Repsol to hold its Spanish refineries run rates at 77% for the full year

MOSCOW (MRC) -- Repsol expects its Spanish refineries to run at a utilization rate of 77% for the full year, reported S&P Global with reference to CEO Josu Jon Imaz' statement July 23.

This would mean a slight increase in the second half to around 78% after reporting rates of 70% in Q2 and 82% in Q1. The conversion rate for the full year is seen at 92%, which would mean a rate of around 93% in the second half after rates of 82% in Q2 and 100% in Q1.

The company previously said it was planning a turnaround at Puertollano before year-end while units at A Coruna and Bilbao are not reported to have returned since being taken offline during the COVID-19 state of alert.

The demand improvement along with emptying inventories mean a current margin level of USD2.80/b should increase toward USD3.80/b soon, Imaz said.

As MRC reported earlier, Repsol's refinery at Puertollano in central Spain will carry out an upgrade of its olefins unit. The modernization will be a part of planned maintenance of the cracker and chemical derivative plants at the end of 2020.

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.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC

MOSCOW (MRC) -- Russian oil giant Rosneft saw its net income decrease by 77.8% and revenue decline by 51.3% in the second quarter of 2020, from the same quarter of last year, according to its financial results statement released on Friday.

The company's net income attributable to Rosneft shareholders in the April-June period of 2020 came at 43 billion rubles (USD590 million), down from 194 billion rubles (USD2.66 billion) in the same period of 2019.

The firm had a revenue of approximately 1.04 trillion rubles (USD14.22 billion) in the second quarter of this year, which was down from 2.135 trillion rubles (USD29.23 billion) the same quarter of last year.

“The reporting period was characterized by unprecedented macroeconomic conditions including a sharp reduction of prices due to failing demand on the back of COVID-19 pandemic and lower production volumes due to realization of the new OPEC+ agreement," Rosneft Chairman and CEO Igor Sechin said in the statement.

"Crude oil and gas production as well as refining volumes came under severe pressure in 2Q 2020 which led to the deterioration of financial metrics," he added. In the first half of 2020, Rosneft's liquids production amounted to 4.34 million barrels per day -- a 7.3% decrease year-on-year.

The company has a net loss of 113 billion rubles (USD1.55 billion) in the first six month of 2020, while it had a net income of 325 billion rubles (USD4.45 billion) in the same period of 2019. For the January-June period of this year, revenue totaled around 2.8 trillion rubles (USD38.39 billion), which was down 33.4% from 4.2 trillion rubles (USD57.66 billion) from the same period of last year.

As MRC informed earlier, Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) resumed its low density polyethylene (LDPE) production after a scheduled turnaround. The plant"s customers said Angarsk Polymers Plant brought on-stream its LDPE production on 31 July after the scheduled maintenance. The outage started on 22 June and lasted for more than one month. The plant"s annual production capacity is about 75,000 tonnes.
MRC

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, issued a force majeure on polyvinyl chloride (PVC) supplies from its Texas and Louisiana plants, due to difficulties to produce the product amid upstream steam cracker problems, reported S&P Global with reference to the company's statement in a letter to its customers dated Aug. 14.

"Formosa Plastics Corporation, USA, on behalf of Formosa Plastics Corporation, Texas, and Formosa Plastics Corporation, Louisiana, has experienced unexpected difficulties in its upstream facility at Point Comfort, Texas, impacting the PVC production at both manufacturing sites," the company said in the letter.

Formosa USA and Taiwan officials could not be reached for further comment.

Market sources in Asia said the Asian PVC market would likely remain firm in the near-term as spot supplies would tighten further after Formosa USA's force majeure.

As MRC informed before, in March, 2020, Formosa Plastics was emerging from a turnaround at its 798,000 mt/year PVC plant and upstream 753,000 mt/year vinyl chloride monomer unit at its Point Comfort, Texas, complex.

According to MRC's ScanPlast report, Russia's overall PVC production reached 557,000 tonnes in the first seven months of 2020, up by 1% year on year. Only three Russian producers managed to increase their output.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is in plans to undertake a planned shutdown at its low density polyethylene (LDPE) plant in September, reported S&P Global with reference to a company source.

The plant is expected to remain shut for a turnaround for 24 days.

Located at Map Ta Phut in Thailand, the LDPE plant has a production capacity of 345,000 mt/year.

As MRC wrote before, PTTGC undertook a planned shutdown at its LDPE plant for turnaround on July 7, 2019. The plant remained shut for around 3 weeks.

PTT has a total capacity of 800,000 mt/year of high density polyethylene (HDPE), 345,000 mt/year of LDPE and 800,000 mt/year of LLDPE at the same site.

According to MRC's ScanPlast report, June estimated LDPE consumption in Russia grew to 55,260 tonnes from 45,490 tonnes a month earlier. Kazanorgsintez raised its PE output after a spring shutdown for a scheduled turnaround. Russia's estimated LDPE consumption rose to 291,270 tonnes in January-June 2020, up by 5% year on year. Russian producers raised their production, and LDPE imports also increased.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased August list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East and Africa, as per the company's press release.

The price increase below is effective for orders shipped on or after August 14, 2020, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose by EUR100/mt for Europe, the Middle East & Africa.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on July 1, 2020, by the same amount of EUR100/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC