Orpic Logistics Company inaugurated the Muscat-Sohar pipeline & the Al Jefnain terminal in Oman

MOSCOW (MRC) -- Orpic Logistics Company (OLC), a joint venture created by Compania Logistica de Hidrocarburos (CLH) and Oman Oil Refineries and Petroleum Industries (Orpic), has inaugurated the Muscat-Sohar pipeline and the Al Jefnain terminal in Oman, as per Hydrocarbonprocessing.

This pipeline, into which 336 million dollars have been invested, represents a key logistics infrastructure, allowing more than 50% of the country’s fuel to be transported and contributing to improved road safety and greater efficiency and sustainability by reducing the number of road tankers in and around the capital, Muscat.

The MSPP Project (Muscat Sohar Product Pipeline) is a multi-product, bi-directional pipeline that uses 290 kilometers of pipelines to connect the Mina Al Fahal and Sohar Orpic refineries to the Al Jefnain storage and distribution facility, as well as to Muscat International airport, which receives aviation fuel directly via pipeline.

In his speech, the CEO of CLH, Jorge Lanza, thanked ORPIC for the opportunity to participate in this project in Oman and stressed that "we have proven to ourselves, and to the industry, that we have cutting-edge experience and are able to develop successfully in new countries and environments such as Oman. The MSPP project is a significant milestone in the history of our company and we believe that it will open doors to new opportunities. CLH is committed to the development of the economy and talent of Oman, and we hope to continue to undertake more projects together, both in Oman and the surrounding area".

The Vice President of Orpic, H.E. Sultan bin Salim Al Habsi, said "We are proud to inaugurate such an important strategic project as the Muscat Sohar Product Pipeline (MSPP) and the Al Jefnain terminal. This project responds to the government’s strategic goals for the development of logistics systems for petroleum products in the Sultanate which will cover the growing demand for fuels."

The MSPP pipeline is divided into three sections: from the Mina Al Fahal refinery to the facility in Al Jefnain, measuring 45 km (10 inches); from the Sohar refinery to the Al Jefnain facility, measuring 220 km (18 inches), and a third branch that goes from the Al Jefnain facility to Muscat International Airport, measuring 25 km (10 inches). In addition, this new network has satellite control systems and advanced safety and environmental protection.

On the other hand, the Al Jefnain storage facility, located in the vicinity of Muscat, is a center for storage and distribution of petroleum products with a capacity of more than 170,000 cubic meters and 16 loading racks. At this facility, an average of 700 trucks are loaded every day, carrying fuel to service stations. This new infrastructure increases the country’s refined products storage capacity by 70%.

As MRC informed before, in March 2017, Oman Refineries and Petroleum Industries Company (Orpic) announced plans to raise capacity of its polypropylene (PP) plant to 340,000 tpa of high quality PP from 200,000 tpa.

ORPIC (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

A. Schulman, Citadel trial opens in Delaware

MOSCOW (MRC) -- A trial pitting materials firm A. Schulman Inc. against Citadel Plastic Holdings LLC began April 16 in Delaware Chancery Court in Wilmington, Del., as per Plasticsnews.

A spokesperson for Fairlawn, Ohio-based Schulman confirmed that the trial is underway but had no further details. The firm is seeking damages related to its USD800 million acquisition of Citadel in early 2015. Issues related to the Citadel acquisition — including questions about material quality — led to financial problems at Schulman.

Schulman filed the suit in June 2016. The firm is seeking unspecified damages from former Citadel owners including Huntsman Gay Capital Partners and Charlesbank, as well as from several former Citadel executives, including Michael Huff and Matthew McDonald.

Most of Schulman's accusations center around Lucent Polymers, an Evansville, Ind.-based compounding firm that Citadel bought in late 2013. According to the original court filing, Schulman "never would have purchased, much less paid $800 million for Citadel had it know that [Lucent] was engaging in fraudulent business practices that … substantially reduced [Citadel's] profitability and growth prospects."

Schulman also has accused Citadel/Lucent of falsifying certificates of analysis given to customers that exaggerated flame retardant properties and other characteristics of the compounds that Lucent was making. "Knowledge of this pervasive fraudulent scheme … went all the way to the top," Schulman officials said in the filing. "Lucent and Citadel officers and directors knew of and condoned these wrongful practices."

Judge J. Travis Laster is hearing the case. Schulman is being represented by Wilmington lawyer Paul Lockwood. Legal information on Citadel was unavailable on the court's web site. In February, Schulman agreed to be acquired by LyondellBasell Industries for USD2.25 billion.

Separately, Schulman officials in January said that federal officials are undertaking a criminal investigation related to the lawsuit. In a Jan. 9 earnings call, Schulman President and CEO Joseph Gingo said the FBI has identified Schulman as a possible crime victim.

A November court ruling said that several former Citadel employees in October were served with subpoenas requiring them to produce documents as part of the FBI investigation. Those former employees included executives Huff, McDonald, Kevin Andrews, Jason Jimerson and Mario Sandoval.

Schulman posted sales of almost USD2.5 billion for fiscal 2017. The firm ranks as a leading compounder and concentrates maker in both North America and Europe and as one of Europe's leading resin distributors.
MRC

PP imports to Russia rose by 28% in Q1 2018

MOSCOW (MRC) - Russia's imports of polypropylene (PP) slightly exceeded 45,000 tonnes in first three months of this year, up 28% year on year, compared to the same period of 2017. Supply of all grades of PP increased, according to a MRC's DataScope report.

Russian companies increased volumes PP imports in March, which reached 16,400 tonnes against 14,200 tonnes in February; shipments of propylene homopolymers (homopolymer PP) and block copolymers of propylene (PP block copolymer) increased. In general, PP imports into Russia exceeded 45,000 tonnes in January-March 2018, compared with 35,100 tonnes year on year. The import for all grades of propylene polymers increased, the greatest increase in supplies accounted on homopolymer PP.

Overall, the structure of PP imports by grades looked the following way over the stated period.
March imports of homopolymer PP grew to 6,000 tonnes against 4,600 tonnes a month earlier, shipments of homopolymer PP raffia from Uzbekistan and Turkmenistan increased. Overall imports of homopolymer PP reached 15,500 tonnes in the first three months of 2018, compared to 10,700 a year earlier.

March imports of PP block copolymers in Russia decreased to about 4,300 tonnes against 3,200 tonnes in February. Local companies increased purchasing of PP block copolymers for extrusion pipes in Europe. Imports of PP block copolymers into Russia rose to 11,200 tonnes in January-March 2018, compared to 10,800 tonnes a year earlier.

March imports of PP random copolymers remained in the level of February at about 2,500 tonnes. Total imports of PP random copolymers in Russia were 7,700 tonnes in January - March 2018, compared with 6,500 tonnes year on year. The greatest increase in supply accounted for pipe propylene copolymers.

Imports of other propylene polymers for the reported period increased to about 10,600 tonnes compared with 7,100 tonnes in the same time a year earlier.


MRC

Iran oil arrives in Gdansk as Poland diversifies supplies

MOSCOW (MRC) - Poland's biggest oil refiner PKN Orlen said that a shipment of 130,000 tonnes of Iranian crude oil has arrived at the Baltic seaport of Gdansk, as per Reuters.

Most of the oil refined in Polish refineries comes via pipelines from Russia, but state-run PKN Orlen and Lotos are increasingly buying from other sources, including Iran and the United States.

"Delivery from Iran has become a fact. Oil from the Middle East gives us many opportunities. First of all, it enables diversification of delivery directions and increases the energy security of the state," PKN said in a statement.

The Iranian oil, which is lighter than the Russian crude and contains less sulphur, will be refined at PKN’s plant at Plock, northwest of Warsaw. PKN said that earlier tests of the Iranian oil “confirmed its significant potential".

It took a month for the Delta Kanaris tanker to transport the Iranian cargo from the Kharg island to Gdansk.
MRC

LetterOne and BASF oil deal not affected by sanctions pressure

MOSCOW (MRC) -- LetterOne chairman Mikhail Fridman does not expect recent U.S. sanctions against Russian oligarchs will hamper his company’s oil deal with BASF, as per Neftegaz.

This is according to the Russian Interfax which cited Fridman as saying L1 and BASF still planned to consolidate oil assets "despite new spiral of sanctions pressure".

LetterOne and Germany’s BASF in December 2017 signed a letter of intent to merge their oil and gas businesses into a joint venture named Wintershall DEA. Closing could be expected in the second half of 2018.

Lord Browne, former BP CEO, and currently the Executive Chairman of L1 Energy and Chairman of the Supervisory Board of DEA said the deal would make Wintershall DEA will be one of Europe’s largest independent E&P Companies.

As for the sanctions, the U.S. Treasury Department last Friday designated Russian oligarchs and officials. Among the notable oligarchs designated in the U.S. Treasury list are energy industry names such as Oleg Deripaska, Suleiman Kerimov, and Kirill Shamalov. Gazprom’s head Alexey Miller is also on the list but as a Designated Russian Government Official.

Additionally, non-U.S. persons could face sanctions for knowingly facilitating significant transactions for or on behalf of the individuals or entities blocked today, the U.S. Treasury said on Friday, April 6.

LetterOne’s Mikhail Fridman is not on this list.
MRC