Cameron LNG begins final commissioning stage of train 3

MOSCOW (MRC) -- Sempra LNG, a subsidiary of Sempra Energy, announced that Cameron LNG has entered the final commissioning stage for the Phase 1, three-train liquefaction-export project in Hackberry, La., as it began introducing pipeline feed gas flow to the third and last liquefaction train, according to Hydrocarbonprocessing.

"Cameron LNG is a huge success story and a great tribute to what this organization and its people are capable of," said Lisa Glatch, chief operating officer of Sempra LNG and board chair for Cameron LNG. "We are proud of Sempra LNG's development of this project as well as Cameron LNG's employees and contractors who have built and are operating this facility. With a commitment to health and safety first, the commissioning and startup of Train 3 will help meet demand from global markets for cleaner and more secure energy sources."

Approximately 88 million hours have been worked without a lost-time incident and 58 liquefied natural gas (LNG) cargoes have been shipped from the facility.

Following authorization received from the Federal Energy Regulatory Commission allowing the introduction of pipeline feed gas, Cameron LNG began ramping up the feed gas deliveries to the third train as it completes the commissioning process. Commercial operation of Train 3 remains on track to begin in the third quarter of 2020.

Phase 1 of the Cameron LNG export project includes three liquefaction trains that will enable the export of approximately 12 million tonnes per annum (Mtpa) of LNG or approximately 1.7 billion cubic feet per day.

Cameron LNG is jointly owned by affiliates of Sempra LNG, Total S.A., Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.

Sempra Energy's share of full-year run-rate earnings from the Phase 1 project is anticipated to be between USD400 million and USD450 million annually starting in 2021 when all three trains are in commercial operations under Cameron LNG's tolling agreements.

Sempra LNG is also developing four other LNG export projects in North America, including Cameron LNG Phase 2, Port Arthur LNG in Texas, and Energia Costa Azul LNG Phase 1 and Phase 2 in Mexico, with the goal of developing infrastructure capable of producing 45 Mtpa of LNG to export to world markets, which would make Sempra Energy one of North America's largest developers of LNG-export facilities.

The successful development and ultimate construction of Sempra Energy's LNG export projects are subject to a number of risks and uncertainties and there can be no assurance that any of these projects will be completed.

We remind that Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.
MRC

MOSCOw (MRC) -- Due to protection measures against coronavirus, consumers no longer bring their durable bags to supermarkets, said Turkish Plastic Industrialists Research, Development and Education Association (PAGEV).

According to Yavuz Eroglu, the president of PAGEV, consumers increasingly prefer single-use plastic bags during these pandemic days.

"In our factories, the production of plastic bags increased by 25% over the past month. In certain product groups, this is even higher." said Eroglu.

In the early days of the pandemic, Turkish Trade Ministry announced a new decision on the mandatory use of plastic bags in groceries and bakeries.

Last year, Turkey issued a regulation in order to reduce to consumption of plastic bags. According to this, single-use plastic bags are subject to a fee of 0,25 Turkish Lira (0,03 Euro). However, this could be a burden on some people, Eroglu contends.

"People now use plastic bags in supermarkets and they pay for that. Even if they cost little, some people may not be able to afford them. That poses a high risk to public health. We contacted the ministry and asked for a removal of this fee. The officials are now considering our proposal."

Turkey is the second largest producer in Europe following Italy. "Turkey is the third largest exporter in the world after China and Italy. Factories continue to produce single-use plastic materials and meet both domestic and global demands," said Eroglu. Turkey's top export market for single-use plastics is Israel with a share of 25%. Israel is followed by France, UK and the US.

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.

MRC

MOSCOW (MRC) -- Oil rose on Thursday, spurred by rising tensions in the Middle East, output cuts by producing nations to tackle oversupply and the promise of more government stimulus to ease the economic pain of the new coronavirus pandemic, reported Reuters.

Brent crude was up US1.60, or 7.8%, at USD21.97 per barrel by 1123 GMT. US crude rose USD1.74, or 12.6%, at USD15.52 a barrel.

Oil prices have suffered one of their most tumultuous weeks.

The expiring WTI front-month contract on Monday fell into negative territory for the first time as traders paid buyers to take crude off their hands given a lack of storage space due to the current supply glut.

Brent has lost roughly two thirds of its value this year.

Concerns about the collapse in demand because of travel restrictions to contain the coronavirus pandemic and a shortage of space to store oil still dominate, but analysts say they do not expect a repeat of Monday’s price shock.

The rally on Thursday followed an announcement from U.S. President Donald Trump he had instructed the US Navy to fire on any Iranian ships that harass it in the Gulf, although he added later he was not changing the military’s rules of engagement.

The head of Iran’s Revolutionary Guards said Tehran will destroy US warships if its security is threatened in the Gulf.

"This ratchets up tensions once again between the US and Iran. However, given the glut we have in the oil market, it is difficult to see this offering lasting support to the market, unless the situation does escalate further," ING’s head of commodities strategy Warren Patterson said.

Output cuts by producers also supported prices. Kuwait said it had begun reducing oil supply to the international market without waiting for the deal agreed by major oil exporting countries to take effect on May 1.

OPEC and other oil producing nations, a grouping known as OPEC+, agreed this month to cut output by a record amount, around 10% of global supply, to support oil prices.

"It is questionable that bringing forward the planned output restraint by a week would make a material difference, especially as no demand consolidation is anticipated in the current quarter," PVM Oil Associates analyst Tamas Varga said.

In addition to the OPEC+ deal, other producers are also pledging reductions. Oklahoma’s energy regulator said companies could shut wells without losing their leases. The state is the fourth-largest oil producer in the United States.

US crude inventories rose by 15 million barrels to 518.6 million barrels the week to April 17, close to the record of 535 million barrels set in 2017, data showed on Wednesday.

The stocks build was less than the market had expected, analysts said, providing some support for prices, while the promise of more government stimulus improved market sentiment across global markets.

The US House of Representatives expects to pass a nearly USD500 billion coronavirus relief bill on Thursday to provide funds to small businesses and hospitals.

As MRC informed earlier, global oil consumption cut by up to a third. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

We remind that earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We also remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- U.S. petroleum consumption has fallen by a third since the economy went into lockdown in March but showed signs of stabilizing last week, according to the latest weekly figures from the U.S. Energy Information Administration, said Hydrocarbonprocessing.

Lockdown has caused the biggest economic interruption since the depression of the 1930s and the largest interruption in oil consumption since the birth of the modern petroleum industry in the 1860s.

The challenge now is for domestic oil producers, importers and refiners to adjust to a prolonged period of lower consumption and bring the increase in inventories under control before storage space runs out.

The total volume of petroleum products supplied to the domestic market averaged 14.1 million barrels per day (bpd) in the week ending on April 17 (“Weekly petroleum status report”, EIA, April 22).

The total volume was essentially the same as a week earlier (13.8 million bpd) but down by around a third compared with five weeks ago before the lockdown began (21.5 million bpd).

In response to lower demand, U.S. refiners cut crude processing to 12.5 million bpd last week, down from 15.8 million bpd five weeks ago and 16.5 million bpd at the same point a year ago.

U.S. crude imports slowed to just 4.9 million bpd last week from 6.5 million bpd five weeks earlier, one of the fastest declines in the last decade, and were running at the slowest rate since 1992.

But the refining system is still struggling to digest the enormous volume of unprocessed crude that has accumulated since the economy went into freefall and to limit the build up of unsold fuels.

As mRC informed earlier, Plastics companies operating in the Klaipeda Free Economic Zone (FEZ) have been fortunate. The impact of the COVID-19 outbreak has so far been limited. In fact, they report increasing demand, the opening up of new product and sales segments, and a renewed sense of worth in the eyes of society. The flip side, to date, has been the impact on turnover of falling raw materials and oil prices. Klaipeda. FEZ is the largest plastics hub in the Baltics. It is home to 5 companies active in the plastics industry, who together generated a total turnover of €890m in 2018, or nearly half of Lithuania's total for this industry.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC)-- ExxonMobil Corp has yet to make a final investment decision (FID) for the project in the Dayawan Industrial Park. The project still requires government permits, and ExxonMobil's own competitiveness appraisal, before FID can be reached, reported Argus with reference to ExxonMobil's statement.

ExxonMobil started early construction at its proposed Huizhou petrochemical complex in south China last Wednesday, which it targets to bring on line in 2023.

But last week's announcement that early-phase work has started represents some progress at the project, which was first announced in November 2017, just before US President Donald Trump visited China. US-China relations have deteriorated since then.

The complex will include a 1.2mn t/yr flexible feed steam cracker and downstream polyethylene (PE) and polypropylene (PP) plants that will produce material used in packaging, automotive, industrial and consumer products.

The Huizhou complex will use advanced proprietary technologies in direct crude steam cracking and performance polymers manufacturing. ExxonMobil would own 100pc of the project, which is relatively unusual for a foreign investment in China.

The company's presence in China includes a 25pc joint venture stake in a 240,000 b/d refinery and associated 800,000t/yr ethylene steam cracker in Quanzhou, in neighbouring Fujian province.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC