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Malaysia's Lotte Titan yet to produce on-spec aromatics

  • Market: Oil products, Petrochemicals
  • 19/06/24

Malaysian petrochemical producer Lotte Titan has yet to produce on-specification aromatics after its aromatics unit in Pasir Gudang restarted on 10 June.

The unit, which can produce up to 110,000 t/yr of benzene and 60,000 t/yr of toluene, continues to face technical issues after experiencing delays to its restart date earlier this month, with flaring being observed at the Pasir Gudang complex.

The company now aims to produce on-specification aromatics products by the end of the week.

The associated No.2 naphtha cracker, which also restarted on 10 June, is producing on-specification olefins, although production rates remain unstable. The No.2 cracker has a nameplate capacity of 430,000 t/yr of ethylene and 220,000 t/yr of propylene.


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24/01/25

S Australia gets OK to use diesel generators for backup

S Australia gets OK to use diesel generators for backup

Adelaide, 24 January (Argus) — Australian federal energy regulator has approved a South Australian (SA) state government bid to temporarily change regulations, ordering two diesel-fired generators in the state to remain available for back-up electricity supply. French utility Engie last year said it would mothball the 63MW Snuggery and 75MW Port Lincoln generators. The SA's Labor energy minister opposed this, and last month wrote to the Australian Energy Market Commission (AEMC) to request the Australian Energy Market Operator (Aemo) be given powers to direct this capacity into the market if supply is threatened. The rule change will be enforced until 31 March, and will help secure SA's electricity supply this summer, the AEMC said on 23 January. SA could face load-shedding during cases of reliability shortfalls, especially during extreme weather, without sufficient backup reserves. No objections were received during the fast-tracked process, the AEMC said. SA is highly dependent on renewable power such as solar and wind, especially after closing its last coal plants in the last decade. Its sole connection to the national electricity market is via links to Victoria state. The 800MW EnergyConnect electricity transmission link to New South Wales is still under construction and has been delayed until July 2027, from an original guidance of 2023. About 72pc of SA's power consumption was from renewable sources last year, with gas contributing 24pc and imports from Victoria making up 10pc, leaving the state vulnerable to outages if this connection is damaged. But backup generators are costly to maintain as cheap renewable energy floods the grid, leaving governments stuck between subsidising fossil-fuelled plants or facing politically and economically damaging interruptions to supply. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump tariffs could stall Mexico’s growth: Fitch


23/01/25
News
23/01/25

Trump tariffs could stall Mexico’s growth: Fitch

Mexico City, 23 January (Argus) — US President Donald Trump's threat to impose tariffs on imports from Mexico could have a serious impact on Mexico's already sluggish economic growth in 2025, Fitch Ratings said. "Our assumption is that Trump will follow through on some tariff threats," said Todd Martinez, senior director of sovereigns at Fitch Ratings, during a webinar. But potential 25pc tariffs would likely apply only to durable goods, which account for about 10pc of Mexico's exports to the US, thanks to protections under the US-Mexico-Canada (USMCA) trade agreement that are likely to protect oil exports, he added. Fitch forecasts Mexico's economy to grow by just 1.1pc in 2025. But this estimate does not include the potential impact of tariffs, even if limited. Should they be implemented, these tariffs could shave 0.8 percentage points off GDP growth, potentially pushing the economy into near-zero growth or a contraction, Martinez said. The uncertainty surrounding the scope, timing, and duration of the tariffs adds to the economic risks. "These tariffs may also serve as a negotiation tool for broader bilateral issues," noted Shelly Shetty, managing director of sovereigns at Fitch Ratings. Exports to the US represent over 25pc of Mexico's annual GDP growth. Additionally, Mexico is home to the largest undocumented population in the US, at around 4.8mn individuals, according to Fitch. While Trump's return to the White House could disrupt Mexico's economy, domestic challenges also threaten growth. Martinez highlighted the judicial reform passed late last year, which will overhaul the judiciary by introducing popular elections for judges and supreme court justices between 2025 and 2027. This reform has already raised concerns among global investors. Mexico's governance index has worsened between 2012 and 2023, according to the World Bank. Fitch also noted that the ruling party Morena's supermajority in congress could further alarm international investors by introducing policies perceived as unfavorable to business. Fitch currently has Mexico's sovereign credit rating at BBB-, its lower medium investment grade, with a stable outlook. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Poland says EU 2040 climate target a 'challenge'


23/01/25
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23/01/25

Poland says EU 2040 climate target a 'challenge'

Edinburgh, 23 January (Argus) — Setting the bloc's climate target for 2040 as well as agreeing additional environmental and climate laws is a "challenge" for the six-month Polish EU presidency, Poland's environment minister Paulina Henning-Kloska said, as there is "no unified position". Speaking to the European Parliament's environment committee, Henning-Kloska, who chairs meetings of both environment and energy ministers, made clear that member state adoption of the bloc's 2040 target for cutting greenhouse gas (GHG) emissions will be difficult. "We had a discussion on this in the council [of ministers] last December," she said. "What is clear is that there is no unified position," she added, as some member states wants greater flexibility in reducing emissions between 2030 and 2050. Difficult discussions between EU states and in the European parliament will likely push the submission of the bloc's nationally determined contribution (NDC) — climate plan — to the UN Framework Convention on Climate Change (UNFCCC) beyond the 10 February deadline. The European Climate Law requires the European Commission to propose a 2040 climate target "at the latest within six months of the first global stocktake". The global stocktake was completed during the UN Cop 28 climate summit in Dubai, in 2023. It gauged countries' progress against the Paris Agreement and proposed measures to keep to its goals — including keeping warming preferably below 1.5°C. EU officials note that the 2040 target will "inform" the decision on the EU's next NDC. Even if the EU's NDC submission does not require a separate law, officials also "expect" to receive a political mandate from member states before the NDC submission by the European Commission and the EU's presidency, led by Poland until the end of June. Despite the threat to a speedy timeline, the commission maintains it will continue to be a "leading" voice for international climate action and aims to submit the EU's next NDC "well ahead" of the Cop 30 climate talks in Belem, Brazil in November. But German member Peter Liese thinks the EU is in "deadlock" on its 2040 target. "We may like it or not, it's very ambitious," he said. "And I don't see enough support for that target." A member of parliament's largest centre-right EPP group, Liese also picked up on Polish prime minister Donald Tusk's and Henning-Kloska's call for changes or delay to the bloc's specific emissions trading system for road transport and heating fuels (ETS2). "I don't see — without the ETS2 — member states have any plan to get to their target," said Liese, who has previously helped draft legislative revisions to the ETS. "I don't think abolishing is a solution. Postponement is also [not] the best solution," Liese said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil real recovers ground on US dollar


22/01/25
News
22/01/25

Brazil real recovers ground on US dollar

Sao Paulo, 22 January (Argus) — The Brazilian real continued to strengthen against the US dollar today thanks to increased investor confidence domestically and an easing in the dollar globally in recent days after the real tumbled in the last weeks of 2024 on fiscal concerns. The exchange rate ended the session at R5.946/$1, as the real appreciated by 1.4pc on the day. The real has strengthened by about 7.8pc to the dollar from an intradday low of R6.4/$1 on 25 December. The last time the exchange rate between the two currencies ended the day below the R6/$1 threshold was on 11 December, when it stood at R5.989/$1. The real's recent appreciation took place as domestic investors are more confident about the country's spending cut plans, according to Sidney Lima, an analyst at Ouro Preto Investimentos, an investment management firm. But it is hard to say whether the recent appreciating trend will continue in the future, he said. That will "depend on the continuity of fiscal reforms in Brazil and global economic conditions," he added. At the same time, the US dollar index, which tracks the dollar against six main trading partner currencies, has fallen from a more-than two-year high on 12 January on uncertainty over whether US president Donald Trump will follow through on his tariff threats. Still, the Brazilian real has depreciated by around 20pc to US dollar since 22 January 2024. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Power outages weigh on Ecuador's presidential race


22/01/25
News
22/01/25

Power outages weigh on Ecuador's presidential race

Quito, 22 January (Argus) — Ecuador's leading presidential candidates would support at least some private-sector investment in energy, prompted by massive power outages last year that have weighed on the campaign. Incumbent president and leading candidate Daniel Noboa would keep investing in new thermoelectric plants and would tender the $600mn, 500MW Cardenillo hydroelectric project this year, he said when the 16 official candidates debated their platforms over the weekend. He would continue to support outside investment in the crude sector and large-scale copper and gold mining. On 9 February, about 13.7mn Ecuadorians are eligible to vote in the compulsory election to pick a president, vice president and 151 members of the one-chamber national assembly. This comes less than two years after a snap presidential and congressional election in August 2023 that Noboa won. Noboa is ahead despite crippling power outages last year under his administration because of droughts that cut Ecuador's hydroelectric output amid long-running technical problems and delays with the power plants contracted under previous administrations. Ecuador ended the rolling outages late last year as heavier rains, electricity imports from Colombia and additional thermoelectric capacity eased the problem. About 32pc-36pc of voters support Noboa. He is followed by Luisa Gonzalez, candidate of the Revolucion Ciudadana party sponsored by exiled former president Rafael Correa, with 21pc-33pc, according to Cedatos and Comunicaliza polls published on 18 January and 11 January, respectively. Gonzalez would support private-sector investment in the energy sector, but only to expand the coverage of electricity services. The hydroelectric plants facing technical and other problems were awarded during Correa's administration from 2008-2012, mostly to state-owned Chinese firms. The next leading candidates are Jimmy Jairala, a former television anchor and leader of Centro Democratico party, with 3pc, and Leonidas Iza, president of the confederation of indigenous nationalities (Conaie) and candidate of the Pachakutik party, with 2pc. Jairala also favors tendering the Cardenillo project and attracting outside investment to oil and mining but Iza opposes privatization of national resources and large-scale mining. The remaining candidates have even smaller shares, and 14pc of voters are undecided, with another 14pc planning to void their ballots. Unless a single candidate secures 40pc of the vote with a 10 percentage point or more lead, there will be a second round of voting on 13 April. The winner will take office on 24 May for a four-year term. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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