Chinese Jan natgas consumption sees first contraction in 2 years

MOSCOW (MRC) -- China's Jan natgas consumption sees first contraction in 2 years, said Reuters.

China's natural gas consumption in January saw its first year-on-year contraction in at least two years, data compiled by Chongqing Petroleum and Gas Exchange, a government-backed energy trading platform, showed on Monday.

Last month, the country consumed 31.6 billion cubic metres (bcm), down 1% from a year earlier.

The decline was stoked by a 14% fall in demand from industrial users and a 10% drop from power utilities, offsetting an increase from city gas users and chemical producers.

Several analysts have cut their forecasts for gas demand in China, the world's top gas importer, as the coronavirus outbreak in the country is expected to depress industrial, commercial and transportation appetite for the fuel over the next few months.

The total natural gas supply, not including stored gas, reached 29 bcm, with domestic gas output up 1% on-year and gas imports down 3.2%, according to the Chongqing Exchange.

The bourse also expects a supply glut in the natural gas market in February and March, with average daily consumption down 6.2% and 11.2%, respectively, from a year earlier.

Official data release on China's gas imports for January has been postponed until March.

As MRC informed earlier, China Council for the Promotion of International Trade (CCPIT) announced in a statement that it would offer force majeure certificates to Chinese businesses affected by the coronavirus outbreak.

As MRC informed earlier, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% this year, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- Japan's largest refiner JXTG Nippon Oil & Energy has decided to terminate its refining operations at the 115,000 b/d Osaka refinery in western Japan and turn the facility into an asphalt-fueled power plant in October 2020, reported S&P Global with reference to the company's statement.

As MRC informed earlier, JXTG Nippon Oil & Energy bbrought on-stream, its fluid catalytic cracker (FCC) unit in Japan in early-August, 2019. The unit was shut for maintenance, on June 10, 2019. Located at Sendai, Japan, the FCC unit has a propylene capacity of 100,000 mt/year.

Propylene is a feedstock for production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

The Nippon Oil Corporation, or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including olefines (ethylene, propylene) and aromatics.
MRC

MOSCOW (MRC0 -- Japan's JXTG Nippon Oil and Energy Corp Monday shut the sole 120,000 b/d crude distillation unit at its Marifu refinery in western Japan for scheduled maintenance on January 20, reported S&P Global with reference to a company official's statement.

The turnaround will last until late March, the official said.

As MRC wrote before, JXTG Nippon Oil & Energy bbrought on-stream, its fluid catalytic cracker (FCC) unit in Japan in early-August, 2019. The unit was shut for maintenance, on June 10, 2019. Located at Sendai, Japan, the FCC unit has a propylene capacity of 100,000 mt/year.

Propylene is a feedstock for production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

The Nippon Oil Corporation, or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including olefines (ethylene, propylene) and aromatics.
MRC

MOSCOW (MRC) -- Major producer SK Advanced is planning to delay the restart of its 600,000 mt/year propane dehydrogenation (PDH) plant at Ulsan, South Korea from early March to mid-March, reported S&P Global.

The plant was shut January 28 for a 30-day turnaround.

As MRC informed before, SK Advanced last undertook an emergency shutdown at its PDH plant at Ulsan on November 16, 2019 owing to a technical issue. The unit was brought on-stream on November 20, 2019. Located in Ulsan, South Korea, the plant has a propylene production capacity of 600,000 mt/year.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

SK Advanced, a joint venture of South Korea's largest LPG supplier SK Gas and Advanced Petrochemical Company (APC) of Saudi Arabia.
MRC

MOSCOW (MRC) - PetroChina exported first batch of very low sulphur fuel oil (VLSFO) after China waived consumption taxes and granted rebates on value-added taxes on the clean marine fuels, as per Reuters.

The 5,300 tonnes of VLSFO was produced by PetroChina's Liaohe refinery and was put into a bonded storage, managed by China Marine Bunker Co, via Dalian customs.

The tax waiver helps PetroChina to save around 2 million yuan (USD286,426.26).

As MRC informed earlier, PetroChina, China’s second state refiner, is reducing refinery crude throughput by about 320,000 barrels per day this month versus its original plan as a spreading coronavirus hits fuel demand. PetroChina started the production cuts at the beginning of the month, but deepened the cuts from Monday, said the official with direct knowledge of the matter. The February cut is equivalent to about 10% of the refiner’s average production rate at around 3.32 million bpd.

As MRC informed earlier, polypropylene (PP) futures in China fell 5.99% on Monday due to concerns about a high level of material stocks in the market amid weak demand and limited supplies. So, PP futures for May 2020, most actively traded on the Dalian Commodity Exchange (DCE), on February 3 were at the level of CNY6 903 (USD983) per ton. Since the price reached the bottom, the auction closed that day. The Chinese market was closed from January 24 to February 2 due to the extension of the celebration of the Lunar New Year by the Chinese government.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC