Saudi Aramco becomes full owner of ARLANXEO

MOSCOW (MRC) -- Saudi Aramco, a world-leading integrated energy and chemicals company, and Lanxes AG, a leading German specialty chemicals company, have announced the completion of Saudi Aramco’s acquisition of Lanxess‘ interest in ARLANXEO Holding B.V., a Netherlands-based specialty chemicals joint venture between Saudi Aramco and Lanxess launched in 2016, as per Saudi Aramco's press release.

All relevant authorities have granted approvals for the transaction which was first announced in August 2018.

Saudi Aramco’s purchase of Lanxess' 50% share in ARLANXEO, valued at EUR1.5 billion on an enterprise value basis, makes it 100% owner of ARLANXEO, enabling further diversification of Saudi Aramco’s downstream portfolio, and strengthening the company’s capabilities across the energy and chemicals value-chain.

ARLANXEO is a world-class synthetic rubber and elastomer products company that supplies feedstocks to leading tire and auto-parts manufacturers around the globe. As a fully owned subsidiary of Saudi Aramco, ARLANXEO will accelerate development of growth opportunities integrating the strong feedstock position of Saudi Aramco.

In addition, full ownership of ARLANXEO will enhance Saudi Aramco’s sustainability efforts to optimize tire performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions. All of these efforts are well-aligned with Saudi Aramco’s overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams.

Abdulaziz Al-Judaimi, Saudi Aramco Senior Vice President of Downstream, commented on the acquisition by saying: "ARLANXEO, now as a 100% owned Saudi Aramco subsidiary, represents an essential component to our global position in the chemicals market. Full ownership of ARLANXEO will further diversify Saudi Aramco’s downstream portfolio and strengthen capabilities along the energy and chemicals value chains. I am positive about the upside and the future of product innovation that will serve our customers around the world."

As a wholly-owned subsidiary of Saudi Aramco, ARLANXEO will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries. ARLANXEO will maintain its current base in Maastricht, the Netherlands.

As MRC wrote before, in March 2018, Arlanxeo signed an agreement with Saudi Aramco Products Trading company, headquartered in Dhahran, the Kingdom of Saudi Arabia, pertaining to the marketing and sales of EPDM rubber.

Arlanxeo was established in April 2016 as a joint venture of Lanxess - a world-leading specialty chemicals company based in Cologne, Germany - and Saudi Aramco - a major global energy and chemicals enterprise headquartered in Dhahran, Saudi Arabia. The two partners each hold a 50-percent interest in the joint venture. The business operations of Arlanxeo are assigned to the High Performance Elastomers and Tire & Specialty Rubbers business units.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

Rliance resumes production at Hazira PVC plant

MOSCOW (MRC) -- Reliance Industries Ltd (RIL) has restarted its polyvinyl chloride (PVC) plant following an unplanned outage, as per Apic-online.

A Polymerupdate source in India informed that the company has resumed operations at the plant early this week. The plant was shut owing to technical issues on December 18, 2018.

Located at Hazira in the western Indian state of Gujarat, the plant has a production capacity of 360,000 mt/year.

As MRC informed earlier, RIL took off-stream its another PVC plant in Dahej for a maintenance turnaround last year. The company commenced turnaround in the first half of November 2018. The plant remained under maintenance for about two weeks. Located at Dahej in Gujarat, India, the plant has a production capacity of 315,000 mt/year.

Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.
MRC

Trinseo raises January 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 a price increase for all polystyrene (PS) grades in January, as per the company's press release.

Effective January 1, 2019, or as existing contract terms allow, the contract and spot prices for the products listed below grew as follows:

- STYRON general purpose polystyrene grades (GPPS) - by EUR15 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR15 per metric ton.

As MRC informed before, Trinseo last reduced its prices for all PS grades on 1 December 2018. Thus, December prices for the said products decreased, as stated below:

- STYRON GPPS grades - by EUR120 per metric ton;
- STYRON and STYRON A-Tech HIPS grades - by EUR120 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

Worlds largest refining company forecasts 50 pct jump in 2018 profit

MOSCOW (MRC) -- China Petrochemical Corp. (Sinopec Group), the world's largest refining company, forecasts that its 2018 profit jumped over 50 percent on the back of lower costs and rising sales as the group improved efficiency despite a tough economic environment, as per Hydrocarbonprocessing.

Sinopec, whose mission is to "provide energy for better life", achieved the stellar performance with an unwavering commitment to high quality and a focus on deepening supply-side reforms. Sinopec made big strides in 2018 in expanding market share both at home and abroad. In the domestic oil & gas exploration and production business, Sinopec stabilized and revived the upstream production of crude oil, and effectively scaled up production of natural gas, while slashing the total cost of production per unit through improved efficiency. Domestic sales of oil products also increased amid fierce competition as the group enhanced collaboration between production and sales segments.

Chemicals marketing volume also rose from the previous year as the group deepened integration between production, marketing, research and application, while fine-tuning services to meet customers' individual needs. The group also aggressively expanded sales of refined oil, which exceeded 40 million tonnes for the first time and total sales of lubricant rose 5 percent from last year; of which high-end products jumped 10 percent.

The group also strove to meet diversified demands for chemical feedstock and oil products at home, and overseas with an expansion in exports. In its overseas oil & gas business, Sinopec reinforced cost control in managing existing upstream portfolios, and actively pushed ahead with asset disposals, resulting in a continuous reduction in the group's overseas cash operating cost per barrel.

In its oil refining business, Sinopec maintained strong sales momentum as the group enhanced coordination between production and marketing, while vigorously optimizing product slate based on market conditions and profitability. Diesel to gasoline ratio was lowered to 1.06, as the group completed quality upgrading of the fuel.

In the chemicals production and operation segment, Sinopec capitalized on favorable market conditions to boost efficiency, by closely integrating production with sales, and speeding up adjustment of product slate. The cost of producing each tonne of ethylene continued to fall, while the proportion of synthetic chemical products with high added value continued to rise.

In the field of natural gas, Sinopec strengthened coordination between self-produced gas and imported LNG (Liquified Natural Gas) and accelerated the pace of entering the end user market by building pipelines and LNG receiving facilities.

Good progress was also made in the petroleum engineering services segment. The value of newly-signed domestic and overseas contracts rose from a year earlier as the group further consolidated the business and disposed of loss-making projects. In refining and petrochemical engineering services, Sinopec optimized its business structure and increased contract sales by expanding into new markets, including areas along China's milestone "Belt and Road" initiative.
MRC

Indias BPCL to buy Iranian oil after 3-month gap

MOSCOW (MRC) - State-run Bharat Petroleum Corp will import 1 million barrels of Iranian oil in February after a gap of three months, with the nation's overall purchases from Tehran remaining at 9 million barrels, three industry sources said, as pe Reuters.

The United States in early November granted India a six-month waiver from sanctions on Iran's oil exports. Under the agreement, New Delhi must restrict its Iranian oil purchases to 1.25 million tonnes, or 9 million barrels.

BPCL and Hindustan Petroleum Corp will lift 1 million barrels each of Iranian crude oil in February, the sources said. HPCL this month resumed purchases of Iranian oil after a gap of six months. The company halted Iranian oil purchases in July after its insurance company refused to provide cover for the crude because of U.S. sanctions, although its chairman said HPCL may resume buying Iranian oil under sanctions waivers.

Indian Oil Corp, the country's top refiner, will lift 5 million barrels of Iranian oil in February, the same as this month. Mangalore Petrochemicals Ltd will buy 2 million barrels compared with 3 million barrels this month, the sources said.

An IOC official had previously said his firm would lift 180,000 bpd - the full volume contracted under an annual deal with Iran for this fiscal year ending March 31, 2019.

India recently exempted rupee payments to the National Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax, paving way for pending dues to be cleared.

HPCL, IOC and BPCL did not immediately respond to requests for comment, while MRPL declined comment.
MRC