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Easton acquires South Texas Pipeline System from ExxonMobil

November 12/2020

MOSCOW (MRC) -- Midstream operator Easton Energy has agreed to buy a petrochemical pipeline system that runs from Houston to Corpus Christi from oil major Exxon Mobil, moving to capitalize on South Texas' growing petrochemical market, said Chemweek.

The South Texas Pipeline System has 720 miles of pipeline and runs from Exxon's Clear Lake and Katy Gas Plants to Energy Transfer Partners' King Ranch Gas Plant and the Port of Corpus Christi. The line has historically been used to transport everything from oil and natural gas liquids, but most recently shipped refinery grade propylene.

The system will also connect to Easton Energy's 50 million barrel salt dome storage facility in Markham, Texas, which is located between the petrochemical markets in Houston and Corpus Christi.

The acquisition is anticipated to close early next year. The companies did not disclose a price on the deal.

As MRC informed earlier, Exxon Mobil Corp has also recently announced it will lay off about 1,900 employees in the United States as the COVID-19 pandemic batters energy demand and prices.

We remind that ExxonMobil has undertaken a planned shutdown at its cracker in Singapore. The company halted operations at the cracker for maintenance on September 14, 2020. The cracker is expected to remain off-line till end-October, 2020. Located at Jurong Island, Singapore, the cracker has an ethylene production capacity of 1 million mt/year and a propylene production capacity of 450,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, Exxon Mobil.
Category:General News
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