Trump administration close to finalizing biofuel policy change

MOSCOW (MRC) -- The Trump administration is close to finalizing a package of measures to adjust the policy mandating the use of biofuels, two sources familiar with the matter said and is aiming to get the final deal signed by President Donald Trump, said Hydrocarbonprocessing.

Sources said the deal is unlikely to include a price cap for the trading of the biofuel credits, a measure that has been advocated by the oil industry.

As MRC informed earlier, U.S. President Donald Trump has tentatively approved a plan to increase the amount of biofuels that oil refiners are required to blend each year to compensate for exemptions handed out to small refiners by the Environmental Protection Agency.

The plan is intended to address a major source of anger in U.S. farm country as Trump seeks to hold favor in the Midwest ahead of next year’s election, but it is likely to upset the oil industry, another important political constituency, underscoring the pitfalls of U.S. biofuel policy.
MRC

NOVA names Vermani senior VP, olefins

MOSCW (MRC) -- NOVA Chemicals named Rocky Vermani senior vice president, olefins and feedstock, said the company.

NOVA Chemicals Corporation announced that Naushad Jamani, senior vice president, olefins and feedstock will retire effective October 31, 2019 after a distinguished 40-year career at NOVA Chemicals and predecessor companies. Rocky Vermani, previously vice president, olefins feedstocks has been appointed to the role of senior vice president, olefins and feedstock and a member of the NOVA Chemicals Management Board, effective October 1, 2019.

During his tenure, Jamani was instrumental in diversifying the company’s feedstock portfolio by taking advantage of conventional and new sources of ethane, including gaining additional access to the U.S. Gulf Coast, and securing NOVA Chemicals as the first mover for Marcellus Shale ethane. In 2006, he was promoted to vice president olefins, commercial, overseeing the sales, marketing, logistics and customer service for olefins products within NOVA Chemicals. In 2016, he was appointed to the NOVA Chemicals Management Board as senior vice president, olefins and feedstock where he has been responsible for leading the olefins business.

A tireless advocate for NOVA Chemicals’ industry, Jamani served as the chairman of the Resource Diversification Council and held a seat on the Board of Directors for the Chemistry Industry Association of Canada, working to shape public policy that supports innovation, investment, jobs and the environment within Canada.

Vermani was previously vice president, olefins and feedstock. His appointment becomes effective on 1 October.

He will replace Naushad Jamani, who will retire from NOVA on 31 October after 40 years with the company.

NOVA said Jamani was instrumental in diversifying the company's feedstock to take advantage of new sources of ethane, made possible by the advent of shale gas in the US.

As MRC informed before, in June 2019, Chevron Phillips Chemical Company, a joint venture between Chevron Corp and Phillips 66, offered to acquire Nova Chemicals Corp for more than USD15 billion including debt.

We also remind that in January 2017, NOVA Chemicals Corporation, a leading supplier of polyethylene in the Americas, announced the start up of its new world-scale linear low density polyethylene (LLDPE) gas phase reactor at its Joffre, Alberta site.

According to MRC's ScanPlast report, 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%.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.
MRC

Husky Energy to sell Prince George Refinery

MOSCOW (MRC) -- Husky Energy announced it has reached an agreement for the sale of its Prince George Refinery to Tidewater Midstream and Infrastructure for USD215 million in cash plus a closing adjustment for inventory, and a contingent payment of up to USD60 million over two years, as per Hydrocarbonprocessing.

Husky previously announced it was considering selling the Prince George Refinery to focus on its Integrated Corridor and Offshore businesses. The Integrated Corridor is a series of physically-linked assets that includes upstream thermal crude production, storage, committed pipeline capacity and refineries. The Integrated Corridor is designed to maximize margin capture, access to markets and optionality. The Offshore business focuses on oil and gas production off Canada’s East Coast and in the Asia Pacific region.

"We continue to deliver on Husky’s five-year plan outlined at our Investor Day in May, with an ongoing focus on capital discipline, consistent execution and increased margins," said CEO Rob Peabody. "The plan is aimed at further enhancing the resiliency of the Company."

Proceeds of the sale will be used in accordance with Husky’s funding priorities, which include maintaining the strength of the balance sheet and returning value to shareholders.

Tidewater is retaining all Refinery staff.

The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals.

The 12,000 barrel-per day Prince George Refinery, located in Prince George, B.C., processes light oil into low-sulfur gasoline and ultra-low sulfur diesel, along with other products. As part of the sale, Husky will enter into a five-year offtake agreement with Tidewater for refined products from the Prince George Refinery.

The strategic review of Husky’s retail and commercial fuels business continues to progress.

TD Securities Inc. is acting as financial advisor, with Torys LLP as legal advisor.

As MRC wrote before, in July 2019, Cambridge, AVEVA, a global leader in engineering and industrial software, 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.

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.
MRC

BP chief executive Bob Dudley retires, to be succeeded by Bernard Looney

MOSCOW (MRC) -- The Board of BP announced today that, after a 40-year career with BP and over nine years as group chief executive, Bob Dudley, 64, has decided to step down as group chief executive and from the BP Board following delivery of the company’s 2019 full year results on 4 February 2020 and will retire on 31 March 2020, said the company.

The Board is also pleased to announce that Bernard Looney, 49, currently chief executive, Upstream, will succeed Dudley as group chief executive and join the BP Board on 5 February 2020. Looney will continue in his current role until this date.

These decisions are the result of a comprehensive and deliberate search process, including consideration of a range of internal and external candidates. The process was led by Helge Lund, senior independent director Sir Ian Davis and remuneration committee chair Paula Rosput Reynolds, a working group of the Board’s nomination and governance committee.

As MRC informed earlier, BP is in the midst of overhauling a 65,000 bpd gasoline-producing fluidic catalytic cracking unit at the refinery Whiting, Indiana. Work on the unit in mid-September and was expected to take about a month to complete.

As MRC informed before, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) have announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies have agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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.
MRC

Sabic gets regulatory approvals to merge SADAF, Petrokemya

MOSCOW (MRC) -- Saudi Basic Industries Corporation (SABIC) announced yesterday that it has obtained the relevant regulatory approvals to merge its wholly-owned affiliate Saudi Petrochemical Company (SADAF) with all the assets, rights, liabilities and obligations in its wholly-owned affiliate Arabian Petrochemical Company (PETROKEMYA), said Menafn.

According to Saudi Stock Exchange (Tadawul), the merger is driven by SABIC's strategy to increase efficiency and competitiveness of its operations. The transaction is not expected to have immediate material impact on SABIC's financial position but will improve cost competitiveness in the long term. As of the merger, Sadaf no longer exists as an independent entity.

SADAF’s operations, located in Saudi Arabia’s Al-Jubail industrial zone, include ethanol, mixed xylenes, ethylbenzene and caustic soda production.

Petrokemya’s product lines include benzene, butadiene, ethylene, butadiene, polystyrene and polyvinyl chloride, with units also based in Al-Jubail.

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 Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC