Uzbekistan to launch a gas chemical plant for the production of olefins from methanol in 2023

MOSCOW (MRC) - Uzbekistan plans to launch in the fourth quarter of 2023 the production of polymers in a complex with MTO technology (from methanol to olefins), a representative of the country's Ministry of Energy said at the forum "Gas Chemical Complex MTO: Technologies of New Uzbekistan".

The complex with a capacity of 720,000 tonnes of polymers per year will be located in the center of the free economic zone (FEZ) in Karakul, Bukhara region.

The USD2.5 billion project is expected to be commissioned in the fourth quarter of 2023 and will provide the Uzbek industry with olefinic hydrocarbons. The gas chemical complex is designed for processing local raw materials based on a licensed technological process for converting methanol into olefins, which has no analogues in the CIS region.

More than 70% of the plant's products will be sold on the domestic market, which will allow Uzbekistan's industry to meet domestic demand, as well as export various raw materials to the CIS countries, China, Turkey and the countries of Southeast Asia.

Based on the technology of the Chemtex Global Corporation (USA), the plant will produce polyethylene terephthalate (PET). PET is currently fully imported to Uzbekistan. The monoethylene glycol used for PET production will be produced using the technology of Scientific Design Company Inc. (USA).

The production of low-pressure polyethylene (LDPE) will also be launched for the first time in the Republic on the equipment and technology of Versalis (Italy) with the use of a tubular reactor under ultra-high pressure. This technology allows one unit to consistently produce two types of end products - LDPE and ethylene vinyl acetate (EVA).

Polypropylene production will be carried out in cooperation with W. R. Grace & Co. (USA), a world leader in this field.

The fact that Uzbekistan intends to build a new gas chemical complex (GCC) in the coming years, which will become the basis of the largest technological cluster in the region, became known in 2018.

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) -- Trafigura is preparing to sell its 24.5% indirect stake in an Indian oil refining joint venture with Russia's Rosneft to an Italian group, a letter seen by Reuters shows and people familiar with the commodity trading firm's plans said.

Trafigura holds the stake in Nayara Energy, which owns India's third largest refinery, a port and a network of more than 6,000 fuel stations across India, indirectly through a 49.84% holding in Singapore-based Tendril Ventures Pte Ltd.

It plans to sell the Nayara stake to Italy's Genera Group Holding S.P.A, people familiar with the matter said, without giving detail on what had prompted Trafigura to sell.

Trafigura declined to comment. Genera did not respond to Reuters emails and messages seeking comment. Nayara said it could not comment on the actions of its shareholders.

It is unclear how much Trafigura's stake in Nayara, formerly known as Essar Oil, is worth.

Nayara, which owns the 400,000 bpd Vadinar refinery plant in the western Indian state of Gujarat, changed hands for nearly USD13 B in 2017, so the Trafigura stake then would have been worth more than USD3 B.

The other owner of Tendril is Russian investment group United Capital Partners (UCP), which also has 49.84%. Tendril's wholly-owned subsidiary, Cyprus-registered Kesani, owns a 49.13% stake in Nayara Energy. Rosneft's Singapore unit also has a 49.13% stake and public shareholders the remainder.

When Kesani and Rosneft bought the Nayara stakes in 2017, the sale was structured in a way to prevent Rosneft from acquiring a controlling stake and avoid running foul of US sanctions on the Russian oil major.

"As a result of the proposed transfer, Trafigura will cease to hold an indirect shareholding in Kesani and hence also in the borrower (Nayara)," Virag says in the letter seen by Reuters.

After the transfer, Genera will hold a 24.5% stake in Nayara, through Tendril and Kesani, the letter said.

As MRC informed earlier, India's Nayara Energy hopes to operate its 400,000 barrels per day (bpd) refinery in western India at close to 100% capacity in 2021 as fuel demand is picking up.

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.

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

1. Brenntag Q3 profit increased on the back of strong demand

MOSCOW (MRC) -- Brenntag’s third-quarter profits rose year on year on the back of strong demand at its commodity and specialty chemical divisions, although the CEO of the Germany-headquartered distributor warned that market disruption would last “well into” 2022, said the company. Base chemical division Brenntag Essentials saw a 29% annual increase in operating earnings before interest, taxes, depreciation and amortisation (EBITDA) on demand growth in Europe and the Americas. COVID-19 restrictions and environmental policy in China hit its Asia-Pacific performance.


MRC

MOSCOW (MRC) -- Crude oil futures were lower in mid-morning trade in Asia Nov. 18, extending losses following a sharp overnight tumble, as a draw in US oil inventories across the board failed to overcome rising bearish pressures on both the supply and demand side, reported S&P Global.

At 10:35 am Singapore time (0214 GMT), the ICE January Brent futures contract was down 30 cents/b (0.37%) from the previous close at US79.98/b, while the NYMEX December light sweet crude contract fell 68 cents/b (0.87%) at USD77.68/b. Both benchmarks had shed 2.6%-3% in value overnight.

"Oil prices took center stage in pulling the energy sector lower, as expectations of a coordinated release in oil supplies from the US and other countries drove some profit-taking," IG market strategist Yeap Jun Rong said.

Media reports indicated the US has asked multiple countries, including China, Japan and India, to tap on their oil reserves in a bid to counter surging energy prices.

While analysts have noted that such a move would be a short-term fix for rising oil prices, the news nonetheless brings back into focus inflationary pressures faced by major economies around the world.

Most recently, the UK reported Nov. 17 inflation rising by 4.2% on the year last month, a 10-year high. This comes on the back of the US reporting last week inflation reaching highs not seen in three decades.

COVID-19 cases also continue to be a point of concern, with several countries in Asia not seeing a let-up in caseload figures despite high vaccination numbers and some tightening lockdown restrictions further.

"Despite improving vaccination across the region, COVID-19 risks continue to be closely monitored," Yeap said.

"Singapore's daily new cases have jumped back to the 3,500 level yesterday (Nov. 17), likewise for South Korea with a new record in daily virus cases, while Beijing sees some tightening of restrictions despite fewer daily infections. That may put a cap on upside for now as markets look towards the next catalyst to lift sentiments," he added.

The bearish headlines overshadowed any upside from US Energy Information Administration data showing inventory draws across the board last week.

Total US commercial crude oil inventories declined 2.1 million barrels in the week ended Nov. 12 to 433 million barrels, the EIA said Nov. 17. Total US gasoline stocks slipped 710,000 barrels to 212 million barrels, while distillate stocks fell 820,000 barrels to 123.69 million barrels.

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, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus totalled 45,600 tonnes in the first nine months of 2021, up by 17.3% year on year, according to MRC's DataScope report.

According to the Statistics Committee of the Republic of Belarus, local converters were unable to fully replenish their PVC inventories in September 2021 due to the increased supply from the main suppliers-producers from Russia. September imports were 5,600 tonnes, whereas this figure was at 4,900 tonnes a month earlier.

Thus, imports of unmixed PVC reached 45,600 tonnes in January-September 2021, compared to 38,900 tonnes a year earlier.
As reported earlier, Russian producers with the share of about 92% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Germany with the share of over 7% were the second largest suppliers.

MRC