HIPS and GPPS imports to Belarus rise by 12% in Jan-Sep 2019

MOSCOW (MRC) -- Overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Belarus grew in the first three quarters of 2019 by 12% year on year to 28,800 tonnes, according to MRC's DataScope report.

This figure was at 25,800 tonnes in January-September 2018.


GPPS and HIPS imports from Russia into the country accounted for 81% of the total imports in the first nine months of 2019 or 23,500 tonnes, up by 2,700 tonnes year on year.

Imports of material to the Belarusian market did not change significantly in September, totalling 3,400 tonnes, as a year earlier. September GPPS and HIPS shipments into the country dropped by 4% from August 2019 (3,600 tonnes).

September 2019 imports of Russian material into Belarus decreased by 4% year on year to 2,900 tonnes from 3,000 tonnes a year earlier, August 2019 shipments were 2,900 tonnes.

MRC

HDPE production in Russia down by 8% in Jan-Oct 2019

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) totalled 729,500 tonnes in the first ten months of 2019, down by 8% year on year. Two producers out of three reduced their output, according to MRC's ScanPlast report.


October total HDPE production in Russia decreased to 34,300 tonnes, whereas this figure was 45,900 tonnes a month earlier. Low output in September-October was caused by shutdowns for maintenance at Stavrolen and Kazanorgsintez. Thus, overall HDPE production reached 729,500 tonnes in January-October 2019, compared to 795,900 tonnes a year earlier. A slight increase in Kazanorgsintez's production could not offset the decrease in the two other producers' output.

The structure of polyethylene (PE) production by plants looked the following way over the stated period.


Kazanorgsintez's total HDPE production fell to 16,700 tonnes in October from 32,300 tonnes a month earlier. The Kazan producer shut down its production for a turnaround from 26 September to 20 October. The Kazan plant's overall HDPE output reached 418,200 tonnes in January-October 2019, up by 1% year on year.

Stavrolen produced 7,100 tonnes last month, compared to 3,400 tonnes in September, the Budyonovsk producer shut its production capacities for maintenance from 6 September to 18 October. The plant's overall output reached 221,300 tonnes over the stated period, down by 8% year on year.

Gazprom neftekhim Salavat maintained high capacity utilisation in October, the plant's total production grew to 10,500 tonnes from 10,200 tonnes a month earlier. The Bashkir plant's overall HDPE production reached 87,500 tonnes in the first ten months of 2019, down by 13% year on year. Such a great reduction in HDPE production was caused by a long turnaround in July, whereas the Salavat producer did not shut its production capacities for maintenance last year.

Nizhnekamskneftekhim produced exclusively linear low density polyethylene (LLDPE) over the stated period.

MRC

Exxon aims to sell USD25 billion of assets to focus on mega-projects

MOSCOW (MRC) - Exxon Mobil plans to sell up to USD25 billion of oil and gas fields in Europe, Asia and Africa in its biggest asset sales for decades, seeking to free up cash to focus on a handful of mega-projects, according to three banking sources, said Reuters.

The sell-off would be a marked acceleration of the U.S. oil major’s previous divestment plans. It would represent an ambitious attempt by Chief Executive Darren Woods to catch up with competitors who carried out sweeping portfolio reviews and sold swathes of assets following the 2014 market crash.

Exxon’s shares have underperformed its major rivals’ in recent years. The disposals would help the company increase spending on new developments and appease investors unhappy with weak cash generation and oil output, which flatlined under Woods’ predecessor Rex Tillerson.

The sales would see Exxon effectively quit its upstream oil and gas business in Europe, according to the three banking sources with direct knowledge of the plans. They would free up cash to invest in new developments in Guyana, Mozambique, Papua New Guinea, Brazil and the United States.

In recent months, the Texas-based company has drawn up an extensive list of assets that it wants to divest, spanning at least 11 countries, the sources said.

The list, details of which have not been previously reported, would easily exceed its current divestment target which envisages it selling about USD15 billion of assets by 2021.

Exxon has struck a number of deals in recent months including a USD4.5 billion exit from Norway, and is also already offering assets in Australia, Nigeria, Malaysia.

The expanded plan will see Exxon also sell out of operations in the British North Sea, Germany and Romania, according to the sources. In Europe, that would leave it with production only in the Netherlands, where it holds a stake with Royal Dutch Shell in the giant Groningen gas field which the government plans to shut down in 2022.

The new plan would also see Exxon significantly pare back operations in Southeast Asia with the sale of its assets in Indonesia and Malaysia, the sources said. In Africa, Exxon wants to sell its operations in Chad, Equatorial Guinea as well as parts of its Nigerian assets.

While Exxon is set to ramp up its spending sharply in the coming years to develop new oil and gas projects, most of its peers have more cautious spending plans due to an uncertain outlook for oil prices and growing pressure from investors to diversify away from fossil fuels toward renewables.

As MRC informed before, ExxonMobil Corp’s Baytown, Texas, chemical plant returned to normal operations on 15 November after a malfunction in the polypropylene (PP) production area.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Production sections in Syrias Banias refinery back to work after explosion

MOSCOW (MRC) -- The Syrian oil ministry said on Tuesday that all production sections in Syria’s Banias refinery, near the Mediterranean coast, are back to work after an explosion earlier this month, state news agency (SANA) reported, as per Hydrocarbonprocessing.

A worker was killed after the explosion broke out during maintenance operations in one of the production units of the refinery on Nov. 7.

As MRC informed earlier, a Dow Chemical plant near Plaquemine, Louisiana, in the US experienced an explosion on Sunday but there were no casualties. Dow Chemicals operations in Louisiana include the integrated manufacturing facility near Plaquemine and brine operations in Grand Bayou.

The Louisiana Operations has 23 production units manufacturing more than 50 different intermediate and specialty chemical products, such as chlorine and PE, that are used to produce cosmetics, detergents, solvents, pharmaceuticals, adhesives, plastics for a variety of packaging, automotive parts, and electronics components.

As MRC informed earlier, Dow Chemical shut its ethylene cracker No. 3 at its Plaquemine, Louisiana site with the annual production of 758,000 mt for expansion from mid-September to end-November 2016. After the restart this cracker can produce by 250,000 mt of ethylene more than before.

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.
MRC

Global refiners raise cleaner shipping fuel output ahead of IMO 2020

MOSCOW (MRC) -- Global oil refiners have upgraded processing units and adjusted operations to raise output of low-sulfur residual fuels and marine gasoil (MGO) to prepare for stricter shipping fuel standards that kick in on Jan. 1, 2020, said Hydrocarbonprocessing.

The new International Maritime Organization (IMO) rules prohibit ships from using fuels containing more than 0.5% sulfur, compared with 3.5% through the end of December, unless they are equipped with exhaust-cleaning “scrubbers”.

The shipping industry consumes about 4 million barrels per day (bpd) of marine bunker fuels, and the rule changes will impact more than 50,000 merchant ships globally, opening a significant new market for fuel producers. Below is a summary of how top refiners have prepared.

The world’s largest refiner, Sinopec Corp has started very low-sulfur fuel oil (VLSFO) output at 10 refineries in China, including Zhenhai Refining and Chemicals Co, Jinling Petrochemical Co and Hainan Petrochemical Co. The company plans total VLSFO capacity of 10 million tonnes a year (about 180,000 bpd) by 2020.

It also plans to build a fleet of 100 barges over the next three years to supply cleaner fuels to ships.

PetroChina has pledged 4 million tonnes of VLSFO in 2020, likely from its Jinzhou, Jinxi and Dalian refineries in China’s northeast, and Guangxi refinery in the south.

PetroChina Fuel Oil Co Ltd has a license to supply ship fuel in Zhoushan on China’s east coast. Total plans to supply marine fuel in Zhoushan in a joint venture with China’s Zhejiang Energy.

Top South Korean refiner SK Energy, a unit of SK Innovation, started supplying MGO from October. It can produce up to 27,000 bpd of marine gasoil, about 8% of its total gasoil output. SK is also building a vacuum residue desulphurization (VRDS) unit that can produce 40,000 bpd of LSFO* due online in March or April 2020.

As MRC informed earlier, in April 2019, LyondellBasell announced that PetroChina will use the LyondellBasell Hostalen "Advanced Cascade Process" technology to produce 1,100,000 metric tons per year of high density polyethylene (HDPE) capacity. Licensor selection had been done by China HuanQiu Contracting & Engineering Co., Ltd. (HQC), a wholly owned subsidiary of PetroChina. The low-pressure slurry process technology will be used for a 300,000-mt/year HDPE unit to be built in Korla City, Xinjiang Province, a 400,000-mt/year plant in Jieyang City, Guangdong Province and a 400,000-mt/year plant in Yulin City, Shaanxi Province in the P.R. China.

We also remind that PetroChina Co, Asia’s largest oil and gas producer, reported a sharp fall in third-quarter profit on Wednesday, dragged down by weaker global energy prices and slowing growth in its domestic gas market.

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.
MRC