Gazprom Neft may raise its oil output by 10% in 2022

Gazprom Neft may raise its oil output by 10% in 2022

MOSCOW (MRC) -- Gazprom Neft could increase oil production in 2020 by 10% year on year, reported S&P Global with reference to CEO Alexander Dyukov's statement on Oct. 14.

Dyukov previously said the company was seeking to push hydrocarbons output to 100 million mt in 2021 even if oil production limitations under the OPEC+ pact remained in place, from 96.1 million mt in 2020.

"Considering that next year demand for oil may continue to grow, next year we could increase production by 10%, maybe more, but it will depend on quotas set by the ministry," Dyukov said during the Russian Energy Week conference in Moscow.

He expressed hope that oil prices would not reach USD100/b, but that "everything was possible."

Gazprom Neft, like other Russian producers, is subject to quotas under the OPEC+ agreement.

In accordance with OPEC+ efforts to counter the impact of the coronavirus pandemic, the company cut oil output to about 1.06 million b/d in May 2020, compared to 1.33 million b/d in April 2020, when the deal was not yet in effect, according to the energy ministry's data.

As MRC informed earlier, in August, 2021, Gazprom Neft redeemed BO-01 and BO-04 series bonds ahead of schedule on 24 August. Bonds were repaid ahead of schedule at the outstanding part of the par value, while the coupon yield was paid for the coupon period, on the date of payment of which the securities are repaid ahead of schedule. Bond issues with a total par value of Rb15 bln. were placed in 2016 with maturity in 2046.

Gazprom Neft (headquartered in St. Petersburg, part of Gazprom, which owns 95.68% of its shares) is one of the largest Russian oil companies. In 2015, Gazprom Neft remained one of the leaders in the oil industry in terms of key performance indicators - the level of operating profit and return on invested capital. In 2015, Gazprom Neft produced 79.7 mln tonnes of hydrocarbons, increasing production by more than 20% compared to 2014 and thus achieving the highest production growth in the Russian oil industry.

Gazpromneft - Moscow Oil Refinery is a subsidiary of Gazprom Neft. The plant's production capacity is 12.15 mln tonnes/year of hydrocarbons. The company produces motor gasolines, diesel, marine and aviation fuel, fuel oil, high-octane additives to motor gasoline, bitumen and gases for various purposes, as well as polypropylene (PP). And in 2010, Moscow Oil Refinery and SIBUR created a joint venture for PP production - NPP Neftekhimiya LLC.
MRC

Ukrainian PE imports down by 4% in Jan-Sep 2021

MOSCOW (MRC) -- Overall polyethylene (PE) imports to the Ukrainian market dropped in the first nine months of 2021 by 4% year on year to 196,600 tonnes. Imports of all PE grades decreased, with few exceptions, according to MRC's DataScope report.

Last month's PE imports to Ukraine were 25,500 tonnes versus 25,900 tonnes in August, local companies reduced their purchasing of low density polyethylene (LDPE) and high density polyethylene (HDPE). Thus, overall PE imports reached 196,600 tonnes in January-September 2021, compared to 204,200 tonnes a year earlier. Imports of all PE grades decreased, except for ethylene copolymers, with HDPE accounting for the greatest reduction in shipments.

The supply structure by PE grades looked the following way over the stated period.


Last month's HDPE imports fell to 7,300 tonnes from 8,000 tonnes, shipments of polyethylene for extrusion blow moulding (EBM) decreased. Overall HDPE imports totalled 62,700 tonnes in the first nine months of 2021 versus 73,400 tonnes a year earlier.

September LDPE imports were 7,300 tonnes versus 8,300 tonnes a month earlier, Ukrainian companies faced limited purchases of PE in Azerbaijan and Russia. Overall LDPE imports reached 59,700 tonnes in January-September 2021, down by 2% year on year.

Last month's imports of linear low density polyethylene (LLDPE) were 8,700 tonnes, compared to 7,300 tonnes in August, shipments of film grade LLDPE from Saudi Arabia increased. However, overall LLDPE imports were 59,500 tonnes in January-September 2021, which equalled the last year's figure.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 14,700 tonnes over the stated period, compared to 10,600 tonnes a year earlier.

MRC

COVID-19 - News digest as of 14.10.2021

1. Asia crude oil imports stay soft in September

MOSCOW (MRC) -- Despite a rally in crude oil prices to three-year highs, there is scant evidence that demand in the top importing region of Asia is recovering. In fact, imports across the region dropped in September from the previous month, as high prices and economic disruption from the coronavirus pandemic continued to affect fuel demand, reported Reuters. What there is early evidence of is that the major producers in the OPEC+ group of exporters are re-gaining market share lost due to their earlier output cuts, as they ramp up production and cut their official selling prices. Asia's crude imports were 22.99 MM barrels per day (bpd) in September, according to Refinitiv Oil Research, down from 23.24 MMbpd in August and only just above July's 22.61 MMbpd.


MRC

Crude oil futures steady-to-higher in Asia as surging gas prices to support bullish demand outlook

Crude oil futures steady-to-higher in Asia as surging gas prices to support bullish demand outlook

MOSCOW (MRC) -- Crude oil futures were steady to higher in mid-morning trade in Asia Oct. 14 as surging natural gas prices and bullish winter requirements continued to support the demand outlook, reported S&P Global.

At 10:25 am Singapore time (0225 GMT), the ICE December Brent futures contract was up 9 cents/b (0.11%) from the previous close at USD83.27/b, while the NYMEX November light sweet crude contract was 5 cents/b (0.06%) higher at USD80.49/b.

"Generally, there are still optimism surrounding oil prices as markets look toward the upcoming winter period to drive further demand. Near-term catalysts may include a pause in the US dollar rally, which declined from its one-year high yesterday, while markets continue to assess the impact of end-users switching to oil products from surging natural gas prices," IG market strategist Yeap Jun Rong told S&P Global Oct. 14.

OPEC+ in its closely-watched monthly market outlook Oct. 13 lowered its estimate for 2021 oil demand growth to 5.8 million b/d from its previous estimate of 5.9 million b/d.

"The slight revision lower was due to lower-than-expected consumption in the first three quarters of the year," ING research analysts said in a note Oct. 14, adding that OPEC still expected to see stronger demand in Q4, particularly given the potential for gas to oil switching.

However ANZ research analysts in an Oct. 14 note pointed out that while the spike in natural gas could boost petroleum use in areas such as power generation, it could also hurt demand in other areas such as refining.

Energy shortages in Europe continue to impact oil markets, with diesel futures in deep backwardation, driven by the switching to gasoil/diesel for power generation.

US crude inventories rose 5.2 million in the week ended Oct. 8, the American Petroleum Institute said in a weekly report late Oct. 13, defying analyst expectations of a 140,000-barrel draw. Gasoline inventories fell 4.6 million in the week and distillate stocks fell 2.7 million barrels, the API said.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

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

Trinseo enhances commitment to sustainability by appointing Francesca Reverberi as Chief Sustainability Officer

Trinseo enhances commitment to sustainability by appointing Francesca Reverberi as Chief Sustainability Officer

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics and latex binders, has announced that Francesca Reverberi will assume the newly created role of SVP and Chief Sustainability Officer, as per the company's press release as of 12 October.

Effective immediately, in this new role, Reverberi is responsible for enhancing Trinseo’s leadership position in sustainability by continuing to build out its portfolio of sustainable chemistries and driving its corporate and businesses strategies in this very important area. Reverberi is charged with propelling the company towards accomplishing its ambitious 2030 Sustainability Goals centered around increasing the sustainability of its product portfolio and operations, minimizing its impact on climate change, driving supplier responsibility, establishing a more sustainable workforce and building a strong sustainability reputation in the market.

“The creation of this new role of Chief Sustainability Officer and the appointment of Francesca to this inaugural role will bolster Trinseo’s already strong commitment to Sustainability,” said Frank Bozich, Trinseo President and Chief Executive Officer.

Francesca will remain as a member of Trinseo’s Management team and will continue to lead the synthetic rubber business until the sale to Synthos has been completed.

As MRC reported earlier, in May 2021, Trinseo entered into a definitive agreement to sell its synthetic rubber business based in Schkopau, Germany to Synthos S.A. and its affiliates for an enterprise value of approximately USD491 million, comprised of USD449.4 million of cash and the assumption of approximately USD41.6 million of pension liabilities. The expected net cash proceeds are approximately USD400 million after transaction-related costs and taxes. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022.

We remind that Trinseo and its affiliate companies in Europe have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe. Effective October 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR55 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR55 per metric ton;
- MAGNUM ABS resins - by EUR60 per metric ton;
- TYRIL SAN resins - by EUR45 per metric ton.

According to ICIS-MRC Price report, in Russia, October prices of Nizhnekamskneftekhim's GPPS were in the range of Rb152,750-163,700/tonne CPT Moscow, including VAT, and HIPS prices were at Rb156,750-167,700/tonne CPT Moscow, including VAT. Penoplex contracted its GPPS quantities at Rb169,000-171,000/tonne CPT Moscow, including VAT, in October, whereas last week's prices of Gazprom neftekhim Salavat's GPPS were heard at Rb152,500-156,500/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
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