PP imports to Russia rise by 23% in Jan-Apr 2020

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia grew in first four months of 2020 by 23% year on year to slightly over 71,000 tonnes. Propylene homopolymers (homopolymer PP) accounted for the main increase in imports, according to MRC's DataScope report.

In April, Russian companies reduced their import deliveries partially because of the quarantine restrictions and the rouble devaluation, imports were 17,500 tonnes versus 21,500 tonnes a month earlier. Thus, overall PP imports to Russia exceeded 71,000 tonnes of propylene polymers in January-April 2020, compared to 57,900 tonnes a year earlier. Not all grades of propylene polymers accounted for the increase in purchasing in foreign markets, whereas imports of homopolymer PP rose noticeablly.

The overall structure of PP imports by grades looked the following way over the stated period.

April imports of homopolymer PP were 6,700 tonnes versus 9,800 tonnes a month earlier, shipments of injection moulding homopolymer PP from Azerbaijan slumped. Thus, overall imports of homopolymer PP totalled 29,100 tonnes in the first four months of 2020, compared to 18,900 tonnes a year earlier.

Last month's imports of propylene block-copolymers (PP block copolymers) were 5,400 tonnes versus 5,100 tonnes in March, demand for pipe grade PP remained strong from Russian companies. Imports of PP block copolymers into Russia reached 20,100 tonnes in January-April 2020, compared to 16,200 tonnes a year earlier.

April imports of stat-copolymers of propylene (PP random copolymers) decreased to 2,700 tonnes from 3,300 tonnes a month earlier, with films products manufactures accounting for the main reduction in shipments. Overall imports of this grade of propylene copolymers were 10,800 tonnes in January-April 2020, compared to 11,400 tonnes a year earlier.

Russia's imports of other polymers of propylene totalled about 11,000 tonnes in the first four months of the year, compared to 11,500 tonnes a year earlier.

MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 7% in the first four months of this year, compared to the same period in 2019 and reached about 14,300 tonnes. At the same time, sales of Ukrainian PVC to foreign markets dropped by 44% year on year, according to a MRC's DataScope report.

Last month's SPVC imports into the Ukrainian market decreased to 2,800 tonnes from 3,700 tonnes in March, plastic products producers cut purchases amid the spread of coronavirus. Overall SPVC imports reached 14,300 tonnes in January-April 2020, compared to 15,500 tonnes a year earlier. Weaker demand for PVC in the domestic market made some producers to increase exports in April.
The key suppliers of PVC to the Ukrainian market were producers from Europe, their share in total imports for the period under review amounted to about 80%. Producers from the USA with the share of about 19% were the second largest suppliers.

Last month, Karpatneftekhim had to increase export sales due to falling demand from the domestic market, the export sales of Ukrainian PVC amounted to 17,800 tonnes against 12,100 tonnes in March. Overall, about 72,300 tonnes were shipped for export in the first four months of 2020, compared to 50,100 tonnes a year earlier.
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1. India gas demand gradually picking up as virus restrictions ease

MOSCOW (MRC) -- India’s natural gas consumption is recovering slowly as the world’s biggest lockdown starts to ease with the gradual resumption of economic and industrial activity, reported Reuters with reference to several industry sources. Prime Minister Narendra Modi’s government is starting to pull back from one of the world’s tightest lockdowns of 1.3 billion people, which has left millions out of work and stranded in cities far from home while infections keep rising. The government has already allowed some economic activity to resume in areas where there are few cases of COVID-19, the disease caused by the coronavirus.


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MOSCOW (MRC) -- None of the big oil companies currently meet U.N. targets to limit global warming despite the most ambitious targets set by Royal Dutch Shell and Eni , reported Reuters with reference to the statement of investors managing USD19 trillion.

The Transition Pathway Initiative (TPI), which represents the investors and is co-chaired by the Church of England Pensions Board, called on all oil and gas producers to set both intensity-based and absolute emissions reductions targets so that the industry adheres to a common standard on ‘net zero’ emissions.

Burning of oil and gas accounts for the vast majority of the world’s carbon emissions. TPI, in a study of Europe’s biggest oil producers, singled out Shell and Italy’s Eni for making the broadest commitments to reduce greenhouse gases from all fuel products they sell, also known as Scope 3 emissions.

All European majors have committed to varying degrees of carbon reductions by 2050 to make their companies fit for a transition to a lower carbon economy. In marked contrast, U.S. oil giants lag far behind in terms of climate aims.

Shell has pledged to bring down its overall carbon intensity by 65%, Eni by 55% and BP by 50% by 2050. Intensity targets mean that absolute emissions can rise with increasing production.

Eni has also set itself a target to bring down its absolute emissions by 2050 by 80%.

Scope 3 emissions dwarf, typically by a factor of about six, direct emissions from operations and from the electricity a company uses, known as Scope 1 and 2 emissions.

BP and Spain’s Repsol have pledged to bring down their overall emissions to net zero by 2050, but this target does not cover fuel initially acquired from other producers and sold through their marketing businesses.

Most companies use the phrase ‘net zero’ carbon in some way to describe their ambitions, despite the varying pathways.

"We now need a net zero standard for the oil and gas sector," said Adam Matthews of the Church of England Pensions Board.

None of the companies had done enough to align with plans to keep global warming to below 2 degrees Celsius.

"Claims of ‘net zero’ or 1.5 C alignment are not substantiated by TPI’s analysis. Even the most ambitious new goals (Shell and Eni) are not aligned with a 2 C scenario using TPI’s intensity metric," TPI said in a report.

"Alignment with a Below 2 C scenario requires a 90% cut in emissions intensity (by 2050) while alignment with 1.5 C scenario requires a 100% reduction in net emissions (a genuine ‘net zero’ strategy)."

It added that only Eni had provided substantial detail on its use of nature-based offsets - an integral part of every group’s climate targets - to balance out emissions it cannot eliminate.

Austria’s OMV is the laggard with the least ambitious climate targets among big integrated European oil companies, TPI said, adding that it expected OMV to issue an update on its transition plans this year.

TPI also urged all groups to provide more detail on their carbon capture and storage renewables investment plans.

A spokesman for BP said: "What the world needs to meet the Paris goals are absolute reductions in emissions to net zero... We do not believe that carbon intensity alone is a reliable single measure of progress towards the Paris goals."

A Shell spokeswoman said "we need to look at the detail of this report, but we are pleased our ambition is recognised and we are confident our approach is aligned with the 1.5 degrees Celsius goal of the Paris Agreement."

An OMV spokesman said OMV had already achieved its 2025 targets and that it would set itself more ambitious climate protection goals.

Eni and Repsol did not immediately respond to requests for comment.

As MRC reported before, the ongoing transition to low-carbon energy sources may accelerate as economies recover from the impact of the coronavirus crisis, said the head of oil and gas company Royal Dutch Shell in its last week's statement.

We remind that Pilipinas Shell Petroleum Corp said it will shut down its 110,000-barrel-per-day Tabangao refinery in the Philippines for one month from mid-May as the coronavirus pandemic has hammered oil demand.

We also remind that Shell Singapore restarted its naphtha cracker in Bukom Island this 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 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Chevron Phillips Chemical Company LLC has announced that Mitch Eichelberger has become senior vice president, Polymers and Specialties, effective May 16, 2020, reported BusinessWire.

Eichelberger replaces Dave Morgan, who will retire after more than 40 years with Chevron Phillips Chemical and Phillips Petroleum (now Phillips 66).

"Since our inception, Dave has exemplified the spirit of what it is to be a Chevron Phillips Chemical employee and lived by our tagline - Performance by Design, Caring by Choice," said Mark Lashier president and CEO. "His respect for employees, commitment to diversity and inclusion, and long-term vision have been invaluable to our success. He will be missed by us all, but his legacy remains. Dave has been a driving force in shaping our culture to make it a great place to work and meet the needs of our customers globally."

Eichelberger, currently senior vice president, Corporate Planning and Technology, will continue serving on the company’s Leadership Team as a direct report to Lashier. Eichelberger has nearly 40 years of industry experience and previously held leadership roles that will serve him well in his new position, including vice president, Qatar and vice president, Specialties. He also led the research and technology licensing group and served as polyethylene global business manager.

The company named Steve Prusak, currently general manager, Corporate Planning and Development, to assume the role of senior vice president, Corporate Planning and Technology and become a member of the Leadership Team, reporting directly to Lashier. Prusak has 30 years of industry experience and has held commercial, project and strategy roles during his tenure with the company. Notably, he served as a project director for the company’s U.S. Gulf Coast Petrochemicals Project, which was completed in 2018.

Darren Ercolani, currently general auditor, will also join the Leadership Team and report to Lashier in a newly created role, vice president, Business Transformation. In this position, Ercolani will lead the company’s efforts to innovate business operations and be responsible for championing the company vision for a digital future. As part of this effort, the company’s Information Technology department will also report to him. Ercolani has nearly 30 years of industry experience.

"The changes we are announcing today position Chevron Phillips Chemical to thrive in the global marketplace for years to come. We are embracing digitization and innovation, ensuring that our businesses continue to have seasoned and thoughtful leadership, and delivering on our mission to be the premier chemical company, known as the employer, supplier, neighbor and investment of choice," concluded Lashier.

As MRC informed earlier, 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.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

Chevron Phillips Chemical Company LLC is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, plastic piping and polymer resins. With approximately 5,000 employees, the LLC and its affiliates own nearly USD17 billion in assets, including 31 manufacturing and research facilities in seven countries. Chevron Phillips Chemical Company LLC is equally owned indirectly by Chevron Corporation and Phillips 66, and is headquartered in The Woodlands, Texas.
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