New economies and advanced technology are driving paradigm shift in global energy demand

MOSCOW (MRC) --The historic shift in energy use, from West to East, coupled with the rapid adoption of advanced technologies, are creating new challenges and opportunities for the global oil and gas industry as it changes gear to meet the growing energy demand from the high-growth economies of Asia, according to H.E. Dr. Sultan Al Jaber, said Hydrocarbonprocessing.

Speaking at the panel session titled ‘Energy Challenges in the New Economies’, at the inaugural Bloomberg New Economy Forum (NEF) in Singapore, of which ADNOC is a Founding Partner, H.E. Dr. Al Jaber highlighted the evolving energy demand will be driven by the rapid growth of the middle class in Asia over the next few years. India’s middle class will shortly exceed 500 million – twice the population of the entire United States, and China’s middle class is expected to grow to 750 million by 2025.

Commenting alongside Aliko Dangote, President and Chief Executive, Dangote Industries Limited and Darren M. Woods, Chairman and Chief Executive Officer of ExxonMobil, H.E. Dr. Al Jaber said as the global economy continues to expand, the world is witnessing unprecedented demand for energy. He also noted that in the evolving energy landscape, the industry must find innovative ways to ensure a reliable, equitable and sustainable supply of energy and energy-based products to new economy markets.

"The goals of the New Economy Forum are in line with the UAE’s 2071 strategy to prepare for the future and capture the opportunities that lie ahead. It also aligns with the UAE’s vision for building bridges, connecting global economies, and enabling sustainable prosperity," H.E. Dr. Al Jaber said.

"Energy demand is growing globally, but demand in Asia is growing over twice as fast as the rest of the world. Oil and gas will play a fundamental role as part of a diversified energy mix. And ADNOC is stepping up to ensure it continues to be a trusted and reliable supplier of oil and gas to meet the increasing demand from growing economies."

H.E. Dr. Al Jaber noted that Abu Dhabi’s recent concession agreements with both India and China, two economic powerhouses that are redrawing the global energy map, demonstrate the historic shift taking place toward the New Economies of the East. He also highlighted the rapid advance of digital technologies, such as Artificial Intelligence, Big Data, and Blockchain, canl transform the oil and gas industry’s ability to respond to this step change in global energy demand.

"The world around us is transforming at an unprecedented rate, and we are witnessing a revolution in digitization. The UAE recognizes digital technology is a game changer that can positively shape societies, lift economies and transform the potential of all people. At ADNOC we are leveraging the latest technology, artificial intelligence, and big data to empower our thinking and propel our business forward."

Bloomberg’s New Economy Forum has convened 400 preeminent leaders to begin seeking private sector-led solutions to challenges created by a world economy in transition, increasingly led by China and India as well as rising powers in Africa, the Middle East, and Latin America.
MRC

Trinseo reduced November PS prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced price decrease for all polystyrene (PS) grades in Europe, as per the company's press release.

Effective November 1, 2018, or as existing contract terms allow, the contract and spot prices for the products listed below were reduced as follows:

- STYRON general purpose polystyrene grades (GPPS) - by EUR80 per metric ton;
- STYRON and STYRON A-Tech high impact polystyrene grades (HIPS) - by EUR80 per metric ton.

As MRC informed before, Trinseo last adjusted its prices for all PS, acrylonitrile-butadiene-styrene (ABS) and acrylonitrile styrene copolymer (SAN) grades on 1 September 2018. Thus, September prices for the said products rose, as stated below:

- STYRON GPPS grades - by EUR85 per metric ton;
- STYRON and STYRON A-Tech HIPS grades - by EUR85 per metric ton;
- MAGNUM ABS resins - by EUR60 per metric ton;
- TYRIL SAN resins - by EUR60 per metric ton.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.4 billion in net sales in 2017, with 16 manufacturing sites around the world, and approximately 2,200 employees.
MRC

CPC & Pertamina signed MoU to build new naphtha cracker

MOSCOW (MRC) -- CPC Corp. of Taiwan and Indonesia's PT Pertamina have signed a memorandum of understanding (MoU) to set up a new naphtha cracker in Indonesia, reported Apic-online with reference to the Taipei Times, citing CPC Chairman Tai Chein.

The project, expected to cost USD6.47-billion, would in-volve the production of almost 1-million t/y of ethylene, meeting local demand. Investment plans are expected to begin to "take shape" in the middle of 2019, Tai noted.

CPC has begun feasibility studies and is considering one of five sites proposed by the Indonesian govern-ment. In addition, the government is offering an incentive package for petrochemical projects, which waives all corporate income taxes for the first 20 years and then provides a 50% tax cut for the following two years.

The partners would each have a 45% interest in the plant, with the remaining 10% to be held by Taiwanese and foreign petrochemical investors.

As MRC wrote before, in early December 2017, CPC Corporation resumed operations at its residue fluid catalytic cracker (RFCC) unit in Dalin following a turnaround. The unit was shut for maintenance in mid-September 2017. Located at Dalin in Kaohsiung, Taiwan, the RFCC has a production capacity of 400,000 mt/year.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC

Saras invests in new bunkering terminal ahead of IMO switch

MOSCOW (MRC) - Italian refiner Saras is constructing a ship-refueling terminal at its Sardinia plant and will market a new, cleaner marine fuel ahead of a major regulatory change in 2020, its chief executive told Reuters.

From January 2020, the International Maritime Organization (IMO) will ban ships from using fuels with a sulfur content above 0.5 percent, compared with 3.5 percent now, in one of the biggest changes in the oil market in decades.

Refineries around the world have been gearing up for the switch by reducing output of high-sulfur fuel and upgrading plants to maximize production of the cleaner, more expensive fuel, which is similar to diesel.

Saras is investing in infrastructure that will allow ships to dock outside its 300,000-barrels-per-day Sarroch refinery in Sardinia to directly load ultra-low-sulfur marine fuel oil (ULSFO), in what is known as bunkering, CEO Dario Scaffardi said.

"Today, bunkering is based mainly on blending. In the Mediterranean you have Malta, where people bring different fuels and blend it. With the new specs, this (blending) will be very difficult to achieve for technical reasons so people like us, who will be able to produce directly the new fuel, will have the competitive advantage," Scaffardi said. "With a small investment, we will have bunkering infrastructure and a lightering vessel and start selling locally fuels to expand the market."

The company did not disclose the size of the investment. Saras, one of Europe's most modern refineries which also has a trading desk in Geneva, is developing its own ULSFO that the company will start marketing directly to shippers. The plant will initially produce 500,000 to 600,000 tons of ULSFO per year, he said.
MRC

Celanese implemented sales control measures for polyacetal product deliveries

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has announced it is implementing sales control measures in the European, Americas and Asia regions for its polyoxymethylene (POM) engineered materials product, including all grades and specifications, as per the company's press release.

Factors impacting the company's ability to meet POM product demand include: Rhine river levels are at the lowest on record, restricting the supply of key raw materials into the company's Industriepark Hochst (IPH) facility in Frankfurt, Germany, the largest POM unit in the world; a series of required turnarounds at Celanese-owned and co-supplier POM units.

While any existing placed order is acknowledged, future POM orders could be subject to adjustment or denial.

As MRC informed previously, Celanese Corporation has increase October list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas. The price increases below were effective for orders shipped on or after October 1, 2018, or as contracts otherwise allow, and were incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by EUR50/mt - for Europe, Middle East & Africa;
- by USD0.03/lb - for the USA and Canada:
- by USD65/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.
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