More big energy projects promised at Pennsylvania plant

MOSCOW (MRC) -- President Donald Trump told workers at a $6 billion petrochemicals plant being built in western Pennsylvania that more big U.S. energy projects were coming as his administration rolls back environmental regulations, said Hydrocarbonprocessing.

"This is just the beginning," Trump told workers wearing hard hats at Shell's ethylene cracker plant in Beaver County, Pennsylvania. "My administration is clearing the way for other massive, multibillion-dollar investments."

He praised the Shell plant as part of "the revolution in American energy that's helping make our economy the envy of the world" and said the project would have never happened without him, although its final permits were issued before he was elected in 2016.

Trump won Pennsylvania in that election by less than 1 percentage point, and he has visited the state often ahead of the 2020 vote.

The Trump administration is pursuing a policy of "energy dominance" that seeks to maximize oil, gas and coal production in part by slashing regulations.

Last week, its Environmental Protection Agency, or EPA, unveiled a proposal that would limit the power of states to block pipelines and other energy projects, months after Trump ordered the agency to change a section of the U.S. Clean Water Act that states including New York and Washington have used to delay the building of pipelines and terminals.

At the Shell plant, Trump apparently tried to take credit for a liquefied natural gas (LNG) plant, called Cameron LNG, he visited in May. Full approvals for that plant were made before Trump was elected. "We just did one in Louisiana, it's a USD10 billion plant," Trump said.

U.S. Energy Secretary Rick Perry, who accompanied Trump to the Shell plant, has embraced an up-to USD10 billion Appalachian Storage and Trading Hub project to hold liquids from natural gas production. The project could help support the building of more petrochemical plants in West Virginia, Ohio and Pennsylvania, where a natural gas boom is at risk from falling prices.

Regional officials hope to secure a USD1.9 billion federal loan guarantee being considered by the Energy Department for the hub. But critics say that U.S. taxpayers would be on the hook if the project fails.

And environmentalists worried about plastic garbage ending up in the world's oceans slammed the hub.

The project would "expose Appalachian residents to increased harm from fracking and industrial toxic emissions, while creating more plastic trash that is filling our oceans," said Wenonah Hauter, executive director at Food & Water Watch.

Petrochemical manufacturers say that demand for plastics, used in food storage, surgical devices, and in car parts, will increase as the global middle class expands. Shell says it supports plastics recycling and reuse.
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MOSCOW (MRC) -- Huntsman Corp, the US chemicals group, is selling two of its businesses to Thailand-based petrochemicals company Indorama Ventures for more than USD2bn, said FT.

Texas-based Huntsman said in a statement late on Wednesday that the Bangkok-listed group would pay $2bn in cash and transfer about $76m of net underfunded pension and other liabilities to buy its chemical intermediaries and surfactants divisions, which make ingredients for lubricants and cleaning products.

As part of the deal, Indorama will acquire Huntsman manufacturing facilities in Texas, India and Australia.

Peter Huntsman, the US group’s chief executive, said that the deal “further transforms Huntsman’s balance sheet and future”, and was in line with its strategy of focusing more on its downstream and specialty businesses. Huntsman, with revenues of more than USD9bn last year, makes and markets differentiated and specialty chemicals, and has business in about 30 countries.

In 2017, it was forced to call off a USD20bn tie-up with Switzerland’s Clariant due to investor opposition, during a time of significant consolidation in the chemicals industry.

Indorama Ventures is part of Singapore-based Indorama Corp. The group is headed by the Indian-born Indonesian billionaire Sri Prakash Lohia and makes a range of petrochemical products, including PET, packaging, fibers, and recycled products.

Aloke Lohia, group chief executive of Indorama Ventures, said: “This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earnings streams."

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MOSCOW (MRC) -- U.S. crude oil stockpiles rose unexpectedly for a second week in row as refineries cut output last week, while fuel inventories posted surprise drawdowns with gasoline demand hitting a record high, the Energy Information Administration said, as per Hydrocarbonprocessing.

Crude inventories rose by 1.6 million barrels in the week to Aug. 9, compared with analysts' expectations in a Reuters poll for a decrease of 2.8 million barrels. At 440.5 million barrels, inventories were about 3% above the five-year average for this time of year, the EIA said in its weekly report.

Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures fell 2.5 million barrels, the EIA said. Stocks in Cushing have declined steadily since July to their lowest in four months due to heavy activity from Midwest refiners, who tend to pull barrels from the Cushing hub.

Midwest crude stocks fell 3.3 million barrels to 132.6 million barrels, their lowest since late January.

Refinery crude runs fell by 475,000 barrels per day, EIA data showed. Refinery utilization rates fell by 1.6 percentage points to 94.8% of overall capacity.

"We might be starting to see the signs of seasonal maintenance creep in and extended maintenance coming into play and so that's one of the headwinds that oil will have to deal with," said Phil Flynn, analyst at Price Futures Group in Chicago.

Oil prices were under pressure prior to the report due to widening fears about slowed global economic growth. Following the EIA report, the market extended loses. U.S. crude futures were down $1.99 per barrel, or 3.5%, at $55.12 by 10:52 a.m. EDT (1452 GMT), while Brent fell $1.94 a barrel, or 3.1%, to $59.40.

Gasoline stocks fell 1.4 million barrels, compared with forecasts for 25,000 barrel-build and were about 4% above the five-year average for this time of year, the EIA said.

U.S. gasoline demand jumped by 281,000 bpd to a record 9.93 million bpd last week, according to EIA data going back to 1991.

Distillate stockpiles, which include diesel and heating oil, fell by 1.9 million barrels, versus expectations for a 1 million-barrel increase, the EIA data showed.

Net U.S. crude imports fell last week by 252,000 bpd. Exports rebounded from the previous week, rising to 2.7 million bpd. U.S crude production was flat last week at 12.3 million bpd.
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MOSCOW (MRC) -- DOMO Chemicals (Ghent, Belgium) and Solvay (Brussels, Belgium) have signed an agreement for DOMO to acquire Solvay’s Performance Polyamides Business in Europe, said Chemengonline.

This includes Engineering Plastics operations in France and Poland; High-Performance Fibers in France; Polymer and Intermediates operations in France, Spain and Poland. The agreement also involves a joint venture between BASF and DOMO in France for the production of adipic acid. The business comprises production, sales, technical support, R&D and innovation services, which currently have a combined headcount of approximately 1,100 employees. The acquisition, which is subject to approval by the competent competition authorities, is expected to close by the end of Q4 2019. The purchase price to be paid by DOMO on a cash and debt-free basis would amount to EUR300 million.

The acquisition of this leading PA 6,6 business will significantly strengthen Domo Chemicals’ downstream nylon-based engineering plastics business and create a European leader with scale, entering the market with a top position in PA6/6,6 in Europe. The result: a backward integrated business with unique technology capabilities and a secured supply of key raw materials. There will be a strong focus on driving combined innovation, while accelerating future growth. Through the acquisition, Domo Chemicals turnover will grow from 900 million EUR to 1,600 million EUR.

Speaking for DOMO Chemicals, Alex Segers, CEO called the acquisition "a major step forward." “By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence towards our customers by building a unique and competitive integrated Nylon solution provider (6 and 6.6) driven by a strong innovation platform to push future sustainable growth.

The strong reputation of the Technyl brand will perfectly complement DOMO’s wide DOMAMID range of engineered and virgin polyamide resin grades and ECONAMID range of recycled polyamides. We are looking forward to offering employees from both companies great opportunities for personal and career development.”
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MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) announced a strategic investment in global storage terminal owner and operator VTTI BV (VTTI), said Hydrocarbonprocessing.

As part of this agreement, ADNOC will acquire a 10% equity stake in VTTI. Following the transaction, VTTI will be owned 10% by ADNOC, 45% by IFM Global Infrastructure Fund (IFM GIF), an investment vehicle managed by IFM Investors, and 45% by Vitol (both directly and through Vitol Investment Partnership II Ltd, an investment vehicle sponsored and managed by Vitol).

VTTI is an independent global owner of 15 hydrocarbon storage terminals across 14 different countries. The VTTI storage network holds around 60 million barrels (9.5 million m3) of combined storage capacity, much of which is in locations that are complementary to ADNOC’s trade flows.

The investment in VTTI provides ADNOC access to storage capabilities across some of its key export markets such as Asia, Africa and Europe while also securing additional facilities at the port of Fujairah, UAE, its main storage hub. This transaction also significantly contributes to the development and growth of ADNOC’s global marketing, supply and trading platforms, providing greater access to knowledge and capabilities that will further enable ADNOC’s growth plans.

“We are delighted to be entering into this strategic investment opportunity in VTTI, alongside Vitol and IFM GIF, which will further complement the development of ADNOC’s integrated global trading platform while also delivering a solid financial return. VTTI’s diverse portfolio of storage assets across key target markets such as Asia, Africa and Europe, provides us with direct access to our customers around the world, a key building block to accelerating ADNOC’s transformation into a more integrated and commercially-minded global energy player," H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said.

He added: “As one of Fujairah’s largest storage operators, VTTI is a natural partner for ADNOC. This investment further strengthens ADNOC’s strategic position in Fujairah and supports the continued development of Fujairah as a strategic hub for our operations.”

By expanding its international storage capabilities and reach, ADNOC will move closer to its customers, allowing it to be more agile and respond quickly to market needs and dynamics. It will also unlock incremental revenue, margin and cost saving opportunities from the trading, transportation and storage of its products, giving ADNOC better control over where, when and how its products are being supplied to key markets and customers.
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