US weekly propane/propylene stocks drop

MOSCOW (MRC) -- US combined propane and propylene stocks slid 100,000 bbl during the week ended 2 October to 101.8 million bbl, the Energy Information Administration says, said Chemweek.

Product supplied for propane and propylene, an indicator of implied demand, climbed 584,000 b/d on the week to 1.199 million b/d. Exports fell 143,000 b/d to 1.17 million b/d. The four-week average for exports advanced 35,000 b/d, year on year, to 1.11 million b/d. Propane/propylene imports for the week retreated 65,000 b/d to 96,000 b/d while the four-week average edged up 6,000 b/d to 114,000 b/d from the four-week average a year ago.

The Gulf Coast (PADD 3) region inventories moved up 200,000 bbl to 59.7 million bbl in the latest week. The Midwest (PADD 2) region stocks fell 800,000 bbl to 27 million bbl. PADD 1 inventories added 400,000 bbl to 9.6 million bbl, and PADDs 4 and 5 stocks rose 200,000 bbl to 5.6 million bbl.

Immediately after the report's release, Mont Belvieu TET propane was higher at 50.875 cts/gal from 49.750 cts/gal before the report. Non-TET propane was unchanged at 49.25 cts/gal. Conway propane showed no reaction and stayed at 51.50 cts/gal.

According to MRC's ScanPlast report, 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

MOSCOW (MRC) -- Royal Dutch Shell Plc’s oil refineries in Convent, Geismar and Norco, Louisiana, are monitoring and preparing responses to the threat from Hurricane Delta, reported Reuters with reference to the company's statement.

Delta struck the Yucatan peninsula as a Category 2 hurricane earlier Wednesday and is expected to enter the Gulf of Mexico and strengthen. It will approach the US Gulf Coast on the weekend as a Category 3 storm with winds of up to 130 miles per hour (209 kmh), the National Hurricane Center said.

As MRC informed earlier, hurricane Delta is on track to reach the US Gulf Coast (USGC) between High Island, Texas, northeast of Houston, and Grand Isle, Louisiana, south of New Orleans, Friday. Located north of Mexico’s Yucatan Peninsula Wednesday afternoon, the storm is forecast to strengthen as it heads north toward the heart of the US petrochemical industry.

We remind that strengthening hurricane Delta forced the closure of 29.2% of offshore crude oil production in the US-regulated northern Gulf of Mexico by midday Tuesday, regulator US Bureau of Safety and Environmental Enforcement (BSEE).

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.
MRC

MOSCOW (MRC) -- Advanced Petrochemical signed an amendment to the partnership agreement between its subsidiary, Advanced Global Investment Co. (AGIC), and SK Gas Petrochemical Pte. Ltd. (SKGP), a unit of SK Gas Co. Ltd., said Chemweek.

Under the amendment, an isopropanol (IPA) plant with a capacity of 70,000 tons per annum will be added, along with the Propane Dehydrogenation (PDH) and Polypropylene (PP) plants that were already announced earlier.

The company said in a bourse statement that by adding the IPA plant with an estimated cost of SAR 300 million (USD80 million), the total cost of the project for the three factories is currently estimated to be approximately SAR 7.05 billion (USD1.88 billion).

The project will be financed 25% by equity from shareholders and remaining 75% will be financed by the joint venture firm through borrowing from lenders. The company expects the financial impact of the investment to reflect after the commencement of commercial operations in the second half of 2024.

Any major development related to the project will be announced as per related regulations and instructions, the statement added. The inclusion of the IPA plant is part of strategy to promote the downstream industry in line with the Vision 2030, the company said, adding that IPA is used in variety of applications including hand sanitizers, medical applications, electronics industry, etc.

According to data compiled by Argaam, in March, Advanced signed a partnership agreement with SK Gas Co. Ltd. to establish and operate propane dehydrogenation (PDH) and polypropylene (PP) complex with a design capacity of 843,000 metric tons per annum of propylene and 800,000 metric tons per annum of polypropylene in Jubail Industrial City worth SAR 6.75 billion (USD1.8 billion).

As MRC informed earlier, on 29 January 2015, Advanced Petrochemical Company announced the signing of long-term off-take agreements for the sale of PP with Mitsubishi Corporation of Japan (150,000 metric ton per annum) and Domo Investment Group of Belgium (100,000 metric ton per annum), to be effective from January 1, 2019 for a period of ten years after the expiry of the previous off-take agreements.

According to MRC's ScanPlast report, 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.

Advanced Petrochemical Company (before Advanced Polypropylene) is a Saudi Joint Stock Company, established in October 2005. The company was initially launched by National Polypropylene Limited, jointly owned by Mr. Khalifa Al Mulhim, the chief executive officer of Advanced, and Mr. Monther Laheeq, who negotiated all the main deals related to the project, either before or after the establishment of Advanced Petrochemical. Currently, National Polypropylene Limited controls 7.9% of Advanced Petrochemical. Advanced Petrochemical started the construction of its plants in May 2005. The company produces 455,000 tons per year of propylene and 450,000 tons per year of polypropylene from its production facility located in Jubail Industrial City, in the Eastern coast of the Kingdom of Saudi Arabia.
MRC

MOSCOW (MRC) -- The board of the European Petrochemical Association (EPCA) has announced the appointment of Hartwig Michels, president/petrochemicals at BASF, as EPCA's new president, effective 8 October, according to Chemweek.

Michels succeeds Arkema chief operating officer (COO) Marc Schuller, who has led EPCA since 2017 and will retain his seat on the EPCA board.

Michels was until today EPCA vice president, and a board and executive committee member. His BASF career began in 1992 and he was appointed BASF’s president for the EMEA region in 2013 and assumed his current position as president/petrochemicals in 2017.

His appointment as EPCA president was announced on the final day of the 54th EPCA annual meeting, which was held in a virtual format.

As MRC reported earlier, COVID-19 occurred at an already challenging time for the petrochemical industry and has required it to take some drastic actions, said the leaders of the world’s two biggest chemical companies, BASF and Dow, on Monday at the 54th European Petrochemical Association (EPCA) annual meeting, which is taking place in a virtual format. The pandemic has also accelerated key industry trends, particularly those around sustainability and the environment, they said.

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

1. Pandemic pushes up cost of Norway oil and gas projects

MOSCOW (MRC) -- The COVID-19 pandemic has interrupted the development of Norway's offshore oil and gas projects, pushing up costs and postponing startups, the government and oil company Equinor announced, said Hydrocarbonprocessing. The costs of ongoing projects rose by 13.2 billion Norwegian crowns (USD1.4 billion) from a year ago on an inflation-adjusted basis, government documents showed, as COVID-19 restrictions stalled construction at several fields. "The COVID-19 pandemic and weakened Norwegian (currency) have negatively impacted some of the projects, but the combined project portfolio is still very resilient," Equinor said in a separate statement.

MRC