ExxonMobil and USW agree to an orderly transfer of Beaumont refinery to temporary workers in case of lockout

MOSCOW (MRC) -- ExxonMobil and the United Steelworkers union (USW) have agreed to an orderly transfer of the company's Beaumont, Texas, refinery to temporary workers if a threatened lockout begins on Saturday, according to Hydrocarbonprocessing with reference to people familiar with the talks.

The two sides have been in negotiations since January but have been unable to agree on a new union labor contract for the plant, Exxon's third-largest US refinery by capacity. If Exxon locks out the union workers, it would be the first time since 1988 that the Beaumont plant workers have gone off the job in a labour dispute.

Exxon told refinery workers in an email that it wants the union to hold a vote on its latest offer, according to an email viewed by Reuters. It has declined to hold further talks without the vote, the people said.

"We hope the union allows employees to vote on our offer and reach an agreement before May 1," Exxon spokeswoman Julie King said.

Neither side has disclosed details of the proposals for the contract that will replace a six-year pact reached in 2015.

The union rejected Exxon's last proposal and counter offered with a one-year extension. After that rejection, Exxon gave the union notice it planned to lock out hourly employees on Saturday.

USW Local 13-243 represents 650 hourly workers at the 369,024 barrel-per-day (bpd) oil refinery and adjoining lubricants blending and packaging plant.

Exxon has trained managers and engineers from around the United States to operate refinery units. It plans to bring in temporary replacement workers on a unit-by-unit basis beginning Saturday, according to people familiar with the talks. The oil company this week began soliciting former employees and others with at least two years’ experience as process operators to staff units between May 10 and August.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have just entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

MOSCOW (MRC) - The enterprises of Tatneftekhiminvest-holding in the first quarter of this year recorded a record revenue of 500 billion rubles, and the total tax payments of enterprises to the consolidated budget of the Republic of Tatarstan grew 1.7 times, Business Gazeta reports citing data announced on meeting of the board of directors of the company.

At the same time, it is noted that the volume of production has been reduced for almost all companies, and it is still far from the results of the dock 2019 in many areas. So, if you look in the context of industries, then negative dynamics was recorded in the field of oil production and processing, polyethylene production. On the other hand, record volumes of diesel fuel, mineral fertilizers, detergents, polycarbonates and carbon black were produced.

"World prices for most types of products were higher than last year due to recovery after coronacrisis," R. Yarullin said. An abnormal cold snap in the United States led to a reduction in oil and gas production and a halt in chemical production in the south of the country. Together with the growing demand in China, problems at European factories, this led to a shortage of most types of basic plastics, and the prices of fertilizers rose sharply. The profitability of the processing of polymers and rubbers has decreased, and the limitation of the possibility of price increases under concluded contracts and tenders has affected. In the consumer sector, the situation is complicated by the decline in the population's income: the total number of unemployed in the country has grown by 21%. "

In January - March, production volumes in the oil and gas chemical complex of the Republic of Tatarstan decreased by 3% compared to the first quarter of 2020, at basic enterprises - by 6%.

Among other things, it was noted that Nizhnekamskneftekhim increased production by 9%. "The production of polyethylene in the Russian Federation by 2030 will grow at least 1.9 times, the transition to heavier raw materials can become a competitive advantage, because it will provide an opportunity for the development of low-tonnage chemistry," R. Yarullin said.

Kazanorgsintez increased its quarterly plastic output to 25 thousand tons, which is 7% more than last year. Polyethylene output at KOS decreased by 8%, at NKNK - by 5%. The main reason is the lack of raw materials. The reduction in oil production also led to a reduction in the supply of associated gas and ethane from Tatneft; moreover, after the accident at Ufaorgsintez, the supply of ethylene temporarily decreased.

Earlier it was reported that TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects, Kommersant reports with reference to the words of the general director of the company Rafinat Yarullin during a meeting of Tatneftekhiminvest-holding.

It is noted that the companies plan to implement over 30 projects in total. The companies previously signed a legally binding asset pooling agreement. The deal involves the exchange of a minimum controlling stake in TAIF for a 15% stake in SIBUR. To complete the transaction, SIBUR will conduct an additional share issue. The merged enterprise will have an option to buy out the remaining stake in TAIF, and TAIF shareholders will also have the right to activate this option.

SIBUR increased sales of polypropylene and polyethylene last year amid growing utilization of the ZapSibNeftekhim complex. This led to an increase in the company's revenue in the olefins and polyolefins segment by 77.1% to RUB 187.3 billion. This growth was mainly due to an increase in sales of polypropylene and polyethylene as a result of increased utilization of the ZapSibNeftekhim complex and was partially offset by a decrease in prices for these types of products.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.

PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its directions is the "Chemistry, Petrochemistry and Oil and Gas Processing" division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.

Tatneftekhiminvest-holding was established in September 1994 as an industrial and financial company uniting the largest enterprises of the oil and gas chemical complex of Tatarstan. The main shareholders are Svyazinvestneftekhim, Tatneft, Nizhnekamskneftekhim, Kazanorgsintez, Nizhnekamskshina, Tatnefteproduct.
MRC

MOSCOW (MRC) -- Nouryon (formely AkzoNobel Specialy Chemicals) and Atul have successfully started production at Anaven, a new joint venture in Gujarat, India, that will help meet the rapidly growing demand in India’s agricultural, personal care and pharmaceutical markets, according to Kemicalinfo.

Anaven is India’s largest MCA production site, with a current capacity of 32,000 tonnes of MCA per year. There is a possibility of rapid expansion of up to 60,000 tonnes per year in the near term.

MCA is used as an essential raw material for a variety of products, such as adhesives, pharmaceuticals, and crop protection chemicals. The chemical industry company, Atul Ltd consumes a portion of the MCA directly in its own production of crop protection chemicals.

Anaven plant is also the only zero-liquid discharge MCA production site in the world i.e. zero wastewater exits in the plant. This stands as a critical factor in India where water is scarce.

Rob Vancko, Vice President of Construction at Nouryon and Chairman of Anaven, said: “Through this partnership with Atul, we can leverage Nouryon’s global leadership in MCA in order to meet the fast-growing demand from customers across multiple markets in India, while also continuing to drive innovation and sustainability in the region.”

Nouryon has applied its expertise to build a plant that uses eco-friendly hydrogenation technology and employs the latest sustainability innovations for low energy consumption.

As MRC wrote before, in January 2021, Nouryon said it had decided to rename its industrial chemicals subsidiary Nobian as part of the company's global growth and branding strategies. The branding change will allow Nobian to develop its integrated European value chain for base chemicals under its own name and brand, the company says. It will also enable Nouryon to focus on growing its worldwide position in specialty chemicals, the company says.

We remind that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021, according to Rosstat's data. February production of sodium hydroxide (caustic soda) was 98,400 tonnes (100% of the basic substance) versus 113,000 tonnes a month earlier. Overall output of caustic soda totalled 211,400 tonnes in the first two months of 2021, down by 4.6% year on year.

Nouryon was officially formed in October 2018 after separating from AkzoNobel. The company manufactures everyday products, such as paper, plastics, building materials, food, pharmaceuticals, and personal care items. The company operates in over 80 countries around the world and its portfolio of industry-leading brands includes Eka, Dissolvine, Trigonox and Berol.
MRC

MOSCOW (MRC) -- Royal Dutch Shell's (RDSa.L) profits leapt to USD3.23 billion in the first three months of the year and the energy company raised its dividend as planned but warned that the outlook remained uncertain due to the coronavirus pandemic, said the company.

Shell's adjusted earnings were above an average analyst forecast of USD3.125 billion and also ahead of earnings of USD2.9 billion last year, boosted by assets sales as well as higher oil and liquefied natural gas (LNG) prices.

Sales of oil and gas assets in countries including Nigeria, Canada and Egypt added USD1.4 billion to first-quarter profits. Shell's London-listed shares were up 1.2% at 0736 GMT, outperforming a 1% gain for the broader European energy index (.SXEP).

"The quarter proves without doubt that Shell's earnings power is intact," Bernstein analyst Oswald Clint said in a note. Shell said its fuel sales fell 13% in the first quarter due to further lockdown measures and the impact of a Texas storm in February, saying there was still "significant uncertainty" over the outlook for demand in the second quarter.

The Anglo-Dutch company raised its dividend by 4% as planned, the second increase since its slashed its payout by two-thirds at the start of last year due to the coronavirus pandemic.

As per MRC, Royal Dutch Shell said it was conducting a feasibility study with partners to trial the use of hydrogen fuel cells for ships in Singapore, the first such move for the oil major. If successful, the trial will pave the way for cleaner, hydrogen-powered shipping, the company said, adding that its analysis points to hydrogen with fuel cells as the zero-emissions technology having the greatest potential to help the shipping sector achieve net-zero emissions by 2050.

As MRC informed earlier, Royal Dutch Shell Plc restarted the small crude distillation unit (CDU) on 2 April at its 318,000-bpd joint-venture Deer Park, Texas, refinery. The 70,000-bpd DU-1 CDU was shut on Feb 14 by a pump seal failure. All other units were shut the following day by severe cold weather. DU-1 is the last unit shut in February to restart at the refinery.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) - General Director of TAIF PJSC Ruslan Shigabutdinov has been elected Chairman of the Board of Directors of Kazanorgsintez PJSC, the company said.

His candidacy was unanimously approved at the annual general meeting of shareholders of the enterprise. The previous composition of the Executive Directorate of Kazanorgsintez PJSC remained unchanged. It includes General Director Farid Minigulov, Chief Engineer Rafael Safarov, Deputy General Director for Personnel and General Issues Aidar Akhmetshin, Deputy General Director for Production Rinat Zaripov, Chief Accountant Larisa Kaleeva, Deputy General Director for Economics and Finance Fanis Kalimullin, Deputy General Director for corporate management of property and investments Bulat Sabirov; Deputy General Director for Economic Security and Regime Rostislav Sarkisov; Deputy General Director for Commerce Timur Sulteev.

Chairman of the Board Ruslan Shigabutdinov on behalf of the Board of Directors and the entire staff of Kazanorgsintez PJSC expressed gratitude and gratitude to Zeljko Milich and Rinat Sabirov for their fruitful activities.

Earlier it was reported that SIBUR and TAIF on April 26 announced the start of the merger of the oil and gas chemical businesses of the companies. As part of the merger, a company will be created on the basis of SIBUR Holding PJSC, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises.

Earlier it was reported that Kazanorgsintez began a project to build a production of polyethylene-vinyl acetate (EVA) and high-pressure polyethylene (LDPE). The capacity of the new production will be 100 thousand tons of EVA / LDPE per year. The Japanese company Sumitomo Chemical will act as the licensor. The production complex will be located on a free site, inside the territory of Kazanorgsintez. To implement the project, it is planned to use the company's own funds and attract debt financing.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Kazanorgsintez PJSC is one of the largest polyethylene producers and the only polycarbonate producer in Russia (part of TAIF Group). The only Russian member of the international Association "PE100 +". All products manufactured by Kazanorgsintez PJSC are certified in the system of the State Standard of the Russian Federation. The enterprise is the largest exporter of polyethylene among Russian manufacturers. Kazanorgsintez PJSC supplies products to 31 countries of the world.
MRC