Hungary to release oil from reserves after pipeline contamination issue

MOSCOW (MRC) -- Hungary’s government will release 400,000 tonnes of crude oil from its emergency reserves to make up for lost imports via a Russian pipeline, reported Reuters with reference to state secretary Peter Kaderjak.

The oil, which will supply a refinery owned by energy firm MOL, is equivalent of about 60 percent of Hungary’s crude reserves, he told reporters, adding it was not clear when chloride in oil in the Druzhba pipeline would return to levels they were before a problem of tainted crude arose last week.

The move will supply MOL with enough crude to run its Szazhalombatta refinery for up to two months, Kaderjak said, adding that the government would replenish its reserves by the end of 2019.

As MRC wrote previously, in late April 2019, Hungarian energy group MOL temporarily suspended accepting crude oil through the Druzhba pipeline, it said adding, however, that the move did not affect its refineries.
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MOSCOW (MRC) -- The Russian energy ministry said that clean Russian crude oil meeting all quality requirements had arrived at the Mozyr refinery in Belarus, after contaminated crude led it to halt flows in the pipeline last week, said Reuters.

Belarus state oil company Belneftekhim said it had started receiving new supplies of Russian oil at its pipeline service station and was planning to start refining it on May 6.

Russia halted oil flows along the Druzhba pipeline to Eastern Europe and Germany last week after some crude was contaminated. The news lifted global oil prices to a six-month high and left refiners in Europe scrambling for supplies.

The Russia energy ministry also said the quality of oil at the Baltic Sea port of Ust-Luga was expected to return to normal on May 7.
MRC

MOSCOW (MRC) -- VYNOVA is in plans to undertake a planned shutdown at its polyvinyl chloride (PVC) plant in Wilhelmshaven, as per Apic-online.

A Polymerupdate source in Europe informed that the company has scheduled to start turnaround at the plant in May 2019 for a period of around two weeks. The exact date for the shutdown could not be ascertained.

Located at Wilhelmshaven, Germany, the PVC plant has a production capacity of 380,000 dmt/year.

As MRC reported earlier, on 17 September 2018, the company declared force-majeure on supply of caustic soda from the petrochemical complex in Tessenderlo, Belgium, because of a production glitch at another plant, located at the same site, which can produce 740,000 tonnes of vynil chloride monomer (VCM) per year. The annual capacity of the caustic soda plant is 302,000 tonnes.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increase May list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, the Middle East, Africa and Asia Outside China (AOC), as per the company's press release.

The price increases below were effective for orders shipped on or after 24 April, 2019, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by EUR100/mt - for Europe, the Middle East & Africa;
- by USD50/mt - for AOC.

Besides, Celanese increased its prices of emulsion polymers by USD25/mt for AOC and prices of acetic anhydride by EUR30/mt for Europe, the Middle East and Africa.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions and for Americas on 20 March, 2019, as follows:

- by EUR100/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada;
- by USD110/mt - for Mexico & South America;
- by USD100/mt - for AOC;
- by CNY800/mt - for China.

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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MOSCOW (MRC) - Several major Occidental Petroleum Corp shareholders have voiced opposition to the oil company's USD38 billion bid for rival Anadarko Petroleum Corp that now includes a pricey financing deal with billionaire Warren Buffett, said Reuters.

Occidental and Chevron Corp are battling for Anadarko and its holdings of nearly a quarter million acres in the Permian Basin, the top U.S. shale field, where low-cost production has helped turn the United States into the world's top oil producer at 12.3 million barrels per day. Occidental shares were trading on Thursday at USD57.48, down sharply from USD66.63 a month ago, prior to rumors it might challenge Chevron. It trumped Chevron's bid last week, and its offer now includes USD10 billion in financing from Buffett's Berkshire Hathaway Inc in exchange for preferred shares that would pay an 8 percent dividend.

Major Occidental shareholders told Reuters they opposed the plan. They called the $76-per-share bid for Anadarko expensive and cited concerns about the cyclical nature of the oil business as well as the cost of getting financing from Buffett.

Several Occidental shareholders said they viewed Chevron's lower $65-per-share bid as a better fit because it could more easily swallow a company of Anadarko's size.

T. Rowe Price Group Inc, which holds shares in all three oil companies, cited merger risks and the cost of the Berkshire infusion. John Linehan, portfolio manager at T. Rowe Price, said Buffett's deal could allow Occidental to restructure its cash-and-stock deal to avoid a shareholder vote, although its current offer includes a vote.

T. Rowe Price, Occidental's sixth largest shareholder, had 21.1 million shares at the end of 2018, according to Refinitiv Eikon figures, along with 8 million Chevron shares and 865,000 Anadarko shares.

Berkshire would receive a warrant to purchase up to 80 million shares of common stock at $62.50 apiece in a private offering, in addition to the preferred stock that will accrue dividends at 8 percent per annum.
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