Rosneft became the only Russian oil and gas company as a leader in the area of sustainable development

Rosneft became the only Russian oil and gas company as a leader in the area of sustainable development

MOSCOW (MRC) -- Rosneft became the only Russian oil and gas company announced as Global Compact LEAD in the area of sustainable development due to ongoing commitment to the United Nations Global Compact and its Ten Principles for responsible business, said the company.

The announcement of Rosneft Global Compact LEAD took place within the framework of the 76th session of the General Assembly of the United Nations. Rosneft was identified as being among the most highly-engaged participants of the world’s largest corporate sustainability initiative. In 2021, only 37 companies, out of which four companies belong to the oil and gas business, were assigned the Global Compact LEAD status.

Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said, “LEAD companies represent the highest level of engagement with the UN Global Compact. More than ever before, the world needs businesses of all sizes — like the ones announced as LEAD today — that continuously work to improve their sustainability performance and take action to build a better world."

“Recognition as a Global Compact LEAD participant confirms Rosneft’s reputation of a company with high standards of corporate responsibility, and a superior asset portfolio that ensures sustainable economic development with a minimal environmental footprint,” – said Igor Sechin, Rosneft Chief Executive Officer. Mr Sechin reminded that Rosneft was the first Russian company that publicly confirmed its commitment to the 17 Sustainable Development Goals of the United Nations, and integrated them into the corporate strategy.

Mr Sechin noted that Rosneft is the largest taxpayer of the Russian Federation, and plays a strategically important systemic role in the Russian energy industry and national economy on the whole, accounting for about four percent of Russia’s gross domestic product. For over ten years, Rosneft has been sharing the sustainable development principles of the United Nations Global Compact, and, through its operations, promoting development of the global economy based on the principles of equity, equality, and effective climate action.

Rosneft has demonstrated its commitment to the UN Global Compact this year by participating in Action Platforms on Sustainable Finance and Sustainable Ocean Business. Each UN Global Compact Action Platform convenes business, Global Compact Local Networks, leading experts, civil society, Governments and UN partners to solve complex and interconnected issues and innovate around the Sustainable Development Goals.

Rosneft planned to build an oil refining and petrochemical complex in the Primorsky Territory in two stages - oil refining with a capacity of 12 m tonnes per year and petrochemicals with a capacity of 3.4 m tonnes per year.

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.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC

COVID-19 - News digest as of 20.09.2021

1. Exports grew in August in Japan although COVID-19 hits supply chains

MOSCOW (MRC) -- Japan’s exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment, although the pace of growth weakened as COVID-19 hit key Asian supply chains and slowed factory production, said Reuters. The trade growth is unlikely to dispel worries about the outlook for Japan’s economy, which has not yet recovered to pre-pandemic levels after taking an enormous hit from a collapse in global trade in the first quarter of 2020. Exports rose 26.2% in August compared with the same month a year earlier, the Ministry of Finance said on Thursday, marking the sixth straight month of double-digit growth as strong demand for chip-making equipment offset slowing U.S and European Union-bound shipments of cars.

MRC

Crude oil futures drop in Asia as supply concerns subsided

Crude oil futures drop in Asia as supply concerns subsided

MOSCOW (MRC) -- Crude oil futures moved lower during mid-afternoon trade in Asia Sept. 20 as supply concerns subsided on an increase in the US rig count amid recovery in the Gulf of Mexico, and as investors awaited the US Federal Reserve meeting in coming days for more pricing cues, reported S&P Global.

At 2 pm Singapore time (0600 GMT), the ICE November Brent futures contract was down 39 cents (0.52%) from the previous close at USD74.95/b, while the NYMEX October light sweet crude contract was down 47 cents (0.65%) at USD71.50/b.

"After a fourth weekly gain, crude prices slumped after oil rig counts delivered their biggest increase in a month and as risk aversion sent the dollar higher," said Edward Moya, OANDA's senior market analyst, the Americas, in a note.

Supply woes seem to be easing as Baker Hughes reported the US oil and gas rig count, a gauge of future output, at 512 Sept. 17, adding nine rigs in the past week and taking the total to the highest since April 2020.

Production and refining capacities in the Gulf of Mexico continue to push toward full recovery. The US Bureau of Safety and Environmental Enforcement reported Sept. 17 that 422,078 b/d or 23.19% of the Gulf's oil production remains offline, and 765,540 b/d or 34.43% of gas production - figures that were much improved from last week, when 66.36% of oil production and 75.55% of gas production was offline.

A stronger dollar also placed downward pressure on prices. At 2 pm Singapore time (0600 GMT), the ICE US Dollar Index was trading at 93.295, up 0.128% from the previous close. A stronger dollar results in dollar-denominated assets like oil futures becoming less attractive to investors holding foreign currencies, thus lowering demand for these assets.

The market will be closely watching the US Federal Open Market Committee meeting over Sept. 21-22 for clues on the pace of the Federal Reserve's tapering of its bond buying program. Fed Chairman Jerome Powell signaled last month that it would be appropriate for the tapering to occur by the end of this year, which would buoy interest rates and strengthen the US dollar, putting downward pressure on energy prices.

As informed earlier, Shell said earlier this month 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 then it was 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

Nizhnekamskneftekhim shut PE production

Nizhnekamskneftekhim shut PE production

MOSCOW (MRC) -- Nizhnekamskneftekhim (NKNKh, part of TAIF Group) shut its polyethylene (PE) production capacities for a scheduled turnaround on 17 September, according to ICIS-MRC Price report.

According to the producer's clients, producer started the scheduled shutdown of linear low density polyethylene (LLDPE) on 17 September. The shutdown will be short and will last for about 10 days. As it was reported earlier, Nizhnekamskneftekhim shut its ethylene production for scheduled turnaround from 14 September to 16 September.

Earlier it was reported that Nizhnekamskneftekhim (NKNKh, part of TAIF Group) signed contracts with Lummus Technology LLC for the provision of licenses and technologies for the production of ethylbenzene, styrene and propylene for the olefin complex.

Facilities include a 250 ktpa ethylbenzene and styrene unit using EBOne and CLASSIC SM technologies, and a 150 ktpa olefin metathesis unit for polymer-grade propylene using Lummus ethylene dimerization and olefin conversion technology Technology. The units will operate as part of the olefin complex under construction (EP-600).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1.176,860 tonnes in the first six months of 2021, up by 5% year on year. Shipments of only low density polyethylene (LDPE) decreased. PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year.
Shipments of propylene homopolymer (homopolymer PP) and block copolymers of propylene (PP block copolymer) increased. Supply of injection moulding statistical copolymer of propylene (PP-random) has decreased.

Nizhnekamskneftekhim is one of the largest petrochemical companies in Eastern Europe, occupying a leading position among domestic producers of synthetic rubbers, plastics and ethylene. Part of the TAIF group of companies, Tatarstan. The nomenclature of manufactured products includes more than 120 items. The products of the joint-stock company are exported to 50 countries in Europe, America and Southeast Asia. The share of exports in the total volume of production is about 50%.


MRC

Borealis declares force majeure after fire at its cracker in Stenungsund

Borealis declares force majeure after fire at its cracker in Stenungsund

MOSCOW (MRC) -- Borealis has declared a force majeure (FM) at its steam cracker in Stenungsund, Sweden after a fire, according to Plasteurope.

The FM at the Swedish cracker with the capacity of 625,000 mtyear of ethylene was declared on 14 September, 2021, and the cracker was shut on 11 September due to a malfunction and the fire.

A Borealis spokesperson said that the duration of the force majeure was not yet clear.

As MRC reported earlier, the cracker in Stenungsund was restarted on 15-17 January, 2021, and force majeure was lifted on 29 January. And the company reached full capacity utilisation at this cracker in early February. The FM at Stenungsund was declared after a fire started at the cracker on 10 May last year. A restart of the cracker was initially planned for the fourth quarter of 2020. The company began the process of the cracker restart in early January, 2021.

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.

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.
MRC