Vietnam’s Long Son extends cracker shutdown to June
Vietnam's sole cracker operator Long Son Petrochemical (LSP) has extended the shutdown of its cracker and associated downstream units in Ba Ria-Vung Tau to June, to address technical issues.
LSP shut its cracker and downstream units on 21 February because of equipment issues. Siam Cement (SCG), the parent company of LSP, subsequently issued a force majeure on products the following day.
SCG was initially expecting the cracker to restart in about 2-4 weeks after the shutdown in February. But the firm filed a statement to the Stock Exchange of Thailand (SET) on 22 March, stating that the technical difficulty is still under investigation and the LSP complex is expected to restart in June.
LSP's cracker is a mixed feed cracker with a nameplate capacity of 950,000 t/yr for ethylene, 400,000 t/yr for propylene and a 100,000 t/yr butadiene extraction unit. Downstream units are polymer-focused, with a 500,000 t/yr high-density polyethylene (HDPE) plant, a 500,000 t/yr linear low-density polyethylene (LLDPE) unit and a 400,000 t/yr polypropylene (PP) unit.
SCG offered spot HDPE, LLDPE and PP supplies from its new LSP complex to the market earlier this year but has ceased offers since late February, after the force majeure announcement. SCG also stated in its statement filed to the SET that its Rayong Olefins (ROC) cracker in Map Ta Phut, Thailand has resumed operations. The producer is expected to ramp up production at its 920,000 t/yr HDPE unit and 720,000 t/yr PP unit in Thailand following the restart of the ROC cracker, and will resume supply of these grades to the market.
The ROC cracker was restarted late last week and has achieved on-specification olefins products since then, according to sources close to the company. The cracker was shut for maintenance since mid-November 2023.
The ROC cracker has a nameplate capacity of 800,000 t/yr of ethylene and 400,000 t/yr propylene. SCG also owns another cracker at the same site — the Map Ta Phut Olefins cracker with capacity of 1mn t/yr of ethylene and 500,000 t/yr of propylene. Both the crackers are currently operating at near-full run rates.
Related news posts
California refineries required to report turnarounds
California refineries required to report turnarounds
Houston, 10 May (Argus) — Refiners in California starting in June must file maintenance schedules with the state's energy commission at least 120 days in advance of planned work, and diagnostic reports within two days of unplanned shutdowns. The new reporting requirements, part of the SB X1-2 bill passed in March 2023, take effect following an 8 May meeting of the California Energy Commission (CEC) where the measures were finalized. The CEC will now be able to gather a broad range of data from refiners and set a maximum gross gasoline refining margin in an effort to avoid price spikes at the pump. If companies identify a need for maintenance less than 120 days before the planned work, a report to the CEC is required within two business days of the discovery, according to the reporting form posted in the SB X1-2 docket. The reporting form includes space for a description of the work, unit level details and information on the expected effect of a turnaround on transportation fuel inventories at the refinery. The same information will be required for unplanned maintenance, with a report to be sent to the CEC within two business days of the initial outage or lowered rates, and within two business days of the completion of work or return to normal throughputs. The additional information will aide the CEC in analyzing refiner margins and determine whether a margin cap and subsequent penalties are warranted, according to the commission. Industry groups think many of the reporting requirements are burdensome and politically motivated , often requesting information unnecessary to determine margins. Marine import reporting on horizon At the same 8 May business meeting, the CEC moved closer to finalizing a requirement for importers of foreign and domestic refined products and renewable fuels to report shipments at least four days before delivery. The reporting form includes information on vessel routes, costs and products shipped. The CEC approved for the marine reporting requirements to be submitted to the state's Office of Administrative Law for a 10-day review before a targeted 20 May start date. By tracking import data, the CEC aims to build a more accurate picture of what drives retail fuel prices and refiner margins in the state. "In many cases these forms request information that has questionable or no relevance at all to the CEC's efforts to minimize or prevent price spikes," said Sophie Ellinghouse, general counsel for trade group the Western States Petroleum Association, during public comments on the marine reporting requirements at the 8 May meeting. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil narrows lower biofuel mix mandate in south
Brazil narrows lower biofuel mix mandate in south
Sao Paulo, 10 May (Argus) — Brazil's oil regulator ANP dialed back the reduced biofuels mandatory blend in Rio Grande do Sul state to four cities amid the recent flooding in the region. Low blending areas now apply only to the cities of Canoas, Esteio, Rio Grande and Santa Maria. The measure will still last for 30 days, starting on 4 May. ANP lowered the anhydrous ethanol blend on gasoline to 21pc from the current 27pc in the entire state earlier this week , while pushing the mandatory biodiesel mix for 10ppm (S10) diesel down to 2pc, from the usual 14pc. The agency also temporarily suspended the blending mandate for diesel with 500ppm of sulfur (S500). ANP said it decreased the exemption's coverage as it identified "that the supply situation in the rest of the state had stabilized." Rainfall in Rio Grande do Sul blocked railways and highways where biofuels are transported to retail hubs. Floods in the state have left at least 116 dead and 143 missing, according to the local government. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexican power outages enter fourth day
Mexican power outages enter fourth day
Mexico City, 10 May (Argus) — Mexican power grid operator Cenace issued its fourth consecutive day of operating alerts amid the heatwave gripping the country. Net electricity demand reached 47,321MW early today, with deployed electricity capacity slightly below at 47,233 MW, according to Cenace. Since 7 May, Cenace has declared emergency operating alerts as demand exceeded generation capacity during peak evening hours, prompting the grid operator to preemptively cut electricity supply across different states to maintain grid integrity. Power outages have lasted up to several hours in Mexico City and in major industrial states as power demand has outstripped supply by up to 1,000MW. Peak demand this week hit 49,000MW, just below last year's historic peak of 53,000MW during atypical temperatures in June. "We are very concerned about the unprecedented outages detected across 21 states, a situation that affects the normal functioning of Mexican companies," national business chamber Coparmex said. Peak electricity demand typically rises in June-July but temperatures this week have risen as high as 48°C (118° F) across some states. Mexico City reported a record high of 34.3°C on 9 May and high temperatures are forecast to continue into next week, Mexico's national weather service said. The inability of Mexico's grid to respond to increased demand is because of insufficient power generation capacity, non-profit think-tank the Mexican institute for competitiveness (Imco) said this week. "Despite the energy ministry's forecast that 22,000MW of new power capacity would enter service by 2026, only 1,483MW had entered service as of 2022" since late 2018, Imco said. President Andres Manuel Lopez Obrador's administration pledged to build new generation capacity, including five gas-fired, combined-cycle plants, but recognized this week that delays had contributed to the power outages. "We have an electricity generation deficit because some of the combined-cycle plants were delayed, but we are working on it and it will soon be resolved," Lopez Obrador said on 9 May. Lopez Obrador's government has also curtailed private sector power development during his administration. Mexico needs to upgrade and expand its transmission network, industry associations say. "In order to resolve this problem, we believe that a reopening of the electricity market to the private sector is imperative," Mexico's wind energy association, Amdee, said. Mexico has 87,130MW of installed capacity, with 39.5pc from combined-cycle gas-fired power plants and 31pc in renewable power, including wind, solar, hydroelectric, geothermal and biomass, according to the latest statistics from the energy ministry. By Rebecca Conan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil reports more off-spec biodiesel March-April
Brazil reports more off-spec biodiesel March-April
Sao Paulo, 10 May (Argus) — The rate of Brazilian biodiesel falling below required blending limits nearly tripled in March and April after the mandate was increased to 14pc, according to a government analysis. Hydrocarbons regulator ANP's Fuel Quality Monitoring Program (PMQC) found 271 instances of biodiesel below the required level between 1 March — when the blending mandate was increased from 12pc to 14pc — and 30 April. In January and February the PMQC found 97 instances of blends that did not meet the 12pc level. An increase in missed blending targets is common during transitions to higher blending levels, according to the agency, mainly due to difficulties in depleting inventories of the lower-level blend. Several plants claim that a slowdown in biodiesel withdrawals in the first four months of the year also contributed to challenges in complying with the new blending level. Some retailers' loss of market share has also been cited as an aggravating factor. In March, 154 recorded instances of non-compliance covered blending levels between 12.3pc and 13.9pc, according to ANP data. In April, there were 101 occurrences within the 12.3pc and 13.9pc range. Another eight instances of non-compliance were also recorded in each of March and April. The PMQC is a monitoring program and does not have the same effect on market behavior as inspections, according to ANP. "It is used as one of the intelligence vectors for the planning of ANP's inspection actions," the agency said. Only irregularities identified in the context of inspectios can result in fines levied against fuel distributors. By Alexandre Melo 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