GAIL stares at massive losses in its LNG business from 2018-19, Part-I: Gas major's US investments have turned very risky

A series of developments on the global oil and gas front have worked together to transform GAIL's investment in buying 5.8 MMTPA of LNG capacity in the US into the very risky category.

-- But when the decision to commit this capacity was taken it could well have seemed right.-- GAIL had thought it would deliver the LNG to India on the assumption that oil prices wouldl still rule at $100/bbl and the Indian market, dominated by oil-index pricing, would be a lucrative one for a prospective seller of LNG.-- The shale gas boom had caused US domestic Henry Hub (HH) prices to slump in the early part of this decade, so even accounting for liquefaction and transport costs, there were healthy profit margins if the wide price differentials between US and Asian natural gas persisted. -- In February 2013, US HH gas prices were at US$3.32/mmbtu, but the landed LNG price was $15.70/mmbtu in India. -- With Japan – the largest LNG importer -- shutting down its entire nuclear capacity following the Fukushima disaster, China and India constructing substantial LNG capacity, and Europe seeking to diversify from its dependence on Russia by building regasification capacity -- GAIL thought its LNG cargoes from the US would enter the Indian market at a very opportune moment. -- Nearly 50 LNG export proposals were submitted for US regulators' approval and GAIL got caught up in the enthusiasm, deciding to book 3.5 MMTPA of capacity with the Sabine Pass terminal and another 2.3 MMTPA from the Cove Point terminal by committing to pay nearly $ billion in fixed annual charges.

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OPEC Crude oil price hikes by $1.60/barrel

Crude oil price moves up by $1.65 for Indian basket

ZHG Announces PET offer to India

GAIL stares at massive losses in its LNG business from 2018-19, Part-II: It took only a short time for the outlook to change dramatically

GAIL stares at massive losses in its LNG business from 2018-19, Part-III: GAIL may end up not covering its fixed costs

Taiwan's FPC projects PVC unit maintenance in August

Taiwan based Formosa Plastics Group (FPC) is planning to start maitenance work at its polyvinyl chloride (PVC) unit for scheduled turnaround in August 2016.

According to input received from industry based source, the unit will be remain shut for 30 days.

The unit currently situated at Mailiao in Taiwan, the unit bears the production capacity of 420,000 metric tonne per annum (MTPA) of PVC.

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Taiwan's FCFC shut its PX unit

South Korea's Lotte Chemical plans to go offline its aromatics unit

 Ethylene price assessed higher in NWE

Domestic market bulk prices as on April 9, 2016

Propylene price increases in Asia

Styrene price goes slightly up in Asian market

Japan's Naptha price moves up

Brent Crude Oil price assessed higher by $2.51

HDPE price moves up in US

Benzene market price synopsis

Indian Crude oil daily basket price

The International Crude Oil price of Indian Basket as assessed by (PPAC) under the Ministry of Petroleum and Natural Gas was dollar 36.71 per barrel on April 7, 2016. This was higher than price of dollar 35.73 per barrel on April 6, 2016.

In Rupee terms, the price of Indian Basket hiked to Rs 2440.11 per barrel on April 7, 2016 as compared to Rs 2379.08 per barrel on April 6, 2016.

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China's Sinopec Corp plans to shut MEG unit

OPEC Crude Oil price assessed higher

Propylene price assessed higher in Asian market

Styrene price declines in Asia

EDC price hikes in Europe market

VCM price goes up in Asian market

HDPE market price synopsis

Brent Crude Oil price assessed lower in Europe

LDPE price increases in Europe

Benzene price noted upward in Europe market

Toluene price falls in Asian market

Para-Xylene price raises in Asian market

MEG price declined in Asian market

Methanol price assessed flat in SEA

HDPE price higher significantly in Asian market

On April 6, 2016, HDPE price in Far East Asia and South East Asia was reported to go up by $10-45 per metric tonne.

In Far East Asia, price of  Blow Moulding grade of HDPE was noted at $1220 per metric tonne CFR while Injection Moulding grade of HDPE was noted at $1190 per metric tonne CFR.

In South East Asia, price of Blow Moulding and Injection Moulding was quoted at $1245 per metric tonne CFR, Blow Moulding price up by $15 per metric tonne and Injection Moulding up by $45 per metric tonne.

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INR decreases 7 paise in morning trade against USD

Propylene price down by 5 dollar in Asia

Styrene price falls by $10 on account of sluggish demand in Asia

Naphtha price raises by $2.5 in Japan

BD price dwindle in Asian market on account of poor demand

Indian basket crude oil price as on April 6

Brent Crude Oil price assessed higher by $1.97

LDPE price increases in Asian market

LLDPE price hikes in Asian market

PS price falls in Asian market

PP price raises in Asian market

LNG price may stay at below $4/mmbtu till 2030-I : Market crashes as demand falls

The global LNG market is in the midst of a massive crash from which it is unlikely to recover in the next 15 years.The crash has been brought about by an over supply of LNG and a unanticipated cut back in demand in the main markets of Japan, South Korea and China.The situation looks grim as LNG demand is projected to fall rather then rise in these countries as alternative energy sources -- such as nuclear, solar and even coal  -- squeeze out the appetite for gas.

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LNG price may stay at below $4/mmbtu till 2030-II: The onus falls on India but is it prepared?
Flint Hills resums US based cracker
Japan's Idemitsu Kosan Global starts maintenance at its SM unit
Thailand's PTT Global resumes prodcution in PE unit
Acrylonitrile price assessed higher in Asian market
Benzene market synopsis
Crude oil price decline in Middle east
Naphtha price sinks in Japan
Propylene price slips in Asian market
Ethylene price decreases in Asian market
OPEC Crude Daily Basket Price Decreases

Indorama completes acquisition of BP Alabam Petrochem Complex

Indorama Ventures Public Company Limited (IVL), a world-leading producer of intermediate petrochemicals, completed the acquisition of 100% of the PX, PTA (1,020,000 tonnes) and NDC (naphthalene dicarboxylate) assets of BP Amoco Chemical Company (BP) at Decatur, Alabama, on 31 March, said IVL in its press release.

The acquisition is situated adjacent to the companies AlphaPet PET plant and has been its main supplier of PTA since the factory was commissioned in 2009.

Mr. Aloke Lohia, Group CEO of Indorama Ventures Public Company Limited said, "This acquisition is a major coup for the company as it brings us competitive feedstock security with scale advantages, technology ownership and innovative products which our customers can rely upon. The Decatur site and its people are a good fit for us and we have together worked for many years and we admire their professionalism and experience.

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OPEC Crude Daily Basket Price
Japan's Maruzen Petrochemical plans to go offline with its naphtha cracker
Phenol market synopsis
Methanol market synopsis
Mixed Xylene price declines in US
Naphtha price decline in Japan
Para-Xylene price declines in Asian market
Toluene price falls in Asian market
Europe's Unipetrol Group Plans to Resume its PE,PP Unit
LDPE price assessed higher in Europe market

Tight supply conditions to continue this week

The shortage of material, particularly in the polyethylene segment, which comprises of PP, HDPE, LDPE, LLDPE,PVC and Polystyrene, is likely to continue this week. The buyer sentiment is low as a consequence is premiums seen in polymer prices are unlikely to see a reprieve this week. There will be upward pressure as tight supply conditions will continue to keep prices up without any scope of coming down.But premiums are likely to come down in the next 10 to 15 days as the supply shortfall is likely to made up with increased imports.Buyers are waiting to raise offtake once prices loosen with increased supplies.

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Indorama Entire Acquisition of BP Alabam Petrochem Complex

INR opens lower by 5 paise against USD

Latest chemical bulk price as on April 24, 2016

Global crude oil price for Indian basket

OPEC Crude Daily Basket Price

Ethylene price assessed flat in Asian market

Propylene price remains static in Asian market

Styrene price remains unchanged in Asian market

Benzene price increases in Asian market

Toluene price moves northward in Asian market

China's Sinopec Corp Wuhan to shut its cracker for maintenance

Japan's Maruzen Petrochemical plans to go offline its naphtha cracker

China's Zhangjigang Yangzijiang shut its PP unit

China based Zhangjigang Yangzijiang has started maintenance turnaround at its Jiangsu unit on April 1, 2016.

According to input received from industry based source, the unit will be remain offline for around 18-20 days.

The unit currently situated at Jiangsu in China with production capacity of 400,000 MTPA of polypropylene (PP).

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Latest chemical bulk price as on April 2, 2016

Plastiblends initiates production at Palsana unit

FPC announces upward EVA offer to India

FPC revises upward PVC offer to India

Venezuela looking to gain normalcy in its PE production

Venezuela’s polyethylene (PE) production is working well, a source familiar with the PE market said on Wednesday.

The country's only low density polyethylene (LDPE) plant was said to resumed operations after shutting down as part as a follow-up to a previous stoppage.

In recent months, LDPE production at Polinter was "intermittent" because of a technical problem. Polinter is controlled by Pequiven, which also supplies the feedstock ethylene for the PE production.

Ethylene supply continues at its normal levels, the source said.

Some PE resins are used to produce food-related packaging. End users have complained about the lack of packaging for the food industry and others.

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Gazprom restarts its HDPE production after a brief turnaround period

Supreme announces upward price revision in PS

RIL publicizes its price revision in PE

RIL Increases its basic price of PP

Gail revises PE price

 IOCL raises PE price

IOCL hikes PP price

Latest chemical bulk price as on April 1, 2016

HMEL hikes its basic price of PP

Israel's COL started maintenance work at its Haifa unit

Gujarat's ONGC Petro plans to start up its Dahej unit

OPEC Crude Daily Basket Price

Global crude oil price for Indian basket

Thailand's PTT Global to recommence its Map Ta Phut unit

India at "take off" stage-II: Naphtha regains importance Mar 31, 2016

Indian naphtha exports have fallen y/y by around 21 thousand b/d between January and November 2015, with the decline extending to 44 thousand b/d between September and November, as India consumes more of its own output due to the rapid growth in demand.-- India has long been a key short-haul naphtha supplier for the Asian market, so the decline in exports has been felt very rapidly. -- Moreover, these shipments are unlikely to return. -- India exported just over 0.1 mb/d of naphtha in October 2015; this is the smallest amount it has shipped overseas since February 2009,-- In November 2015, Indian naphtha exports remained lower y/y by 52 thousand b/d. 

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India at "take off" stage-I: Dramatic shift in consumption in 2015 sets the trend

INR Raises Marginally Against USD in Morning Trade

Global crude oil price for Indian basket

OPEC Crude Daily Basket Price

Latest chemical bulk prices as on March 31, 2016

Taiwan's CPC Corporation shut its Taoyuan unit for maintenance

Reliance to shut is Gandhar unit for permanently basis

MRPL declares upward price revision in PP

Korea's Hyundai Chemical to start its new Daesan unit in October

PP Unit taken offline by Orpic Sohar Refinery for Maintenance Turnaround

Orpic’s Sohar refinery plant turnaround progressing well

Orpic’s Sohar Refinery and Polypropylene (PP) Plant are currently undergoing a major planned turnaround / maintenance activity. This planned turnaround is undertaken every three years to carry out normal equipment cleaning and inspection and also to carry out major modifications to key items of equipment.

This time the scope is larger as Orpic wants to make modifications to the existing plant to allow a full integration of the new units being constructed under the Sohar Refinery Improvement Project (SRIP), due for commissioning later in the year.

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MEGlobal Declares Plans for MEG Facility at Freeport

INR Opens Marginally Higher Versus USD

Global Crude Oil Price for Indian Basket

Total to Resume its Louisiana based Carville Unit in Coming Days

Singapore's Mitsui Phenols Restarted its Jurong Unit

Saudi's Petro Rabigh Completes Maintenance Work at PE Unit

China's Sinopec SABIC Resumed its Tianjin Unit

China's Shandong Recommence its State Owned SM Unit

Strong demand for polymers: Hike in prices anticipated

Demand seems to be on the upswing now after the end of Holi festivities

The upsurge in demand seems to be going hand-in-hand with shortage of material, making ground for a rise in prices.
Premiums are in fact high and they range from between Rs 4-8 per kg across a host of polymers.

Indian manufacturers are finding it tough to cope with demand, and this is reflecting in prices.

Demand-supply forces are pointing towards an increase in ex-work price of PE by 2000-3000 per tonne, of PVC by Rs 1000-2000 per tonne and PP by anywhere between Rs 2000-Rs 4000 per tonne.The tightening of prices are also reflective of strong fundamentals within the economy. And this goods news for every stakeholder.

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ME Group Submits Permit App for 55k barrel Davis Refinery

INR Opens Marginally Higher by 8 Paise Versus USD

CGPC Announces Upward PVC Offer Price to India

SABIC Publicizes its Revised PE Offer to India

SABIC Revises Upward PP Price Offer to India

Global Crude Oil Price for Indian Basket

OPEC Crude Daily Basket Price

Total Petrochemical Plans to Raise PE Price in April

LyondellBasell to Resume its France based PP Unit in April

INEOS to Start Maintenance Work at its Antwerp Unit in May

Italy's Versalis Plans to go offline its Mantova Unit

Canada's Styrolution Likely to Shut its Sarnia Unit for Maintenance Work