Nigeria in talks to give up majority stakes in refineries

MOSCOW (MRC) -- Nigeria is holding talks to give up majority stakes in all four of its moribund oil refineries, Mele Kyari, head of the state oil firm NNPC, said, as per Hydrocarbonprocessing.

He disclosed that discussions were taking place on an operating model in which the state oil company NNPC or the government would be a minority shareholder in the assets. "It means there will be more scrutiny of shareholders and also becoming more efficient to operate. That conversation is on the table,” said Kyari, NNPC’s group managing director, without specifying how the government planned to transfer ownership, or to whom.

The refineries have for years worked only sporadically due to chronic underinvestment. NNPC said in April that it had shut them all down to secure funding for their refurbishment, and would no longer manage them when they reopened. The four refineries are located at three sites in Kaduna, Warri and Port Harcourt. Kyari said the pipelines that feed them with crude oil were badly damaged.

The refineries processed almost no crude in the 13 months to end June, according to NNPC data last month, even though their operating costs totaled USD367 million.

As per MRC, Nigerian National Petroleum Corporation (NNPC) has fired 850 workers, many of them from refineries, amidst the coronavirus pandemic, an oil union said. The workers are both skilled and unskilled contractors, including technicians who helped maintain Nigeria’s oil refineries, said Lumumba Okugbawa, general secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria, speaking on the phone.

As MRC informed earlier, NNPC has issued a crude-for-product swap tender, the company said. The Direct Sale Direct Purchase (DSDP) tender document did not specify the start date or the quantities involved but said the arrangement would be for one year. The tender is set to close on May 2 at noon (1100 GMT), NNPC said on its official Twitter account. Crude-for-product swap contracts are the country’s main avenue to meet the bulk of its gasoline and gasoil needs.

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) -- A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders including Trafigura to book tankers to store millions of barrels of crude oil and refined fuels at sea again, said Hydrocarbonprocessing.

The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supplies outpace demand. Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil, known as very large crude-oil carriers (VLCCs), according to trading sources and shipping data.

A number of the vessels are newly-built and are due to store gasoil and diesel, for which unsold volumes are especially high after a modest recovery mid-summer. The inventory build-up comes despite major oil producers including Saudi Arabia and Russia sharply cutting back output and refineries slowing operations in recent months in response to an unprecedented drop in consumption.

Other top traders including Vitol, Litasco and Glencore have also in recent days booked large tankers to store diesel for up to 90 days, according to shipping data and traders. Brent crude oil futures are languishing around USD40 a barrel after posting their biggest weekly decline since June.

"The market is soft and bearish and floating storage is returning again," a market source said. The spread between Brent crude for prompt delivery and six-months in the future Lcoc1-lcoc7 has been declining steadily toward USD3 near lows last seen in late May.

"Freight rates are low and the inter-month Brent spreads are now probably wide enough to cover storage costs and cost of cash,” one trader selling crude oil said. "It is increasingly clear that market fundamentals are not improving as quickly as expected, particularly on the demand side,” Morgan Stanley analyst Martijn Rats said in a note.
Global oil inventories remain sharply above average when looking at recent years. Although stocks have drawn at a pace of around 1.6 million barrels per day over the past 30 days, they are still some 600 million barrels above last year’s levels, according to Morgan Stanley.

Most of the draws were in crude oil inventories, but refined products stocks remained “stubbornly” high, Rats said. Compounding the bleak picture are weak margins and signs of an erosion in demand from China, whose record crude purchases in the summer months as it emerged from economic lockdown to scoop up cheap oil, mitigated demand damage globally.

Saudi oil giant Aramco sharply cut its October official selling price (OSP) for its flagship Arab Light crude to Asia by USD1.40 a barrel, hoping to salvage buying interest. But one top Chinese buyer said the outlook appeared grim.

“There are fewer refinery runs in China, teapots (independent refiners) have used up a lot of their import quotas, inventories are still pretty high and crude at current levels are not great for margins."

Sagging crude futures tracked sputtering physical crude prices worldwide, as price differentials for North Sea Brent stood at their lowest since June. West African oil sales suffered, with Nigeria still seeking buyers for oil planned for export last month, Angolan crude selling at the lowest rates since May and key buyer China reselling unwanted cargoes it received in term allocations.

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) -- Solvay has announced that Vanderbilt Chemicals, LLC, is now distributing Tecnoflon fluoroelastomers (FKM) and perfluoroelastomers (PFR FFKM) in North America, as per the company's press release.

Headquartered in Norwalk, Conn., Vanderbilt Chemicals is a wholly owned subsidiary of R.T. Vanderbilt Company Inc., which was founded in 1916. As an experienced distributor, Vanderbilt Chemicals extends Solvay’s outreach to customers, giving them additional opportunities to obtain expert guidance and technical advice on fluorine-based elastomeric materials. Further, Vanderbilt is positioned to help ensure fast turnaround times on orders, thanks to its network of distribution centers.

“All of us at Vanderbilt Chemicals are excited about the new distribution agreement with Solvay,” said Roger Burtraw, president of Vanderbilt Chemicals, LLC. “Solvay’s best-in-class manufacturing capabilities, comprehensive portfolio and new product innovations complement Vanderbilt’s well-established technical and sales presence in North America. We see these synergies as a major benefit to customers and key to our mutual growth and success.”

Solvay’s family of Tecnoflon® FKM and PFR FFKM products are engineered for demanding sealing applications in aggressive chemical and high-heat environments, such as those found in the automotive, industrial, semiconductor and energy industries. These high-performance synthetic rubbers provide a long service life for sealing applications such as O-rings, seals and gaskets.

“Our new distribution relationship with Vanderbilt Chemicals provides broader coverage of our Tecnoflon® product line in North America, giving customers expanded access to technical expertise and value-added services for developing and optimizing fluoroelastomer applications,” said Rose Catherin, sales manager, Americas for Channel Partners & Digital Sales for Solvay’s Specialty Polymers global business unit. “With Vanderbilt’s support, we can more widely deliver these advanced material solutions to meet customers’ changing needs.”

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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) -- Crude oil futures were rangebound in mid-morning trade in Asia Sept. 11 after the US Energy Information Administration reported an unexpected build in US commercial crude inventories after six weeks of declines and the coronavirus pandemic continued to cloud the global macroeconomic outlook, reported S&P Global.

At 09:28 am Singapore time (0128 GMT), ICE Brent November crude futures were down 9 cents/b (0.22%) from the Sept. 10 settle at USD39.97/b, while the NYMEX October light sweet crude contract was 1 cent/b (0.03%) lower at USD37.29/b.

"US and global crude oil prices fell on Thursday (Sept. 10) after US government data showed US domestic crude inventory increased for the first time since mid-July amidst wavering gasoline demand, with inventories at Cushing, Oklahoma rising to the highest since May and US crude production increased slightly," UOB analysts said in a note Sept. 11.

US commercial crude inventories rose 2.03 million barrels to 500.43 million barrels in the week ended Sept. 4, roughly 14% above the five-year average, EIA data released Sept. 10 showed. Notably, it was the first build after six consecutive weeks of drawdown in US crude stocks.

Total US gasoline stocks fell 2.95 million barrels to 231.91 million barrels over the same period, while distillate stocks slipped 1.68 million barrels to 175.85 million barrels, as the lingering impact of Hurricane Laura continued to curtail refinery runs.

However, refined product demand also remained weak, with US gasoline demand slipping 400,000 b/d to 8.39 million b/d in the week ended Sept. 4, the lowest since the week ended July 12.

The continued spread of COVID-19 worldwide remains the key drag on the energy demand outlook. Global COVID-19 infections currently exceed 28 million cases, with 907,377 deaths, latest data from John Hopkins University showed.

"The correction in oil was overdue in my view given a slowing demand recovery and rising supply in the near term. Still, medium and longer-term fundamentals suggest limited downside for oil from here," Stephen Innes, chief global markets strategist at AxiCorp, said in a note Sept. 11.

"Any dips will likely be sentiment-linked and short-lived, with a tightening market driving a gradual recovery through $45/b into year end," he added.

At 09:28 am Singapore time (0128 GMT), the NYMEX October RBOB stood at USD1.0955, down 0.2% from the previous settle, while October ULSD stood at USD1.0804/gal, down 0.18% from its previous close.

Earlier this year, as MRC wrote before, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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) -- Ascend Performance Materials has made their new mask technology available to the public for purchase, said Chemweek.

In July, NorthEscambia.com first reported that Ascend developed a new mask technology that protect against SARS-CoV-2, the cause of COVID-19, and the material to make it is manufactured at the company’s North Escambia facility on Old Chemstrand Road.

The Acteev Protect Nonwoven Mask is a reusable general purpose mask that features powerful built-in antimicrobial technology to protect the mask from odor-causing bacteria and mold fungi in a soft, breathable, comfortable fabric that is gentle on the skin.

The mask is the first in a series of planned Acteev product introductions that will include a knit fabric mask and a sports gaiter. The company also announced it is designing an N95 respirator and a line of surgical masks and is developing more engineering plastics solutions for high-touch surfaces such as light switches and tray tables; textiles for use in scrubs and hospital gowns; and nonwoven fibers and rolled goods for use in applications such as filtration systems.

The expansion into masks is a natural extension for Ascend, which is the largest producer of nylon 6,6 resin in the world, said Lu Zhang, Ph.D., who joined Ascend earlier this year as vice president and leader of the Acteev business. “The nylon Ascend makes is durable enough to be used under the hood of a car, but when it’s spun into fibers, it can be woven or knitted into fabrics that are soft and silky,” she said. “Combined with our antimicrobial Acteev technology, our fabric makes an Acteev Protect Nonwoven Mask more breathable, more comfortable and more wearable than anything else we’ve encountered in the market."

The Acteev Protect Nonwoven Mask is an ideal choice for anyone seeking better protection, comfort and breathability than a typical blue mask and better availability than an N95 respirator, which are reserved for health care workers, Zhang said.

"Masks only inhibit the spread if they’re worn – that’s why comfort and breathability are so important,” Zhang said. “As we send our kids back to school, return to the workplace, resume shopping and otherwise get back to normal life, we need an option that is long-lasting and wearable for hours. "They’re great for teachers, restaurant staff, transportation workers, industrial personnel and anyone whose lifestyle takes them out of their homes and into the world," Zhang said.

Recent testing on the knit fabric completed at the University of Cambridge has demonstrated that Acteev technology deactivates the virus that causes COVID-19, SARS-CoV-2, with 99.9% efficacy on contact1. Ascend is working with the U.S. Environmental Protection Agency, the U.S. Food and Drug Administration and other governmental agencies to obtain the appropriate regulatory clearances to make specific claims regarding the technology’s antiviral properties.

Acteev Protect Nonwoven Masks are made with Acteev™ technology with active zinc ions in a polymer matrix to destroy microbes. “Acteev’s active layer of defense uses safe, environmentally friendly active zinc ions embedded into the matrix of the polymer – not a chemical spray that will wash away or flake off – meaning these masks can be used again and again,” said Phil McDivitt, CEO of Ascend.

The Acteev Protect Nonwoven Masks are constructed with three layers of zinc-embedded materials.

“Our scientists and engineers invented a process for creating a revolutionary new fabric that checks all the boxes,” McDivitt said. “Acteev™ fabric is soft to the touch and moisture-wicking to keep the face cool, and it’s more breathable than other materials used in masks."

According to MRC's ScanPlast report, Russian plants" total PP production grew to 158,800 tonnes in July, compared to 149,400 tonnes a month earlier; ZapSibNeftekhim, Nizhnekamskneftekhim and Poliom increased their capacity utilisation. Russia"s overall PP production reached 1,063,700 tonnes in January-July 2020, compared to 854,500 tonnes a year earlier. Five out of eight producers raised their capacity utilisation, with a new producer - ZapSibNeftekhim - accounting for the main increase in the output.
MRC