Polymir shuts PE production for scheduled turnaround

MOSCOW (MRC) -- Polymir, part of JSC "Naftan", has shut down some of its low density polyethylene (LDPE) production capacities for a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said the Belarusian producer took off-stream its second LDPE line (158 grade polyethylene) for scheduled repairs on 1 October. The outage will last for 30 days. And this is already the second shutdown for maintenance this year.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968. The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the developments of scientific research institutes and design institutes of the CIS countries. The plant's annual production capacity is 130,000 tonnes.
MRC

1. US crude, fuel inventories rise as production rebounded from recent storms

MOSCOW (MRC) -- US crude oil, gasoline and distillate inventories rose last week as the production rebounded from recent storms, reported Reuters with reference to the US Energy Information Administration's statement. Crude inventories rose by 4.6 MMb in the week to Sept. 24 to 418.5 MMb, EIA data showed, compared with analysts' expectations in a Reuters poll for a 1.7 MMb drop. The rebound came as US crude output jumped by 500,000 bpd to 11.1 MMbpd, a level consistent with activity before Hurricane Ida slammed into the US Gulf Coast about a month ago. Analysts consider weekly production data less reliable than monthly figures, which are released on a lagging basis.

MRC

MOSCOW (MRC) -- Crude oil futures were steady to lower in mid-morning trade in Asia Oct. 1 amid a stronger dollar, while the outlook remained bullish in the lead-up to an OPEC+ meeting scheduled for Oct. 4, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), the ICE December Brent futures contract was down 14 cents/b (0.18%) from the previous close at USD78.17/b, while the NYMEX November light sweet crude contract was 12 cents/b (0.16%) lower at USD74.91/b.

Crude prices are entering into consolidation mode as energy traders await the OPEC+ meeting on output," OANDA Senior Market Analyst Edward Moya said in a note Oct. 1, adding the strengthening dollar was also impacting oil prices.

OPEC+ will meet Oct. 4 to discuss whether to expand its existing agreement of increasing production by 400,000 b/d. The group has recently come under pressure for capping its monthly production increases at 400,000 b/d amid an increase in global demand.

ING research analysts in a note Oct. 1 said it was safe to assume given the current environment that an increase of at least 400,000 b/d was guaranteed for November, adding the greater uncertainty was whether the group would be willing to ease production caps more aggressively.

The stronger dollar was adding headwinds to oil prices. The dollar index stood at 94.32 at 0230 GMT, up 0.1% from the previous close. A stronger dollar makes dollar-denominated assets such as oil more expensive for buyers holding foreign currency, thus dampening demand.

Despite the dip in crude oil prices in early Asian trade, several analysts noted that fundamental remained bullish. The Chinese government has asked state-owned energy companies to build and ensure adequate reserves to meet power needs for winter, which had seen crude prices end higher Sept. 30.

Reflecting similar sentiment, ANZ research analysts noted that refinery offtake continued to remain strong amid attractive margins, while China was preparing to buy more energy to avoid a supply crunch.

We remind that, as MRC wrote earlier, Japanese and Indian refiners said Sept. 28 they were cautiously optimistic about the regional oil demand reaching pre-pandemic levels, as the pace of recovery gains momentum due to lower COVID-19 infections, with India taking slightly longer to get there. Higher demand for fossil fuels gasoline and diesel was leading the recovery in Asia, with the consumption in some countries already past the pre-pandemic levels, but weak jet fuel demand was a drag.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Kemira, a global leader in sustainable chemical solutions for water intensive industries, opens its new APAC R&D center in Pujiang Town, Shanghai, China, to meet rapidly growing market demand and accelerate efforts to develop renewable, biodegradable and recycleable products in the Asian region, as per the company's press release.

With the state-of-the-art research and development capabilities, the 2,400 square meter R&D center will offer bleaching, sizing, polymers, coagulants and biomaterial expertise as well as application solutions to China and Asia Pacific markets. It serves Kemira’s strong paper and board customer base and supports Kemira’s water treatment growth initiatives in the region. It has been built and equipped under the highest environmental standards with facilities that remain close to customers and support employee well-being in line with Kemira’s commitment to sustainability and long term strategy.

“Kemira’s business in Asia-Pacific has grown significantly since our first R&D center was established in China in 2008,’’ says Michelle Xiao, Director of Technology, Research & Development for APAC.“ With the increasing market need for sustainable materials in China, we have expanded our polymer and biomaterial research capabilities to better serve our customers, and help them stay competitive in the fast-paced, cost-conscious and environmentally focused markets.’’

The new center also works closely with Kemira’s Nanjing and Yanzhou sites in China and its Ulsan site in Korea to develop consistent production processes, source new raw materials and end products. It is an intergral part of Kemira’s global R&D network, in collaboration with other Kemira research centers based in Espoo (Finland), and in Atlanta (USA) to deliver innovation into global markets.

As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Kemira is a global leader in sustainable chemical solutions for water intensive industries. The company's focus is on pulp & paper, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR2.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
MRC

MOSCOW (MRC) -- US Refiner Phillips 66 said on Thursday it would cut greenhouse gas emissions by 30% from its operations by 2030, amid mounting pressure on the industry to join the fight against climate change and cut carbon emissions by mid-century, reported Reuters.

Since the 2015 Paris climate accord set a goal to keep global warming to well below 2 degrees Celsius (3.6 F), there has been pressure on refiners to announce ambitious targets and operate more cleanly.

"We support the ambitions of the Paris Agreement, and Phillips 66 will do its part by improving energy efficiency and developing lower-carbon technologies," Chief Executive Greg Garland said in a statement.

The refiner expects to achieve the target through investments in lower-carbon business platforms including renewable fuels, lithium-ion batteries, carbon capture and hydrogen.

It plans to reduce so called Scope 3 emissions intensity of its energy products by 15% from 2019 levels. Scope 3 emissions take into account greenhouse gas emissions from products the company sells, such as jet fuel and gasoline.

Phillips 66 currently is in the process of converting its Rodeo, California refinery, using cooking oil and food wastes, into what would be the largest renewable diesel facility in the world.

As MRC informed earlier, Phillips 66's 255,600-barrel-per-day (bpd) Alliance, Louisiana, refinery faces a monthslong shutdown for repairs following flooding from Hurricane Ida. Phillips 66 said it was still assessing the refinery and a timeline for operational restarts was not available. The sources said the company plans to complete its damage in late September next week when floodwaters fully recede. So far, the company still plans to restart the refinery, which in August it announced was up for sale.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,300 employees committed to safety and operating excellence. Phillips 66 had USD55 billion of assets as of Dec. 31, 2020.
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