Shell to simplify its share structure and to become fully UK-based

MOSCOW (MRC) -- Shell said Nov. 15 it plans to scrap its long-standing dual share system and move its tax residence to the UK to simplify its structure, boost competitiveness and accelerate shareholder distributions, reported S&P Global.

Shell said it will propose to shareholders moving to single class of shares to bring it in line with its competitors and most other global companies.

Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since 2005. Its origins as a dual structure company date back to 1907 when Koninklijke Olie merged with Shell Transport and Trading.

"The simplification will normalize our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition," Shell chair Andrew Mackenzie said in a statement.

As a result of the changes, Shell said it expects to change the company's official name from Royal Dutch Shell to Shell.

Shell, like all its European energy major rivals, has set targets to shift away from oil and gas production as it ramps up spending on renewables such as solar and wind power. The company says its oil production has already peaked in 2019.

In addition to changing its tax residence to UK, Shell said its chief executive and a chief financial officer will be located in the UK along with its board and executive committee meetings. Following the simplification, Shell shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in Shell. Shares will continue to be listed in Amsterdam, London and New York, with FTSE UK index inclusion.

As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- ORLEN Poludnie, an ORLEN Group company, has brought on stream Poland’s first and Europe’s largest green propylene glycol production unit at its biorefinery in Trzebinia, said the company.

The unit has a capacity of 30,000 tonnes a year, enough to cover as much as 75% of the domestic demand for the product. This PLN 400m capital project will add over PLN 50m to the Group’s annual EBITDA. An integral part of the complex is Poland’s first hydrogen hub. The projects implemented in southern Poland are another step towards achieving the Group’s strategic goals for low- and zero-carbon energy.

Green glycol is a high-margin bio-based product that is clean and environmentally safe. It is used for a wide range of applications, including in medicine, cosmetics, and the food industry. It can also be used in aviation as an anti-icing and de-icing agent for aircraft. ORLEN Poludnie will produce 30,000 tonnes of green glycol a year, an impressive 10,000 tonnes more than Europe’s only unit of this type located in Belgium.

"We think ahead. We have launched a state-of-the-art unit to make green glycol in Trzebinia as demand for this bio-based product is constantly growing in Europe and around the world. Poland will be the leader of glycol production in Europe. At the same time, we are bringing on stream Poland’s first hydrogen hub, which forms part of the glycol complex. The completed projects will stimulate fast growth of the ORLEN Group in strategic areas while significantly strengthening competitive advantage of the Polish economy. For ORLEN Poludnie, the projects are another milestone in the process of transforming the company into a state-of-the-art biorefinery and consolidating its position as a major business organisation and employer in the region - said Daniel Obajtek, President of the PKN ORLEN Management Board".

Glycerine obtained at the Trzebinia plant as a by-product of biodiesel production will be used to make the eco-friendly glycol, which will be sold to customers in Poland and abroad. The project will also benefit other Polish biodiesel producers, from whom the company will source glycerine. The new project will strengthen ORLEN Poludnie’s position both as a player on the Polish biocomponents market and an employer in the region. The glycol unit has created several dozen jobs. Today the company has a workforce of over 670, with more than half of them employed at the Trzebinia refinery.

Construction on the green glycol project was launched in the autumn of 2019 and it was completed on schedule by a consortium formed by two Polish companies: Technik Polska and Biproraf. An integral part of the glycol complex is Poland’s first hydrogen hub with an annual output of 16 Nm3, of which 75% will be used for glycol production and the remaining 25% will be further purified into hydrogen fuel. The hub will have an annual production capacity of 350 tonnes of pure automotive-grade hydrogen.

The fuel made in Trzebinia is to ultimately power public transport vehicles in Krakow and the Upper Silesian agglomeration. To that end, the Group has signed letters of intent with Miejskie Przedsiebiorstwo Komunikacyjne of Krakow, Krakowski Holding Komunalny, and the Metropolitan Association of Upper Silesia and Dabrowa Basin. In the future, ORLEN Poludnie will also operate a mobile hydrogen refuelling station.

The strategic capital projects implemented in Trzebinia are underpinned by ORLEN Poludnie’s firm and stable financial footing. In the first nine months of 2021 alone, the company posted revenue of ca. PLN 2.4bn, almost PLN 200m more than in the entire 2019 and over PLN 500m more than in the pandemic year of 2020. ORLEN Poludnie has also delivered record net profit for the first three quarters of the year, of PLN 108m.

As per MRC, in August 2020, PKN Orlen signed a non-binding agreement with the state treasury and Grupa Lotos to shape a deal to take direct or indirect capital control of fellow state company Lotos.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.

MRC

1. Demand for fuel and gasoline surged in October in Indias, sales hit record

MOSCOW (MRC) -- India's fuel demand rose in October to a seven-month peak, with gasoline sales surging to an all-time high, government data showed on Tuesday, as festivals boosted mobility and economic activity in the world's third biggest oil consumer, said Hydrocarbonprocessing. Fuel consumption, a proxy for oil demand, rose over 12% to 17.87 MM tons last month from September. It was up 0.8% from the corresponding period last yer and 3% from October 2019, data from the Petroleum Planning and Analysis Cell (PPAC) showed. Consumption got a boost from the start of the festival season in October, offsetting the impact of high prices, Refinitiv analyst Ehsan Ul-Haq said. October's sales of gasoline, or petrol, were 8.3% and 3.4% higher than in 2019 and 2020 respectively and at 2.75 MM tons, was the highest-ever monthly figure recorded as per data going back to 1998. Improving vaccination coverage and the opening up of schools, colleges and offices helped demand, said Prashant Vasisht, vice president and co-head, corporate ratings at ICRA.

MRC

MOSCOW (MRC) -- Crude oil futures extended declines in midmorning trade in Asia Nov. 15, as investors continued to fret over a stronger dollar amid signs of rising inflation and a recent uptick in COVID-19 cases in Europe and China, reported S&P Global.

At 10:12 am Singapore time (0212 GMT), the ICE January Brent futures contract was down 49 cents/b (0.60%) from the previous close at USD81.68/b, while the NYMEX December light sweet crude contract fell 39 cents/b (0.48%) to USD80.40/b.

Bearish pressures continued to dominate sentiment in an event-thinned week of Nov. 14, with investor confidence shaken in recent days by signs of rising inflation in the US. The Biden Administration has hinted at action to tackle surging energy prices in the form of Strategic Petroleum Reserve releases.

"The White House has been debating how to tackle higher inflation, with some officials calling for the strategic reserve to be tapped, or halting US exports," said ANZ Research analysts Brian Martin & Daniel Hynes in a note.

The latest inflation prints could also bring forward the US Federal Reserve's plans to tighten its easy monetary policy further with earlier rate hikes. A majority of traders were now pricing in a rate hike as early as June 2022, compared to earlier expectations of a hike in November 2022, according to the CME FedWatch Tool.

The US dollar has strengthened as a result, with the US dollar index notched near highs not seen since July 2020. As of 0212 GMT, the index was down 0.15% at 94.99.

Meanwhile, the recovery in global mobility has stalled amid an uptick in COVID-19 cases worldwide. China continues to battle its latest outbreak of cases, while several European countries including Germany, Austria and the Netherlands have registered record caseloads in recent days.

Global mobility in the week to Nov. 8 averaged 9.8% below pre-COVID levels in most of the world's top oil users excluding China, according to the latest Google data, up from 8% a week earlier.

IG market strategist Yeap Jun Rong said the outlook for oil prices will remain clouded in the near-term, while not ruling out further declines in the days ahead.

As MRC wrote previously, the average utilisation rate at China's four state-owned refiners fell to a five-month low of 80.6% in October from 81.5% in September while independent refiners also maintained run rates at low levels due to feedstock shortage. These would likely lead the country's crude throughputs to extend the downward trend in October from the 17-month low of 13.7 million b/d, or 56.07 million mt, in September, according to data from the National Bureau of Statistics.

The four state oil companies -- Sinopec, PetroChina, CNOOC and Sinochem - plan to process a total 7.67 million b/d of crudes in October, against their nameplate capacity of 9.52 million b/d, Platts data showed. This compared with a planned throughput of 7.7 million b/d in September. In November, the state-run refiners plan to lift throughput from the low base in October to boost gasoil and gasoline supplies for meeting domestic demand, refining sources said.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

MOSCOW (MRC) -- Plastic Energy and Axens have announced the signing of a strategic collaboration agreement in the field of advanced recycling of plastics, to increase recycling and decrease plastic waste, said Hydrocarbonprocessing.

Plastic Energy and Axens will market and license Plastic Energy’s patented, industrially proven advanced recycling technology, which uses a thermal anaerobic conversion (TAC) pyrolysis process to recycle, end-of-life plastics that would otherwise be destined for landfill, incineration or end up in the environment. The Plastic waste from Plastic Energy’s process is turned into raw materials that can be used to create virgin-quality polymers.

The partners will provide customers with technical and business case studies, basic engineering, technical services, proprietary equipment, complete modular units and support to operations, leveraging Plastic Energy and Axens’ complementary operational, licensing and engineering skills. The partners will also be in position to propose and license a complete technological solution for the pyrolysis pathway, combining Plastic Energy’s recycling technology and the Axens Rewind® Mix process for the purification of plastics pyrolysis oil.

"We are extremely glad to announce our strategic partnership with Plastic Energy, a major milestone in Axens’ ambition to develop and propose an extended portfolio of advanced technologies for the plastic circular economy. Achieving a true circular economy of recycled polymers, including for food contact and health care grade, is a largely shared objective. We believe that Plastic Energy and Axens, together and leveraging our complementary operational and technological skills, can now offer a combination of proven technologies to make it possible” said Jean Sentenac, Chairman and CEO of Axens.

"I am delighted to announce this collaboration agreement with solution-provider Axens to expand our patented and proven advanced recycling technology globally.” said Carlos Monreal, CEO of Plastic Energy. “The operational experience that Plastic Energy has gained over the last 5 years from our current recycling plants in Spain sets us apart in the market and will be invaluable to our new licensing customers. Through this partnership with Axens, we will be able to increase the amount of plastic waste that can be recycled and work towards a more circular economy for plastics.'

As per MRC, Sumitomo Chemical has successfully conducted the first waste-based polyolefin production at its laboratory in Japan earlier this year, by use of the ethylene produced by Axens ethanol-to-ethylene technology Atol. This process value chain is complemented with the upfront “Waste to Ethanol” technology by Sekisui Chemical.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC