GAIL petrochemicals segment QoQ sales grew 37.9% for Q2 FY20-21

MOSCOW (MRC) -- GAIL Ltd., state-owned petrochemicals manufacturer based in India, announced its results for the second quarter ended September 30, 2020, reported Kemicalinfo.

Petrochemicals Segment Q2 Results- QoQ: the segment’s net profit grew to Rs 176.31 crores for the period ended September 30, 2020 as against net loss of Rs 154.43 crores for the previous quarter. Net sales increased 37.9% to Rs 1684.72 crores for the period ended September 30, 2020 as compared to Rs 1221.69 crores during the previous quarter.

Petrochemicals Segment Q2 Results- YoY: the segment’s net profit grew to Rs 176.31 crores for the period ended September 30, 2020 as against net loss of Rs 82.32 crores for the prior-year quarter. Net sales grew 4.0%to Rs 1684.72 crores for the period ended September 30, 2020 as compared to Rs 1619.16 crores during the prior-year quarter.

Petrochemicals Segment Half-Year Results- YoY: the segment’s net profit grew to Rs 21.88 crores for the 6 months period ended September 30, 2020 as against net loss of Rs 309.35 crores for the prior-year 6 months period. Net sales dropped 6.4% to Rs 2906.41 crores during the 6 months period ended September 30, 2020 as compared to Rs 2731.92 crores during the prior-year 6 months period.

On the impact of current pandemic on its financial results, GAIL Limited in its stock exchange filing said, “The COVID-19 pandemic globally and in India has impacted business in general and caused slowdown of economic activity. The physical performance of the company has improved as compared to previous quarter and reached to almost normal levels.”

As MRC informed earlier, GAIL India Ltd has restarted its polyethylene (PE) unit in Pata, Uttar Pradesh. Thus, the company's 400,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant in Pata, Uttar Pradesh resumed operations just a couple of days after the company shut down the unit on 25 September 2020 due to feedstock supply disruption.

We remind that on 24 September 2020, a fire broke out at the Oil and Natural Gas Corporation (ONGC) gas processing plant in Hazira, India with no casualty or injury reported. As a result, the ruptured pipeline disrupted feedstock supply to GAIL. ONGC’s own petrochemical plant, namely ONGC Petro Additions (OPaL) was not affected by the incident as it is situated in a different location.

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

India diesel sales dip in first half of November

India diesel sales dip in first half of November

MOSCOW (MRC) -- India’s diesel sales dipped in the first half of November after briefly recovering from the impact of the COVID-19 pandemic in October, raising concerns about industrial growth in Asia’s third largest economy, said Hydrocarbonprocessing.

Diesel sales by the country’s state-run refiners fell 5% during the first fifteen days of November compared with the year earlier period, to 2.86 million tons, according to provisional data compiled by Indian Oil Corp (IOC).

India’s diesel consumption, which accounts for about 40% of overall refined fuel sales in the country and is a key parameter linked to its economic growth, had risen for the first time in eight months in October. IOC, Hindustan Petroleum Corp and Bharat Petroleum own about 90% of India’s retail fuel outlets.

Lower diesel sales in the world’s third largest crude importer could be bad news for oil producers and refineries as the fuel accounts for the bulk of refiners’ output. However, industry officials say diesel demand typically picks up before the festival season, which runs from mid-October until early November, and slows down during and after it.

Sales of gasoline rose marginally to 1.03 million tons, the industry data showed, while sales of jet fuel were down 53% and liquefied petroleum gas sales fell 2%.

Activity in India’s dominant services industry also expanded for the first time in eight months in October. Indian government officials have cited higher power consumption and tax collections as indicators of demand returning to pre-COVID levels.

India’s daily COVID-19 case count has steadily declined since September, although it has the second highest total number of cases in the world.

As MRC informed earlier, India’s fuel consumption in October registered its first year-on-year increase since February, as slowing coronavirus cases and increased mobility accelerated an economic recovery. Consumption of refined fuels, a proxy for oil demand, rose 2.5% in October from the prior year to 17.78 million tons and nearly 15% higher from the previous month, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.

As MRC informed previously, India’s top refiner Indian Oil Corp has been operating at 100% capacity since early November as local fuel demand has recovered.

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 1,594,510 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

Hexion Inc. Names Karen M. Fowler as first Director of Diversity, Equity and Inclusion

MOSCOW (MRC) - Hexion Inc. announced that Karen M. Fowler has joined the Company as its first Director of Diversity, Equity and Inclusion, said the company.

Fowler will be responsible for accelerating the organization’s diversity, equity and inclusion worldwide – including developing and implementing a strategy to attract, retain and develop diverse talent and promote an inclusive environment where associates at all levels can perform their best.

"At Hexion, we are committed to celebrating the diversity of our associates and creating an environment of inclusion,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “Diversity and inclusion enhance creativity and innovation as team members come together with different information, opinions, and viewpoints. Diversity and inclusion encourage the search for novel information and perspectives, leading to better decision making and problem solving."

Fowler joins Hexion with more than 25 years of experience in driving change within organizations. Most recently, she served as the Director, Ohio Diversity Councils, National Diversity Council. In this role, Fowler consulted with C-suite leaders, business executives and HR Business Partners to build DE&I capability, as well as provide strategies and resources to guide members and corporate partners with their workplace diversity and inclusion efforts. Her experience also includes leadership roles within Thermo Fisher Scientific, Time Warner Cable, and The Ohio State University.

"To create a strong culture of inclusion and grow the diversity of our organization, it is critical to have an experienced leader to develop and execute our diversity, equity and inclusion strategy,” said John Auletto, Executive Vice President, Human Resources. “We are confident that Karen’s vast experience will enhance our approach to diversity, equity and inclusion across the globe, and Karen will be instrumental in ensuring Hexion is an industry leader in creating an environment of inclusion."

As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), has shut down its BPA plant in Pernis, the Netherlands for scheduled maintenance. Hexion is currently carrying out scheduled repairs at the enterprises for the production of epichlorohydrin with a capacity of 90,000 tonnes/year and bisphenol-A (BPA) with a capacity of 120,000 tonnes/year in Pernis in the Netherlands. The renovation began in early November and will last until the end of November, a company source added. The exact dates were not disclosed.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.

MRC

Lummus Technology awarded contract for Shandong Yulong refining and petrochemical integrated project

MOSCOW (MRC) -- Lummus Technology announced that it has been awarded a technology contract by Shandong Yulong Petrochemical Co., Ltd., a subsidiary of China’s Nanshan Group, said Hydrocarbonprocessing.

Lummus will provide Master Licensor services for multiple licensed units, consisting of two mixed feed crackers, an EB/SM plant and two polypropylene (PP) lines. The scope includes technology licensing, process design package, training and advisory services, master licensor integration services and catalyst supply for the PP plant.

The plants will be part of Shandong Yulong’s 20,000 kta Refining and Petrochemical Integrated Project, a mega complex to be located in the Province of Shandong that recently received government approval.

"Being awarded the Master Licensor for multiple licensed units, and participation in such a large scale project in China, is very significant for Lummus” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “This award underscores our ability to deliver the best process technology from our comprehensive portfolio, ensuring that customers such as Shandong Yulong benefit from low operating expenses and high reliability throughout their entire asset lifecycle. It is also a testimony to our technology leadership, as we have captured many projects since China’s COVID-19 recovery."

The mixed feed ethylene crackers will utilize Lummus’ market-leading ethylene technology incorporating the SRT (Short Residence Time) VII cracking heaters that have the highest proven yields in the industry, and the low-pressure chilling train and patented multi-component refrigeration, which reduces investment costs and improves reliability by eliminating plant equipment. The EB/SM plants will utilize the Lummus/UOP EBOne and CLASSIC SM technologies for reliable and efficient production of ethylbenzene and styrene monomer, respectively. The PP plant will utilize Lummus Novolen Technology which demonstrates low overall capital and operating cost, while providing the best range in products and high reliability.

As MRC informed earlier. Haldia Petrochemicals (HPL), a flagship company of The Chatt­erjee Group (TCG), alo­ng with its international partner Rhone Capital has acquired US-based Lummus Technology at an enterprise value (EV) of USD2.725 billion (around Rs 20,590 crore) from McDermott International. In the joint acquisition, HPL’s share is at 57 per cent, the balance would be held by Rhone Capital. Under the new dispensation, Lummus Technology wou­ld function as a ‘standalone’ autonomous entity.

As MRC informed earlier, in late March 2020, India's private-sector Haldia Petrochemicals (HPL) shut its naphtha cracker after ports in the country declared force majeure to prevent the spread of the coronavirus.

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.
MRC

OQ Chemicals hikes price globally for neopentyl glycol

MOSCOW (MRC) -- OQ Chemicals (Monheim am Rhein, Germany) says it is raising its prices globally for neopentyl glycol due to strong demand and increasing raw material costs, effective 1 December 2020 or as contracts otherwise allow, according to Chemweek.

The price of the oxo intermediate product in North America and Mexico is being increased by 8 cents per pound, while in South America it will rise by USD180/metric ton. In Europe the product price is being hiked to EUR150/metric ton (USD178), while in all other regions of the world the price will increase to USD180/metric ton, it says.

OQ Chemicals (formerly Oxea) last raised the price of neopentyl glycol, along with several other oxo intermediate products, in September when it increased prices in the Americas.

As MRC reported earlier, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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.

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC