CBH statement on Oman, Duqm ULSFO refinery

MOSCOW (MRC) -- A company official statement was released by the chairman and CEO of Canada Business Holdings confirming the company plans to go ahead with the ultra-low sulfur fuel oil refinery in the Sultanate of Oman, said Hydrocarbonprocessing.

Moses Solemon stressed that the refinery plans are on time and going well. “We are proud of the level of business cooperation that the Omani authorities are showing. We are overwhelmed by the keen interest and effort levels on their side." Canada Business Holdings Inc. secured license to produce refined oil products in the Special Economic Zone in Duqm in Oman. The refinery capacity is 300,000 bpd.

The focus of the processing technology of the CBH Inc. refinery is the “bottom of the barrel” refining. CBH Inc was able to successfully integrate two Canadian technologies to produce high-quality fuel oil with near zero sulfur content and producing near zero nitrogen oxides. The green technology is one of a kind in the world of refining.

Mr. Solemon stated that “Although we are not a typical refining company by default, we have gathered the best world class team to make it happen. This refinery is a game changer in terms of business and in the end-product”.

CBH is a global leader in public-private partnership mega project development. The prime factors of CBH Inc. capabilities focused on successfully developing strategic projects by effectively and seamlessly bridging the void between macroeconomic future-forecasting and micro-economic implementation in certain business sectors.

In addition, CBH Inc. has been successfully able to avert high risk projects and in minimizing political, economic, and economic risks associated with global meltdown such as that of 2008. CBH deploys such expertise in the project development business to create sustainable and effective socio-economic condition in the country of operation.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- India will be looking to expand its oil refining capacity over the next few years, while embracing cleaner fuels such as natural gas, hydrogen and renewables to meet its insatiable appetite for energy, reported S&P Global with reference to Prime Minister Narendra Modi's statement at the inaugural session of the India Energy Forum by CERAWeek Oct 26.

But India would have to meet its energy needs while keeping in mind the environmental needs, Modi said, adding that New Delhi was committed to reduce its carbon footprint sharply in coming years in order to battle climate change.
"We plan to grow our refining capacity from about 250 million mt per annum currently to 400 million mt by 2025," Modi said.

But on top of that, boosting domestic gas production was a key priority for the government, he said, adding that it was crucial for the country to achieve its ambitions of becoming a gas-based economy. The government has set a target of raising the share of gas in India's energy mix to 15% from 6% by 2030.

For the country to achieve its overall energy ambitions, India would need to accelerate the move toward gas, promote cleaner use of fossil fuels such as petroleum and coal, boost reliance on domestic resources for driving biofuels and embrace fuels such as hydrogen, Modi said.

While the world could witness a contraction in energy demand in the near-to-medium term because of the pandemic, India would swim against the tide and witness positive growth in energy demand, he added. "Our energy demand is set to double in the long term."

Petroleum Minister Dharmendra Pradhan said that while the coronavirus pandemic had hit the global economy, it had also created a unique opportunity to emerge stronger while recovering from the crisis.

"Our energy requirements in the coming years are bound to grow as our per-capita energy consumption is still far below the global average," Pradhan said.

"We are making concerted efforts and taking all necessary steps to make the energy sector fuel India's economic growth during the pandemic and in the post-COVID period. We are now on the road to full recovery of petroleum products consumption compared to pre-COVID levels," he added.

Pradhan's views echoed comments from Indian Oil Corp. Chairman Shrikant Madhav Vaidya who told S&P Global Platts that Indian oil demand was recovering faster than expected, with gasoline consumption already at pre-pandemic levels, and the upcoming festival reason is expected to give a further boost to overall oil-product consumption.

S&P Global Platts Analytics expects Indian oil demand to fall 530,000 b/d year on year to 4.5 million b/d in 2020, before rebounding by 500,000 b/d in 2021.

Modi said that for too long the world had seen crude prices on a roller coaster and there was a need to work toward transparent and flexible markets for both oil and gas.

On India's appetite for cleaner fuels, Modi said renewable energy would play a key role in its energy basket in the future.

"We are well on track to make the commitment we made to the global community. We had aimed to increase the renewable energy installed capacity by 175 GW by 2022. We have further extended this goal to 450 GW by 2030," he said.

As MRC wrote previously, Indian Oil Corp. Ltd. (IOC) has approved the addition of a petrochemical and lube integration component to its previously announced and long-planned project that will expand crude oil processing capacity of its 13.7 million-tonne/year Koyali refinery at Vadodara in India’s western state of Gujarat.

We remind that IOC is expanding its petrochemical capacity by more than 70 per cent from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- U.S. production of major plastic resins totaled 7.2 billion pounds during September 2020, a decrease of 5.1%compared to the prior month, and a decrease of 0.9% compared to the same month in 2019, according to statistics released today by the American Chemistry Council (ACC).

Year-to-date production was 67.3 billion pounds, a 1.5% increase as compared to the same period in 2019.

Sales and captive (internal) use of major plastic resins totaled 7.4 billion pounds during September 2020, a decrease of 2.0% compared to the prior month, and an increase of 0.5% from the same month one year earlier.

Year-to-date sales and captive use was 68.4 billion pounds, a 2.7% increase as compared to the same period in 2019.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) -- Versalis, the chemicals subsidiary of Eni (Rome, Italy), says adjusted operating losses have narrowed to EUR53 million (USD62 million) in the third quarter from a larger EUR70-million adjusted operating loss incurred in the prior-year period, said Chemweek.

The third-quarter result is also an improvement sequentially over an operating loss of €66 million in the second quarter of 2020. The year-on-year (YOY) quarterly improvement was driven by increased petrochemical sales volumes from a “moderate recovery” in demand, improved plant performance, and better margins “particularly in the polyethylene (PE) business,” it says.

Sales of petchem products totaled 1.1 million metric tons in the third quarter, up slightly YOY, driven by higher volumes of intermediates due to higher product availability, elastomers, and particularly by styrenics, especially in the appliance and packaging sector, according to the company. The average plant utilization rate declined 2% YOY to 66% but improved sequentially by 6% compared to the second quarter.

Petchem product margins performed well mainly in the PE segment, it says. This was despite the ongoing weakness in end-user demand, driven by lower competitive pressures, a widening spread versus ethylene, and to a lesser extent styrenics/elastomers, due to lower feedstock prices, it says. Cracker margins saw a significant decrease in the third quarter due to a decline in the main monomers prices, but were stable on an annual basis due to the lower cost of feedstock, it adds.

For the nine months to end September, Versalis reports a widening adjusted operating loss of EUR184 million, EUR40 million more than the corresponding period in 2019, driven by sharply lower sales volumes due to weak commodity demand trends in European economies triggered by COVID-19. Lower sales volumes were negatively affected by reduced product availability due to longer maintenance standstills at its production hubs in response to the pandemic, particularly at the company’s Italian steam cracking facilities in Priolo and Brindisi, it says. These trends were partially offset by a recovery in PE margins, driven by higher demand and lower European imports, it notes.

Petchem sales volumes declined 7% YOY for the nine-month period to 3.01 million metric tons, with the average plant utilization rate falling 7% to 61% for the year to date. The lower sales volumes reflect weaker demand in the main end-markets, particularly the automotive sector, due to the global economic downturn and “uncertainties about the strength of the recovery,” Versalis says.

Capital expenditure (capex) by Versalis rose in the third quarter to €38 million from EUR23 million a year earlier, also improving sequentially from EUR37 million in the second quarter. For the year to date, capex by Versalis more than doubled YOY to EUR141 million.

Eni’s CEO Claudio Descalzi says the group continues to “successfully mitigate” the negative impact of the pandemic and the global economic downturn, including offsetting the impact of “an extremely negative scenario in traditional refining and chemicals.” Eni expects the fourth quarter to be in line with business trends recorded in the previous quarter, it says.

As MRC informed earlier, Versalis plans to increase production capacity for acrylonitrile-butadiene-styrene (ABS) at its Mantua, Italy, facility, according to GV with reference to several industry reports. The project will boost ABS capacity at its existing unit by 30,000 t/y.

According to MRC's ScanPlast, Russia's estimated consumption of ABS increased by 13% in July compared to July last year and amounted to 4,300 tonnes (3,790 tonnes in 2019).

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of 68 billion euros (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

MOSCOW (MRC) -- At least five Louisiana oil refineries in the path of Tropical Storm Zeta plan to remain operating as it makes a US landfall, reported Reuters with reference to people familiar with plant operations.

Oil and gas producers evacuated offshore production platforms and shut wells as the storm moved across the Gulf of Mexico. Zeta could strike the Gulf Coast between Louisiana and Alabama at or near hurricane intensity, forecasters said.

Refiners’ plans to continue operations could depend on the storm’s path and whether its winds intensify, the sources said. Two Louisiana plants have not restarted after storms earlier this year.

Exxon Mobil Corp’s 517,700 barrel-per-day (bpd) Baton Rouge, refinery, Royal Dutch Shell Plc’s 227,400 bpd Norco and 211,146 bpd Convent, Louisiana, refineries are proceeding with normal operations.

Exxon’s Baton Rouge plant is about 110 miles (177 km) northwest of the forecast path while Shell’s Convent and Norco refineries are 78 miles and 54 miles northwest of the latest storm track.

Exxon and Shell are monitoring the storm, spokes people said. Shell also said it is prepared to take action as appropriate.

PBF Energy’s 190,000 bpd Chalmette, refinery and Valero Energy Corp’s 125,000 bpd Meraux refinery, both in Louisiana, also plan to remain running during the storm, people familiar with operations at those plants said.

PBF and Valero did not respond to requests for comment.

The PBF refinery is about 36 miles and the Valero refinery about 34 miles northwest of where Zeta is forecast to cross the Mississippi River.

Enbridge Inc shut a natural gas processing plant in Venice, Louisiana, on the wet side of the hurricane, which likely will see the most rain and wind.

The refinery nearest to where Zeta could strike the coast, Phillips 66’s 255,600 bpd Alliance, Louisiana, refinery, has been shut since September for maintenance.

As MRC informed before, last month, US refiner Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC