US and China sign phase one of trade deal

MOSCOW (MRC) -- The US and China signed what they billed as the first phase of a broader trade pact on Wednesday amid persistent questions over whether President Donald Trump’s efforts to rewrite the economic relationship with Beijing will ever go any further, reported Bloomberg.

The deal commits China to do more to crack down on the theft of American technology and corporate secrets by its companies and state entities, while outlining a USD200 billion spending spree to try to close its trade imbalance with the US. It also binds Beijing to avoiding currency manipulation to gain an advantage and includes an enforcement system to ensure promises are kept.

The ceremony in a packed East Room at the White House included Trump, dozens of American business people and US lawmakers and Chinese officials and marked a rare moment of friendship lately between the world’s two largest economies. Acrimonious talks stretching back almost three years have roiled financial markets, cast a cloud of uncertainty over investment decisions and hurt growth in both nations.

"This is a very important and remarkable occasion," Trump said. Fixing what he sees as the injustices of past trade deals is "probably the biggest reason why I ran for president," he added. "Together we are righting the wrongs of the past."

In a letter to Trump read out at the ceremony, Chinese leader Xi Jinping said the deal proved the two sides could work together to bridge their differences and declared it “good for China, the US and the whole world."
President Trump Holds Signing Ceremony Of Trade Agreement Between US And China Phase One

The benchmark S&P 500 set an intraday record for the sixth consecutive trading session, finishing short of an earlier all-time intraday high. Stocks in Asia were mixed Thursday, with shares in Hong Kong largely flat.
Economic Dialogues

The deal, sealed on the same day the House voted to refer articles of Trump’s impeachment to the Senate, seems most focused on arriving at peace in the trade war. Among its requirements is a resumption of the economic dialogues that past administrations have held with China.

But the new pact has already been criticized for what is missing. It does nothing to address areas like what U.S. authorities have long claimed is China’s state-backed hacking of American companies and government institutions. Nor does it require the Asian power to reform the vast web of state subsidies that form the spine of its model of state capitalism and have helped fuel the rapid growth of Chinese companies internationally.

The administration says many of those issues will be covered in a second phase of a deal, though when those talks will begin and how long they will take remains uncertain. In the meantime, the US is also set to maintain tariffs on roughly two-thirds of imports from China, something that Trump on Wednesday said was essential as leverage over the country until it agreed to further reforms.

As MRC informed before, after weeks of high-level discussions, the US and China agreed to simultaneously lift existing trade tariffs on each other’s goods in phases in November 2019.
MRC

PVC exports from Russia up by 11% in 2019, imports more than doubled

MOSCOW (MRC) -- Exports of suspension polyvinyl chloride (SPVC) from Russia totalled 193,700 tonnes in 2019, up by 11% year on year. Imports increased more significantly - by 217% year on year - to 50,900 tonnes, according to MRC's DataScope report.


Last month's exports of Russian suspension (excluding shipments to the countries of the Customs Union) were 15,200 tonnes, compared to 13,900 tonnes in November. Some producers increased their exports in the past three months of 2019 due to a seasonal decrease in demand for resin from the domestic market. Thus, overall exports of resin from Russia totalled 193,700 tonnes in 2019 versus 174,000 tonnes a year earlier.

Indian buyers were the main foreign importers of Russian resin in 2019. Overall sales of resin exceeded 105,000 tonnes over the stated period. Belarus and Poland with shipments of 26,700 tonnes and 15,500 tonnes, respectively, occupied the second and third positions.


July accounted for the peak of imports of resin, which totalled 13,700 tonnes, because of scheduled shutdowns for maintenance at SayanskKhimPlast and Bashkir Soda Company' production capacities. After the planned outages, imports of polyvinyl chloride has gradually declined since September. Last month's SPVC imports were 2,400 tonnes, which is comparable to November.

Overall imports of material totalled 50,900 tonnes over the stated period versus 16,100 tonnes a year earlier.

MRC

Fire at China petchem plant in Zhuhai put out, no casualties reported

MOSCOW (MRC) -- Firefighters put out a fire at China’s Zhuhai Changlian Petrochemical Co Ltd in southern China’s Zhuhai city, an independent producer that has recently won government quotas to import naphtha, reported Hydrocarbonprocessing.

A fire broke out at 1:40 pm local time (0540 GMT) at the company’s hydrogenation unit. Video broadcast by state television showed flames and dense smoke rising from the plant.

No casualties were reported, local government said on its microblog, without saying if any of the production facilities have been shut.

The company declined to comment when contacted by Reuters.

Zhuhai Changlian, a subsidiary of Guangdong-based private firm Shenzhen Esson New Energy Group, is one of the four independent petrochemical firms granted quotas to import naphtha for 2020, a feedstock to make petrochemicals.

Zhuhai Changlian Petrochemical operates a plant at this sitme, which can produce 40,000 tonnes/year of benzene; 280,000 tonnes/year of mixed xylene; and 150,000 tonnes/year of toluene at the site.

Benzene is the main feedstock for the production of styrene monomer (SM), which, in its turn, is used in the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 458,770 tonnes in the first eleven months of 2019, which corresponds to the level of 2018. November estimated consumption of PS and styrene plastics rose by 2% year on year, totalling 49,210 tonnes. PS production remained in January-November 2019 the same as a year earlier. Russian producers manufactured 471,390 tonnes of material in the first eleven months of 2019.

Zhuhai Changlian Petrochemical Equipment Co., Ltd. is an enterprise in China, with the main office in Zhuhai. It operates in the Basic Chemical Manufacturing sector. The company was established on August 20, 2003. There are currently 240 (2018) people employed by Zhuhai Changlian Petrochemical Equipment Co., Ltd.. In its most recent financial highlights, the company reported a net sales revenue increase of 15.41% in 2018. There was a total negative growth of 1.57% in Zhuhai Changlian Petrochemical Equipment Co., Ltd.’s total assets over the same period. In, 2018, the company’s net profit margin decreased by 0.67%.
MRC

Shell New Energies boss Gainsborough to step down

MOSCOW (MRC) -- Royal Dutch Shell's New Energies boss Mark Gainsborough will step down in April and be replaced by Elisabeth Brinton, who joined the business in 2018 and will oversee the company's plans to expand its low-carbon and power business, said Hydrocarbonprocessing.

Gainsborough, a 39-year Shell veteran, set up Shell's New Energies four years ago as the oil and gas company faces heavy investor pressure to meet the 2015 Paris climate agreement to limit global warming.

He will leave the company at the end of the year, he said in a post on his LinkedIn page. A Shell spokeswoman confirmed the moves.

Brinton, a Silicon Valley and utility industry veteran, joined Shell in 2018 and is currently vice president for strategy at New Energies, according to her LinkedIn page. She will take over on April 1.

The Anglo-Dutch company has made a number of large investments in renewables, electric vehicle technologies and power markets under Gainsborough, including acquiring British utility First Utility, European electric vehicle battery charging firm NewMotion and a stake in U.S. solar power provider Silicon Ranch.

Shell plans to invest USD2 to USD3 billion a year on its power and low-carbon business compared with an overall spending budget of USD30 billion per year between 2021 and 2025.

The company's growth plans in the sector were dealt a blow last month when it failed to acquire Dutch renewable energy business Eneco which went to a group led by Japan’s Mitsubishi Corp for 4.1 billion euros.

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 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.

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.
MRC

Chevron, Shell win blocks in Egyptian maiden Red Sea licensing round

MOSCOW (MRC) -- Chevron and Shell have been awarded oil and gas exploration concessions in Egypt's first ever Red Sea licensing round, the country's petroleum ministry said Sunday, according to S&P Global.

Chevron was awarded Block 1 and Shell Block 2, while Block 4 was awarded jointly to Shell and the UAE's Mubadala Petroleum, the ministry said.

The three blocks cover a total exploration area of around 10,000 sq km and carry combined minimum investment commitments of USD326 million, the petroleum ministry said, adding that potential investment would rise to "several billion dollars" if discoveries were made.

Egypt was offering 10 blocks in its maiden Red Sea licensing round covering more than half of its Red Sea maritime shelf which borders with Saudi Arabia. The Chevron and Shell blocks are in the northern sector of the Red Sea and no other bid winners were announced for the remaining seven blocks.

The ministry remained upbeat over future Red Sea exploration, however, saying the interest of western oil majors "constitutes a positive and important indication of the attractive investment climate in Egypt."

"The necessary investments for exploration and development...and the lack of production facilities, indicates the eagerness of Chevron," the ministry said. "In addition to Shell, it is a good indicator...that confirms the continued expansion of the size of investments in the petroleum sector and contributes to increasing the chances of success."

In February, a 2D seismic survey in the Red Sea led by Schlumberger concluded there was a 70% chance of natural gas discoveries in the area, according to local media reports. In September, Schlumberger and TGS reimaged 3,600 sq km of legacy seismic data on the Egyptian Red Sea to support interest in the licensing round.

"The underexplored offshore Egyptian Red Sea area is made up of large, untested structures that offer exceptional growth opportunities for oil companies," TGS CEO Kristian Johansen said at the time.

Egypt's plans to explore for oil and gas in the Red Sea received a fillip in 2017 when it ratified a maritime demarcation agreement with Saudi Arabia, which saw the North African country cede sovereignty over two uninhabited Red Sea islands to Saudi Arabia.

A long-running dispute with Sudan over control over the so-called Halayeb Triangle to the south, however, continues to hang over Egypt's latest exploration drive.

In March, Sudan's oil minister Saad el-Deen el-Bushra called the Red Sea licensing round an "illegal operation" and threatened legal consequences for companies involved in the round. The Halayeb triangle, which is controlled by Egypt, has been claimed by Sudan since the 1950s.

The blocks awarded to Chevron and Shell are well outside the disputed maritime waters.

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

We also remind that in March 2018, Chevron Phillips Chemical Company LP, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.

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.
MRC