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Argent to start production at new glycerine refinery

  • Market: Chemicals, Petrochemicals
  • 03/10/24

Biofuels producer Argent Energy is expected to commence production at its new glycerine refinery in early October, a source told Argus.

The new Argent refinery, which is located at its Port of Amsterdam site, is Europe's largest facility dedicated to producing bio-based, technical-grade refined glycerine. The facility has a production capacity of 50,000 t/yr and will upgrade crude glycerine into 99.7pc technical-grade glycerine to supply the European chemical market, the company said.

Technical-grade refined glycerine can be used in the production of epichlorohydrin, polyether polyol and anti-freeze, among other applications. Additionally, its use as a feedstock for biofuels generation, such as marine fuels, is being studied as it could offer a cheaper alternative to LNG and distillates. The Netherlands has the largest marine fuel sector in the EU.

"Our entrance into the chemical market is driven by our goal to maximise product value and support the circular economy. By upgrading glycerine from our processes into a technical-grade product, we're giving the chemical industry a bio-based option they can confidently use in their own products," Argent Energy chief executive Louise Calviou said.

The glycerine produced in Argent's new facility will be made via the biodiesel production route, with the product being certified under International Sustainability and Carbon Certification (ISCC) guidelines.

Argent Energy currently has a capacity of 190,000 t/yr for waste-based biodiesel, with sites in Amsterdam and northwest England. The company plans to soon triple biofuel production at its Amsterdam site alone.


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29/10/24

China’s Sinopec cuts crude runs, sales in 3Q 2024

China’s Sinopec cuts crude runs, sales in 3Q 2024

San Francisco, 28 October (Argus) — Chinese state-controlled Sinopec cut crude runs and product sales in the third quarter as downstream margins weakened, leading to lower profits for the quarter. Sinopec processed 5.08mn b/d (190.69mn t) of crude in the first nine months of this year. The firm set a full-year target of 260mn t (5.2mn b/d) earlier in March. It sold 3.94mn b/d (138.06mn t) of gasoline, diesel and jet in the first nine months of this year domestically and has set a 2024 target of 191mn t. This suggests it will need to further ramp up throughput and sales in the fourth quarter to meet full-year targets. Sinopec is expected to pare back refinery runs this month from last month as margins weaken. But the company's gas output grew faster than expected. Output rose by 5.6pc on the year to 3.83bn ft³/d. It set a 2024 target of 3.78bn ft³/d earlier this year, which would be a 3pc growth from a year earlier. The company has this year "adjusted utilisation rate and product mix," it said, to counter "severe challenges" from rapidly decreasing oil prices and narrowing margins for certain products during the first nine months of this year. But this still failed to stem losses in its downstream segments in the July-September quarter, including refining and chemicals. Chinese gasoline crack spreads have collapsed to -$1.22/bl on 25 October, from their summer peak of $18.68/bl on 5 August, because of weak demand exacerbated by rapid displacement in the transport sector by electric vehicles, and this is forcing refiners to cut runs and boost exports. The company's net profit fell by 55pc on the year to 8.03bn yuan ($1.12bn) in July-September, a slightly bigger drop than some analysts estimated. Refining earnings before interest and taxes (ebit) of -$0.29/bl in the quarter is the lowest level since the fourth quarter of 2022, when it fell to -$2.61/bl. The fall in July-September ebit may be partly because of crude inventory loss, although the company did not specify. The company stepped up its "oil to chemicals" and "oil to specialties" project expansions. Its combined capital expenditure (capex) of Yn28bn for its refining and chemicals segments in January-September went to expanding the refining capacity at its 540,000 b/d Zhenhai refinery in eastern Zhejiang and adding of ethylene capacity at refineries including its 470,000 b/d Maoming refinery in southern Guangdong. Sinopec 3Q 2024 results 3Q24 3Q23 ±% Profit Yn bn Profit 8.0 17.9 -55.2 Upstream 16.1 16.2 -1.0 Refining -1.0 7.3 -113.3 Marketing 5.2 9.6 -45.4 Chemicals -1.6 -3.3 -51.5 Natural gas and pipeline NA NA NA Sales mn b/d Domestic product sales 4.1 4.3 -4.4 Total product sales 5.3 5.4 -2.0 Output Crude output mn b/d 0.8 0.8 -0.2 Natural gas output bcf/d 3.8 3.6 4.7 Refinery runs mn b/d 5.1 5.3 -4.8 Gasoline output mn b/d 1.5 1.6 -0.5 Diesel output mn b/d 1.1 1.3 -14.2 Jet output mn b/d 0.7 0.7 2.8 Source: Sinopec, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Range sees 6pc gain in realized 3Q NGL pricing


23/10/24
News
23/10/24

Range sees 6pc gain in realized 3Q NGL pricing

Houston, 23 October (Argus) — Marcellus gas producer Range Resources received a 6pc higher premium versus Mont Belvieu, Texas, on its natural gas liquids (NGL) production in the third quarter owing to its access to markets in Europe and Asia. The Fort Worth, Texas, based producer received on average $25.96/bl for its NGLs, excluding derivatives, up 6pc versus last year. That exceeded average NGL prices at Mont Belvieu, Texas, by $4.10/bl. "Our ability to market ethane propane and butane into the international markets drove the highest NGL premium in company history, at over $4/bl over the Mont Belvieu index," said chief executive Dennis Degner. Range reported its natural gas liquids (NGL) production rose 5pc year over year to 10.2mn bl, or 111,465 b/d, in the third quarter as its gas production rose by 4pc to 1.5 bcf/d. Range updated its full-year guidance on its NGL pricing to Mont Belvieu plus $2.10-$2.35/bl, up from the 75¢/bl to $1.50/bl estimated in the second quarter, owing to gains in propane and butane prices at Mont Belvieu, Texas and higher spot premiums for exported cargoes out of the US. Range's average NGL estimates assumes 53pc of its production is ethane, 27pc propane, and 8pc normal butane. Mont Belvieu, Texas, LST propane averaged 72.9¢/USG in the third quarter, higher than the average of 68.9¢/USG in the third quarter of 2023. Mont Belvieu butane prices averaged 97.25¢/USG in the third quarter, up versus 83.47¢/USG last year. Range credited its term commitments on Energy Transfer's Mariner East system, which pipes NGLs from Range and other Marcellus producers to its export facility at Marcus Hook, Pennsylvania, with its higher realized prices on NGLs, particularly propane and butane, given higher netbacks from Europe and Asia. "International demand and pricing for NGLs remained robust in the third quarter, leading to near maximum US export capacity utilization," Degner said. "Improving Panama Canal throughput access, and a growing global fleet of LPG ships improved waterborne freight rates, and these factors combined to drive export price premiums to new levels relative to the Mont Belvieu index, and Range's portfolio of transportation and sales contracts provided reliable access to these premium markets." Argus-assessed prices for spot propane cargoes on a fob basis rose above Mont Belvieu +30¢/USG in mid-September, a multi-year high. Degner noted higher premiums on spot cargoes are expected to remain until US Gulf coast terminals expand capacity there in late 2025. By Amy Strahan Netback to Northwest Europe vs Mont Belvieu $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Korea to impose anti-dumping duty on Chinese PET resin


21/10/24
News
21/10/24

Korea to impose anti-dumping duty on Chinese PET resin

Shanghai, 21 October (Argus) — The Korea Trade Commission (KTC) has recommended that the Ministry of Economy and Finance (Moef) impose anti-dumping duties on polyethylene terephthalate (PET) resin from China, with an implementation period of five years. The affected products are classified under South Korea's tariff code 3907.61.0000. KTC recommended a rate ranging from 7-7.98pc, with this decision in line with market expectations. Chinese producer Jiangsu Ceville applied for the exclusion of recycled PET from the scope of the investigation, but the South Korean government ultimately denied this request. Moef in July announced the decision to impose provisional anti-dumping duties on the affected products for a period of four months, effective until 29 November. This came after KTC issued a positive preliminary ruling that recommended the imposition of provisional anti-dumping duties on the involved enterprises. KTC had started an anti-dumping investigation into the PET resin produced in China on 12 January. South Korean company TK Chemical had filed an anti-dumping investigation request with KTC in November 2023, citing losses to the relevant domestic industry because of the dumping of Chinese PET resin. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Malaysia's 2025 budget promotes palm waste SAF


21/10/24
News
21/10/24

Malaysia's 2025 budget promotes palm waste SAF

Singapore, 21 October (Argus) — Malaysia's state-owned Petronas will work with palm oil producers to develop palm oil waste-based sustainable aviation fuel (SAF), according to prime minister Anwar Ibrahim when he presented the 2025 budget. The palm oil producers include Malaysia-based agribusiness FGV and Malaysia-headquartered SD Guthrie, previously Sime Darby. Anwar also announced additional higher tax brackets for crude palm oil (CPO) exports will be introduced from 1 November and proposed to increase Malaysia's windfall profit levy threshold for the palm sector. These changes are meant to ensure domestic CPO supply and encourage domestic production of value-added products including SAF and biodiesel, according to the Budget documents. Progressive export duties will be introduced from 8.5pc when CPO prices rise above 3,600 ringgit/t ($837/t), up to a maximum 10pc for CPO prices above 4,050 ringgit/t. Previous duty rates capped out at 8pc for CPO prices above 3,450 ringgit/t. This revised export structure is likely to weigh on palm oil prices, as exporters may reduce bids in the domestic market to keep prices below the threshold that will trigger higher export duties. The CPO price threshold for triggering Malaysia's windfall profit levy will be increased to 3,150 ringgit/t for Peninsular Malaysia and 3,650 ringgit/t for Sabah and Sarawak from 1 January 2025, a rise of 150 ringgit/t from the previous threshold for both areas. The windfall profit levy applies to producers of palm fresh fruit bunches (FFB). The revised export taxes and windfall profit levy threshold are expected to increase costs for the palm plantation sector, but would help the downstream palm refining industry become more competitive compared with Indonesia, according to industry consultancy Glenauk Economics. Replanting funds Malaysia will also allocate another 100mn ringgit to incentivise smallholders to continue replanting unproductive, ageing oil palm trees under its 2025 budget, the same amount from the previous year. The funding will be 50pc in grants and 50pc in soft loans, as in Budget 2024. No land area target for replanting was specified this year. But this year's allocated funding of 100mn ringgit mirrored last year's allocation that targeted 5,900 hectares (ha) of land area. But this amount will likely not be enough to support adequate replanting, according to market participants. Malaysia replanted an estimated 1.7pc of mature oil palm plantation areas during January-September and 2.6pc of mature areas in 2023, according to data from Glenauk Economics. This indicates more funding is likely needed to meet the 4pc industry standard for replanting mature areas yearly as recommended to maintain palm oil output volumes. The low replanting rate has likely partly been because of high palm oil prices in recent years compared to the historical average. High prices discourage voluntary replanting as plantation owners prefer to continue harvesting FFB from older trees over replanting. Third-month crude palm oil (CPO) futures on Bursa Malaysia averaged 3,890 ringgit/t over the past two years up to 21 October. The average price recorded over the past 10 years was just 3,124 ringgit/t. The US department of agriculture (USDA) estimated a quarter of planted oil palm areas in Malaysia were older than 25 years old as of early January, resulting in lower yields. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Housing construction falls in Sept, PVC demand mixed


18/10/24
News
18/10/24

Housing construction falls in Sept, PVC demand mixed

Houston, 18 October (Argus) — Housing permits and starts fell in September according to the latest figures from the US Census Bureau due to volatility in multi-family construction, but single-family construction has grown more steadily throughout the peak building season. Permits for privately-owned homes were at a seasonally adjusted annual rate of 1.428mn units in September, according to the US Census Bureau and the US Department of Housing and Urban Development (HUD). That is 2.9pc below the revised August rate of 1.47mn units and 5.7pc below the September 2023 rate. Housing starts were at a rate of 1.354mn units in September, 0.5pc below the revised August rate of 1.361mn units and 0.7pc below September 2023. Permits have risen and fallen every other month since April of this year. During that time permits for buildings of five or more units trended in the exact same way: rising in one month only to fall the very next. Housing starts have followed a similar track as well, only the month-to-month volatility has endured for the entire year. Once again, multi-family housing units have driven the inconsistency. More recently, multi-family homes have declined for two straight months. Single-family construction Stripping away the multi-family construction figures reveals that single-family construction has not only been more stable but has been growing consistently in recent months. That growth has been limited in some instances and any rebound has still been evidence of a construction market restrained by weaker buying sentiment fueled by high home prices as well as higher borrowing costs. Single-family housing permits were at a rate of 970,000 units in September, 0.3pc higher than August's revised rate. That is the highest rate in five months and the fourth-straight month of growth. Permits had fallen each month from January to June, though, and permits in September 2024 were still down 1.2pc compared with the prior year. Housing starts for single-family units were at a rate of 1.027mn units in September, 2.7pc higher than August and 5.5pc higher than the previous year. Housing starts have only grown for three consecutive months, reflecting the delayed impact of permitting on actual housing construction. The year-to-year comparisons reflect a housing construction market that is recovering from a weak 2023. But softer permit numbers compared with last year still indicate some hesitation in future demand expectations and the likelihood of a continued gradual and uneven recovery into next year. Builder confidence rose to 43 points in October compared with 41 in September, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on 17 October. That reflects some improving sentiment despite affordability concerns in the market, but any mark below 50 points is still indicative of a weak market. PVC demand varies by end use The housing market picture has been mixed for polyvinyl chloride (PVC) all year. Demand peaked for some buyers and converters back in May or June, with demand only slowly declining since. But some end use segments like pipe or exterior profiles have reported stable and solid demand even into October. Pipe production has been buoyed by public investments in infrastructure, such as spending to replace lead pipes used in the US' water infrastructure as part of a recent finalization of an Environmental Protection Agency (EPA) rule requiring all lead pipes be replaced within 10 years. But for exterior profiles, which covers siding, windows, and doors, the market has also been fairly strong as of late. Resin suppliers to these customers have reported strong ordering patterns, seemingly without concern about inventory buildup before the end of the year. Stronger single-family construction activity, which would use more siding for example, combined with recent storms in the Southeast US requiring home rebuilding and repair could explain some of this better demand sentiment compared to other PVC end uses. However, PVC contract pricing has been under pressure due to larger PVC inventories among producers and competition for market share. Argus assessed September PVC contracts as stable from the previous month at 59.5¢/lb, but some customers reported getting modest price decreases in limited instances. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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