Citgo recieves second Jones Act waiver after Colonial Pipeline shutdown

MOSCOW (MRC) -- US refiner Citgo was granted the second Jones Act waiver by the US government after a cyberattack shut the Colonial Pipeline, the biggest US fuel pipeline, late in the first week of May, reported Reuters with reference to two sources familiar with the matter.

At the same time, Valero received the first Jones Act waiver, Reuters reported yesterday.

Earlier Friday the US Department of Homeland Security said it approved a second Jones Act waiver request to a company to ease fuel supply constraints between Gulf Coast and East Coast ports, but did not name the company.

Citgo did not immediately respond to a request for comment.

As MRC wrote previously, Valero Energy chartered an oil products' tanker for storage in the US Gulf Coast on 7 May amid a cyber attack that shut the Colonial pipeline. The tanker, called the Nave Titan, was then in the Mississippi River in southern Louisiana, according to Refinitiv Eikon shipping data. Nave Titan can hold up to 330,000 barrels of oil, according to the tanker data.

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) -- The troubled Limetree Bay oil refinery in St. Croix, United States Virgin Islands, has suspended operations after a malfunction sent oil raining onto a nearby neighborhood, reported Reuters with reference to the company's statement.

The Caribbean refinery has suffered repeated setbacks since its private-equity owners began overhauling the long-idled facility two years ago with a plan to process up to 210,000 barrels of oil per day.

Limetree Bay said it suffered an "upset in the refinery", and urged residents living near the plant not to drink water from collected supplies. Residents living in the island generally collect rainwater in cisterns for consumption.

Residents were alerted of a fire at the plant by the V.I. Territorial Emergency Management Agency on Wednesday.

The company said it plans to distribute water to those affected by the oil release, and added that the plant's processing units will be brought to a "safe, stable condition". Flaring, or emergency burning of feedstocks, caused oil to release onto neighborhood areas. A malfunctioning coker unit caused the flaring, according to two people familiar with the matter. Cokers convert heavy oil for feedstocks to make motor fuels.

As MRC informed earlier, in early May, the EPA said if it determines that Limetree's operations present an "imminent risk" to residents health, it would take appropriate action to safeguard the public. EPA sent air monitors to the island in the first week of May to measure sulfur dioxide and hydrogen sulfide emissions, though they are not functional as yet.

Meanwhile, Limetree Bay said air quality testing near its US Virgin Islands refinery found zero concentrations of sulfur dioxide, hours after the National Guard said it found elevated levels of the chemical during its own testing.

We remind that in late March 2021, EPA said it had revoked an expansion permit for the Limetree Bay oil refinery in the US Virgin Islands, citing concerns that the area around the facility is overburdened with pollution. The decision allowed the plant to keep operating but blocked ongoing expansion work pending an EPA review to assess measures the facility needs to take to protect nearby residents.

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.

MOSCOW (MRC) -- Mitsui Chemicals’ net profit for the fiscal year ending March 2021 posted 70.3% growth despite lower sales, as profitability of its basic materials business benefited from better overseas markets, said the company.

Lower group sales were attributed to declines in product prices, dragged down by falls in values of naphtha and other raw materials and fuel amid the coronavirus pandemic. Its basic materials segment reported a 12.6% year-on-year decline in sales to Y541.4bn, but operating income before special items more than doubled to Y19.6bn from Y9.4bn in the previous fiscal year “due to improved overseas market".

Mitsui Chemicals said that operating rates at its naphtha crackers were lower than the previous fiscal year due to decreased demand for downstream products, caused by the impact of the coronavirus. “Performance of polypropylene was affected by slowing demand for automotive products. For bisphenol A (BPA) and acetone, the overseas market was at a higher level than the previous fiscal year,” the Japanese producer said.

For the current fiscal year ending March 2022, Mitsui Chemicals is projecting higher earnings, in line with the global economic recovery from a pandemic-induced slump in 2020. Basic materials should be able to generate sales of Y635bn and yield an operating profit before special items of Y36bn, based on the company’s forecasts.

“In the chemical industry, although demand is expected to expand due to signs of economic recovery, chemical companies should remain vigilant regarding fluctuations of raw materials and other chemical product markets,” it said.

As per MRC, Kumho Mitsui Chemicals Inc. said it will invest about 400 billion won (USD358.1 million) to expand its chemical manufacturing factory in South Korea's southwestern region. The joint venture between Korean synthetic rubber maker Kumho Petrochemical and Mitsui Chemicals of Japan said its shareholders approved the investment plan to scale up a methylene diphenyl diisocyanate (MDI) factory in Yeosu, 455 kilometers southwest of Seoul.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to MRC ScanPlast report, Russia's overall estimated consumption of PC granules grew in the Russian market by 27% year on year in January-February 2021 (excluding imports and exports to/from Belarus) to 16,000 tonnes, compared to 12,600 tonnes a year earlier.
MRC

MOSCOW (MRC) -- A fire in four oil pipelines that feed Aqaba refinery has been put out, reported Reuters with reference to Jordan's state news agency.

Jordan security added the fire was extinguishe before it reached crude oil storages, and it won’t affect gas supplies to any part of Jordan.

There were no injuries.

We remind that, as MRC informed earlier, on 7 April, 2021, 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. According to media reports and Mexico's safety, 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.

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) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business, said the company.

PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

This acquisition serves as a catalyst for helping Trinseo transform into a higher margin, less cyclical solutions provider. The transformative nature of the transaction will accelerate investments in growth opportunities for Trinseo’s Engineered Materials business globally; the transaction is also expected to generate approximately USD50 million of annual synergies. Additionally, the PMMA business is a strategic fit in that, in combination with Trinseo’s existing portfolio, it enhances Trinseo’s ability to provide solutions to customers in profitable markets. With future investments, there will be the opportunity to leverage Trinseo’s global presence to provide solutions to its existing customers in Asia Pacific where Trinseo has a significant presence.

"Today is a special day. I am thrilled to welcome our new colleagues and customers to the Trinseo family, as we embark on this transformation journey together,” said Frank Bozich, Trinseo President and Chief Executive Officer. “This journey will bring us closer to our customers; create a more sustainable, environmentally-friendly footprint; and shorten the cycles of innovation that accelerate the process of bringing new, industry-leading solutions to market."

As per MRC, Trinseo reported a first-quarter net income, up from a loss reported during the same time in 2020 because sales rose faster than costs. The following shows the company's Q1 performance. Figures are in millions of dollars. Trinseo attributed the rise in revenue to higher volumes in all of its segments except for Feedstocks. Prices also rose, mostly because of Trinseo passing through higher costs for raw materials.

It was reported before, Trinseo will build a full commercial scale polystyrene (PS) recycling plant in Tessenderlo, Belgium that is expected to be operation in 2023. The company will use depolymerisation which breaks down polymers into their precursors to chemically recycle the material. The recycled PS will have identical properties with virgin PS.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
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