French energy group Total buys 20% stake in India's Adani Green Energy

MOSCOW (MRC) -- French oil and energy group Total has agreed to buy a 20% minority stake in India's Adani Green Energy Limited (AGEL) from Adani Group, as Total builds up its presence in the renewable energy sector, said Reuters.

Total said on Monday that its purchase of the stake in AGEL would give Total a seat on the board of directors of AGEL. Total and Adani had earlier struck a partnership deal back in 2018 in the LNG sector.

"Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties," Total CEO and Chairman Patrick Pouyanne said.

"Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas," he added.

As MRC informed earlier, Total and Engie (Paris, France) will cooperate in developing, building, and operating green hydrogen production and storage facilities at the 500,000-metric tons/year La Mede biorefinery at Chateauneuf-les-Martigues, France, to create supplies for biofuel output.

As MRC wrote 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 DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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

Halliburton points to oil industry recovery after profit beat

MOSCOW (MRC) -- Halliburton Co predicted a recovery in the global oil and gas industry from the second quarter after the oilfield services provider beat profit estimates on cost cuts and modest gains in activity following last year's slump, said Hydrocarbonprocessing.

Crude oil prices are holding to gains from a rebound in late-2020 from a coronavirus-induced slump, with Brent crude hovering around USD55 per barrel on Tuesday after averaging around $45 in the last three months of 2020. This has encouraged producers to complete more wells and add rigs. North America rig count was 410 at year-end, compared with 341 in the third quarter.

"We view 2021 as a bit of a transition year, and 2022 is when we see the global rebalancing of supply and demand," Chief Executive Officer Jeff Miller said on a post-earnings call, adding that he expected more consolidation in the industry. Miller said he is optimistic that the upturn in activity in North America would continue, while international markets would bottom out during the first quarter and improve as the year unfolds.

However, he expects pressure to improve shareholder returns will hold output flat this year to 2020 exit levels. Halliburton, which kicked off fourth-quarter earnings for service providers, said revenue from North America jumped 25.8% from the third quarter, while international revenue rose 0.4%.

Completion and production business revenue was 15% higher in the fourth quarter, compared with the preceding three months. The company expects revenue from the business to rise 3% to 5% in the current quarter from the fourth, though operating margins are expected to fall 150 to 200 basis points.

Drilling and evaluation revenue rose 1.9% sequentially and is expected to increase in the low single digit in the first quarter from the fourth. Total revenue of USD3.24 billion beat analysts' estimates of USD3.21 billion, while adjusted net income was 3 cents above estimates at 18 cents per share, according to Refinitiv IBES data.

Halliburton, like its customers, has cut its capital spending and reduced its workforce, as energy demand and prices tumbled last year. The cost cuts helped the company generate free cash flow of USD1.15 billion in 2020, above the USD1 billion it had targeted.

Still, profit slumped 43.9% and revenue tumbled 37.6% from the fourth quarter of 2019 as activity levels were still well below year-ago levels. Rivals Schlumberger and Baker Hughes are scheduled to report results later in the week.
We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

Caribbean Gas Chemical JV starts up USD1-billion methanol, DME plant in Trinidad and Tobago

MOSCOW (MRC) -- Mitsubishi has announced the startup of commercial operations at its new USD1-billion methanol and dimethyl ether (DME) joint venture (JV) facility at La Brea, Trinidad and Tobago, said Chemweek.

The plant has a nameplate production capacity for 1 million metric tons/year (MMt/y) of methanol and 20,000 metric tons/year of DME.

The plant began operating commercially on 18 December 2020, it says. The facility is operated by Caribbean Gas Chemical Ltd. (CGCL), a JV of Mitsubishi Gas Chemical (MGC), Mitsubishi Corp., Mitsubishi Heavy Industries Engineering (MHIE), National Gas Co. (NGC) of Trinidad and Tobago, and Massy Holdings. Feedstock for the plant is sourced primarily from domestic natural gas fields.

The CGCL JV was established in March 2013, with shareholders MGC and Mitsubishi each owning 26.25%, NGC holding 20%, MHIE 17.5%, and Massy 10%. Mitsubishi Corp. currently handles around 2.5 MMt/y of methanol, an amount equivalent to approximately 10% of global offshore trading, it says. Global demand for methanol is approximately 81 MMt/y, with that total expected to increase steadily in step with GDP growth, it says.

The final investment decision for the plant was taken by Mitsubishi in September 2015 after the three Mitsubishi group companies signed an initial agreement with NGC and Massy in April that year. MGC provided its process technology for the plant, while MHI built the facility under an engineering, procurement, and construction contract. Commercial production was scheduled originally for March 2019. MGC, Mitsubishi, and Massy will sell the output globally.

Earlier this month Methanex (Vancouver, British Columbia, Canada) announced it would continue to idle indefinitely its 875,000-metric tons/year Titan methanol facility at Couva, Trinidad, after halting production at the plant in March 2020 due to the COVID-19-related downturn in manufacturing activity worldwide. Methanex’s other methanol facility in Trinidad, the 1.822-MMt/y Atlas plant, also at Couva, continues to operate with a natural-gas supply agreement due to expire in 2024.

As MRC reported earlier, in December 2020, MCC acquired a ‘greenfield’ property at a large integrated site on the Mississippi River in Geismar, Louisiana, the US. It also plans to advance its feasibility study for the design and construction of a 350,000mt Methyl Methacrylate (MMA) plant, which will be based on its proprietary ALPHA technology. Currently, the project is in the early engineering stage and the final investment decision (FiD) is expected to take place in early 2022. If the project gets approval, the plant would commence production in 2025.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall PVC production reached 891,200 tonnes in the first eleven months of 2020, down by 0.3% year on year. However, two producers managed to increase their PVC output.
MRC

Mubadala, ADNOC and ADQ form alliance to grow green hydrogen economy in the UAE

MOSCOW (MRC) -- Mubadala Investment Company (Mubadala), The Abu Dhabi National Oil Company (ADNOC), and ADQ, have signed a MoU on Sunday to establish the Abu Dhabi Hydrogen Alliance, according to GULF BUSINESS.

The Alliance will work towards establishing Abu Dhabi as leader of low-carbon green and blue hydrogen in emerging international markets and will help build a substantial green hydrogen economy in the UAE.

It will also develop a roadmap to accelerate the UAE’s adoption and use of hydrogen in major sectors such as utilities, mobility and industry, through each of the alliance member’s respective companies.

It will also position Abu Dhabi as key supplier of hydrogen as demand for it grows globally.

ADNOC already produces around 300,000 tons per annum of hydrogen for its downstream operations, with plans to expand to more than 500,000 tons. ADNOC already signed an agreement last week with the Ministry of Economy, Trade and Industry of Japan to explore cooperation on fuel ammonia and carbon recycling, harnessing technologies which will enable the hydrogen economy.

Mubadala meanwhile will contribute through Masdar, and its extensive network of international technology and investment partners. ADQ will bring together its portfolio companies across the energy value chain, with companies such as Abu Dhabi Ports, Abu Dhabi Airports, Etihad Rail, Etihad Steel, Abu Dhabi National Energy Company (TAQA) and Emirates Nuclear Energy Corporation (ENEC) to enable activities undertaken by the Alliance.

While the Alliance will pursue green hydrogen domestically, ADNOC will continue to develop blue hydrogen independently within the UAE.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC group CEO, said: “I am pleased that we are coming together on this important initiative to explore and develop the potential of hydrogen as a new, low carbon fuel. While we explore green hydrogen opportunities through the Alliance, ADNOC will place special emphasis on pursuing blue hydrogen projects by expanding on its existing hydrogen capacity, leveraging its significant gas reserves and best-in-class infrastructure, as well as its extensive customer relationships to help advance the hydrogen industry, both domestically and internationally.

“Working together as an alliance, we will identify viable international market opportunities, while we develop a roadmap to create hydrogen production sites in Abu Dhabi, and the UAE,” added Al Jaber.

Mohamed Hassan Alsuwaidi, CEO of ADQ added: “ADQ looks forward to working with ADNOC and Mubadala in defining the agenda for the Alliance. The scale of resources and experience each company brings to the new Alliance positions Abu Dhabi for accelerated growth in the hydrogen energy field, ultimately supporting the realization of the UAE’s decarbonization objectives.”

The UAE is aiming to have at least 50 per cent of its energy come from sustainable sources by 2050.

As MRC reported previously, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

Petrobras has not signed Brazil antitrust body deferral for refinery sales

MOSCOW (MRC) - Brazilian oil producer Petroleo Brasileiro SA (Petrobras) has not signed an agreement with antitrust regulator Cade on additional commitments regarding refinery divestments, reported Reuters with reference to a securities filing, issued on Monday.

Petrobras has been trying to sell refineries in one of the world's largest fuel markets for almost a decade and it relauched its plan under Chief Executive Officer Roberto Castello Branco, who took office in January 2019.

The latest amendment, which it has not signed, would give the company more time to sign deals after the COVID-19 pandemic reduced demand for fuel and affected the valuation of the plants.

A proposal approved by Cade would postpone from Dec. 31, 2020, to April 30 the deadline for the sale of eight refineries by the state-controlled Petrobras.

As MRC informed before, Brazil’s state-run oil company Petrobras is seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company's recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras's stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company's stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras" activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC