Refinery output in China rises nearly 20% on robust demand

MOSCOW (MRC) -- China’s daily refinery throughput surged 19.7% in March from a year earlier, as refiners ramped up operations to meet robust fuel demand and to build up inventory before shutting down for overhaul, reported Reuters.

China processed 59.79 million tons of crude oil last month, data issued by the National Bureau of Statistics (NBS) showed on Friday. That is equivalent to 14.08 million barrels per day (bpd), easing off 14.13 million bpd averaged in the first two months.

The strong year-on-year growth was in part due to a low base a year earlier when Chinese fuel demand was badly hit by coronavirus that forced refineries to slash production.

Throughput for the first quarter of this year was 174.04 million tons, up 16.5% year.

Crude oil output rose 3.3% in March versus the same month a year ago to 17.09 million tons, or 4.02 million bpd. Output for the January-March period climbed 1.4% year-on-year at 49.18 million tons.

Natural gas output last month jumped 12.1% from a year earlier to 18.5 billion cubic meters (bcm), and was up 13.1% at 53.3 bcm for the first quarter.

As MRC wrote previously, Zhejiang Petrochemical Co Ltd (ZPC) has started up its No. 2 cracker in Zhoushan, China, which is part of the company's phase 2 petrochemical project in the cournty. Thus, the cracker with an annual capacity of 1.4 million tons/year of ethylene and 700,000 tons/year of propylene began trial runs in early April, 2021. The commercial production at this facility is expected in the coming weeks.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Yanbu National Petrochemical Co. (Yansab) reported a net profit after Zakat and tax of SAR 420.3 million for the first quarter of 2021, compared to a net profit of SAR 104.5 million in year-earlier period, said Argaam.

The robust rise was fueled by an increase in average selling prices of all products despite lower production and sales volume, and higher feedstock average costs. Moreover, the company recorded SAR 64 million in impairment of ongoing capital works.

Yansab reported profit rise of 26.3% when compared to the previous quarter.

Shareholders’ equity, excluding minority interest, decreased 3.7% to SAR 14.791 billion in Q1 2021, from SAR 15.262 billion a year earlier.

As per MRC, Yanbu National Petrochemical Company (Yansab), part of Saudi Basic Industries Corporation (Sabic), restarted its cracker after a planned turnaround. Thus, the cracker in Yanbu, Saudi Arabia, which can produce 1.38 mln mt/year of ethylene and 400,000 mt/year of propylene, resumed operations on 15 February, 2021. It was shut for a turnaround on 5 February.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Yansab is the most recent SABIC, (Saudi Basic Industries Corp), affiliate in Saudi Arabia, and will be the largest Sabic petrochemical complex. It will have an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT (metric-tons) of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene; 400,000 MT of polypropylene; 700,000 MT of ethylene glycol; 250,000 MT of benzene, xylene and toluene, and 100,000 MT of butene-1 and butene-2.
MRC

MOSCOW (MRC) -- Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I), according to Indian Chemical News.

Under the contract, the Group will provide EMHCC with BEPC services for the project. The main scope of the services includes the basic design, engineering, procurement and construction of all the process units, utilities and infrastructures. The contract value is estimated to be multibillion USD.

The project, which remains subject to final investment decision, will be located in Daya Bay Petrochemical Park, Huizhou, Guangdong, China.

The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

As MRC informed before, ExxonMobil, the US energy major, is considering whether to close down its Slagen oil refinery in Norway, which has a capacity to process 120,000 barrels of crude per day, turning the site into an import terminal. The refinery at Slagentangen near Toensberg in south-east Norway was built in 1961 and process crude oil from the North Sea, exporting about 60% of the output, according to Exxon.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

EMHCC is a wholly-owned subsidiary established by Exxon Mobil Corporation (ExxonMobil) in China.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

MOSCOW (MRC) -- A former chief executive of Braskem SA, Brazil’s largest petrochemicals company, pleaded guilty to involvement in what U.S. prosecutors called a 13-year bribery scheme that involved Braskem’s parent, Odebrecht SA, said Reuters.

Jose Carlos Grubisich admitted in Brooklyn, New York, federal court to conspiring to violate anti-bribery provisions of the federal Foreign Corrupt Practices Act, and falsify Braskem’s records and financial reports to conceal bribes.

Prosecutors said that between 2002 and 2014, Grubisich and others helped divert USD250 million from Braskem into a secret slush fund, which was held in an Odebrecht business unit that "effectively functioned as a stand-alone bribe department."

Funds were then allegedly used to pay bribes to Brazilian government officials to win and retain business for Braskem, including a large project from Brazil’s state-owned oil company, Petrobras. Prosecutors said some bribes that Grubisich authorized were paid after he left his chief executive position in 2008.

Grubisich, 64, faces up to 10 years in prison on the two conspiracy counts at his scheduled Aug. 5 sentencing, and agreed to forfeit USD2.2 million. He entered his plea before U.S. District Judge Raymond Dearie. Lawyers for Grubisich did not immediately respond to requests for comment.

In December 2016, Braskem and Odebrecht, a construction company, pleaded guilty and agreed to pay USD3.5 billion to settle bribery-related charges brought by U.S., Brazilian and Swiss regulators. Odebrecht changed its name in December to Novonor SA to move past its scandal-ridden history, saying it would be “strictly guided by ethics, integrity and transparency."

As per MRC, Braskem, the largest Brazilian petrochemical company, in early March began the process of restarting production at three polypropylene (PP) plants in La Porte, Freeport, Seadrift, TX, USA, which closed on February 15 from - due to extremely cold weather. It is currently unknown how long it will take to restart these enterprises. The production capacity of PP La Porte is 840,000 tonnes per year, in Freeport - 320,000 tonnes per year, and in Sidrift - 225,000 tonnes per year.

According to ICIS-MRC Price report, on Tuesday, 13 April, 2,000 tonnes of Turkmenbashi refinery"s PP raffia grade were put up for export sale at the State Commodity and Raw Materials Exchange of Turkmenistan. The starting price was set at USD1,775/tonne FOB/FCA in accordance with the results of the March trades. Demand for PP was very weak in the trades, and only one deal was registered for 500 tonnes at the starting price.
MRC

1. India aims to diversify crude oil supplies, which maybe hard to achieve due to harsh realities of the global market

MOSCOW (MRC) -- India’s obvious displeasure with restrictions on output imposed by OPEC and its allies, and its aim to diversify crude oil suppliers, may run into the harsh realities of the global market, reported Reuters. The world’s third-biggest oil importer and consumer has told state-owned refiners to speed up the diversification of crude imports in order to cut dependence on its main source of supply, the Middle East, reported Reuters in March, citing two sources with knowledge of the plan. India’s supply is dominated by members of the group known as OPEC+, which includes the long-standing producer group and allies such as Russia. The OPEC+ decision to continue its output cuts of around 7 million barrels per day (bpd) into April was met with anger in India, which imports 84% of its crude needs, with more than 60% coming from the Middle East.

MRC