Indian refiners crude oil processing edged higher in September

Indian refiners crude oil processing edged higher in September

MOSCOW (MRC) -- Indian refiners' crude oil throughput in September edged higher from the previous month, government data showed on Friday, as refineries boosted output to meet surging demand, reported Reuters.

Refiners processed 4.45 MM barrels per day (bpd) (18.21 MM tons) of crude oil last month, up from the 4.36 MMbpd in August, which was the lowest in 10 mos.

"Refiners have been boosting throughput in order to meet demand during the festive season. Demand is expected to increase compared to previous months, as people travel more during festivities," Refinitiv analyst Ehsan Ul Haq said.

On a year-on-year basis, refiners' crude oil throughput in September rose about 2.9%, while crude oil production fell about 1.7% to around 600,000 bpd (2.44 MM tons), the data showed.

Indian refiners operated at an average rate of 88.69% of capacity in September, up from 86.89% in August, the government data showed. India's Reliance Industries Ltd, the operator of the world's biggest refining complex, imported nearly 12% more oil in September than in August at 1.2 MMbpd.

"Coal shortages are also resulting in some fuel switching to oil-related products, which is encouraging refiners to boost runs. However, continued high oil prices have the potential to lead to some demand destruction," Ul Haq said.

India's September fuel consumption crawled higher as economic activity continued to ramp up, but soaring global oil prices pose a threat to recovery in the world's third-biggest oil importer and consumer.

As MRC wrote previously, India said Oct. 20 that surging oil prices could potentially create hurdles for a post-pandemic economic recovery, and urged the world's leading producers to take steps to potentially rectify the current supply and demand imbalances. Speaking at the India Energy Forum by CERAWeek, Indian Petroleum Minister Hardeep Singh Puri said the steep rise in prices was a wake-up call that investments need to flow into the oil and gas sector consistently.

We remind that the Indian company Nayara Energy, 49.13% of which is owned by Russia's largest state oil company - Rosneft, has launched a USD750 million petrochemical development program. Nayara Energy has the second largest refinery in India with a capacity of 20 million tons per year. The Indian company has already launched a refinery development program: within the first stage, it is planned to build units for the production of polypropylene (PP) with a capacity of up to 450,000 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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

Petrobras reaches USD99 mln royalties deal with Brazilian oil regulator ANP over refinery in Parana

Petrobras reaches USD99 mln royalties deal with Brazilian oil regulator ANP over refinery in Parana

MOSCOW (MRC) -- Brazil's state-run oil company Petrobras, formally known as Petroleo Brasileiro SA, has reached a 559 million real (USD98.75 million) agreement with the country's oil regulator ANP regarding royalties over its SIX refinery, located in the southern state of Parana, reported Reuters.

Petrobras said in a securities filing that 302 million reais have already been provisioned for a potential payment in the second quarter.

It expects to start paying for the deal as soon as the contract is signed.

As MRC informed before, Petrobras said earlier this month it had halted talks with Brazilian conglomerate Ultrapar on the sale of the state-run oil company's Refap refinery, part of its program to sell eight plants. The company said it would relaunch the process of selling Refap in the future but did not provide a date.

We remind that in August 2021, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

Clariant acquires remaining 70% stake in Beraca

Clariant acquires remaining 70% stake in Beraca

MOSCOW (MRC) -- Clariant is acquiring the remaining 70% stake in Brazilian personal care specialties company Beraca for an undisclosed fee, said the company.

Clariant has held a 30% stake in the family-run company since 2015. The acquisition of the additional stake from Beraca's founders is subject to regulatory approvals and is expected to close in the fourth quarter of this year, Clariant said in a statement.

The Brazilian company is one of the key manufacturers of natural ingredients for the personal care sector offering inter alia fats, oils and botanicals. Beraca’s business will be integrated into Clariant's Care Chemicals business.

Earlier it was reported, Clariant, a world leader in specialty chemicals, has closed its transaction to acquire a 30% share in Beraca Ingredientes Naturais S.A. („Beraca"), which assumed the Health & Personal Care Business of Sabara Quimicos e Ingredientes S.A. Beraca is a leading player in natural, sustainable and innovative ingredients.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

Valero refineries to run at 88-92% capacity utilisation in Q4 2021

Valero refineries to run at 88-92% capacity utilisation in Q4 2021

MOSCOW (MRC) -- San Antonio-based Valero Energy Corp, the second-largest US oil refiner plans to run its 14 refineries at between 88% and 92% of their combined capacity of 3.2 million barrels per day (bpd) in the fourth quarter, reported Reuters with reference to a company executive's statement.

Valero's seven US Gulf Coast refineries are scheduled to operate between 90% and 93% of their combined capacity of 1.9 million bpd, said Homer Bhullar, vice president of investor relations and finance, during a Thursday conference call to discuss third-quarter results.

Jet fuel demand, which has been lagging behind gasoline and diesel demand as lockdowns and work-from-home policies ebbed in 2021, has moved above 80% of 2019 levels, he said.

Valero Chief Executive Joe Gorder said it was unlikely the company would buy another refinery.

Valero has spent several years improving refineries bought in the early part of this century "to a standard that we were comfortable operating in," Gorder said.

As MRC wrote previously, Valero Energy Corp. operated its 14 refineries up to 89% of their combined total throughput capacity of 3.15 million barrels per day (bpd) during the second quarter of 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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

Kazanorgsintez partially shut PE production

Kazanorgsintez partially shut PE production

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) has partially shut its polyethylene (PE) production capacities because of technical issues, according to ICIS-MRC Price report.

The plant's customers said Kazanorgsintez had partially taken on-stream its low density polyethylene (LDPE) and high density polyethylene (HDPE) production capacities by 21 October due to technical problems. The outage was unplanned, the dates of resumption of full capacity utilisation has not been announced yet.

It is also worth noting that Stavrolen shut its HDPE production on 12 October for scheduled repairs. The Budennovsk producer plans to resume its PE production on 17 November. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of high density polyethylene (HDPE). The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC