Oman to merge oil, petrochemical firms under OQ brand

: Crude oil, Oil products, Petrochemicals
19/12/18

Oman's government has announced further details of its planned integration of state-owned oil company OOC, refiner Orpic and seven other domestic energy firms.

A new entity, OQ, will be set up to integrate the operations of the companies. This is the latest step forward in the Nakhla integration programme that was launched late last year, shortly after OOC and Orpic announced plans to merge their downstream and upstream operations.

OQ will comprise OOC, Orpic, OOC's upstream arm OOCEP, Oman Gas (OGC), Duqm Refinery and Petrochemicals Industries (DRPIC), Salalah Methanol (SMC), Oman Trading International (OTI), oxo intermediates and derivatives producer Oxea, and Salalah Liquified Petroleum Gas.

The government said earlier this year that it aims to implement the organisational structure by the end of 2020 and plans to invest over $28bn in the next 10 years.

The integration will enable Oman to streamline its downstream operations before new refinery and petrochemical projects start up in the coming years.

Orpic is in the process of commissioning new polymer plants that are expected to be operational next year. Orpic will produce 300,000 t/yr of polypropylene (PP) and 880,000 t/yr polyethylene (PE), according to Argus data.

The new 260,000 b/d DRPIC refinery is on track to start commissioning in late 2022. DRPIC's planned 1.6mn t/yr mixed-feed steam cracker is scheduled to be operational by 2026, with petrochemical derivative units expected to come on stream around the same period.

Consolidation has been a major theme for Mideast Gulf petrochemical producers in 2019. Saudi Arabia-based Sipchem, a producer of methanol, polymers, and acetic acid, earlier this year merged its operations with fellow Saudi-based firm Sahara Petrochemicals, a supplier of PP.

State-owned Saudi Aramco in March announced plans to acquire a majority stake in state-controlled petrochemicals producer Sabic.

By Muhamad Fadhil

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25/03/14

Plastics Europe urges de-escalation in trade tensions

London, 14 March (Argus) — Industry association Plastics Europe has urged a de-escalation in ongoing trade tensions between the EU and the US, following the inclusion of polyethylene (PE) among products proposed by the European Commission for retaliatory tariffs. "The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic," said Plastics Europe's managing director, Virginia Janssens, on 13 March. "We urge both the EU and U.S. to prioritise diplomatic solutions to avoid escalating trade tensions further." The European Commission on 12 March begun consultations on imposing countermeasures to US tariffs of 25pc on EU and other imports of steel, aluminium and related products. Other products include high-density polyethylene (HDPE), low-density PE (LDPE) and linear LDPE (LLDPE), according to a European Commission document listing the products proposed for retaliatory tariffs. The European Commission did not publish the specific level of proposed tariffs, noting that a formal legal proposal will follow consultation with industry and member states. But a senior EU official noted that "25pc might be a good number". The retaliatory tariffs, if approved by EU member states, will be implemented from 13 April. The US is a key global supplier of PE, with exports totalling around 14.2mn t in 2024. PE exports from the US to the EU in 2024 stood at 2.1mn t, forming around 15pc of the export share. The EU is a net importer of HDPE and LLDPE. This week's developments caught many market participants by surprise. There was no immediate impact on prices as many participants opted for a wait-and-see approach. The European PE market has been grappling with an uncertain demand outlook given weak underlying economic conditions. An imposition of import tariffs could help support domestic European PE production, but there are widespread concerns of these resulting in higher prices for consumer goods and adversely affecting future demand prospects. And higher costs of inputs could further hurt competitiveness of European finished goods in the global markets. Plastics Europe called for "collaborative efforts to resolve this dispute in a manner that protects industry, jobs, and consumers in both the U.S. and Europe." By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dangote refinery buys first cargo of Eq Guinea crude

25/03/13

Dangote refinery buys first cargo of Eq Guinea crude

London, 13 March (Argus) — Nigeria's 650,000 b/d Dangote refinery has bought its first cargo of Equatorial Guinea's medium sweet Ceiba crude, according to sources with knowledge of the matter. Dangote bought the 950,000 bl cargo loading over 12-13 April from BP earlier this week, sources told Argus . Price levels of the deal were kept under wraps. Most Ceiba exports typically go to China. Around 18,000 b/d discharged there last year, while three shipments went to Spain and one to the Netherlands, according to Vortexa data. This year, two cargoes loading in February and March are signalling Zhanjiang in China, according to tracking data. Traders note that buying a Ceiba cargo is part of Dangote's efforts to diversify its crude sources. Last month the refinery bought its first cargo of Algeria's light sweet Saharan Blend crude from trading firm Glencore, which is due to be delivered over 15-20 March. Market sources said Dangote seems to have sourced competitively priced crude from Equatorial Guinea at a time when domestic grades are facing sluggish demand from Nigeria's core European market amid ample supply of cheaper Kazakh-origin light sour CPC Blend, US WTI and Mediterranean sweet crudes. Several European refineries are due to undergo maintenance in April, which is also weighing on demand. Nigeria's state-owned NNPC is currently in negotiations with the Dangote refinery about extending a local currency crude sales arrangement , which involves crude prices being set in dollars and Dangote paying the naira equivalent at a discounted exchange rate. Any changes to the terms of the programme may pressure Dangote to increase the amount of foreign crude in its slate. Refinery sources told Argus in January that Dangote will source at least 50pc of its crude needs on the import market and is building eight storage tanks to facilitate this. By Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria's port authority raises import tariffs

25/03/13

Nigeria's port authority raises import tariffs

London, 13 March (Argus) — The Nigerian Ports Authority (NPA) has raised tariffs by 15pc on imports "across board", taking effect on 3 March, according to a document shown to Argus . The move comes as the independently-owned 650,000 b/d Dangote refinery continues to capture domestic market share through aggressive price cuts, pushing imported gasoline below market value in the country. Sources said that Dangote cut ex-rack gasoline prices to 805 naira/litre (52¢/l) today, from between 818-833N/l. The rise in NPA tariffs may add on additional cost pressures onto trading houses shipping gasoline to Nigeria, potentially affecting price competitiveness against Dangote products further. The move would increase product and crude cargo import costs, according to market participants. But one shipping source said the impact would be marginal as current costs are "slim", while one west African crude trader noted that the tariffs would amount to a few cents per barrel and represent a minor rise in freight costs. Port dues in Nigeria are currently around 20¢/bl, the trader added. One shipping source expects oil products imports to continue to flow in, because demand is still there. Nigeria's NNPC previously said the country's gasoline demand is on average around 37,800 t/d. Over half of supplies come from imports, the country's downstream regulator NMDPRA said. According to another shipping source, Dangote supplied around 526,000t of gasoline in the country, making up over half of product supplied. The refinery also supplied 113,000t of gasoil — a third of total total volumes in the country — and half of Nigeria's jet at 28,000t. By George Maher-Bonnett and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US lube industry wary of tariffs uncertainty

25/03/13

US lube industry wary of tariffs uncertainty

London, 13 March (Argus) — The uncertainty around US tariffs could weigh on demand for finished lubricant and base oil, trade body ILMA told Argus . US President Donald Trump has decreed a 25pc tariff on steel and aluminium imports from Canada, a key import source for these materials used in auto manufacturing. The US sources about 70pc of its aluminium imports and around 23pc of its steel imports from its northern neighbour. ILMA chief executive Holly Alfano said the White House recognises that the uncertainty surrounding tariffs "creates a challenging business environment". "A slowdown in auto sales and production due to tariffs could lead to reduced demand for these products," Alfano told Argus. "Manufacturers may postpone investments or expansion plans due to unpredictable costs and market conditions," she said. "If vehicle prices rise due to increased production costs, consumer demand may decline, leading to further reductions in automotive output and associated lubricant consumption." Automotive vehicle production forecasts have fallen to 15.5mn in 2025 since the tariff announcement, down by 250,000 vehicles from the prior estimate by AutoForecast Solutions. This would put output broadly in line with 2024 , stifling growth in finished lubricant demand. US government data show car sales fell by 5pc in 2024, and finished lubricant sales dropped 6pc over the same period. Although lubricant sales are not entirely correlated with new car sales, Alfano noted the auto sector is "a significant consumer of finished lubricants". As it stands the tariffs on steel and aluminium will not now be implemented until 2 April. The White House has said this is to "allow for the flow of parts and sub assembly products into America, to allow American car manufacturers to continue building cars." The US administration is scheduled to host Canadian and Ontario officials today to discuss a possible easing in tariffs. If these talks yield no progress, and if a month is insufficient for supply chains to be reorganised, the tariffs could stunt automotive manufacturing and in turn lubricants needed for these new vehicles. Ontario premier Doug Ford has cautioned the 25pc tariffs could halt the auto manufacturing industry in as little as 10 days. While the US is self-sufficient in terms of its Group II base oils, it is a net importer of Group III, with only 4pc nameplate capacity, and both are key to automotive lubricant production. The US is an importer of Canadian Group III base oils from Petro-Canada's 4,000 b/d plant in Mississauga, Ontario. By Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA says trade tensions clouding oil demand outlook

25/03/13

IEA says trade tensions clouding oil demand outlook

London, 13 March (Argus) — The IEA today downgraded its global oil demand growth forecast for 2025, noting a deterioration in macroeconomic conditions driven by rising trade tensions. It sees a larger supply surplus as a result, which could be greater still depending on Opec+ policy. The Paris-based agency, in its latest Oil Market Report (OMR), sees oil demand rising by 1.03mn b/d to 103.91mn b/d in 2025, down from a projected rise of 1.10mn b/d in its previous OMR. The IEA said recent oil demand data have underwhelmed, and it has cut its growth estimates for the final three months of 2024 and the first three months of this year. US President Donald Trump has imposed tariffs on various goods arriving in the US from China, Mexico and Canada, as well as on all imports of steel and aluminium. Some countries have retaliated with tariffs of their own on US imports, raising the prospect of a full-blown trade war. The IEA said US tariffs on Canada and Mexico "may impact flows and prices from the two countries that accounted for roughly 70pc of US crude oil imports last year." But it is still too early to assess the full effects of these trade policies on the wider oil market given the scope and scale of tariffs remain unclear and that negotiations are continuing, the IEA said. For now, the IEA's latest estimates see US demand growth this year slightly higher than its previous forecast. It sees US consumption increasing by 90,000 b/d to 20.40mn b/d, compared with a projected rise of 70,000 b/d in the prior OMR. The downgrades to its global oil demand forecast were mainly driven by India and South Korea. The agency also noted latest US sanctions on Russia and Iran had yet to "significantly disrupt loadings, even as some buyers have scaled back loadings." The IEA's latest balances show global supply exceeding demand by 600,000 b/d in 2025, compared with 450,000 b/d in its previous forecast. It said the surplus could rise to 1mn b/d if Opec+ members continue to raise production beyond April. Eight members of the Opec+ alliance earlier this month agreed to proceed with a plan to start unwinding 2.2mn b/d of voluntary production cuts over an 18 month period starting in April. The IEA said the actual output increase in April may only be 40,000 b/d, not the 138,000 b/d implied under the Opec+ plan, as most are already exceeding their production targets. The IEA sees global oil supply growing by 1.5mn b/d this year to 104.51mn b/d, compared with projected growth of 1.56mn b/d in its previous report. The agency does not incorporate any further supply increases from Opec+ beyond the planned April rise. The IEA said global observed stocks fell by 40.5mn bl in January, of which 26.1mn bl were products. Preliminary data for February show a rebound in global stocks, lifted by an increase in oil on water, the IEA said. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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