Rising South Korean cracker rates to boost LPG demand
South Korean crackers are running harder as margins recover, writes Toong Shien Lee
South Korean cracker operators are aiming to raise run rates this month because of recent gains in ethylene and butadiene prices, raising demand for LPG feedstock with propane and butane still at a discount to naphtha.
Hanwha Total will lift utilisation at its 1.55mn t/yr Daesan cracker to 100pc from 92pc in March, while KPIC has already raised its 800,000 t/yr Onsan cracker rates to 90pc from 80pc. LG Chem is also planning to increase run rates at its 1.15mn t/yr Yeosu 1 cracker to 70pc from 64pc, at its 800,000 t/yr Yeosu 2 cracker to 80pc from 73pc, and at its 1.27mn t/yr Daesan unit to 67pc from 64pc.
GS Caltex is mulling raising utilisation at its 700,000 t/yr Yeosu cracker this month, as is Lotte Chemical at its 1.2mn t/yr Yeosu and 1mn t/yr Daesan units. Hyundai Chemical may ramp up rates at its 900,000 t/yr Daesan cracker to 60pc from 55pc in March, market participants say. The increase in olefin supplies from South Korea is expected to be partially offset by turnarounds at crackers in Japan.
The plan to increase rates comes as cracker margins recover in line with rising ethylene and butadiene prices, although margins remain in negative territory. Naphtha cracking margins rose to -$104/t by 28 February from -$304/t at the start of 2024 — the highest since May 2023, Argus data show. Propane cracking margins have recovered more rapidly as propane prices have fallen relative to naphtha, climbing to -$2/t by 28 February from -$240/t on 3 January. Flexible Asian crackers have shifted to propane from naphtha since January to maximise production margins.
Expectations of tighter ethylene and butadiene supplies in the region have pushed up prices to multi-month highs. The ethylene fob northeast Asia price rose to $935/t on 21 February from $820/t on 3 January, the highest since March 2023. Butadiene fob northeast Asia values increased to $1,270/t on 23 February from $898/t on 5 January, the highest since July 2022.
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ScanOcean to supply MGO-HVO blend in Sweden
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London, 21 May (Argus) — Swedish bunker firm ScanOcean will supply a B30 marine biodiesel blend made of marine gasoil (MGO) and hydrotreated vegetable oil (HVO) by truck at all Swedish ports. The B30 blend will comprise 70pc MGO and 30pc HVO and meet ISO 8217:2017 MGO specifications, according to ScanOcean. The biofuel component will not contain any fatty acid methyl ester (Fame) and the blend will reportedly be accompanied by ISCC-EU certification and a proof of sustainability (PoS) document. ScanOcean added that they will supply the physical blend but that the HVO component will be sourced from the EU. The B30 blend will achieve a 25pc reduction of CO2 emissions on a well-to-wake basis when compared with conventional MGO, according to the Swedish supplier. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iraq’s Somo issues first gasoil export tender
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Q&A: Marine CO2 goals need culture shift: TotalEnergies
Q&A: Marine CO2 goals need culture shift: TotalEnergies
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This database is then accessible and viewable by the buyer, and the supplier could also further deliver a "sustainability information letter" which mirrors the details found in the PoS. It is important for the maritime sector to adopt an electronically traceable system. What role could other types of fuels such as pyrolysis oil potentially play in the maritime sector's decarbonisation targets? We have teams in research and development at TotalEnergies which are studying the potential use of other molecules, including but not limited to pyrolysis oil, for usage in the maritime sector. It may become an alternative option to avoid industry clashes, as pyrolysis oil would not be an attractive option to the aviation sector. We are currently exploring tyre-based pyrolysis oil, but have only started doing so recently so it remains an untapped resource. We need to figure out the correct purification and distillation process to ensure compatibility with marine engines. 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