U.S. EPA proposed lifting amount of biofuels n 2021

MOSCOW (MRC) -- The U.S. Environmental Protection Agency has proposed lifting the amount of biofuels that refiners must blend into their fuel next year to 20.17 billion gallons, from 20.09 billion this year, according to two sources familiar with the details of an agency draft proposal, said Hydrocarbonprocessing.

The 2021 volumes would include 15 billion gallons of conventional biofuels like ethanol and 5.17 billion gallons of advanced biofuels, according to the sources. The advanced biofuels mandate would include 670 million gallons of cellulosic biofuel, up from 590 million gallons in 2020, they said.

EPA’s proposal would also place the 2022 mandate for biodiesel at 2.76 billion gallons, from 2.43 billion in 2021, sources said. The agency sets biodiesel mandates two years ahead.

An EPA spokesperson declined to comment. The draft proposal is currently being reviewed by the White House.

The EPA is charged with setting biofuel and biodiesel blending requirements for the refining industry as part of the Renewable Fuel Standard, a regulation aimed to help farmers and reduce U.S. dependence on oil.

Under the RFS, refiners must blend billions of gallons of biofuels into the nation’s fuel pool or buy credits from those that do. Refiners say the obligations are too costly, while farmers benefit from an expanded market for their crops.

Small refineries can be exempted from biofuel blending if they prove that complying would cause them financial strain. The waivers have been a lightning rod for controversy, as the Trump administration has made wide use of the exemptions, angering biofuel advocates, who say they hurt ethanol demand.

As MRC informed earlier, US lawmakers introduced a relief bill that would include aid to biofuel producers after demand for the fuel plummeted because of the coronavirus pandemic, causing mass shutdowns in the industry. The bill, introduced by House Democrats, would reimburse producers that suffered unexpected market losses because of the pandemic from January 1 through May 1. It is not clear whether the bill as proposed will be passed into law.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. 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.

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 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 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Pakistan's oil marketing companies are likely to import more spot barrels of motor fuels soon as the recovery in domestic demand amid low refinery run rates threatens to draw down the country's already limited supplies, traders said, said S&P Global.

This expectation was sparked by concerns of a supply crunch after the country's Oil and Gas Regulatory Authority in mid-June imposed a cumulative fine of around Pakistan rupees 40 million (USD240,000) on six major oil marketing companies for holding insufficient motor fuel inventories, OGRA's official reports revealed.

Shell Pakistan, Total Parco Pakistan Limited, Puma Energy, Gas and Oil Pakistan, Attock Petroleum and Hascol Petroleum were the six slapped with fines, according to the reports. However, they could not be immediately reached for comment on the matter.

Signs of an increased import appetite also emerged from a string of amendments Pakistan State Oil Corporation made to its recent buy tenders, seeking even prompter delivery of gasoline cargoes. In Its 92 RON gasoline buy tender for H1 July, the company revised the original delivery dates of July 1-15 to June 25-July 15, while the dates for its H2 July and H1 August tenders were changed to July 10-31 and August 1-12, from July 16-31 and August 1-15, respectively.

"By pushing the dates earlier, we can see that PSO has a more urgent need for [gasoline] cargoes," one Singapore-based trader said. In addition, the company also issued a fresh spot tender seeking an additional 4,000 mt of 97 RON gasoline for delivery over July 23-28 to Keamari terminal.

PSO typically buys 97 RON gasoline in a combined cargo with 92 RON gasoline, but this time round, has imported it separately due to a sudden spike in driving activity, market sources said.

In addition to raising the cargo sizes of imports to 55,000 mt, from 45,000 mt previously, a source with close knowledge of PSO's import plans said that the company's import requirements will likely be around eight MR-sized cargoes per month, two more than the usual requirement of around six MRs per month.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. 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.

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 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 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Crude oil futures were steady to marginally lower in mid-morning trade in Asia June 23 following an overnight rally, as demand uncertainty continues amid concerns of a second wave of COVID-19 infections, reported S&P Global.

At 10:35 am Singapore time (0235 GMT), ICE Brent August crude futures slipped 1 cent/b (0.02%) from the June 22 settle at USD43.07/b, while the new front-month NYMEX August light sweet crude contract was 4 cents/b (0.1%) lower at USD40.69/b.

Prices settled higher June 22 owing to a tighter global supply outlook, but came off this morning as uncertainty continued to cap gains.

"In an environment where the WHO (World Health Organization) had only recently announced on Sunday a record increase in global COVID-19 cases, sentiment can certainly still turn very promptly with the flick of the switch," IG's market strategist Pan Jingyi said in a June 23 note, referring to markets in Asia.

Trading sentiment remains cautious as investors continue to weigh mixed drivers in the recent oil market.

"Still, the markets will remain nervous and sensitive to bad news... sentiment could quickly reverse on a dime after the extended rally in oil," Axicorp chief global markets strategist Stephen Innes said in a June 23 note.

Innes added that the outlook depends on whether evidence of shut-in global non-OPEC production returns, as a result of higher oil prices.

Recent efforts by OPEC+ to step up compliance have helped to support prices for now.

Meanwhile, signs of slowing US drilling helped provide a floor to prices, with US oil rigs trending lower in recent weeks.

The US' commercial crude stocks are also expected to have declined 100,000 barrels to around 539.3 million barrels during the week ended June 19, analysts surveyed by Platts said. The market looks towards inventory data to be released June 24 by US EIA for a clearer direction.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. 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.

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 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 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- The recent surge in China's crude procurement activity on the back of low oil prices has led to severe port congestion in Shandong province in recent weeks, causing logistical constraints that could put brakes on the upward momentum in independent refiners' run rates and crude throughput levels, reported S&P Global.

China's crude oil imports jumped 19.2% on the year to an all-time high at 11.34 million b/d, or 47.97 million mt, in May as refiners took full advantage of ultra low crude prices and ample storage capacity.

However, the recent flurry of tankers arriving in Chinese waters could not be handled in a prompt manner due to limited port capacity, as crude futures participants and more physical traders other than the independent refiners join the queue to bring in crude barrels compared with the last few months.

As of June 24, at least 41 ships carrying a combined total of around 51.07 million barrels of crude are waiting to be discharged at Shandong ports for more than a week, trade flow tracker Kpler showed.

Making matters worse, there were at least seven cargoes of crude oil jumping the queue to deliver into storage facilities designated by the Shanghai International Energy Exchange, or INE, since late May. These cargoes have occupied the logistics resources that used to cater only for independent refineries.

The congestion in Shandong ports will likely last until end of August, and many of the country's independent refineries based in the country's eastern province may have little choice but to cut down their operating rates as feedstock deliveries to processing units and storage tanks are delayed, a Beijing-based analyst said.

Most Chinese refineries have been aggressively raising crude throughputs to take full advantage of healthy domestic refining margins since late March.

Crude throughputs at Shandong-based independent refineries have lifted to an average of 10.9 million mt/month over April-May, up 41.6% from a 7.69 million mt/month average over the January-March period. It was also 18.3% higher than the average of 9.2 million mt/month during the same period a year earlier, according to data from local information provider JLC.

The congestion has already taken its toll on several independent refineries in Shandong province.

Daily crude throughput at an 8 million mt/year Weifang-based refinery was briefly cut by half to around 10,000 mt for about two to three weeks earlier this month because of the congestion and subsequent delay in crude feedstock delivery.

The refinery typically relied on the Huangdao-Weifang crude pipeline to deliver crude oil from a Shandong port to its plant, but the pipeline is currently used to transmit crude barrels designated for INE storage tanks for physical delivery settlement on Shanghai crude futures trades.

As a result, the refinery started to find other ways to transport crude oil from oil terminals to its facilities, including by trucks and trains.

However, recent shortage of available trucks to deliver crude oil has drastically slowed the delivery process, a refinery official said.

The prolonged congestion could seriously affect operations and fuel output at many more refineries as they struggle to replenish their feedstock inventory on time, industry and market sources said.

"Refineries have been running at low stocks at their facilities now, to last for about 10 days only," said a source at another Shandong-based refinery.

If the congestion continues and they cannot get enough deliveries from ports, some refineries will start to worry about their feedstock supply, sources added.

It takes at least two to three weeks for a crude cargo to be discharged these days in Yantai, and even longer time, of around 20-30 days in Rizhao and Qingdao, port officials with knowledge of the matter told S&P Global Platts.

"It will probably take until end of August to completely clear all those congested cargoes," said an official at Yantai port.

Apart from the delay in feedstock replenishment, a slip in domestic refining margins have also prompted some refineries to trim crude throughput levels.

Lanqiao Petrochemical, for one, cut its run rate slightly to around 70% in the week started June 21 from 75% earlier this month due to falling profit margins, according to a refinery source.

An analyst from JLC said the independent sector's run rates are likely to come off slightly in the week started June 21 from the recent peak, as domestic refining margins slipped to around Yuan 200-300/mt recently from Yuan 454/mt seen in May and Yuan 683/mt in April.

As MRC informed before, China is reviving a USD20 billion petrochemical project in eastern Shandong province as part of efforts to dial up infrastructure spending to support an economy struggling with the impact of the coronavirus pandemic. The 400,000 barrel-per-day (bpd) refinery and 3 million ton-per-year ethylene plant in Yantai, Shandong, the country’s hub for independent oil refineries, was proposed years ago but approval has been slowing in coming because of China’s struggle with excess refining capacity. China’s state planner, the National Development & Reform Commission (NDRC), gave initial approval in June for the project, allowing Shandong province to start planning for construction.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Royal DSM, a global purpose-led, science-based company in Nutrition, Health and Sustainable Living, says it has recently completed the repurchase of 1.4 million of its own shares at an average price of EUR98.40 (USD111.4), for a total consideration of EUR137.8 million, reported Chemweek.

The repurchase follows the company’s announcement on 2 March that it would cover commitments under share-based compensation plans and shares for stock dividends, DSM says.

DSM has also decided to cancel the rest of its EUR1-billion share buy-back program, announced in February 2019, the company says. The decision to cancel the buy-back follows the acquisition of Erber Group, announced in H1 June, 2020, and is a "prudent measure" in the COVID-19 environment, the company says.

Under the program, DSM repurchased 5.4 million shares for a total consideration of EUR600 million in 2019 and another 1.3 million shares for a total consideration of EUR145 million in 2020, bringing the total number of shares repurchased to about 6.6 million for a total consideration of EUR745 million, the company says.

As MRC informed earlier, this month, Royal DSM and Clariant, a focused, sustainable and innovative specialty chemical company, announced an agreement for DSM to take over certain parts of Clariant’s 3D printing business portfolio.

We remind that in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

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

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC