Indian MRPL signs six-month diesel export deal with BP

Indian  MRPL signs six-month diesel export deal with BP

MOSCOW (MRC) -- Indian refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) has signed a six-month deal to supply BP with 80,000 tons of diesel per month from October, said two trade sources close to the matter, said Reuters.

MRPL will supply diesel to BP for the Australian market at a premium of about USD1.40 a tonne for the six months, the sources said, with pricing based on the average of Argus and Platts' Mideast Gulf spot assessments of 10ppm sulphur gasoil.

The Indian refiner previously had a similar deal with trader Vitol for supplies over April-September this year, they added.

India's diesel demand has yet to reach pre-pandemic levels, though gasoline consumption is expected to surge to its highest in 2021/22 as people eschew public transport, preferring to use their own vehicles for safety reasons.

A rise in gasoline production is leading to surplus production of gasoil, which refiners are exporting. MRPL declined to comment on the deal while BP said it does not comment on its commercial activities.

As MRC informed before, in June 2015, MRPL successfully commenced commercial production of PP from its polypropylene plant as part of its phase-III refinery expansion and upgradation project in Mangaluru. The plant has a capacity to produce 4,40,000 tonnes of PP per annum. Feedstock for the PP plant - polymer grade propylene - is being produced from upstream petrochemical fluidised catalytic cracking unit of the refinery. Technology provider for the PP plant is Novolen of Germany. The plant has been engineered and constructed by Engineers India Ltd.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Mangalore Refinery and Petrochemicals Limited (MRPL), is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1993. The refinery is located at Katipalla, north from centre of Mangalore city. The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.
MRC

Borealis tests renewably-sourced feedstock at its cracker in Sweden

Borealis tests renewably-sourced feedstock at its cracker in Sweden

MOSCOW (MRC) -- The Borealis cracker in Stenungsund, Sweden, is carrying out its first test run of a feedstock derived solely from vegetable-based waste streams, as per the company's press release.

The test, which will be carried out throughout the month of September, should determine the extent to which this renewably-sourced feedstock can serve as a replacement for fossil fuel-based feedstocks. Renewable feedstocks form the foundation of , the Borealis portfolio of premium circular polyolefins. Being able to offer a viable alternative to conventional feedstocks will not only reduce the Stenungsund plant’s overall CO2 footprint, but also help Borealis customers maintain high product quality while meeting their own sustainability goals.

Crackers are plants that create the building blocks for the petrochemical industry. They perform the first step in producing resins and plastics. Crackers have traditionally “cracked,” or broken down, fossil fuel-based materials such as ethane and naphtha. But if they could also break down materials derived from renewable resources, crackers could become a crucial link in the industry transformation to greater circularity and sustainability. A successful pilot test would enable the Stenungsund cracker, already one of the most modern and flexible in Europe, to point the way towards more climate-neutral operations.

The September pilot will test volumes of around 1,000 tons of renewable feedstock. Testing should gauge any possible adverse effects on the cracker ovens. Another aspect is whether production timetables can be maintained, and if more frequent cleaning intervals are required. While the test quantity is small compared to the 1.5 million tons of conventional feedstock processed here each year, satisfactory results will enable the Stenungsund plant to gradually increase the share of renewable feedstocks in the mix. Importantly, the renewable feedstock used in the pilot boasts even greater sustainability because it is sourced exclusively from waste and residue streams - and not from crops grown for food and livestock feed.

Renewable feedstocks form the foundation of the Bornewables, a portfolio of circular polyolefins which offers the same material performance as virgin polyolefins, but with a lower carbon footprint. The Bornewables can be used for a wide range of applications across diverse sectors, including food packaging and hygiene. The entire Bornewables portfolio has received ISCC (International Sustainability & Carbon Certification) certification, meaning the traceability of the renewable, sustainably produced feedstock from its point of origin through the entire chain of custody is assured. Launched in 2020, the Bornewables portfolio is a powerful example of the ways in which Borealis is using its approach to put technology and innovation in the service of circularity.

As MRC reported earlier, in April 2021, Borealis commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products. A feasibility study for a chemical recycling unit to be established at the Borealis production location in Stenungsund, Sweden, has been underway since then.

According to MRC's ScanPlast report,Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 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.
MRC

COVID-19 - News digest as of 14.09.2021

1. COVID-19 resurgence delays full oil demand recovery

MOSCOW (MRC) -- US petroleum consumption has recovered to pre-pandemic levels, but there has been a marked shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven economic recovery, reported Reuters. The total volume of petroleum products supplied to domestic customers climbed to 20.1 million barrels per day (bpd) in May, according to the Energy Information Administration. Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year average for 2015-2019.


MRC

Crude oil futures up in Asia on concerns about tight supply in the US during hurricane season, bullish OPEC+ demand outlook

Crude oil futures up in Asia on concerns about tight supply in the US during hurricane season, bullish OPEC+ demand outlook

MOSCOW (MRC) -- Crude oil futures were higher in mid-morning trade in Asia Sept. 14 on concerns about tight supply in the US during hurricane season and OPEC+ strengthening its demand outlook for 2022, reported S&P Global.

At 10:25 am Singapore time (0225 GMT), the ICE November Brent futures contract was up 32 cents/b (0.44%) from the previous settle at USD73.83/b, while the NYMEX October WTI contract was up 36 cents/b (0.51%) at USD70.81/b.

"Crude oil gained amid signs of further supply disruptions. Prices have been rising as the US oil industry struggles to get back on its feet following Hurricane Ida," ANZ research analysts said in a note Sept. 14. About 44% of capacity was still offline and efforts to restore output may be delayed by another storm, they added.

Supply concerns were compounded by the emergence of Tropical Storm Nicholas on the Texas Gulf Coast as neighboring Louisiana and US Gulf of Mexico oil and gas producers continue to pick up from the devastation of Hurricane Ida two weeks ago.

However the National Hurricane Center said Nicholas, with maximum sustained winds of 60 mph, was expected to be more of a rain event as it makes landfall in the coming hours, unlike Ida with Category 4 winds. There were few reports of refinery shutdowns ahead of Nicholas, with most refiners on the Texas coast and in western Louisiana monitoring the storm's progress and implementing preparedness plans.

Around 793,522 b/d or 43.6% of Gulf of Mexico output remains shut in following Ida, the US Bureau of Safety and Environmental Enforcement said Sept. 13.

Meanwhile OPEC+ in its latest monthly report has forecast oil demand to grow by 4.15 million b/d in 2022, increasing from 3.28 million b/d in last month's report. It now estimates demand to reach 100.83 million b/d for the year, driven by a stronger than expected recovery in fuel demand and a steady economic outlook in all regions.

As informed earlier, Shell said it observed damage from Hurricane Ida to its transfer station West Delta-143 offshore facilities in the Gulf of Mexico. West Delta-143 serves as the transfer station for all production from its assets in the Mars corridor in the Mississippi Canyon area of the Gulf of Mexico to onshore crude terminals. Shell said it is not yet safe to send personnel offshore to learn the full extent of the damage and estimate the effect on production.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MEGlobal nominates ACP for October 2021 at USD880 per tonne

MEGlobal nominates ACP for October 2021 at USD880 per tonne

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in October 2021, according to the company's press release.

Thus, on 13 September, the company said ACP for MEG would be at USD880/MT CFR Asian main ports for arrival in October 2021, up by USD10/tonne from the previous month.

The October 2021 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its September ACP for MEG at USD870/MT CFR Asian main ports, up by USD30/tonne from August.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, the situation in the Russian PET chips market remained steady last week.
PET chips supply remained tight in the local market. Most producers were still able to provide only contract buyers with material.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC