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COVID-19 - News digest as of 16.07.2020

July 16/2020

1.PTTGCA moves forward on Ohio project as Daelim pulls out

MOSCOW (MRC) -- PTTGC (Bangkok) said it is moving forward with its much-delayed Ohio petrochemical project without its partner, Daelim Chemical USA (DCA), said Chemweek. Toasaporn Boonyapipat, PTTGC America (PTTGCA) president and CEO, said, �The Ohio petrochemical facility continues to be a top priority for PTTGC America. We are in the process of seeking a new partner whilst working toward a final investment decision [FID]. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley Region." In a joint statement issued by PTTGCA and DAC, the companies said, "The COVID-19 pandemic and recent oil price volatility have caused significant impacts on businesses around the world. As a result of these factors, the Ohio petrochemical complex project being developed by PTTGC America� and Daelim Chemical USA�[would have encountered] a delay of about six to nine months compared to the previously announced timeline�Under this market situation, PTTGCA and DCA have been assessing the impact for major investment projects to ensure that our portfolio is well positioned for the future of petrochemical Industry. While we continue to believe in the long-term strategic importance of this project, DCA has taken the difficult but necessary decision to withdraw as equity partner from the project.

2. OPEC+ may be able to ramp up oil production in 2021

MOSCOW (MRC) -- Faster oil market rebalancing could present OPEC and other producers with an opportunity to ramp production in 2021, the International Energy Agency said in its latest monthly report, as it revised up its demand expectations for 2020 and signalled ongoing supply weakness in US shale, reported S&P Global. The IEA predicts oil demand will grow 3 million b/d more than supply in 2021, as it released its first estimates for next year in its June 16 outlook, which would mean shifting some of the huge stock overhang that has built up. The Paris-based agency gave some glimmers of optimism around demand, seeing growth of 5.7 million b/d next year and revising up its expectations by almost 500,000 b/d for 2020, predicting a decline of 8.1 million b/d. But even with the bounce back that still puts demand at 97.4 million b/d, its nearly 2.4 million b/d below 2019. The IEA"s improved tone stems in part from improved mobility trends more broadly, particularly in demand powerhouses China and India and noting an easing of lockdown measures in many countries in the second half of the year is likely to provide a boost.

3. Reliance-Aramco deal delayed, Reliance to spin off oil-to-chemicals business into separate subsidiary

MOSCOW (MRC) -- Reliance Industries says that due to unforeseen circumstances in the energy market as well as COVID-19, its talks with Saudi Aramco to form an oil-to-chemicals (O2C) partnership have not progressed according to the original timeline, reported Chemweek. Mukesh Ambani, chairman and managing director of Reliance, said during the company"s annual shareholders" meeting on Wednesday that Reliance would approach the National Company Law Tribunal (Delhi, India) with a proposal to spin off its O2C business into a separate subsidiary to facilitate a partnership with Aramco. Ambani said he expects the spin-off to be completed by early 2021 but did not provide a date for the partnership with Aramco, which was originally due to be completed in March 2020.
Author:Margaret Volkova
Tags:Europe, PP, PE, crude and gaz condensate, petrochemistry, PTT Chemical, Reliance Industries, Saudi Aramco, COVID-19, India, China, USA, Thailand.
Category:General News
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