India eyes regular oil supplies from Saudi Aramco in June

MOSCOW (MRC) -- Indian state refiners have placed orders for regular supplies from Saudi Aramco for June, after reducing purchases this month, drawn by lower prices by the world’s top oil exporter, reporte Reuters with reference to four sources' statement.

The refiners - Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd - normally buy 14.8 million-15 million barrels of Saudi oil a month.

“This time there is no direction from the ministry to cut imports in June and unlike last time they (Aramco) have reduced the prices as well,” said one of the sources.

Saudi Arabia has cut the June official selling prices (OSPs) of all crude grades it sells to Asia. It set the June OSP for the flagship Arab light crude at USD1.7 a barrel above the Oman/Dubai average for Asia, down 10 cents from May and its first price cut since December last year, sources told Reuters.

India, the world’s third-biggest oil importer and consumer, imports more than 80% of its oil needs and relies heavily on the Middle East.

As MRC wrote previously, in April 2021, Mammoet completed the lifting of three columns for the Guru Gobind Singh Polymer Expansion Project in Bathinda, Punjab, India. Thus, the team lifted a 1,305t ethylene fractionator, and 2 propylene fractionators weighing 1,200t and 2,490t - the second of which was lifted in two sections.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- BP said it will remain a member of the American Petroleum Institute (API) after the largest U.S. oil and gas trade lobby group addressed some differences with the British energy company over climate change, said Reuters.

BP, which plans to sharply cut its oil output and boost its renewable energy capacity over the next decade, said in a report that despite "uneven progress", the API was "heading in the right direction". The API has faced growing pressure from member companies and activist groups to change its policies relating to climate change and drilling regulations.

The trade group started to shift some of its positions as the climate-focused Biden administration came to power this year. In March it said it supports a carbon price as one measure to mitigate climate change risk. BP said it was "encouraged" by the API's support for federal regulation on limiting emissions of methane, a potent greenhouse gas and its support for carbon pricing as well as improving its transparency.

"API's progress has been uneven at times but, on the whole, the organization has moved considerably over the past year and is heading in the right direction," BP said in the report. "We will continue to make our case – as members – to influence API on climate and many other areas relevant to our business in the US."

London-based BP, led by CEO Bernard Looney, last year quit the main U.S. refining lobby and two other trade groups but stuck with the API despite saying it was only "partially aligned" with its policies. BP will publish a comprehensive review of its membership of the API and other associations next year.

France's Total in January became the first major global energy company to quit the API due to disagreements over its climate policies and support for easing drilling rules, saying it would not renew its 2021 membership. Total's stance put pressure on other European oil majors that have set out strategies to sharply reduce carbon emissions.

Royal Dutch Shell also chose to extend its API membership despite "some misalignment" with its climate stance. BP's interim report also reviewed its participation in four other associations which were partly aligned with its policies including the Australian Institute of Petroleum and the Canadian Association of Petroleum Producers. BP said it was encouraged by progress made by all four groups over their climate stances.

As per MRC, Rosneft, the largest state oil company in the Russian Federation, was the first Russian oil company to decide to develop its hydrogen business. British BP will act as a partner. Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

BP plc (until May 2001 - British Petroleum) is a British oil and gas company, the second largest publicly traded oil and gas company in the world.
MRC

MOSCOW (MRC) - Borealis will use a new system to convert waste heat into process energy at its LDPE plant in its Antwerp, Belgium complex, the first commercial application of the technology, the manufacturer said.

This Qpinch technology uses a chemical process to raise the temperature of the waste heat, which allows it to be used for production with lower operating costs and power consumption than conventional heat pumps.

Qpinch won the ICIS Innovation Awards at the end of 2020 because its technology allows manufacturers to more efficiently use waste heat to control production by creating a closed loop system.

The technology scales from 1 to 50 megawatts. The Borealis demonstration plant intends to test the process capabilities with a view to expanding its use in the company's production facilities.

Earlier it was reported that Borealis in March last year resumed production of high-density polyethylene (LDPE) in Stenungsund (Stenungsund, Sweden) after planned repairs. This production with a capacity of 350 thousand tons of LDPE per year was closed for repairs in December 2019.

According to MRC's ScanPlast, in March the estimated consumption of LDPE in Russia increased to 62,100 tonnes against 36,580 tonnes a year earlier. Russian manufacturers have reduced their export supplies of LDPE due to more attractive prices on the domestic market. In the first three months of this year, the estimated consumption of LDPE in the country amounted to about 149,910 tonnes, which is 10% more than a year earlier.

Borealis, headquartered in Vienna, is a leading manufacturer of polyolefins, basic chemicals and fertilizers. Borealis is the majority shareholder in Saudi state-owned International Petroleum Investment (IPIC), which also owns North American ethylene and polyethylene producer NOVA Chemicals and Middle Eastern petrochemical company Borouge.
MRC

1. Saudi Aramco beats quarterly profit forecast with 30% rise in Q1 2021 earnings

MOSCOW (MRC) -- State-run oil producer Saudi Aramco beat analysts' forecasts with a 30% rise in first-quarter net profit, helped by strong oil prices, reported Reuters. Earnings by global energy companies such as Exxon Mobil have climbed on the back of rising crude prices, which are up by about a third this year, as fuel demand recovers from the pandemic and as a global surplus of crude shrinks. "Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming," Amin Nasser, chief executive of the world's top oil exporter, said in a statement. "And while some headwinds still remain, we are well-positioned to meet the world's growing energy needs as economies start to recover," he said.


MRC

MOSCOW (MRC) -- Lotte Chemical Titan Holding Bhd (LCT) has reported its highest-ever quarterly profit after tax at RM441.28 million in the first quarter ended March 31, 2021 (1QFY21), versus a loss after tax of RM169.5 million a year earlier as the petrochemical products manufacturer’s revenue rose due to the increase in average product selling price and sales volume in tandem with the Covid-19 vaccine-driven global economic recovery, reported The Start with reference to a filing with Bursa Malaysia.

In filings with Bursa Malaysia today, Lotte Chemical Titan said 1QFY21 profit rose on higher average product selling price and lower feedstock costs and as plant utilisation rate increased.

Lotte Chemical Titan said 1QFY21 net profit rose to RM440 million from a net loss of RM170.06 million a year ago as revenue climbed to RM2.37 billion from RM1.46 billion.

"The group's profit before tax has improved by 376% from a loss before tax of RM205.8 million to profit before tax of RM567.1 million. This is mainly due to the improved margin spread resulting from higher average product selling price and lower feedstock costs. The gross profit margin has improved from (14%) to 23%,” the company said.

Lotte Chemical Titan's profit and revenue also rose in quarterly terms during 1QFY21. The firm said 1QFY21 revenue increased to RM2.37 billion from RM1.92 billion in 4QFY20.

Plant utilisation rate was higher at 88% in 1QFY21 compared with 85% in 4QFY20, according to the company.

As MRC informed earlier, Lotte Chemical Titan shut its No. 2 cracker in Malayisia in mid-January because of a technical glitch. This cracker is located in Pasir Gudang, Malaysia, and produces 522,000 tons/year of ethylene and 360,000 tons/year of propylene.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesia’s first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.’s largest overseas subsidiaries.
MRC