Saudi Arabia tightens Jubail security after attacks
Saudi Arabia is tightening security at the east coast petrochemical hub of Jubail after drone strikes targeting the country's oil infrastructure at the weekend.
Saudi Arabia was forced to shut in 5.7mn b/d of crude output after drone attacks caused fires at two of the country's crude processing facilities. The attacks at the Abqaiq plant, the largest crude processing facility in the world, and the Khurais plant halved Saudi Arabia's production.
Iran-backed Houthi rebels, who are currently at war against Saudi-led forces in Yemen, said they targeted the two plants. But the US directly blamed Iran for the drone attacks.
Abqaiq, in Saudi Arabia's Eastern Province, is only 180km from Jubail where a number of petrochemical plants are located.
Security has been tightened in the past 48 hours at all Jubail land checkpoints leading to the plant sites. Saudi Arabia is to increase surveillance of drones entering its airspace, with a "shoot on sight" policy. Saudi Arabia is mindful of avoiding another incident just two months before the country hosts world leaders for the G20 Summit in Riyadh.
Petrochemical producers with facilities in Jubail include state-owned Sabic and its various affiliates, fellow Saudi firms Tasnee, Sipchem and Advanced Petrochemical, as well as the Saudi Chevron and Sadara joint ventures. The Jubail-based suppliers also produce methanol, aromatics and isocyanates, along with polymers.
Sabic and fellow Saudi producers said yesterday petrochemical feedstock will be curbed for their subsidiaries in the aftermath of the drone attacks.
The feedstock shortage is expected to support petrochemical prices such as polyethylene and polypropylene in the short term. Petrochemical prices are sensitive to movements in upstream crude values. Crude futures surged by almost 20pc in Asian trading today after US President Donald Trump threatened to retaliate in the wake of the attacks.
Jubail has several petrochemical expansions planned in the coming years.
Global petrochemical giant Ineos in June invested $2b for new projects in Jubail. The projects, due to come on line in 2025, include a 425,000 t/yr acrylonitrile plant, a 400,000 t/yr linear alpha olefins plant and associated poly alpha olefins unit.
Other key petrochemical sites in Saudi Arabia include Rabigh and Yanbu on the west coast, where security is also expected to be tightened.
PetroRabigh, a joint venture between Aramco and Japanese trading house Sumitomo, is the main petrochemical producer based in Rabigh. PetroRabigh produces a variety of petrochemical products including olefins, polymers and aromatics.
Saudi petrochemical companies Natpet, Yansab and Yanpet are based in Yanbu.
Related news posts
EU plastics law clears parliament with mixed reaction
EU plastics law clears parliament with mixed reaction
Brussels, 24 April (Argus) — The European Parliament has adopted the EU's Packaging and Packaging Waste Regulation (PPWR) that requires reductions in plastics and other packaging, ahead of formal approval by the bloc's ministers. The regulation had been provisionally agreed between EU diplomats in March. The regulation, adopted with 476 votes in favor and 129 opposed, obliges packaging reductions of 5pc by 2030, 10pc by 2035 and 15pc by 2040. EU countries must specifically cut plastic packaging waste. Starting on 1 January 2030, the regulation also bans single-use plastic packaging for unprocessed fresh fruit and vegetables, and for foods and beverages filled and consumed in cafés and restaurants. Other bans from 2030 affect individual portions for condiments, sauces, creamers and sugar, as well as very lightweight plastic carrier bags. The rules require all packaging to be recyclable, with exemptions for lightweight wood, cork, textile, rubber, ceramic, porcelain and wax. Plastics Europe's managing director Virginia Janssens said the adopted text is "ambitious" and needs practical implementation. "We need a careful review of the impact of the reuse targets and affected formats, especially in transport packaging," Janssens said. The plastics manufacturers' association said a lack of material neutrality undermined the aims of the PPWR to reduce packaging waste. European paper industry association Cepi pointed to a phase out of "fossil-based materials" and called for timely compliance with the new regulation. Cepi urged EU member states to endorse the agreement when voting. European farmers association Copa-Cogeca noted "discriminatory" treatment for the fruit and vegetable sector, adding that the European Commission, EU member states and parliament have so far "ignored" arguments to amend the text to exempt single-use packaging for fresh fruit and vegetables. EU ministers also voted on an objection approved last week by the EU environment committee regarding mass balance accounting rules, which did not get the majority needed to be confirmed. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brightmark to build Georgia pyrolysis plant
Brightmark to build Georgia pyrolysis plant
Houston, 24 April (Argus) — Chemical recycler Brightmark plans to build a 400,00t/yr pyrolysis plant in Thomaston, Georgia, two years after the company terminated its plan to build a similar plant in a nearby Georgia community. Pyrolysis is a form of chemical recycling that breaks down used plastic into pyrolysis oil, which can then be reprocessed into new plastics at virgin polymers facilities. The 2.5mn ft² plant will cost $950mn, including infrastructure such as roads and rail access, Brightmark said. A previous plan to build a chemical recycling facility in Macon, Georgia, ended in 2022 after Mayor Lester Miller withdrew his support, citing "long-term safety concerns" from Brightmark's "unproven process". The company finished construction of its first chemical recycling plant in Ashley, Indiana, in 2022. Brightmark said it has recycled 2,000t of plastic waste so far at its Indiana plant, well behind its anticipated volume of 100,000 t/yr. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
PU recycling to create opportunities: Industry
PU recycling to create opportunities: Industry
Amsterdam, 24 April (Argus) — Research into rigid polyurethane (PU) recycling in appliances will create opportunities in the sector, delegates told the Utech Europe conference this week in the Netherlands. "There are emerging technologies and innovations flourishing in the rigid PU foam industry," PU Europe secretary general Arnaud Duvielguerbigny said. A lot of the consideration for PU recycling is around the automotive [sector] but there is an opportunity in the appliances sector such as for fridges, BASF Director Technical Development Martin Baumert said. Consumer patterns are changing, with increasing demand for more sustainable alternatives, Duvielguerbigny said. "For appliances specifically there is a very clear plan," Baumert said. The parameters for energy efficiency labelling were changed in 2020 so that white goods previously rated A+++ became a D rating, and that continual increase of efficiency requirements is set to continue. As well as greater efficiency, EU regulations require industrial scale recycling. But current "best in class" insulation using vacuum insulation panels (VIP) that contain inorganic material such as glass fibre makes end-of-life appliance recycling more difficult. At present, the "majority of PU ends up in thermal recycling" meaning the waste is incinerated to generate energy, Baumert said. "Recycling of polyurethanes is possible, but more on the lab scale," he said. "We need processes that are large scale to enable this change," said Baumert. To facilitate recycling, BASF envisions that the inorganic material in VIP will eventually be phased out to include a PU filler, increasing demand for rigid PU foams. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Life-cycle analysis crucial for PU foam: Vita Group
Life-cycle analysis crucial for PU foam: Vita Group
Amsterdam, 24 April (Argus) — Life cycle analysis data is crucial in considering sustainability, UK-based polyurethane foam producer Vita Group chief technical officer Mike Murray told the Utech Europe conference in Maastricht today. "Life cycle analysis is the only normalised and scientific method to validate how sustainable your product is," he said. "If you don't have verified data, you are guessing." "Life cycle analysis reflects all of the environmental and material impacts through your supply chain," he said, including raw materials, manufacturing, waste products, transport and through to recycling or disposal at the end of the life cycle. "It is possible to make PU flexible foam more sustainable," Murray said, but only by working with a wide network of supply chain partners, customers and legislators. "We can no longer achieve emissions reductions on our own… we have to achieve those emissions targets by working together," he said. "As an industry we need to demonstrate that commitment to [the circular economy]. We have a choice between leading the advanced composites market in the circular economy, or wait for legislation to drive the change," he said. "We can't wait for the legislation." Flexible polyurethane foam industry association Europur is working on a life cycle analysis model for the industry "so where we generate and share data, we are doing so on the same basis," Murray said today. Options for more sustainability for PU foam include mechanical recycling, the use of bio-based polyols, and chemical recycling. But for bio-based polyols, "When we look at those we should be looking at the life cycle analysis," Murray said. Vita's analysis indicates that its flexible PU foam has a lower carbon impact across its life cycle than competing products "but that is not how people talk about PU foam," Murray said. Verified data from those competing sectors is "still lagging", he said. Going forward, the PU foam industry must lead the legislation discussion and "take a science-based approach to really show our commitment to the journey we are on," he said. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more