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

Spanish 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.

By Joonlei Lee

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20/05/25

New law to limit SM shipping into Canada

Houston, 20 May (Argus) — A new shipping standard for hazardous material in Canada could limit styrene monomer (SM) shipments into the country. Transport Canada's new standard, called Containers for Transport of Dangerous Goods by Rail, went into effect on 1 May. The standard restricts SM transportation to class 117 tank cars, phasing out the previously used class 111 tank cars. Class 117 tank cars have a thicker shell and steel jacket outside the car, which provides thermal protection under the jacket to protect the tank car in the event of a fire. BNSF Railway on 24 April began rejecting any billing for tank cars that are subject to the phase-out in order to keep chemical shipments in compliance, the company said. The number of US SM sellers or distributors with class 117 tank cars is limited, meaning the standard could limit SM shipments into Canada, sources said. That could prove problematic if Shell, an SM producer in Canada, is offline long enough. Last week, [Shell declared a force majeure on SM] (https://direct.argusmedia.com/newsandanalysis/article/2689610) from its unit in Scotford, Alberta, but said they expect the plant to be back online as soon as 23 May. Only one other producer in the US, Ineos Styrolution, is known to have access to class 117 tank cars. This producer has a supply of them from their facility in Sarnia, Ontario, although that facility has been offline since April 2023 and the company plans on permanently closing it by October 2026 . The US also restricts shipping of some hazardous materials to class 117 tank cars, but the US regulation does not yet include SM. The US will restrict SM to class 117 tank cars starting 1 May 2029. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to walk tightrope in Cop 30 fossil fuel talks

20/05/25

Brazil to walk tightrope in Cop 30 fossil fuel talks

Rio de Janeiro, 20 May (Argus) — Brazil is arguing that its developing country status allows it to consolidate its position as a major crude producer and is likely to lean on developed countries during much-awaited discussions on moving away from fossil fuels at the UN Cop 30 climate conference in November. Attempts to reach an ambitious outcome on mitigation — cutting greenhouse gas emissions — and actions to move away from fossil fuels were quashed at Cop 29 in Baku last year, and all eyes are on Brazil to bridge divides on this issue . Cop 30 president-designate Andre Correa do Lago has failed to address fossil fuels in his two letters outlining priorities for the summit, but members of the Cop 30 team have indicated the issue will be on the agenda. With geopolitical tensions and energy security questions redirecting government priorities away from the energy transition, the outlook is more challenging than when Cop parties agreed the global stocktake (GST) conclusion on fossil fuels and energy in 2023 . But Brazil is well-placed to take the lead. It is a respected player in climate discussions and has one of the cleanest energy mix — 49pc of its energy and 89pc of its electricity comes from renewables. Its own mitigation efforts prioritize slashing deforestation, which accounts for the lion's share of Brazil's greenhouse gas (GHG) emissions. Non-profit World Resources Institute Brazil describes the emissions reduction target in Brazil's nationally determined contribution (NDC) — climate plan — as "reasonable to insufficient" and notes that energy emissions are expected to increase by 20pc in the decade to 2034. Its NDC avoids any concrete steps towards winding down crude. After you The government's view on fossil fuels is that Brazil's developing country status, the oil and gas industry's importance in its economy and comparatively low fossil fuel emissions justify pushing ahead with oil production. Correa do Lago said earlier that Belem was picked as a venue for Cop 30 to show that Brazil is still a developing country, adding that any decision on oil and gas should be taken by Brazil's citizens. President Luiz Inacio Lula da Silva said that oil revenue will fund the energy transition. It is a position that has earned Brazil accusations of hypocrisy from environmentalists at home and abroad, but which also places it as a possible model for other hydrocarbon-producer developing countries. Brazil's diplomatic tradition of pragmatically balancing seemingly opposing positions could serve it well here, said Gabriel Brasil, a senior analyst focused on climate at Control Risks, a consultancy. He does not see Brazil's attempt to balance climate leadership with continued oil production as hurting its standing among fellow parties or energy investors. Civil society stakeholders hope pre-Cop meetings will help bring clarity on how Brazil might broach the fossil fuel debate. Indigenous groups, which are set to be given more space at Cop, are demanding an end to fossil fuel extraction in the environmentally sensitive Foz do Amazonas offshore basin. Meanwhile, Brazilian state-owned Petrobras moved one step closer to being authorized to begin offshore drilling there . During meetings of the UN climate body — the UNFCCC — in Panama City this week, the Cop 30 presidency will present ideas for the summit "with a focus on the full implementation of the GST". But it has to wait for countries to update their NDCs to gauge what is achievable on mitigation. Only 20 have submitted new NDCs so far, with the deadline pushed back to September. Brazil's own NDC gives some clues. It welcomes the launch "of international work for the definition of schedules for transitioning away from fossil fuels in energy systems" and reiterates that developed countries should take the lead. And a report commissioned by Brazil's oil chamber IBP and civil society organization ICS to be given to negotiators ranks Brazil as a "mover" in the transition away from oil and gas, ahead of "adapters" like India and Nigeria but behind "front-runners" Germany and the US. The research develops the idea of a country-based transition plan, using criteria such as energy security and institutional and social resilience, as well as oil and gas relevance. By Constance Malleret 2023 Brazil emissions sources Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Zuglogistik vor Herausforderungen

20/05/25

Zuglogistik vor Herausforderungen

Hamburg, 20 May (Argus) — Die Versorgung der Tanklager per Kesselwagen gestaltet sich deutschlandweit immer schwieriger. Zunehmende Probleme durch Ausfälle treffen auf einen erhöhten Bedarf an Kesselwagen aufgrund des andauernden Rheinniedrigwassers. Das Logistiksystem der Bahn scheint an der Auslastungsgrenze zu sein. Vor allem Personalausfälle bei den Zugführern aufgrund von Krankheit und einer hohen Fluktuation belasten das System, so Marktteilnehmer. Die siebenwöchige Totalsperrung der Strecke 6081 zwischen Berlin und Eberswalde erhöht den Personalbedarf und verlängert die Transportwege seit dem 11. April. Kesselwagen, die Ware aus der PCK Raffinerie (226.000 bl/Tag) in Schwedt in Richtung Berlin und Südost transportieren, müssen derzeit einen Umweg von knapp 400 km in Kauf nehmen. Die Sperrung soll bis voraussichtlich Ende Mai anhalten. Darüber hinaus sinken seit Mitte Februar die Rheinpegel , wodurch sich das Ladevolumen der Binnenschiffe sukzessive verringert. Anbieter weichen daher für die Versorgung der Tanklager verstärkt auf Kesselwagen aus. Im April stieg zudem die Nachfrage vor allem nach Heizöl und Diesel, was die Situation zusätzlich verschärfte. Züge verzögerten sich daher erheblich oder fallen zum Teil ganz aus. Dies wirkt sich teilweise auch auf Transporte in die Schweiz aus, berichten Händler. Der Engpass in der Logistik führt dazu, dass Händler einzelne Tanklager bereits seit mehreren Wochen nicht anfahren können, um Ware zu verladen. Eine Entspannung der Situation ist nicht abzusehen. Nach einer kurzen Erholung sind die Pegel am Oberrhein wieder gefallen. Eine volle Auslastung der Ladekapazität wird auch im Mai voraussichtlich nicht möglich sein, laut der wahrscheinlichkeitsbasierten 14-Tage-Vorhersage der Bundesanstalt für Gewässerkunde. Und eine weitere Sperrung steht bevor: Die Deutsche Bahn plant eine Generalsanierung der Strecke zwischen Hamburg und Berlin. Diese wird ab August 2025 für neun Monate voll gesperrt sein. Von Gabriele Zindel Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

US budget bill not enough of permitting fix: CEO

19/05/25

US budget bill not enough of permitting fix: CEO

Washington, 19 May (Argus) — Republican efforts to unilaterally overhaul federal pipeline permitting through a filibuster-proof budget bill will not provide the certainty needed to make major investments in new energy infrastructure, an industry executive said today. Republicans in the US House of Representatives will vote as early as this week on a bill that would offer fast-tracked approval of new pipelines and immunity from some lawsuits, in exchange for a fee of up to $10mn. But that bill, along with attempts by the White House to expedite project approvals by executive order, fall short of what industry officials would like to see on permitting, US midstream operator Howard Energy Partners chief executive Mike Howard said. "Permit reform through an executive order or a reconciliation bill, that doesn't give me the confidence to go spend billions of dollars on new infrastructure," Howard said at a conference held by the news publisher RealClear. "You have to have an act of Congress that both sides of the aisle agree to and make real laws." Energy industry officials have good reason to be skeptical that permitting provisions in the budget bill will remain intact over the years it can take to plan, permit and build large-scale energy infrastructure. Wind and solar developers, oil companies and others making investments based on the clean energy tax credits that Democrats passed through the Inflation Reduction Act now face a risk those credits will be gutted by the Republican budget bill . A bipartisan permitting deal would probably be far harder to negotiate if Republicans succeed in using the pending budget bill to dismantle the clean energy spending in the Inflation Reduction Act, given that any agreement would need to fast-track pipelines in exchange for faster approval of electric transmission lines needed for renewables. Pipeline officials say they are continuing to push for permitting legislation, along with other fixes to expedite projects. "We spend more money on our permitting process than we spend on the steel in modern pipeline projects today, so we are a lot more focused now on the regulatory process and really getting streamlined because we think there's a tremendous amount of value in getting that resolved," US gas infrastructure company Williams chief executive Alan Armstrong said today in an interview on CNBC. Last week, US gas producer EQT's chief executive Toby Rice said there needs to be "significant reform" on permitting to offer the industry the confidence needed to start investing again in new pipelines, after a series of major projects were blocked over the last five years. "We're going to have to have more conversations with the pipeline guys," Rice said at an event held by the US Energy Association. "We've had executives that have lost billions of dollars proposing pipelines and having them blocked, canceled or opposed." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Phillips 66 vote could change company's course

19/05/25

Phillips 66 vote could change company's course

Houston, 19 May (Argus) — Just four of Phillips 66's 14 board members are up for election at its annual meeting this week, but the outcome could shape the future direction of the US refiner and midstream operator. Activist hedge fund Elliott Investment Management has named four of its own candidates for the vote which will come to a conclusion on 21 May, part of its multi-year effort to push the company to sell assets and focus on core businesses. Elliott, which has amassed a $2.5bn stake in Phillips 66, contends that the company has consistently trailed its industry peers and needs to streamline operations, including spinning off or selling its midstream business, selling its stake in Chevron Phillips Chemical (CPChem), and possibly other assets. Phillips 66 has told shareholders that Elliot is pushing "an aggressive short-term agenda" that would cause disruption, slow momentum and jeopardize shareholders' investments. It says the Phillips 66 board and management team are implementing a "transformative strategy" that has delivered results, expanded its NGL business, improved its refining cost structure and continues to position CPChem as the lowest cost producer of ethylene. "We don't act out of fear or short-term trends," Phillips 66 chief executive office Mark Lashier said in a first quarter earnings call last month. "We act on what we believe will create the most long-term value for our shareholders each and every time." Turning up the heat Elliott alleges that Phillips 66 suffers from "continuous poor corporate governance" and "disingenuous shareholder engagement." Elliott said its proposals could push Phillips 66 stock to more than $200 per share. The stock was trading near $124 per share Monday morning. Elliott's campaign has grown more aggressive in the months leading up to this week's shareholder meeting. It includes launching a website dubbed "Streamline 66" with slide shows, podcasts, biographies of its dissident board nominees, press releases and information on how shareholders can vote by mail, phone or online. Elliott nominees include Brian Coffman, former chief executive at Motiva; Sigmund Cornelius, former chief financial officer of ConocoPhillips; Michael Heim, former chief operating officer of Targa Resources; and Stacy Nieuwoudt, former energy analyst at Citadel. Three top shareholder advisory firms are backing the Elliott nominees in the proxy fight. Institutional Shareholder Services (ISS) and Egan-Jones are recommending all four of Elliot's dissident nominees, while Glass Lewis is backing three of the four — and supporting Phillips 66 nominee Nigel Hearne, a 35-year veteran of Chevron, because his experience "is more critical at this juncture". Phillips 66 pushback Phillips 66 has made some adjustments since Elliot started to agitate for change. In February 2024 it appointed former Motiva and Cenovus downstream executive Robert Pease to the board to address Elliott's concerns about a shift in focus from refining to midstream. And this year it agreed to sell off some of its European retail business , and expects about $1.6bn in pre-tax cash proceeds from the sale that it will use toward debt reduction and shareholder returns. But for the other Elliott recommendations to divest from midstream and sell its 50pc share of CPChem, Phillips 66 said the board has evaluated them and "came to the conclusion that neither action is in the best interest of long-term shareholders at this time". In additon to Hearne, Phillips 66's slate for the open board seats includes putting up Pease and current director John Lowe for re-election and nominating Howard Ungerleider, a former Dow president and chief financial officer. Current board members Gary Adams and Denise Ramos will not stand for re-election. Analysts with US bank TD Cowen said they "suspect Elliott could get some or all of its board members elected" and there could be larger board turnover next year if shareholders approve an Elliott proposal to require each director to submit a resignation to the board every year. The most likely outcome of an Elliott win is that the board "more deeply examines a midstream restructuring", TD Cowen said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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