The Prax Group signs exclusive crude oil supply arrangement

MOSCOW (MRC) -- The Prax Group announced that it has completed an exclusive crude oil and feedstocks supply arrangement with Trafigura, a market leader in the global commodities industry, said Hydrocarbonprocessing.

Under the terms of the transaction, Prax will purchase crude oil and refinery feedstocks from Trafigura for all of its requirements for Prax Lindsey Oil Refinery, located near Immingham in the Humber estuary, in the North East region of the United Kingdom.

Under the new agreement, Trafigura will use its extensive global reach in international oil markets to source the optimal range of crude oils and feedstocks for the refinery.

Sanjeev Kumar, CEO of the Prax Group, said: “This arrangement is an important step in the Group’s plans for the long-term growth of the refinery and it will pave the way to further strengthen our long-term relationship with Trafigura. It will provide operational and planning flexibility, helping us to continue to deliver an excellent level of service to our customers.

Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura, said: “Trafigura is delighted to be working with the Prax Group following their new refinery acquisition. We’re committed to supporting our customers by providing access to the best opportunities available in the global commodity markets."

The Prax Group took over ownership of Lindsey Oil Refinery from Total on 1st March 2021. With an annual production capacity of 5.4 million tonnes, the acquisition underpins the Group’s long-term strategy to be fully integrated across the oil value chain from upstream to downstream, and secures local supply for the trade and sale of oil products for its substantial downstream presence in the United Kingdom.

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.

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 ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- The European Commission has conditionally approved Japanese company Mitsui & Co’s planned acquisition of a controlling interest in Belgian company Belchim Crop Protection, said Chemweek.

Mitsui agreed to the acquisition in December 2019. The approval is conditional on full compliance with a commitments package offered by Mitsui. The Commission commented that Belchim as well as Mitsui & Co through its subsidiary Certis Europe cater to high-value crops such as potatoes, vegetables and grapevines. Its investigation found that the proposed transaction would have reduced competition in two specific products: plant growth regulators (PGRs) used to prevent or control sprouting in stored potatoes; and paraffinic oils used to prevent or limit the spread of viruses in seed potatoes and flower bulbs.

In PGRs, the Commission says that since the 2020 EU ban of chlorpropham, both Mitsui and Belchim have been among very few suppliers that sell, or are about to sell, alternative products to chlorpropham in post-harvest potato PGRs markets in Denmark, Germany, Poland, Sweden, and potentially in Finland and Norway. The transaction would have led to high combined market shares in countries where Mitsui and Belchim compete. Also, it would have eliminated competition from Mitsui as a potential entrant in Finland and Norway. The Commission was therefore concerned that this would give rise to higher prices for potato PGRs in those countries.

On paraffinic oils, the Commission found that Mitsui is the main supplier of paraffinic oils for virus control in seed potato and flower bulb crops in the Netherlands. It also found that there were no suppliers other than Belchim who were likely to make a significant entry on those markets in the near future. As a result of the merger, Dutch farmers could have seen higher prices in paraffinic oils used to control viruses in seed potatoes and flower bulbs.
To address the Commission's competition concerns, Mitsui offered to transfer its distribution agreement and customer relationships for its potato PGRs in one or two packages (one for Germany and Poland and the other for the Nordic countries) to one or two remedy takers. If Mitsui cannot transfer both packages within a certain timeframe, it has offered to transfer instead the Belchim distribution agreement and customer relationships for its PGR product under the same terms.

Mitsui also offered to transfer to a remedy taker, the Belchim distribution agreement and other relevant data and agreements for its paraffinic oils for virus control in seed potatoes and flower bulbs in the Netherlands.
Both the potato PGRs and the paraffinic oil divestment businesses include access to brands and IP, application machinery and education and training. Mitsui cannot implement the acquisition of Belchim before the Commission has formally assessed and approved the transfer of each of the packages to remedy takers.

As MRC informed earlier, Mitsui Chemicals operated its naphtha cracker normally following a maintenance turnaround. Company resumed operations at the cracker on July 19, 2020. The cracker was shut for maintenance on June 11, 2020. Located in Osaka, Japan, the cracker has an ethylene capacity of 500,000 mt/year and a propylene capacity of 280,000 mt/year.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- The chief executive of Brazil's state-run oil company Petrobras, Roberto Castello Branco, said biofuels, especially those for the aviation industry, will be key for "de-carbonizing" transportation in coming years, a goal for energy transition, reported Reuters.

Brazil, a major corn and sugarcane producer and a country with a more diversified energy matrix than its neighbors, is also a large consumer of domestic ethanol, with pure gasoline supplies a rarity.

"For the future, we are evolving to bio jet fuel, which will be very important for de-carbonizing transportation, so we are focusing on ships and aircraft," he said at the CERAWeek energy conference on Tuesday.

Aviation biofuels are biomass-derived fuels from plants or waste used to power aircrafts. They produce lower CO2 emissions than conventional jet fuel.

Petrobras is among the region's largest exporters of low-sulfur marine fuel. Competitors including Venezuela's PDVSA and Mexico's Pemex have not showed much progress in recent years in producing low-sulfur fuels that exports markets demand.

Brazil increased 4.4% its imports of refined products, mainly diesel, to 34.2 million cubic meters in 2019 but also boosted fuel exports 2.6% that year, including fuels for the maritime and aviation industries, to 13.7 million cubic meters, according to figures by the nation's oil regulator.

Asked about how a giant company such as Petrobras, which has focused on keeping production costs low, can move faster to achieve energy transition, Castello Branco said that "elephants can dance and fly as well."

"Petrobras was known as an elephant, a state oil company very big and too bureaucratic, very slow-moving. We are looking for fast solutions and diagnosis for solving problems as we are living in a technology-driven world."

The company aims to capture 25 million tonnes of carbon dioxide (CO2) through 2025 while reducing emissions from its fossil fuel operations.

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 ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

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.

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) in Europe, according to the company's press release.

Effective March 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR520 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR520 per metric ton;
- MAGNUM ABS resins - by EUR430 per metric ton.

As MRC informed before, Trinseo last raised its prices for all PS and ABS on February 1 2021, as stated below:

- STYRON GPPS -- by EUR40 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR40 per metric ton;
- MAGNUM ABS resins - by EUR200 per metric ton.

According to ICIS-MRC Price report, prices of Nizhnekamskneftekhim's PS is expected to rise by Rb20,000/tonne in early spring under the pressure of a sharp and significant increase in feedstock prices and strong demand in the PS market. The main market players said they expect the shortage of PS to remain in March. Penoplex announced plans to raise prices of its material by Rb20,000/tonne.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSCOW (MRC) -- Chevron Phillips Chemical Company LLC (Chevron Phillips Chemical) has announced that Bruce Chinn, currently president, Chevron Chemicals, will become chief executive officer. B.J. Hebert, currently executive vice president and chief operating officer, will become president and chief operating officer, as per the company's press release.

Chinn and Hebert will succeed into the CEO and president roles held by Mark Lashier, who is retiring from Chevron Phillips Chemical. These changes will be effective April 1, 2021.

“It has been a great privilege to serve as president and CEO of Chevron Phillips Chemical,” said Lashier. “From growing our world class international manufacturing asset base to advancing key sustainability initiatives, I am incredibly proud of what we have achieved together. Throughout our 20-year history, we have maintained a culture where employees truly care about each other, our customers and communities, demonstrated by our strong safety, operational and financial performance.”

Chinn is a chemical industry veteran with more than 35 years of relevant experience. He began his career at DuPont where he held positions of increasing responsibility in manufacturing, technical, and business leadership. He joined Chevron in 2006 and held executive leadership roles in refining and at facilities in Venezuela, Richmond, California, and Pascagoula, Mississippi. Chinn is active in his community and industry, currently serving as vice chairman of the American Institute of Chemical Engineers Foundation Board of Trustees and a member of the Executive Leadership Council. He holds a bachelor’s degree in chemical engineering from Texas A&M University.

“Bruce is a proven leader with a multidimensional background in international operations and business, which positions him well to drive the company’s strategy and continue Chevron Phillips Chemical’s trajectory of operational and financial success,” said Kevin J. Mitchell, executive vice president, finance and chief financial officer at Phillips 66 and member of the Chevron Phillips Chemical Board of Directors.

Hebert joined Chevron Phillips Chemical in 2020 as executive vice president and chief operating officer. He has more than 30 years of experience in the chemical industry and served as president of Occidental Chemical (OxyChem) for three years prior to joining Chevron Phillips Chemical. During his tenure with OxyChem, he held numerous roles of increasing responsibility including senior vice president, basic chemicals; vice president and general manager, vinyls; and manufacturing director, chemicals. Hebert began his career with Vista Chemicals, where he served in plant and operations engineering roles. He holds a bachelor’s degree in chemical engineering from McNeese State University and a Master of Business Administration from Southern Methodist University.

“Since he joined Chevron Phillips Chemical last year, B.J. has demonstrated a strong focus on safe, reliable operations and established himself as an energetic and forward-thinking leader,” said Michael E. ("Mike") Coyle, president, Manufacturing, Chevron and member of the Chevron Phillips Chemical Board of Directors. “We look forward to seeing the company continue to thrive under Bruce and B.J.’s leadership.”

As MRC reported earlier, in March 2018, Chevron Phillips Chemical, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit is one of the largest and most energy efficient crackers in the world. In September 2017, the company announced the successful commissioning and start-up of two new Marlex polyethylene (PE) units in Old Ocean, Texas, based on the company’s proprietary MarTech technologies. Together, these assets form the bulk of the company’s US Gulf Coast Petrochemicals Project (USGCPP), which was first announced in 2011.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC