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You can unsubscribe from these updates at any time. We manage your personal data in accordance with our privacy policy.Oneok's Mont Belvieu, Texas, fractionator and related facilities did not sustain significant damage from now tropical storm Harvey, the Tulsa-based midstream operator said today.
Some of Oneok's pipelines and other assets in the area are operating at reduced rates because of the limited ability of customers to accept NGL volumes after the storm. Production of NGLs upstream of the pipelines continue at normal rates, Oneok said.
Osaka, 24 December (Argus) — Japanese utility Tokyo Electric Power (Tepco) plans to reactivate its long-idled 1,356MW No.6 reactor at its Kashiwazaki-Kariwa nuclear power plant on 20 January 2026, with the aim of beginning normal operations on 26 February. On 24 December, Tepco submitted the potential target dates for resuming tests and normal operations of the reactor in Niigata prefecture, northwest Japan, to the country's Nuclear Regulation Authority (NRA). Tepco will assess the reactor's integrity during the test runs. The submission came two days after the Niigata prefectural assembly passed a vote of confidence on its governor Hideyo Hanazumi on 22 December, who had sought the assembly's judgement on his plan to approve the restart of the No.6 and No.7 reactors at the Kashiwazaki-Kariwa. The return of the Kashiwazaki-Kariwa plant could be a milestone in Tepco's progress in nuclear power generation after the Fukushima nuclear crisis in 2011, with the No.6 unit marking the utility's first reactor to be restarted after the meltdown disaster. The Kashiwazaki-Kariwa plant comprises of seven reactors with a combined capacity of 8,212MW, of which the No.6 and No.7 units have cleared the stricter post-Fukushima safety inspections. The No.7 unit will be required to remain shut until August 2029 for the installation of anti-terrorism facilities. Tepco has yet to file an application with NRA for screening of the five other reactors, while it is mulling scrapping the No.1 and No.2 reactors. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Tokyo, 24 December (Argus) — Japanese petrochemical producers Sumitomo Chemical and Prime Polymer have finalised their contract to integrate Sumitomo's polyolefin production businesses with Prime Polymer, aiming to enhance the competitiveness of their polyolefin businesses. Prime Polymer — a joint venture between petrochemical firm Mitsui Chemicals and refiner Idemitsu — will merge Sumitomo's domestic polypropylene (PP) and linear low-density polyethylene (LLDPE) businesses on 1 July 2026, the companies said on 24 December. Sumitomo's PP and LLDPE production-related assets will be integrated into Prime Polymer later on 1 April 2027, as the system integration will take some time after the business merger, the companies said. After the integration, Prime Polymer will have a production capacity of 1.59mn t/yr for PP and 720,000 t/yr for PE in Japan. Mitsui will hold a 52pc share in Prime Polymer and Idemitsu will have 28pc, with Sumitomo newly acquiring 20pc in exchange for the integration of its polyolefin businesses into Prime Polymer. Currently Mitsui and Idemitsu hold a 65pc and 35pc share in Prime Polymer respectively. Prime Polymer has a production capacity of 1.26mn t/yr for PP and 550,000 t/yr for PE in Japan currently. Demand for domestically produced polyolefins will continue to decline because of shrinking domestic demand, population decline and changing lifestyles, the companies said. The companies aim to optimise their polyolefin businesses and achieve annual cost savings of over ¥8bn/yr ($51mn/yr) through this business integration. Idemitsu, Mitsui and Sumitomo first announced this integration plan in September. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mumbai, 24 December (Argus) — India's LNG imports are likely to get pricier in 2026 on the back of a rising number of mid-term LNG supply deals that are linked to the US benchmark Henry Hub, at a time when spot prices have declined sharply. A total of 2.95mn t of LNG supply deals, making up 12pc of India's total LNG import volumes of 25mn t/yr is at risk of being pricier over crude-linked LNG deals, domestic gas prices, as well as the volatile spot market, especially when the domestic currency has reached its all-time low of 90 rupees against the dollar. India's LNG imports are expected to fall by 6pc on the year to 25mn t in 2025, predictive volumes from market intelligence firm Kpler show. Indian companies seeking to ensure domestic gas needs for downstream units are met and to better manage their risks signed a spate of LNG deals linked to US Henry Hub gas prices in late 2024 and in early 2025, in a bid to diversify their supply portfolios. Contracts linked to Henry Hub prices were seen as a stabilising anchor to reduce dependency on crude-linked contracts and spot prices. Supplies under contracts linked to Henry Hub prices have already begun weighing on city gas distributors in 2025, especially since they sought to increase their Henry Hub-linked supply, after the government slashed their allocation of domestic gas production in October 2024, and because of highly volatile spot LNG prices in recent years. India state-run refiners IOC, HPCL and BPCL each have 400,000 t/yr of LNG supply deals that are linked to Henry Hub prices. These supplies have already been arriving at Indian ports in 2025 , but are intended for consumption at their own refineries. State-owned Gujarat State Petroleum and private-sector Deepak Fertiliser will begin receiving their supplies from 2026. Nymex futures for delivery at the Henry Hub have increased because of stronger US domestic and export demand, coupled with lower oil prices reducing the outlook for associated gas production. This is translating into much higher costs for Indian buyers. The delivered price of LNG in Henry Hub-linked contracts in 2026 for city gas firms is expected to average at $13.40/mn Btu, while state-controlled gas distributor Gail's Henry Hub-linked import price is at around $12.80/mn Btu, based on Argus forward curves of the US benchmark. These prices are higher than that of domestic gas from conventional fields, at $6.55/mn Btu, imported LNG under crude-linked contracts, at $8.80/mn Btu, and domestic gas from high-pressure, high-temperature fields, at $9.72/mn Btu, oil ministry data show. Argus -assessed spot LNG prices for deliveries to west India are averaging at $11.90/mn Btu for 2025, marginally higher from $11.10/mn Btu in 2024. Under stress Two city gas firms that buy their supplies from state-controlled gas distributor Gail have switched part of their portfolio to Henry hub indexation. India's largest city gas distribution company, Indraprastha Gas (IGL), has close to 20pc of its total gas portfolio linked to the Henry Hub, while Mumbai-based Mahanagar gas has close to 30pc exposure, according to their respective quarterly earnings calls. But IGL and Mahanagar recently warned that their margins are coming under pressure because of higher procurement costs under their US contracts. Rising Henry Hub prices and a depreciation of the rupee against the dollar are squeezing margins, which has been exacerbated by the reduced government allocation of cheaper, domestic gas, IGL said in its November earnings call. IGL had previously expressed confidence in Henry Hub-linked contracts because they offered lower volatility. "Unless Henry Hub goes way beyond our target, it should remain competitive," IGL said in April. But the firm has faced a different reality in recent months. Gail force Gail's lower Henry-Hub-linked import price may be because it has opted for back-to-back indexation that guarantees margins, instead of pursuing arbitrage opportunities between Henry Hub-linked import costs and crude-linked sales contracts. City gas firms pay Gail a $6/mn Btu fixed premium on top of 119pc of Henry Hub prices, while Gail's import formula from state-owned Qatar Energy is 115pc of Henry Hub plus a fixed $5.66/mn Btu — intended to reduce price risks for Gail. Given the interplay between oil and gas prices in the US, a rally in crude prices can support revenue from downstream oil-linked contracts while at the same time weigh on Henry Hub-linked import costs. Conversely, weaker crude prices can swiftly erode margins, with a potentially significant impact on cash flows. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Houston, 23 December (Argus) — With 2mn t/yr of new US polyethylene (PE) capacity set to start up in the second half of 2026, pricing power may stay in domestic buyers' hands for much of the year, particularly if producers struggle to find homes for the new resin. Golden Triangle Polymers, a joint venture between Chevron Phillips Chemical and QatarEnergy, is expected to start up 2mn t/yr of high density polyethylene (HDPE) capacity in Orange, Texas, by the middle of next year, aimed almost entirely at the export market. While the US remains a low-cost producer, the new volume will have to compete with growing global supply, including around 4mn t/yr of new PE capacity projected to start up in Asia in 2026. With the key China market becoming more self-sufficient, it may be difficult for the global market to absorb the new capacity. There are some potential bright spots for US producers in the global market, including the potential for a free-trade agreement with the EU, which would further open up EU countries for more US volume. But if enough new export destinations are not found, market participants have said material will back up in the US/Canada domestic market, keeping supplies loose, and making it difficult for producers to raise domestic contract prices. As new PE capacity has been added in the US, the percentage of sales going to exports has continued to rise. In 2022 — prior to the start-up of more than 3.3mn t/yr of new capacity from Shell, Baystar, Nova and Dow that took place from 2023 through 2025 — total exports averaged 39pc of total sales, according to data from the American Chemistry Council (ACC). In 2025, year-to-date through November, exports averaged 48pc of total sales. New capacity is one factor that can cause export prices to decline, as supplies increase in the market. As an example, Dow started up its new 600,000 t/yr HDPE/LLDPE swing unit in Freeport, Texas, in June 2025, with the full ramp-up beginning in July. From July through 12 December, US LLDPE butene export prices declined by around 18pc. Over the same period, US/Canada contract prices held steady every month from July through November, with expectations that December contracts also may settle flat as three US producers have not announced an increase for the month. There were a variety of reasons for the flat contract pricing in the second half of 2025, including weak domestic demand. But one main factor was plentiful supply, and low export prices, as US/Canada producers fought for market share in the global market. "[The US] is so over-supplied," said one US PE buyer. "The economic factors are in the buyers' favor right now." For January, most US/Canada producers have announced price increases of between 5-7¢/lb. Suppliers are expected to push hard for a price increase in January, with many market participants expecting some level of a price increase to stick in the first quarter. But with little expectation for improved demand in 2026, buyers, distributors and traders said they expect the market to remain well-supplied, which will make it difficult for further contract increases. "I think we will continue in a buyers' market for a couple more years," said one US trader. Producers are wary about global oversupply, but believe there will be some additional capacity rationalization in other regions that will help create more export opportunities. Geopolitical events such as the Ukraine-Russia conflict, Venezuela embargoes, trade tariffs, and anti-dumping duties have contributed as well to a volatile market for finished goods that could also limit demand growth next year. Low ethane/ethylene prices also contribute to lower PE prices but this downward trend is expected to change as US olefins exports increase in 2026, resulting in a more balanced supply/demand market. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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