ppPLUS - etasca Collaboration

#olefins #alphaolefins  #propene  #butenes  #hexenes  #linearalphaolefins  #dimerization  #oligomerization 

From website: 

Located in Durazno, Uruguay, NovaSAF 1 will produce over 350,000 gallons of ASTM Certified SAF annually, marking a breakthrough in cost-effective, scalable clean fuel. The project is backed by long-term feedstock and site agreements with Estancias del Lago (EDL), one of Uruguay's largest dairy and agri-energy operations. Permitting and equipment sourcing is ongoing alongside front-end engineering work led by Kent, a world leader in SAF project development and execution.

Worley, the company, has been added.

#worley  #australia  #engineering 

The description of the reactive distillation method for producing MTBE has been developed.

#mtbe  #etbe  #reactivedistillation  #catalyticdistillation  #gasolineadditive  #oxygeneatedadditive  #highoctanegasoline  
#lummus  #axens  #honeywell  #uop  #energyandsustainabilitysolutions  #indoramaventures 

The description of the Catalytic Reforming process has been updated.

#catalyticreforming  #catalyticreformer  #naphthareforming  #highoctanegasoline #reformate 

#uop #reliance  #dta  #refinery  #merox  #causticprocess 

A generic technology with many details has been added.

#aminetreating  #aminesweetening  #acidgas  #sourgas  #acidgasremoval 

The description of bisphenol A (main product) has been updated.

#bisphenola  #bpa  #polycarbonate  #epoxy 

#so2 #sulfudioxide 

From Santos website:

Santos Limited (ASX:STO) (Santos) announces that on 13 June 2025 it received a non-binding indicative proposal from a consortium led by XRG P.J.S.C., a subsidiary of Abu Dhabi National Oil Company and including Abu Dhabi Development Holding Company (ADQ) and Carlyle (the XRG Consortium).

 #Sustainability #hydrogen 

The description of the UOP Isomar process for xylenes isomerization has been developed.

#uop  #honeywell  #isomar  #xylenes  #mixedxylenes  #orthoxylene  #paraxylene  #metaxylene  #isomerization  #aromaticscomplex 

Oct 28, 2005 -- ORLEN completed its biggest petrochemical investment

• PKN ORLEN officially completed the Olefin II revamping, an investment which has allowed the company to double its ethylene and propylene streams.
• The Olefin II plant ../.. was constructed in 1977-1980 based on Lummus technology. Initially, the plant capacity equaled 300,000 tonnes of ethylene and 125,000 tonnes of propylene per annum.
• Between 1994-1995 the plant was revamped and annual volumes increased to 360,000 tonnes of ethylene and 135,000 tonnes of propylene.
• The revamping of the Olefin II plant has marked the end of the Olefin I plant, which was constructed in 1971.
• The latest investment translates into increased annual ethylene volumes, from 360,000 to 700,000 tpa, and propylene from 135,000 to 380,000 tpa.

June 2, 2006 -- UOP Selected By Poland's PKN For New Aromatics Project

• PKN Orlen has selected UOP to supply technology, basic engineering services and equipment for an aromatics project to be installed at PKN's Plock Refinery in Poland.
• The new plant will produce 400 kMTA (thousand metric tons per annum) of para-xylene, which is a key ingredient in the production of polyester for fabric and PET (polyethylene terephthalate) chips for carbonated soft drink and water bottles.
• UOP will design a Parex(TM) process unit to extract pure para-xylene, an Isomar(TM) process unit to convert other xylenes to para-xylene, and a Tatoray(TM) process unit to convert toluene and heavy aromatics to xylenes.
• UOP has been working with PKN and its predecessor companies, Petrochemia Plock and MZRiP since 1974 when UOP licensed a hydrofluoric acid (HF) alkylation process unit, which is used in the production of high-octane gasoline.
• Since that time, UOP has licensed two CCR Platforming process units, a Penex process / DIH (deisohexanizer) unit, a Unicracking process unit, and an FCC (Fluid Catalytic Cracking) process unit at the Plock Refinery.

Sept. 13, 2019 -- PKN Orlen lets contract for Plock refinery

• PKN Orlen SA has let a contract to Honeywell UOP LLC to provide process technology designed to increase production of ethylene and aromatics, as well as improve flexibility of gasoline production, at its 327,300-b/d integrated refining and petrochemical complex in Plock, Poland.
• As part of the project, which is currently in the basic engineering stage, Honeywell UOP will license its proprietary MaxEne process, which separates full-range naphtha into a stream of normal paraffins ideal for steam crackers because they produce high yields of light olefins, and a second stream of isoparaffins, naphthenes, and aromatics ideal for catalytic reforming units because they produce high yields of aromatics.

May 13, 2020 -- PKN Orlen lets contract for new petrochemical unit at Plock complex

• PKN Orlen has let a contract to Badger Licensing LLC to provide technology for a new unit to be included as part of a project to expand phenol production capacities at its 327,300-b/d integrated refining and petrochemical complex in Plock, Poland
• As part of the May 12 contract, Badger Licensing will deliver the basic engineering design package as well as licensing of its proprietary technology to make isopropanol from acetone for a grassroots isopropanol unit.

Jan 20, 2022 -- Scientific Design Company awarded EO/EG plant license by PKN Orlen

• Scientific Design Company announces that PKN Orlen has selected Scientific Design’s EO/EG technology for olefins expansion project in Plock, Poland. Scientific Design was awarded the project as part of the Hyundai Engineering and Tecnicas Reunidas EPC consortium.
• The award includes the license of process technology, the provision of a process design package, technical assistance and start up services and the initial charge of Scientific Design’s ethylene oxide catalyst.
• Completion of the project is scheduled for 2024, with production expected to begin early 2025.

Feb 25, 2020 -- PKN ORLEN Licenses Honeywell Technology For New Phenol Complex In Poland

• PKN ORLEN plans to use the UOP Q-Max™ and Phenol 3G technologies to produce 200,000 metric tons per annum of phenol at its facility in Płock, Poland. 
• As part of the project, UOP will provide a cumene unit and a phenol unit with alpha methyl styrene hydrogenation. 
• UOP’s Q-Max process converts benzene and propylene into high-quality cumene at low benzene-to-propylene ratios.
• The UOP 3G Phenol unit converts cumene into phenol.

Feb 27, 2020 -- PKN Orlen approves new unit for Plock refining complex

Hydrocracking, hydrotreating projects

• An upgrade of the refinery’s hydrocracking unit is under way that, once completed, will increase diesel oil production by 100,000 tpy, PKN Orlen said.
• The operator said it is also executing a separate project to modernize a diesel hydrotreater at the refinery as part of a plan to boost diesel oil production by 150,000 tpy.

Aug 14, 2020 -- Plock Refinery Upgrade

Visbreaker

• A new visbreaking unit is being constructed at the Plock facility to improve the operational efficiency of the refinery. With a design capacity of 3,300t of feedstock a day, the unit will increase the overall petrol and diesel yields of the refinery.
• The visbreaking technology for the unit is licensed from Shell and CB&I Nederland B.V.
• The construction of the visbreaking unit was started in July 2020 with its commissioning expected in December 2022. The total investment for the visbreaking unit is approximately £202m ($252m).
• The visbreaking unit is expected to increase the fuel yields from crude processing by 2% while increasing the annual EBITDA of the PKN Orlen’s refinery by £84m ($105m).
• The new unit will process the vacuum residue to produce petrol and diesel. The vacuum residue was earlier processed to produce heavy fuel oils and asphalt.

Power Facility

Power facility upgrade

• The turbine generator set No. 1 (TG1) at PKN ORLEN’s combined heat and power (CHP) plant at Płock will also be replaced as part of the refinery upgrade and modernisation programme. The new turbine generator set, scheduled to come online in September 2021, will have a capacity of 65MW.
• The Plock CHP plant comprises seven turbine generator sets. The existing 55MW-capacity TG1 set, which started operation in 1968, has completed maximum service life of approximately 300,000 hours. The TG2, TG3, TG4, and TG5 sets that are approaching maximum service life are also expected to undergo upgrades and modernisation after the TG1. The TG6 and the TG7 sets were built in 2001 and 2017 respectively.
• The Płock CHP plant is claimed to be the largest industrial unit of its kind in Poland. The plant’s electrical capacity is 413.6MW and thermal capacity is 2,149MWt. The plant supplies electricity and heat to the refinery as well as outside customers. The new TG1 will increase the CHP plant’s heat and power cogeneration efficiency by 10%.
• GE Steam Power, a unit of General Electric (GE), was contracted to supply a new steam turbine generator set for the Plock CHP plant in August 2019. The contract also includes providing Predix Asset Performance Management (APM) cloud-based software, as well as a 10-year service agreement. The steam turbine and the generator will be manufactured at the GE plants in Elbląg and Wrocław respectively.

Vacuum-Resid Hydrodesulfurization

• Axens entered into an agreement with PKN Orlen to provide a license and the basic engineering design for the vacuum residue hydro desulphurisation (HOG) unit upgrade at Plock refinery in May 2020.

Jul 27, 2021 -- KBR Awarded Multiple Technology Contracts by PKN ORLEN

• KBR, Inc. announced that it has been awarded technology licensing contracts by PKN ORLEN (PKN) for KBR’s leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN’s Bottom-of-the-Barrel project for its Plock Refinery in Poland.
• Tthe SDA unit will be based on KBR’s market-leading supercritical solvent recovery ROSE® technology and will help PKN ORLEN achieve its operating objectives, producing cleaner upgraded feedstock for the new RFCC unit. 
• For the RFCC unit, KBR will provide its innovative, dual-riser MAXOFIN℠ technology, which uses conventional FCC operating conditions, KBR’s proprietary catalyst additives and state-of-the-art equipment to help PKN ORLEN maximize propylene production from traditional FCC feedstocks and naphtha streams.

Aug 9, 2021 -- KBR Awarded Ethylene Technology Contract by Hyundai Engineering and Técnicas Reunidas for PKN ORLEN Olefins Complex

• Under the terms of the contract, KBR will provide technology license, basic engineering design, and proprietary equipment for its leading ethylene technology, Selective Cracking Optimum Recovery (SCORE™), for PKN ORLEN’s Olefins Complex III Project.

The detailed description of the UOP Parex technology for para-xylene separation has been completed.

#px  #paraxylene  #pxseparation  #parex  #uop  #honeywell  #mixedxylenes 

The Korean Economic Daily

South Korea’s leading petrochemical firms are reeling from Chinese oversupply amid an industry slump.

Image: Lotte Website

Lotte Chemical Corp. and HD Hyundai Co. are in talks to consolidate their naphtha cracking operations in South Korea’s Daesan petrochemical complex – marking the first significant self-initiated restructuring move among domestic players facing intense pressure from Chinese oversupply.

According to multiple investment banking sources familiar with the matter on Wednesday, the two companies began negotiations to merge their respective naphtha cracking center (NCC) assets in Daesan, South Chungcheong Province.

The companies are currently working with a major accounting firm to assess the value of the assets and determine the fair value of a prospective joint venture, sources said.

The Lotte-HD Hyundai negotiations began earlier this year, following failed attempts by Lotte Chemical to explore similar consolidation efforts with other domestic producers such as LG Chem Ltd. and DL Chemical Co.

Cedar Creek facility in Fayetteville, North Carolina | Alpek, S.A.B. de CV

May 30, 2025 | Monterrey, N.L., Mexico

Alpek, S.A.B. de C.V. (Alpek), a leading global polyester producer headquartered in Mexico, announced it will permanently cease operations at its Cedar Creek facility in Fayetteville, North Carolina, effective July 31, 2025. The decision, part of Alpek’s long-term strategy to optimize its global footprint, will result in the loss of approximately 180 jobs at the site.

The Cedar Creek plant, acquired by Alpek in 2001, has an installed capacity of 170,000 tons of PET resin and about 35,000 tons of recycled PET (rPET) flake production annually. The closure is expected to generate around $20 million in annualized savings for Alpek by 2026 as the company shifts focus to its more competitive and scalable assets.

Alpek stated that it will reallocate production to other facilities within its regional and global network to continue serving customers with high-quality and sustainable polyester solutions. The company emphasized that this move is part of broader cost-reduction efforts, reinforcing its long-term vision to strengthen its core business and financial position.

The Fayetteville closure follows recent shutdowns at other Alpek sites, including its Cooper River plant in South Carolina and the Monterrey polyester filament plant in Mexico. After the closure, Alpek’s Columbia site in Gaston, South Carolina and Pearl River site in Bay St Louis, Mississipi, will remain the only PET manufacturing facilities of Alpek Polyester Americas.

Alpek has not disclosed where the Cedar Creek production will be reallocated, nor has it commented on the impact to its corporate offices in Charlotte and Wilmington. The company has expressed its intent to work with local employment agencies to support affected workers during the transition.

#dak  #alpek  #polyester  #pet  #mexico  #fayetteville  #cedarcreek  #rpet  #recycledpet  #cedarcreek  #pearlriver  #petmanufacturing 

#alpek #polyester  #americas  #dak  #ississipi  #baystlouis #dak 

INEOS' Project One site in Antwerp has already received its first major ‘landmark’: the ethane tank | INEOS, 5 June 2024

Antwerp, Belgium – June 10, 2025

INEOS has officially announced that its landmark €4 billion Project ONE ethane cracker in the Port of Antwerp has reached 70% completion, marking a major milestone for what is described as Europe’s largest chemical investment in a generation.

The announcement was made during a site visit by Belgian Prime Minister Bart De Wever, hosted by INEOS Chairman Sir Jim Ratcliffe. The event highlighted the scale and significance of the
project, which now employs over 2,500 workers on site as construction activity peaks.

"The visit marks a significant milestone for the project, which has now reached 70% completion and employs over 2,500 people on site. Construction is progressing at full pace, with major equipment, including giant furnaces and modular plant components, already installed. Civil works are nearing completion, and utility integration is well underway,” the official INEOS statement reads.

Commissioning and Outlook

Commissioning of Project ONE is scheduled to begin in autumn 2025, with mechanical completion anticipated by the end of 2026. Start-up of the facility is targeted for early 2027. The project is expected to create 450 high-quality permanent jobs and thousands more during the construction phase.

Sustainability and Innovation

Project ONE is designed to set new standards for sustainability in the European chemical sector. The ethane cracker will have a carbon footprint less than half that of the best-performing steam crackers in Europe, thanks to advanced technologies such as ultra-low NOx burners and the capacity to operate on low-carbon hydrogen from day one. The facility will be able to meet 60% of its heat demand with low-carbon hydrogen, with the potential to switch to 100% hydrogen as supply becomes available.

Strategic Importance

Sir Jim Ratcliffe emphasized the project’s strategic importance for Europe’s industrial future, noting that Project ONE is the first new cracker in Europe in a generation. Prime Minister Bart De
Wever praised the project’s progress and its role in reducing CO₂ emissions while supporting the region’s prosperity.

Conclusion

With 70% of construction completed and commissioning on the horizon, Project ONE is on track to transform the industrial landscape of Antwerp and set a benchmark for sustainable chemical production in Europe. The project continues to attract attention as a model for innovation, sustainability, and economic growth in the region.

#cracker  #steamcracker  #gascracker  #projectone  #ineos  #belgium  #antwerp  #technip 

Fujian Wanjing Petrochemical has been created and its newly started up PDH plant has been added. 

#fujian  #fujianwanjing  #wanjingpetrochemical  #pdh  #catofin  #lummus  #pdh  #fujianzhongjing  

Fujian Zhongjing Petrochemical Co. created, propane terrminal and  production site have also been added as well as polypropylene production plants and capacities.

#fujian  #fujianzhongjing  #china  #polypropylene  #spheripol  #lyondellbasell  #bopp #propane  #cryogenictank  #pdh  #propylene 

Fujian Zhongjing Petrochemical Group has been added.

#fuzhou  #fuzhouzhongjingpetrochemical  #fzpgc  #china  #pdh  #polypropylene  #bopp  #flexiblepackaging 

Petro Oxo Nusantara and its production site have been created.

#pon  #petrooxonusantara  #petrotuban  #pertamina  #indonesia  #java  #oxoalcohols  #syngas 

The Berre petrochemical plant is one of the sites involved in exclusive sales negotiations between LyondellBasell and Aequita | PHOTO: Frédéric SPEICH, La Provence

LyondellBasell’s (LYB) agreement to divest four major European production sites to AEQUITA marks a pivotal moment not only for the company but for the continent’s entire petrochemical sector. The transaction, encompassing plants in France (Berre), Germany (Münchsmünster), the UK (Carrington), and Spain (Tarragona), is emblematic of a broader industry shift as producers grapple with persistent overcapacity, high costs, and the need for structural transformation.



LyondellBasell Transaction Footprint | Jun 5, 2025 | LyondellBasell Investors Presentation

Strategic Rationale: From Rationalization to Refocus

LYB’s decision to sell these assets is rooted in a deliberate strategy to sharpen its operational focus and enhance profitability. The divested sites, which together account for roughly 1.4 million tonnes per year of polyolefins and olefins output, have delivered only modest returns while consuming significant capital—averaging €110 million in annual capex from 2020 to 2024. By transferring these facilities to AEQUITA, LYB expects to reduce its fixed costs by approximately €400 million per year and reallocate capital toward its most competitive and sustainable European operations.

Notably, this move is not an isolated event. LYB’s review initially spanned six sites, including Brindisi (Italy)—where one polypropylene plant has already been shuttered—and Maasvlakte (Netherlands), a joint venture (with Covestro) asset not included in the AEQUITA deal. This highlights the depth of LYB’s strategic review and underscores the scale of rationalization underway across the region.

Industry Context: A Wave of Closures and Consolidation

LYB’s asset sale is part of a much larger trend. European petrochemical producers are facing unprecedented headwinds: high energy costs, aging infrastructure, tightening environmental regulations, and lackluster demand. Other industry leaders, such as ExxonMobil, Sabic, and Indorama Ventures, have also closed or downsized European operations in the past year. Ultimately, up to half of the continent’s ethylene crackers could ultimately face closure, as the economics of small, old plants become increasingly untenable.

This rationalization wave is not simply a response to cyclical weakness but a recognition of structural change. Freight disruptions and temporary supply shocks have only delayed the inevitable need for consolidation and transformation.


LyondellBasell' Assets for Sale | Jun 5, 2025 | LyondellBasell Investors Presentation

Deal Structure and Financial Terms

The transaction with AEQUITA is structured to enable a smooth transition:

• LYB will contribute €265 million (of a €275 million carve-out support fund) to facilitate the separation, with AEQUITA providing €10 million.
• LYB stands to receive up to €100 million in earnouts over three years.
• AEQUITA will assume approximately €150 million in pension and employee liabilities, as well as all environmental obligations.
• The deal is expected to close in the first half of 2026, subject to regulatory and works council approvals.

Importantly, LYB’s exit from these sites will also spare it from the need to invest hundreds of millions in decarbonization upgrades, particularly at Berre and Münchsmünster, where meeting 2030 emissions targets would have required major capital outlays.

LYB’s European Commitment: Core Sites and Circular Ambitions

Despite the high-profile asset sale, LYB has made clear that Europe remains a core region. The company’s retained portfolio includes technologically advanced and economically advantaged sites in Ferrara, Frankfurt, Ludwigshafen, and Rotterdam, as well as integrated supply hubs in Cologne and specialty operations in APS. These facilities are positioned to support LYB’s ambitions in circular and low-carbon solutions, including advanced recycling (MoReTec) and the CirculenRecover product line.

LYB’s future European footprint will be more focused, with a higher share of capacity in cost-advantaged regions (U.S. and Middle East), rising from 61% to 68% post-transaction. The company is also stepping up investment in recycling and circular economy initiatives at its core sites, aiming to deliver 2 million tonnes per year of recycled and renewable polymers by 2030.

Market Implications and Competitive Dynamics

LYB’s withdrawal from these European assets will reshape the regional supply landscape, opening opportunities for Middle Eastern and Asian exporters to increase their market share. The move also contrasts with the strategies of some competitors, such as SABIC, which is expanding its footprint in Asia. For LYB, the divestment enables a sharper focus on direct customers, brand owners, and high-growth segments, while freeing up resources for innovation and portfolio upgrades.

Berre Petrochemical Cluster Process Flow Diagram | ppPLUS Interactive Visualization Tool

Outlook: More Closures Ahead

The European petrochemical sector is entering a “new normal” characterized by ongoing rationalization. With many crackers and polymer plants facing existential threats due to age, size, and economics, further closures are likely. LYB’s asset sale could be a bellwether for additional portfolio actions across the industry.

How ppPLUS Can Help

For investors and stakeholders evaluating LyondellBasell’s divested assets, Portfolio Planning PLUS (ppPLUS) offers tailored economic modelling capabilities to assess risks, opportunities, and transaction value. ppPLUS specializes in developing site-specific models that integrate:

Asset configurations: Detailed analysis of production units, technologies (e.g., Steam Crackers at Berre and Münchmünster, Novolen Gas-Phase PP at Tarragona, Hostalen ACP HDPE at Münchsmünster, Lupotech T LDPE and Spheripol Bulk-Slurry PP at Berre), and feedstock flexibility.
Capacity utilization: Scenario-based projections accounting for market demand, regulatory constraints, and operational synergies.
 Financial and operational metrics: Capex/opex forecasting, decarbonization cost avoidance, and liability assumptions (e.g., pensions, environmental obligations).

Using ppPLUS’s interactive platform, users can:

• Generate gross margin models for individual sites or combined portfolios.
• Simulate the impact of energy price volatility, carbon pricing, and feedstock availability.
• Benchmark asset performance against industry standards and regional competitors.

ppPLUS’s tools align with global best practices in economic modelling, including compliance with frameworks like the UK’s TAG M5.3 supplementary economic modelling guidelines for rigorous validation and scenario testing.

Explore ppPLUS’s asset-specific insights:

• Berre, France
• Münchsmünster, Germany
• Carrington, UK
• Tarragona, Spain

Contact ppPLUS to leverage its expertise in petrochemical asset valuation, strategic due diligence, and regulatory risk assessment for informed decision-making in this transformative transaction.

#portfolioplanningplus  #ppplus  #transactions  #divestment  #marginanalysis  #economicmodelling  #capacityutilization  #opex  #capex  #lyondellbasell  #sabic  #indorama  #ineos  #exxonmobil  #aequita #aramco 

Mass Balance has been completed.

#lyondellbasell  #carrington #polypropylene 

Mass Balance has been completed.
Asset capacities and technologies have been identified.

#lyondellbasell  #tarragona  #spain  #novolen  #polypropylene 
 

LyondellBasell investor presenation

Nov 29, 2022 -- Screenshot from Dalian Refinery video | Youtube

PetroChina is set to shut down the final operational crude unit at its largest refinery in northern China, the Dalian Petrochemical Company, by June 30, 2025. This move marks the first complete closure of a state-run refinery in China, according to industry sources.

The closure involves the No.1 crude unit, which has a capacity of 200,000 barrels per day. Following this, the refinery’s secondary processing units are scheduled to be phased out in July. The Dalian plant, with a total capacity of 410,000 barrels per day, accounts for nearly 3% of China's total refining capacity and primarily processes Russian ESPO blend crude from Siberian fields.

This decision aligns with PetroChina’s long-term strategy to relocate and replace the Dalian facility with a smaller, more modern plant at a new location. The shutdown process began in late 2023, and the company will start reducing its crude oil and feedstock inventories this month, aiming to clear all product stocks by the end of August.

A spokesperson for PetroChina did not immediately respond to requests for comment. The final investment decision for the proposed new refinery complex on Changxing Island, about two hours from downtown Dalian, has yet to be made.

This development follows earlier reports confirming PetroChina’s intention to close the Dalian refinery by mid-2025 as part of broader restructuring efforts within China’s refining sector.

#dalian   #refinery   #cnpc   #petrochina   #crudeoil   #espo 

AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering 

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde  #univation  #lyondellbasell  #chevronphillips  #cpchem  #sibur  #amurgcc  #sinopec 
#steamcracker  #ethyleneplant  #amur  #russia  #unipolpe  #martech  #slurryloop  #gasphasepe  #spheripol  #polyethylene  #polypropylene  #ethane  #lpg 

#amurgcc #sibur  #sinopec  #amurcomplex  #russia  #china 

Eastman’s Kingsport, Tenn. plant was initially estimated to cost $250 million over two years, but recent financial filings suggest the price tag has crept upward. | William Griffith/Shutterstock

Eastman Chemical Company has positioned itself as a leader in “molecular recycling,” focusing on advanced chemical processes to recycle hard-to-recycle polyester plastics. The company’s flagship technology, known as Polyester Renewal Technology (PRT), uses methanolysis to break down polyester waste into its original monomers, enabling the production of new, virgin-quality plastics from waste streams that cannot be recycled mechanically. This article reviews the status of Eastman’s key projects in the United States and France, the technology used, and the specific challenges—both technical and regulatory—facing these ambitious initiatives.

Existing Facilities and Technology

Eastman’s molecular recycling facility in Kingsport, Tennessee, has been operational since early 2024 and is claimed to be profitable as it is already generating revenue. This plant serves as the model for Eastman’s subsequent molecular recycling projects and showcases the company’s advanced PRT. At steady-state capacity, the Kingsport asset will recycle 110,000 metric tons of polyester waste annually and achieved sustained operating rates of ~70% capacity by mid-2024. While Eastman resolved a mechanical issue in July 2024 and continues ramping production toward its full capacity target, current output remains below nameplate levels. Kingsport facility is recognized as a benchmark for the company’s future sites.

At the core of this technology is the chemical recycling of polyester waste—primarily polyethylene terephthalate (PET), commonly found in packaging, textiles, and various consumer products. The facility uses methanol under controlled heat and pressure to break down PET into its original monomers: dimethyl terephthalate (DMT) and ethylene glycol (EG). Once separated and purified, these monomers are used as raw materials to manufacture new, virgin-quality polyester products. The plastics produced through this process are indistinguishable in quality and performance from those made with fossil-based feedstocks, supporting the development of a true circular economy for polyester materials.



Eastman Polymerisation Renewal Technology (PRT) description by Portfolio Planning PLUS

One of the key advantages of Eastman’s methanolysis-based recycling is its ability to process types of plastics that are unsuitable for traditional mechanical recycling. This includes colored, opaque, multilayer, and contaminated PET waste—materials that typically end up in landfills or are incinerated. By converting these challenging waste streams back into high-value inputs for new products, Eastman’s technology significantly reduces plastic waste and the environmental impact associated with virgin plastic production. According to Eastman, the Kingsport facility’s process results in greenhouse gas reductions of 20–50% compared to conventional production methods using fossil resources.

Projects in Development

Longview, Texas (USA)

Eastman is planning a second molecular recycling facility in Longview, Texas, which is expected to become operational in 2028. The facility will use the same PRT (methanolysis) as the Kingsport plant, with added innovations such as thermal batteries and on-site solar power to further decarbonize the PET production process. Designed to process approximately 110,000 metric tons of hard-to-recycle plastic waste annually, the Longview project is part of Eastman’s broader $2.25 billion investment in new recycling infrastructure. The facility is anticipated to create around 1,000 temporary construction and trade jobs, as well as 200 permanent full-time positions once complete.

A significant development affecting the Longview project occurred on 30 May 2025, when the Trump administration canceled a $375 million federal grant that had been allocated to support the facility’s construction. This grant, which was part of a larger Department of Energy initiative, was initially approved under the Biden administration in March 2024 but was revoked as part of a broader rollback of renewable energy and decarbonization funding. The estimated total cost of the Longview project is more than $1.2 billion. Despite this setback, Eastman has publicly maintained its commitment to the project as a key component of its global circularity strategy, though the loss of federal funding introduces new financial and logistical challenges for its timely completion.

Port-Jérôme-sur-Seine, Normandy (France)

A third molecular recycling facility using is planned to be built in the Port-Jérôme industrial zone in Normandy, France, which Eastman announced on March 15, 2024. The facility is designed to be developed in two phases: Phase I aims to recycle more than 110,000 metric tonnes of hard-to-recycle polyester waste annually, while Phase II is planned to expand capacity to over 200,000 metric tonnes per year. The plant will also use PRT, which breaks down polyester plastics into their monomers for reuse.

For Phase I alone, Eastman has planned an investment exceeding $1 billion. The project is expected to create 350 direct jobs and 1,500 indirect jobs, including 500 positions during the construction phase. To secure a steady supply of feedstock, Eastman has signed agreements with partners such as Interzero Plastics Recycling to provide PET household packaging waste for the facility. Additionally, several global brands—including LVMH Beauty, Estée Lauder Companies, Clarins, Procter & Gamble, L’Oréal, and Danone—have signed letters of intent for multiyear contracts to supply the plant.

This project is currently on hold as Eastman closely tracks the evolving regulatory landscape within the European Union regarding plastic waste and packaging. However, more crucially, according to a private source, the project’s future is fundamentally threatened by the absence of any plan to supply electrical power to the plant before 2028 at the earliest—a factor that places its timely realization in serious jeopardy, regardless of regulatory developments.

Outlook: Expansion at Risk Due to Regulatory, Funding, and Power Supply Issues

Eastman’s molecular recycling initiatives face significant uncertainty, as its two flagship development projects—the Longview, Texas facility and the Normandy, France plant—are both under threat from major external challenges. The Texas project is at risk due to the loss of critical federal funding, while the Normandy facility faces not only ongoing regulatory uncertainty in the EU but, more crucially, a lack of any planned electrical power supply to the site before at least 2028. If these obstacles are not resolved, both projects could ultimately be cancelled. Eastman’s ability to realize its circular economy ambitions now depends on overcoming these substantial financial, regulatory, and infrastructure barriers—an outcome that remains highly uncertain in the current environment.

#eastman  #circularity  #recycling  #molecularrecycling  #chemicalrecycling  #plasticwaste  #mixedplasticwaste  #polyesterrecycling  #depolymerization  #methanolysis  #longview  #kingsport  #portjerome  #Sustainability

#eastman #longview  #texas  #usa #steamcracking  #kbr 

Eastman Chemical Company has been added.

#eastman  #eastmanchemical  company #usa  #kingsport  #tennessee 

#qatar #qatarenergy  #qatarshell  #gtl 

Gruppo API (Italiana Petroli) Fuel Station

Italiana Petroli (IP), a leading Italian oil refiner and fuel distributor, is currently the subject of a competitive bidding process involving three major international groups: Azerbaijan’s state oil company SOCAR, Swiss commodity trader Gunvor, and the Abu Dhabi-based Bin Butti Group. Final offers for the company are expected by the end of May 2025, with SOCAR and Gunvor seen as the main contenders due to their longer involvement in the process, while Bin Butti joined more recently and is considered less likely to win.

IP, owned by the Brachetti Peretti family, operates around 4,600 fuel stations and manages a refining capacity of about 200,000 barrels per day, making it one of Europe’s largest private refining and fuel retail groups. Its main assets include the Ancona refinery (focused on bitumen), the SARPOM refinery in Trecate (producing fuels and jet fuel), and a tolling agreement for the Alma refinery in Ravenna. The company is valued between €2.3 and €2.5 billion, reflecting strong financials with nearly €500 million in core profit and over €400 million in net cash at the end of 2024.

The sale comes amid significant changes in the European refining sector, with private investors increasingly selling to commodity traders and state-backed companies. The winner of the IP auction will gain control over a vast network of fuel stations and significant refining capacity, which could influence fuel supply and pricing in Italy and the region. SOCAR’s bid would strengthen Azerbaijan’s presence in the European energy market, while Gunvor aims to expand from trading into full-scale refining and distribution. The outcome of this sale is expected to have a major impact on the structure of Europe’s refining industry as it adapts to new market and regulatory pressures.

#gunvor  #socar  #italianapetroli  #gruppoapi  #refinery  #ancona  #ravenna  #alma  #fuels  #fuelstations  #jetfuel  #bitumen 

#ancona #italy  #refinery  #gruppoapi  #italianapetroli 

Description of the Bajo Grande refinery has been updated.

#petroleos  #venezuela  #pdvsa  #bajogrande  #refinery  #crp 

Description of the Cardón refinery has been updated.

#petroleos  #venezuela  #pdvsa  #cardon  #refinery  #crp 

Chevron Phillips Chemical's Singapore HDPE complex | Credit: Chevron Phillips Chemical Co.

Chevron Phillips Chemical (CPChem) has agreed to sell its entire stake in Chevron Phillips Singapore Chemicals (CPSC), a high-density polyethylene (HDPE) manufacturing joint venture located on Jurong Island, Singapore. The buyer, Aster Chemicals and Energy—a joint venture between Indonesia’s Chandra Asri and global commodities trader Glencore—will acquire CPChem’s 50% interest, alongside stakes held by Singapore’s EDB Investments and Japan’s Sumitomo Chemical. The financial details of the transaction have not been disclosed, and the deal is subject to customary closing conditions.

CPSC’s facility, with an annual capacity of 400,000 metric tons of HDPE, is a significant supplier to regional markets, sourcing ethylene feedstock from local partners. The plant employs around 150 people, who are expected to be offered positions with Aster to support a smooth transition and maintain operational continuity.

This divestment aligns with CPChem’s broader strategy to streamline its global asset base and focus on more integrated, higher-margin operations. Despite the sale, CPChem will maintain its Asia-Pacific headquarters in Singapore, ensuring continued engagement with the region’s markets.

For Aster, this acquisition expands its manufacturing presence in Southeast Asia, complementing its recent purchase of Shell’s refinery and petrochemical assets in Singapore. The addition of CPSC’s HDPE plant is expected to strengthen Aster’s product portfolio and support its regional growth ambitions.

Overall, the transaction reflects ongoing changes in the global petrochemical sector, with companies seeking greater integration and efficiency. For Singapore, it highlights the continued attractiveness of Jurong Island as a site for advanced chemical manufacturing.

#capcg  #aster  #cpchem  #shell  #singapore  #refinery  #petrochemicals  #acquisition  #martech  #hdpe  #cpchem  #glencore 

The newly opened ten-MW plant (dark grey containers) in Schwechat produces between five and ten percent of the hydrogen required annually by the OMV Schwechat refinery for its operations.

OMV has successfully started up its landmark 10 megawatt (MW) polymer electrolyte membrane (PEM) electrolyzer at the Schwechat refinery near Vienna, marking the largest operational green hydrogen production facility in Austria and a significant step forward in the country’s energy transition. The project, known as UpHy II, is the result of years of collaboration, planning, and investment, and stands as a blueprint for industrial-scale green hydrogen integration in refining.

Project Location and Startup

The electrolyzer is located within OMV’s Schwechat refinery, Austria’s largest petroleum processing facility, strategically positioned to directly supply hydrogen to existing refinery operations. The plant began commercial operation in late 2024, with official announcements and public showcases taking place in spring 2025. Its startup represents not only a technical milestone but also a pioneering achievement in regulatory compliance, as it is among the first green hydrogen projects in Europe to achieve certification under the EU’s Renewable Fuels of Non-Biological Origin (RFNBO) standards.

Capacity and Production

With a total capacity of 10 MW, the electrolyzer can produce up to 1,500 metric tons of green hydrogen annually—equivalent to about 2,000 Nm³ of hydrogen per hour. This output is sufficient to supply 5–10% of the both the Schwechat refinery’s total hydrogen needs (estimated at 15,000–30,000 tons/year), displacing fossil-based hydrogen in refining processes such as hydrodesulfurization. The remaining hydrogen is channeled into mobility applications, such as fueling hydrogen buses and trucks. The hydrogen produced is of high purity (≥99.999%), meeting the strict requirements for both refinery use and mobility (ISO 14687-2 and EN 17124).



Feb 16, 2022 -- UpHy I + II – Upscaling of green hydrogen for mobility and industry, WIVA P&G, Youtube.

Technology and Selectivity

The electrolyzer uses state-of-the-art PEM technology, chosen for its efficiency, flexibility, and ability to respond quickly to fluctuations in renewable power supply. The system consists of four 2.5 MW PEM electrolyzer containers, each capable of producing 500 Nm³/h of hydrogen. Operating at temperatures between 50 and 80°C, the system achieves high system efficiency, ranging from 75% (start of run) to 68% (end of run) at full load. The hydrogen is delivered at 30 bar, reducing the need for additional compression before use in the refinery.

The selectivity of the PEM process ensures that only hydrogen and oxygen are produced, with minimal impurities, making the output suitable for both chemical processes and mobility applications. The facility also includes advanced purification and measurement technologies developed in partnership with HyCentA Research GmbH and V&F Analyse- und Messtechnik GmbH, ensuring compliance with stringent quality standards.



UpHy I + II - Upscaling of green hydrogen for mobility and industry.

Integration in Refining and Mobility

The green hydrogen produced at Schwechat is used to replace fossil-based (“grey”) hydrogen in the Schwechat refinery’s hydroprocessing units, which are essential for producing cleaner fuels and chemicals. This substitution reduces the refinery’s annual CO₂ emissions by up to 15,000 metric tons, equivalent to the carbon footprint of 2,000 people. Additionally, part of the hydrogen is made available for mobility, supporting the operation of hydrogen-powered buses and trucks, with dedicated logistics and filling infrastructure developed as part of the UpHy project.

Future Prospects

The successful operation of the 10 MW electrolyzer serves as a foundation for OMV’s ambitious plans to scale up green hydrogen production. The company has already announced a much larger project: a 140 MW electrolyzer to be built southeast of Vienna, with a target production capacity of 23,000 tons of green hydrogen per year—one of the largest such facilities planned in Europe. These projects are part of OMV’s broader strategy to become a leader in sustainable fuels, chemicals, and materials, and to achieve net-zero emissions by 2050.

#omv  #schwechat  #refinery  #hydrogen  #greenhydrogen  #sustainability  #electrolyzer  #greyhydrogen  #hydroprocessing  #austria  #pemelectrolyzer 

SK Advanced in Ulsan has been created. Its PDH plant, technology and production capacity have been added.


#sk  #advanced  #pdh  #catofin  #lummus  #korea 

Production capacities of the two PP Plants and technology of PP6 (Borstar PP) have been added.


#borealis  #omv  #burghausen  #germany  #borstar 

Technologies and capacities at SMI Plant have been added.


#chandraasri  #philippines  #styrene  #ethylbenzene  #lummus  #badger  #smi 

Esso France Website

Esso S.A.F. announces that ExxonMobil has entered into exclusive negotiations for the sale of its stake in Esso S.A.F.

Batangas Plant Assets & Technologies | Portfolio Planning PLUS

JG Summit Halts Batangas Petrochemical Operations

JG Summit Holdings has indefinitely suspended operations at its Batangas petrochemical complex, marking a pivotal shift for the Philippines' sole integrated naphtha-based production facility. The decision, driven by structural challenges in global markets, will idle the site for at least two years while the conglomerate evaluates strategic alternatives.

Petrochemical Operations Overview

JG Summit Olefins Corporation (JGSOC) operates the country's only fully integrated petrochemical complex, featuring:

• Naphtha cracker: 480,000 t/yr ethylene and 240,000 t/yr propylene capacity

Downstream units:

• 570,000 t/yr polyethylene (PE) across three plants
• 300,000 t/yr polypropylene (PP)
• Ancillary units producing benzene, toluene, and mixed xylenes

The complex supplied 100% of domestic PE and 68% of PP demand in 2024

Shutdown Drivers

The shutdown of JG Summit’s Batangas petrochemical complex was driven by a combination of challenging market dynamics and structural industry pressures. A persistent global oversupply, largely from ethane-based producers in the Middle East and North America, steadily eroded profit margins for naphtha-derived products. This unfavorable environment pushed polymer spreads to historic lows, culminating in JG Summit Olefins Corporation (JGSOC) reporting a ₱3.3 billion ($59 million) loss in the first quarter of 2025.

Beyond market forces, structural challenges also weighed heavily on the operation. The Batangas facility faced significantly higher operating costs compared to gas-based crackers, making it less competitive on a global scale. At the same time, export demand weakened as new regional capacities came online, further limiting the company’s ability to offset domestic pressures.

Operational and Financial Impact

Operationally, these factors forced JGSOC to fully halt its polyethylene and polypropylene production since January 2025. The shutdown created a domestic supply gap, leaving the Philippines entirely dependent on imports for these essential polymers. Financially, the impact was severe: JG Summit’s consolidated profit dropped by 61% year-on-year to ₱4.3 billion ($77 million), and the parent company had to absorb ₱17.1 billion ($306 million) in subsidiary debt as part of the restructuring.

Strategic Adjustments

In the wake of the shutdown, JG Summit has prioritized asset preservation by keeping the Batangas facility’s equipment in a condition that would allow for a potential restart or sale in the future. The company has also introduced workforce rationalization measures, rolling out employee care programs to support staff affected by the closure. At the same time, JG Summit is managing its remaining inventory by continuing to sell products from existing stockpiles, ensuring that any residual market demand is met.

Importantly, the conglomerate’s LPG trading operations under Peak Fuel Corp. remain unaffected by the petrochemical plant’s closure, providing some continuity in its energy-related business activities. Financial analysts believe that, despite incurring one-time restructuring costs of ₱7.9 billion ($142 million), the shutdown could actually enhance JG Summit’s consolidated EBITDA by 12 to 15 percent annually, as the company eliminates the losses associated with its petrochemical operations.

This strategic retreat from the petrochemicals sector allows JG Summit to shift resources and focus toward its core businesses, such as food manufacturing through Universal Robina and aviation via Cebu Pacific—both of which achieved strong double-digit growth in early 2025.

Outlook

The company’s decision highlights the ongoing structural challenges faced by Asian naphtha-based producers in a global environment increasingly shaped by the economics of shale gas and the competitive advantage it offers to gas-based petrochemical facilities.

#jgsummit  #jsoc  #philippines  #batangas  #steamcracker  #petrochemicals  #feedstock 

SP Chemicals Gas Cracker. Credit: SP Chemicals.

Taixing, Jiangsu Province, China – May 2025

SP Chemicals, a leading Chinese petrochemical producer, has announced plans to significantly increase its use of ethane as feedstock at its flagship complex in eastern China, reflecting a broader industry move to cut costs and enhance competitiveness amid global oversupply and squeezed margins.

Ethane Utilization Set to Rise

Currently, SP Chemicals’ cracker in Taixing operates with ethane as about 75% of its feedstock. The company is now studying an increase to as much as 90% ethane utilization, according to CEO Chan Hian Siang. This shift is being evaluated in partnership with Technip, a global engineering firm, and would make SP Chemicals one of the most ethane-intensive operators in Asia.

Ethane, a derivative of U.S. shale gas, is typically cheaper than the more commonly used naphtha. With U.S. ethane exports projected to grow by 7% in 2025 and China recently waiving its 125% tariff on U.S. ethane imports, the economics for ethane cracking have become even more favorable. SP Chemicals sources its ethane primarily from Enterprise Products Partners, a major U.S. supplier.

Infrastructure Expansion

To support the increased ethane use, SP Chemicals will invest between 400 and 500 million yuan (approximately $56–69 million) to construct a new 200,000-cubic-meter ethane storage facility at the Taixing site, nearly doubling current storage capacity. The company also plans to build three new Very Large Ethane Carriers (VLECs) by 2028 to secure long-term supply logistics.

Industry Context

The move comes as Asian petrochemical producers face thin profit margins and global oversupply. Flexible crackers—those able to process both naphtha and ethane—are seen as best positioned to weather market volatility. Other regional players, such as South Korea’s YNCC and Thailand’s PTT Global Chemical, are also ramping up ethane use to maintain cost competitiveness.

SP Chemicals was the first in China to operate a fully gas-based ethylene cracker, starting up its 650,000 tpa (now 780,000 tpa) facility in 2019. The cracker supplies ethylene to the company’s vinyl chloride monomer (VCM) and styrene units, as well as the merchant market.

Strategic Impact

By increasing ethane utilization, SP Chemicals aims to:

• Lower feedstock costs and improve margins in a challenging market.
• Enhance operational flexibility and resilience.
• Secure long-term supply through expanded storage and shipping.

CEO Chan Hian Siang noted that “ethane remains cheaper than alternative feedstocks,” underscoring the company’s commitment to cost leadership and innovation.

Outlook

SP Chemicals’ investment in ethane infrastructure and feedstock flexibility positions it at the forefront of China’s petrochemical sector transformation. As U.S. ethane exports rise and China’s demand for cost-competitive chemicals grows, the company’s strategy is likely to set a benchmark for the region’s evolving industry landscape.

#spchemical  #china  #taixing  #crackerfeedstock  #ethane  #gascracker  #technip  #enterpriseproductspartners  #yncc  #ptt 

#india #crudeoil  #rajasthancrude  #rajasthan 

CCR, Hydrocracker and Coker with their technologies and capacities have been added as far as identified.


#coker  #delayedcoking  #ccr  #platformer  #uop  #honeywell  #tuscaloosa  #refinery  #hunt  #hydrocracker  
 

PRefChem Refinery Complex. Credit: prefchem.com

Malaysia’s Pengerang Refining Company (PRefChem Refining) has resumed operations by mid of May at one of its two residue fluid catalytic cracking (RFCC) units at the Johor complex, following an extended shutdown for repairs since late January. The two RFCC units at PRefChem have a combined processing capacity of 170,000 barrels per day (bpd), making them among the largest of their kind in the region

Operational Challenges and Market Impact

• Both RFCC units had previously encountered operational disruptions in the fourth quarter of last year, further impacting production reliability. The recently restarted RFCC unit, which primarily produces gasoline, is not yet operating at full capacity, according to sources familiar with the matter. The unit had been offline since the last week of January due to technical issues, contributing to a significant reduction in overall refinery throughput.
   
• During the shutdown, crude processing rates at the 300,000-bpd refinery dropped to around 50% on average over the past four months. Since the recent restart, sporadic offers for gasoline cargoes loading in June have appeared in the market, signaling a gradual return to normal operations.
   
• In addition to gasoline, the refinery is expected to load 5–6 cargoes of diesel (each 300,000 barrels) in May, according to trade estimates, rebounding from less than 1 million barrels in April.
   
• On the petrochemical side, PRefChem’s only steam cracker, with an ethylene capacity of 1.2 million metric tons per year, has also been offline for repairs since late January. The cracker is slated for a restart in the second half of June, according to industry sources.

Strategic Context

PRefChem, a 50:50 joint venture between Malaysia’s state oil company Petronas and Saudi Aramco, operates the integrated refinery and petrochemical complex at Pengerang, Johor. The facility is a cornerstone of the Pengerang Integrated Complex (PIC), which is Malaysia’s only fully integrated refinery, steam cracker, and petrochemical site. The complex is designed with multiple train configurations—including the two-train RFCC system using Axens technology (R2R) —to enhance production reliability and flexibility. Despite facing recurring operational disruptions since 2023, the company continues to invest in new technologies and capacity expansions to support long-term growth and regional energy security:

• New Projects: The $5.3 billion Pengerang Energy Complex, securing $3.5 billion in financing in December 2024, will add 2.6 million metric tons/year of aromatics capacity by 2028.
   
• Specialty Chemicals: The recently commissioned isononanol plant (250,000 tons/year) at the Pengerang Petrochemicals Complex achieved on-spec production in 2024, targeting full capacity by 2025.

Market Positioning

PRefChem remains strategically positioned as a major supplier of Euro 5-grade fuels and petrochemical feedstocks in Southeast Asia:

• Euro 5 Fuels: The refinery produces high-specification gasoline and diesel.
   
• Integrated Complex: The site houses 3.4 million tons/year of petrochemical capacity, including propylene and ethylene, though recent spot propylene tenders suggest inventory management amid cracker downtime.

Analysts note that while near-term operational reliability concerns persist, PRefChem's long-term growth pipeline and low-carbon investments position it to capitalize on Southeast Asia's rising petrochemical demand.

#prefchem  #saudiaramco  #petronas  #pengerang  #rfcc  #gasoline  #diesel  #steamcracker  #malaysia 

Source: SPDC website

#ineos #membraneelectrolyser  #hydraeonelectrolyser  #greenhydrogen  #emethanol  #alkalinewater  #electrolysis  #hydrogenproduction  #renewableenergy 

Picture: Website Lotte

Website: The Edge Malaysia

KUALA LUMPUR (May 23): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) signed a three-year contract to purchase up to 400 kilotonnes (KT) of naphtha annually from Aramco Trading Singapore Pte Ltd, a wholly owned subsidiary of Saudi Aramco.

The loss-making olefin and polyolefin producer said the agreement, signed by its wholly owned subsidiary Lotte Chemical Titan (M) Sdn Bhd, will be effective from July 2025 to June 2028, according to a filing with Bursa Malaysia.

The pricing is based on market pricing, with the estimated annual volume ranging between 300KT and 400KT, it added.

Aramco Trading Singapore is a key feedstock supplier of naphtha to Lotte Chemical Titan and has been its long-term partner.

The sales contract will not affect Lotte Chemical Titan’s share capital or shareholding structure, the company said.

The group reported its eighth consecutive quarterly loss, although losses narrowed year-on-year on better margins and contributions from a US associate.

For the first quarter ended March 31, 2025 (1QFY2025), LC Titan incurred a net loss of RM125.67 million, versus a net loss of RM178.03 million in the same quarter last year, even as revenue dropped 22.3% to RM1.49 billion from RM1.92 billion on lower sales volume and average selling prices.

#chloralkali #bichlor  #ineos  #chlorine  #causticsoda  #hydrogen  #electrolyser 

#aramco #petronas  #prefchem  #pengrang  #petrochemicalcomplex  #crackercomplex 

Simplified Reactor Schematics for High Pressure Ethylene Polymerisation. Credit: Portfolio Planning PLUS

Ningbo Zhenhai Refining & Chemical Company Ltd. (ZRCC), a key subsidiary of Sinopec, has signed a technology licensing agreement with ECI Group for a new ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant in Ningbo, Zhejiang Province, China. The plant, designed for a capacity of 200,000 tonnes per year, will be part of ZRCC’s ongoing expansion of its integrated ethylene and downstream chemical complex in the Zhenhai District.

Details of the Licensing Agreement

Technology Scope: The agreement covers the licensing of ECI Group’s hybrid reactor technology, which merges the product versatility of an autoclave reactor with the higher throughput of a tubular reactor tail. This configuration is designed to enable the production of a broad range of high-pressure polyethylene products, including LDPE, EVA, and other high-value copolymers at larger scales, a capability that has traditionally been challenging for autoclave-based technologies alone.

Project Deliverables: ECI Group will provide the technology license, process design package, expanded process design package, and detailed design for the high-pressure system. The scope also includes technical procurement services and on-site support during installation, commissioning, and performance assessment.

Plant Integration: The new EVA/LDPE facility will be integrated into ZRCC’s large ethylene and downstream complex. ZRCC, as a Sinopec subsidiary, is a major operator in the region and has recently completed significant expansions to increase both crude oil processing and advanced materials production capacity at its Ningbo site.

Industry Context

Capacity Milestone: The contract marks a milestone for ECI Group, bringing its total nameplate licensed capacity for LDPE/EVA plants to 1 million tonnes since 2021, with projects in China ranging from 50,000 to 200,000 tonnes per year.

Strategic Expansion: The new plant forms part of NZRCC’s broader strategy to expand its portfolio of high-value specialty chemicals and polymers, supporting downstream industries such as automotive, home appliances, and textiles in the Yangtze River Delta.

Sinopec’s Role: NZRCC operates as a major refining and chemical subsidiary under Sinopec, one of the world’s largest integrated energy and chemical companies. The Zhenhai complex is a central hub for Sinopec’s advanced materials and petrochemical production in eastern China.


#ecigroup  #ldpe  #highpressure  #ethylenepolymerization  #autoclavereactor  #tubularreactor  #hydridtechnology  #sinopec  #zrcc  #refinery  #refining  #zhejiangrefinery 

Cilegon Plant - LOTTE Indonesia New Ethylene (LINE). Credit: PT Lotte Chemical Indonesia

PT Lotte Chemical Indonesia (LCI) is undergoing a transformative phase marked by significant investment, new long-term supply agreements, and persistent industry headwinds. The company’s strategy and recent developments provide insight into both its growth ambitions and the broader challenges facing the Southeast Asian petrochemical sector.

Major Expansion: New Cracker Facility

LCI is set to commence operations at its new mixed-feed cracker in Cilegon, Banten province, Indonesia, in the second half of 2025. This facility, part of a $3.95 billion investment, will have an annual production capacity of 1 million metric tons of ethylene. The new cracker is a central component of the Lotte Chemical Indonesia New Ethylene (LINE) project, which aims to strengthen the company's upstream integration and supply chain resilience.

Strategic 10-Year Ethylene Supply Deal

In May 2025, LCI secured a 10-year ethylene supply contract with PT Asahimas Chemical, an integrated chemical producer in Indonesia. The contract, effective from July 1, 2025, to June 30, 2035, commits LCI to supply approximately 150,000 tonnes of ethylene per year to Asahimas Chemical. The agreement’s value is expected to exceed 10% of Lotte Chemical Titan (the Malaysian-listed parent)'s latest annual consolidated revenue, underlining its financial significance. Pricing for the contract is pegged to prevailing market rates, ensuring flexibility in a volatile market environment. The long-term deal provides both revenue stability for Lotte Chemical and supply security for Asahimas, supporting downstream chemical industries in Indonesia.

Financial and Market Pressures

Despite these strategic moves, Lotte Chemical Titan continues to face financial challenges. The company reported its eighth consecutive quarterly loss in Q1 2025, though losses narrowed year-on-year due to improved product spreads and contributions from its US associate. For Q1 2025, Lotte Chemical Titan posted a net loss of RM125.67 million, compared to RM178.03 million a year earlier, with revenue dropping 22.3% to RM1.49 billion on lower sales volume and prices. The global petrochemical sector is currently experiencing margin compression due to oversupply, particularly from China, which has weighed on profitability and forced companies like Lotte Chemical to operate existing Malaysian crackers at reduced capacity (45%-50% since December 2024).

Ownership Restructuring and Strategic Flexibility

To bolster its financial position, Lotte Chemical reduced its stake in the Indonesian venture from 49% to 24% in early 2025, selling the shares to a consortium of South Korean financial institutions. Lotte Chemical Titan retains a 51% stake in Lotte Chemical Indonesia. The company is also exploring feedstock flexibility for the new cracker, planning to source naphtha from the Middle East and potentially substitute up to 50% of naphtha feedstock with natural gas liquids such as LPG or ethane, depending on market economics.

Sector Outlook and Strategic Positioning

The Southeast Asian petrochemical industry is in a phase of consolidation, with mergers and acquisitions on the rise as companies seek to enhance shareholder value amid challenging conditions. Lotte Chemical’s long-term supply contract and the new Indonesian cracker position it to capitalize on regional  demand growth, even as it navigates short-term market volatility and restructuring pressures. The new supply agreement is not expected to impact the company’s share capital or ownership structure, maintaining stability for investors.

Conclusion

Lotte Chemical Indonesia’s ambitious expansion and strategic supply agreements reflect a commitment to long-term growth and regional market leadership. However, the company continues to navigate a difficult economic landscape characterized by global oversupply, margin pressure, and the need for financial restructuring. The coming years will be pivotal as the new cracker comes online and the company seeks to leverage its strengthened position in Indonesia’s growing chemical sector.

#lotte  #lottechemical  #indonesia  #malaysia  #lci  #lineproject  #cilegon  #asahimas  #agc  #asahiglass  #ethylene  #steamcracker  #ethyleneplant 

Dow plans to shut down that PO unit at the end of 2025, and those plans prompted Olin to close the diaphragm-grade chloralkali capacity that serves the Dow facility.

#chloralkali 

Asahimas Banten factory and its main chemical production facilities with their respective production capacities have been added.


#agc  #asahimas  #chloralkali  #vcm  #vinylchloride  #pvc  #indonesia  #causticsoda  #edc  #chlorine  #hydrogen 

The description of AGC Inc. has been updated, and all 6 chemicals and glass manufacturing plants in Japan have been created.


#agc  #asahiglass  #japan  #chloralkali  #causticsoda  #chlorine  #electrolysis  #hydrogen  

SAMREF Refiney. Credit: Samref

Aramco and ExxonMobil Plan Major Upgrade to Transform SAMREF Refinery into Integrated Petrochemicals Complex

Saudi Aramco has recently taken significant steps toward upgrading the SAMREF refinery, a 50:50 joint venture between Saudi Aramco and ExxonMobil, located in Yanbu, on Saudi Arabia’s Red Sea coast.

It is one of the Middle East’s leading and most sophisticated refineries, processing over 400,000 barrels per day (b/d) of Arabian Light crude oil. It is one of the oldest and largest refineries in the Kingdom, exporting products to Europe, North America, and Asia. The refinery previously underwent a clean fuels upgrade in 2014 to reduce sulfur content in its products. The refinery is notable for its high yield of gasoline and distillate products, exceeding 80% per barrel—higher than many comparable refineries. Its product mix can be adjusted to meet seasonal or market-specific demands, reflecting its processing flexibility.

Key Developments:

• MoU with ExxonMobil: In May 2025, Aramco and ExxonMobil signed a memorandum of understanding (MoU) to evaluate a significant upgrade of the SAMREF refinery. The planned upgrade aims to transform the facility from a conventional oil refinery into a world-class integrated petrochemicals complex. This move is part of Aramco’s broader strategy to increase the value derived from its crude oil by expanding into high-value petrochemicals.
• Strategic Objectives: The SAMREF upgrade is a core component of Aramco’s $100 billion liquids-to-chemicals program, which seeks to convert up to 4 million barrels per day of crude oil into petrochemicals and chemical feedstocks by 2030. This initiative is central to Saudi Arabia’s ambition to maximize economic returns from its hydrocarbon resources and diversify its downstream portfolio.
• Scope of Upgrade: The envisioned project involves adding a mixed-feed cracker to the existing refinery, enabling the production of a broader range of petrochemical products. This would align SAMREF with other major Aramco projects, such as the planned expansions at the SASREF and Yasref refineries, which are also being converted into integrated refining and petrochemical complexes

Recent Announcements:

• The MoU was signed during the Saudi-US Investment Forum in Riyadh in May 2025, underscoring the importance of international partnerships in Aramco’s downstream expansion plans.
• Aramco’s CEO Amin Nasser reported that, as of the end of 2024, the company had achieved 45% of its liquids-to-chemicals program target, with ongoing progress at SAMREF and other key sites.

A Word of Caution:

This latest development comes on the heels of Aramco’s recent announcements of other mega-project transformations, including the $10 billion expansion of the SASREF refinery (to add 400,000 b/d of petrochemicals capacity) and the $7 billion upgrade of the Yasref refinery (to integrate a 2.5 million-ton-per-year ethylene cracker). These projects are part of Aramco’s broader $100 billion liquids-to-chemicals program, which aims to shift its downstream focus from fuels to high-value chemicals.

Mohammed Al-Qahtani, Aramco’s downstream president, previously explicitly affirmed the 4 million b/d target in a 2024 statement:

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

However, as industry analysts, while recognizing the impressive scale of the recently announced petrochemical transformation projects, we must caution this ambitious 4 million b/d target faces significant hurdles:

• To put things in perspective, 4 million b/d of crude oil—corresponding to approximately 200 million tonnes/year—is equivalent to about half of today’s global plastics market, which would require unprecedented speed and scale in petrochemical conversion project execution.
• Critically, full-barrel conversion technology—which would enable near-total transformation of crude oil into chemicals without producing fuels—does not yet exist at commercial scale. Current state-of-the-art refineries convert only 15–20% of each barrel to chemicals, with the rest yielding fuels.
•  S-Oil's Shaheen project employing TC2C technology developed by Saudi Aramco Technology Company (SATC) is presently about half-way complete and has a scheduled oil uptake capacity of 2.3 million tonnes of Arab Light, corresponding to 1.15% of the stated objective.
• Aramco’s timeline (less than six years to 2030) would also require parallel delivery of many more mega-projects than those recently announced, each typically requiring 5–7 years to complete, to reach this upper target.
   

#aramco #tc2c  #oiltochemicals  #liquidstochemicals  #fullbarrelconversion  #saudiaramco  #exxonmobil  #samref  #yasref  #sinopec  #sasref 

#sustainability #saf  #sustainableaviationfuel  #hydrocracking  #fatsandoils  #biodiesel  #renewablennaphtha  #thenetherlands  #rotterdam  #nestle  #technipenergies  #biorefinery 

Aramco announces upgrade, but no details provided.

MoU related to evaluating a significant upgrade to the SAMREF refinery and expanding the facility into a world-class integrated petrochemical complex.

#refining #Refinery 

Kuraray has been added.


#kuraray  #japan  #rayon  #pvoh  #pvb  #evoh  #maa  #mma  #pmma  #isoprene  #elastomers  #polyamide  #pva  #polyester  #membranes  #watertreatment  #fibers  #syntheticfibers