PP imports to Belarus rose by 7.5% in Jan-Jul 2018

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into Belarus grew in the first seven months of 2018 by 7.5% year on year, totalling slightly over 58,300 tonnes. Demand increased for all grades of propylene polymers, according to MRC's DataScope report.

July PP imports into Belarus were 8,800 tonnes, compared to 8,400 tonnes a month earlier, local companies raised their purchasing of injection moulding propylene copolymers in Russia. Overall imports of propylene polymers reached 58,300 tonnes in January-July 2018, compared to 54,200 tonnes a year earlier, with propylene copolymers accounting for the greatest increase in demand.

The supply structure by PP grades looked the following way over the stated period.


July imports of homopolymers of propylene (homopolymer PP) to the Belarusian market dropped to 5,700 tonnes from 6,000 tonnes a month earlier, local companies reduced their purchases of homopolymer PP raffia in Russia. Overall imports of homopolymer PP reached 39,300 tonnes in the first seven months of 2018, up by 5.6% year on year. Russian producers with the share of about 89% of the total shipments were the key suppliers.

July imports of propylene copolymers to Belarus were 3,100 tonnes versus 2,300 tonnes a month earlier, local companies increased their procurement of injection moulding statistical copolymers (PP random copolymers) in Russia. Thus, overall imports of propylene copolymers reached 19,000 tonnes in January-July 2018, whereas this figure was 17,000 tonnes a year earlier.

MRC

Ufaorgsintez shut PE and PP production

MOSCOW (Market Report) -- Ufaorgsintez (petrochemical asset of Bashneft, which is part of Rosneft) shut down the second low density polyethylene (LDPE) line and polypropylene (PP) production capacities for maintenance. The outage will be long, according to ICIS-MRC Price report.

The plant's customers said Ufaorgsintez took off-stream its second LDPE line for a scheduled turnaround on 19 September (production of 158 and 153 grade polyethylene (PE) was shut) and PP production. The outage will be quite long and will last until 12 and 19 October, respectively.

As reported earlier, the first LDPE line (108 grade PE) was already shut for a 30-day maintenance on 1 September.

Ufaorgsintez's overall LDPE and PP production capacities are about 90,000 and 120,000 tonnes per year, respectively.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low density polyethylene, polypropylene, over 30 types of petrochemical products and over 25 items of consumer products. Ufaorgsintez's net profit was Rb5.41 billion in 2017, down by 7% year on year.
MRC

Output of chemical products in Russia grew by 3.4% in January-August 2018

MOSCOW (MRC) -- Russia's output of chemical products dropped in August 2018 by 0.4% month on month.
Thus, this figure increased by 3.4% in the first eight months of the year of 2018, according to Rosstat's data.

According to the Federal Service of State Statistics, last month's production of basic chemicals decreased by 0.4% from July 2018, with ethylene accounting for the main reduction. Overall production of chemical products grew in January-August 2018 by 3.4% year on year, with benzene accounting for the greatest increase in the output.

243,000 tonnes of ethylene were produced in August versus 237,000 tonnes a month earlier, Angarsk Polymers Plant and Tomskneftekhim's production capacities were shut down for maintenance last month. 2,002 tonnes of this olefin were produced in the first eight months of 2018, up by 1.6% year on year.

Last month's production of benzene dropped to 115,000 tonnes from 117,000 tonnes in July. Overall output of this product reached 965,800 tonnes over the stated period, up by 6%year on year.

August output of sodium hydroxide (caustic soda) was 108,000 tonnes (100% of the main substance) versus 106,000 tonnes a month earlier, increase production was caused by a the resumprion of the capacities of SayanskKhimPlast. Overall production of caustic soda grew to 844,500 tonnes in January-August 2018, up by 3.6% year on year.

Last month's output of mineral fertilizers was 1.819 m tonnes (in terms of 100% nutrients) versus 1.783 m tonnes in July, Russian producers increased their production of nitrogen and potash fertilizers. Overall, Russian plants produced 13.645 m tonnes of mineral fertilizers in the first eight months of 2018, up by 2.2% year on year. Nitrogen fertilizers accounted for the greatest increase in the output - up by 6% year on year.
MRC

TNKPZ shuts PP production

MOSCOW (MRC) - Turkmenbashi complex of oil refineries (TKNPZ) intends to shut the production of polypropylene (PP) for scheduled maintenance works. The outage will be quite long, according to ICIS-MRC Price report.

Customers of the complex said, the shutdown of capacities for PP production is scheduled from 20 September, the turnaround of the production will take 20 days. The plant's annual PP production capacity is 100,000 tonnes.

The Turkmenbashi complex of oil refineries (TKNPZ) in 2017 produced 84,100 tonnes of polypropylene (PP), slightly exceeding the plan for the year (82,500 tonnes). As mentioned earlier, a new plant for the production of high density polyethylene (HDPE) and polypropylene with a total capacity of 382,000 tonnes and 86,000 tonnes, respectively, was recently launched in Turkmenistan.

As the potential customers of the enterprise reported, now there is a test run of polyolefins, and the official start-up of production is scheduled for 17 October. The first shipments from the new petrochemical complex have been already sold in early September, and recently there were deals for PP done at USD1,050/tonne, FCA.

TKNPZ produces automobile gasoline, aviation and technical kerosene, hydrotreated diesel fuel, petroleum coke, polypropylene, a wide range of technical lubricating oils, liquefied gas, road and construction bitumen. A significant part of the production of the complex is exported to Russia, Japan, Italy, Turkey, China, Iran, the United Arab Emirates, Afghanistan, Pakistan, Tajikistan, Georgia, Armenia.
MRC

Total exits Canadian Joslyn oil sands project

MOSCOW (MRC) -- Canadian Natural Resources Ltd. said Aug. 31 it will acquire full ownership in the Joslyn oil sands lease from the project’s partners for roughly CD225 million, as per OilandGasInvestor.

The price tag consists of CD100 million cash at closing plus annual cash payments of CD25 million over each of the next five years. The sellers consist of several partners led by operator Total SA.

Total said the Joslyn project partners decided to put its further development on hold following the oil price fall in 2014. Therefore, activities have since been limited to fulfilling regulatory requirements and ensuring the safety of the site.

"Reducing our exposure to Canada’s oil sands by selling this asset is in line with our global strategy to focus our oil investments on low breakeven resources and develop a resilient portfolio in the mid and long term. It is also consistent with the gradual reduction of our stake in the Fort Hills oil sands project in 2017," Patrick Pouyanne, chairman and CEO of Total, said in a statement.

The Joslyn lease is located directly south of Canadian Natural’s current Horizon oil sands mining and upgrading project in Alberta within the Athabasca region.

Canadian Natural said its acquisition of 100% working interest in the Joslyn oil sands project "adds significant value to the company’s already extensive portfolio of high-quality long life low decline assets and will allow for more effective lease-line development opportunities between the Horizon and Joslyn projects."

As MRC informed before, in December 2017, Total inaugurated the new units at its Antwerp integrated refining & petrochemicals platform, which have progressively started up in the last few months.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC