Low demand for fuels to cap European crude refinery runs

Low demand for fuels to cap European crude refinery runs

MOSCOW (MRC) -- A recovery in European jet fuel demand to pre-pandemic levels is years away, forcing regional refiners to continue blending the aviation fuel into diesel, and keeping a lid on their crude runs, consultancy FGE Energy said, as per Hydrocarbonprocessing.

FGE sees jet/kerosene demand in Europe at the end of 2022 reaching 75% of 2018-2019 levels only, meaning European refiners will continue to blend a large volume of jet into diesel to soak up the surplus. "Such blending tends to limit overall refinery crude throughput because maximum distillate hydrotreating capacity is reached at lower crude throughputs," FGE says.

Hydrotreating is a chemical process used in refining petroleum products to remove sulfur. "At this point, incremental crude runs would produce only naphtha, high sulphur gasoil and fuel oil – not a recipe for positive margins," FGE added.

The consultancy forecasts European jet demand not fully returning to pre-COVID-19 levels until 2030, but it will be very close to it from 2024-25 onwards. The collapse in fuel demand after major European economies went into lockdown to slow the spread of the coronavirus forced refineries that could no longer profitably run into capacity rationalisation.

FGE estimates that European refining capacity will shrink by 700,000 barrels per day (bpd) due to the closures announced for 2020 and 2021, with hydrotreating capacity falling by 200,000 bpd. This means European refiners will not return to their pre-COVID-19 annual crude run levels of 12.5 million bpd, FGE says, and forecasting runs to average 11.1 million bpd this year and 11.7 million bpd next year.

"The more jet that can be pulled out of the diesel pool (thus freeing-up diesel hydrotreating capacity) the more scope there is for refiners to increase throughput," FGE said. European diesel refining margins have remained under pressure, even as economies around the continent ease movement restrictions, to a large extent due to jet fuel blending, traders say.

Barge diesel margins in northwest Europe are trading at about USD5 a barrel, according to Reuters calculations, compared with over USD23 a barrel in March 2020.

As per MRC, global oil consumption is set to return to pre-pandemic levels by the first quarter of 2022, driven by a strong expansion in global manufacturing and freight transport as well as the gradual re-opening of major economies. Booming consumption from miners, manufacturers, shipping and trucking firms, as well as private motorists, is expected to offset the continued loss of jet fuel consumption from quarantine restrictions on passenger aviation. Global liquids consumption (including biofuels) is forecast to reach 100.6 million barrels per day (bpd) in March 2022, according to the US Energy Information Administration (EIA).

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

ExxonMobil appointed new president in France

MOSCOW (MRC) -- Charles Amyot has been appointed as the new president of ExxonMobil’s French affiliate, Esso S.A.F., effective 1 July, said the company.

The Board of Directors of Esso SAF, which met at the end of the general meeting of June 23, appointed Charles Amyot to succeed Antoine du Guerny as Chairman and CEO who will retire on June 30, 2021 after a career of more than 37 years at Esso SAF and within the companies of the ExxonMobil group in Europe.

Since 2004, Antoine du Guerny has been administrative and financial director of Esso SAF and of the companies of the ExxonMobil group in France. Appointed Director of Esso SAF in 2010, he became Chairman and CEO in May 2017. He is also Chairman of Esso Raffinage SAS and Exxon Mobil Chemical France.

Esso S.A.F.’s has two refineries – Gravenchon and Fos-sur-Mer – in France, along with petrochemical operations.

As per MRC, ExxonMobil has released the final election results of the 2021 Annual Meeting of Shareholders as confirmed by the independent election inspector. The ExxonMobil board of directors will consist of Michael Angelakis, Susan Avery, Angela Braly, Ursula Burns, Kenneth Frazier, Gregory Goff, Kaisa Hietala, Joseph Hooley, Steve Kandarian, Alexander Karsner, Jeffrey Ubben and Darren Woods. Douglas Oberhelman, Sam Palmisano and Wan Zulkiflee will be departing the board.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

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

Evonik to generate additional sales of over EUR350 mln by 2030 with solutions for circular plastics

Evonik to generate additional sales of over EUR350 mln by 2030 with solutions for circular plastics

MOSCOW (MRC) -- Evonik expects its global circular plastics program to generate additional sales of more than EUR350 million a year by 2030, as per the company's press release.

The company is pooling its activities for circular plastics in a global program. As part of the transition to a circular economy, the company offers its customers solutions for all stages in the polymer value chain. Additives and technologies from Evonik make mechanical and chemical recycling more efficient thus improving the availability of circular plastics. Evonik will also increase the use of sustainable raw materials from circular sources in its own production processes.

“The careful use of resources and protection of the climate leads us down the path towards a circular economy,” said Harald Schwager, deputy chairman of Evonik's executive board, who is responsible for innovation. “We have the innovative capability to create new materials cycles with fewer fossil-based feedstocks and more circular ones. We intend to utilize that potential.”

More than 350 million metric tons of plastics are produced worldwide every year. However, only a small fraction of that amount is recycled. Evonik can facilitate the transformation to a circular economy for sustainable plastics applications with its additives and solutions, and that at competitive cost and quality.

Specialty additives from Evonik can increase the amount of high-quality re-usable recyclate obtained by about 5%. Evonik aims to offer such solutions for about 400,000 metric tons of recyclable plastics by 2025.

Evonik is also working on various chemical recycling technologies for plastic waste that cannot be recycled mechanically. Here, the polymer chains are split to obtain building blocks for the production of new plastics. For example, Evonik is currently developing a process to facilitate recycling of heavily contaminated polyethylene terephthalate (PET) waste. New molecules for high-end applications can be obtained via methanolysis.

Another method of chemical recycling is controlled incineration of plastic waste to produce pyrolysis oils or synthesis gases. Evonik offers modern technologies that play a part in making these processes more efficient. Examples are additives, catalysts, and membranes for the treatment of gas. These pyrolysis oils and synthesis gases can be used as raw materials for the production of plastics.

All of these processes have one thing in common: The goal is to replace fossil-based resources such as oil wherever possible, avoid waste, and minimize carbon dioxide emissions.

As MRC informed before, earlier this month, Evonik signed a purchase agreement to acquire the privately owned technology-driven company Infinitec Activos, with closing expected by July.

According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 263,660 tonnes in the first four months in 2021, up by 13% year on year. Bottle grade PET accounted for 78.3% of the increase in consumption due to the virtual absence of exports and higher imports.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. The company is active in more than 100 countries around the world and generated sales of EUR12.2 billion and an operating profit (adjusted EBITDA) of EUR1.91 billion in 2020.
MRC

Russian offline primary oil refining capacity increased in July

Russian offline primary oil refining capacity increased in July

MOSCOW (MRC) -- Russia's offline oil refining capacity was revised up by 5.2% from the previous plan to 3.123 million tons in July, according to Refinitiv Eikon data and Reuters calculations, said Reuters.

The offline capacity has also been revised up this month, by 5.6% from the previous plan to 3.889 million tons.

The revision follows adjustments of maintenance schedule by some refineries.

As per MRC, global oil consumption is set to return to pre-pandemic levels by the first quarter of 2022, driven by a strong expansion in global manufacturing and freight transport as well as the gradual re-opening of major economies. Booming consumption from miners, manufacturers, shipping and trucking firms, as well as private motorists, is expected to offset the continued loss of jet fuel consumption from quarantine restrictions on passenger aviation. Global liquids consumption (including biofuels) is forecast to reach 100.6 million barrels per day (bpd) in March 2022, according to the US Energy Information Administration (EIA).

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

ADNOC to reduce crude oil supply to Asian term buyers by 15% in September

ADNOC to reduce crude oil supply to Asian term buyers by 15% in September

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) will reduce the volume of crude oil it supplies to Asian term buyers by 15% in September, reported Reuters with reference to six sources with direct knowledge of the matter.

The cut was much deeper compared with a reduction of 5% in term volume allocation for crude oil cargoes loading in August, three of the sources said. ADNOC did not provide a reason for the deeper cuts, the sources said.

ADNOC declined to comment on such issues.

The move came as a surprise for some market participants ahead of an upcoming OPEC+ meeting on July 1. It was not immediately clear why ADNOC was making a deeper supply cut for crude oil loading in September for its term contract customers.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs.

Sources told Reuters last Tuesday that OPEC+ was discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market.

As MRC informed earlier, in March 2021, the UAE's Abu Dhabi National Oil Co. signed an agreement with Malaysia's Petronas to explore collaboration in the oil and gas sector of Abu Dhabi and in the low-carbon energy industry in the first such partnership between the two national oil producers.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC