Unilever uses carbon emissions to make detergent

Market: Petrochemicals
23/04/21

Global fast-moving consumer goods firm Unilever has created laundry capsules produced using industrial carbon emissions instead of being directly manufactured from fossil fuels.

The creation of the product under its laundry detergent brand OMO in China is the result of a collaboration with LanzaTech, a China-based carbon recycling petrochemical producer that specializes in gas fermentation, along with petrochemical producer India Glycols.

Lanzatech first produces ethanol using industrial carbon emissions as feedstock at its Beijing Shougang LanzaTech plant in China. This process reduces greenhouse gas emissions by 82pc when compared with the use of fossil fuels, according to the company. India Glycols then converts the ethanol into ethylene oxide, a key feedstock to make surfactants at its site in India. Unilever then uses the surfactants in manufacturing the laundry capsules in Hefei, China.

The new capsules launched in China on 22 April on the same day as World Earth Day. The product comes at no extra cost to consumers, according to Unilever.

The process is part of Unilever's 2020 commitment to eliminate the use of fossil fuels in its cleaning and laundry products by 2030. Unilever also committed to halving its virgin plastic use by 2025 and is aiming for net-zero carbon emissions from all its products by 2039.

Unilever also launched recyclable dishwashing polyethylene packaging in Europe earlier this month to provide more sustainable solutions to meet increased demand for flexible packaging.

By Matthew Rajendra

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17/06/25

Keyera acquiring Plains' Canada NGL assets for $3.75bn

Houston, 17 June (Argus) — Midstream operator Keyera will acquire Plains All American's Canadian natural gas liquids (NGLs) business for C$5.15bn ($3.75bn). The transaction, which is expected to close by the first quarter of 2026, includes 193,000 b/d of fractionation capacity in western Canada, more than 1,500 miles of pipelines gathering 575,000 b/d of NGLs, 23mn bl in NGL storage capacity, and the 5.7 Bcf/d Empress straddle gas processing plant. The acquisition is expected to deliver C$100mn of annual synergies between the assets in the first year, according to Keyera. Plains said the divestiture will allow the US-based midstream operator to focus on its crude handling assets in both the US and Canada. Plains will keep nearly all of its NGL assets in the US. The acquisition of Plains' assets gives Keyera NGL fractionators and gas processing plants in Fort Saskatchewan, and at the Empress facility in western Canada as well as storage at Sarnia, Ontario. It also links Keyera's existing assets to takeaway agreements for LPG exports out of British Columbia. Keyera chief executive Dean Setoguchi said the acquisition "... brings key infrastructure under Canadian ownership, keeping value and decision-making closer to home." Plain's Canadian business is underpinned by fee-based contracts with an average remaining life of 10 years, Keyera said. Associated NGL production in Canada is expected to grow by 500,000 b/d by 2040, according to Keyera, as natural gas production in western Canada climbs by 6 Bcf/d during the same timeframe. By Amy Strahan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Borealis not reviewing assets in Europe: CEO

12/06/25

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12/06/25

Borealis not reviewing assets in Europe: CEO

London, 12 June (Argus) — Austria-based petrochemicals producer Borealis is not conducting any asset reviews in Europe despite prolonged weakness in the region's polyethylene (PE) and polypropylene (PP) markets, chief executive Stefan Doboczky told Argus . "It's not that we would never look into something," Doboczky said. But "none of our major installations [in Europe] I would say are being a real problem, they are all contributing [to profitability]." Doboczky acknowledged that "Europe will never be the cost leader". But "there are strong differences between the economics of crackers and the polyolefin systems", he said. "If you look at our more coastal setups, we are much more flexible than certain steam crackers would be inland." Borealis' coastal steam crackers in Porvoo, Finland, and in Stenungsund, Sweden, have greater flexibility to run lighter feedstocks and optimise product yields. Their location also allows for easier feedstock procurement via vessel, Doboczky said. Borealis will continue to bring polyolefins into Europe from its sister plants in the Middle East and North America, which have advantageous positions on feedstock and production costs. Doboczky's comments follow Netherlands-based LyondellBasell's announcement last week that it plans to divest four European olefins and polyolefins plants to focus on "economically sustainable sites". The European petrochemicals sector has faced mounting pressure from weak demand and high costs, prompting several producers to review or close assets. Saudi Arabia's Sabic is also understood to be assessing its European footprint, although details remain limited. Borealis, by contrast, is pursuing a differentiation strategy focused on downstream expansion. Last week, it announced a €100mn ($114mn) investment to triple PP foam production capacity at its Burghausen site in Germany. The firm has 650,000 t/yr of PP production capacity at that site. "We are very much focused on investing in smaller units, in the €50mn-100mn space to gain a strong share in a particular niche," Doboczky said. This is in addition to around €2bn of overall capital expenditure already committed in Europe for new projects. "Borealis has no alternative to this [polyolefins] business," Doboczky said, adding that the company will continue to focus on specialty, high-end applications rather than volume-driven segments. It also has a notable presence in the downstream compounding sector, which uses part of its PE and PP resin output. Demand outlook Borealis expects 2025 demand to be broadly in line with 2023-24 levels, although it could vary by grade and segment. "We see too much volatility at the moment and I think we need to see how the world looks like after 9 July," Doboczky said, referring to the 90-day tariff pause on US imports. "The general sentiment that PP is even more difficult, I would subscribe to that." PP demand has been hit harder than PE, given its exposure to big-ticket consumer goods and the automotive segment, both of which have been affected by cost-of-living pressures. Construction demand is also under pressure due to economic headwinds and high financing costs. For the time being, Borealis continues to see offtake from the automotive segment within its expected range, owing to a larger share of electric vehicle production, which uses a higher proportion of PP to offset battery weight. The company is also targeting growth in rigid and flexible packaging through increased innovation. Project updates Earlier this year, OMV and Adnoc agreed to merge Borealis and Borouge into a new entity, Borouge Group International, which will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange. The move coincided with the acquisition of Canada-based Nova Chemicals by the new entity. Borealis is constructing a 750,000 t/yr propane dehydrogenation (PDH) plant in Kallo, Belgium, which is scheduled to come online in the second quarter of 2026. The Borouge 4 project in Abu Dhabi is on track to start up ethylene and PE production in late 2025 or early 2026, Doboczky said. By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Ethane rejection concerns heighten on export block

06/06/25

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06/06/25

Ethane rejection concerns heighten on export block

Houston, 6 June (Argus) — US traders and gas producers are mulling over the implications of higher rates of US ethane rejection as the indefinite curtailment of US ethane cargoes to China spurs fears of a supply glut of the feedstock. Exporters Enterprise Products and Energy Transfer , the only waterborne exporters of US ethane, announced on 29 May and 4 June, respectively, that the US Commerce Department's Bureau of Industry and Security (BIS) had ordered them to apply for licenses to export ethane to China. On 4 June, Enterprise reported that emergency license applications for three of its cargoes, totaling 2.2mn bl, had been denied . "News that the [BIS] doesn't intend to issue ethane export permits suggests an increasingly dire situation," said one market participant. US ethane inventories stood at 63.9mn bl in March, the latest data available from the US Energy Information Administration (EIA), up 9.8pc versus last year, when supplies totaled 58.2mn bl. The US produced 2.83mn b/d of ethane from natural gas processing in 2024, according to annual data from the EIA, resulting in a surplus of 500,000 b/d over its domestic petrochemical consumption. Nearly all of this excess is exported, and about 46pc of shipments last year, or 227,000 b/d, went to China. Large-scale exports of the feedstock, which is used in ethylene production at steam crackers, are relatively new. Waterborne exports of ethane began in 2016, and until that time, excess supply that wasn't profitable to fractionate and pipe to storage caverns at Mont Belvieu, Texas, were rejected upstream at processing plants into the natural gas stream. Midstream operators estimated that US ethane rejection clocked in around 500,000 b/d in 2015, when the US produced a little more than a third of the ethane it does today at 1.13mn b/d and consumed only 1.07mn b/d domestically. Some analysts fear higher rates of US ethane rejection going forward could depress natural gas prices. "The recently announced ethane export restrictions to China have raised some concerns over a potential oversupplied domestic market, which could lead to more ethane rejection and create near-term price pressures," on natural gas, RBC Capital Markets analyst Scott Hanold said in a note to investors. An uptick in ethane left in the gas stream also pushes gas operators to potentially contend with a higher calorific content. Natural gas producers have been investing in additional pipeline capacity to accommodate growing demand for LNG exports, however, and the infrastructure is more flexible now than it was back in 2016. "The US exports approximately 250,000 b/d of ethane to China, and that's about 0.4bn cf/d of ethane that would need to be rejected into the US natural gas system," according to Craig Barry, Argus ' lead ethylene consultant. "That should be manageable for US producers, especially as new natural gas egress pipelines come online in the second half of 2025 and into 2026." Short-term pricing From 28 May to 5 June, prompt-month Mont Belvieu, Texas, EPC ethane fell by 19.4pc to 19.25¢/USG, its lowest point since 13 November. Ethane's differential to its fuel value relative to Nymex natural gas at the Henry Hub turned negative on 29 May and remained negative thereafter, troughing at -5¢/USG on 4 June, the steepest discount since 15 December 2022. A flip to rejection by gas producers is typically indicated when ethane enters negative territory relative to its fuel value in spot natural gas in the Permian. Ethane's premium to spot gas prices at the Waha hub in west Texas declined from 12.37¢/USG to 9.4¢/USG across the period, and if Waha prices remain steady, ethane prices would need to halve to enter rejection territory in the Permian. Major operators may also be incentivized, however, to reject ethane into the gas stream at greater rates if prices fall below spot gas on the US Gulf coast, according to market participants, and would need to dip below a milder 17.375¢/USG to turn negative relative to its fuel value in Houston Ship Channel gas, which it sits at its tightest premium to since 4 March at 1.88¢/USG. Steep declines in prompt-month ethane pricing have widened the contango seen along the forward curve, possibly reflecting stronger sentiment once the US trade dispute with China is resolved. The prompt-forward month carry widened to 1.625¢/USG yesterday. June EPC ethane traded at a stronger 21.25-22.5¢/USG Friday morning, and sits at a 2.8¢/USG discount to its fuel value relative to Nymex gas, based on intraday values. By Joseph Barbour Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Growth, challenges for Mexico’s chemical industry: ANIQ

05/06/25

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05/06/25

Growth, challenges for Mexico’s chemical industry: ANIQ

Houston, 5 June (Argus) — The Mexico chemical industry faces challenges in the coming years, said National Chemical Industry Association (ANIQ) foreign trade director Guillermo Miller said this week. There has been a decline in chemical production from Mexico's state-owned Pemex. The company produced around 9mn metric tonnes (t) of chemicals in 2010 but only 2.5mn t in 2024. This is a challenge to the industry which needs to find formulas that allow Pemex to increase production, Miller said at the UTECH Las Americas polyurethane conference in Mexico City, Mexico. Additionally, investment has slowed into the chemicals industry in Mexico. The last peak was in 2014 for a polyethylene project. Logistics also pose a challenge for the country and increase costs as the current infrastructure is forcing product to move around to be used, said Miller. Mexico currently relies heavily on imports of chemical feedstocks, with the majority coming from the US. The availability of raw materials is extremely limited, especially for byproducts of natural gas, ethane and propane. Despite these challenges, the chemical industry, which was 1.7pc of the country's GDP in 2024, is projected to have growth of 5pc on average over the next 10 years, Miller said. There also remains a strong demand for polyurethane since Mexico is in the top five countries for car and refrigerator production and is first in television production, said Miller. The country should focus on innovation, infrastructure, certainty in investments and addressing the raw material shortage, said Miller. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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LyondellBasell agrees sale of select assets: Correction

05/06/25

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05/06/25

LyondellBasell agrees sale of select assets: Correction

Changes financial figures in third paragraph to € from $ London, 5 June (Argus) — LyondellBasell said it is in exclusive negotiations with Munich-based industrial investment firm Aequita, regarding the sale of four olefin and polyolefin assets in Europe. The deal includes its integrated cracker and polyolefin assets in Berre, France and Muenchmuenster, Germany, and stand-alone polypropylene (PP) sites in Carrington, UK and Tarragona, Spain. The deal is contingent on consultations with local works councils and is expected to close in the first half of 2026. The sites were part of six put under strategic review in May 2024. LyondellBasell's Brindisi PP asset is not part of the deal and its future remains under review. Lyondell Basell confirmed the closure of its Maasvlakte propylene oxide-styrene monomer plant — the final site included in its initial review — in March. The companies said that the package of assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a longstanding customer base and with access and connectivity to key infrastructure". LyondellBasell will contribute €265mn ($303mn) of €275mn total cash funding to support the separated business, but said that the sale would reduce its annual capex by around €110mn, reduce fixed costs by €400mn, and reduce the scope for decarbonisation investments. Decarbonisation of the Berre and Muenchmuenster sites by 42pc of 2020 levels by 2030, as previously committed to by LyondellBasell, would cost hundreds of millions of euros, or more on a faster timescale. Sale of the assets was preferential to closing them, which would incur environmental liabilities, now assumed by Aequita, LyondellBasell said. Aequita is a private equity group focussed on companies in special situations and group carve outs. It has no other chemicals businesses, but other investments include industrial and automotive parts suppliers. Managing partner Christoph Himmel said "Each site brings a strong operational foundation and a highly experienced, committed employee base. We are confident in our ability to accelerate their development". LyondellBasell indicated that it remains committed to Europe, and said the sale will concentrate its European footprint on "economically sustainable sites". Its remaining European assets are centred around two crackers and downstream units in Wesseling, Germany, PP assets in Italy and propylene oxide capacity in France and the Netherlands. Tarragona and Carrington have capacities of 390,000 t/yr and 210,000 t/yr of PP, respectively. Muenchmuenster has capacity of 400,000 t/yr of ethylene, 265,000 t/yr of propylene, 67,000 t/yr of crude C4s and downstream production of 320,000 t/yr of high-density polyethylene (HDPE). Berre has capacity to produce 465,000 t/yr of ethylene, 270,000 t/yr of propylene and 155,000 t/yr of crude C4s. The site at Berre also has downstream capacity for 320,000 t/yr of low-density polyethylene (LDPE), 350,000 t/yr of PP and 80,000 t/yr of butadiene extraction. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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