Toray Industries starts production of nylon, PBT compounds in India

MOSCOW (MRC) -- Toray Industries, Inc., announced that Toray Industries (India) Private Limited began manufacturing polyamide (PA) and polybutylene terephthalate (PBT) at a new facility in September, said the company.

These resins offer outstanding toughness and resistance to heat and chemicals. Key applications include components for automotive and electrical and electronic. This first Indian plastic compounding unit of a Japanese manufacturer should reach its full operating capacity of around 5,000 metric tons in the near future.

The Indian economy is set to expand at around 6% annually from 2019 through 2030. Demand should grow for engineering plastics as rising incomes drive demand for luxury and high-value-added goods, among them automobiles and appliances. Toray set up the new facility to swiftly capitalize on this potential and build its business in India by stabilizing supplies and cutting lead times, optimizing inventories and delivery, and bolstering local development.

Toray also looks to produce polyphenylene sulfide (PPS) at the Indian facility and set up a technical center there to serve a rising local need for high-performance products and materials. Identifying Indian requirements in product development will equip Toray to cater more responsively to increasingly complex customer requirements amid tightening environmental regulations.

One basic strategy of Project AP-G 2019, Toray's medium-term management program, is to expand and advance its global business. The company accordingly plans to position the Sri City plant of Toray Industries (India) as a base for serving the Indian, Southeast Asian, and other markets around the world.

As MRC informed earlier, BASF and Toray Advanced Composites have inked a manufacturing and supply agreement for the supply of continuous fibre reinforced thermoplastic (CFRT) tapes. Under the terms, Toray will make CFRT tapes using BASF's Ultramid engineering thermoplastics.

Butadiene is one of the main raw materials for the production of acrylonitrile butadiene styrene (ABS).

According to the ICIS-MRC Price Report, because of low prices in Asia in August, ABS imports to Russia amounted to 3.600 tonnes compared to 2,800 tonnes a month earlier and 2,700 tonnes in August last year. According to the results of January - August, the import of ABS in the Russian Federation did not change relative to the same period last year and amounted to 21,900 tonnes.

MRC

Saudi Aramco to supply agreed volumes, grades to Reliance in October

MOSCOW (MRC) -- Saudi Aramco will supply agreed grades and volumes to India’s Reliance Industries in October after the world’s top oil exporter had to provide alternate heavier grader due to drone attacks on its oil installations, reported Hellenic Shipping News with reference to a spokesperson at the Indian company.

The Sept. 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 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.

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.

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.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

Saudi Arabia restored production to over 9.9 million b/d

MOSCOW (MRC) -- Saudi Arabia has restored its oil production to more than 9.9 million b/d and the country has started replenishing some of the crude stocks that were tapped in the immediate wake of the attacks on its key oil facilities, reported S&P Global with reference to the head of Aramco's trading division.

"Our system was able to grow and become healthier as we moved along and by September 25, we were able to restore all the capacity we had before the attack," the president and CEO of Aramco Trading Co., Ibrahim al-Buainain, told an industry banquet in Fujairah.

"On the 25th we reached the (9.9 million b/d) target, actually. Most of you are aware we have spare capacity. So we are actually a little higher than this," he said.

With production fully restored, Aramo was able to start replenishing some of the inventories that it used in the four or five days immediately after the attack, he said.

Armed drones and missiles attacked Saudi Aramco's largest crude-processing facility at Abqaiq and its key Khurais oil field on September 14 in a strike which initially took some 5.7 million b/d of production offline.

Buainain said "not one single shipment" to any of Aramco's customers were missed or canceled as a result of the attack, proving how resilient Saudi oil infrastructure is.

"Our system was able to grow and become more healthier as we moved along ... it made us more stronger," he said. "The rapid response and recovery of production serves to demonstrate that Saudi Aramco is far more resilient than anyone could have imagined."

As MRC reported earlier, 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.

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. Meanwhile, 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

Repsol forms lubricants joint venture to expand in Asia-Pacific

MOSCOW (MRC) -- Repsol signed the purchase agreement for a 40% stake in the Singapore-based lubricants manufacturer United Oil Company, which will manufacture and supply Repsol’s brand of products in Singapore, Indonesia, Malaysia and Vietnam, said Euro-petrole.

The agreement will allow Repsol to increase its presence in Southeast Asia, one of the world’s largest and fastest-growing lubricants markets with sales of 3 million metric tons per year and an annual growth rate of 4%.

Southeast Asia, and particularly Indonesia, are key target markets for growth, fitting in with the Strategic Plan 2018–2020 goals to increase the international expansion of the Downstream Unit. Repsol aims to be a top-five player in Indonesia thorough the capabilities incorporated in this partnership.

The deal represents a third regional manufacturing hub to the ones Repsol already has in Spain and Mexico. United Oil Company has two lubricants plants, in Singapore and Indonesia, with total capacity of 140,000 metric tonnes.

The joint venture unveiled today plans to upgrade United Oil Company’s existing manufacturing plant in Indonesia and expand the network of dealers and distributors though a targeted sales and marketing drive. The alliance with United Global Limited will provide immediate access to new customer segments due to the complementary nature of both companies’ brands and product lines.

The partnership in Asia adds to the joint venture created last year with Bardahl of Mexico, completing the foundations for the company’s immediate strategic growth goals. Repsol aims to double its lubricants sales volumes to 300,000 metric tonnes, with 70% sourced from international business units.

Repsol has allocated 1.5 billion euros in investments for the period 2018–2020 for the growth of its Downstream unit, specifically its service stations, petrochemicals and lubricants businesses.

The agreement signed today is subject to the fulfillment of standard authorizations for this type of transaction.

As MRC informed earlier, Repsol resumed operations at its cracker in Sines, Portugal. The news was not directly confirmed by the company while it was not clear as of the time of press whether or not Repsol lifted a force majeure at the site. The company had declared the force majeure on the output from its cracker due to a technical glitch in early September.

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.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC

Bahrain says oil refinery unaffected by Saudi attacks

MOSCOW (MRC) -- Bahrain’s oil refinery has not been affected by attacks that disrupted Saudi crude exports earlier this month, reported Reuters with reference to Bahrain’s Oil Minister Sheikh Mohammed bin Khalifa al-Khalifa.

Bahrain’s oil imports from Saudi Arabia have now returned to normal, the statement said.

Some units in the oil refinery are under maintenance, reducing its capacity, but reserves of oil products are sufficient to meet clients’ needs in the long run, 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.

Besides, as MRC reported earlier, 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.

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. Meanwhile, 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