PE imports into Russia rose by 12% in 2017

MOSCOW (MRC) -- Imports of polyethylene (PE) into the Russian market increased by 12% in 2017 compared with the level of 2016 to about 603,800 tonnes. Imports of high density polyethylene (HDPE) and ethylene-vinyl-acetate (EVA) grew significantly, according to MRC's DataScope Report.

December PE imports into the Russian market decreased to 55,400 tonnes from 60,600 tonnes a month earlier, local companies cut their purchases of film HDPE and linear low density polyethylene (LLDPE) . Overall PE imports into the country increased to 603,800 tonnes over the stated period versus 537,100 tonnes a year earlier. The HDPE and EVA segments accounted for the increase in imports, whereas other PE grades accounted for the decrease in import shipments.

The structure of PE imports looked the following way over the stated period.

December imports of HDPE fell to 15,000 tonnes from 28,900 tons in November, local companies reduced their purchasing of film grade and blow moulding HDPE in Ukraine. In general, the total imports of HDPE reached 261,300 tonnes in 2017 against 153,600 tonnes a year earlier, long scheduled maintenance works at several plants and a reduction in output at Nizhnekamskneftekhim were the main reasons for the growth of imports.

December LLDPE imports into Russia decreased to about 10,400 tonnes against 14,000 tonnes a month earlier, local converters increased their purchases of film PE. Imports of LLDPE into Russia in 2017 amounted to about 175,800 tonnes against 219,300 tonnes a year earlier, an increase in production volumes from Nizhnekamskneftekhim was the main reason for reducing dependence on external supplies.

December imports of low density polyethylene (LDPE) decreased to 8,000 tonnes from 8,300 tonnes in November, shipments of PE from Europe decreased. Overall 2017 LDPE imports fell to 90,500 tonnes from 93,000 tonnes a year earlier.

December imports of EVA were 4,100 tonnes against 2,900 tonnes in November; demand for EVA for compounds grew. Imports of this ethylene copolymer grade grew by 16% over the stated period to 37,300 tonnes.

Imports of other ethylene polymers in 2017 totalled about 48,900 tonnes, compared to 39,000 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Yanbu National Petrochemical Company (Yansab) has shut its high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) units for maintenance, as per Apic-online.

A Polymerupdate source in Saudi Arabia informed that the company has commenced turnaround at the units last week. The planned outage is expected to remain in force for around 6-7 weeks.

Located in Yanbu, Saudi Arabia the HDPE and LLDPE units have a production capacity of 400,000 mt/year each.

As MRC informed before, on March 6, 2017, Yansab announced contract award for the ethylene glycol DBN project to (eTEC E&C Limited) for Engineering, Procurement and Construction (EPC) of the project, the total contract is at lump-sum USD 99.4 Millions. The project will be financed from Yansab own resources. Noting that the expected completion of the project will be end of 2018, after project completion the ethylene glycol plant production is expected to be increased by not less than 80 thousand tons/year.

Yansab is the most recent SABIC, (Saudi Basic Industries Corp), affiliate in Saudi Arabia, and will be the largest Sabic petrochemical complex. It will have an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT (metric-tons) of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene; 400,000 MT of polypropylene; 700,000 MT of ethylene glycol; 250,000 MT of benzene, xylene and toluene, and 100,000 MT of butene-1 and butene-2.
MRC

MOSCOW (MRC) -- Contanda announced it has officially withdrawn its permit application to handle and store crude oil at the company’s Grays Harbor terminal, as per Hydrocarbonprocessing.

As announced last week, Contanda will now pursue permits to expand its facility to handle and store a portfolio of cleaner fuels including biodiesel, renewable diesel and ultra-low sulfur diesel in anticipation of increased demand for low-carbon, cleaner fuels.

Since 2009, Contanda has safely operated a state of the art facility to handle bulk liquid storage and logistics at the Port of Grays Harbor. Leveraging LEEN Engineering standards for development, the revised application for eight new storage tanks capable of storing 1.1 million barrels of liquid is in response to customer demand and the strong future across the West Coast for biofuels and commodities such as ultra-low-sulfur diesel as low carbon fuel standards and carbon regulations continue to move forward.

“We heard the community, met with our customers and developed a revised strategy involving the storage of clean products,” said G.R. “Jerry” Cardillo, CEO of Contanda. “With the highest commitment to safety, our neighbors and the environment, we look forward to this potential expansion which will bring jobs, tax revenue and other economic benefits to the community for the long term."

Grays Harbor’s strategic location and infrastructure are attractive to Contanda and potential customers whose products originate in the Northwest and can travel by rail to the port to be transferred to deep-water marine vessels. The project would create as many as 100 jobs during construction and up to 20 permanent positions when operational.

On Jan. 29, Contanda withdrew its permit application for crude oil and submitted its new application to the City of Hoquiam, which begins the permitting process for cleaner fuels. The company will continue to work closely with the City of Hoquiam and the Washington Department of Ecology, but does not yet have a timeline for the revised project.
MRC

MOSCOW (MRC) - The Canadian government, which faces growing protests against major energy projects, this week will present plans to improve the way oil pipelines and mines are assessed, two well-placed sources said, said Hydrocarbonprocessing.

Three entities share responsibility for probing the environmental impact of proposed projects, a system the ruling Liberals say the public does not trust.

Ottawa is due to unveil draft legislation creating a single body to look into projects on federally regulated land, said the sources, who requested anonymity because of the sensitivity of the situation. The announcement could come as early as Tuesday.

“There will be one responsible authority,” said one source, adding that the government would stick closely to a plan it issued last June. Under that plan, the National Energy Board (NEB), which critics say is too close to the industry, would lose the power to assess resource projects.

Prime Minister Justin Trudeau says Canadians need more faith in the assessment system. He also stresses the need for Canada to get landlocked crude to its coasts to fetch better prices.

The industry has become frustrated with the current process, which critics say failed now-canceled pipeline projects such as Enbridge’s Northern Gateway and TransCanada’s Energy East. “We don’t want to have a slam dunk-kind process, but the process needs to be fair. It needs to be balanced amongst the various interests,” said Chris Bloomer, chief executive of the Canadian Energy Pipeline Association. “We need to get to clarity, because we’re not getting stuff done now.”

Green activists and aboriginal protesters, who have had success targeting pipelines, are now focused on Kinder Morgan Canada’s plan to nearly triple the capacity of its Trans Mountain pipeline from Alberta to the Pacific Coast. Trudeau’s government approved the expansion in 2016, but it is still facing permit delays.

The legislation could take effect by July 2019, one of the sources said. It would have little immediate impact as projects already under review will continue under the existing system. While industry has pushed for a two stage review, where it is first determined if a project is in the national interest, green groups are concerned that would undermine subsequent assessments.

“I‘m not overly confident we’re going to see a strong bill that restores Canadian confidence in the environmental assessment system,” said Patrick DeRochie of the Environmental Defence group. A spokeswoman for Environment Minister Catherine McKenna, who is responsible for pushing the draft legislation through parliament, declined to comment.
MRC

MOSCOW (MRC) - European refiners are threatening to cut Russian oil purchases due to worsening quality after Moscow has re-routed large volumes of crude to China, as part of its fight with OPEC and the United States for market share in fast growing Asian markets, as per Reuters.

The quality of Russia's flagship Urals oil grade has deteriorated so much that multiple buyers are reviewing how much they buy and the price they are willing to pay for it, according to traders and sources close to European refiners.

Russia has forged closer ties with energy-hungry China at a time of chilling relations with the West over Moscow's role in Ukrainian crisis and allegations of its interference in foreign elections, accusations denied by the Kremlin.

Miroslaw Kochalski, vice-president of PKN Orlen, Poland's biggest refiner, told Reuters in an interview that the changing quality of the Urals his company buys could influence future deals. "It opens room for negotiations with partners, also regarding price conditions," Kochalski said. According to the industry sources who spoke to Reuters, that position is shared by others in the industry who buy Urals crude. The Russian energy ministry and oil pipeline monopoly Transneft both acknowledge the problem of weak Urals quality.

The Urals oil that reaches customers in Europe is a blend of different sources of oil, with the mixing taking place inside Russia's pipeline system. The quality depends on the relative proportions of higher-quality and lower-quality darker oils in the mix.

Data on Urals chemical composition, obtained by Reuters from industry sources, showed the oil exported to Europe this month is near the bottom end of the quality range allowed under a standard set by Russia's state standards agency Rosstandart. The trading sources said they track the quality via documents that accompany cargos of crude pumped from Russia.

The worsening of Urals quality has dampened its price and prompted buyers to think about the possibility of reducing the volumes they buy, according to the traders and sources close to European refineries.
MRC