China 2019 annual crude imports set record for 17th year

MOSCOW (MRC) -- China’s crude oil imports in 2019 surged 9.5% from a year earlier, setting a record for a 17th straight year, as demand growth from new refineries built last year propelled purchases by the world’s biggest importer, reported Hydrocarbonprocessing with reference to data.

Last year, China imported a record 506 million tons of crude oil, according to data from the General Administration of Customs. That is equivalent to 10.12 million barrels per day (bpd), according to Reuters’ calculations based on the data.

Chinese crude imports have set records every year since 2003, according to customs data on Refinitiv Eikon.

December arrivals were 45.48 million tons, customs reported. That is equivalent to 10.71 million bpd, according to Reuters’ calculations, the third-highest ever on a daily basis and down from a record of 11.13 million bpd set in November.

The annual increase equates to 882,000 bpd in incremental purchases, largely because of demand from new plants that added 900,000 bpd to China’s oil-processing capacity, although some of the units started operating only in December.

December imports were boosted by private refiners using up their annual import quotas, while state plants stocked up on oil before the holiday shutdown that accompanies China’s Lunar New Year festival, which falls in late January this year.

“Chinese independent refineries, including two mega projects Hengli and Rongsheng, stepped up purchases before year-end to maximize the utilization of crude import quotas,” said Chen Jiyao, oil consultant at FGE.

However, state refiners likely slowed down opportunistic purchases amid elevated freight rates in October, resulting in slightly lower December arrivals, said Chen.

Last year marked the biggest penetration of private chemical companies into China’s refining business, after the emergence between 2016 and 2018 of smaller independent oil processors often known as “teapots”.

Hengli Petrochemical (600346.SS) and Zhejiang Petrochemical Corp, controlled by Zhejiang Rongsheng Holdings, each added 400,000 bpd in processing capacity, mainly focused on petrochemical output. That boosted China’s crude oil imports notably from Saudi Arabia, helping the kingdom reclaim its title from Russia as China’s top crude supplier.

Meanwhile, natural gas imports, including fuel supplied as liquefied natural gas (LNG) and via pipeline, were 9.45 million tons, the third-highest on record on a monthly basis.

The hefty December purchases included LNG imports that rose to a record last month with China overtaking Japan the world’s top importer of the fuel for the second month in a row.

Imports 2019 expanded 6.9% to 96.56 million tons, with the annual growth slowing from 31.9% recorded for 2018.

China’s gas consumption slowed last year as Beijing eased its coal-to-gas switching program amid a slowing economy and growth in domestic gas output.

Tuesday’s data also showed China’s refined fuel exports in 2019 rose 14.1% from a year earlier to a record 66.85 million tons as refinery throughput outpaced domestic fuel demand growth. December exports were 6.79 million tons.

China raised the volumes of its first batch of 2020 fuel export quotas by 53% from a year earlier to 27.99 million tons.
MRC

MOSCOW (MRC) -- The global economy is going into 2020 in better shape than last year, Sultan al-Jaber, the chief executive of Abu Dhabi National Oil Co (ADNOC) said, adding that he was pleased regional tension had dissipated in the past few days, said Reuters.

“The UAE will be the first country in the region to operate a safe commercial, peaceful nuclear power station,” Jaber also told an energy event in the capital, Abu Dhabi.

As MRC informed earlier, in June 2019, The Abu Dhabi National Oil Company (ADNOC) said its Ruwais Refinery West Cracker is offline for maintenance

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

MOSCOW (MRC) -- A fire broke out the Bharat Petroleum Corporation Limited's (BPCL) plant in Mahul area of suburban Chembur on Tuesday afternoon, reported NDTV with reference to an official's statement.

No casualty was reported in the accident, he said.

The blaze erupted around 12.40 pm in an air compressor at the main gate of the BPCL plant, an official at the city civic body's control room said.

Thick black smoke was seen emanating from the plant.

"It was a minor fire. No one was injured," the official said, adding that BPCL's staff immediately extinguished the blaze.

All agencies concerned, including the Mumbai Fire Bridge, were mobilised soon after getting information about the blaze, he said.

The cause of the fire was yet to be confirmed, he added.

As MRC informed previously, BPCL plans to set up a petrochemicals unit at its Bina refinery in Madhya Pradesh as part of its Rs25,000 crore expansion plan for the refinery. The petrochemical unit, which will include a 1.5 mln tpa naphtha cracker, is expected to cost Rs6,000-7,000 crore.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. Bharat Petroleum owns refineries at Mumbai, Maharashtra and Kochi, Kerala (Kochi Refineries) with a capacity of 12 and 9.5 million metric tonnes per year.
MRC

MOSCOW (MRC) -- Gazprom Export and Gazprom Armenia signed an additional agreement to the contract for Russian gas supplies to the Republic of Armenia, said the company.

In accordance with the agreement, the price of natural gas at the border between Georgia and Armenia will not change starting from January 1, 2020, and will remain at the level of 2019.

Gazprom Armenia, a wholly-owned subsidiary of Gazprom, is focused on natural gas supplies to the Armenian market. In addition, the company transports, stores, distributes and sells natural gas, as well as upgrades and expands the gas transmission system and underground gas storage facilities in the Republic of Armenia.

The contract between Gazprom Export and Gazprom Armenia for the supplies of up to 2.5 billion cubic meters of Russian gas per year will be in effect until the end of 2020.

As MRC informed earlier, Gazprom and Sinopec discuss potential avenues for cooperation. A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Li Yong, Vice President of China Petrochemical Corporation (Sinopec Group), took place in St. Petersburg. The parties discussed their potential areas of cooperation.

As MRC informed earlier, Gazprom Neft and the Abu Dhabi National Oil Company (ADNOC) have entered into a Framework Agreement on Strategic Cooperation. The companies will explore opportunities for implementing joint projects in the upstream and downstream sectors, as well as in information technologies, artificial intelligence, and other areas.

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

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased in 2019 by 26% year on year, totalling about 49,000 tonnes, whereas sales of Ukrainian PVC to foreign markets rose by 11% year on year, according to MRC's DataScope report.

Last month's SPVC imports into the Ukrainian market grew to 4,300 tonnes from 3,300 tonnes in November, with North American resin accounting for the increase in shipments from a windows and plastics producer. Overall imports of suspension reached 49,000 tonnes in 2019, compared to 66,100 tonnes a year earlier.

European producers with the share of about 64% of the total imports were the key suppliers of resin to the Ukrainian market in 2019. Producers from the USA with the share of about 36% were the second largest suppliers.
The Ukrainian producer's higher output allowed to increase exports. 12,900 tonnes of suspension were shipped to foreign markets in December, whereas this figure was 13,900 tonnes a year earlier. Overall, 163,300 tonnes of PVC were shipped for export in 2019 versus 147,500 tonnes a year earlier.

MRC