HDPE imports to Russia up by 44% in Jan-Oct 2019

MOSCOW (MRC) -- Imports of high density polyethylene (HDPE) into Russia grew in January-October 2019 by 44% year on year. Pipe grade and film grade polyethylene (PE) accounted for the greatest increase in imports, according to MRC's DataScope report.


October HDPE imports fell to 28,200 tonnes from 34,500 tonnes a month earlier, with Uzbek HDPE accounting for the main decrease. Overall HDPE imports reached 295,100 tonnes in the first ten months of 2019, compared to 204,400 tonnes a year earlier, PE imports rose in all consumption sectors, with film grade and pipe grade HDPE accounting for the largest increase in shipments.

Imports of pipe grade PE grew almost by two-fold year on year in the first ten months of 2019 to 45,800 tonnes. Producers from Saudi Arabia and South Korea accounted for the bulk of shipments.


Imports of film grade HDPE reached 105,400 tonnes versus 65,300 tonnes a year earlier. Uzbekistan has been the key supplier in this segment for the past years.

Injection moulding HDPE accounted for the least increase in imports, totalling slightly over 53,000 tonnes over the stated period versus 46,800 tonnes a year earlier. Producers from Uzbekistan, the UAE and Thailand are the main suppliers.

MRC

Motiva takes over Flint Hills Texas chemical plant

MOSCOW (MRC) -- Motiva Enterprises, the US refining arm of Saudi Aramco, acquired 100% of Flint Hills Resources chemical plant, adjacent to its Port Arthur, Texas, oil refinery, reported Agraam.

The Flint Hills plant operates a 1.57 billion-pound-per-year ethylene cracker, a unit producing nylon component cyclohexane, and a network of pipelines and storage caverns.

Saudi Aramco, in its IPO prospectus, said the cash payment will be determined as per the project value at SAR 7.13 billion (USD1.9 billion). An independent advisor started assessing Flint Hills’ assets and liabilities to determine the purchase price.

In August, Motiva Enterprises signed an agreement to buy Flint Hills Resources chemical plant. The deal would extend Saudi Aramco's push to grow its petrochemical operations in Texas and elsewhere.

Moreover, as MRC informed earlier, in April 2019, Houston-based Motiva announced it would refurbish two empty, historic buildings in downtown Port Arthur for use as offices. It also has filed documents with the state to build a USD5 billion steam cracker that would produce ethylene.

Besides, the company is evaluating opportunities to build a new polyethylene (PE) line within its proposed steam cracker and aromatics project in Jefferson County, Texas. The new PE capacity will be located at the company’s Port Arthur Refinery Complex in Jefferson County, Texas. The planned capacity of the unit was not specified, while the value of the project is reportedly estimated at around USD3.1 billion.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Motiva Enterprises, LLC, is a fully owned affiliate of Saudi Refining Inc. and headquartered in Houston, Texas, United States with revenue of USD24 billion. Previously, it was a 50–50 joint venture between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining Inc. (controlled by Saudi Aramco).
MRC

Shanghai Golden Phillips restarts HDPE production in Shanghai after turnaround

MOSCOW (MRC) -- Shanghai Golden Phillips Petrochemical Co, part of Sinopec, has brought on-stream its high density polyethylene (HDPE) plant, after a maintenance turnaround, as per Apic-online.

A Polymerupdate source in China, informed that, the company halted operations at the plant on October 22, 2019, and restarted this unit on November 13, 2019.

Located in Shanghai, China, the HDPE plant has a production capacity of 140,000 mt/year.

As MRC wrote before, in 2018, Shanghai Golden Phillips Petrochemical resumed operations at its HDPE plant in Shanghai on September 12, 2018. The plant was shut for maintenance turnaround on August 14, 2018.

According to MRC's ScanPlast report, Russia's September estimated HDPE consumption fell to 70,570 tonnes from 108,320 tonnes a month earlier. Russian producers reduced their output due to maintenance works, whereas imports were high partially because of an increase in US shipments. The estimated HDPE consumption totalled 862,170 tonnes in January-September 2019, up by 7% year on year. HDPE imports increased by 47%, whereas production dropped by 5% due to a long period of maintenance works at three production capacities.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

PP imports to Russia dropped by 4% in January - October 2019

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia slumped by 4% year on year to 152,100 tonnes in the first ten months of 2019.
The greatest decrease in imports accounted for homopolymer PP, according to MRC DataScope.

October PP imports into the Russian market decreased to 14,900 tonnes from 17,100 tonnes a month earlier, supply of PP block copolymers from Europe dropped. In general, total PP imports into the country decreased to about 152,100 tonnes in January - October compared with 158,500 tonnes year on year. The volume of external purchases for all grades of polymers of propylene decreased, with the exception of PP block copolymers, with the most noticeably reduced imports of homopolymer PP.

Overall, the structure of PP imports by grades looked the following way over the stated period.

October imports of homopolymer PP into the country were 5,000 tonnes, which practically the same as in September. Thus, overall imports of homopolymer PP to Russia totalled 48,200 tonnes in the ten months of 2019, compared to 55,200 tonnes a year earlier.

October imports of PP block copolymers in Russia were about 3,700 tonnes against 6,000 tonnes in September on decreased demand for extrusion PP. Imports of PP block copolymers into Russia reached 46,900 tonnes in January-October 2019, compared to 39,900 tonnes a year earlier.

October imports of PP random copolymers remained in the level of September at about 3,000 tonnes. Total imports of PP random copolymers in Russia were 26,900 tonnes in January - October 2019, compared with 29,600 tonnes year on year.

Russia's imports of other polymers of propylene for the period were about 30,000 tonnes in the first ten months of the year, compared with 33,900 tonnes year on year.

MRC

Aramco starts IPO pricing with valuation of as much as USD1.706 trillion

MOSCOW (MRC) -- Saudi Aramco said Sunday it started pricing of its initial public offering in a range of 30 SAR to 32 SAR (USD8 to USD8.53) per share, indicating a company valuation of as much as USD1.706 trillion, as per S&P Global.

Crown Prince Mohammed bin Salman had been seeking a valuation for the world's biggest oil and gas company of USD2 trillion. Saudi Arabia's government currently owns all of Saudi Aramco's 200 billion shares outstanding.

The IPO will sell a 1.5% stake, Aramco said in an emailed statement. The listing will raise USD25.6 billion for the kingdom, if it ends up with a final price of 32 SAR.

Individual investors will subscribe based on the 32 SAR price, and if the final price is below that, they can get a refund in cash or get additional shares, according to the statement. Bid forms by institutional subscribers need to be sent in by December 4, it said.

Individual investors must submit their forms by November 28 and the final offer price will be announced on December 5.

The IPO is the centerpiece of the crown prince's Vision 2030 to diversify the Saudi economy away from oil.

S&P Global Ratings said in a report on Thursday that the revenue raised by the IPO, most of which will go into the Saudi Public Investment Fund, could "help maintain growth potential through our three-year ratings horizon."

S&P Global Ratings forecasts Saudi Arabia's GDP to grow 1.6% on average per year from 2019 to 2022.

As MRC informed earlier, last week, Saudi Aramco approached Malaysian state energy company Petronas to participate in Aramco’s IPO, Petronas said, as the Middle Eastern oil giant seeks cornerstone investors for the listing.

Besides, we remind that 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 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% 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