Pequiven races to avert ethylene blast: Update
State-owned petrochemicals producer Pequiven said emergency crews depressurized a damaged ethylene storage tank at its Ana Maria Campos complex, averting a potentially catastrophic accident.
Pequiven ordered the emergency evacuation of the 3.5mn t/yr complex known as El Tablazo at about 9am local time after a storage tank holding ethylene started bulging and cracking.
Emergency crews managed to reduce the tank's internal pressure level in a little over two hours, a Pequiven official at the complex said.
Pequiven suspended the evacuation protocol about 2pm local time, but most of the workers already had gone home for the day, the official said. Normal operations will resume overnight, the official added.
The ethylene is being transferred from the damaged tank to other nearby storage, the official said. Pequiven has not determined yet if the damaged tank can be repaired or must be dismantled and replaced, the official said.
Pequiven has not issued any statements on today's emergency at El Tablazo. "A small ethylene leak was contained quickly," a senior Pequiven executive in Caracas said.
The energy ministry said El Tablazo is operating normally. But two Pequiven officials in Zulia state said the complex is operating at less than 30pc of nameplate capacity because of gas and imported feedstock shortages, and frequent power outages.
The tank's vertical walls are "ballooning outward at several points and numerous cracks have been detected," a Pequiven industrial security official at the facility told Argus earlier today. The official declined to give more details including the capacity of the failing storage tank, but said it was overfilled due to operator error.
"El Tablazo's workers were evacuated as a precaution. We can't risk another Amuay-scale tragedy at El Tablazo," the Pequiven official said, referencing a lethal olefins explosion that killed dozens in August 2012 at state-owned PdV's 635,000 b/d Amuay refinery.
Emergency crews at El Tablazo are working as quickly and safely as possible to vent the pressure and transfer the ethylene to other tanks, the official said.
El Tablazo's petrochemicals production and storage assets are in "sub-optimal condition due to poor maintenance and the resignation since last year of hundreds of skilled workers," the official said.
Pequiven says El Tablazo has a design output capacity of 3mn t/yr of petrochemical products including ammonia (300,000 t/yr), urea (400,000 t/yr), ethylene (635,000 t/yr), polypropylene (144,000 t/yr), caustic soda (130,000 t/yr), MVC (130,000 t/yr), PVC (120,000 t/yr), high-density polyethylene (160,000 t/yr), low-density polyethylene (80,000 t/yr), linear low-density polyethylene (180,000 t/yr) and ethylene glycol (86,000 t/yr).
Insufficient maintenance of the over 40-year-old petrochemicals production units at El Tablazo has been a problem for over a decade, reflecting Pequiven's chronic cash flow deficit caused by the combined impact of strict government exchange controls and heavily regulated local petrochemicals prices.
El Tablazo's biggest operational challenge is a lack of reliable natural gas supplies, Pequiven officials say. Frequent plant equipment breakdowns, regional power outages and a critical shortage of hard currency to finance equipment and feedstock imports are also major factors in El Tablazo's operational paralysis.
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.
TUI Cruises receives methanol-ready ship
TUI Cruises receives methanol-ready ship
New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Nova Chemicals preps for potential Canadian rail strike
Nova Chemicals preps for potential Canadian rail strike
Houston, 18 April (Argus) — Nova Chemicals is taking certain precautions such as making early shipments and forward placement of inventory at US storage locations to mitigate against potential polyethylene (PE) supply disruptions caused by a possible Canadian rail strike that could take place as early as 22 May, the company said in a letter to customers. The Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railroads are (currently negotiating contracts)[https://direct.argusmedia.com/newsandanalysis/article/2553764] with the Teamsters Canada Rail Conference, which represents 9,300 employees across both railroads. The earliest a strike could begin is 12:01am ET on 22 May, but any work stoppage at either railroad could cause widespread disruption to rail traffic across Canada. "NOVA Chemicals utilizes CN and CPKC to serve our manufacturing facilities and delivery polyethylene products and co-products to our customers," the company said in a 15 April letter to customers. "A labor strike within the Canadian railroad industry will result in disruptions and delays, impacting the timely delivery of these products." Where practical, the company said it will ship product early prior to any strike, it said in the letter. It will also attempt to place some inventory at US off-site storage locations before the strike takes place, which will allow it to continue to serve US customers during a strike. Additionally, Nova said it is maintaining a direct line of communication with rail officials, and creating contingency plans for raw materials supply. "Despite our best efforts to mitigate these challenges, there may be instances where shipments are delayed or rerouted due to the strike action," the letter says. If a strike takes place, market participants said it would likely last around 3-4 days, but could cause delays to shipments for up to two weeks. However, the overall US/Canada market is well-supplied, so any shipment delays should not create significant tightness in the market, sources said. Union employees at each railroad will vote electronically from 8 April to 1 May on whether to approve a strike. By Michelle Klump 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