Qatar Petroleum to slash spending by 30%

MOSCOW (MRC) -- Qatar Petroleum will slash its spending by around 30% this year in the face of the sharp drop in oil and gas prices due to the coronavirus epidemic, its Chief Executive said, said Hydrocarbonprocessing.

Speaking during a webcast organised by the U.S-Qatar Business Council, Saad al-Kaabi however said that plans to sharply expand Qatar Petroleum’s liquefied natural gas (LNG) capacity by the middle of the decade remain on track.

“We are going through budget revisions... In June we will be somewhere in the range of 30% reduction in expenditure, capex and opex,” Kaabi said. The world’s top oil and gas companies sharply reduced spending in the wake of an unprecedented collapse in oil consumption triggered by travel restrictions governments around the world imposed to contain the coronavirus epidemic.

Kaabi said he expected oil demand to recover to pre-crisis levels only within a year or two, adding that natural gas prices have suffered less due to continued demand for electricity. Qatar Petroleum, or QP, the world’s largest LNG producer, will however not cut its gas exports due to the weaker demand, he added.

QP wants to lift its LNG output to around 110 million tonnes per annum by 2024 from today’s 77 mtpa in the first phase of its expansion. Those plans remain on course, Kaabi said, despite delaying the awarding of commercial tenders for the expansion project from April to the end of the year.

“We’re full steam ahead, we’re going to expand,” Kaabi said. Once the project’s capital costs are understood in the coming months, he expects a number of major international companies, including Exxon Mobil, Chevron and ConocoPhillips to take part in the tendering process, he added.

As MRC informed earlier, on 22 July at cracking units No. 23 and 33 in the city of Sweeny, Old Ocean, Texas, USA, the American Chevron Phillips Chemical (CP Chem), one of the world's largest petrochemical companies, suffered a technological failure as a result of a steam failure. the company said in a statement. The company said in a statement that the company has restored this production with a capacity of 1.68 million tons of ethylene per year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Renewable chemicals firm P2 Science (Woodbridge, Connecticut) has begun commercial scales of 24-6, a product case containing 24 bottles of sanitizer and 6 bottles of P2 moisturizer, said Chemweek.

The new P2 moisturizer is formulated around the patented forest-derived, Citropol platform and is designed to mitigate the effects on the skin of frequent handwashing and sanitizer use. The liquid sanitizer is made under an FDA registration.

Any sale or donation of P2 sanitizer is accompanied by P2 skincare products, built around the Citropol proprietary biobased ingredients. Currently the 24-6 is sold only for use by employees of qualified government and nonprofit groups operating in the state of Connecticut. Earnings from sales of the 24-6 will help support the P2 pro-bono work with All Our Kids Inc. (AOK) and other CT nonprofits. P2 is currently supplying AOK with sanitizer to help facilitate safe operation of their childcare facilities.

The Citropol platform is a new class of liquid polymers made from terpenes derived from forest products. The products demonstrate an excellent safety profile and typically impart lubricity, shine, and moisture retention properties in a wide range of skin- and hair-care products.

As MRC informed earlier, an estimated 11 million metric tons (MMt) of plastic waste enter the ocean every year and this will almost triple by 2040, to 29 MMt, if immediate and sustained action is not taken, according to a newly published in-depth report. This is equivalent to dumping 110 lbs (50 kilograms) of plastic on every meter of coastline around the world, it says. However, it is possible to reduce annual flows of plastic into the ocean.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Nord Stream 2 filed an appeal to the EU Court of Justice against the EU General Court's dismissal in May of the pipeline company's attempt to annul European law on pipelines from non-EU countries, reported S&P Global with reference to a spokesman for the company's statement July 28.

In July 2019, the Gazprom-owned company, which is building a 55 Bcm/year natural gas pipeline from Russia to Germany, brought an action before the EU General Court, requesting the amended EU Gas Directive be annulled due to infringement of European rules on equal treatment and proportionality.

On May 20, the court dismissed the lawsuit as inadmissible on procedural grounds.

"Nord Stream 2 does not share the procedural arguments of the court and maintains that the amendment of the Gas Directive constitutes an unlawful discrimination," a spokesman for Nord Stream 2 told S&P Global Platts.

Nord Stream 2 had hoped to bring the pipeline online by the end of 2019, but first permitting issues in Denmark and now US sanctions have delayed completion of the project.

The pipeline is seen as crucial to Russian plans to scale down use of the Ukrainian transit corridor from 2021 for supply of its gas to Europe.

"We want the General Court to review the content of our complaint," the spokesman said.

The next step would see the EU filing a rejoinder to Nord Stream 2's appeal, he said. A decision on the admissibility of the action by the EU Court of Justice would then be expected within the next 12 months.

On July 20, the developer said investments needed to complete the pipeline could be blocked if the US imposed sanctions on companies involved in the project.

Five European energy companies - France's Engie, Austria's OMV, Anglo-Dutch Shell, and Germany's Uniper and Wintershall Dea - have co-financed the project, each committing to pay Eur950 million (USD1.114 billion).

As MRC reported earlier, Denmark approved a request from the developer of the Nord Stream 2 gas pipeline from Russia to Germany for permission to lay the line in Danish waters using ships with anchors on July 6, 2020.

We remind that Gazprom neftekhim Salavat shut down its dioctyl phthalate (DOP) production for a scheduled maintenance. Market participants and a plant"s representative said Gazprom neftekhim Salavat took off-stream its DOP production for a long scheduled turnaround. The outage began on 12 May and lasted for about 30 day.

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia totalled 13,800 tonnes in the first half of 2020, up by 5% year on year, whereas exports grew by 7% year on year.
MRC

MOSCOW (MRC) -- Pemex aims to increase crude and gas production during the second half of 2020 as it pushes forward with its strategy of early production at exploratory wells and the commitments to production cuts with OPEC expire, reported S&P Global.

Pemex will increase crude production by 95,300 b/d by the end of the year as it incorporates 20 new exploration wells, management said July 28 during the company´s Q2 conference call. Eighteen of the new projects contain crude only and two more will also produce natural gas.

The firm already started production in 15 new wells in the first half of the year, which the company has identified as priority to reach its production goal of 2.4 million b/d by 2024. The wells have so far produced 83,000 b/d of crude, Alberto Velazquez, CFO said.

Drilling at these priority fields will increase the firm´s 2020 capex to USD7.8 billion from USD4.9 billion in 2019, Velazquez said.

Total hydrocarbons production in the second quarter was 2.359 million boe/d, a slight year-over-year decrease mainly explained by lower associated gas. Crude production remained unchanged at 1.673 million b/d between April and June.

"The steady production is explained by higher production in offshore fields, mainly at Xanab, which increased production by 30,000 b/d to 82,000 b/d," Velazquez said.

Pemex called Q2 production a "favorable achievement" considering a 100,000 b/d output reduction Mexico committed to as part of an April deal with OPEC+ members that expires in July. The firm also mentioned bad weather had caused the shutdown of operations during seven days in June.

Total gas production of 3.604 Bcf, was 52 MMcf ,or 0.9%, lower year over year as associated gas decreased by 118 MMcf due to the shutting of wells as part of the OPEC+ agreement. Non-associated gas increased by 9%, or 85 MMcf, Pemex said in its report to the Mexican Stock Exchange.

The number of wells in operation decreased 9% to 6,789, Pemex said.

Pemex reported a net loss of USD1.9 billion in the quarter, hit by lower revenues and lower crude prices. Total revenues dropped 51% to USD7.9 billion on the back of local sales that were 54% lower year over year and lower exports. The price of the Mexican export mix during the quarter was 60% lower at USD23.84, Pemex said in its filing.

As MRC informed earlier, Pemex is advancing a refinery rehabilitation program that will enable it to process 1.2 million b/d of crude oil by the end of 2020 and evaluating a reconfiguration of its petrochemical facility at Cangrejera, Mexico, into what would be its eighth refinery.

We also remind that in 2016, Pemex shut its steam cracker at its Cangrejera complex for maintenance on February 15. The cracker was idle for about 14 days. The conducted repairs at the cracker were a part of planned maintenance.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

MOSCOW (MRC) -- Linde has announced it will start construction of the world's first hydrogen refueling station for passenger trains at Bremervorde, Germany, in September, reported Chemweek.

This follows the successful 18-month trial of the world's first two hydrogen trains in the region, which was completed earlier this year.

Linde will build and operate the hydrogen filling station, which is expected to start service in early 2022. The station will fuel 14 hydrogen-powered passenger trains, which will be supplied by Alstom to the regional rail traffic provider, LNVG, and will use the network of regional railway company EVB. The hydrogen refueling station will have a capacity of around 1,600 kilograms of hydrogen/day, making it one of the largest hydrogen stations in terms of nameplate capacity ever built. It will be constructed with scope for future onsite hydrogen generation using electrolysis.

"We are excited to play a key role in this world-leading, innovative project. We have long known that hydrogen as a fuel has the potential to make a significant contribution to decarbonization. Establishing hydrogen as a zero-emission and efficient fuel for trains will bring tremendous benefits for the environment," says David Burns, head of clean hydrogen at Linde.

"The construction of the hydrogen filling station in Bremervorde creates the basis for the regular operation of our emission-free hydrogen trains in the EVB network," says Jorg Nikutta, general manager of Alstom Transport Deutschland. "We are delighted that Linde, as an experienced hydrogen supplier, is now also taking over the refueling of the series trains following the successful trial operation."

The project is co-funded by the German Federal Ministry of Transport and Digital Infrastructure within the scope of the National Innovation Program Hydrogen and Fuel Cell Technology.

As MRC informed before, in February 2020, Linde PLC received a contract to provide technology for PJSC Sibur Holding’s cracker at Amur gas chemical complex (GCC). GCC is an integrated 1.5 million tons per year polyethylene and polypropylene production complex to be built near Svobodny in Russia’s far-east Amur region. The contract was awarded to Linde under a consortium with Sibur subsidiary and project contractor NIPIgazpererabotka (Nipigaz). As per the agreement, Linde will deliver engineering, procurement, and site services based on its proprietary technology for the GCC’s cracker.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC