Equatorial Guinea announces USD1 B in energy projects, two refineries

MOSCOW (MRC) - Equatorial Guinea announced plans to build two new oil refineries among other energy projects worth USD1 billion, its energy minister was quoted as saying, in a bid to diversify a sector that provides more than 90% of its foreign revenue, said Reuters.

Minister of Mines and Hydrocarbons Gabriel Obiang Lima said the new refineries would process 30,000-40,000 barrels per day (bpd) of crude oil including from the key Zafiro offshore field, said a statement from the Africa Oil Power Conference held in the capital Malabo this week.

Other plans include more oil product storage infrastructure, a methanol-to-gasoline plant and the expansion of a liquefied natural gas (LNG) project, the statement added.

"Phase two is the investment year ... For many years, we have been exploiting our resources and exporting them, but now is the time that we get to the stage of processing," Obiang Lima said, citing 10 new public-private partnerships the country hopes will attract foreign investment.

Equatorial Guinea, a member of the Organization of the Petroleum Exporting Countries, has struggled to attract investment to stem steady declines in production as newer players such as Mozambique and Namibia garner interest.

U.S. oil major Exxon Mobil plans to shed its operations in the country along with USD25 billion worth of other assets worldwide as it seeks to free up cash to focus on a handful of mega-projects.

Equatorial Guinea on Tuesday awarded an offshore bloc with the related Fortuna gas development project to Russia's Lukoil and national oil firm GEPetrol after the concession was reclaimed from Ophir Energy Plc this year.

Recipients of other blocs included U.S.-based Noble Energy as well as Nigeria's Walter Smith, which picked up a concession relinquished by Marathon oil.

The World Bank projected the country's output would decline by over three percent in 2019, warning it was vulnerable to volatile oil prices and needed to improve its business climate in order to diversify its economy and better distribute wealth.

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

MOSCOW (MRC) -- The fire at a petrochemical plant that prompted thousands of people to flee from four Texas communities burned for a third day on Friday with officials huddling as investigations were launched, reported Reuters.

The fiery blast at a TPC Group facility on Port Neches, Texas, on Wednesday injured three workers, blew locked doors off their hinges and was felt in communities far from the site. The plant makes chemicals used in production of synthetic rubber, resins and an octane-boosting component of gasoline.

Firefighting crews continued to battle the blaze on Friday, according to TPC, and local mayors, fire officials were called to a meeting with the region's top executive. Federal and state investigators were searching for the cause of the blaze and a Texas pollution regulator criticized the spate of such fires.

About 60,000 residents in four communities near the site were ordered to leave their homes Wednesday afternoon when a major, secondary blast prompted fears of flames reaching large storage tanks of the petrochemicals.

Butadiene is one of the feedstocks for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICIS-MRC Price report, in Asia, the falling prices of feedstocks for ABS production have been pushing prices of material down in the Russian market. LG Chem's import prices for November quantities were as follows for Russian buyers: natural ABS - at USD1,400-1,420/tonne FOB Korea, black ABS - at USD1,610-1,630/tonne FOB Korea, white ABS - at USD1,640-1,660/tonne FOB Korea. December prices may drop by another USD30-50/tonn.
Natural grades of Korean ABS went down to Rb138,000-143,000/tonne CPT Moscow, including VAT, in the domestic market in mid-November, whereas black ABS was offered at Rb156,000-160,000/tonne and white ABS - at Rb158,000-163,000/tonne CPT Moscow , including VAT.

Headquartered in Houston, TPC was acquired in 2012 by private equity groups First Reserve and SK Capital.
MRC

MOSCOW (MRC) -- The Polymer Additives division of Polymer Solutions Group (PSG) has been sold for an undisclosed amount in a deal involving two New York City-based private equity firms, said Canplastics.

The Jordan Co. has acquired the division from Arsenal Capital Partners.

Headquartered in Cleveland, Ohio, PSG’s Polymer Additives division supplies homogenizing agents, process aids, dispersions, and release agents for the rubber, plastic, and engineered wood industries. The division operates five plants.

PSG’s other division, the Calhoun, Ga.-based Functional Materials division, will remain with Arsenal.

"My team and I are excited to be working with Jordan as we build out our global platform, grow our release agent market position, and continue to expand the market for our advanced technology SureMix performance process aids for silica rubber compounding,” PSG polymer additives CEO Mike Ivany said in a statement.

"The company’s culture, innovative product development and long-standing customer relationships make PSG Polymer Additives a strong fit for our investment strategy,” Ian Arons, a partner with Jordan Co., said.

As MRC informed earlier, Milliken Chemical (Spartanburg, South Carolina) says its clarifying agent for polypropylene (PP), Millad NX 8000, has received Critical Guidance Recognition from the Association of Plastics Recyclers (APR) for its compatibility with plastic packaging recycling. Milliken says the product is the first and, to date, only PP clarifying agent to be so recognized.

MRC

MOSCOW (MRC) -- PQ Group Holdings Inc., a leading, global provider of specialty catalysts, materials, chemicals and services, has announced an agreement with INEOS Polyolefin Catalysts to commercialize certain polyethylene catalysts to customers of selected processes, according to Ineos' press release.

"This collaboration will expand PQ’s current catalyst product offering to its customers. In addition, it will enable PQ to access new customers through an enhanced product offering and associated technical support.

"We are very excited about the collaboration with INEOS, one of the global leaders in polyolefin catalyst technology, and believe there is considerable growth and synergy potential through access to additional customers, technology and resources,” said Belgacem Chariag, PQ President and Chief Executive Officer. “Catalysts continues to be a strategic growth platform for PQ and this agreement represents a key step forward in support of that strategy."

INEOS Polyolefin Catalyst CEO, Iain Hogan, said, "Our principal strategy remains to maintain and develop our catalyst offering and support services within our core area of expertise and customer base. This collaboration with PQ allows us to broaden our knowledge and breadth of products with a well-respected partner in their own field. It’s a win-win for both companies, but particularly for our customers that get access to a more comprehensive product offering."

PQ’s Catalyst segment currently produces silica catalysts and supports that are critical in the production of polyethylene resins used in packaging films, bottles, and containers and other molded applications, as well as other catalyst products. PQ also produces a catalyst used in the manufacture of MMA, a scratch-resistant plastic used to replace glass and as a durable surface coating. These catalysts also reduce the energy needed for the manufacture of plastics with less waste.

As MRC reported earlier, in October 2019, INEOS Olefins & Polymers Europe announced a range of bio-attributed olefins and polyolefins, based on renewable bio based raw materials that do not compete with food production. Products will be supplied from the Ineos Koln site, Germany, later this year.

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.

Ineos is a global manufacturer of petrochemicals, speciality chemicals and oil products. It comprises 34 businesses each with a major chemical company heritage. Its network spans 183 sites in 26 countries throughout the world.
MRC

MOSCOW (MRC) -- Saudi Aramco has received bids for its shares totaling USD44.3 billion so far, lead manager Samba Capital said on Friday, putting its initial public offering on track to be over-subscribed, said Reuters.

The state-owned oil giant plans to sell 1.5% of the company’s shares for as much as 96 billion riyals (USD25.6 billion), a deal which would give it a market value of USD1.7 trillion.

Overall demand so far totals 1.7 times the amount of shares on offer, with institutional investors having until Dec 4 to put their bids in.

In the first update on institutional investor interest in the listing, Samba said it had received bids from them worth 118.86 billion riyal(USD31.70 billion).

The retail tranche of the offering - which closed to subscribers on Thursday - has had bids totaling 47.4 billion riyals (USD12.64 billion), around 1.5 times the amount of shares on offer to retail investors. While comfortably oversubscribed, the level of interest is relatively muted compared to other Saudi IPOs.

When Saudi Arabia’s National Commercial Bank listed in 2014 the retail portion was 23 times over-subscribed.

As MRC informed earlier, ith Saudi Aramco yet to name any major foreign investors in its upcoming share sale, Malaysia’s state energy company Petronas decided to take a pass. Petronas follows Russia’s second largest oil producer Lukoil in turning its back on the initial public offering (IPO) which is likely to rank Aramco as the world’s most valuable company.

Petronas and Aramco have a joint venture in a USD27 billion refinery and petrochemicals complex in southern Malaysia that is set to start commercial operations this year.

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.
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