MOSCOW (MRC)--Shell signed a new USD10bn revolving credit facility, with interest and fees paid on the facility linked to the company’s carbon footprint, said Refiningandpetrochemicalsme.
"This is an innovative deal which also demonstrates Shell’s broad-based commitment to reducing the net carbon footprint of the energy products we sell,"” said Russell O’Brien, group treasurer at Shell.
Shell aims to reduce the net carbon footprint of the energy products it sells by around 50% by 2050 and by 20% by 2035, in line with the 2015 Paris climate pact. The credit facility is also linked to the new SOFR, or “Secured Overnight Financing Rate".
The company made the switch to SOFR in anticipation of the cessation of the London Interbank Offered Rate (LIBOR), which is being phased out in the wake of the so-called "LIBOR scandal".
The USD10bn unsecured revolving credit facility consists of a five-year, USD8bn revolving credit facility, and a one-year, USD2bn facility.
The facility is provided by a syndicate of 25 banks. It replaces Shell’s existing USD8.84bn revolving credit facility.
As MRC informed before, Shell Singapore was to restart its naphtha cracker in Bukom Island last week following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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