Several Asian refiners suffer April supply cuts by Saudi Arabia

MOSCOW (MRC) -- Top oil exporter Saudi Arabia has cut the supply of April-loading crude to at least four north Asian buyers by up to 15%, while meeting the normal monthly requirements of Indian refiners, according to Hydrocarbonprocessing with reference to refinery sources' statement to Reuters.

Saudi Arabia's reduction in supplies come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, decided in March to extend most of its supply cuts into April. Thus, Saudi Arabia has pledged to continue with an extra 1 million barrels per day voluntary output cut for a third month in April.

Chinese refiners received a small cut in their Saudi supply, while the reduction in volumes for Japanese buyers was between 10% and 15%, the sources said.

Saudi Aramco is also commissioning its 400,000-bpd Jizan refinery in the south west of the country which may have reduced its exports, one of the sources said.

For India, Saudi Aramco has rejected Indian refiners' requests for extra supplies in April, but will keep average monthly supplies to the country unchanged, three Indian refining sources said.

As MRC reported earlier, Saudi Arabian state oil giant Aramco is betting on an Asian-led rebound in energy demand in 2021 after it reported a steep fall in last year's net profit and scaled back its spending plans. The COVID-19 pandemic took a heavy toll on the company and its global peers in 2020, but oil prices have rallied this year as economies recover from last year’s downturn and after oil producers extended output cuts.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Texas should consider a central clearinghouse around natural gas availability in the case of future cold weather events like Winter Storm Uri, reported Reuters with reference to a Phillips 66 refining executive speaking at an industry conference Monday.

The refining industry in the US Gulf Coast took several weeks to recover from a deadly deep freeze that sent temperatures below freezing for several days in February.

As MRC wrote previously, in line with US olefins capacity, over 80% of US polyolefins capacity was downed by the recent winter storm. There remained a considerable amount of capacity offline or in the early stages of restarting a full month later. This was partly due to the limited feedstock availability for olefins monomer, comonomer, and additives in the region.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Chevron Corporation and Honeywell announced the commissioning and start-up of the world’s first commercial-scale ISOALKY process unit that utilizes ionic liquids to produce alkylate. The ISOALKY™ technology represents a major innovation in alkylation technology, said the company.

First used in Chevron’s Salt Lake City refinery, the ISOALKY™ technology is designed to meet the refining industry’s needs for a cost-effective alternative to conventional liquid acid systems that offers process safety advantages. Using a non-aqueous liquid salt, or ionic liquid, the revolutionary new catalytic process is handled with standard personal protective equipment and produces a valuable high-octane blending component that helps lower the environmental impact of gasoline. Pioneered by Chevron U.S.A., Inc., a subsidiary of Chevron, and licensed to Honeywell UOP, the technology is offered to the entire industry under the ISOALKY brand name.

Through a partnership with Honeywell UOP, the ISOALKY process unit at Chevron’s refinery in Salt Lake City will be able to meet the growing demand for higher-octane blending components that lower the environmental impact of gasoline.

Through a partnership with Honeywell UOP, the ISOALKY™ process unit at Chevron’s refinery in Salt Lake City will be able to meet the growing demand for higher-octane blending components that lower the environmental impact of gasoline.

ISOALKY™ technology can be used in new refineries as well as in existing facilities undergoing capital expansion or retrofit applications. ISOALKY™ technology has wider and improved feed flexibility relative to conventional alkylation technologies. Ionic liquids are regenerated on-site, eliminating the need for road or marine transportation for offsite regeneration and polymer byproduct handling. More information about ISOALKY™ technology can be found here.

As MRC informed earlier, Chevron Phillips Chemical (CP Chem) halted production at its cracker in Sweeny (Old Ocean, TX, USA) on February 15 due to cold weather. Extreme cold and instability of power supply and fuel gas supply systems led to shutdowns of existing cracking units No. 22, 24 and 33 and the production of polyethylene (PE). The company's total ethylene production capacity in Sweeney is 1.975 million tonnes per year of ethylene, 165 thousand tonnes of propylene, 500 thousand tonnes of HDPE and 500 thousand tonnes of LDL.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Honeywell UOP is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. Honeywell UOP is part of Honeywell’s Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions, a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.
MRC

MOSCOW (MRC) -- Maire Tecnimont S.p.A. announced that its subsidiaries Tecnimont S.p.A. and Tecnimont Arabia Limited have been awarded by Advanced Global Investment Company (AGIC) a package of the Integrated PDH-PP complex project, relating to the realization of two Polypropylene Units on an Engineering Procurement and Construction Lump Sum Turn-Key basis, said the company.

The total contract value is approximately USD 500 million. The project scope of work entails complete engineering services, equipment and out of kingdom material supply (to be performed by Tecnimont) and in kingdom material supply, erection and construction activities up to start up and guarantee test run (to be performed by Tecnimont Arabia Limited). The project completion is expected by the second quarter of 2024.

The two Polypropylene Units will have a capacity of 400,000 tons per year each and will be located inside the Integrated PDH-PP (propane dehydrogenation - polypropylene) complex in Jubail Industrial City II, in the Kingdom of Saudi Arabia.

AGIC is a wholly owned subsidiary of Advanced Petrochemical Company, a Saudi joint stock company established in 2005 and listed on the Saudi Stock Market since 2006. It manufactures polypropylene products for a range of industries including automotive, consumer product, healthcare, packaging, and textile.

Pierroberto Folgiero, Maire Tecnimont Group Chief Executive Officer, commented: “We are really enthusiastic to start a new valuable relationship with such a prominent client in one of our historical and most strategic markets in the petrochemicals sector. This achievement provides further evidence of Maire Tecnimont Group’s global leadership in polyolefins, its technology-driven approach and distinctive competencies in managing large complex projects. Moreover, this important result represents another significant milestone of our Gas Monetization strategy, enabling us to be geared up for Saudi Arabia’s large wave of investments in downstream."

As per MRC, Advanced Petrochemical Co. announced April 11, 2021, that operations at its polypropylene plant resumed as of March 28, 2021, and operations at its propylene plant restarted as of April 11, 2021, after the completion of scheduled maintenance works.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Honeywell announced that Lotte GS Chemical Corp. will use Honeywell UOP Q-Max, Phenol 3G, and Evonik MSHP technologies to produce more than 565,000 metric tons per year of phenol and acetone at its petrochemicals facility in Yeosu, Korea, according to Hydrocarbonprocessing.

UOP is providing a license for the technology, in addition to basic engineering design services, key equipment, catalysts and adsorbents and technical services.

As part of the project, UOP will provide a cumene unit and a phenol unit with alpha-methylstyrene (AMS) hydrogenation. The combined technologies will allow Lotte GS Chemical to produce phenol and acetone derivatives from benzene and polymer-grade propylene.

“Global demand for plastics and resins such as polystyrene, styrenic resin, polycarbonate and phenolic resin is driving the need for aromatic derivatives,” said Bryan Glover, vice president and general manager of Honeywell UOP’s Process Technologies business. “By increasing the production of phenol and acetone, Lotte raises its market position in high-margin petrochemicals and contributing to the global supply.”

As MRC reported earlier, in March 2021, Honeywell announced that Hengli Petrochemical Co. Ltd. successfully used Callidus burner technology from Honeywell UOP to minimize nitrogen oxide (NOx) and carbon monoxide (CO) emissions in China, and reduce the impact of these emissions while ensuring safe and stable operations.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 tonnes a year earlier).
MRC