Page 16 - FSUOGM Week 40

FSUOGM PERFORMANCE FSUOGM

Russian oil output up

0.6% in September

RUSSIA RUSSIAN oil and condensate production was up down 22% y/y. Domestic deliveries amounted to
0.6% month on month in September at 1.355mn 734,700 tpd (5.385mn bpd) during the month,
Russian compliance tonnes per day (9.93mn barrels per day), accord- up slightly from 5.382mn bpd in August, but
is difficult to gauge as ing preliminary data published by the energy down 9.5% y/y.
it does not disclose its ministry’s CDU-TEK unit. While data for condensate-only output in
condensate output. From August until year-end, Russian oil out- September is not yet available, if it remains close
put is capped at 8.993mn bpd under the OPEC+ to the July level, VTB Capital (VTBC) notes
deal, up from a limit of 8.492mn bpd for May that Russian crude production averaged around
through June. The quotas do not cover con- 9.2mn bpd, exceeding its OPEC+ quota by over
densate production, however, and the ministry 200,000 bpd.
does not provide a breakdown for crude and However, gas production was up 7.9% m/m
condensate. in September at 1.853bn cubic metres per day
Production in September was 12% year on – its highest level since March. Condensate
year, as a result of the much lower OPEC+ quo- flow typically rises and falls depending on gas
tas this year. extraction levels. Gas output was down 0.6%
Rosneft, Surgutneftegaz and Gazprom Neft y/y.
saw their production rates decline by 0.6%, 0.2% OPEC+ is due to ease output cuts by a fur-
and 1.5% m/m in September. But this was offset ther 2mn bpd at the start of January, but there are
by 0.5% increases at both Lukoil and Tatneft, a doubts about whether the oil cartel will increase
1.3% growth at Bashneft and a 4.1% climb in the production as planned, as this would pile further
output of smaller producers. downward pressure on prices.
Rosneft accounted for 36% of national liquids Russian Energy Minister Alexander Novak
production during the month, while Lukoil had a on September 28 said the global oil market had
14% share and Surgutneftegaz had a 10.5%. been stable for the past few months. The balance
Russian oil exports were stable in September between supply and demand has been restored,
at 545,700 tpd (4.00mn bpd), up slightly from he said, although coronavirus (COVID-19)
around 3.99mn bpd in August. But they were causes continued uncertainties. ™
PROJECTS & COMPANIES

Construction starts on Tula urea plant

RUSSIA CONSTRUCTION has begun on a gas-based hexamine, ammonium sulphate, carbon diox-
ammonia and urea plant in Russia’s western Tula ide, and polyamide. The company unveiled
The plant will produce region, its operator Shchekinoazot reported on plans last year to establish a $2bn gas chemi-
525,000 tpy of October 6, having hosted a ground-breaking cal hub in two stages between 2021-2025 and
ammonia and 700,000 ceremony. 2026-2030.
tpy of urea. China National Chemical Engineering The first phase includes the construction of
(CNCEC) won an engineering, procurement new facilities for nitric acid, ammonium nitrate
and construction (EPC) contract for the plant and methanol production. Shchekinoazot broke
in March last year. The Chinese firm in turn ground on a plant capable of producing 270,000
signed contracts to license technology from tpy of nitric acid and 340,000 tpy of ammonium
Denmark’s Haldor Topsoe and the Netherlands’ nitrate in September 2018. Moscow-based
Stamicarbon. Promstroy Engineering was selected for design
The facility will produce up to 525,000 tonnes work, while China’s Sedin Engineering was hired
per year of ammonia and 700,000 tonnes per for construction work. Financing for the $100mn
year of urea at full capacity. Shchekinoazot esti- project was arranged with Gazprombank.
mates its cost at $550mn. It secured a 10-year The company has also secured a syndicate
loan from state lender Gazprombank to help loan from Gazprombank and another state
cover this expense. financier, VEB.RF, to fund the development of
Shchekinoazot, a division of United Chem- the methanol project, which carries a RUB22bn
ical Co. (UCC), already produces a number of ($280mn) price tag. The plant, due to start up in
petrochemical products at its Tula site, includ- 2022, will raise Shchekinoazot’s overall methanol
ing sulphuric acid, methanol, caprolactam, output to 500,000 tpy. ™

P16 www. NEWSBASE .com Week 40 07•October•2020