Advanced Petrochemical to expand business range on MSCI inclusion

MOSCOW (MRC) -- Advanced Petrochemical Co.’s inclusion in the MSCI EM Index positively contributes to expanding its business range by increasing competition to include local and global peers, the company said in a statement, as per Argaam.

The move serves as an opportunity for the company to demonstrate its capabilities, a matter that boosters a positive image to international investors.

"The company works according to strategic plans set up by the board of directors whether in managing the operational processes of the existing plants or in evaluating and assessing some of the available opportunities for future expansions which maximize the rights of its shareholders and contribute to the development of the Kingdom's national economy," Advanced added.

Several investment projects have been studied by the petrochemical producer locally and overseas, and investment partnerships have been formed with major international firms in the petrochemical industry through the company’s subsidiary, Advanced Global Investment Co.

Advanced Global’s joint venture with South-Korea based SK Gas Co. led to the setting up of SK Advanced Co. to establish, own and operate a PDH plant for propylene production in the Asian country with an annual design capacity of 600,000 metric tons.

The project started commercial operations on May 16, 2016.

SK Advanced has also signed a joint venture agreement with South Korea’s Polymerae Ltd. to establish a polypropylene plant in South Korea with an annual design capacity of 400,000 metric tons. The facility is expected to launch commercial operations in 2021.

Meanwhile, the Saudi Ministry of Energy gave a green light to Advanced Global for allocation of the required feedstock to set up a propane dehydrogenation (PDH) unit (to produce propylene) and polypropylene unit (to produce PP) with a capacity of 750,000 tons each annually in Jubail Industrial City.

Accordingly, the company signed two memorandums of understanding (MoUs) with SK Gas. The first MoU aims to develop a propane dehydrogenation and polypropylene in Jubail Industrial City, with estimated total cost of USD1.8 billion (SAR 6.75 billion). The second one is for the development of a polypropylene compounding unit.

A third MoU was inked with SK Gas to conduct a detailed feasibility study for a state of the art mixed feed or liquid cracker along with downstream products in Saudi Arabia. “Advanced has a strong financial position and positive financial indicators that enable the company for continuous growth and enhance its position in the local and global markets,” the statement added.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased September list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in China, as per the company's press release.

The price increase was effective for orders shipped on or after 29 August, 2019, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, September VAM prices rose for the Chinese region by RMB400/mt.

As MRC reported earlier, Celanese also raised its September VAM prices for Asia (AOC) outside China by USD50/mt.

According to MRC's DataScope report, July EVA imports to Russia increased by 4% year on year to 3,490 tonnes from 3,350 tonnes in July 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-July 2019 by 14, 3% year on year to 22,440 tonnes (26,170 tonnes in the first seven months of 2018).

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.
MRC

MOSCOW (MRC) -- Saudi Arabia has removed its energy minister as chairman of Saudi Aramco and replaced him with Yasir al-Rumayyan, head of the country’s sovereign wealth fund, ahead of a planned blockbuster stock market listing, said the Financial Times.

The appointment of Mr Rumayyan, a close ally of crown prince Mohammed bin Salman, comes as Khalid al-Falih, energy minister and chairman since 2015, has seen his position weakened.

While Mr Falih keeps his official role overseeing oil production policy for the kingdom, last week he was stripped of half of his government portfolio when a new industry and mining ministry was created.

Mr Falih wished Mr Rumayyan success in his new role in a tweet on Monday afternoon, saying it was an important step to prepare the company for an initial public offering.

Global banks have begun pitching for roles on what is expected to be the world’s biggest IPO. The timing is uncertain but Saudi officials have said they would like to proceed in 2020 or 2021. The listing was postponed last year amid concerns about legal risks and doubts over whether it would achieve the $2tn valuation sought by the crown prince.

Mr Rumayyan, who is on the board of Saudi Aramco, has gained in stature and influence in recent years as the head of the country’s Public Investment Fund, the main vehicle through which Prince Mohammed has sought to diversify the kingdom’s economy away from oil.

The Public Investment Fund is trying to fund Prince Mohammed’s domestic reforms, with international investments that have included ride-hailing company Uber, electric carmaker Tesla and SoftBank’s Vision Fund.

MRC

MOSCOW (MRC) -- As of August 1, 2019, Jean-Pierre Sbraire is Chief Financial Officer and member of the Total Executive Committee, following Patrick de La Chevardiere’s retirement, said Investegate.

As of August 19, 2019, Helle Kristoffersen is President, Strategy & Innovation and a Total Executive Committee member. The position was previously held by Philippe Sauquet, now focusing on his responsibilities as President, Gas Renewables & Power.

Total’s Executive Committee now consists of:

Patrick Pouyanne, Chairman and Chief Executive Officer.
Arnaud Breuillac, President, Exploration & Production.
Helle Kristoffersen, President, Strategy & Innovation.
Momar Nguer, President, Marketing & Services.
Bernard Pinatel, President, Refining & Chemicals.
Philippe Sauquet, President, Gas Renewables & Power.
Jean-Pierre Sbraire, Chief Financial Officer.
Namita Shah, President, People & Social Responsibility.

"Our diversity of backgrounds drives innovation and progress at Total. So I’m very pleased to welcome the new members to the Executive Committee, which now includes two women," commented Patrick Pouyanne, Total’s Chairman & CEO. Total set a target in late 2018 to have women account for more than 20% of the positions on business segment and large operational division Management Committees.

Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
MRC

MOSCOW (MRC) -- US propylene stocks rose to 4.117 million barrels in the week ended August 23, reported S&P Global with reference to US Energy Information Administration data.

The increase also represented a second consecutive weekly increase for propylene inventory.

The uptick comes on the heels of lower stockpiles, with levels having reached the lowest level of 2019 as recently as the week of August 9.

Non-fuel use propylene stocks rose 114,000 barrels from a week earlier, though this week's inventory was still up by 958,000 barrels from the same time a year earlier.

The week-on-week increase in US propylene stocks came alongside slightly lower refinery utilization rates, which dropped 0.7% to 95.2% on the week.

There have not been any disruptions to propylene production in the last two weeks with one propylene trader stating that "heavy cracking has had a hand in increasing production."

Propylene is the main feedstock for producing polyprolypele (PP).

According to MRC's ScanPlast report, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.
MRC