US pipeline shutdown after cyberattack spurs refiners to book storage tankers

MOSCOW (MRC) -- Refiners booked at least five tankers to store gasoline stranded at US Gulf Coast plants following a cyberattack that crippled the biggest fuel pipeline in the country, reported Reuters with reference to sources and shipping data.

The attack on the Colonial pipeline network, which supplies half of the fuel consumed along the East Coast, has forced Gulf Coast refineries to scale back operations due to lack of storage space. North Carolina suspended restrictions on fuel shipments to combat gasoline shortages.

The tankers, booked by Marathon Petroleum, Valero Energy, Phillips 66 and PBF Energy, can hold around 350,000 tonnes of fuel. Two of them were booked for up to a month, and three were provisional bookings that could be cancelled, according to data and shipbroking sources.

As MRC informed earlier, Colonial on Friday shut its 5,500-mile (8,850-km) pipeline network, which moves fuels including gasoline, diesel and jet fuel, to protect its systems. It has restarted some smaller lines.

In the wake of the outage, traders also booked several tankers to ship gasoline and diesel from Europe to the US East Coast.

French oil major Total SE and commodities trading houses Vitol and Trafigura each booked 90,000-tonne tankers to ship diesel on the transatlantic route, shipping data showed, a relatively rare route as Europe consumes more diesel than it produces.

Several Gulf Coast refiners that rely on Colonial for shipments have cut output. Total and Motiva Enterprises cut gasoline production at their Port Arthur, Texas refineries and Citgo Petroleum pared back at its Lake Charles, Louisiana, plant, sources told Reuters.

We remind that Marathon Petroleum, the largest US refiner, can meet its supply commitments for now but is working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline shutdown is extended.

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) -- Sadara Basic Service’s first-quarter profit jumped year on year on the back of firmer pricing and debt re-profiling, the Saudi-based joint venture producer said.

Sadara Chemical Company (Sadara) announced its first quarter financial performance for 2021, stating that the company’s revenues reached more than SR4.4 billion — 30.5% higher compared to the previous quarter in 2020 and an increase of more than 80% compared to the same quarter last year.

For the first time in its history, Sadara’s net profits after Zakat & Tax in this first quarter exceeded SR1.6 billion compared to net losses of more than SR1.27 billion and SR24 million in the same quarter of 2020 and last quarter, respectively.

These positive results reflect the company’s ongoing commitment toward shareholders and manufacturing high-quality products for customers in the Kingdom and beyond. The improvement in net profit in the first quarter compared to the previous period is mainly attributable to higher selling prices, continuous financial discipline, and the recognition of a modification gain of SR1.05 billion from debt reprofiling.

These results showcase Sadara’s better financial positioning after achieving its Project Completion Date (PCD) late last year, followed by lenders’ approval of its debt reprofiling in March 2021.

Despite the local and global challenges posed by the COVID-19 pandemic, the company has maintained a high level of performance and taken a series of proactive and preventive measures to ensure the health and safety of its employees, as well as ensuring that the business operations remain largely unaffected.

Sadara took many positive steps over the last period toward progressing its financial strength and operations. In addition, the company has been maintaining its focus on continuously excelling in key pillars, including safety, employee engagement, operations, customer service, sustainability, community service and financial performance.

As per MRC, Dow noted in late April that Sadara, along with other polyethylene joint venture complexes in Kuwait and Thailand, drove a strong increase in equity earnings during the first quarter.

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) -- China's Sinopec Corp, the top Asian oil refiner, is offering its refineries incentives to boost their output of very low sulfur fuel oil (VLSFO) three sources with knowledge of the matter said, to grab a bigger share of the fast-growing marine fuel market, reported Reuters.

The company is crediting its refineries 150 yuan (USD23.35) for every ton of VLSFO they produce, they said.

The scheme, which started earlier this year, is aimed at motivating its plants to produce more VLSFO as a domestic diesel supply overhang idled some of the state oil firm's refining capacities, the sources said.

Sinopec declined to comment.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently 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 the main feedstocks for the production of PE and 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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- Linde India Ltd., an Indian subsidiary of industrial gas manufacturer Linde Plc, has announced its results for the second quarter ended March 31, 2021, according to Kemicalinfo.

CY 2021 Q1 Results- QoQ: the company’s net profit grew 434% to Rs 303.23 crores (USD41.3 million) for the period ended March 31, 2021 as against net profit of Rs 56.8 crores (USD7.7 million) for the previous quarter.

Net sales dropped 7% to Rs 445.57 crores (USD60.7 million) during the period ended March 31, 2021 as compared to Rs 477.94 crores (USD65.1 million) during the previous quarter.

CY 2021 Q1 Results- YoY: the company’s net profit increased 677% to Rs 303.23 crores (USD41.3 million) for the period ended March 31, 2021 as against net profit of Rs 39.03 crores (USD5.3 million) for the the prior-year quarter.

Net sales grew 13.2% to Rs 445.57 crores (USD60.7 million) during the period ended March 31, 2021 as compared to Rs 393.79 crores (USD53.6 million) during the the prior-year quarter.

As MRC wrote before, in January, 2021, Linde said it will build, own, and operate the world’s largest proton exchange membrane (PEM) electrolyzer plant for the production of green hydrogen at the Leuna chemical complex in Germany.

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) - Russia's supply of polypropylene (PP) improved in the Russian market in the first half of April, and this factor halted the dynamic price growth that began in January. The increased supply will lead to price cuts in the second half of April. Also, the situation in foreign markets began to put pressure on PP prices in Russia, according to the ICIS-MRC Price Report.

Russian converters faced a limited supply of polypropylene from local producers in the first three months of the year.
The dynamic growth of polypropylene prices in Europe and Turkey also had an additional impact on the market.
As a result, PP prices had dynamically increased during this period and by the beginning of April it reached record levels.

But already in April, the supply of polypropylene on the Russian market increased, including from the largest seller.
Prices began to decline in Turkey, and there were also offers for the supply of polypropylene from Asia. And all these factors led to the beginning of the decline in PP prices in Russia.

Some Russian converters could not fully replenish their inventories of polypropylene in the first three months of the year due to lack of supply in the market. And the dynamic rise in prices further limited the ability to replenish stocks due to the limited working capital.

It is also worth noting that the situation with PP in Europe and Turkey had an additional affect prices in Russia; export prices of Russian polypropylene for shipments to these regions exceeded domestic prices in Russia. By the beginning of April, the situation with the availability of polypropylene in the Russian market had changed, the supply increased from the largest seller, while some converters limited their purchases.

Restrictions on purchases was a result of problems with working capital and hopes for an early decline in prices.
At the same time, the situation with prices in Turkey began to change, and Russian companies also began to receive offers for PP supplies from Asia, including China.

The growing supply of polypropylene in the market, low demand and cheap offers for imports, albeit with a rather long delivery time, began to put downward pressure on polypropylene prices in Russia. So, if at the beginning of April the prices of homopolymer PP significantly exceeded the level of Rb180,000/tonne CPT Moscow, including VAT at a number of sellers.

At the end of the month, some sellers cut their prices below the level of Rb170,000/tonne CPT Moscow, including VAT. At the same time, it should be noted that in the propylene copolymer market, the lack of supply of polypropylene remained during all April. And only for the May shipments, some sellers announced a slight price cut.
And some of the sellers practically rolled over April prices of propylene copolymers for May.
MRC