SayanskKhimPlast resumes PVC production

MOSCOW (MRC) -- SayanskKhimPlast (Irkutsk region) has resumed its polyvinyl chloride (PVC) production after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's representative said PVC production was brought on-line on 5 August after the scheduled turnaround. The shutdown was quite long and started on 8 July. The plant's annual production capacity is 350,000 tonnes.

As reported earlier, Russia's second largest PVC producer - RusVinyl - had resumed its production by 28 July, after the shutdown for a scheduled turnaround from 13 July. The plant's annual production capacity is 330,000 tonnes.

Thus, Russian producers completed all their shutdowns for maintenance this year.

JSC "Sayanskkhimplast" (Irkutsk region), established in 1998, is a complex of large-capacity chlororganic production facilities connected in a single production cycle. SayanskKhimPlast produces PVC, caustic soda and bleach. After commissioning of RusVinyl's PVC production (Nizhny Novgorod region), SayanskKhimPlast became Russia's second largest PVC producer.
MRC

1. Petron swings to H1 net loss on pandemic-hit demand

MOSCOW (MRC) -- Philippine refiner Petron swung into a net loss in the first half of the year due to fuel demand destruction brought on by the coronavirus pandemic, said the company. Petron Corp. incurred a consolidated net loss of P14.2 billion in the first half of 2020, reversing the P2.6 billion net income it posted in the same period a year ago. In a disclosure on Tuesday, the listed oil company blamed the net loss on the “combined slump in demand, poor refining margins and collapse in prices” and reported that its consolidated revenues fell by 40 percent to P152.4 billion from P254.8 billion.





MRC

MOSCOW (MRC) -- Exxon Mobil Corp reported a USD1.1 billion second-quarter loss on sharply lower energy demand and prices from the COVID-19 pandemic, and confirmed plans to make deeper spending cuts, reported Reuters.

It was Exxon's first back-to-back quarterly loss in at least 36 years, but was small in comparison to rivals who took giant charges last quarter. The top US oil producer took no asset write downs during the quarter, and got a 44-cent-a-share boost to earnings by increasing the value of inventories.

Chevron Corp, Total, Royal Dutch Shell , and Eni each wrote down their oil and gas properties last quarter by several billion dollars apiece, while BP signaled an up to USD17.5 billion hit.

Exxon slashed capital spending 30% this year to around USD23 billion, and Senior Vice President Neil Chapman said it expects to spend less than USD19 billion in next year. That would be the lowest spending for the company since at least 2005.

It plans both capital and operating expense cuts to defend its dividend, Chapman said on a call with analysts, adding that investors "come to view that dividend as a source of stability in their income."

It will not take on more debt and sees spending cuts as short term "to manage the current situation," Chapman said.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending plan to boost oil output and turn around sagging profits on a bet that a growing global middle class would demand more of its products.

The plan to significantly raise production and boost cash by selling assets has faltered, leading Exxon to preserve an 8% shareholder dividend.

Exxon has identified an "undertaking a comprehensive evaluation," of its global businesses, it said, without providing details.

Exxon's oil and gas production business fell to a loss and its refining unit was hit by lower demand and weaker prices.

The US oil major reported a loss of USD1.08 billion, or 26 cents per share, compared with a profit of USD3.13 billion, or 73 cents per share, a year earlier. Excluding inventory adjustments, the loss would have been USD3 billion, it said.

On that adjusted basis, its per share loss of 70 cents missed Wall Street's estimate of 61 cents, according to data from Refinitiv.

Exxon's oil and gas output fell 7% to 3.6 million barrels per day during the quarter as it curtailed production due to the oil price crash.

Rival Chevron on Friday reported an USD8.3 billion loss on asset writedowns, plummeting fuel prices, and expenses tied to thousands of jobs cuts.

Exxon's production business reported a nearly USD1.7 billion loss on lower output prices, compared with a USD3.3 billion gain last year. Refining generated a USD976 million operating profit despite lower margins and volumes. The unit's gain came from an about USD3.5 billion boost from non-cash inventory revaluations and by reversing a prior quarter's impairment.

Chemical operating profit was USD467 million, up from USD188 million last year, and was "resilient" in a tough environment, said analyst Biraj Borkhataria of RBC Europe Limited.

The company is running out of capacity to add debt "without jeopardizing the strength of its balance sheet," said analyst Jennifer Rowland of Edward Jones. The losses call into question "how long Exxon can continue to fund its dividend if the macro environment doesn't substantially improve.

As MRC wrote before, ExxonMobil Corp is preparing deep spending and job cuts, according to people familiar with the matter, as it fights to preserve a 8% shareholder dividend with a multi-billion-dollar quarterly loss looming.

We remind that boiler work at the ExxonMobil-operated 830,000-metric tons/year ethylene plant at Mossmorran, UK, was scheduled for completion in June, 2020. Two of the three boilers at the plant exploded in August 2019, resulting in the plant being taken offline until the end of February. OPIS sources said in May that the plant was currently able to operate at full capacity with two boilers in operation but that the third boiler would be working by June.

We also remind that 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 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.

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

MOSCOW (MRC) -- The United Steelworkers union (USW) local representing workers at ExxonMobil Corp’s Baton Rouge, Louisiana, refinery and chemical plant are seeking talks with the company over the upcoming suspension of the employer contribution to their 401K plan, said sources familiar with the matter, said Reuters.

Exxon told employees it would stop in October making the employer contribution to retirement savings plans.

The USW local at Baytown is also seeking talks with Exxon over the change. In regard to the Baton Rouge union’s plans, Exxon spokeswoman Ashley Alemayehu said, “Exxon Mobil’s total remuneration remains competitive despite the suspension."

As MRC informed before, boiler work at the ExxonMobil-operated 830,000-metric tons/year ethylene plant at Mossmorran, UK, was scheduled for completion in June, 2020. Two of the three boilers at the plant exploded in August 2019, resulting in the plant being taken offline until the end of February. OPIS sources said in May that the plant was currently able to operate at full capacity with two boilers in operation but that the third boiler would be working by June.

We remind that 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 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) -- The EQUATE Group is proud to announce that the MEGlobal BookraMEG Oyster Creek Project has been named the 2020 Best Project in the Industrial/Energy category by ENR Texas & Louisiana, said the company.

The project – nicknamed BookraMEG (meaning “future MEG”) – is a world-scale 750,000 metric-ton-per-annum monoethylene (MEG) glycol and di-ethylene glycol facility (DEG) built in Oyster Creek, TX as part of EQUATE’s subsidiary, MEGlobal. In addition to being completed ahead of schedule, below budget and with an excellent safety record, it was the first time the EQUATE Group constructed a new EG facility in the United States.

"During a period when there was an extraordinary number of construction projects in the US Gulf Coast, MEGlobal was able to capitalize on the expertise of its shareholders and the collaboration of its contract partners,” said Dr. Ramesh Ramachandran, CEO of EQUATE. “Dow’s world class engineering and procurement support coupled with the active participation of the global engineering work force of EQUATE enabled us to select the best work practices across the world. We will forever be grateful to this ?project team that delivered a world scale plant safely and ahead of schedule."

The project was co-submitted for award by MEGlobal, Worley (general contractor) and Fluor (construction contractor) and was one of 18 selected from more than 130 submissions. "This was an outstanding project in every sense and we are incredibly proud to be recognized for the teamwork, safety commitment and operational excellence demonstrated by the entire organization," said Clarence Stadlwieser, MEGlobal Project Director.

The project was judged on its safety, international teamwork, ability to overcome challenges, innovation, complexity, contribution to the industry/community, construction quality and craftsmanship, and functionality of design and aesthetic quality.

Jason Kraynek, Fluor’s Senior Vice President – Energy & Chemicals, said safety was the first priority of the project. “MEGlobal, Worley, and Fluor were fully aligned that safety was the overriding project objective and nothing would compromise this attitude. As other project contractors were brought on board, they were aligned with this objective and a key part of contractor selection was the contractor’s past safety record.

The entire project senior management team continuously emphasized focus on safety, both in design and execution of construction,” he said. As a result, the Total Recordable Incident Rate (TRIR) was TRIR of 0.054. Stephen Hillier, Worley’s President added, “It was no small feat, but working together, we were able to complete this world-scale facility eight months faster than the industry average. The success of the project is testament to the rigor and dedication of the team – always collaborating towards a common goal. Over the course of the project, we achieved continuous safe work, minimized rework and met project requirements. I’m grateful to MEGlobal for the trust they had in Worley and Fluor to partner with them and accelerate construction in a safe manner."

MEG is mainly used in the production of polyester fibres, resins and films (around 80% of global consumption), followed by use in polyethylene terephthalate (PET) resin. It is also used as automotive antifreeze.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes of material in June.

The EQUATE Group is a global producer of petrochemicals and the world’s second-largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, ethylene glycol (EG), polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society.

MEGlobal is a global leader in the manufacture and marketing of ethylene glycol (EG). With a worldwide network, MEGlobal markets its products throughout Asia, the Americas, Europe and the Middle East. MEGlobal embraces the principles of Responsible Care®, focusing on the safety of employees, neighbors, communities and the environment in every aspect of its operations. As a subsidiary of EQUATE Petrochemical Company (EQUATE), MEGlobal is part of the EQUATE Group which is the world’s second largest producer of EG.
MRC