Saudi Aramco restored oil output to pre-attack level

MOSCOW (MRC) -- Saudi Aramco has restored full oil production and capacity to the levels they were at before attacks on its facilities on Sept. 14, the chief executive officer of its trading arm, Ibrahim Al-Buainain, said Reuters.

Oil output capacity was restored on Sept. 25, he told a conference in the United Arab Emirates’ city of Fujairah. Oil production was restored to its pre-attack level of about 9.7 million barrels per day or even “a little higher” to replenish inventories, he said.

Saudi Arabia pumped about 9.78 million bpd in August.

“By Sept. 25 we were able to restore all capacity that we had before the attacks,” Al-Buainain said.

The attacks targeted the Abqaiq and the Khurais plants, causing a spike in oil prices, fires and damage that halved the crude output of the world’s top oil exporter, by shutting down 5.7 million bpd of production.

Saudi Arabia has managed to maintain supplies to customers at levels before the attacks by drawing from its huge oil inventories and offering other crude grades from other fields, Saudi officials have said.

Aramco’s oil output capacity was restored to 11.3 million bpd, sources told Reuters last week.

Saudi officials have said Aramco will reach 12 million bpd of capacity by November.

Yemen’s Houthi group claimed responsibility for the attacks but a U.S. official said they originated from southwestern Iran and Riyadh blamed Tehran. Iran, which support the Houthis in Yemen’s war, has denied any involvement in the attacks.

As MRC reported before, a number of Saudi Arabia's companies, such as Tasnee, Sadara, Advanced Petrochemical and Saudi Kayan, announced a curtailment of feedstock to their petrochemical plants, including polyethylene (PE) and polypropylene (PP) facilities, by an average of 30-50% due to the attacks on key Saudi Aramco facilities on Saturday.

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.
MRC

MOSCOW (MRC) -- Brazilian state-owned oil company Petroleo Brasileiro SA said it will meet global rules for lower sulfur content in all of its bunker fuel shipments starting from, well ahead of a 2020 deadline, said Hydrocarbonprocessing.

Petrobras, as the company is known, said in a statement that its bunker fuel would have a maximum sulfur content of 0.5% beginning Tuesday.

The International Maritime Organization will lower the sulfur content allowed in bunker fuel, used by ships, from 3.5% to 0.5% starting from 2020.

Petrobras began adjusting its refineries in April to comply with the rule and has already produced 1.2 million cubic meters of bunker fuel with sulfur content below the new limit, it said.

The company did not give a forecast for its annual production capacity for bunker fuel but said it would meet domestic Brazilian demand and export any surplus.

“The reduction of sulfur levels in bunker (fuel) offers Petrobras the opportunity to profitably increase its share of the global market,” Petrobras said in its statement.

As MRC informed earlier, in June 2019, Petroleo Brasileiro SA said it has signed a deal with local antitrust regulator CADE regarding the proposed sale of some of its refining installations. The company said the agreement will allow for increased competition in Brazil’s refining sector, by attracting new players to the business. Petrobras, as the oil firm is known, will sell eight refineries in seven different Brazilian states.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- North Huajin Chemical has taken off-stream its polypropylene (PP) unit in Liaoning, said Apic-online.

A source in China informed that the company has commenced turnaround at the unit on September 20, 2019. Further details on duration of shutdown was not available.

Located in Liaoning province, China, the plant has a production capacity of 50,000 mt/year.

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.

North Huajin Chemical Industries Group Corporation develops, manufactures, and markets fertilizers, synthesis resins, ethylene, methanol, and dimethyl in China. The company also manufactures PVC plastic windows and doors, functional membranes, PVC-U section materials, and laminated plastic woven bags. Its fertilizer products include urea and slow release urea for use in agriculture, husbandry, and fishery markets. North Huajin Chemical Industries Group Corporation was founded in 2002 and is based in Panjin, China.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, is progressing in restarting on-site production units after experiencing an emergency incident on Saturday, September 21, at its Clear Lake facility in Pasadena, Texas, said the company.

The Fairway Methanol unit has restarted and is approaching full operating rates. The acetic acid and vinyl acetate monomer production units are planned for restart at reduced rates during October, with full operating rates expected for all production units at Clear Lake within the fourth quarter of 2019. Shipping operations at Clear Lake and associated terminals continue to operate without interruption.

Celanese is assessing the potential impact of the incident on available product volumes. As part of its on-going commitment to provide reliable supply, Celanese is utilizing its global network capabilities to provide product to its contract customers and will keep its customers updated on any developments.

The Company will provide further updates on the status of its Clear Lake operations as well as financial impact to 2019 when it reports third quarter results.

As MRC informed earlier, Celanese Corporation experienced an emergency incident at approximately 12:00 noon Central time on Saturday, Sept. 21, at the Celanese Clear Lake facility in Pasadena, Texas.

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 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

MOSCOW (MRC) -- Husky Energy continues to make steady progress towards a return to full operations at the Superior Refinery, said Hydrocarbonprocessing.

The Company has received the required permit approvals to begin reconstruction activities at the site and work is expected to begin immediately. Demolition of damaged equipment resulting from a fire in April of 2018 is now largely complete and the rebuild will take place over the next two years with an expected return to full operations in 2021.

“Our continued investment in this refinery and the community will support the Superior-Duluth regional economy through jobs, procurement, taxes and essential energy products for years to come,” said CEO Rob Peabody. “The Superior Refinery is an integral part of Husky’s Integrated Corridor business, which maximizes margin capture across the value chain.”

Husky acquired the Superior Refinery, located in Superior, Wisconsin, in 2017. As the first U.S. refinery along the route of the Enbridge mainline, it is ideally positioned to process the Company’s Canadian heavy crude feedstock into high-demand products such as gasoline, diesel and asphalt for the U.S. Midwest market. The refinery has about 200 employees and works with numerous contractors and suppliers in the region. During the construction phase, more than 350 contractor jobs are expected to be created at peak.

Once the refinery is fully ramped up, Husky’s overall downstream throughput capacity is expected to be approximately 400,000 bbls/day.

As MRC informed earlier, Cambridge, AVEVA, a global leader in engineering and industrial software, has signed an agreement with Calgary-based integrated oil and gas company Husky Energy to deliver an end-to-end supply chain management solution for Husky’s downstream business.
MRC