Sabic to begin Geleen cracker closure this week

  • Spanish Market: Petrochemicals
  • 11/04/24

Saudi state-owned petrochemicals company Sabic will begin work at the end of this week to disconnect and permanently close one of the two steam crackers at its petrochemicals site in Geleen, Netherlands.

The steam cracker to be closed, Geleen 3, cracks naphtha/condensate feedstock with a small flexibility to crack propane and butane. The steam cracker has a nameplate ethylene production capacity of 550,000 t/yr and chemical grade propylene capacity of 260,000 t/yr. Five other units will also be shut down at the site during a three-month maintenance period, the company said, although it did not give further details.

Sabic said that the closure is "part of the strategic reorientation of the site based on careful evaluation and market conditions and enables Sabic to prepare the Geleen site for future success in a competitive market".

Sabic operates two steam crackers at Geleen. The other, Geleen 4, has a capacity of 675,000 t/yr of ethylene and 485,000 t/yr of propylene. Both crackers are over 40 years old. Sabic also operates derivative capacities at the site, including 300,000 t/yr of HDPE, 470,000 t/yr of LDPE and 600,000 t/yr of polypropylene. The site also has a 130,000 t/yr butadiene extraction unit.

Sabic is also expected to restart its steam cracker in the future at its Wilton site in Teesside in the UK with the company investing in the site to convert the cracker to 100pc ethane feedstock. The cracker was shut in 2020, when it had a capacity of 786,000 t/yr of ethylene production. This is expected to decrease to 450,000 t/yr capacity when the plant restarts production.


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10/05/24

Argus launches US low-carbon methanol pricing

Argus launches US low-carbon methanol pricing

Houston, 10 May (Argus) — Argus Media today launched pricing instruments for the US low-carbon methanol sector. Argus assessed US low-carbon methanol at $990.7/t fob USGC this week, down by $10.05/t from last week amid softening global markets. European bio-methanol prices slipped by $11/t to $1,080/t this week. The price had been as high as $1,100/t on 17 April. The calculated cost of USGC low-carbon methanol production stood at $1464.7/t, down by $16.55/t from last week. Weaker RINs cost offset higher natural gas prices this week. Low-carbon methanol is attracting widespread attention from multiple industrial sectors because it offers a decarbonization route both for the chemical industry's traditional end-uses and for reducing the sulphur content and carbon footprint of shipping, where it can be used as a bunker fuel. Rather than a specific bio-methanol, green methanol, blue methanol or an e-methanol price, the nomenclature of a comprehensive low-carbon methanol price was determined to be the best approach. In discussions with market participants, feedback indicated an initial wide approach was necessary in the emerging USGC low-carbon methanol market space. Developing technologies that are still in a nascent stage, if split, would segment the market and stifle price generation and transparency, said one trader. The all-encompassing approach allows the Argus US Low-Carbon Methanol price to develop as a standard price index. "It's the molecule that matters," the trader said. Moving forward, this would allow the price discovery process to progress as production volumes grow, and then, if necessary, adjust methodology to reflect the developing market. For more information about this new pricing service, please contact US methanol senior reporter Steven McGinn at steven.mcginn@argusmedia.com. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

JG Summit shuts Philippine cracker on technical issues


10/05/24
10/05/24

JG Summit shuts Philippine cracker on technical issues

Singapore, 10 May (Argus) — The Philippines' sole cracker operator JG Summit shut its Batangas naphtha cracker on 9 May because of technical issues. The cracker, which can produce up to 480,000 t/yr of ethylene and 240,000 t/yr of propylene, is expected to restart this coming weekend, sources close to the company told Argus . It also shut associated units — a 70,000 t/yr butadiene extraction unit and an aromatics plant with nameplate capacities of 90,000 t/yr of benzene, 50,000 t/yr of toluene and 30,000 t/yr of mixed xylenes — along with the cracker. These are also expected to return this weekend. JG Summit is keeping its downstream units running by drawing feedstock from its inventories. The producer has a 320,000 t/yr linear-low density polyethylene/high-density polyethylene (HDPE) swing plant, a 250,000 t/yr HDPE unit and a 300,000 t/yr polypropylene line at the same site. By Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Logistics, water access key for Braskem hub restart


09/05/24
09/05/24

Logistics, water access key for Braskem hub restart

Orlando, 9 May (Argus) — Brazilian petrochemical giant Braskem's plants at the Triunfo petrochemical hub have come to a standstill because of logistical and water access issues and the uncertainty surrounding when water levels will subside. Braskem had to shut down all of its operations in Rio Grande do Sul state after extreme flooding in recent days, but said its polymer inventories are safe and protected from the damage caused by heavy rainfall at its operations in southern Brazil during the past two weeks. At least 428 cities and 1.5mn people have been hit by the floods. So far, there are 107 confirmed deaths and 136 people missing, according to the state's last emergency service report. There has been no permanent damage to the industrial facilities, Braskem said today in an earnings call. But critical water intake and effluent treatment systems are submerged, rendering them inoperable. Additionally, the Santa Clara River terminal, which was preemptively closed by the local port authority, has also been flooded. "We can only assess the situation and evaluate losses once the water recedes," Braskem's chief financial officer Pedro Freitas said during the company's first quarter earnings call. Freitas said that part of the production of basic resins, such as polyethylene (PE) and polypropylene (PP), will be offset by increased production in other Brazilian states or in Mexico. Braskem has been operating under its nameplate capacity. The situation is different at Braskem's 260,000 t/yr bio-based PE plant. There is stock available abroad, as the majority of this product is earmarked for export, Freitas said. 1Q production and sales Braskem's domestic resin sales fell by 5pc in the first quarter from a year prior, with volumes also falling in the US and Europe but growing in Mexico. Domestic sales declined on the company's decision to prioritize sales with higher added value in the period, Braskem said in its preliminary first-quarter production and sales report. Domestic resin sales fell to 839,000 metric tonnes (t) in the first quarter, from 884,000t a year earlier. On the other hand, the company's Brazil resin sales rose by 7pc from the prior quarter on higher demand for polyethylene (PE) and polypropylene (PP) because of inventories rebuilding in the supply chain. In Mexico, polyethylene (PE) sales through the Braskem Idesa joint venture rose by 6pc to 209,000t in the period, primarily because of the higher availability of products for sale in the period. Sales rose by 17pc from the fourth quarter of 2023 mainly thanks to seasonality and replenishment of PE stocks in the fourth quarter of 2023. First quarter polypropylene (PP) sales hit 508,000t, according to consolidated numbers for the US and Europe. That is a 2pc drop from a year earlier and down by 1pc from the previous quarter. The declines are mainly because of better handling of inventory, which partially offset the lower availability of products for sale in the US thanks to an unscheduled shutdown in the region. Braskem reported a $270mn loss in the first quarter, swinging from a profit of $46.9mn in the same period last year, largely because of additional provisions related to the Alagoas state geological event . By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

RES licences BlueAlp pyrolysis technology


09/05/24
09/05/24

RES licences BlueAlp pyrolysis technology

London, 9 May (Argus) — Italian waste management company Recupero Etico Sostenibile (RES) will license pyrolysis chemical recycling technology from Netherlands-based firm BlueAlp, to build a 20,000 t/yr plant in Pettoranello del Molise, Italy, to process difficult to recycle plastic waste. The firms signed an engineering, procurement and fabrication (EPF) agreement this week, with BlueAlp to supply a technology licence and manufacture the plant equipment at its factory in the Netherlands before shipping to the site in Italy. BlueAlp chief executive Valentijn de Neve told Argus that fabrication is expected to take around one year, with the plant expected to begin operating by mid-2026. RES will own and operate the plant alongside its existing mechanical recycling facilities in Pettoranello del Molise. It recently commissioned a new advanced 40,000 t/yr sorting centre at the same site which will provide feedstock to the pyrolysis plant. Positive step A licence agreement with a waste management company should be seen as an important step for the pyrolysis industry, de Neve said, as it demonstrates that such a company sees chemical recycling as complimentary to its existing waste management activities. UK-based waste management firm Viridor bought chemical recycling firm Quantafuel last year, but de Neve said that the licensing model is more affordable and accessible to a wider group of waste management firms. Involvement from such companies in addition to petrochemical producers — which have been the most frequent early adopters in chemical recycling — can help to accelerate the development of the industry, he said. The European petrochemical sector is facing economic challenges, amid tough market conditions globally, a generally higher cost base in Europe and the need for the industry as a whole to invest in renewing or replacing ageing production units to meet ever stricter environmental targets. Saudi Arabia's Sabic and ExxonMobil have both announced their intention to close European steam cracker capacity in the past month, and LyondellBasell launched a strategic review of its European olefins and derivatives assets on 8 May, raising questions around the sale or closure of some of its facilities. But de Neve played down any risk to investments in chemical recycling, saying that many market participants continue to see circularity as a key component of their competitiveness. Indeed, LyondellBasell said itself that its investments in a commercial-scale plant to convert plastic waste into liquid raw materials, and its development of a circularity hub in Cologne will continue as planned. De Neve also said the recent progress of the Packaging and Packaging Waste Regulation (PPWR) — which will set mandatory recycled content targets for plastic packaging — through the EU parliament, and the parliament's rejection of an objection to the European Commission's support for fuel use-exempt mass balancing rules, are positive developments for chemical recycling. As legislation has developed, companies have been more keen to speed up progress on new pyrolysis projects, he said. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Polymers stocks safe in storm-hit Brazil: Braskem


08/05/24
08/05/24

Polymers stocks safe in storm-hit Brazil: Braskem

Orlando, 8 May (Argus) — Brazilian petrochemical giant Braskem said its polymer inventories are safe and protected from the damage caused by heavy rainfall at its operations in southern Brazil during the past two weeks. The inventories include polyethylene (PE), polypropylene (PP), ethylene and basic chemicals. Braskem had to shutdown all of its operations in Rio Grande do Sul state after the extreme weather event in recent days , the company told Argus on Wednesday, on the sidelines of the NPE Plastics fair in Orlando, Florida. The shutdown was completed safely, with no harm to the company's plants at the Triunfo petrochemical hub, which represents about 30pc of its ethylene production capacity in Brazil. Braskem is reevaluating its supply chain strategy to deal with the lack of production at the Trinfo hub. This includes serving its clients with PE produced at other company hubs in Brazil and Mexico, where it owns PE manufacturing joint venture Braskem Idesa. The same goes for PP and polyvinyl chloride (PVC), with other production hubs serving customers if the weather situation does not improve in the coming days. Operations at Braskem's 260,000 t/yr bio-based PE plant will restart as soon as conditions improve, the company said. No fatalities occurred at the company's operations, but part of its workforce has lost their homes and are being taken care of by Braskem, according to the company. State governor Eduardo Leite called the the flooding "the worst disaster in Rio Grande do Sul's history." There are 100 people dead and 128 missing, according to the state's civil defense. Braskem said it will resume its operations gradually, after weather conditions normalize and logistics in the state such as airports, railroads and flooded roads resume. Braskem is the largest producer of thermoplastic resins in the Americas and a leader in biopolymer production. By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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