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Aramco supplied greed volumes, grades to Reliance in October

November 11/2019

MOSCOW (MRC) -- Saudi Aramco supplied agreed grades and volumes to India's Reliance Industries 1.77 % in October after the world's top oil exporter had to provide alternate heavier grader due to drone attacks on its oil installations, said Economictimes.

The September 14 drone and missile attacks on two giant facilities that process mainly light crude knocked down about 5.7 million barrels per day, more than half of the production of the world's top oil exporter, forcing the Kingdom to supply heavier grade instead of light oil to some refiners.

"Aramco (has) confirmed and reassured that supplies for October will be maintained both in terms of quantity and mix of grades as per our requirement," said the spokesperson.

Aramco has been a major and reliable supplier of crude oil for Reliance for more than twenty years, both in terms of volume of crude supply as well as the mix of various grades of crude oil, the spokesperson added.

"In the immediate aftermath of the incident, Aramco maintained supply with alternate grades of crude oil. The alternate grades being heavier suited Reliance's refining needs," the spokesperson said.

Reliance, owners of the world's biggest refining complex at Jamnagar in western Gujarat state, is a major buyer of Saudi oil and recently announced plans to sell a fifth of its petrochemical and refining business to Aramco in a multibillion dollar deal.

As MRC informed earlier, Saudi Aramco, which temporarily lost half of its oil production following the September 14 attacks on two key oil facilities, is running its local refineries at full capacity and is forging ahead with plans to start up new refineries. The company is also starting up a joint venture refinery in Malaysia next year. According to Aramco's bond prospectus released in April, the refining and petrochemical joint venture with Petronas - the Malaysian national oil company - collectively known as PRefChem, was supposed to start this year.

The PRefChem joint venture includes a 300,000 b/d refinery, an integrated steam cracker with capacity to produce 1.3 million mt of ethylene located in Johor, Malaysia. Aramco was supposed to provide a significant portion of PRefChem's crude supply under a long-term supply agreement. Jazan and PrefChem will help Aramco reach a gross refining capacity of 5.6 million b/d, it said in the prospectus. The company currently owns and has stakes in four refineries abroad with a total refining capacity exceeding 2 million b/d.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.


mrcplast.com
Author:Anna Larionova
Tags:ethylene oxide, PP, PE, ethylene, propylene, Reliance Industries, Saudi Aramco.
Category:General News
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