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Oil majors renewable drive pushes up price tags on assets

September 18/2020

MOSCOW (MRC) -- Plans by European oil companies to increase their renewable power capacity are driving up the price tags on renewable businesses and projects, according to the CEO of British renewables and network company SSE, said Hydrocarbonprocessing.

BP, Shell and Total have all announced renewable expansion plans this year to reduce their reliance on fossil fuels and meet internal climate targets. Analysts say much of the growth will need to come through acquisitions.

"Im delighted to see some of these companies coming in and paying substantial prices for assets. That will help in terms of pushing up the prices of assets we are selling," SSEs Alistair Phillips-Davies said in an interview.

BP last week agreed to pay USD1.1 billion for 50% stakes in two U.S. offshore wind developments from Norway's Equinor.

SSE, which is seeking to divest around 2 billion pounds (USD2.6 billion) of assets, has said it would sell at least a 10% stake in its Dogger Bank offshore wind project being developed off the British coast with Norways Equinor.

SSE also earlier this year sold a 51% stake in its Seagreen 1 British offshore wind farm project to Frances Total. "Generally, seeing oil companies come in with their experience of offshore is good news for the industry. Although it will make the market more competitive it will also bring new focus and new technology and innovation," Phillips-Davies said.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
Author:Anna Larionova
Tags:petroleum products, PP, PE, ethylene, petrochemistry, sustainable development.
Category:General News
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