Russia sells Antipinsky oil refinery as part of bankruptcy proceedings

MOSCOW (MRC) -- Russia's largest standalone oil processing plant, the Antipinsky oil refinery, was sold for almost 111 billion roubles (USD1.50 billion) as part of bankruptcy proceedings, an online sale platform showed, reported Reuters.

The online platform showed that a company called Rusinvest completed the purchase of the plant located in West Siberia. Most of Russia's oil refineries are controlled by big oil companies, such as Rosneft and Lukoil.

The refinery, which has a capacity of 7.5 million tons per year, filed for bankruptcy in 2019 after having halted operations on several occasions because of a lack of funds to pay for crude oil deliveries.

Russia's largest bank, Sberbank, had been the refinery's main creditor.

As MRC wrote before, in June 2019, SOCAR Energoresurs, a joint venture between Russia’s largest lender Sberbank and a group of investors, has acquired an 80% stake in Russia’s Antipinsky oil refinery.

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.

JSC Antipinsky Refinery was founded in July 2004 on the territory of one of the major oil and gas producing constituents of the Russian Federation - Tyumen Region, where most of Russian oil (64%) and natural gas (91%) reserves are concentrated.
MRC

1. DuPont invests in automotive adhesives expansion in Germany and Switzerland

MOSCOW (MRC) -- DuPont is to invest around USD 5 m at facilities in Germany and Switzerland to increase capacity for automotive adhesives, said Chemengonline. The investment will expand capacity to support growing demand for advanced mobility solutions for vehicle electrification. New equipment has been delivered and installed that will increase manufacturing capacity as well as accelerate delivery of product samples to customers. "As we see continued recovery of the global automotive market, we’re closely collaborating with our customers in Europe to deliver innovative advanced mobility solutions to meet their business needs,” said Tina Wu, Vice-President and General Manager, Advanced Solutions, DuPont Mobility & Materials. "This investment reinforces our commitment to increase capacity and accelerate growth in hybrid and fully-electric vehicles."


MRC

MOSCOW (MRC) -- Crude oil futures were slightly higher, but rangebound, during mid-morning trade in Asia May 18, as optimism over increased oil demand from the US and Europe kept the market afloat, reported S&P Global.

At 11:24 am Singapore time (0324 GMT), the ICE Brent July contract was up 17 cents/b (0.24%) from the May 17 settle at USD69.63/b, while the June NYMEX light sweet crude contract was up 10 cents/b (0.15%) at USD66.37/b.

The market brushed aside news of Asia's worsening COVID-19 situation and turned its attention towards the recovery in the US, where a rebound in economic activity has propped up downstream oil product demand.

Apple mobility data showed that US driving activity was up by around 1% in the week to May 14, reaching a nine-month high that is 142.04% of the January 2020 baseline.

Furthermore, the US Transportation Security Administration said the number of people passing through US airports on May 16 was 1.85 million, the highest since March 2020. This is just 30% lower than the equivalent seen on the same day in May 2019, indicating that US domestic air travel demand is recovering.

The market is also optimistic of Europe's prospective oil demand as major economies are gradually easing their mobility restrictions. The UK took a major step out of its lockdown on May 17, allowing social gatherings in limited numbers, activities such as indoor dining and replacing the ban on international travel with a more lenient set of rules.

Meanwhile, Italy, on May 17, announced it is pushing back its nightly coronavirus curfew by an hour to 11 pm from May 18 and is easing other mobility restrictions in areas where infections are low. France is also set to push back its nightly curfew by two hours to 9 pm from May 19, while lifting some restrictions on leisure venues and outdoor dining.

Over in Asia, concerns over renewed mobility restrictions in India, Japan and Southeast Asia were mollified by hopes that oil demand from the region's economic powerhouse China will remain strong.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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) -- Saudi Ethylene and Polyethylene Company (SEPC), a subsidiary of Tasnee, is planning to start a routine maintenance at its polyethylene (PE) in Jubail on 23 May, 2021, according to CommoPlast with reference to market sources.

A 400,000 tons/year of high density polyethylene (HDPE) and a 400,000 tons/year of low density polyethylene (LDPE) plant will be shut for a turnaround for about 27 days.

The company also operates a cracker that produces 1 million tons/year of ethylene and 285,000 tons/year of propylene at the same site, which will be also taken-off line for maintenance during the stated above period.

As MRC informed before, Saudi Arabia's National Industrialization Company, or Tasnee, had announced a curtailment of feedstock to petrochemical affiliates in varying proportions by an average of 41% due to the attacks on key Saudi Aramco facilities on Saturday, 14 September 2019. Tasnee owns a majority stake in Saudi Polyolefins Company and Saudi Ethylene and Polyethylene Company.

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.

SEPC is a joint venture between Tasnee, Sahara Petrochemical Company, and LyondellBasell.
MRC

MOSCOW (MRC) -- Overall polyethylene (PE) imports into the Ukrainian market reached 83,500 tonnes in the first four months of 2021, down by 8% year on year. High density polyethylene (HDPE) accounted for the main decrease in imports, according to MRC's DataScope report.

Last month's PE imports to Ukraine were 19,500 tonnes, compared to 28,700 tonnes in March, local companies reduced their purchases of all PE grades, except for ethylene copolymers, because of record high prices in foreign markets. Thus, overall PE imports reached 83,500 tonnes in January-April 2021, compared to 90,900 tonnes a year earlier. These were mainly HDPE imports that decreased, whereas imports of other PE grades increased.

The structure of PE imports by grades looked the following way over the stated period.

Last month's HDPE imports were 6,600 tonnes, compared to 9,000 tonnes in March, Ukrainian companies reduced their purchases of PE for extrusion blow moulding (EBM) and films extrusion. Overall HDPE imports totalled 26,500 tonnes in the first four months of 2021 versus 38,600 tonnes a year earlier.

April imports of low-density polyethylene (LDPE) were 5,800 tonnes versus 8,800 tonnes a month earlier, Ukrainian companies reduced their purchases in Russia. Overall LDPE imports reached 26,100 tonnes over the stated period, up by 3% year on year.

Last month's imports of linear low density polyethylene (LLDPE) were 5,700 tonnes, compared to 9,500 tonnes in March, shipments of film grade LLDPE from Saudi Arabia decreased because of high prices. However, overall LLDPE imports reached 25,800 tonnes in the first four months of 2021, compared to 22,800 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 5,100 tonnes over the stated period, compared to 4,000 tonnes a year earlier.

MRC