Saudi Aramco IPO coming soon

MOSCOW (MRC) -- The initial public offering of Saudi Aramco - the company that is preparing to sell up to a 5% stake - will happen soon, reported S&P Global with reference to the country's energy minister's statement on Wednesday.

The Aramco IPO is "going to come soon. It will come at the right time with the right approach and definitely with the right decision, and it will be a Saudi decision, specifically by [Crown] Prince Mohammed," Prince Abdulaziz bin Salman told delegates attending the Future Investment Initiative conference in Riyadh.

He didn't provide further details.

Saudi-owned Al Arabiya TV channel reported on Tuesday that the local listing of Aramco will take place on December 11, with a final flotation price set to be announced on December 4.

The country's Capital Market Authority will announce the launch of Aramco IPO on November 3, according to an article on the TV's website citing unnamed sources on Tuesday. The report didn't mention the size of the stake to be listed on the local exchange, known as Tadawul.

Saudi Crown Prince Mohammed bin Salman has said he wants a local and an international listing for Aramco, which he has valued at USD2 trillion, but some analysts are skeptical the company could fetch such a price.

Saudi officials have yet to choose an international jurisdiction for Aramco, but Aramco CEO Amin Nasser has said the local listing will be the "primary" one.

The IPO, which was supposed to take place in 2018, was delayed partly to allow Aramco to finalize the $69 billion acquisition of a 70% stake in SABIC, the Middle East's largest petrochemical company, Saudi officials had previously said.

The Aramco IPO is a cornerstone of the Crown Prince's Vision 2030, the economic road map to wean the kingdom off oil income.

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.
MRC

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to Kazakhstan remained in the January-August 2019 at the last year's level, totalling 4,600 tonnes, according to MRC's DataScope report.

August EPS imports into the country grew by 42% from July to 590 tonnes. This figure was at 420 tonnes in July, whereas imports of material to Kazakhstan was 630 tonnes in August 2018.

Russia and China with the share of 67% (3,090 tonnes) and 32% (1,470 tonnes) of the total imports, respectively, are the main EPS importers to Kazakhstan.
MRC

MOSCOW (MRC) -- Russia's production of polyethylene (PE) totalled about 1,384,000 tonnes in the first nine months of 2019, which virtually corresponds to the same figure of 2018. PE output by grades both increased and decreased, according to MRC's ScanPlast report.

September total PE production in Russia was slightly over 110,000 tonnes versus 152,220 tonnes a month earlier, lower production was caused by shutdowns for maintenance simultaneously at three plants. Thus, overall PE output reached 1,348,400 tonnes in January-September 2019, compared to 1,344,700 tonnes a year earlier. Linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) production increased, whereas production of high density polyethylene (HDPE) decreased.

The structure of PE output by grades looked the following way over the stated period.

Last month's HDPE production was about 45,880 tonnes, compared to 78,100 tonnes a month earlier, such a significant decrease in the output was caused by the shutdowns for maintenance at the two largest producers - Kazanorgsintez and Stavrolen. Overall HDPE production exceeded 695,200 tonnes in the first nine months of 2019, down by 5% year on year.

September low density polyethylene (LDPE) production dropped to 46,000 tonnes from 52,200 tonnes a month earlier because of the shutdowns for turnarounds at Tomskneftekhim and Kazanorgsintez. Overall LDPE output reached 479,200 tonnes over the stated period, up by 2% year on year.

Last month's LLDPE production grew to 18,100 tonnes from 14,900 tonnes in August, Nizhnekamskneftekhim was forced to reduce its capacity utilisation in the last month of summer due to technical issues. The two plants' overall LLDPE output totalled slightly over 174,000 tonnes in January-September 2019, up by 22% year on year.

MRC

MOSCOW (MRC) -- JV between China and Oman aims to build first polyethylene (PE) pipe factory in Oman, reported Plastemart.

The factory is expected to be completed in about 10 to 12 months, with actual production expected to start in Q3-2020.

A ground-breaking ceremony was held at the Special Economic Zone of Duqm ( 550 km south of the capital Muscat)for building Oman's first factory to produce reinforced PE pipes in August 2019.

The project is a Chinese-Omani partnership owned by Hongtong Duqm Pipes Company, which holds 51% stake, Blue Ocean International holds 44% and Daoud Alfarsi holds 5% stake.

As MRC wrote previously, the state-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) is conducting a planned maintenance at its polypropylene (PP) unit in Sohar, Oman during October. Maintenance work at 340,000 tons/year PP unit is scheduled to start on 6 October and it will last until the end of November.

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.
MRC

MOSCOW (MRC) --Inner Mongolia Jiutai Energy Co Ltd has restarted its polypropylene (PP) and polyethylene (PE) plants, reported CommoPlast with reference to market sources.

The company shut down its PP on 8 October, 2019, due to plant issue.

Based in Inner Mongolia, China, its coal-based 320,000 tons/year PP plant restarted by 15 October 2019, meanwhile its coal-based 280,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant had a brief turnaround on 12-14 October 2019.

As MRC informed before, Jiutai Energy started commercial production at its new coal-to-polyethylene in September 2015. The plant began to operate at normal rates from December 2015. Located at Erdos, Inner Mongolia region in China, the new PE plant has a production capacity of 300,000 mt/year.

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.
MRC