CNPC completes upgrade at Kazakh Shymkent refinery

MOSCOW (MRC) -- China’s state energy group China National Petroleum Corp (CNPC) has completed an upgrade at Kazakhstan’s Shymkent refinery, in which it has a stake, allowing the plant to produce higher quality fuels, as per Hydrocarbonprocessing with reference to the company's statement.

CNPC started test runs early in August on a 2 million tonne-per-year catalytic cracking unit at the Shymkent plant, one of three refineries operating in the Central Asian nation.

The upgrade, which includes an isomerisation unit that started in June last year, raises the plant’s fuel quality to Euro IV and V from the previous Euro II.

Shymkent, in southern Kazakhstan, is half owned by Kazakh state oil and gas company KazMunaiGas and half by PetroKazakhstan, a joint venture of KazMunaiGas and CNPC.

We remind that, as MRC informed previously, in early August 2018, Honeywell announced that Jizzakh Petroleum JV LLC would use Honeywell UOP technologies to build a new refinery capable of processing 5 million tons per year of crude oil to produce clean-burning gasoline, diesel and jet fuel. The refinery is being built in the Jizzakh region of Eastern Uzbekistan.
MRC

MOSCOW (MRC) -- There was a shortage of some low density polyethylene (LDPE) grades in the Russian market in August, which led to a price rise. The shortage of LDPE will remain in September, according to ICIS-MRC Price report.

There was a major surplus of LDPE, which put pressure on prices, in the Russian market in the first half of the year. The market situation changed in July due to scheduled shutdowns for maintenance at three plants simultaneously, from surplus, the market became deficient in some segments. LDPE prices began to go up in July on the back of tight supply, the upward price trend continued in August.

In early July, Gazprom neftekhim Salavat and Angarsk Polymers Plant, whose capacities are 45,000 and 80,000 tonnes per year, respectively, shut down their LDPE production capacities for scheduled turnarounds. Tomskneftekhim took off-stream its production for maintenance in the middle of the month, the plant's capacity reaches 240,000 tonnes per year. Kazanorgsintez reduced its LDPE capacity utilisation because of a shortage of ethylene.

At the same time, the simultaneous outages at three plants affected only the balance of the cheap LDPE segment (108 grade). By early August, the bulk of supply of 108 grade polyethylene (PE) in the market was from Ufaorgsintez, and prices started on average from Rb86,000/tonne FCA Ufa, including VAT.

In mid-August, Angarsk Polymers Plant's LDPE offer prices appeared in the market; on average, prices started from Rb82,000/tonne FCA, including VAT. But because of technical issues, the resumption of PE production in Angarsk after maintenance had begun only by the beginning of the current week. And many sellers said they had already sold out all their August quotas.

Ufaorgsintez will shut its production capacities for a one-month turnaround in early September. Kazanorgsintez will also still have restrictions on LDPE production, and the Kazan producer will take off-stream some of its production capacities for a 24-day maintenance on 26 September.

Thus, supply of 108 grade LDPE will remain tight in the Russian market in September, which may put pressure on prices.
MRC

MOSCOW (MRC) -- A fire which broke out at a Shell-owned chemical plant on the same site as Essar Oil UK’s Stanlow refinery in northwestern England has been extinguished, reported Reuters.

Essar said that operations at its refinery were unaffected by the fire, the cause of which is currently unclear.

The Shell Higher Olefins Plant (SHOP) is separated from the refinery by a road and rail tracks. Essar operates the chemical plant as well as the refinery.

"Earlier this afternoon, a fire occurred at the SHOP chemical plant," an Essar spokesman said. The fire was extinguished later on Wednesday, he added.

"Operations and production of fuels and other products from Stanlow Refinery have not been affected. All supplies to customers are normal," the spokesman said, adding all staff were safe and accounted for.

At Stanlow, Shell uses ethylene to manufacture polymer, lubricant and detergent intermediates, plasticisers and detergent alcohols, according to its website. Shell was not immediately available for comment.

Earlier on Wednesday, fire engines from five different locations were sent to the 200,000 barrel per day oil refinery.

"There was a report of a large plume of black smoke. We have several pumps at the scene," a spokeswoman for the Cheshire fire service said. In a statement, the service said engines from five locations were on the scene.

Essar Oil UK, owned by the Indian billionaire Ruia brothers’ Essar Group, bought the refinery near Ellesmere Port from Shell in 2011. Around 900 people work at the refinery, according to its website.

"The site produces a range of oil products including about one sixth of Britain’s transport fuels annually - about 4.4 billion litres of diesel, 3 billion litres of petrol and 2 billion litres of jet fuel," Essar Oil UK’s website said.

We remind that, as MRC wrote earlier, in January 2018, Royal Dutch Shell plc (Shell) announced a final investment decision on the redevelopment of the Penguins oil and gas field in the UK North Sea. The decision authorizes the construction of a floating production, storage and offloading (FPSO) vessel, the first new manned installation for Shell in the northern North Sea in almost 30 years. The redevelopment is an attractive opportunity with a competitive go-forward break-even price below USD40 per barrel. The FPSO is expected to have a peak production (100%) of circa 45,000 boe/d.

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
MRC

MOSCOW (MRC) -- Venezuela’s state-run PDVSA reported no damage to its refineries or oil operations at the country’s main producing region, the Orinoco Belt, from a 7.3-magnitude quake that shook the nation’s northeastern coast, two sources from the state-run firm told Reuters.

PDVSA’s facilities at its Eastern division were working normally as well, the sources added.

As MRC reported earlier, in the first week of August 2018, the Venezuelan-run 335,000-barrel-per-day (bpd) Isla refinery in Curacao was down after an operational problem triggered a blackout.

We also remind that Curacao’s Isla refinery is considering offers from 15 companies interested in temporarily operating the 335,000-barrel-per-day facility to replace the current operator, Venezuela’s ailing PDVSA state oil company, the refinery and the Curacao government said in a joint statement in late July 2018.
MRC

MOSCOW (MRC) -- Fire engines were sent to Essar Oil UK’s 200,000 barrel per day oil refinery in northwest England after smoke was spotted, although the scale of the fire was unclear, reported Hydrocarbonprocessing with reference to a local fire service spokeswoman.

"There was a report of a large plume of black smoke. We have several pumps at the scene," a spokeswoman for the Cheshire fire service said. In a statement, the service said engines from five locations were on the scene.

She added there had been no reports of casualties. Essar was not immediately available for comment.

"Firefighters have been called to reports of a fire at Stanlow Oil Refinery... All staff have been accounted for and have been evacuated," the fire service said in a statement on its website.

Local news outlets reported witnesses said they saw a large flash and a fireball explosion.

Local fire crews were working with onsite firefighters to extinguish the fire which is believed to be in a manufacturing building within the plant, the fire service said.

Refinery monitor Genscape said all units at Stanlow were currently online.

Essar Oil UK, owned by the Indian billionaire Ruia brothers’ Essar Group, bought the refinery near Ellesmere Port from Shell in 2011. Around 900 people work at the refinery, according to its website.

"The site produces a range of oil products including about one-sixth of Britain’s transport fuels annually - about 4.4 billion liters of diesel, 3 billion liters of petrol and 2 billion liters of jet fuel," Essar Oil UK’s website said.

Last September, Essar Oil UK said it expected a US250-million upgrade of the refinery to improve its basic profit margin by USD1 a barrel as it will be able to process a greater variety of cheaper crude oils and raise output.

As MRC wrote previously, in 2015, Russian oil major Rosneft signed a preliminary agreement with the Essar group, controlled by the Ruias, to buy a 49% stake in Essar Oil’s Vadinar refinery and supply 100 million tonnes of oil to the latter for the next 10 years.
MRC