Indiian October gasoline, gasoil sales exceed pre-coronavirus levels

MOSCOW (MRC) -- India’s gasoil consumption in October rose 6.6% from a year earlier, the first such increase since COVID-19 restrictions were imposed in late March, preliminary data showed on Sunday, signaling a pick-up in industrial activity, reported Reuters.

Diesel sales by the country's three state fuel retailers totaled 6.17 million tons in October, according to provisional data compiled by Indian Oil Corp (IOC), the country's biggest refiner and fuel retailer.

Sales of gasoil, which account for about two-fifths of India’s fuel demand, rose 27.5% from September.

Rising diesel sales in the world’s third-biggest oil consumer and importer should help refiners, who had to cut crude-processing runs during the coronavirus crisis.

IOC hopes to operate refineries at full capacity in a couple of months, up from 95% now, as local fuel demand is rising, company chairman S.M. Vaidya said.

Rising gasoline and gasoil demand in India should also aid other markets hit by slow demand recovery.

Local gasoline sales in October rose above pre-pandemic levels for a second month in a row.

Gasoline sales rose 4% from a year earlier to about 2.4 million tons, about 8.6% higher than September, the data showed.

State companies IOC, Hindustan Petroleum Corp and Bharat Petroleum own about 90% of India's retail fuel outlets.

State retailers sold 3.8% more cooking gas in October than a year ago, at about 2.44 million tons, while jet fuel sales halved to 328,000 tons.

As MRC informed previously, Indian Oil Corp. Ltd. (IOC) has recently 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. Approved by the company’s board in late September, the revised 178.25-billion rupee expansion and petrochemical-lube integration project will increase crude processing capacity of the refinery by 4.3 million tpy to 18 million tpy as well as result in proposed production of 500,000 tpy of polypropylene and 235,000 tpy of lube oil base stock at the site, IOC said in filings to India’s National Stock Exchange Ltd. and BSE Ltd.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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

MOSCOW (MRC) -- Dresser Natural Gas Solutions (Dresser NGS), a leading provider of measurement, instrumentation and piping solutions to the natural gas distribution and transmissions markets, has acquired Flow Safe, a manufacturer of spring-operated and pilot-operated high performance pressure relief devices, said Hydrocarbonprocessing.

Dresser NGS has acquired the entire Flow Safe business, including 38 employees and two locations: Orchard Park, New York, and Houston. The acquisition will enable Dresser NGS to provide over-pressure protection for its natural gas customers.

The Flow Safe product line, which includes spring-operated and pilot-operated high performance over pressure protection devices, will focus on applications in Natural Gas Distribution, Pipeline, Aerospace, Marine, Industrial Gases and other liquid and gas process applications.

David Evans, president and CEO, Dresser NGS, said, “Dresser is excited about Flow Safe joining the family. We will help Flow Safe reach new customers, and Flow Safe will help us strengthen our working relationships with gas company risk managers, systems engineers, over-pressure protection specialists, measurement managers and technicians, all of whom realize value from Flow Safe’s industry-leading over pressure protection solutions."

Ryan Gannon, president, Flow Safe, said, “Flow Safe is excited to be a part of the Dresser NGS team and looks forward to expanding their reach into many different markets that Dresser NGS currently does not operate, including aerospace, marine, and industrial/specialty gas to name a few, helping to diversify the Dresser NGS portfolio."

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) -- Freeport LNG has announced that it has loaded its 100th LNG cargo, which departed from Freeport LNG’s terminal on October 30, according to Hydrocarbonprocessing.

“This is a tremendous achievement for Freeport LNG and our customers,” said Michael Smith, founder, chairman and CEO, Freeport LNG. “Achieving this milestone safely and efficiently is a true testament to the dedication, discipline and drive of our workforce who play an integral role in Freeport LNG’s continued success.”

Freeport LNG loaded its first cargo in September 2019. The company began full commercial operations of its USD13.5 billion, three train facility in May. In addition to achieving this 100th cargo, carried by BP’s British Contributor, Freeport LNG recently marked another significant milestone, its first nighttime transit. The vessel departed Freeport LNG’s terminal on the evening of October 6. The company anticipates having more routine nighttime transits by early next year.

As MRC reported earlier, BP Australia plans to shut its 146,000 b/d Kwinana refinery in Western Australia and convert it into a fuel import terminal, according to the company's statment Oct. 30. The continued growth of large scale, export-oriented refineries throughout Asia and the Middle East has structurally changed the Australian market, BP said, adding that regional oversupply and sustained low refining margins mean the Kwinana refinery is no longer economically viable.

We remind that a “technical defect” disrupted production at part of the Gelsenkirchen integrated refinery and petrochemicals complex in Germany, early last week. The company operates plants in the Horst and Scholven districts at Gelsenkirchen, with the defect occurring at Horst. BP sais it was working to resume normal operations as soon as possible. It did not specify which unit has been affected, with sources suggesting it was the fluid catalytic cracker, but this was not confirmed by the company.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Deliveries of refined oil products from Total’s Grandpuits plant in France were disrupted on Thursday after the CGT union said employees had begun a 48 hour strike to protest against planned job cuts at the site, said Hydrocarbonprocessing.

Total confirmed in a statement that output had been affected, but added that it would continue “to ensure supplies for its network of petrol stations and clients”.

The CGT said production had been reduced to minimal levels and that deliveries of finished products by pipeline, truck or train from Grandpuits had been halted.

As MRC reported earlier, within the framework of its net zero strategy, Total will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform and will invest more then EUR500 mln into this project. By 2024 the platform will focus on four new industrial activities: production of renewable diesel primarily intended for the aviation industry, production of bioplastics, plastics recycling and operation of two photovoltaic solar power plants.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

1. Reliance reports YOY fall in petchem profit, revenue; sequential improvement

MOSCOW (MRC) -- Reliance Industries says that EBDITA dropped 33% year on year (YOY) at its petrochemicals business to 59.64 billion Indian rupees (USD802.79 million) in the fiscal second quarter ended 30 September. Quarterly sales for this sector were Rs296.6 billion, down 23% YOY, said Chemweek. The company says, however, that compared with the preceding quarter, prices of polypropylene (PP), polyethylene (PE), and polyvinyl chloride (PVC) strengthened by 13%, 17%, and 25%, respectively, due to tight supply with regional turnarounds and an improvement in demand. With increased feedstock prices, para-xylene (p-xylene) prices firmed 10% quarter on quarter (QOQ) and purified terephthalic acid (PTA) and ethylene glycol prices increased by 4% and 10%, respectively. Naphtha prices increased by 56% QOQ because of healthy demand. Reliance says that its steam-cracker margins improved QOQ due to the feedstock mix and “favorable economics for ethane cracking.” Its crackers operated at near 100% utilization during the quarter. The company recorded higher QOQ production volume and higher volume placement in the domestic market. "Domestic demand has sharply recovered across our oil-to-chemicals business and is now near pre-COVID levels for most products,” says Mukesh Ambani, chairman and managing director at Reliance.



MRC