HPCL-MRPL merger plan yet to reach board level

MOSCOW (MRC) -- HPCL's proposed plan to acquire the Mangalore Refinery and Petrochemical Led (MRPL) for synergy is yet to reach board level discussions, reported EconomicTimes with reference to the company's CMD M K Surana.

"We are working on that. Earlier we have said that makes a synergy for HPCL and we are working with the ONGC for this. It is work in progress. It has not reached the board stage and once finalized, it will go to the three boards - HPCL, MRPL and ONGC," Hindustan Petroleum Corporation Ltd Chairman and Managing Director Surana told IANS on the sidelines of India Economic Summit here.

In August, ONGC Chairman and Managing Director Shashank Sekhar had said the proposed merger of its two subsidiaries - HPCL and MRPL - would happen next year.

ONGC had acquired HPCL by buying out the entire government stake of 51.11 per cent by paying Rs 36,915 crore. HPCL holds 16.93 per cent and ONGC has 71.63 per cent.

The proposed consolidation exercise has seen HPCL reluctant to give parent status to ONGC soon after the government exited HPCL by selling its stake. HPCL, for quite some time, did not recognize ONGC as its promoter.

As MRC wrote before, in March 2018, HMEL received clearance from India’s ministry of environments for the polymer addition project at its Guru Gobind Singh refinery and Petrochemical complex. The proposed units at the petrochemical complex include a 1.2m tonnes/year naphtha cracker, two linear low density polyethylene/high density polyethylene (LLDPE/HDPE) swing plants of 400,000 tonnes/year capacity each. The complex, in Bhatinda region of Punjab province, will also house a 450,000 tonnes/year HDPE unit, a 500,000 tonnes/year polypropylene (PP) plant and a 55,000 tonnes/year butane-1 line.

In December 2018, it became know that HPCL-Mittal Energy Limited, or HMEL, will start its new 500,000 mt/year PP plant in Bhatinda in 2021.

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.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC

October prices of European PVC grew by EUR5-20/tonne for CIS markets

MOSOCW (MRC) - Negotiations on European polyvinyl chloride (PVC) prices for October delivery to the CIS markets began last week. Raw materials in Europe grew in price, and many local producers increased PVC export prices, according to the ICIS-MRC Price Report.

The October contract price of ethylene was agreed up by EUR20/tonne from September, which theoretically should lead to an increase of EUR10/tonne in PVC production costs.

Due to the increase in the cost of the main raw material - ethylene, many European producers raised their export prices for PVC for supply to the markets of the CIS countries in October, but the price increase is disproportionate in some cases and amounts to EUR5-20/tonne to the September price.

The demand for PVC from consumers from the CIS countries in October, as well as a month earlier, is low, many consumers reduced their purchases, since they expect a seasonal reduction in demand for finished products in November. Some producers had restrictions for export shipments because of shutdowns, but they were not critical for most buyers.

Several producers intend to achieve an increase in export prices by EUR20/tonne compared to September, but some consumers report that they managed to limit the price increase to EUR5/tonne. But in general, deals for October shipments of suspension PVC (SPVC) to the CIS markets were held in the range of EUR700-785/tonne FCA.
MRC

DFE Chemical to bring on-stream PS plant in Manila by mid-October

MOSCOW (MRC) -- DFE Chemical is in plans to restart its polystyrene (PS) plant following an unplanned outage, according to Apic-online.

A Polymerupdate source in the Philippines informed that the company is likely to resume operations at the plant in mid-October, 2019. The plant was shut in 2H August 2019 owing to bearish market conditions.

Located in Manila, the Philippines, the plant has a production capacity of 30,000 mt/year.

As MRC wrote before, DFE Chemical restarted its PS plant in Manila following a maintenance turnaround on April 2, 2018. The plant was shut for maintenance in mid-December 2017.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 39,130 tonnes in July 2019, down by 1% year on year (39,600 tonnes in 2018). Consumption of PS and styrene plastics in the country was 287,370 tonnes in January-July 2019, up by 2% year on year.
MRC

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