Lyondell Houston refinery to run at 95pc in 2Q

Spanish Market: Biofuels, Crude oil, LPG, Oil products, Petrochemicals
26/04/24

LyondellBasell plans to run its 264,000 b/d Houston, Texas, refinery at average utilization rates of 95pc in the second quarter and may convert its hydrotreaters to petrochemical production when the plant shuts down in early 2025.

The company's sole crude refinery ran at an average 79pc utilization rate in the first quarter due to planned maintenance on a coking unit, the company said in earnings released today.

"We are evaluating options for the potential reuse of the hydrotreaters at our Houston refinery to purify recycled and renewable cracker feedstocks," chief executive Peter Vanacker said on a conference call today discussing earnings.

Lyondell said last year a conversion would feed the company's two 930,000 metric tonnes (t)/yr steam crackers at its Channelview petrochemicals complex. The company today said it plans to make a final investment decision on the conversion in 2025.

Hydrotreater conversions — such as one Chevron completed last year at its 269,000 b/d El Segundo, California, refinery — allow the unit to produce renewable diesel, which creates renewable naphtha as a byproduct.

Renewable naphtha can be used as a gasoline blending component, steam cracker feed or feed for hydrogen producing units, according to engineering firm Topsoe.

Lyondell last year said the Houston refinery will continue to run until early 2025, delaying a previously announced plan to stop crude processing by the end of 2023.

By Nathan Risser

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

10/05/24

Nigeria offers 12 oil blocks in 2024 licensing round

Lagos, 10 May (Argus) — Nigeria has offered 12 oil blocks in a new licensing round. It plans to complete it in tandem with a previous round for seven blocks that stalled following last year's change in government. The 12 blocks in the new round were carefully selected to attract international investors with financial resources and technical expertise and are spread across three geological terrains, upstream regulator NUPRC's chief executive Gbenga Komolafe said. Norwegian geophysical services company PGS, which is providing seismic data support for the licensing round, said two of the blocks on offer are onshore in the Niger delta, six are on the continental shelf and the other four are in deep water. The round will span nine months and conclude with ministerial consent and contracting in January 2025. Entry fees will be competitive as part of government measures to support the commercial viability of investments, according to Komolafe. "The era of front-loaded, huge signature bonuses is over," he said. Nigeria's oil minister Heineken Lokpobiri echoed Komolafe's point about minimal barriers to entry but noted that the round is designed to bind successful bidders to strict timelines, suiting investors that are "able to do exploration almost immediately". Lokpobiri also revealed that Nigeria plans to award licences for seven offshore blocks offered in a 2022 licensing round in tandem with the 2024 round. "The 19 oil blocks presented for bidding are strictly reserved for capable investors," he said. The round for the seven offshore blocks started in December 2022 and had been scheduled to be completed in May 2023. NUPRC said in April last year that the schedule had been pushed back to July because of concerns about concluding "the bid process before transition to the new government". President Bola Tinubu's administration took office on 29 May last year but progress on the 2022 licensing round stalled. Tinubu has set a target to raise Nigeria's crude production to 2.6mn b/d by 2027. The country's current target under the Opec+ agreement is just 1.5mn b/d. Nigeria started an international roadshow for the new licensing round in the US on 7 May in Houston, Texas, and the next stop is scheduled for Miami, Florida on 14 May. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan Airport Terminal, Euglena eye SAF supply chain

10/05/24

Japan Airport Terminal, Euglena eye SAF supply chain

Tokyo, 10 May (Argus) — Japan's biofuel producer Euglena and airport operator Japan Airport Terminal (JAT) plan to explore commercial delivery of sustainable aviation fuel (SAF) to aircrafts at Haneda airport in Tokyo. Euglena and Japan Airport Terminal signed an initial agreement on 8 May to build a commercial SAF supply chain at Haneda airport, aiming to ship up to 50,000 kilolitre (kl)/yr. This will account for 23pc of the 220,000 kl/yr SAF that Haneda airport will require in the future to attain Japan's 2030 SAF supply goal. Japan aims to replace 10pc of conventional aviation fuel consumption with SAF within the country by 2030. Euglena plans to procure SAF from its 12,500 b/d biorefinery in Malaysia that is expected to begin commercial operations in 2025. Euglena has co-operated with Malaysian state-owned energy firm Petronas and Italian energy firm Eni to build the plant. Euglena also issued its first ¥1bn ($6.4mn) green bond to Japan Airport Terminal for building the commercial biofuel manufacturing plant. Euglena is a producer of biofuel called Susteo, which contains used cooking oil (UCO) as well as euglena oils and fats extracted from microalgae as raw materials. Susteo generates CO2 during the fuel combustion stage but the plants, which are the raw material for UCO, and euglena microalgae absorb CO2 during photosynthesis as they grow. The company in 2022 provided Susteo to government aircraft . Japan's SAF demand is estimated to reach 1.7mn kl/yr by 2030, comprising 880,000kl for domestic flights and 830,000kl for international flights, according to the ministry of land, infrastructure and transportation. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

JG Summit shuts Philippine cracker on technical issues

10/05/24

JG Summit shuts Philippine cracker on technical issues

Singapore, 10 May (Argus) — The Philippines' sole cracker operator JG Summit shut its Batangas naphtha cracker on 9 May because of technical issues. The cracker, which can produce up to 480,000 t/yr of ethylene and 240,000 t/yr of propylene, is expected to restart this coming weekend, sources close to the company told Argus . It also shut associated units — a 70,000 t/yr butadiene extraction unit and an aromatics plant with nameplate capacities of 90,000 t/yr of benzene, 50,000 t/yr of toluene and 30,000 t/yr of mixed xylenes — along with the cracker. These are also expected to return this weekend. JG Summit is keeping its downstream units running by drawing feedstock from its inventories. The producer has a 320,000 t/yr linear-low density polyethylene/high-density polyethylene (HDPE) swing plant, a 250,000 t/yr HDPE unit and a 300,000 t/yr polypropylene line at the same site. By Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Enchentes no RS: 3tentos diminui perspectiva para soja

09/05/24

Enchentes no RS: 3tentos diminui perspectiva para soja

Sao Paulo, 9 May (Argus) — A empresa de agronegócio 3tentos reduziu suas perspectivas da safra de soja para esta temporada devido às enchentes que assolam o Rio Grande do Sul. Parte importante das operações da 3tentos está sediada no estado, segundo maior produtor de soja do país, que enfrenta fortes chuvas desde 29 de abril. As enchentes já mataram 107 pessoas, segundo a Defesa Civil. Como resultado, a safra de soja do Rio Grande do Sul pode cair para 20 milhões t-21 milhões de t, ante 23 milhões t-24 milhões de t previstas anteriormente, de acordo com o presidente da 3tentos, Luis Osório Dumoncel. Pelo menos 80pc da soja colhida este ano está armazenada em armazéns ou portos. "Temos trabalhado incansavelmente para manter todas as operações de fornecimento de insumos, grãos, rações e biocombustíveis", disse o executivo durante teleconferência de resultados trimestrais. A companhia vê um "pequeno risco" para suas cadeias de oferta de pesticidas, sementes e fertilizantes, devido às inundações. Do lado logístico, rotas alternativas de exportação também têm sido utilizadas para escoar produtos como o farelo de soja, explicou o diretor operacional João Marcelo Dumoncel. Resultados do 1º tri As vendas da 3tentos no primeiro trimestre atingiram R$2,68 bilhões, alta de 48,5pc em relação ao mesmo período do ano anterior, impulsionadas pelos segmentos de indústria, biodiesel e farelo de soja. O segmento industrial, o maior da empresa, foi responsável por R$1,52 bilhão em vendas, subindo 69pc na base anual. As receitas de farelo de soja e outros produtos totalizaram R$927,6 milhões, 72pc acima do primeiro trimestre de 2023. As vendas de biodiesel aumentaram 64pc, para R$591 milhões, graças à elevação do mandato de mistura do biocombustível de 12pc para 14pc desde março. "Temos certeza de que a operação de biodiesel ajudará na margem da empresa neste ano", contou Dumoncel. As margens de esmagamento de soja da empresa cresceram 3,3pc no trimestre, fixando-se em R$ 442/t, fortelecidas pela produção de biodiesel. As vendas de grãos da 3tentos avançaram quase 27pc, para R$560 milhões. As receitas no segmento de matérias-primas agrícolas — como fertilizantes, pesticidas e sementes — alcançaram R$601 milhões no primeiro trimestre, salto de 35pc na variação anual. No período, a receita da companhia totalizou R$156,44 milhões, aumento de 51pc. A 3tentos também iniciou a construção de sua primeira unidade de moagem de milho para produção de etanol e grãos secos de destilaria (DDG, na sigla em inglês). A empresa concluiu esta semana a emissão de títulos de dívida no valor de R$560,73 milhões. Por Alexandre Melo Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Logistics, water access key for Braskem hub restart

09/05/24

Logistics, water access key for Braskem hub restart

Orlando, 9 May (Argus) — Brazilian petrochemical giant Braskem's plants at the Triunfo petrochemical hub have come to a standstill because of logistical and water access issues and the uncertainty surrounding when water levels will subside. Braskem had to shut down all of its operations in Rio Grande do Sul state after extreme flooding in recent days, but said its polymer inventories are safe and protected from the damage caused by heavy rainfall at its operations in southern Brazil during the past two weeks. At least 428 cities and 1.5mn people have been hit by the floods. So far, there are 107 confirmed deaths and 136 people missing, according to the state's last emergency service report. There has been no permanent damage to the industrial facilities, Braskem said today in an earnings call. But critical water intake and effluent treatment systems are submerged, rendering them inoperable. Additionally, the Santa Clara River terminal, which was preemptively closed by the local port authority, has also been flooded. "We can only assess the situation and evaluate losses once the water recedes," Braskem's chief financial officer Pedro Freitas said during the company's first quarter earnings call. Freitas said that part of the production of basic resins, such as polyethylene (PE) and polypropylene (PP), will be offset by increased production in other Brazilian states or in Mexico. Braskem has been operating under its nameplate capacity. The situation is different at Braskem's 260,000 t/yr bio-based PE plant. There is stock available abroad, as the majority of this product is earmarked for export, Freitas said. 1Q production and sales Braskem's domestic resin sales fell by 5pc in the first quarter from a year prior, with volumes also falling in the US and Europe but growing in Mexico. Domestic sales declined on the company's decision to prioritize sales with higher added value in the period, Braskem said in its preliminary first-quarter production and sales report. Domestic resin sales fell to 839,000 metric tonnes (t) in the first quarter, from 884,000t a year earlier. On the other hand, the company's Brazil resin sales rose by 7pc from the prior quarter on higher demand for polyethylene (PE) and polypropylene (PP) because of inventories rebuilding in the supply chain. In Mexico, polyethylene (PE) sales through the Braskem Idesa joint venture rose by 6pc to 209,000t in the period, primarily because of the higher availability of products for sale in the period. Sales rose by 17pc from the fourth quarter of 2023 mainly thanks to seasonality and replenishment of PE stocks in the fourth quarter of 2023. First quarter polypropylene (PP) sales hit 508,000t, according to consolidated numbers for the US and Europe. That is a 2pc drop from a year earlier and down by 1pc from the previous quarter. The declines are mainly because of better handling of inventory, which partially offset the lower availability of products for sale in the US thanks to an unscheduled shutdown in the region. Braskem reported a $270mn loss in the first quarter, swinging from a profit of $46.9mn in the same period last year, largely because of additional provisions related to the Alagoas state geological event . By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more