking a major downstream expansion aimed at tripling petrochemical production by 2025. View 2 minute video at this link. More than 40 per cent of a USD109 billion CAPEX program will be directed at this goal over the next five years, as ADNOC builds out the Ruwais complex to create the largest refining and chemical site in the world. The company is also on track to expand crude capacity to 3.5 MMbpd, so that ADNOC continues to be a reliable supplier of fuel as demand grows, particularly in Asia.

H.E. Dr Al Jaber met with H.E. Wang Yi, Minister of Foreign Affairs of the People’s Republic of China and with H.E. Ning Ji Zhe, and Vice Chairman of China’s National Development and Reform Commission (NDRC), where business and economic relations between the United Arab Emirates and China were discussed, including growing cooperation between the two countries in the technology, energy, chemical, investment and commercial sectors. China is the UAE’s largest trading partner, with bilateral trade growing 800 fold in the three decades since formal relations were established to top US USD50 B per year.

H.E. Dr Al Jaber highlighted the significant progress made in developing the close ties between the UAE and China and expressed the keen interest of the UAE leadership to further enhance those relationships. Prior to his meeting with H.E. Wang YI, H.E. Dr Al Jaber met with senior officials from Huawei Technologies, a leading global information and communications technology (ICT) solutions provider, during a visit to the Zhongguancun technology hub, in the Haidan District of Beijing. H.E. Dr Al Jaber said: "ADNOC’s focus on the application of advanced technology, in support of its 2030 growth strategy, is one area where China’s experience in developing Artificial Intelligence and Predictive Data, through companies such as Huawei, could be deployed to create additional value from its resources. ADNOC is keen to advance and lead the digitization of the oil and gas industry."

As part of its transformation objectives, ADNOC is exploring how advanced technologies and applications, such as machine learning, neural networks, predictive data and artificial intelligence, could help enhance efficiency, productivity and profitability across the oil and gas value chain. ADNOC launched its two digital command centres Panorama and Thamama in 2017, where data from its subsurface and surface operations is captured, analyzed and incorporated to decision making.

During his visit, H.E. Dr Al Jaber also met with Wang Yilin, Chairman of China National Petroleum Company; Frank Ning, Chairman of Sinochem; Zengtai Liao, President of Wanhua Chemical Group and Tu Guangshao, Vice Chairman and President, China Investment Corporation. Discussions focused on ADNOC’s expanded approach to partnerships and co-investment opportunities created by ADNOC’s 2030 growth strategy.

"China represents a key strategic partner for the UAE and the growing ties between Chinese companies and ADNOC is a testament to the depth and importance of the relationship,” said H.E Dr Al Jaber. “We are keen to explore how ADNOC can continue to serve the growing demand for energy, and, in particular, for chemical and petrochemical products in China, as a key growth market."

In the past year, China and the UAE have made a number of co-investments in the energy sector. In February 2017, the China National Petroleum Corporation (CNPC) and China CEFC Energy were awarded minority stakes in the UAE's onshore oil reserves. And, in November of 2017, ADNOC and CNPC signed a framework agreement covering various areas of potential collaboration, including offshore opportunities and sour gas development projects.

Meanwhile, ADNOC is focused on market expansion in China and Asia, where demand for petrochemicals and plastics, including light-weight automotive components, essential utility piping and cable insulation, is forecast to double by 2040. China is the largest export customer in Asia, for Borouge, a petrochemicals joint venture between ADNOC and Borealis, accounting for 1.2 MMtpy of polyolefins, equal to one third of its sales worldwide.

As MRC wrote before, in late 2017, ADNOC finalized its 2018 gasoil and jet fuel supply term contracts with at least one buyer, five traders that participate in the market.
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Refiners Valero, Marathon see upbeat 2018 on global growth

MOSCOW (MRC) -- U.S. refiners Valero Energy Corp and Marathon Petroleum Corp posted quarterly profits on Thursday that beat estimates and said they expected strong global economic growth to spur demand for oil in 2018, said Hydrocarbonprocessing.

Shares of Marathon and Valero, which have gained more than 45 percent in the past 12 months, were marginally up in early trading on Thursday. Analysts say refiners are likely to outshine other energy segments in 2018 as they benefit from a surge in U.S. oil production and rack up among the biggest gains from the recent corporate tax cuts.

U.S. oil output is expected to surpass 10 million barrels per day this month, supported by strong demand and improving global oil prices.

"Looking ahead, we continue to see a favorable fundamental environment, with abundant crude oil supply and strong products demand being supported by global economic growth," Valero's Chief Executive Joe Gorder said in a statement.

Shareholders and analysts, however, are keeping a close watch on investment budgets at oil companies, arguing that prices are still 40 percent lower than their 2014 highs and do not justify big new outlays. Companies should instead make the most of current capacity, they say.

On Thursday, Valero said it expects to invest USD2.7 billion in 2018, about USD300 million more than it spent in 2017. Marathon said it expected to spend USD1.6 billion in 2018, compared with the USD1.7 billion it had earmarked for 2017.

The companies have increased their quarterly dividends by about 15 percent. In the fourth quarter, operating income at Marathon's refining business surged more than four-fold, while Valero's increased 52.2 percent, supported by higher gasoline and distillate margins.

Valero reported a USD1.9 billion gain to net income and Marathon a USD1.5 billion increase as the companies benefited from President Donald Trump's recent tax reforms.

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Celanese completes acquisition of thermoplastics custom compounder Omni Plastics

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced it has completed the acquisition of Omni Plastics L.L.C. and its subsidiaries, including Resinal de Mexico. Financial details of the transaction are not being disclosed at this time, as per the company's press release.

Omni Plastics specializes in custom compounding of various engineered thermoplastic materials and is headquartered and has a compounding facility in Evansville, Indiana, with additional offices in Mexico City.

This acquisition further strengthens Celanese's global asset base by adding compounding capacity in the Americas to enable Celanese to continue to support a growing and diverse customer base.

Celanese will integrate the Omni Plastics thermoplastic compounding product portfolio and production capabilities into the Celanese engineered materials business to include the following product brands:

- OmniLon polyamide formulations for automotive, heavy truck, air movement, appliance, office furniture, and lawn & garden applications.
- OmniPro polypropylene formulations for pump housings, wheels, handles, mounting brackets, levers, pressure vessels, and office furniture component applications.
- OmniCarb polycarbonate formulations for automotive and electronic applications.
- OmniTech non-standard, custom-developed products including polybutylene terephthalate and acrylonitrile butadiene styrene formulations for applications with unique functional requirements, including flame retardant, conductive, wear-and-friction, and improved optical clarity.

Several product grades are UL-listed, FDA-compliant, NSF-compliant and made with post-industrial material, as well as qualified with automotive, E&E, and other original equipment manufacturers.

As MRC reported earlier, in May 2017, Celanese Corporation completed the acquisition of the nylon compounding division of Nilit, a major independent producer of high performance nylon polymers and compounds.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our two complementary business cores, Acetyl Chain and Materials Solutions, use the full breadth of Celanese’s global chemistry, technology and business expertise to create value for our customers and the corporation.
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EPA chief riles ethanol advocates with call for biofuels policy reform

MOSCOW (MRC) - The head of the U.S. Environmental Protection Agency said on Thursday that the recent bankruptcy of a Pennsylvania oil refiner was evidence the nation's biofuel policy needs an overhaul in comments that infuriated biofuels advocates, as per Hydrocarbonprocessing.

Philadelphia Energy Solutions, the largest oil refiner on the East Coast, filed for bankruptcy last month. The company blamed the cost of complying with the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to blend corn-based ethanol and other biofuels into their gasoline and diesel.

EPA chief Scott Pruitt said in an interview with Fox News that the bankruptcy largely stemmed from the RFS, and cited the program's requirement that refiners earn or purchase biofuel blending credits called RINs to prove to the EPA that they were meeting their obligations. "We need RIN reform," Pruitt said, pointing out RIN prices had risen in recent years. "It is something I’ve talked to Congress about."

He also said the EPA wanted to take a more conservative approach to setting annual biofuel blending volume requirements, an idea he has floated in the past and which has faced stiff resistance from the ethanol lobby.

"We set volume obligations every November," he said. "Our job should be to take the market and production levels and set volume obligations that are consistent with objective factors – not set inflated or blue-sky types of numbers that create this inflationary pressure on RINs."

Overhauling the RFS, which the George W. Bush administration started to help farmers and reduce U.S. petroleum imports, would require an act of Congress. John Cornyn, the No. 2 Senate Republican, is trying to build consensus for a bill that would alter the RFS to help refiners.

The RFS requires refiners to blend 15 billion gallons (57 billion liters) of ethanol into the nation's fuel each year. Pruitt's comments angered proponents of the biofuels industry.
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Indian Oil claims technical breakthrough in Octomax unit of Mathura refinery

MOSCOW (MRC) -- State-owned Indian Oil Corp (IOC) has said it has made a technological breakthrough in commissioning a Octomax unit at its Mathura refinery that will help manufacture Euro-VI fuel emission compliant petrol, as per Hydrocarbonprocessing.

"The breakthrough technology developed by IOC's R&D Centre converts C-4 streams from Catalytic Cracker and/or Naphtha Cracker units to high-octane gasoline (petrol) blending stream, thereby enabling compliance with stringent fuel quality norms," a company statement said.

The Octamax Unit has been completed ahead of the targeted schedule and without any cost overrun, IOC said.

"The blending octane number of the sample drawn from the newly commissioned unit was seen to be 118, higher than the guaranteed 108, while meeting all other defined product properties," it said.

IOC said Octamax truly is a 'Make in India' venture where all activities, from concept to development of the technology, preparation of basic design engineering package, erection and commissioning of the unit, have been accomplished through indigenous efforts.

As MRC informed before, in mid-August 2017, IOC completed maintenance at its polypropylene (PP) plant in India following maintenance turnaround. The company had undertaken a planned shutdown at its plant in mid-July 2017.
Located at Panipat in the northern Indian state of Haryana, the PP plant comprising two units has a production capacity of 300,000 mt/year each.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
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