Exxon Baytown, Texas, refinery workers ratify contract

MOSCOW (MRC) -- Workers represented by the United Steelworkers union (USW) at Exxon Mobil Corp’s Baytown, Texas, refinery ratified a new three-year contract night, a company spokesman said, as per Reuter.

The contract provides a 2% pay increase in the first year and 2.5% pay increase for the second year, said sources familiar with the agreement. The pay increase in the third year will match the increase agreed to in a new national pattern agreement to be worked out between the USW and oil companies in January 2022, according to the sources.

"We are pleased with this successful outcome and settlement of the contract for the Baytown Refinery,” said Exxon spokesman Jeremy Eikenberry. “We believe this agreement is mutually beneficial for both the union workers and the company."

The Baytown refinery is Exxon’s largest refinery in the United States.

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 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.

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

Ukrainian EPS imports down by 19% in Jan-Apr 2020

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to the Ukrainian market fell in the first four months of 2020 by 19% year on year to 7,900 tonnes, according to MRC's DataScope report.

This figure was at 9,800 tonnes in January-April 2019.


Russian material accounted for 60% (4,800 tonnes) of the total shipments in the first four months of 2020, compared to 47% (4,600 tonnes) a year earlier. Chinese EPS shipments slumped over the stated period to 17% (1,340 tonnes) from 46% (4,500 tonnes) in January-April 2019.

April 2020 EPS imports to Ukraine were 2,000 tonnes, as a month earlier, shipments were at 4,000 tonnes in April 2019.

The share of Russian material dropped to 40% (810 tonnes) in April from 46% (930 tonnes) a month earlier. The share of Chinese shipments rose to 44% (900 tonnes) in April 2020 from 7% (150 tonnes) in March.

MRC

Ukraine reduces GPPS and HIPS imports in Jan-Apr 2020 by 5%

MOSCOW (MRC) -- Overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine dropped in the first four month of 2020 by 5% year on year to 6,740 tonnes, according to MRC's DataScope report.

This figure was at 7,000 tonnes in January-April 2019.


April GPPS and HIPS imports into the country fell by 16% from March: from 1,920 tonnes to 1,610 tonnes. Imports of these grades of material were at 1,300 tonnes in April 2019.

Imports of Russian GPPS and HIPS of Nizhnekamskneftekhim to Ukraine remained in January-April 2020 at the last year's level, totalling 3,500 tonnes. The share of Nizhnekamskneftekhim's material grew to 53% in the overall structure of imports to the Ukrainian market in the first four months of 2020 from 50% in January-April 2019.

April imports of material from Russia decreased by 13% from March to 800 tonnes. The share of Nizhnekamskneftekhim's GPPS and HIPS was 50% in April versus 71% a year ealrier.

MRC

COVID-19 - News digest as of 03.06.2020

1. Orbia puts on hold plans to divest Vestolit vinyls business

MOSCOW (MRC) -- Orbia Advance Corp., formerly Mexichem (Mexico City) says that in view of the COVID-19 pandemic and its impact on the global economy and capital markets, it has decided to pause its efforts to divest or seek an alternative strategy for its Vestolit vinyls business, reported Chemweek. Orbia says it is "prepared to wait for the right environment to maximize shareholder value in any transaction involving its Vestolit business". The company adds that Vestolit is a "fundamentally strong business, with a unique global footprint and strong cash generation, and will continue to focus on driving sustainable, profitable growth."


MRC

U.S. renewable fuel credits climb as EPA considers ruling on waiver program

MOSCOW (MRC) -- U.S. renewable fuel credits have gained by more than a third over the last month as refiners have bought the credits while the Trump administration decides the future of a program that exempts smaller refineries from blending laws, traders said, as per Hydrocarbonprocessing.

Renewable fuel (D6) credits for 2020 traded at 50 cents each on Monday, up from 37 cents since the start of May, traders said. Under the Renewable Fuel Standard (RFS), refiners must blend billions of gallons of biofuels into the fuel pool or buy credits from those that do.

Small refineries that can prove the requirements would cause financial harm have been able to apply for exemptions from the mandate. The U.S. Environmental Protection Agency under President Donald Trump has granted a much higher number of waivers than in previous years.

However, in January the Tenth Circuit Court of Appeals said the RFS is worded in such a way that any exemption granted to a small refinery after 2010 must take the form of an “extension.” If applied broadly, the decision could effectively end the waiver program.

The EPA has not yet said how it will apply the decision. “EPA continues to deliberate and engage with stakeholders over the broad ranging implications of COVID-19 for the implementation of the RFS program,” an EPA representative said.

Since the court decision in late January, D6 credits have jumped 354% from 11 cents each. Biomass-based (D4) credits traded at 60 cents each, up from 52 cents each a month ago, traders said. They have risen 30% since the court ruling.

As MRC informed earlier, top oil exporter Saudi Arabia is expected to raise its official selling price (OSP) for all grades it sells to Asia in July, to track a jump in Middle East benchmarks although overall weak refining margins could cap price gains, industry sources said.

As MRC wrote earlier, in October 2019, McDermott International announced that it had been awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia. Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

Aramco and Total launched their USD5-billion Amiral JV project in October 2018. The steam cracker will be fed with a mixture of 50% ethane and refinery off-gases. It will supply ethylene to a downstream 1 MMt/y polyethylene manufacturing complex and other petrochemical products. The project aims to fully exploit operational synergies with the adjacent refinery, owned by Satorp, another JV between Aramco and Total. Third-party investors, including Daelim and Ineos, will locate plants at the value park adjacent to Amiral with a combined investment of USD4 billion. A final investment decision is expected in 2021.

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