Sinopec ZRCC resumes PP production in China

MOSCOW (MRC) -- Sinopec Zhenhai Refinery and Chem (ZRCC), has restarted its No. 3 polypropylene (PP) unit following a turnaround, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the unit on April 17, 2020. The unit was shut for maintenance on April 7, 2020.

Located at Ningbo city in Zhejiang province, China, the No. 3 PP unit has a production capacity of 350,000 mt/year.

As MRC wrote before, Sinopec ZRCC has also unexpectedly shut its high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant and monoethylene glycol (MEG) plant due to technical glitches on its ethylene unit on 16 April, 2020. Based in Zhenhai, China, the plant has a 450,000 tons/year HDPE/LLDPE plant and 650,000 tons/year MEG plant. Both plants are expected to remain shut for 7 days.

According to MRC's ScanPlast report, 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.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

MOSCOW (MRC) -- With operations on six continents and in over 30 different countries, Bangkok-headquartered petrochemicals giant Indorama Ventures is seeing at close hand the public health and well-being issues caused by the COVID-19 outbreak around the world, said Sustainableplastics.

In response, the company has been providing support to communities and people where the company operates in the belief that ‘we will soon overcome this crisis together,’ said Richard Jones, senior vice president and head of Corporate Communication and Sustainable in a statement released by the company.

“At Indorama Ventures, we recognize that employees are essential to the company’s existence. We have provided health and safety measures worldwide to keep our employees secure since the beginning of the COVID-19 spread. We also act to support medical personnel, patients and affected people in this difficult situation. Our contributions help relieve suffering by managing access to resources that are urgently needed until the gradual unwinding of this pandemic," he declared.

To date, the contributions, in the form of everything from masks, gloves and ventilators to food and funds, have been delivered in eight countries - Thailand, America, France, India, Brazil, Lithuania, Poland and the Czech Republic, and the company will continue to offer additional support through group companies in other countries.

In Thailand, Indorama Ventures donated two million Baht - almost €58,000 - through the IVL Foundation, in support of COVID-19 medical treatment to the Ramathibodi Foundation and King Chulalongkorn Memorial Hospital. These funds will contribute to treating patients and the purchase of supplies, including medicine, medical equipment and utilities that help prevent the further spread of COVID-19.

The company also supplied sanitary necessities - PPE, soap, shampoo, hand sanitiser and fabric masks - to Ramathibodi Hospital, Siriraj Hospital, Chulalongkorn Hospital, Thammasat University Hospital, and Bamrasnaradura Infectious Diseases Institute, which are key institutions handling the COVID-19 outbreak.

Indorama Ventures’ Thai operations, Indorama Polyester Industries PCL in Nakhon Pathom and TPT Petrochemicals in Rayong supported their local communities, offering disinfecting services, food, digital thermometers and more, in the fight against coronavirus.

As MRC reported previously, in February 2019, IVL commenced production of purified terephthalic acid (PTA) and polyethylene terephthalate (PET) at plants it acquired from Artlant PTA in Portugal and EIPET in Egypt. IVL completed the acquisition of the 700,000-t/y PTA facility, located at the Sines industrial complex, in Late 2017. Value of the transaction, which included all equipment, surface rights and employment contracts, was not disclosed.

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.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017. The company is listed in the Dow Jones Sustainability Index (DJSI).
MRC

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