Pemex to invest USD2.6 billion at Tula refinery to reduce its dependence on imported fuel

MOSCOW (MRC) -- Mexico's Pemex will invest USD2.64 billion to complete a coking plant at its Tula refinery as the country seeks to reduce its dependence on imported fuels, reported S&P Global with reference to the state company's CEO's statement.

The project, which Pemex expects to finish by 2023, will allow Pemex to process 90% of the fuel oil produced at Tula and at neighboring Salamanca, Octavio Romero Oropeza said during the daily press conference held by Mexican President Manuel Andres Lopez Obrador.

Mexico currently has six refineries with a combined nominal capacity to process 1.6 million b/d, three of which have a coking plant. However, during the last decade they have been running at a fraction of their capacity, processing less than 600,000 b/d in 2020 on average, as two of the refineries were built over a century ago.

Under Lopez Obrador, Pemex has recently increased its gasoline output to close to 300,000 b/d, a figure not seen in the last four years, data from the Energy Secretariat shows. Lopez Obrador has promised the country will stop importing fuels when his term finishes in 2024. In April, Mexico imported little under 500,000 b/d of gasoline and almost 300,000 b/d of diesel, slightly below the average of the last five years, data from the secretariat, or SENER, shows.

"When the coking plant is ready, it will process 140,000 b/d of fuel oil to generate 42,000 b/d of gasoline; 78,000 b/d of diesel and 20,000 b/d of fuel oil," Romero Oropeza said.

Romero Oropeza mentioned that the investment is part of a broader scheme to restore the strength of the state oil company after it was neglected for years under past administrations.

The previous administrations managed to sell three important hydrogen plants inside the refineries of Tula, Madero and Cadereyta, although they are essential for the operation, Romero Oropeza said. The current administration managed to cancel the sale of Cadereyta, Romero Oropeza said, but Pemex continues to pay high sums for the lease of those facilities, he said.

"The Tula plant was sold for little over $50 million in 2017, but by the end of 2020, Pemex had paid the new owners over USD49 million in lease fees," Romero Oropeza said, adding that the contract extends for another 15 years.

To avoid those excessive costs, the government is now in negotiations to buy back the other two plants, he said.

As MRC informed before, earlier this month, a major fire broke out at an oil refinery run by Petroleos Mexicanos (Pemex) in the eastern city of Minatitlan in the southern state of Veracruz. The blaze started at this refinery, one of six operated by Pemex, which has a capacity of up to 285,000 barrels per day, on Wednesday afternoon, 7 April.

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.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

Progress of the construction project of the Amur Gas Chemical Complex exceeded 16%

MOSCOW (MRC) - The overall progress of the construction project of the Amur Gas Chemical Complex (GCC), a joint venture between SIBUR and Sinopec, is 16.37%, reports Neftegaz with reference to a message from SIBUR.

In April, SIBUR shared information on the progress of the construction of the Amur GCC in its Telegram channel on May 21.

Thus, it is noted that the loading of piles at the site is carried out at all technological facilities. The piles are being driven under the large-sized equipment at the pyrolysis unit (5237 piles out of 28,075 planned for completion have been loaded), work has begun on pouring the foundations.

During the construction of polymer plants, piling works are carried out at 10 sites. 2190 of the planned 27140 piles have been driven. Within the framework of the construction of the logistics complex, the progress in the arrangement of the foundations of the silo block is 53% (658 m3 out of 1241 m3). Work is being done ahead of schedule.

The engineering preparation of storage sites and the construction of temporary fencing at the construction of temporary buildings and structures are being completed. A customs control zone was created, and the first technological equipment for the pyrolysis furnaces of the complex was delivered.

In addition, construction sites are being prepared and an access road is being set up for the construction of artesian wells. Work on the preparation of storage sites is 99.8% complete. Also, work was completed on the installation of cable products (58.769 km) and electrical equipment (107 pcs.) At the construction of the substation PS-220. Commissioning works are in progress.

The Amur Gas Chemical Complex is a joint venture between SIBUR (60%) and China's Sinopec (40%) for the production of polyethylene (PE) and polypropylene (PP). The production capacity of the complex will be up to 2.7 million tons of ethylene per year. The main raw materials for processing - ethane and LPG - will be supplied by the Amur Gas Processing Plant (AGPP) of Gazprom, which is being built in the Svobodnensky District of the Amur Region. The overall progress of the AGPP construction by the beginning of March was 72.8%. This year it is planned to commission the first two technological lines of the Amur GPP (the first start-up complex). And the launch of all lines of the Amur Mining and Chemical Combine is planned not earlier than 2024.

As MRC reported, in December last year, SIBUR Holding chose Spheripol LyondellBasell polyolefin technology for its Amur GCC, which is currently under construction. The technological process will be used at the PP plant with a capacity of 400 thousand tons per year, which will be built in the town of Svobodny, Amur Region.

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.

SIBUR Holding is the leader in the Russian petrochemical industry and one of the largest global companies in the sector with more than 23 thousand employees. SIBUR processes the by-products of oil and gas production and thereby contributes to the reduction of CO2 emissions from their combustion. Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth about 1 trillion rubles.
MRC

SIBUR completes construction of a maleic anhydride plant in Tobolsk

MOSCOW (MRC) - SIBUR is at the final stage of construction of a maleic anhydride (MAN) plant in Tobolsk, the company said.

The capacity of the future enterprise, located on the territory of the country's largest petrochemical complex ZapSibNeftekhim and technologically connected with it, will amount to 45,000 tonnes per year.

It is noted that the installation of the main technological equipment and metal structures has been completed by 95%. Moreover, 75% of this equipment and 100% of building materials and metal structures are Russian-made.

"The construction of a MAN production plant in Tobolsk is on schedule," explains Vladimir Mishin, head of the project office "Creation of a new MAN production in Tobolsk." The peak of construction and installation work at the facility fell on the global coronavirus pandemic. To ensure the sanitary and epidemiological safety of SIBUR employees and contractors, a set of effective measures was implemented to prevent the spread of COVID-19.

It is planned to reach mechanical readiness and start commissioning already in 2021.

The launch of MAN production in Tobolsk is SIBUR's largest investment project for the development of medium-scale chemistry in Russia. When obtaining MAN, one of the safest and most environmentally friendly technologies in the world based on n-butane (the licensor is the Italian company Conser) will be used, which has been used by similar enterprises in other countries for many years. The creation of high-margin products using its own raw materials will allow SIBUR to increase the depth of hydrocarbon processing, completely replace the import of MAN into Russia from other countries and establish its export supplies to the markets of Europe and Asia. In addition, the launch of the production of maleic anhydride in Russia will stimulate more intensive development of the construction industry in the Russian Federation.

Earlier it was reported that the first pile at the construction site of the MAN plant was submerged in October 2019.

Plasticizers are substances introduced into a polymer material to make it elastic and plastic during processing and operation. In particular, plasticizers are used for the production of polyvinyl chloride (PVC). The share of plasticizers used for the production of PVC products is about 80%.

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

PJSC "SIBUR Holding" is the largest petrochemical company in Russia and Eastern Europe with full coverage of the industry cycle from gas processing, production of monomers, plastics and synthetic rubbers to plastics processing.
MRC

Petrobras plans to improve its refineries

MOSCOW (MRC) -- Brazil’s Petrobras said in a securities filing that it will invest USD300 million through 2025 to improve the efficiency of its refineries, an initiative the company is calling RefTOP, said Reuters.

Petrobras said the investment was accounted for in its 2021. Petrobras said the investment was accounted for in its 2021-2025 strategic plan, which has already been presented to shareholders.

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 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

Hindustan Petroleum shut crude unit at Vizag refinery due fire

MOSCOW (MRC) -- State run Hindustan Petroleum has shut a 70,000 barrel per day (bpd) crude unit at its Vizag refinery in Southern India after a fire broke out on Tuesday, the company said in a statement, said Reuters.

The 166,000 bpd Vizag refinery has three crude units. “The fire has been extinguished. Cooling operations are in progress. There are no casualties and there is no risk to the public,” the company said, adding other refinery operations are continuing as normal.

As MRC informed earlier, Hindustan Petroleum Corp.'s Mumbai refinery will start full scale operation at a higher capacity of 190,000 barrels per day (bpd) by end-June or in July. HPCL had fully shut the 150,000 bpd Mumbai refinery in western Maharashtra from April 1 for maintenance and capacity expansion, Surana said at a press conference to announce March quarter earnings.

As MRC informed previously, India's HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021. The company has an existing 440,000 mt/year PP unit at the same site.

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