Indian Oil reduces crude processing to 84% as COVID-19 pandemic hits fuel demand

MOSCOW (MRC) -- Indian Oil Corp, India's top refiner, has cut crude processing to average at 84% of overall capacity from 96% in April as a devastating second wave of COVID-19 dented fuel demand, reported Reuters with reference to the company's chairman statement.

Domestic sales of gasoil and gasoline by Indian state refiners plunged by a fifth in the first half of May from a month earlier, preliminary data showed on Monday, as lockdowns to curb COVID-19 cases hit industrial activities and consumption.

"Demand destruction is there, which has also reflected in refinery runs... When it (fuel demand) will return to normalcy is a very difficult question to answer," Chairman SM Vaidya said, pinning recovery hopes on the country's vaccination drive against the pandemic.

The company, along with subsidiary Chennai Petroleum, controls about a third of India's 5 million-barrels-per-day (bpd) refining capacity.

In May last year, the state-owned refiner was operating its plants at an average 67%, Vaidya said.

Still, a surge in crude prices boosted inventory gains and gross refined margins (GRMs) at IOC, helping it report a net profit of 87.81 billion Indian rupees (USD1.20 billion) for the quarter ended March 31, against a loss of 51.85 billion rupees a year ago. Analysts were expecting a profit of 55.06 billion rupees, according to Refinitiv IBES data.

As MRC informed before, Technip Energies has been recently awarded a significant Engineering, Procurement, Construction and Commissioning (EPCC) contract by Indian Oil Corporation Limited (IOCL) for its BR9 Expansion Project in Barauni, Bihar, in the Eastern part of India. This EPCC contract covers the installation of a new Once-through Hydrocracker Unit (OHCU) of 1 million metric tonnes per annum (MMTPA) capacity, a Fuel Gas Treatment Unit (FGTU) and the associated facilities.

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

PP imports to Belarus down by 0.8% in Q1

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus decreased to about 26,900 tonnes in 2020, down 0.8% year on year, compared to the same period of 2020. The greatest increase in imports accounted for homopolymer PP, according to MRC DataScope.

March PP imports into Belarus rose to 10,200 tonnes from 9,100 tonnes a month earlier. Local companies increased their purchases of injection moulding propylene copolymers in Russia and in Middle East. Total PP imports into the country reached 26,900 tonnes in January - March, compared with 27,100 tonnes year on year. The demand only for homopolymer PP increased, but demand for propylene copolymers decreased.

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

March imports of homopolymer PP increased to 6,900 tonnes from 6,700 tonnes a month earlier, purchases of injection moulding homopolymer PP in Russia increased. Overall imports of homopolymer PP reached 19,500 tonnes in the first three months of the year, up by 0.4% year on year.

March imports of propylene copolymers to Belarus were about 3,300 tonnes versus 2,400 tonnes a month earlier, local companies increased significantly their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian and Middle Eastern producers. Thus, overall imports of propylene copolymers reached 7,300 tonnes in January-March 2021, down by 4% year on year.


MRC

PVC imports to Belarus up by 39% in Q1 2021

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus totalled 14,300 tonnes in the first three months of 2021, up by 39% year on year, according to MRC's DataScope report.

According to the statistics committee of the Republic of Belarus, local converters raised their purchasing of PVC in March 2021 on the back of a seasonal growth in demand for finished products, total imports were 5,300 tonnes, whereas this figure was 4,900 tonnes a month earlier. Russian resin accounted for the main increase in procurement.

Thus, imports of unmixed PVC reached 14,300 tonnes in January-March 2021, compared to 10,300 tonnes a year earlier.
Russian producers with the share of about 92% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Germain producers were the second largest suppliers.

MRC

HPCL to fully start expanded Mumbai refinery by late June-July

MOSCOW (MRC) -- India's 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, reported Reuters with reference to the company's chairman M. K. Surana's statement.

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.

"One crude unit of 3.5 million tonnes (70,000 bpd) is under commissioning and we are revamping the second unit to add capacity," he said. The state-run refiner aims to add 40,000 bpd capacity to the second crude unit.

He also said the company is operating its 166,000 bpd Vizag refinery in southern India at full capacity. Meanwhile, HPCL is in process of raising the capacity of the Vizag refinery to 300,000 bpd. Surana said the expansion will be completed in this fiscal year to March 2022 while the residue upgradation facility at the Vizag plant is also likely to be completed in 2022.

In addition, HPCL is building a 180,000 bpd refinery and petrochemical plant in desert state of Rajasthan.

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

Four refineries slow down production amid heavy raines and flooding in US Gulf Coast

MOSCOW (MRC) -- Four US Gulf Coast refineries slowed production on Tuesday as heavy rains fell, flooding areas across East Texas and Louisiana this week, reported Reuters.

Heavy rainstorms and tremendous lightning are forecast this week to continue to strike the US Gulf Coast, which is home to about half of the United States' oil refining capacity.

Total SE's 225,500 barrel-per-day (bpd) Port Arthur, Texas, refinery was restarting on Tuesday after the entire plant was knocked out of production by a brief power loss on Monday, sources familiar with plant operations said.

A Total spokeswoman declined to comment.

At Motiva Enterprises' (MOTIV.UL) 607,000-bpd Port Arthur refinery, the nation’s largest, a coker was restarting on Tuesday after being knocked out by a transformer blowout on Monday.

Motiva declined to comment.

A catalytic reformer shut down at Valero Energy Corp’s (VLO.N) 335,000-bpd Port Arthur refinery on Monday, according to energy industry intelligence service Genscape. More than eight inches (20 cm) of rain fell on Monday in Port Arthur, according to forecaster Weather Underground.

Valero did not reply to a request for comment from Reuters.

On Tuesday, a small crude distillation unit was shut at ExxonMobil Corp’s (XOM.N) 502,500 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery, for 30 days of planned work, according to two sources familiar with plant operations. Rainfall totals this week in Baton Rouge have been about 6 inches with up to 10 inches falling in areas outside the city, according to Weather Underground.

“Weather is not impacting operations at Baton Rouge,” said Exxon spokeswoman Julie King.

As MRC wrote before, in April, 2021, ExxonMobil, the largest private US company, floated a proposal for a public-private carbon storage project that would collect planet-warming carbon dioxide emissions from US petrochemical plants and bury them in deep under the Gulf of Mexico. The plan would require "USD100 billion or more" from companies and government agencies to store 50 million metric tons of CO2 by 2030, with capacity potentially doubling by 2040, Joe Blommaert, president of Exxon's Low Carbon Solutions business, said in an interview.

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