Gazprom Neft Moscow refinery launches new crude processing unit

MOSCOW (MRC) -- Russia’s Moscow Refinery, owned by oil producer Gazprom Neft, has launched a new crude oil processing unit with an annual capacity of 6 million tons, said Eco-petrol.

The unit, which was launched on March 16, would allow the refinery to maintain oil processing levels which otherwise were on track to fall by 600,000 tonnes next month due to planned maintenance works, the sources said.

Gazprom Neft did not immediately reply to a Reuters request for comment.

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 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.
The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.
Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.
MRC

Hungarrian MOL makes oil, gas discovery offshore Norway

MOSCOW (MRC) -- Hungarian producer MOL announced Wednesday a small oil and gas discovery in the Norwegian North Sea, reported S&P Global.

Preliminary evaluation of the main discovery in license 820S showed recoverable resources of 12 million-71 million barrels of oil equivalent with light oil at API 40 gravity, MOL said.

The discovery was successfully tested producing a combined oil and gas maximum flow rate of 3,463 boe/d due to limited by surface equipment, MOL said.

The main borehole and two sidetracks were drilled in 126 meters of water to a maximum depth of 2,652 meters below sea level. MOL also discovered smaller volumes of oil and gas in several other formations.

Norway, MOL's biggest exploration target, is where the company spent USD58 million across several offshore exploration licenses last year.

The latest discovery was "consistent with MOL's stated strategy of replenishing reserves through a combination of exploration and acquisitions," the company said.

MOL said it will now initiate a commercial feasibility evaluation phase, assessing the need for further appraisal wells, and looking at development options including a timeline for first production.

The 820S license, located 200 km west of Stavanger, is operated by MOL Norge with a 40% working interest, alongside Lundin Norway (40%), Wintershall Dea Norge (10%) and Pandion Energy (10%).

As MRC informed earlier, MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, on 23 September announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary).

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

MOL Hungarian Oil and Gas PLC is an integrated oil and gas company. The Company produces crude oil, petroleum products, bitumens, lubricants and natural gas. MOL owns and operates refineries, oil and gas pipelines, service stations, and natural gas storage facilities.
MRC

Enterprise to review 2020 capex program, declares distribution

MOSCOW (MRC) -- Enterprise Products Partners says it is reviewing its capital spending program due to the potential impacts of lower commodity prices and demand on customers, according to Seeking Alpha.

Enterprise says it is "evaluating opportunities to reduce or defer capital expenditures, as well as continuing to explore joint venture opportunities with strategic partners."

The company says it will provide specifics to its 2020 capex guidance with its Q1 results due on April 29.

Enterprise also declares a Q1 distribution of USD0.445/unit, a 1.7% increase over its year-ago distribution.

As MRC informed before, Enterprise Products Partners and LyondellBasell Industries said in September 2019 they had executed long-term contracts to support construction of EPD's second propane dehydrogenation plant at the Mont Belvieu, Tex. complex. The decision to build the PDH 2 plant stems from recently executed long-term polymer grade propane (PGP) supply contracts between Enterprise and LyondellBasell Industries N.V.

Besides, we remind that Enterprise Products Partners' Mont Belvieu PDH in Texas restarted from planned maintenance in the first week of December, 2019. The PDH unit went offline for maintenance on November 13, 2019. That day, the company said in a filing with the Texas Commission on Environmental Quality that the RAC "B" turbine shut down, which resulted in flaring. The flaring was estimated to last 72 hours. The unit has a capacity of 750,000 mt/year.

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

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Enterprise Products Partners L.P. is an American midstream natural gas and crude oil pipeline company with headquarters in Houston, Texas. It acquired GulfTerra in September 2004. The company ranked No. 105 in the 2018 Fortune 500 list of the largest United States corporations by total revenue
MRC

Shandong Jinling restarts No.2 PO unit in China after unscheduled outage

MOSCOW (MRC) -- Shandong Jinling Chemical, has brought on-stream its No.2 propylene oxide (PO) unit following an unplanned shutdown, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the unit on March 17, 2020. The unit was shut on February 12, 2020.

Located at Dongying, Shandong province of China, the No. 2 PO unit has a production capacity of 80,000 mt/year.

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

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Shandong Jinling Chemical Co. Ltd. manufactures chemical products. The Company produces and sells methane chloride, aniline, propylene epoxide, and other chlor-alkali products. Shandong Jinling Chemical also produces electricity and steam.
MRC

BP Zhuhai shuts No. 3 PTA plant in China for turnaround

MOSCOW (MRC) -- BP Zhuhai, part of BP PLC, has taken off-stream its No. 3 purified terephthalic acid (PTA) plant for a maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that, the company halted operations at the plant on March 14, 2020. The plant is slated to remain off-line for around two weeks.

Located at Zhuhai in China, the No.3 PTA plant has a production capacity of 1.25 million mt/year.

As MRC wrote previously, on July 3, 2015, BP celebrated the official start-up of the Phase 3 PTA plant of Zhuhai Chemical Co., enhancing its position in the PTA market and its long-term commitment in China. BP Zhuhai, in which BP and Zhuhai Port Co. hold an 85% and 15% stake respectively, is the leading Sino-foreign joint venture producing and marketing PTA in China. The completed Phase 3 plant, with a design production capacity of 1.25 million tonnes per year, is the world’s largest single train PTA unit, according to BP.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

As per MRC's ScanPlast report, the estimated consumption of polyethylene terephthalate (PET) in Russia increased in January 2020 by 9% year on year. Totally, Russia recycled 55,390 tonnes of PET chips in January (excluding shipments of Russian material to the countries of the Customs Union). PET chips production in Russian in January 2020 totalled 43,200 tonnes.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items
MRC