Two crude oil traders to leavet ExxonMobil team in Singapore next month

MOSCOW (MRC) -- Two senior crude oil traders will be leaving ExxonMobil Corp's trading team in Singapore next month, reported Reuters with reference to sources familiar with the matter.

Ruddin Dhilawala will join Norwegian energy major Equinor, while Edward Ang will go to Hengyi Petrochemical, which runs a refinery in Brunei, the sources said.

Exxon Mobil said it does not comment on personnel matters. Equinor and Hengyi did not respond to requests for comment.

Dhilawala and Ang declined to comment.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have just 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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

Sinopec ZRCC to take off-stream its PP plant in China for turnaround

MOSCOW (MRC) -- Zhenhai Refining & Chemical Co (ZRCC), part of Sinopec Group, is in plans to shut down its polypropylene (PP) plant for a scheduled maintenance in H2 May, 2021, according to CommoPlast.

The turnaround at this plant is scheduled to last until the first half of June, 2021.

Located in Ningbo, Zhejiang province, China, the plant has a production capacity of 350,000 mt/year.

Sinopec ZRCC also operates linear low density polyethylene (LLDPE) plant with a production capacity of 500,000 mt/year at the same site. The company also intends to conduct a turnaround at this plant during the stated above period.

As MRC informed earlier, Zhongke Refinery and Petrochemical Complex, also part of Sinopec Group, successfully conducted trial runs at its new 350,000 tons/year polypropylene (PP) unit on 9 June, 2020. Based in Zhenjiang, China, the complex consists of two PP lines with combined production capacity of 550,000 tons/year, a 100,000 tons/year low density polyethylene (LDPE) plant and a 350,000 tons/year high density polyethylene (HDPE)/LLDPE plant. All lines were expected to startup within July-August 2020 period.

According to MRC's ScanPlast report, 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

COVID-19 - News digest as of 19.05.2021

1. Japanese refiners to sell assets and speed structural reform as on expectations of weaker demand due to COVID-19 impact

MOSCOW (MRC) -- Japanese refiners plan to sell assets and speed structural reform and overseas expansion as fuel demand is expected to fall at a faster pace due to a prolonged impact from the COVID-19 pandemic and an accelerating global decarbonization trend, reported Reuters. The dual headwinds of the pandemic and stronger pressure to cut carbon dioxide have forced Japan's top refiner Eneos Holdings and second-ranked Idemitsu Kosan to downgrade their profit goals for the three years to March 2023. "There has been a significant environmental change since 2019, with the unprecedented coronavirus crisis, green recovery and Japan's declaration of becoming carbon neutral," Idemitsu President Shunichi Kito told a news conference last week after the company released its earnings.



MRC

Crude oil futures continue their downward trend as US-Iran talks, COVID-19 pandemic, rising US crude stocks weigh on market

MOSCOW (MRC) -- Crude oil futures remained on a downward trajectory during mid-morning trade in Asia May 19, as the prospects of the Joint Comprehensive Plan of Action nuclear deal weighed on the market, while the American Petroleum Institute's report of an unexpected crude inventory build and concerns over the progress of the pandemic in Asia also souring sentiment, reported S&P Global.

At 10:52 am Singapore time (0252 GMT), the ICE Brent July contract was down 78 cents/b (1.14%) from the May 18 settle at USD67.93/b, while the June NYMEX light sweet crude contract was down 49 cents/b (0.75%) at USD65/b.

Overnight prices had taken a significant hit after media reports said that Russia's ambassador to the International Atomic Energy Agency, Mikhail Ulyanov, stated that the two sides had made "significant progress" towards a deal and that an "important announcement" will be made on May 19. Prices then clawed back some of the losses overnight after Ulyanov clarified that, while significant progress has been made, the negotiators needed more time and effort to address some remaining unresolved issues.

This morning's oil price trajectory, however, followed the broader downward movement seen overnight as the market remained cautious. The restoration of the JCPOA could lead to Iran returning to pre-sanctions oil production of about 3.9 million b/d next year, according to analysts.

Iran, anticipating a deal, has already been ramping up oil production, with total output reaching 2.43 million b/d in April, up 130,000 b/d from March, and the highest since May 2019. Much of the oil produced by Iran has gone to China.

The threat of increased supply from Iran comes amid uncertainties over oil demand, as the pandemic continues to devastate Asia. While COVID-19 infections in India are seen to be gradually declining after hitting a peak on May 6, Singapore, Thailand and Malaysia in Southeast Asia as well as Japan and Taiwan in North Asia continue to grapple with elevated infection numbers. These countries have renewed, or re-imposed, mobility restrictions in order to curb the spread of the virus.

In inventory news, the API data showed US crude inventories rising unexpectedly by 620,000 barrels in the week ended May 14. US gasoline and distillate inventories fell 2.837 million barrels and 2.581 million barrels, respectively, in the same period.

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

Sinopec ZRCC to shut LLDPE plant in China for scheduled maintenance

MOSCOW (MRC) -- Zhenhai Refining & Chemical Co (ZRCC), part of Sinopec Group, is in plans to shut its linear low density polyethylene (LLDPE) plant for a scheduled maintenance in H2 May, 2021, according to CommoPlast.

The turnaround at this plant is scheduled to last until the first half of June, 2021.

Located in Ningbo, Zhejiang province, China, the plant has a production capacity of 500,000 mt/year.

As MRC informed earlier, Zhongke Refinery and Petrochemical Complex, also part of Sinopec Group, successfully conducted trial runs at its new 350,000 tons/year polypropylene (PP) unit on 9 June, 2020. Based in Zhenjiang, China, the complex consists of two PP lines with combined production capacity of 550,000 tons/year, a 100,000 tons/year low density polyethylene (LDPE) plant and a 350,000 tons/year high density polyethylene (HDPE)/LLDPE plant. All lines were expected to startup within July-August 2020 period.

According to MRC's ScanPlast report, March LLDPE shipments into Russia increased to 35,200 tonnes from 6,520 tonnes a year earlier. ZapSibNeftekhim significantly reduced its export sales and also raised its own production. LLDPE shipments were 74,850 tonnes in the first quarter of 2021, down by 22% year on year.

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