Gazprom increased gas production and supplies over 8.5 months

Gazprom increased gas production and supplies over 8.5 months

MOSCOW (MRC) -- According to preliminary data, Gazprom produced 357.7 billion cubic meters of gas in the first 8.5 months of 2021, which is 17.8 per cent (or 53.9 billion cubic meters) more than in the same period of last year, said the company.

Gazprom ramped up its domestic supplies from the gas transmission system by 14.8 per cent (or by 21.3 billion cubic meters) over said period of 2021. As many as 25 Russian regions are already receiving heat supplies, almost a week earlier than last year.

The Company increased its gas exports to the countries beyond the FSU to 138.6 billion cubic meters. Gazprom continues to keep the amounts of its gas supplies near the all-time high level (141.3 billion cubic meters for the same period of 2018). This is higher than the figure for the same period of 2020 by 17.4 per cent (or by 20.6 billion cubic meters).

Specifically, Gazprom increased gas supplies to Turkey (+157.7 per cent), Germany (+35.8 per cent), Italy (+15 per cent), Romania (+347.6 per cent), Serbia (+125.9 per cent), Poland (+11.4 per cent), Bulgaria (+52.3 per cent), Greece (+12.8 per cent), and Finland (+19 per cent).

Gas supplies to China via the Power of Siberia pipeline continue growing and are regularly exceeding the daily contractual obligations of Gazprom.

According to Gas Infrastructure Europe, the level of reserves in European underground gas storage facilities remained the lowest in many years as of September 13, 2021. The negative difference between the current inventories and last year's level is 22.8 billion cubic meters of gas. Only 62 per cent of the total amount of gas that was withdrawn in the last heating season has been replenished.

As for Ukraine's UGS facilities, the negative difference versus last year is 30.6 per cent (or 8.2 billion cubic meters of gas). Gazprom is actively injecting gas into Russian UGS facilities. The daily average indicator for the first half of September is 325 million cubic meters.

As per MRC, Gazprom and the industrial gases major Linde signed an agreement of intent for Ust-Liga gas processing complex cooperation. The document outlines the main terms and conditions of a prospective EPSS contract providing for engineering services, equipment supplies, and maintenance of gas processing and off-site facilities, Gazprom informed in its statement.

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 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.
MRC

Colonial Pipeline resumes operations on Line 1, whereas Line 2 remains shut after Hurricaine Nicholas

Colonial Pipeline resumes operations on Line 1, whereas Line 2 remains shut after Hurricaine Nicholas

MOSCOW (MRC) -- Colonial Pipeline, the nation's largest fuel line, has resumed operations on its Line 1 refined products pipeline, while Line 2 remains down because of power outages caused by Hurricane Nicholas, reported S&P Global with reference to the company's statement Sept. 14.

"Colonial Pipeline has begun receiving product from shippers impacted by power outages in the Houston-area," Colonial said in an update on the T4 shipper bulletin. "As a result, we have resumed operations on Main Line 01 -- based on volume availability. Main Line 02 remains down, but we will resume operations once product is made available."

Lines 3 and 4 are operating normally, the company said.

Colonial Pipeline is a major supplier of refined products for the East Coast, carrying 1.5 million b/d of gasoline products from Houston to Greensboro, North Carolina, on Line 1 and 885,000 b/d of refined products on Line 2 from Greensboro, North Carolina, into New York Harbor.

US Atlantic Coast gasoline and diesel inventories are tight, which has already largely been priced into the market. However, any extended pipeline outages would be bullish for the New York-delivered NYMEX refined products.

USAC gasoline inventories have fallen 16.6 million barrels since late June to 54.1 million barrels, putting stocks at 15% below the five-year average, US Energy Information Administration data shows.

Nicholas made landfall as a Category 1 hurricane near the eastern part of the Matagorda Peninsula at about 1:30 am EDT on Sept. 14, and has since been downgraded to a tropical storm.

Atlantic Coast gasoline sources said that there were no supply concerns currently regarding the shutdown of the two lines.

So far no Houston-area refiners have reported problems with operations because of the tropical storm.

As MRC wrote before, in early September, 2021, Colonial Pipeline restarted its main gasoline and distillate lines after it shut the lines as a safety precaution ahead of Hurricane Ida.

We remind that the fourth-largest US refiner Phillips 66 said earlier this month that it put the smaller of its two Louisiana refineries up for sale amid continued losses and an uncertain future for motor fuels. The company is holding talks with a potential buyer on the sale of its 255,600 barrel-per-day (bpd) Alliance refinery in Belle Chasse, Louisiana, according to two people familiar with the matter. The identity of the potential buyer could not immediately be learned. US refiners have closed or sold oil processing plants as the COVID-19 pandemic slashed demand for gasoline and jet fuel, generating losses for the industry.

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 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.
mrcpalst.com

PP imports to Ukraine decreased by 7% in January-August

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 82,700 tonnes in January-August of this year, down 7% year on year.
Only some grades of propylene copolymers imports have grown, according to MRC's DataScope.

August PP imports to Ukraine decreased to 10,900 tonnes from 12,200 tonnes a month earlier, local companies decreased their purchasing of homopolymer PP. Overall imports of propylene polymers reached 82,700 tonnes in January-August 2021, compared to 88,700 tonnes a year earlier. The main decrease in imports accounted for homopolymer PP, while imports of some propylene copolymers increased.

Structure of PP supplies over the reported period looked as follows.

August imports of propylene homopolymers to the Ukrainian market decreased to 8,000 tonnes due to limited export quotas from the Middle East and Russian producers, while a month earlier this figure was about 9,300 tonnes. Thus, overall homopolymer PP imports reached 61,400 tonnes in the first eight months of 2021, down by 10% year on year.

Last month's imports of block copolymers of propylene (PP block copolymers) were about 1,200 tonnes, compared to 1,100 tonnes in July, a small increase in supplies of injection moulding PP block copolymers was seen. About 8,100 tonnes of PP block copolymers were imported in the eight months of this year, compared to 8,800 tonnes a year earlier.

August imports of statistical copolymers of propylene (PP random copolymers) virtually remained at the previous month's level, totalling 1,500 tonnes. Total PP random copolymer imports to Ukraine reached 10,900 tonnes in the first eight months of the year, compared with 10,200 tonnes year on year.

Overall imports of other propylene copolymers totalled slightly over 2,300 tonnes over the stated period.

MRC

COVID-19 - News digest as of 15.09.2021

1. Crude oil futures rise in Asia on US pipeline outage and IEA bullish oil demand outlook for 2022

MOSCOW (MRC) -- Crude oil futures were higher in mid-morning trade in Asia Sept. 15 after a storm-related power outage shut the US' largest oil pipeline and the International Energy Agency (IEA) released a bullish oil demand outlook for 2022, reported S&P Global. At 10:25 am Singapore time (0225 GMT), the ICE November Brent futures contract was up 28 cents/b (0.38%) from the previous settle at USD73.88/b, while the NYMEX October WTI contract was 30 cents/b (0.43%) higher at USD70.76/b. The Colonial Pipeline, a major supplier of refined products to the US East Coast that carries 1.5 million b/d of gasoline products from Houston to Greensboro, North Carolina on Line 1 and 885,000 b/d of refined products from Greensboro into New York Harbor on Line 2, shut its main gasoline and distillate line Sept. 14 due to a power outage caused by Hurricane Nicholas, which was subsequently downgraded to a Tropical Storm.

MRC

Crude oil futures rise in Asia on US pipeline outage and IEA bullish oil demand outlook for 2022

Crude oil futures rise in Asia on US pipeline outage and IEA bullish oil demand outlook for 2022

MOSCOW (MRC) -- Crude oil futures were higher in mid-morning trade in Asia Sept. 15 after a storm-related power outage shut the US' largest oil pipeline and the International Energy Agency (IEA) released a bullish oil demand outlook for 2022, reported S&P Global.

At 10:25 am Singapore time (0225 GMT), the ICE November Brent futures contract was up 28 cents/b (0.38%) from the previous settle at USD73.88/b, while the NYMEX October WTI contract was 30 cents/b (0.43%) higher at USD70.76/b.

The Colonial Pipeline, a major supplier of refined products to the US East Coast that carries 1.5 million b/d of gasoline products from Houston to Greensboro, North Carolina on Line 1 and 885,000 b/d of refined products from Greensboro into New York Harbor on Line 2, shut its main gasoline and distillate line Sept. 14 due to a power outage caused by Hurricane Nicholas, which was subsequently downgraded to a Tropical Storm.

Around 720,217 b/d or 39.6% of Gulf of Mexico output remains shut in following Ida, the US Bureau of Safety and Environmental Enforcement said Sept. 14.

The disruptions were reflected in American Petroleum Institute data released late Sept. 14 that showed a 5.44 million-barrel draw in US crude inventories for the week ending Sept. 10, while gasoline inventories fell 2.76 million barrels and distillate stocks fell 2.89 million barrels.

"Oil prices continue to find strength with a larger-than-expected drawdown in crude oil inventories shown from the API data," IG market strategist Yeap Jun Rong said Sept 15.

On the demand side, the International Energy Agency Sept. 14 raised its global oil demand estimate for 2022 by 100,000 b/d to 99.4 million b/d and now sees demand rising by 5.2 million b/d in 2021 and 3.2 million b/d in 2022, a 105,000 b/d cut and 85,000 b/d increase, respectively.

"Signs are emerging of COVID-19 cases abating, with demand now expected to rebound by a sharp 1.6 million b/d in October and continuing to grow until end year," the IEA said in the report, adding that strong pent-up demand and continued progress in vaccination programs should underpin a robust rebound from the fourth quarter.

This came a day after OPEC hiked its forecast for 2022 global demand growth to 4.15 million b/d from 3.28 million b/d a month earlier and projected global oil demand would exceed pre-pandemic levels in 2022.

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