Communicator

Amur GCC site production site has been created, plants with their capacities and technologies have been added.  

#amur  #amurgcc  #russia  #sibur  #sinopec #massbalance 

$5.2 Billion Vietnamese Project Records $304 Million Loss in 2024, Continues to Weigh Heavily on SCG’s Financial Results in Early 2025

The Long Son Petrochemical Complex (LSP), Vietnam’s first fully integrated petrochemical facility, has experienced a turbulent launch and operational trajectory since its much-anticipated commercial start-up in late 2024. This article aggregates the latest developments, contextualizes them within broader industry trends, and references previous communications that highlighted both optimism and early warning signs.

Background and Launch

Long Son Petrochemicals Co., Ltd., located in Ba Ria-Vung Tau and wholly owned by Thailand’s SCG Chemicals (a subsidiary of SCG Group), represents a $5.2–5.4 billion investment and is designed to produce 1.55 million tonnes of polyolefins (polyethylene and polypropylene) annually. The complex includes a world-scale, so-called Flex Feed Cracker with a capacity of 998,000 tonnes of ethylene, 500,000 tonnes of propylene, and 101,000 tonnes of butadiene per year, using naphtha, LPG, and soon, ethane as feedstock.

*Data from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023.

Interactive Process Flow Chart of Long Son Petrochemical Complex based on 2023's Environmental Permit Data | Unique Feature available only on Portfolio Planning PLUS Platform.

After years of construction and trial runs, LSP officially began commercial operations on September 30, 2024. The launch was heralded as a transformative step for Vietnam’s plastics and downstream manufacturing sectors, reducing reliance on imports and boosting local industry competitiveness.

Operational Suspension and Financial Losses

Despite the high-profile start-up, LSP suspended operations in mid-October 2024—just two weeks after commercial production began. This abrupt halt was attributed to:

• High production costs: Naphtha, the primary feedstock, remained expensive amid volatile crude oil prices.
• Weak global demand: A global downturn in the petrochemical market, exacerbated by oversupply and sluggish downstream demand, led to poor product margins.
• Low chemical spread: The spread between naphtha and polyethylene/polypropylene prices dropped to $300–$343 per tonne, below the threshold for profitable operations.

SCG Chemicals reported a staggering loss of $303.6 million from LSP in 2024, with monthly expenses at the complex reaching $35.5 million—40% of which are non-cash items like depreciation. The financial drag from LSP sharply reduced SCG’s consolidated profit, even as its other businesses remained profitable.

Capacity Questions and Technical Details

Our prior communication raised questions about the actual cracker capacity and the interpretation of trial run figures, whereby we issued a mass balancing challenge that still awaits contributions from users of the PPPLUS Platform.

Various data sources have reported diverging plant capacities for both the cracker and the downstream plants. In addition, calculated feedstock requirements to match the reported ethylene and propylene outputs are not making any sense in terms of cracker capacity. The figures we have used to generate the site's mass balance and process flow chart are taken from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023. During the brief operational window, initial output was reported at 74,000 tonnes—well below nameplate, reflecting the ramp-up phase and subsequent shutdown.

Strategic Adjustments and Future Plans

SCG has not abandoned the project. Instead, it is adapting the business model to address structural challenges:

• Feedstock flexibility: LSP is being retrofitted to use imported ethane as a primary feedstock, which offers better margins than naphtha. The company plans to invest an additional $400–700 million to enable the cracker to use up to two-thirds ethane, with completion targeted by end-2027.
• Cost management: SCG is implementing group-wide cost reductions and discontinuing unprofitable businesses, aiming to save 5 billion baht and cut working capital by 10 billion baht by early 2025.
• Potential restart: With recent improvements in polyolefin-to-feedstock spreads (averaging $396/t in April-May 2025), SCG is considering restarting LSP as early as August 2025, contingent on further margin recovery and market stability.

Long Son Petrochemical Complex Assets | Market Intelligence by Portfolio Planning PLUS

Market and Policy Environment

Vietnam’s government has signaled support for LSP’s expansion, promising to streamline procedures and facilitate stable gas imports, including ethane from the U.S.. However, the domestic market remains under pressure from competitive international polyolefin imports and subdued export demand.

Summary on Key Facts and Timeline

• Sep 30, 2024 - Commercial Start-up: Official launch of Vietnam’s first integrated petrochemical complex in Vietnam.
• Mid-Oct 2024 - Suspension of Operations: Halted after two weeks due to poor margins and high costs.
• Full Year 2024 - 2024 Financial Loss: $303.6 million loss from LSP; group profit slashed.
• 2025 - 2027 - Upgrade/Expansion Plans: $400–700 million investment to enable ethane feedstock; expansion under review.
• August 2025 (TBC) - Potential Restart: Dependent on market spreads and demand recovery.

Outlook

The Long Son Petrochemical Complex exemplifies both the promise and pitfalls of mega-projects in volatile global markets. While its technical capabilities and strategic significance remain intact, the project’s near-term viability hinges on market recovery, successful feedstock diversification, and continued government support. SCG’s willingness to invest further and adapt its strategy suggests a long-term commitment, but the road to profitability remains challenging and closely watched by industry observers.

#technipenergies  #basf  #mitsuichemicals  # univation #unipol  #hypol  #steamcracking  #lsp  #steamcracker  #vietnam  #crackerfeedstock  #massbalance  #longson  #scg 

Scaling New Heights: How Univation and Industry Rivals Are Redefining Polyethylene Production Capacity and Flexibility

The polyethylene (PE) production industry is experiencing a remarkable transformation, driven by advances in process technology and a relentless pursuit of scale and efficiency. At the center of this evolution is Univation Technologies, which recently announced a new UNIPOL™ PE Process design capable of producing 800,000 tonnes per year. This announcement marks a significant leap forward in the scale of single-line PE production, underscoring the company’s commitment to pushing technological boundaries while maintaining the flexibility to meet diverse market needs.

Univation’s journey toward ever-greater production capacities is a testament to decades of innovation. The company’s first UNIPOL™ PE plant, built in 1989, had a capacity of 225,000 tonnes per year, which at the time was a world record for a single-reactor PE facility. By 2016, the landscape had changed dramatically, with more than twenty operating lines each producing at least 400,000 tonnes per year, and single-line capacities reaching today 650,000 tonnes. The latest 800,000 tonnes per year design represents a substantial 23 percent increase over the previous benchmark, and the scale of this expansion is even more striking when considering that a 150,000-tonne increase is equivalent to the entire output of a typical reactor from the 1970s, highlighting the extraordinary progress that has been made in reactor engineering and process optimization.

A key differentiator for the UNIPOL™ PE Process is its product flexibility, enabled by a sophisticated portfolio of catalysts. By selecting from a dedicated line of catalysts, producers can seamlessly switch between a full spectrum of PE products, including metallocene-based resins, bimodal and unimodal HDPE, and LLDPE, all within the same reactor. This versatility allows manufacturers to respond rapidly to changing market demands without the need for costly and time-consuming reactor modifications, setting UNIPOL™ PE apart from many competing technologies, which often require dedicated lines for each product type.

The race for the world’s highest-capacity PE plant is intensifying, with Univation’s latest announcement coming on the heels of significant developments from Chevron Phillips Chemical (CP Chem). CP Chem’s MarTech™ single-loop slurry process is now being deployed at a massive scale, with the Golden Triangle project in Texas featuring two HDPE lines, each with a capacity of 1,000,000 tonnes (1 million tonnes) per year, and a similar scale project with two HDPE lines, each with a capacity of 850,000 tonnes per year at the Ras Laffan Petrochemical Complex in Qatar. While CPChem has focused on maximizing HDPE production through specialized lines, Univation’s approach emphasizes both scale and product diversity, offering producers a compelling combination of flexibility and efficiency.

Achieving such immense reactor capacities is a feat of engineering that cannot be overstated. Scaling up polymerization reactors to handle up to 1 million tonnes per year and beyond requires overcoming significant technical challenges. Advanced cooling systems, real-time temperature controls, and innovative designs are essential to manage the intense heat and mixing requirements of high-throughput polymerization, as well as enhancing operational reliability and efficiency, ensuring that these mega-plants can run safely and consistently at peak performance.

In this rapidly evolving landscape, access to accurate and up-to-date technical information is more important than ever. Platforms like portfolio planning PLUS (ppPLUS) have emerged as invaluable resources for industry professionals, offering open-access, collaborative tools for tracking global PE plant deployments. Through ppPLUS, users can explore detailed information on PE plants worldwide, visualize production clusters, and contribute data on plant capacities, technology choices, and mass balances. This level of transparency and collaboration supports better decision-making and accelerates the adoption of best practices across the industry.

In summary, the latest advances in PE production technology, exemplified by Univation’s 800,000 tonnes per year UNIPOL™ PE Process and CP Chem’s MarTech mega-projects, are redefining the limits of scale and flexibility in polymer manufacturing. These achievements are not only a testament to the ingenuity of process engineers but also a harbinger of a more efficient, responsive, and interconnected global PE industry. As collaborative platforms like ppPLUS continue to democratize access to technical knowledge, the pace of innovation is likely to accelerate, shaping the future of plastics production for decades to come.

#hdpe  #lldpe  #bimodal  #metallocene  #univation  #unipol  #martech  #slurryloop  #gasphase  #massbalance #cpchem  #chevronphillips 

The Shahen TC2C Project Mass Balance has been completed. 
The TC2C Plant will import 46,000 bpd of Arab Light crude oil, corresponding to 2,300,000 tonnes annually.
However, in order to obtain the announced product quantities (1,800,000 tonnes of ethylene, 770,000 tonnes of propylene, 200,000 tonnes of butadiene, and 280,000 tonnes of benzene) our calculation based on typical cracking yields show that the feedstock needs to amount to almost 5 million tonnes.
The cracker will use ROG so that certainly some ethane will be additionally consumed by the cracker, but the feedstock balance reaquired for the precise product quantities is made of 150,000 tonnes of ethane, 1,300,000 tonnes of LPG (C3/C4 = 1:1 ratio) and 3,500,000 tonnes naphtha. Therefrom, 275,000 tonnes of LPG and 1,350,000 tonnes of nahptha  will be provided by the TC2C plant.
We assume that the supplemental feedstock will be imported, unless additional crude oil will be imported and processed with conventional distillation units.
As this is a TC2C demonstration project, it is assumed that only the theoretical quantities of pygas and pyoil originating from the TC2C provided feedstock to the cracker will be recirculated to the TC2C hydrocracking and hydroreating units (270,000 from 475,000 tonnes of pygas, and 65,000 from 113,000 tonnes of fuel oil).
In reality, the sizing of the various hydroprocessing/hydrotreatment units maybe different, but absent confirmation on units capacities, this is our best educated guess.


#tc2c  #shaheen  #massbalance  #crudetochemicals  #crudeoiltochemicals  #c2c  #tc2c  #cotc  #aramco  #soil  #southkorea 

JGSOC Mass Balance has been completed.
However, naphtha import quantity is only estimated as well as cracker coproducts quantities. There is a deficit of ethylene and propylene to supply the three PE and the PP plant. The company is either importing the missing monomer quantities or running the polymerization plants at lower than nominal capacity.

jgsoc #jgsummit  #summitolefins  #massbalance  #productioncapacities 

Several plants and productions added.


#anqing  #refinery  #sinopec  #massbalance 
 

Details about Dagang area refinery added.


#massbalance  #tianjin  #binhai  #dagang  #sinopec  #steamcracker  #ethyleneplant  #tianjin 

Petrochina Daqing Petrochemical has been created and its site's mass balance initialized.

#daqing #petrochina  #petrochemical  #massbalance  #refining  #crudeoil  #ethylene  #steamcracking  #heilongjiang 

Mass balance has been further developed, with more assets and productions added. Several technologies need to be identified and some others require confirmation as there seems to be duplicate technologies that may come from initial announcements not executed, such as for residue hydrocracking. 

#massbalance  #zpc  #zhoushan  #china    

Mass Balance of SSTPC (Sinopec Sabic Petrochemical) has been initialized.

#sabic  #sinopec  #jointventure  #massbalance #tianjin #china 

Mass Balance of SOCAR Türkiye Refinery initialized with crude oil imports.

#crudeoil #massbalance  #Refinery #refining 

Circular Polymer Resources and AmSpec Group to develop a process to test and certify the composition and quality of plastic waste used in chemical recycling, Beatriz Santos from Sustainable Plastics reports on Feb 7^th.

Notable, the article mentions that:

"Pyrolysis oil must be diluted with fossil-derived oils or treated to improve its quality to bring it ‘on-specification’ for steam cracking. This diminishes the yield of recycled plastic from pyrolysis or requires energy intensive processes, respectively..."

#chemicalrecycling  #molecularrecycling  #advancedrecycling  #massbalance  #circularpolymer  #pyrolysis