CREON Energy Asia

19/08/2020

The government of Perm Krai signed an agreement with 𝗖𝗿𝗲𝗼𝗻 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 and 𝗖𝗿𝗲𝗼𝗻 𝗘𝗻𝗲𝗿𝗴𝘆 𝗔𝘀𝗶𝗮 (parts of the 𝗖𝗥𝗘𝗢𝗡 𝗚𝗿𝗼𝘂𝗽) to develop a special economic zone (SEZ) in the region. For 49 years, a favorable tax regime will operate on its territory: full exemption from paying taxes on land, property, transport and a minimal income tax at 2%. These measures are intended to shorten the investment cycle, reduce the payback period and increase margins of companies.
“𝗖𝗥𝗘𝗢𝗡 𝗚𝗿𝗼𝘂𝗽 has an immense experience in attracting international funding to Russian petrochemical and energy projects including renewable energy. And we are glad that the key partner in this project is SIBUR, a leader of Russian petrochemical industry”, said 𝗙𝗮𝗿𝗲𝘀 𝗞𝗶𝗹𝘇𝗶𝗲, Chairman of the Board of 𝗖𝗥𝗘𝗢𝗡 𝗚𝗿𝗼𝘂𝗽.
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#особаяэкономическаязона

The Government of Perm Krai, Creon Capital and Creon Energy Asia (both companies are part of the CREON Group) signed the agreement to develop a special

18/08/2020

The Russian polymers industry is least affected by the coronavirus pandemic. Participants in the polyethylene market believe that integrally COVID-19 provided a kind of support by increasing the demand for disposable plastic products. 𝗖𝗥𝗘𝗢𝗡 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗼𝗻𝗶𝘁𝗼𝗿 team spoke to the leading PE market players about the current situation in the industry and their plans for the second half of the year.
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#полиэтилен

The Russian polymers industry is least affected by the coronavirus pandemic. Participants in the polyethylene market believe that integrally COVID-19 provided a kind of support by increasing the demand for disposable plastic products. CREON Group spoke to the leading PE market players about the curr...

07/08/2020

CREON Group and 𝗖𝗥𝗘𝗢𝗡 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 jointly with WWF Россия and the National Rating Agency (NRA) have started working on VII Annual Transparency Rating of Environmental Responsibility assessment of oil and gas enterprises. Companies are evaluated against 30 criteria, and the assessment method is improved every year. This year the focuses are on industrial accidents and open public oversight.
The 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 rating promotes the green economy, decarbonization and environmental responsibility of enterprises in Russia and CIS countries. This makes companies not only environmentally sustainable, but also more reliable and attractive to international investors.
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#ЗдравыйСмысл

CREON Group, WWF-Russia and the National Rating Agency (NRA) with the support of the United Nations Environment Program (UNEP), and with the participation of the WWF's People for Nature project, funded by the European Union, have begun to calculate the annual environmental transparency rating of oil...

18/06/2020

The mineral fertilizers industry in Russia remains healthy despite economic downturn worldwide.
Supplies to local market are much higher compared to last year; export is steady; new production capacities are planned.
CREON Group has conducted a survey of Russian fertilizer producers, available in this week's Market Monitor:
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The mineral fertilizer industry has overcome the peak of the coronavirus pandemic with confidence due to sustained demand in almost all key markets. Russian

15/06/2020

Eugeny Schwartz, a well-known Russian environmentalist and independent non-executive director of steel companies, commented on the emergency situation in Norilsk for “Rational Approach” project. He said:
• Climate change affects the Arctic most
• International investors and presence on world exchanges help Russian companies to increase responsibility to environmental safety
• To increase safety and sustainability further, industrial enterprises have to participate in environmental ratings and collaborate with local environmental organizations.
Watch video for more details.
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Известный эколог и независимый неисполнительный директор металлургических компаний Евгений Шварц прокомментировал для проекта «Здравый смысл» чрезвычайную си.....

11/06/2020

The most effective way to deal with environmental disasters is to prevent them.
Svetlana Radionova, head of Russia’s environmental control Rosprirodnadzor discussed the environmental disaster in Norilsk with media. After depressurization of the oil storage facility at the TPS-3 power plant controlled by Norilsk Nickel, 21 thousand tons of diesel fuel spilled into the environment and water ponds of the Arctic - this is approximately 400 tank wagons.
According to Rosprirodnadzor estimates, the scale of pollution is very considerable, and the audited production facilities were in poor technical condition. The time-frame for the elimination will be delayed: 14 days previously referred to are only the first phase. According to Radionova, the whole process will last much longer and will continue "until nature is completely cleansed". And ensuring actual environmental safety in the region will be possible only after profound modernization of all defense stores.
Radionova noted that the owners of steel companies have been spending money for many years on anything, but not on modernization. The department has poor contact with steel producers. At the same time, Radionova praised the oil companies that are much more attentive to and compliant with regulatory requirements.
The environmental transparency of oil and gas companies that has grown in recent years and their compliance with regulatory requirements, are also the result of our joint work. Since 2014, the CREON Group and WWF России have been compiling an Environmental Transparency Rating for oil and gas companies, not only evaluating the environmental responsibility of the largest oil and gas enterprises in the post-Soviet countries, but also their safety and efficiency.
We are sure that after the Norilsk accident business attention to the environment and ESG-factors of sustainable development will multiply. And we hope that still companies are ready for change.
https://www.zs-rating.ru/
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#здравыйсмысл

11/06/2020

PET plastic products became demanded during the COVID-19 pandemic, primarily due to the explosive demand for PPE and disposable packaging. In March and April, growing demand for polymer packaging reached 15-20%.
𝗖𝗥𝗘𝗢𝗡 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗼𝗻𝗶𝘁𝗼𝗿 provides new PET market overview where manufacturers share their observations of market changes and fluctuations. The main trends are mainly due to the pandemic situation: the demand for larger containers, plastic packaging for food, PPE and pharmaceuticals. Fluctuations in demand have led PET companies to look for cheaper raw materials. Read the full version on our website: creon-group.com
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Russian PET market will be discussed in detail at the “Plastics of Russia 2020” conference in Moscow, 24 November (Program and registration).

29/05/2020

RIAC, a leading Russian think-tank, is holding a series of round tables devoted to changes that COVID-19 is bringing into relations between the economies. CREON participates, and sees new business opportunities opening up despite the political contradictions globally. The key points to focus include changes in trade and investment, relocation of production, and green transition.
Fares Kilzie, head of the Group, has published his input into discussion:
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Future Russia-EU relations must be built pragmatically, evaluated the future of hydrocarbon supplies from Russia to the EU in the transition to a green economy.

22/05/2020

CREON Group conducted a study of the waste recycling market in Russia and shares its results in 'CREON Market Monitor'.
Today's issue is titled 'Waste management: drop in payments, lack of capacity'
https://creon-group.com/waste-management-en
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A fundamentally new waste management system was launched in Russia in 2019. It was aimed at eradicating unauthorized landfills and encouraging new waste recycli

04/05/2020

𝗥𝘂𝘀𝘀𝗶𝗮𝗻 𝗛𝗲𝗹𝗶𝘂𝗺 𝗺𝗮𝗿𝗸𝗲𝘁 𝘁𝗼 𝗿𝗲𝗰𝗼𝘃𝗲𝗿 𝗶𝗻 𝟮𝟬𝟮𝟭

Global and Russian helium markets are shrinking. Producers and consumers are concerned with complexity of project logistics, decline in the entertainment segment, lower consumption, and price hikes. How will the price of helium change, and is shortage to be expected? Will COVID-19 pandemic affect the timeline of new projects? CREON interviewed the market experts about the consequences of COVID-19 for the helium market, and their estimates of how long could the recession last.

The helium market is no less volatile than the oil market. Over the years, the market players have overcome challenges including shortage, overproduction, embargo and price drops. With regard to the ongoing crisis, the experts interviewed by CREON believe that a healthy balance of supply and demand can recover by mid-2021, when new production is launched at Gazprom and INK projects as planned.
At the moment, however, the situation remains complex. The local helium market became tighter back in March, when trading price surged by 60% in a session, reaching 2,335 rubles (ca. $34) per cubic meter. As soon as pandemic reached Russia, the trading volumes fell, and the price returned to almost old levels. In parallel, the Orenburg helium plant shut down for scheduled maintenance, and the market has stabilized for now.
«The global demand for helium will fall by 20-25% this year compared to previous period», says Deepak Mehta, CEO at Global Gases Group, one of the world’s leading suppliers of industrial gases. According to a supplier of helium to the Siberian Federal District, «the optimistic forecast is that the helium market will recover by winter 2020 or even by February 2021 at the earliest».
Another large producer believes that the 2nd quarter of 2020 will be the most difficult. «Gradual recovery in helium demand could begin in the third and fourth quarters this year, while the pre-crisis level could be reached by around mid-2021. However, the entertainment segment of consumption may not recover at all», the expert thinks.

Entertainment segment held up to 10% of the market

Social restrictions and a ban on entertainment activities have already reduced the volume of the global helium market by 10%. «Helium for balloons was our premium sales segment before quarantine», says a Director of industrial gases supplier company. «Now all the sales are at zero, and obviously no demand for entertainment helium until the end of the year».
Apart from lower demand, market participants are seeing logistics problems and nontransparency of regulation at the regional level in Russia. «In some regions transport is allowed to pass, in some regions it is not», says supplier of technical and medical gases for MRI scanners. «The market has shrunk as logistics is restricted amid quarantine: some are waiting for the borders to re-open, while some are using bypass roads», says a representative of another company.

Equipment Suppliers make profit

The situation is better for industrial equipment suppliers. «Helium projects are the most profitable for us now, and keep us afloat. Our customers are large projects only, we do not supply to the entertainment companies, so probably that is why we manage to work now», says a representative of the plant. Similar views are expressed by companies servicing large projects in the Eastern Siberia: component producers, equipment and tow car suppliers.

Healthcare can make a difference

Experts interviewed by CREON noted a slight increase in consumption in the medical segment caused by government contracts for supply and refueling of MRI scanners . «Production has seized, we are serving only orders from hospitals, have been forced to suspend other projects», - another source in the industry commented. A supplier in the Ural Federal District also noted a drop in sales and a decrease in helium price: «Yes, the demand is down, we had to decrease helium price. Now we survive mainly at the expense of cylinder oxygen and government orders».
At the same time, the Moscow-based Sklifosovsky Ambulance Research Institute is conducting research on the use of helium for treatment of lung problems caused by COVID-19. Since late April, the Institute has been successfully testing helium-oxygen mixture for lung ventilation and reporting positive results.

“We at CREON have been following the Helium market for many years, and are witnessing dramatic changes now. On the supply side, the producers continue to carry out planned projects, while the demand has dropped significantly. However, there are certain developments in Helium consumption for healthcare; new growth points are possible there”, says Nikolai Asatiani, CEO of CREON Energy Asia, the Singapore subsidiary of CREON Group.