Chemical News
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Asia: Japan's nuclear crisis set to shrink global LNG spot market Mar 18,2011
The nuclear crisis in Japan could slow the development of spot LNG trading as buyers fearing increased competition for gas look to lock-in supplies through long-term deals, according to analysts. But the potential for increased future LNG demand could help speed up project sanctions for new liquefaction developments around the world, they said. ...>>>
Asia: PAJ expects 780,000 b/d of Japan's capacity to be restored by next week Mar 18,2011
Japan is expected to restore a total 780,000 b/d of refining capacity next week as JX Nippon Oil & Energy expects to restart two crude distillation units at its 270,000 b/d Negishi refinery by the end of that week, the Petroleum Association of Japan said Thursday. "As the 780,000 b/d refining capacity will be restored [next week], we can now ens...>>>
Europe: Reduced Iraq oil flow to Ceyhan to delay loadings: sources Mar 18,2011
Reduced pumping rates through Iraq's northern oil export pipeline to the Turkish port of Ceyhan are expected to cause delays of eight to nine days to crude oil loadings from the Mediterranean terminal because of insufficient volumes in storage, shipping and trading sources said Thursday. Pumping through the pipeline, damaged by a bomb attack ove...>>>
Sinopec to unify paraffin sales business of underlying refineries as from Apr 1 Mar 18,2011
Sinopec set to unify paraffin sales business of all subsidiary refineries as from Apr 1, said a source with Sinopec Shanghai Asphalt Sales Branch Co. Sinopec Oil Refining Marketing Company (transliteration) would take over paraffin sales business from Sinopec Shanghai Asphalt Sales Branch Co, he introduced. The latter had been in charge of sale...>>>
Government's supervision on oil railway tankers crimples base oil, lube delivery Mar 18,2011
Domestic base oil and lubricant delivery was crimpled as the government strengthened supervision on the exclusive use of railway tankers for distillates products transportation as from Mar 1, according to sources from domestic base oil and lubricant markets. China's Railway Bureau forbade delivering base oils and lubricants with distillates rai...>>>
Malaysia's Petronas to keep base oil supplies to China unchanged despite production expansion Mar 18,2011
Malaysia's Petronas successfully expanded its Group III base oil production capacity from 300,000mt/yr to 330,000mt/yr, but it would keep its supplies to China unchanged at 3,000-4,000/month, revealed a company source. The oil giant had started trial run at the facility and began to produce 3cst (namely 70N) base oils since the beginning of the...>>>
Shandong independents to cut GPC outputs in Mar on clustered coker turnarounds Mar 18,2011
Green petroleum coke (GPC) output in Shandong independent refineries would decline greatly in March, due to clustered coker maintenance, C1 found. Shandong Dongming Petrochemical Group set to shut down its 1-mil-mt/yr coker for monthlong maintenance on Mar 5, according to a refinery source. In order to reserve 5,000mt of GPC for sales durin...>>>
Shandong's Mar-Apr GPC output to drop 19% on maintenance peak Mar 18,2011
Shandong-based independent refineries' green petroleum coke (GPC) output would further decline in March-April due to converged coker maintenance schedules, C1 learned. Around 4-mil-mt/yr of cokers are estimated to head into maintenance in the two months, equivalent to a daily drop of 2,100mt in GPC production, C1's research indicated. The decli...>>>
Shandong independent refineries run at 41.3% Thu, down 0.8 percentage points on week Mar 18,2011
Operating rates of independent refineries in Shandong Province averaged 41.3% Thursday, down 0.8 percentage points from one week ago, 16.3 percentage points higher than a year earlier, C1's research showed. The on-week decline was mainly due to shutdown of a 1-mil-mt/yr crude distillate unit at Huaxing Petrochemical, C1 learned from a refinery s...>>>
Sinopec Yanshan Petchem to restart long-idled 1.2-mil-mt/yr FCC Mar 18,2011
In face of gasoline supply tightness, Sinopec Yanshan Petrochemical is scheduled to restart a long-idled 1.2-mil-mt/yr fluid catalytic cracker within this week, a refinery source told C1. The refinery's crude throughput would thus rise to 1-mil mt in March, up 50,000mt or 5% from scheduled, according to the source. The 1.2-mil-mt/yr FCC was s...>>>
Updated: Spot LNG prices ascending on surging demand from Japan in short term Mar 18,2011
LNG demand from Japan is expected to surge in short term for generating electricity. One third of electricity consumed by Japan is generated by nuclear reactors before the earthquake occurred on March 11. There are 54 nuclear reactors in operation in Japan before the earthquake and 10 of them have been closed so far. The electricity supply gap will...>>>
Japan may see rapid rise in LNG demand after quake Mar 18,2011
Japan's demand for liquefied natural gas for power generating purpose is expected to ascend promptly after the shutdown of nuclear power plants caused by quake, because most LNG-fired power plants in the country were still in normal operations. As of Mar 17, Tokyo Electric Power Company's (TEPCO) subsidiary LNG-fired power plants only closed not...>>>
Less supply from Japan bolsters up crack spread of medium distillates to 30-month high in Asia Mar 18,2011
Due to less supply from Japan, the crack spread of medium distillates rose to 30-month high in Asia on Mar 16, and the swaps markets became backwardated, C1 found. The crack spread between gasoil with 0.5% of sulfur content and Dubai crude widened to US$23.8/bbl on Mar 16, and the crack spread of jet went up to US$25.46/bbl, both hitting new hig...>>>
Premiums of fuel oil cutter stock surge on support from Japan Mar 18,2011
Due to expectation of strong demand from Japan after the earthquake and high bids from Japanese companies, the premiums of two cargoes of fuel oil cutter stock surged in Asia this week, C1 learned from market sources. Taiwan's Formosa Petrochemical Corporation (FPCC) sold Vitol 10,000mt of low-viscosity cutter stock on Tuesday at high FOB premiu...>>>
China to supply 20,000mt of gasoil, gasoline to Japan for free Mar 18,2011
To help Japan tackle supply shortage, China's oil majors Sinopec and PetroChina will supply altogether 10,000mt of gasoil and 10,000mt of gasoline to Japan for free in the near term, Sinopec's website shows. This has not been confirmed by Chinaoil or Unipec, both oil majors' trading arms. A source with Chinaoil just said the company is still wai...>>>
Asia:Japan tsunami to boost demand for LSFO, LNG Mar 17,2011
The 11 March earthquake and tsunami in Japan, and the continuing nuclear crisis that they triggered, will have significant repercussions in global energy markets, according to international energy price reporting agency Argus. Japan will rely more on oil for power generation at least until the end of this year, altering regional balances for so...>>>
Asia:Japan nuclear crisis and prospects for Oil ETFs Mar 17,2011
The nuclear crisis in Japan continues and radiation threatens those already devastated by the earthquake and tsunami. Crude oil plunged below $100 a barrel, settling at $97.18, the largest one-day percentage drop since October. Oil-related exchange traded funds (ETFs) followed the oil price, while alternative energy ETFs rose further. The nucle...>>>
Europe:Russia says oil may briefly hit up to $200 a barrel Mar 17,2011
Major oil reserves holder Russia said global oil prices may hit $150-200 per barrel in the short term. According to country's Finance Minister Alexei Kudrin, continued unrest in the Middle East and a devastating earthquake in Japan could boost prices but said the growth however may be speculative and short-lived. He added that world oil pr...>>>
Europe:Egypt resumes gas supply to Israel Mar 17,2011
Egypt has resumed gas exports to Israel, halted for nearly two months following crisis in the North African nation. In a statement, Ampal-American Israel Corporation that supplies gas to Israel said supply resumed the previous day. The company said initial supplies fall short of contractual quantities but would be increased to reach that le...>>>
Asia:India for enhanced crude oil imports from Nigeria Mar 17,2011
India has sought import of higher quantities of crude oil from Nigeria in the coming years. Jaipal Reddy, Minister for Petroleum and Natural Gas indicated this at meeting with Mr Henry Odien Ajumogobia, Minister of Foreign Affairs of Federal Republic of Nigeria here Wednesday. In view of the significant expansion in India's refining capaci...>>>