Lukoil starts bitumen production in Perm

MOSCOW (MRC) -- LUKOIL has commenced production of road bitumen at its Perm refinery. The product complies with the new national standard requiring extended life and advanced durability of materials, as per Hydrocarbonprocessing.

The earlier commissioned railway overpass for the discharge of fuel oils ensures an efficient utilization rate of the petroleum-residue recycling plant and of bitumen production capacities, the latter amounting to 2,400 metric tons a day.

LUKOIL Lubricants Company, a wholly-owned subsidiary responsible for the marketing of lubricants and asphaltic products, will undertake the shipment and marketing of these products of the Perm refinery.

As MRC informed earlier, in February 2017, LUKOIL sold Ukrainian plant Karpatneftekhim. Then, the Antimonopoly Committee gave permission for the purchase of a 75% stake in Lukoil Chemical B.V. (Netherlands), which owned 100% of LLC "Karpatneftekhim" (Kalush, Ivano-Frankivsk region).

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. The Lukoil structure includes one of the largest Russian petrochemical plant - Stavrolen.
MRC

MOSCOW (MRC) -- Brazil's antitrust regulator laid out a plan to increase competition in the fuels market, which could lower prices in the medium term after a spike that sparked a week-long strike by truckers which roiled Latin America's largest economy, reported Reuters.

In a study, the economic department of the Cade regulator and its technical body laid out nine measures that it says could boost competition in a sector often accused of collusion.

The proposal includes changes to the tax code and the regulatory framework, such as lifting a ban on direct sales of ethanol from producers to gasoline stations, allowing refineries and distributors to own gas stations and distributors to import fuels.

Cade and Brazil's oil regulator ANP will set up a working group this week, comprising three representatives from each watchdog, to assess the implementation of the nine measures.

The plan should decrease local fuel prices in the medium term, the study said, in effect providing a new response to growing calls for government measures to offset rising global prices.

The government on Sunday agreed to introduce fuel subsidies and tax cuts as striking truckers demanded. But so far, officials have resisted demands to change state-controlled oil company Petroleo Brasileiro SA's pricing policy that takes global prices as a benchmark.

Cade's board will meet later on Tuesday to discuss potential actions related to the fuel crisis.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, will increase list and off-list selling prices for Vinyl Acetate Ethylene (EVA) emulsions and copolymers of Vinyl Acetate Monomer (VAM) and EVA for the USA, Canada and the countries of South America, as per the company's press release.

The price increases below will be effective for orders shipped on or after June 1, 2018, or as contracts otherwise allow.

- EVA - by 5%;
- VAM Homopolymers (PVAC) - by 5%;
- VAM Copolymers - by 5%;
- Pure Acrylics - by 5%;
- Styrene Acrylics - by 5%.

As MRC informed previously, the company also raises June list and off-list selling prices for VAM sold in Europe, Middle East, Africa and the Americas, as stated below:

- by EUR150/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD150/mt - for Mexico & South America.

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. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC

MOSCOW (MRC) -- PPG COMEX has announced that it has completed a USD1.8 million investment at a new distribution center in Chihuahua, Mexico, as per TaiwanNews.

The 49,000 square foot (4,600 square meter) facility located in the northern part of Mexico will be utilized for more than 15,000 unique paint and coatings products. It is the brand’s seventh distribution center in the country.

Located in the Chihuahua Industrial Complex, the center serves more than 125 PPG Comex stores located in the cities of Bocoyna, Camargo, Chihuahua, Cuauhtemoc, Delicias, Guerrero, Hidalgo del Parral, Jimenez, Juarez, Madera, Meoqui, Ojinaga and Santa Isabel. Its central location reduces transportation time to the stores by up to 85 percent, helping PPG Comex meet its promise to fulfill orders from each of its nearly 4,500 stores in Mexico within 24 hours.

"Chihuahua, which is the fifth largest economy in the country, has maintained double-digit growth over the past three years and represents a strategic opportunity for PPG," said Henrik Bergstrom, president, PPG Comex. "With this new center, we have consolidated our distribution strategy to move 1.3 million gallons of paint daily within Mexico so we can better serve our customers."

Bergstrom indicated that PPG Comex will continue to strengthen its position as one of the largest retailers in Mexico, facilitating the renovation of 160,000 homes each day. Joining PPG Comex leaders at the center’s inauguration were representatives from the Chihuahua state government.

"We provide the latest paint and coatings technologies to protect and beautify, and we offer the highest level of professional and technical support to ensure our customers are fully satisfied," Bergstrom said.

PPG Comex employs approximately 4,500 people in Mexico at its company-owned stores, six manufacturing facilities, four training centers and three research centers. It is a leader in the manufacture, marketing and distribution of decorative paints, waterproofing products, wood care products, industrial coatings and accessories. The brand is celebrating its 65 th anniversary in 2018.

As MRC wrote previously, in November 2016, PPG announced that it had reached an agreement with the Emerging Europe Accession Fund (EEAF) to acquire DEUTEK S.A., a leading Romanian paint and architectural coatings manufacturer.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world.
MRC

MOSCOW (MRC) -- A 72-hour strike by Brazilian oil workers halted refineries and rigs on Wednesday, union leaders said, a new blow to President Michel Temer on the heels of a trucker protest that has strangled Latin America’s largest economy for over a week, reported Reuters.

The strike by workers demanding changes at state-led oil firm Petroleo Brasileiro SA is the latest challenge for the company known as Petrobras, whose shares have tumbled nearly 30 percent in two weeks over fears that political interference would unwind recent investor-focused policies.

The economic and political storm has shaken the lame duck Temer government ahead of October elections and rattled nerves about the path forward for Petrobras, Latin America’s biggest oil producer.

It has also raised the spectre of protests spreading to more sectors as Brazilians vent frustration with the unpopular government and an uneven economic recovery.

With truckers protesting over high diesel prices, government sources told Reuters on Tuesday that Temer had been considering scrapping a market-based fuel pricing policy at Petrobras. But by Wednesday morning the president’s office issued a statement saying he would preserve the policy.

Petrobras said before the strike that the disruptions would not have an immediate major impact on its output or overall operations. Brazil produces about 2.1 million barrels of oil per day.

According to a source close to the company, Petrobras has a significant stock of fuel on hand, especially as the 10-day trucker protest prevented significant amounts of fuel from leaving refineries.

The truckers’ roadblocks and resulting fuel shortages have halted major industries and hammered exports of everything from beef and soybeans to coffee and cars.

Steelmaker Cia Siderurgica Nacional SA, Brazil’s second-largest iron ore exporter, declared force majeure for its mining products due to disrupted supplies of diesel, explosives and food to it mines.

The 10-day trucker protest left major cities running short on food, gasoline and medical supplies, and officials warned it would take days to restore supply lines.

FUP union said workers did not show up to work on Wednesday at 10 refineries stretching from Manaus in the Amazon to Rio de Janeiro in the southeast. They also walked off the job at plants handling lubricants, nitrogen and shale gas, as well as in the ports of Suape and Paranagua.

The oil strike was declared illegal by Brazil’s top labour court late Tuesday, after Petrobras argued it was about politics rather than labour issues. FUP leader Jose Maria Rangel said by phone that the union "will not be intimidated" by judicial decisions, and called the three-day strike a "warning."

Unions representing oil workers said they were demanding the resignation of Petrobras’ chief executive, Pedro Parente. They also want the end of the market-based fuel pricing policy and other changes made at Petrobras since Temer took power in 2016.

Petrobras said on Wednesday that board member Jose Alberto de Paula Torres Lima had resigned, citing "personal reasons." He was one of three board members recruited by an outside agency and added to the board in April in an effort to establish its independence.

Petrobras did not respond to questions about his departure.
MRC