Shell delays US Lake Charles LNG export project to 2025

MOSCOW (MRC) -- Royal Dutch Shell, one of the world’s largest liquefied natural gas (LNG) suppliers, has asked US regulators to extend the time by which it should complete an LNG export project in Louisiana by five years to 2025, reported Reuters with reference to regulatory filings.

The project, a 50-50 venture with US midstream company Energy Transfer, envisaged converting an existing import and regasification facility in Lake Charles into a multi-train, 16.45 million tonnes per year (mtpa) facility.

The delay takes a major U.S. export project out of the race to achieve a final investment decision (FID) in time to start operations during an anticipated supply downturn in 2023-2024.

About a dozen projects in North America, mostly in the Gulf of Mexico, are vying for FID this year or early next year to start production in time to hit that sweetspot. But the more get approved, the less likely other projects are to go ahead as the expected dearth turns into oversupply.

The delay is due to Shell’s takeover of the project after its USD53 billion acquisition of BG Group in 2016 prompted it to re-evaluate and strike new agreements, the Anglo-Dutch company said in a letter dated last Friday to the Federal Energy Regulatory Commission.

It said following this process, the project plans had not changed but a new 50-50 ownership structure with Energy Transfer had been struck and Shell had committed to taking 50% of the export capacity.

"Under the new Project Framework Agreement, ET and Shell have established a detailed process for the development of the Project which includes milestones that are expected to result in the Project sponsors reaching FID as early as the end of 2020," it said in the letter.

"Completion of construction of the LNG export terminal facility is expected to occur as early as the second half of 2025."

We remind that, as MRC wrote before, in May 2018, China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) officially started up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

R Kesavan takes over as Finance Director of HPCL

MOSCOW (MRC) -- R Kesavan takes over as HPCL's Finance Director Mumbai (Maharashtra): R Kesavan on Thursday took over as the Finance Director at Hindustan Petroleum Corporation Ltd (HPCL), as per EnergyWorld.

He is also the Chief Financial Officer at the government-owned oil and natural gas company, according to a statement.

Kesavan was earlier Executive Director of HPCL's Corporate Finance division for over four years. He is a fellow member of the Institute of Chartered Accountants of India (ICAI).

Kesavan brings with him three decades of experience in corporate accounts, audit, treasury management, risk management, budgeting, pricing, corporate strategy and margin management.

As MRC reported before, in August 2018, L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of engineering giant Larsen & Toubro, announced it had won an onshore Engineering Procurement and Construction (EPC) contract from HPCL-Mittal Energy (HMEL), a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investment. Under the contract, LTHE would set up seven cracker furnaces at the Bathinda refinery in Punjab. The order for setting up the furnaces of 1,200 kilo-tonne per annum (KTPA) dual-feed cracker unit is part of HPCL-Mittal Energy's Guru Gobind Singh Polymer Addition project.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
mrcplast.ccom

LyondellBasell in MOU with Bora for China expansion

MOSCOW (MRC) -- Chemical and fuel company LyondellBasell Industries said it has signed a memorandum of understanding (MOU) to form a joint venture with China’s Bora Enterprise Group to build a chemical complex in northeast China, as per Reuters.

LyondellBasell and Bora may invest as much as USD12 billion over the next 10 years in a series of petrochemical projects in Liaoning’s Panjin city.

LyondellBasell will take a 50% stake in the chemical projects being built by the Chinese firm, it said.

Among the proposed phase-one investment with a total cost of 18 billion yuan (USD2.54 billion) are the production of 800,000 tonnes per year (tpy) of polyethylene, 600,000 tpy polypropylene and 350,000 tpy styrene.

LyondellBasell currently operates three polypropylene compounding facilities in China located in Guangzhou, Suzhou and Dalian.
MRC

INEOS completes the acquisition of the Ashland Composites Business

MOSCOW (MRC) -- INEOS Enterprises announced the completion of the acquisition of the entire composites business from Ashland Global Holdings Inc. on 3 September, as per the company's press release.

The acquisition also includes a BDO facility in Germany.

The businesses included in the transaction have combined sales of more than USD1.1 billion per year. They employ 1,250 employees across 19 sites in Europe, North and South America, Asia and Middle East.

Ashley Reed, CEO INEOS Enterprises said, "We are very pleased to have completed the deal to acquire the Composites business from Ashland. We have a strong track record of manufacturing excellence, running businesses safely and reliably and working closely with customers to meet their growth aspirations. The INEOS Composites business as it will be known, presents new opportunities for INEOS to enter the Composites market, with excellent people and assets. I very much look forward to welcoming the business into INEOS."

Ashland’s Composites Business will become INEOS Composites. It will build on firm foundations as a global leader in unsaturated polyester resins, vinyl ester resins and gelcoats.

The business will continue to provide a wide range of gelcoats and corrosion-resistant fiberglass reinforced plastic (FRP). The BDO facility produces key intermediates for high performance polyesters and polyurethanes and will be run by the INEOS Solvents business.

Bill Wulfsohn, Ashland chairman and chief executive officer said, "Today Ashland completed an important step fulfilling its vision of becoming the premier specialty chemical company with the completion of the sale of the Composites and Marl Intermediates businesses. Both are outstanding businesses with great people, technology and assets. We wish the Composites and Marl teams well as they become part of INEOS Enterprises."

As MRC informed before, in mid-January 2019, INEOS announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Ashland Global Holdings Inc. is global specialty chemicals company serving customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical.

INEOS Enterprises comprises a portfolio of businesses manufacturing chemical products in Northern Europe, USA and Canada, with sales of EUR2bn around the world. The business is focused on the developing needs of its customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. It employs c. 2,000 people across sites in, Canada and the USA. INEOS Enterprises is not part of the INEOS Group Holdings bank group.
MRC

China imposes anti-dumping tariffs on phenol imported from US, EU from September 6

MOSCOW (MRC) -- China will impose anti-dumping tariffs on phenol imported from the United States, the European Union, South Korea, Japan and Thailand from September 6, 2019, reported Reuters with reference to the country's commerce ministry.

Phenol imports from those countries and regions have caused substantial damage to the domestic industry, China's Ministry of Commerce said in a statement on its website.

The tariffs will last for five years, according to the statement.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to ICIS-MRC Price report, July imports of PC granules and compounds to Russia, excluding deliveries from Belarus, were 2,3400 tonnes, compared to 1,840 tonnes a month earlier and 1,070 tonnes in July 2018. Last month's imports of PC granules, excluding Belarusian shipments, were 1,940 tonnes (extrusion grade PC - 1,290 tonnes, injection moulding PC - 580 tonnes, blow moulding PC - 80 tonnes) versus 790 tonnes in July 2018. In June 2019, imports of PC granules reached 1,350 tonnes. Shipments of PC granules, excluding imports of Sabic material from Belarus, rose in January-July 2019 by 87% year on year to 9,140 tonnes from 4,890 tonnes a year earlier.
MRC