Bapco refinery says operations continue after Saudi pipeline cutoff

MOSCOW (MRC) -- Bahrain’s national oil and gas authority said on Monday that facilities at Bapco refinery were continuing without impact on the provision of oil derivatives in the local market, reported Reuters with reference to state news agency BNA.

Sources told Reuters earlier on Monday that Saudi Arabia has shut down its crude oil pipeline to Bahrain after attacks on Saudi oil facilities.

"Operations to supply Bapco refinery with crude oil are underway in accordance with the business continuity plan," the authority said.

"We are in constant touch with Saudi Aramco and continue to assess the situation and its impact on our operations," it added.

As MRC wrote before, in May 2019, Bapco completed multi-billion-dollar financing aimed at expanding its refining capacity to 380,000 barrels per day (bpd) from 267,000 bpd.
MRC

MOSCOW (MRC) -- A fire broke out at the Nizhnekamskneftekhim (NKNH, part of the TAIF group), at ethylene plant in Nizhnekamsk, Russia on 16 September, the company’s press service said.

The fire occurred at the Nizhnekamskneftekhim plant, which was working to resume the production of ethylene after maintenance works.

GU EMERCOM of Russia for Tatarstan reported that the lower part of the distillation column was burning, and the torch height was three meters. The NKNH called it an “emergency situation”. The company said that there was a “flange joint depressurization” at the site, and the ignition area was 1 square meter.

Combustion was eliminated within seven minutes. At the moment, the installation was transferred to safe mode, there are no injured or killed as a result of the accident. The Ministry of Emergencies said earlier that there is no threat to the population of Nizhnekamsk and the environment.

According to Price Report ICIS-MRC, Nizhnekamskneftekhim in 2019 produces exclusively linear polyethylene (LLDPE). LLDPE shipments to the Russian market increased in the first seven months of 2019 by 8% year on year to 234,130 tonnes. Local producers increased their production by 24%.

PJSC "Nizhnekamskneftekhim" (NKNH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, ethylene pipelines, etc.). NKNH produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, and surfactants. Nizhnekamskneftekhim is a member of TAIF Group of Companies.
MRC

MOSCOW (MRC) - The downward pressure of prices of PET chips increased in Russia on the back of the trend of the appreciation of the rouble against the dollar and record low prices in China, the ICIS-MRC Price Report said.

The contract prices of Russian plants for most buyers this month were in the range of roubles (Rb) 78,000-81,000/tonne CPT Moscow, including VAT. However, the largest converters purchased material in the first half of September at Rb77,000-78,000/tonne CPT Moscow, including VAT.

As it was earlier said, supply of imported material in July decreased by 7% compared to July 2018 and amounted to 15,580 tonnes of PET. Imports of PET to Russia increased to 117,840 tonnes in seven months of 2019, up 19% year on year.
MRC

MOSCOW (MRC) - Export prices for bottled PET in Asia last week generally remained at the previous week amid minimal fluctuations in the cost of raw materials, the ICIS-MRC Price Report said.

Overall, PET prices were in the range of USD840-870/tonne FOB China. Most spot deals were for deliveries in October, but there were also September and November.

According to market players, the supply of bottle brands of PET chips in the spot market was sufficient, and consumer interest was consistently high. The increase in spot purchases may be a result of an increase in the contract price of paraxylene in Asia and a slowdown in the downtrend in PET prices.

However, some producers still reported limited spot deals and refuse to cut prices due to lower production margins.
The contract prices of Russian plants this month fell to roubles (Rb) 78,000-81,000/tonne CPT Moscow, including VAT, the lowest level since the beginning of 2018. At the same time last year, formula prices were on average up by Rb30,000/tonne.
MRC

MOSCOW (MRC) - The price of Chinese PET from traders in the domestic market of Ukraine remained stable last week, despite the continuing trend of strengthening the hryvnya against the dollar, the ICIS-MRC Price Report said.

So, the prices of Chinese PET in Ukraine last week remained in the range of hryvnyas (UAH) 33,000-33,500/tonne, CPT Kiev, including VAT. At the same time, the export price of Chinese PET last week was still in the range of USD900-920/tonne, CIF Odessa, excluding VAT.

Prices of Belarusian PET for delivery to Ukraine also remained at the level of the previous week in the range of UAH31,500-32,000/tonne CPT Kiev, including VAT.

The contract prices of Russian plants this month fell to roubles (Rb) 78,000-81,000/tonne CPT Moscow, including VAT, the lowest level since the beginning of 2018. At the same time last year, formula prices were on average up by Rb30,000/tonne.
MRC