Alfa Laval wins energy efficiency order for refinery and petrochemical plant

MOSCOW (MRC) -- Alfa Laval, a world leader in heat transfer, centrifugal separation and fluid handling, has recently won an order to supply compact heat exchangers to a refinery and petrochemical plant in China, according to Hydrocarbonprocessing.

The order has a value of approximately SEK 100 million and is booked in the Welded Heat Exchangers unit of the Energy Division. Deliveries are scheduled for 2020.

The order comprises Alfa Laval compact heat exchangers which will be used to recover and reuse heat in the heavy fractions in the refinery, which produces both transportation fuels and feedstock for petrochemical production.

"Our compact heat exchangers are well suited for the demanding processes in refineries and the petrochemical industry. They are reliable and efficient and contribute to huge energy savings which has an impact on our customers' bottom line. Saving energy also saves a lot of CO2 emissions which is beneficial to the society," says Susanne Pahlen Aklundh, President of the Energy Division.

As MRC wrote before, in 2017, Alfa Laval won an order to supply compact heat exchangers to a refinery in China. The order has a value of approximately USD10.6 MM. It was booked late June in the Gasketed Plate Heat Exchangers unit of the Energy Division, with deliveries scheduled for 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC

BP incoming CEO will not initially take up Rosneft board seat

MOSCOW (MRC) -- Incoming Chief Executive Bernard Looney will not take up either of BP’s seats on the board of Rosneft when he takes over in February because of the complexity of the relationship with the Russian oil giant, reported Reuters with reference to five company sources.

Under an arrangement between Looney and outgoing Chief Executive Bob Dudley, Dudley will keep one of the seats when he retires in March, the sources said.

Guillermo Quintero, a Venezuelan national who is also a former BP executive and has ties to the South American country’s national oil company PDVSA, will keep the other seat, they said.

The sources said Rosneft had been informed of the arrangement but did not say how long it was expected to last.

BP owns nearly a fifth of Rosneft, its biggest foreign investment and the source of a third of its total output.

But Looney has not worked in Russia and cannot rival 64-year-old Dudley’s long experience of working in and with the country and his deep ties with Rosneft, the Kremlin and Russian President Vladimir Putin.

"Dudley will stay on the board of Rosneft because the relationship between BP and Moscow is very complicated," a senior BP official told Reuters.

Looney’s decision not to take either of the board seats has not been previously reported. Dudley said in October he would stay on the Rosneft board after retiring in March, but did not explain why.

"With his unrivalled experience of both the international oil industry and Russia, Bob will continue to provide valuable experience on the Rosneft Board," BP said in a statement to Reuters.

Quintero’s ties to Venezuela are also important for Rosneft, as the Russian company became an important buyer of oil from the country after it was hit by sanctions by Washington.

Rosneft did not reply to a written request for comment.

Dudley is chairman of Rosneft’s strategic planning committee which focuses on long-term development and sustainability issues, according to Rosneft’s 2018 annual report.

He and Quintero regularly take part in Rosneft board discussions and vote on topics ranging from long-term strategy to dividend payments to shareholders, including BP.

It is unclear whether either will receive remuneration from BP for sitting on the Rosneft board. Neither Dudley nor Quintero hold shares in Rosneft and neither received remuneration from Rosneft last year, according to the 2018 annual report.

As MRC informed before, several companies have just announced the formation of a new consortium that aims to address the problem of plastic waste by speeding up the commercialization of BP Infinia enhanced recycling technology that was developed by London-based BP. Businesses involved in the partnership include those that manufacture, use, collect and recycle polyethylene terephthalate (PET) plastic packaging. BP Infinia is designed to turn opaque and hard-to-recycle PET plastic scrap into recyclable feedstocks that can be used to make high-quality PET packaging with no loss in quality, according to BP.

According to MRC's ScanPlast report, Russia's overall estimated PET consumption reached 42,020 tonnes in October 2019, down by 32% year on year. PET consumption in Russia increased to 593,480 tonnes in January-October 2019, up by 5% year on year.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

EPS imports to Ukraine drop by 3% in Jan-Nov 2019

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into Ukraine decreased in the first eleven months of 2019 by 3% year on year, totalling 31,800 tonnes, according to MRC's DataScope report.

This figure was at 32,700 tonnes in January-November 2018.


Russian material accounted for 51% (16,200 tonnes) of the total shipments in the first eleven months of 2019, compared to 58% (19,000 tonnes) a year earlier. Chinese EPS shipments reached 36% (11,600 tonnes) over the stated period, compared to 28% (9,000 tonnes) in January-November 2018.

November EPS imports into Ukraine were 1,700 tonnes versus 2,900 tonnes a month earlier and 2,200 tonnes in November 2018.

The share of Russian material grew to 69% (1,200 tonnes) last month from 54% (1,500 tonnes) a month earlier. The share of Chinese shipments dropped to 14% (240 tonnes) in November from 33% (940 tonnes) in October.

MRC

Ukraine reduces imports of Nizhnekamskneftekhim GPPS and HIPS in Jan-Nov 2019 by 29%

MOSCOW (MRC) -- Imports of Nizhnekamskneftekhim's general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine decreased in January-November 2019 by 29% year on year to 10,900 tonnes, according to MRC's DataScope report.

This figure was at 15,400 tonnes in January-November 2018.


Nizhnekamskneftekhim's material accounted for 48% in the overall structure of imports to the Ukrainian market for the first eleven months of 2019, compared to 67% in January-November 2018.

November imports of material fell sharply from October 2019 to 500 tonnes from 1,500 tonnes. Imports were at 1,500 tonnes in November 2018.

Overall imports of this polystyrene grade into the country decreased in the fist eleven months of 2019 by 2% year on year to 22,600 tonnes from 23,100 tonnes a year earlier.

MRC

Russian PVC market: results of 2019

MOSCOW (MRC) -- According to the preliminary results of 2019, the Russian suspension polyvinyl chloride (SPVC) market showed an increase in demand of slightly less than 3%, whereas consumption dropped by 6% a year earlier. The current year will be also remembered for a record price level, reported MRC analysts.

The Russian SPVC market showed an increase in demand of slightly less than 3% in the first eleven months of 2019. Given the December demand for resin, the results of the whole year will remain at the same level, whereas demand for polyvinyl chloride (PVC) subsided by 6% from the local market a year earlier. Producers of plasticized PVC demonstrated high consumption volumes this year. This year was also characterized for market participants by a record price level in history.

Despite the high level of capacity utilisation and an increase in the number of shutdowns for maintenance, Russian producers managed to raise their SPVC output in 2019. Thus, overall output of resin reached 866,500 tonnes in the first eleven months of 2019, up by 3% year on year. At the same time, three producers shut down their production capacities for lengthy turnarounds versus two shutdowns in 2018. Thus, the outages took place in May-August or a period of high seasonal demand.

Scheduled shutdowns for maintenance led to record high SPVC prices in the Russian market, prices exceeded Rb80,000/tonne CPT Moscow, including VAT, in July-August. The price roll-back began in September, and prices had reached Rb73,000/tonne CPT Moscow, including VAT, by December 2019, which virtually corresponds to the last year's level.

The record high SPVC prices led to a noticeable increase in imports. Expectedly, July-August, when SayanskKhimPlast and Bashkir Soda Company shut their production capacities for turnarounds, accounted for the peak of imports. And according to preliminary results, overall imports of suspension are about 50,000 tonnes in 2019, up by 2.5 times year on year.

Higher imports and weak demand for SPVC from the domestic market in the first half of the year forced domestic producers to increase their exports. Export sales in 2019 grow by 25%.

In general, the year of 2019 was quite good, despite high prices during the year. Positive growth in demand remained in the plasticized PVC and films segment. The rate of decline in demand from the profile and moulding products has slowed significantly.

The positive dynamics of growth in demand for SPVC will remain in 2020, although the increase will be insignificant. A number of shutdowns for maintenance will decrease, and the period of high seasonal demand will not be as scarce as in 2019.
MRC