Loan tied to troubled St. Croix refinery plunges in value

MOSCOW (MRC) -- A USD440 million loan tied to the now-idled Limetree Bay refinery in St. Croix has lost nearly 30 percent of its value amid a serious cash crunch that could leave a number of U.S. mutual funds holding the debt with losses, said Hydrocarbonprocessing.

The loan is backed by revenue from oil storage operations on the 1,500-acre (600-hectare) complex on the Virgin Islands. But those operations lost their biggest customer this past month when the refinery said it would shut indefinitely because of financial problems and pollution woes that drew enforcement action from the U.S. Environmental Protection Agency.

Bid prices on the loan backed by Limetree Bay Terminals LLC have dropped below 70 cents on the dollar this week, down from a three-month high of 97 cents, according to Refinitiv data. The loan matures in 2024 and several mutual funds hold slices of it, according to filings with the U.S. Securities and Exchange Commission.

As a result of the closure, the storage and terminal operations will lose USD52 million of expected operating revenue in fiscal 2021, according to analysts at Moody's Investors Service. The rating agency downgraded the loan to "Caa1" with a negative outlook.

The terminal stopped making payments to the refinery in mid-May after the EPA ordered all operations at the adjacent refinery to pause for a period of up to 60 days. "Without the refinery as a customer, the expected turnaround in credit metrics and material excess cash flow generation in 2021 becomes unlikely," Moody's said in a June 28 research note.

As per MRC, imports of petroleum products-gasoline, distillate, and other products into the East Coast region of the United States increased in March 2021. Rising imports resulted from lower domestic supply, higher demand, and higher domestic petroleum product prices compared with prices in Europe. In March, East Coast petroleum product imports averaged 1.4 million barrels per day (b/d). In addition, East Coast gasoline imports averaged 737,000 b/d, the highest March level since 2009, and East Coast distillate imports averaged 421,000 b/d, the highest March level since 2003.

We remind that most units were shut on Sunday night and Monday morning (15-16 February) at Marathon Petroleum Corp's 585,000 barrel-per-day Galveston Bay Refinery in Texas City, Texas, as temperatures plunged due to a Arctic cold front reaching the Gulf Coast. They resumed operations in the first half of March.

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

MOSCOW (MRC) - R&P POLYPLASTIC, the largest Russian manufacturer of thermoplastic composite materials, has begun regular deliveries of Armamid PA6 SV 15-1E compound under the Export Fast and Furious program, the company said.

The first batch of 10 tons was shipped in April, and in July the delivery volume was doubled and amounted to 20.5 tons. It is noted that the processing of the first batch of materials by SPE "POLYPLASTIC", received in the spring, confirmed the high quality of the products, so the end client doubled the request. Parts of industrial equipment are produced from the Russian compound in Poland. Impact-resistant glass-filled Armamid PA6 SV 15-1E allows to manufacture products by injection molding.

The material is distinguished by increased values ??of mechanical properties, resistant to the action of hydrocarbons - for example, kerosene, gasoline, diesel fuel, etc., as well as mineral and synthetic oils, concentrated and weak alkalis, weak acids.

"Having established regular deliveries of Armamid PA6 SV 15-1E to Poland, we are not satisfied with what has already been achieved. Today the company is negotiating with partners to bring another material based on polyamide-6 to the Polish market, and they are moving forward quite successfully. that Russian compounds are quite competitive on the European market, "notes Pavel Kruglov, General Director of Trading House Polyplastic, an authorized commission agent of R&P POLYPLASTIC.

Earlier it was reported that RPC "POLYPLASTIC" plans to modernize 50% of production lines by 2025 in terms of automation of the control system and traceability of production process data. NPP "POLYPLASTIC" last year increased its sales profit by 9%. At the same time, it is noted that despite the global economic turmoil caused by the coronavirus pandemic, the company maintained its sales volume at the 2019 level.

Research and Production Enterprise "POLYPLASTIC" specializes in the production of thermoplastic composite materials and polymer raw materials for processing by injection molding, injection molding and extrusion and occupies a leading position in the Russian market of compounds based on thermoplastics. The company is in the TOP-10 among European compounders. The total production capacity of the enterprise is more than 115 thousand tons per year.
MRC

MOSCOW (MRC) -- In what’s being described as the largest industrial investment in Portugal in the last ten years, petrochemicals giant Repsol has announced that it will invest 657 million euros, or USD777 million, to build two new plants for the production of 100 per cent recyclable polyethylene (PE) and polypropylene (PP) at the Sines Industrial Complex, located about 150 km south of Lisbon, said Canplastics.

Scheduled to be operational by 2025, the project additionally will include construction of new logistics installations to enable use of rail transport for improving the complex’s connection to European markets and reducing its carbon-related emissions during transportation of products, according to Repsol.

The facilities employ market-leading technologies for linear PE and PP production and are the first of their kind on the Iberian peninsula, Repsol said. Each plant will have the capacity to produce 300,000 tons per year for applications aligned with energy transition in the pharmaceutical, automotive, and food industries.

The plants are part of Repsol’s 2021-2025 Strategic Plan, which calls for a total investment of 18.3 billion euros, or USD21.6 billion, between 2021 and 2025 and includes numerous projects to evolve its industrial area, which is already highly competitive and holds a leading position in Europe.

As per MRC, In June 2019, Gazprom Neft, Repsol and Shell signed an agreement of intent to create a joint venture to develop these areas. The closing of the deal was scheduled for 2020. It was assumed that Gazprom Neft will own 50% in the joint venture capital, the shares of Repsol and Shell will be 25% each.

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.

Repsol is headquartered in Madrid, Spain. In the 2020 Forbes Global 2000, Repsol was ranked as the 645th-largest public company in the world. It has more than 24,000 employees worldwide.
MRC

MOSCOW (MRC) -- Chevron Corp is considering permanently closing the gasoline-producing fluidic catalytic cracker (FCC) at its 112,229 barrel-per-day (bpd) Pasadena, Texas refinery as part of a possible reconfiguration of the plant, reported Reuters with reference to sources familiar with the company’s deliberations.

Idling the shut 52,000-bpd FCC would be part of converting the refinery on the Houston Ship Channel to a simpler hydroskimming configuration, the sources said.

The FCC was shut on June 1 by a malfunction that knocked the unit out of operation.

“They are investigating if it makes sense to repair the FCC,” one of the sources said.

A decision on the FCC's future is expected this month, the sources said.

In March, Mark Nelson, the company’s executive vice president of downstream and chemicals, said Chevron was looking for ways to expand processing of light-tight oil it produces from the Permian oil field in Texas to supply retail locations along the Gulf of Mexico.

“We continue to test alternatives for capital-efficient ways to expand our light-tight oil processing capability,” Nelson said during an investor day presentation in answer to an analyst’s question about the company’s plans for the Pasadena refinery.

On Friday, Chevron spokesman Tyler Kruzich said the company continues “to test those alternatives.”

Idling the FCC could lead to closure of 40% of the units at the refinery, the sources said.

As MRC informed earlier, Chevron bought the refinery in 2019 for USD350 million from Petrobras plus working capital.

We remind that Chevron Corp restarted the 112,229 barrel-per-day (bpd) Pasadena, Texas, refinery night after completing a multi-unit overhaul that was extended because of the COVID-19 pandemic. The entire refinery was shut from mid-April, 2020, until mid-July, 2020 with the last units returning to production on Tuesday, 14 July. The overhaul was originally to finish in mid-June, but was extended to mid-July.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Air Liquide, Borealis, Esso S.A.F., TotalEnergies and Yara International ASA have signed a Memorandum of Understanding (MoU) to explore the development of a CO2 infrastructure including capture and storage, to help decarbonize the industrial basin located in the Normandy region, France, as per TotalEnergies press release.

With the objective to reduce CO2 emissions by up to 3 million tons per year by 2030, which is equivalent to the emissions of more than 1 million passenger cars, the first phase will consist in studying the technical and economical feasibility of this project. This partnership, which will seek funding from European, French and Regional schemes, is open to other industrial parties.

The ability of industrial players to reduce their CO2 emissions in the medium and long term is a key issue for the sustainability of industrial activities and ecosystems in the area of Axe Seine/Normandy. The companies involved in the MoU have agreed to collaborate to assess the technical and economical feasibility of implementing an industrial CO2 capture and storage (CCS) chain, from their industrial facilities to ultimate storage in the North Sea.

Bernard Pinatel, President of Refining & Chemicals and member of the Executive Committee at TotalEnergies, said : “We are pleased to join forces with some major industrial players of the industrial basin of Normandy to collectively engage into a cooperation to reduce the CO2 emissions from our facilities. This collective effort will be facilitated by TotalEnergies’ actions in developing, with partners, CO2 storages in the North Sea such as the Northern Lights and Aramis' projects. This CCS initiative will contribute to the decarbonization of our Normandy platform and is fully aligned with TotalEnergies’ ambition to get to net zero emissions by 2050.”

As MRC reported previously, in June 2021, TotalEnergies and Novatek have signed a Memorandum of Understanding (MoU) to jointly work on sustainable reductions of the CO emission resulting from the production of liquefied natural gas (LNG) including with the use of renewable power, to develop large-scale carbon capture and storage solutions (CCS) and to explore new opportunities for developing decarbonized hydrogen and ammonia.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 78 countries with approximately 64,500 employees and serves more than 3.8 million customers and patients. Air Liquide’s revenue amounted to more than EUR20 billion in 2020.

Borealis is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics. With head offices in Vienna, Austria, Borealis employs 6,900 employees and operates in over 120 countries. In 2020, Borealis generated EUR6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala.

Esso S.A.F. is a listed company with an 82.89% ExxonMobil France Holding SAS interest. ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world.

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables, and electricity. Its 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
MRC