|
MOSCOW (MRC) -- The global oil and gas
industry has witnessed a marginal increase in the number of oil and gas
contracts from 1,104 in Q2 2020 to 1,136 in Q3 2020, said Hydrocarbonprocessing.
This
is in spite of challenges such as crude oil process and the COVID-19 outbreak,
says GlobalData, a leading data and analytics company. The industry recorded
contract value of USD14.16B in Q3 2020, as compared to the previous quarter that
reported USD32.51B in value. Primarily this difference was due to a high value
USD19.21B contract agreement reported by Qatar Petroleum in Q2 2020.
The
key contract in Q3 2020 was JGC’s Engineering, Procurement, Construction and
Commissioning (EPCC) work for the 34,500 bpd FCC unit, 55,000 bpd VDU unit and
40,000 bpd Diesel Desulfurization unit for the upgrade of Basra refinery project
in Al-Basrah, Iraq.
GlobalData’s latest report, ‘Global Oil and Gas
Industry Contracts Review, Q3 2020’, states that the upstream sector reported
758 contracts in Q3 2020, followed by the midstream and downstream/petrochemical
sector with 205 and 183 contracts, respectively, during the
quarter.
Europe recorded majority of the contracts, with 495 contracts in
Q3 2020, followed by Asia and North America with 240 and 215 contracts,
respectively, during the quarter.
Operation and Maintenance (O&M)
represented 50% of the total contracts in Q3 2020, followed by contracts with
multiple scopes such as construction, design and engineering, installation,
O&M and procurement, which accounted for 15%.
As MRC informed before,
slumping fuel consumption during the pandemic is accelerating the long-term
shift of refining capacity from North America and Europe to Asia, and from
older, smaller refineries to modern, higher-capacity mega-refineries. The result
is a wave of closures, often centering on refineries that only narrowly survived
the previous closure wave in the years after the recession in 2008/09.
We
remind that
PetroChina has nearly doubled the amount of Russian crude being processed at its
refinery in Dalian, the company's biggest, since January 2018, as a new supply
agreement had come into effect. The Dalian Petrochemical Corp, located in the
northeast port city of Dalian, was expected to process 13 million tonnes, or
260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from
the previous year's level. Dalian has the capacity to process about 410,000 bpd
of crude. The increase follows an agreement worked out between the Russian and
Chinese governments under which Russia's top oil producer Rosneft was to supply
30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000
bpd. That would have represented an increase of 50 percent over 2017
volumes.
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 density 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. |
 |
