Petrochemicals firm LyondellBasell is in exclusive negotiations with Munich-based industrial investment firm Aequita regarding the sale of four olefin and polyolefin assets in Europe. The deal includes its integrated cracker and polyolefin assets in Berre, France, and Muenchsmuenster, Germany, as well as stand-alone polypropylene sites in Carrington, UK, and Tarragona, Spain. The deal is contingent on local council approval and is expected to close in the first half of 2026, LyondellBasell says. The sites were part of six put under strategic review in May 2024. The assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a long-standing customer base", the firms say.
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Feedstock boom to drive Argentina petchems
Feedstock boom to drive Argentina petchems
Sao Paulo, 11 June (Argus) — Argentina's petrochemical industry has entered a new investment cycle, supported by abundant feedstock from the Vaca Muerta formation and a renewed push to add value domestically rather than export raw molecules, company executives said. The executives, who gathered in Buenos Aires on 9 June for an event marking the 50th anniversary of the Argentinian Petrochemicals Institute (IPA), described a sector with access to a far larger resource base than in the 1990s, when much of Argentina's current production platform was built. The group included chief executives from leading companies such as Mega, Profertil, Petroquimica Cuyo, Unipar and Dow. The key difference today from the 1990s is scale, they said. The Vaca Muerta shale formation offers abundant natural gas and associated natural gas liquids (NGLs) capable of underpinning multiple industrial projects across the value chain. As feedstock access is no longer the main constraint, Argentina now has sufficient ethane, propane, butane and natural gas to sustain long-term growth. But the timing of new projects will depend on global market conditions, financing costs and the ability to provide stable rules for long-term investments. Executives highlighted global imbalances as a major constraint for ethylene and its derivatives. The global industry is operating in a downcycle, with utilization rates below profitability thresholds and persistent oversupply in polyethylene (PE) and polypropylene (PP), partly driven by rapid capacity additions in China. At the same time, geopolitical tensions have introduced volatility in logistics and trade flows. Any sustained disruption or capacity rationalization could help rebalance markets and bring forward investment decisions in Argentina. Midstream and petrochemical company Mega's expansion, in the Bahia Blanca port, emerged as the most advanced downstream project. The company has commissioned a new fractionation train after investing around $260mn, increasing liquids processing capacity and enabling higher output of NGLs, critical feedstocks for petrochemical chains. A second phase, submitted under Argentina's incentive regime for large investments (Rigi), would expand transport and pumping capacity between Bahia Blanca and Neuquen, raising the total investment to about $360mn. The project is seen as key to unlocking greater availability of ethane and LPG for ethylene, PE and PP production. Executives stressed that ethane industrialization is strategically necessary but commercially challenging in the short term. Rising LNG developments will generate large volumes of ethane that must be extracted from natural gas streams. Without sufficient downstream capacity, Argentina risks exporting or burning this feedstock instead of converting it into higher-value petrochemicals. But weak margins and limited demand growth continue to delay large-scale ethylene and PE projects. Argentinian PP producer Petrocuyo reinforced the case for capturing more value through domestic PP production. The company argued that Argentina should prioritize converting propane into polymers rather than exporting raw molecules. But it warned that Chinese overcapacity continues to pressure PP markets and that high local financing costs remain a major barrier compared with lower-cost international competitors. Brazilian chlor-alkali producer Unipar Carbocloro, which also operates in Argentina, outlined a more defensive investment approach, focused on competitiveness rather than volume growth. The company is evaluating a modernization project in Bahia Blanca that would reduce electricity consumption by around 30pc, cut water use and lower carbon intensity. Nitrogen fertilizer producer Profertil pointed to comparatively stronger fundamentals in fertilizers, although executives acknowledged that nitrogen projects currently face fewer structural headwinds than olefins and polyolefins. The panel closed with broad consensus: Argentina has the resources and industrial base to support a new petrochemical wave. But converting feedstock into sustained growth in ethylene, PE and PP will depend on aligning infrastructure, financing, market timing and policy support. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
LyondellBasell to shut remaining PP output at Brindisi
LyondellBasell to shut remaining PP output at Brindisi
London, 11 June (Argus) — Petrochemical producer LyondellBasell said it plans to close its remaining polypropylene (PP) production at Brindisi, Italy, by the end of the year, but union sources say that is contingent on it not finding acceptable alternative solutions for the unit. LyondellBasell told Argus that a "challenging macroeconomic environment, persistent uncertainty around feedstock availability, and structurally higher operating and logistics costs have diminished the site's competitiveness and made it increasingly difficult to sustain a viable long-term position". The Brindisi PP unit has a nameplate capacity of 260,000 t/yr. It was the first Spheripol unit, opened in 1982, and mainly produces commodity PP homopolymer grades for packaging. Another PP unit at the site was closed by LyondellBasell in 2024 . The firm does not have upstream propylene production at Brindisi. Feedstock is shipped in by sea from other sites, mainly from Priolo in Italy, adding significant freight costs to its cost position. The site previously received up to 220,000 t/yr of propylene from Eni's Versalis Brindisi cracker before its closure in April last year . "Given Eni's decision on the cracker and the overall crisis in general, the company [LyondellBasell] told us it would be closing the unit at the end of December," said Carlo Perrucci, regional secretary of trade union Uiltec. Perrucci said LyondellBasell had put the PP unit up for sale at a symbolic price, but it would be difficult to find a buyer without the cracker. "Eni told us it has hired JPMorgan to try and find a buyer for its cracking plant," Perrucci said. "If they succeed, it might make LyondellBasell's search for a buyer easier." LyondellBasell said it remains committed to the European market and will continue to meet customer demand through its broader production network. The firm completed the sale of several European assets to a new regional petrochemical and polymer company, Velogy, on 1 May. By Stephen Jewkes and Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India mulls extension of petchem import duty waiver
India mulls extension of petchem import duty waiver
Mumbai, 11 June (Argus) — The Indian government may extend a waiver granted to petrochemical imports beyond its present deadline of 30 June if supply disruptions related to the Iran war persist, a senior government official said earlier this week. New Delhi is watching the developments in the Middle East closely and is open to extending the temporary relief beyond the current deadline, said deputy director of India's commerce department Ravi Teja at a press conference on 9 June. India waived off import duties on 40 petrochemical products from April, including polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) to negate the impact of additional costs to domestic industries. Some plastic converters have urged the government to extend the duty waiver until 30 September. Industry participants anticipate a final decision on the potential extension in the coming weeks. Indian PE importers have slowed purchases due to the uncertainty hanging over the deadline and are waiting for further guidance from the government. There was a similar slowdown to PVC import flows for most of the late second quarter, primarily because of higher domestic resin inventories and the beginning of the monsoon season. Low domestic supplies The cut in import duties, as well as improved resin supplies, led to a moderation in polymer prices compared with the initial days of the conflict. Argus assessed linear-low density polyethylene (LLDPE) prices at $1,250-1,330/t cfr India for the week to 5 June, compared with $1,430-1,500/t cfr India on 10 April. Low-density polyethylene (LDPE) prices were assessed at $1,500-1,600/t cfr India for the week ended on 5 June, down from $1,700-1,800/t cfr India on 10 April. Suspension PVC (s-PVC) prices were assessed at $800-850/t cfr India on 5 June, down from $950-1,020/t cfr on 10 April. An extension could lead to a similar decline in prices, former president of the All-India Plastic Manufacturers Association Haren Sanghavi told Argus . But he added that the manufacturing industry remains concerned about domestic supplies and imports alone will not be sufficient to meet demand. Domestic production of some petrochemicals has remained affected by feedstock constraints. Many Indian PVC producers are reliant on feedstock ethylene dichloride (EDC) and vinyl chloride monomer (VCM) imports, with the Middle East accounting for over 50pc of total EDC imports into India back in 2025. Indian producers have either had to take alternative supplies since the beginning of the US-Iran war or scale production accordingly, with concerns emerging in the market over the reliability of domestic production should the war continue, and Middle Eastern EDC supplies remaining inaccessible to the Indian market. By Sourasis Bose and Michael Vitiello Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Israel hit Karoon petrochemical hub in southwest Iran
Israel hit Karoon petrochemical hub in southwest Iran
Dubai, 8 June (Argus) — Israel struck a number of facilities at a petrochemical complex in Mahshahr, in Iran's southwestern Khuzestan province, as part of a temporary resumption in direct hostilities between Tehran and Jerusalem. Israel's strikes were in response to a barrage of ballistic missiles that Iran launched at targets in northern Israel late on Sunday, 7 June, which in turn, were a reaction to Israeli strikes on the Lebanese capital, Beirut, earlier that day. Israel's Defense Forces (IDF) said it targeted "several infrastructure sites" it said were used by Tehran "to produce and export raw materials for weapons production." The facilities "produced unique materials that serve as critical components for the development of ballistic missiles," it said. The IDF said it had targeted the same complex during the initial weeks of the conflict that began on 28 February. Iran confirmed the hit, naming the complex as Karoon Petrochemical, which is owned by Iranian petrochemical company PGPIC. It and several of its subsidiaries were sanctioned by the US in 2019 on the grounds it would help finance the Islamic Revolutionary Guard Corps (IRGC). The IDF separately said it struck several Iranian "strategic defense systems" Tehran had deployed across the country to replace systems destroyed earlier in the fighting. Iran reported strikes on facilities in and around Tehran, Isfahan and Tabriz. Iran's armed forces said Israel had "started a dangerous game" with its targeting of the Karoon petrochemical hub, and vowed to hit back hard. It subsequently said the IRGC had launched a new missile strike against "similar industries" in Israel's Haifa, home to Israel's largest integrated oil refining and petrochemical facility. The 197,000 b/d Haifa refinery was targeted by Iran during the 12-day war in 2025, and during the early weeks of the current conflict . Israel has not confirmed if the facility sustained any damage today. The IRGC has said it has suspended its attacks on Israel, but warned "any continuation of [Israeli] hostilities and wrongdoing ꟷ particularly in southern Lebanon ꟷ will be met with far harsher and more devastating actions than those previously taken." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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