Sabic starts cracker turnaround at Wilton, UK

MOSCOW (MRC) -- SABIC Europe, an affiliate of Saudi Basic Industries Corp (SABIC), has shut its No. 6 cracker in Wilton (UK) for a scheduled maintenance, reported Chemweek.

The flaring was registerend on 29 September.

The turnaround at this cracker which has an annual ethylene capacity of 865,000 tonnes and propylene capacity of 415,000 tonnes will be conducted during approximately 75 days.

As MRC wrote before, SABIC Europe unexpectedly shut its No. 6 cracker in Wilton on June 17, 2020, due to technical issues. It came back online on 25 June.

Ethylene and propylene are the main feedstocks for producing polyethylene (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.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

India gasoline sales jump to pre-covid levels in September, diesel improves

MOSCOW (MRC) -- Indian state refiners’ annual gasoline sales rose to pre-COVID levels in September and a fall in diesel sales slowed, as the loosening of lockdown restrictions boosted energy consumption and economic activity, provisional industry data showed, said Hydrocarbonprocessing.

Last month, gasoline sales by state refiners saw their first annual growth since March, underpinned by a gradual lifting of coronavirus curbs even as India suffers one of the highest infection rates in the world. India’s fuel consumption- a proxy for oil demand- was hard hit by a nation-wide lockdown imposed in March to stem the spread of Covid-19.

Indian state retailers sold 2.2 MM tons of gasoline last month, up 1.85% from a year ago as the sale of passenger cars surged and as motorists increasingly rely on personal vehicles to commute amid rising coronavirus cases. Gasoline sales were up 10.5% from August.

Gasoil sales were at 4.84 MM tons, down 7.3% from a year ago but up 22% from August, according to data provided by the country's top refiner Indian Oil Corp. A continued recovery in gasoline and gasoil sales, which accounts for over half of the refined fuel consumption in India, would help improve refinery runs further.

IOC’s crude processing last month improved due to a recovery in fuel demand, its chairman M.S.Vaidya said, betting that fuel appetite could return to pre-covid levels this quarter. State companies IOC.NS, Hindustan Petroleum Corp and Bharat Petroleum own about 90% of India's retail fuel outlets.

State retailers sold 2.3 MM tons of liquefied petroleum gas in September, 5.3% higher than last year and up 3.6% from August. Jet fuel sales last month rose 23.4% from August to about 290,000 tons, but fell 53% from a year ago as curbs on air travel remained in place.

As MRC informed earlier, Indian Oil Corporation proposes to leverage its growing petrochemical operations to expand textile business as it looks to diversify operations and offset risks associated with oil operations. At a recent Asia Pacific oil summit IOC chairman S M Vaidya reportedly said that petrochemical expansion is being targeted by the company as it gives the company ability to de-risk from lower refining margins.

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.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.

MRC

Vinnolit to permanently shut its PVC plant in Schkopau

MOSCOW (MRC) -- European PVC producer Vinnolit has decided to close its 50,000 tons/year polyvinyl chloride (PVC) plant in Schkopau, Germany due to the lack of profitability and the lack of long-term competitiveness of the location in the current environment, reported NCT with reference to the company's press release.

Vinnolit expects provisions worth around EUR29 million to be incurred in the third quarter in reference to the closure, the press release said.

Customers will continue to be supplied from the larger plants in Burghausen, Gendorf and Cologne, it added.

As MRC informed earlier, in October 2012, PVC manufacturer Vinnolit officially launched the expansion of its E-PVC plant Burghausen in the "Chemical Triangle" in South-East Bavaria. Thereby, the production capacity of the world"s largest plant for the production of paste PVC increased to 100,000 tons per year. This further strengthened the company's leading market position in specialty PVC.

According to MRC's ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

Vinnolit company is a key player in the Russian market of emulsion.
MRC

Arkema has successfully placed its inaugural Green Bond

MOSCOW (MRC) -- Arkema has successfully placed its first ever Green Bond fully dedicated to the financing of its new world-scale plant in Singapore to manufacture 100% bio-based Rilsan polyamide 11, according to the company's press release.

For a total amount of EUR300 million, this Green Bond has a maturity of 6 years and an annual coupon of 0.125%. The offering was more than 10 times oversubscribed.

By offering innovative solutions to its customers, notably in the field of lightweight materials, new energies and bio-based products, Arkema aims to generate responsible growth contributing to the Sustainable Development Goals defined by the United Nations.

With this unprecedented Green Bond, fully aligned with Arkema’s CSR policy, the Group is financing its new world-scale plant in Singapore, a major innovative and sustainable project at the heart of its organic growth strategy. This plant, scheduled to come on stream in 2022, is designed with state-of-the-art technology in order to maximize its efficiency and minimize its environmental impact, and will be dedicated to producing 100% bio-based amino 11 monomer and Rilsan® polyamide 11 from castor oil, a renewable and sustainable feedstock.

Rilsan polyamide 11 is recognized worldwide for its superior properties and performance in very demanding applications, significantly contributing to the development of sustainable solutions in fast growing sectors, such as mobility and in particular new energy vehicles, 3D printing as well as consumer goods.

As MRC reported earlier, Arkema said in June, 2020, that it had finalized the divestment of its functional polyolefins business to SK Global Chemical. The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the group’s activities on specialty materials.

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.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
MRC

OMV petchem margin declines, refining margins tank

MOSCOW (MRC) -- OMV (Vienna, Austria) says its petrochemical net margin declined 15% year on year (YOY) in the third quarter ended 30 September, while its refining margin indicator plunged 84% YOY, reported Chemweek.

In a trading update ahead of the company’s third-quarter results, due to be released on 29 October, OMV says its ethylene/propylene net margin fell to EUR375/metric ton (USD441/metric ton) from EUR441/metric ton a year earlier. The third-quarter petchem margin is also down from EUR393/metric ton in the second quarter of this year. The company calculates the petchem net margin based on West European contract prices, with naphtha as the feedstock.

OMV’s refining margin indicator collapsed to USD0.87/barrel (bbl) in the quarter from USD5.46/bbl in the prior-year period, and is also down substantially from the second-quarter figure of USD2.26/bbl. The company’s refinery capacity utilization rate averaged 90% in the third quarter, a decline of 6% from a year earlier but up from 79% in the second quarter of this year.

OMV recorded a “positive contribution” in the third quarter from refining margin hedges in a “mid-double digit million Euros magnitude,” it says.

As MRC informed earlier, Austrian energy group OMV sees hope for a recovery in oil prices in the second half of 2020 helped by increased fuel demand and output cuts by producers such as Saudi Arabia, according to its chief executive's statement in May 2020.

We remind that on 12 March, 2020, Austria’s OMV OMV, the international integrated gas and oil company headquartered in Vienna, and Mubadala Investment Company, the Abu Dhabi-based strategic investment company, signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36% stake in Borealis, will acquire an additional 39% from Mubadala, increasing its stake to 75%. Mubadala will retain a 25% interest. The closing of the transaction is expected by the end of 2020 and is subject to regulatory approvals.

Ethylene and propylene are feedstocks for producing polyethylene (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.
MRC