Essar Oil UK appoints Deepak Maheshwari as its new CEO

Essar Oil UK appoints Deepak Maheshwari as its new CEO

MOSCOW (MRC) -- Essar Oil UK Limited, operator of Britain's Stanlow oil refinery, appointed Deepak Maheshwari as its chief executive officer (CEO), reported Reuters.

Maheshwari succeeds Stein Ivar Bye who left the company in April this year due to personal reasons, shortly after joining in October 2020, a spokesperson for the company said.

Prior to joining Essar Oil UK, Maheshwari was CFO and head of strategy at Adani Ports and Special Economic Zone Limited (APSE.NS), India's largest commercial multi-port operator, according to the statement. He was previously CFO of Essar Energy Limited.

As MRC informed earlier, in late September 2019, Essar resumed operations at its cracker in Stanlow, UK with the capacity of 45,000 mt/year of ethylene and 165,000 mt/year of propylene. It was shut on 11 September, 2019, due to the power outage at the 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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

Saras CEO says climate plan to put European refineries at a serious competitive disadvantage

Saras CEO says climate plan to put European refineries at a serious competitive disadvantage

MOSCOW (MRC) -- Europe's "Fit for 55" package will put European refineries at a serious competitive disadvantage, reported Reuters with reference to the head of Italian refiner Saras' statement.

"This is extremely worrying... It will have huge implications for the sector," Dario Scaffardi said speaking on a conference call on second-quarter results.

The package, unveiled by the European Commission last month, aims to cut the bloc’s output of greenhouse gases by 55% by 2030.

As MRC wrote before, in early 2017, Rosneft JV Projects S.A. (Luxembourg), an indirect subsidiary of Rosneft Oil Company, announced the agreement to sell to institutional investors 114,120,000 ordinary shares in Saras S.p.A., representing 12% of the total share capital in Saras S.p.A., at a price of EUR 1.53 per share through an accelerated bookbuilding.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

SIBUR-Neftekhim to become one of the leaders in efficiency among similar enterprises by 2025

SIBUR-Neftekhim to become one of the leaders in efficiency among similar enterprises by 2025

MOSCOW (MRC) -- A strategy has been developed at Dzerzhinsk SIBUR-Neftekhim, part of SIBUR, the largest petrochemical holding in Russia and Eastern Europe, which will allow the plant to become one of the leaders in terms of efficiency by 2025, said Business News, citing the statement of the new head of the plant, Dmitry Vladimirov, who headed the enterprise in March 2021.

“The pool of tasks facing the plant really looks like a challenge to us. On the one hand, productivity growth, on the other, - a decrease in environmental metrics for emissions. How can these goals be achieved? First of all, through the use of the best available technologies ", - said the general director of the plant at a meeting with journalists, summing up the first results of the work and talking about plans for further development.

So, according to him, an important environmental initiative was launched at the plant in June. Carbon dioxide from the production of ethylene oxide and glycols will be recycled by a nearby partner. As a result, the company will reduce greenhouse gas emissions, and the other party will receive a reliable supplier of CO2 for the production of food carbon dioxide.

At the same time, the refurbishment of ethylene oxide production began at the plant. "Green" technologies are also being introduced, which will allow, on the one hand, to significantly increase production, and on the other hand, to reduce the impact on the environment.

"We plan to complete the realization of this large investment project in 2022. Thanks to the reconstruction of the ethylene oxide production, natural gas consumption will be reduced by 20%, wastewater generation - by 10%, and air emissions - by 4%. But we don't stop there. The company has adopted a sustainable development strategy - we plan to strengthen the localization of these areas at the plant with additional projects by 2025, "said D.Vladimirov.

At the same time, the company is taking all the necessary measures to combat the coronavirus pandemic. Employees safety is an absolute priority. All sanitary requirements are met. Thus, more than 70% of employees have already been vaccinated against coronavirus.

As reported earlier, SIBUR-Neftekhim completed the technical re-equipment of ethylene oxide and glycols production in January 2021. The capacity for the production of monoethylene glycol (MEG) grew by 25 tonnes per day or by 3.1% - up to 830 tonnes per day. To increase production capacity, one of the process columns was improved at SIBUR-Neftekhim and a part of the dynamic and heat exchange equipment was replaced.

MEG, along with terephthalic acid (TPA), is one of the main components for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, May estimated PET consumption in Russia rose by 15% year on year to 85,850 tonnes. Russia's overall PET estimated consumption totalled 349,940 tonnes in January-May 2021, up by 22% year on year.

OJSC "SIBUR-Neftekhim" is a subsidiary of SIBUR, operating in the Nizhny Novgorod region. It was formed on December 20, 1999, on the basis of the assets of the Kstovo Neftekhim CJSC. It produces ethylene oxide, monoethylene glycol, diethylene glycol, acrylic acid, acrylic esters.
MRC

Brenntag acquires the largest distributor of acetone in North America - Matrix Chemical

Brenntag acquires the largest distributor of acetone in North America - Matrix Chemical

MOSCOW (MRC) -- Brenntag, the global market leader in chemicals and ingredients distribution, acquires all operating assets and business of Matrix Chemical, LLC, according to Indian CHEMICAL News.

The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021.

Steven Terwindt, Member of the Management Board of Brenntag SE and COO Brenntag Essentials, comments: “With the acquisition of Matrix we create a highly reliable and competitive logistics network for acetone and solvents in North America that allows us to take advantage of market opportunities and to deliver a variety of core products to our customers more efficiently, economically and in a more sustainable manner. Overall, we expect significant operating synergies by leveraging Matrix’s supplier relationships, logistics network and bulk storage capacity in combination with Brenntag’s existing North American infrastructure and outbound logistics.”

The company distributes acetone and other solvents to customers throughout the United States and Canada. These products are used in various industries such as personal care, adhesives, and the paint and coatings industry.

Matrix operates storage tanks at bulk terminals in Houston (Texas), Chicago (Illinois), Vanport (Pennsylvania), and Wilmington (North Carolina).

Closing and signing of the acquisition occurred simultaneously.

As MRC informed earlier, in April 2020, Brenntag sai it had acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in January-May 2021 by 8% year on year to 42,200 tonnes (38,900 tonnes a year earlier).
MRC

Italian Eni increases near-term crude oil price outlook as market recovery powers strong Q2 earnings

Italian Eni increases near-term crude oil price outlook as market recovery powers strong Q2 earnings

MOSCOW (MRC) -- Italy's Eni raised its near-term oil price outlook July 30 as the market rebound fueled strong second quarter earnings despite lower production volumes and negative refining margins, reported S&P Global.

Eni said it is now assuming a near-term Brent price of USD65/b, up from USD60/b previously, to reflect a firming oil market scenario which helped its adjusted earnings more than treble from the previous quarter.

Hydrocarbon production in the second quarter slipped 5% on the year to average 1.6 million boe/d due to higher maintenance activity in Norway, Italy and the UK, lower activity in Nigeria and mature fields declines. In the first half, start-ups and ramp-ups added 50,000 boe/d mainly due to the Merakes gas field in Indonesia, Berkine in Algeria, Agogo in Angola, and the Mahani gas project in the UAE's Sharjah Emirate.

It reiterated plans to keep output stable at 1.7 million boe/d for this year as a whole, with production in the current quarter expected to average 1.68 million b/d.

"Eni delivered exceptional results in the second quarter of the year, continuing the upward trend of the last three quarters and beating market expectations across all of its business segments with an improved macro backdrop and energy market fundamentals," CEO Claudio Descalzi said.

Eni's adjusted earnings rose to Eur929 million (USD1.1 billion) for the quarter, up from Eur270 million in the first quarter and compared with a loss of Eur714 million a year ago. Following similar moves by Shell, Eni also raised its dividend payments and announced the restart of share buybacks which were suspended last year in the wake of COVID-19 pandemic.

Eni's result highlights the sharp improvement in macro conditions over the year, with Platts Dated Brent crude averaging USD68.83/b in the second quarter, up from USD60.90/b in Q1, and just USD29.56/b in the year-ago quarter when lockdowns saw the benchmark hit its lowest since the late 1990s.

The company said it now expects full-year 2021 cash flow from operations to be above Eur10 billion. Eni has previously forecast free cash flow generation in 2021 of more than Eur3 billion under a Brent scenario of USD60/b.

Despite the earnings jump, Eni maintained its 2021 organic capex target of about Eur6 billion, of which approximately Eur4.5 billion is earnings for the upstream division.

In the downstream segment, however, Eni's refining margins continued to be extremely weak in the European/Mediterranean region with the Eni benchmark margin hitting historic lows of minus 40 cents/b on average in the second quarter, compared with USD2.3/b in the year ago period.

"This was due to continuing pandemic effects, which on one side with the gradual easing of OPEC+ supported the cost of the oil feedstock, while on the other side negatively affected demand for products, particularly middle distillates," Eni said.

Crude throughputs at Eni's refineries in Italy were 4 million mt in the quarter, 27% higher than a year ago while bio throughputs were down by 23% compared to 2020 due to a prolonged standstill of the Venice plant.

As MRC wrote previously, Italian energy group Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
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