Methanol

SINGAPORE (ICIS)–Denmark's AP Moller Holding, the parent company of shipping company Maersk, plans to invest €1.5 billion to build a “fossil-free” plastics production plant in Antwerp, Belgium, via a new venture called Vioneo. “The Antwerp plant will benefit from the region’s expertise in the chemicals industry, strong export facilities and access to renewable energy,” AP Moller said in a statement on 30 September. The Vioneo plant is expected to use green methanol as feedstock to produce polypropylene (PP) and polyethylene (PE), with commercial operations slated to begin in 2028, the investment company said. “Fully operational, the plant will be able to produce … 300,000 tonnes of fossil-free plastics annually, corresponding to a reduction of 1.5 million tons of CO2 [carbon dioxide] emissions,” it said. The plant will be located within the Antwerp energy park of Dutch logistics firm Vopak, with support from Vopak Belgium and the Port of Antwerp-Bruges. Project plans will take place in phases, with front-end engineering design (FEED) to begin in Q4 2024, and with the final investment decision (FID) expected in 2025. In a separate statement, the Port of Antwerp-Bruges said that the project is expected to generate "significant job opportunities” during the construction phase and around 250 permanent positions when the plant is fully operational. ($1 = €0.90)

01-Oct-2024

NEW YORK (ICIS)–Celanese sees a major growth opportunity in low carbon, recycled and bio-based materials, its CEO said. In January 2024, the company announced it started running a carbon capture and utilization (CCU) project at its Clear Lake, Texas, site as part of its Fairway Methanol joint venture with Mitsui & Co. The project is expected to capture 180,000 tonnes/year of CO2 industrial emissions and produce 130,000 tonnes/year of low-carbon methanol. “We actively capture carbon off some of the major producers in Clear Lake, Texas, at our site and we take those CO2 emissions… and we recycle it back into the ATR (autothermal reformer),” said Lori Ryerkerk, CEO of Celanese, on a webinar hosted by Chemical Marketing & Economics (CME-STEM). This low-carbon methanol can then be used to produce vinyl acetate monomer (VAM), vinyl acetate ethylene (VAE) emulsions and other downstream products, she added. “We have customers like Amazon that want a lower carbon footprint product, and we are able to meet that customer need,” said Ryerkerk. The CCU unit takes CO2 emissions that were otherwise being vented into the atmosphere from both Celanese and from third parties to use as a feedstock. “The exciting thing about this project is that we started it as a way to make more methanol and have found the value is also there for being able to produce through mass balance tracking, a green product that can be certified under the ISCC carbon footprint certification system,” said Ryerkerk. In March 2024, Celanese announced that the International Sustainability and Carbon Certification (ISCC) group certified its Low Carbon CCU Methanol under the ISCC Carbon Footprint Certification (CFC) system. Low Carbon CCU Methanol demonstrated a greater than 70% reduction in carbon footprint relative to a global average benchmark for fossil-based methanol production, as included in EU legislation, according to Celanese. “This is an area of growth for us – to be able to expand our green product offering,” said Ryerkerk. In Celanese’s Sustainable Solutions portfolio, those using carbon capture fall under the ECO-C label, with recycled content under ECO-R and bio-based content under ECO-B. RECYCLED AND RECYCLABLE CONTENTOn the recycled content side, Celanese in Europe recycles nylon airbags into high quality nylon which can be used by customers such as furniture giant IKEA, said Ryerkerk. IKEA has a goal of using only recycled or renewable-based plastic in all its products by 2030. “In India, we take fishing nets that are recovered from the sea, clean them, sort them and recycle them into a nylon grade which is used for furniture,” said Ryerkerk. “We have the ability to make recycled [products] across much of our portfolio now,” she added. Celanese also works with customers to develop products that are recyclable. An example is its NEOLAST fiber made from thermoplastic copolyester elastomer which can be blended with other fibers at a level anywhere from 2-40% of total fiber content. “We developed this fiber together with Under Armour to solve a problem they had with elastane (Spandex) because Spandex is energy intensive, uses solvents that aren’t very environmentally friendly, and tends to shed a lot of plastic fibers,” said Ryerkerk. “The great news is that this is recyclable. Elastanes are not. It’s solvent-free so more environmentally friendly from a production standpoint and it has better characteristics of wear – it’s more colorfast, better wicking, all these things,” she added. NEOLAST is in the very early stages of sales with Under Armour producing some products with the fiber and Celanese talking to a number of other companies interested in using it, the CEO said. “This is a long-term commitment. This has been in development for many, many years. We’ve just introduced it, and it will probably be several years yet before we really see widespread use of it,” said Ryerkerk, who noted that most of these types of new products take three to five years to develop. BIO-BASED CONTENTOther customers such as toy producer LEGO aim to use more renewable-based content. “We are able, since we start with bio-methanol and bio-ethylene – these building block chemicals – to make a bio-content material which we call ECO-B for those customers [that want to use] a non-fossil fuel feedstock,” said Ryerkerk. In H1 2024, 30% of the resin LEGO purchased was certified according to mass balance principles, which translated into an estimated average of 22% renewable sources. The company plans to “significantly increase this percentage” through the rest of 2024 and beyond. Celanese considers its ability to offer low carbon, recycled and bio-based products a unique competitive advantage. “Many of our competitors may offer one of these, but we’re probably one of the few that have the ability right now to offer all of them – and offer them in a way that is certified,” said Ryerkerk. GROWTH PROSPECTSCelanese’s Sustainable Solutions portfolio represents just around 5% of sales today but is growing double digits on a percentage basis every year, said the CEO. A stronger economic recovery would be a tailwind as these products are typically more expensive. “We’ll see what happens with the economy. Let’s be honest – most people are more interested in these things when the economy is better than when the economy is tough like it is right now,” said Ryerkerk. “But there are a lot of companies that have made commitments to go to more sustainable solutions. As our volumes grow, we’re able to make sustainable solutions more affordable for them… I think it is going to be quite some time before it is the majority of our portfolio, but that’s OK because we need time to build our capabilities as well,” she added. Focus article by Joseph Chang

27-Sep-2024

SINGAPORE (ICIS)–China’s petrochemical futures markets surged on Tuesday following announcement of fresh measures to rev up activity in the world’s second-biggest economy. As the close of trade on Tuesday, polyvinyl chloride (PVC) was leading the charge in China’s domestic futures market, with a 3.3% increase, with seven others also posting strong gains. Product Prices at close of trade (CNY/tonne) % change from 23 Sept Linear low density polyethylene (LLDPE)                                   7,969 1.2% Polyvinyl chloride (PVC)                                   5,388 3.3% Ethylene glycol (EG)                                   4,459 1.9% Polypropylene (PP)                                   7,360 1.4% Styrene monomer (SM)                                   8,559 0.7% Paraxylene *                                   7,012 2.4% Purified terephthalic acid (PTA)*                                   4,930 2.2% Methanol*                                   2,396 1.6% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Shares of major Chinese chemical producers traded in Shanghai and Shenzhen bourses also increased, welcoming the central bank’s economic measures. Company  Closing prices on 24 September (CNY/share) % change from 23 Sept Hengli Petrochemical 13.12 5.4% PetroChina 8.36 4.4% Rongsheng* Petrochemical 8.84 4.1% Satellite Chemical* 16.08 7.7% Sinopec 6.76 4.3% Wanhua Chemical 78.96 4.4% Sources: Shanghai and *Shenzhen bourses The Shanghai composite index surged by 4.15% to close at 2,863 on Tuesday. It was the index’s biggest single-day rally since 6 July 2020. People’s Bank of China (PBoC) governor Pan Gongsheng announced in a press conference the new economic measures, which include cuts on banks’ reserve requirement ratio (RRR), key policy rate and mortgage rates to revive the economy. China's economic weakness has been a major drag on overall sentiment across the equities and commodities markets this year. “The move [basket of stimulus by China’s central bank] is bold by historical standards and came earlier than we had expected,” said Betty Wang, lead economist at UK-based Oxford Economics, in a research note on Tuesday. “The policy measures include cuts to the policy rate and reserve requirement ratio (RRR), adjustment to mortgage lending and policy support to stock market,” Wang said. “The continuous weakness in domestic economy and the outsized rate cut from the [US] Federal Reserve were the likely catalysts behind the PBoC's latest move,” the economist said. This is the first time since the COVID-19 pandemic that the central bank offered a combination of rate cuts, RRR cuts, and structural monetary policies as stimulus measures. A 20-basis point (bps) interest rate cut in the 7-day reverse repurchase (repo) rate and a broad-based 50bps RRR cut are also rare, Oxford Economics noted. Focus article by Fanny Zhang ($1 = CNY7.04) Thumbnail image: At a container terminal at Lianyungang Port in east China's Jiangsu Province, 18 September 2024. (Shutterstock)

24-Sep-2024

SAO PAULO (ICIS)–The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials. Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET). See bottom list for details. Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year. The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur. The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals. The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar. Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share. Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex. “[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS. “We will continue to fight to ensure that these unreasonable measures are reversed.” Product Current Tax Rate Proposed Tax Rate Plaintiff Phosphoric acid with iron content less than 750 ppm 9% 17.5% Abiquim Sodium hydrogen carbonate (bicarbonate) 9% 20%* Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Elekeiroz Inc. Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Abiquim Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Rhodia Brasil SA Butanone (methyl ethyl ketone) 10.80% 20% Abiquim Ethyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Rhodia Brasil SA Other saturated acyclic monoalcohol acetates, c atom <= 8 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Unigel Holdings Inc. Adipic acid 9% 20% Abiquim Adipic acid 9% 20% Rhodia Brasil SA Maleic anhydride 10.80% 20% Abiquim Maleic anhydride 10.80% 20% Elekeiroz Inc. Fumaric acid, its salts and esters 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Elekeiroz Inc. Dinonyl or didecyl orthophthalates 10.80% 20% Abiquim Hexamethylenediamine and its salts 10.80% 20% Abiquim Monoethanolamine and its salts 12.60% 20% Abiquim Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, with filler 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, without filler 12.60% 20% Abiquim Other unfilled polyethylenes, density >= 0.94, in primary forms 12.60% 20% Abiquim Other copolymers of ethylene and vinyl acetate, in primary forms 12.60% 20% Abiquim Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94 12.60% 20% Abiquim Unfilled polypropylene in primary form 12.60% 20% Abiquim Propylene copolymers, in primary forms 12.60% 20% Abiquim Expandable polystyrene, unfilled, in primary form 12.60% 18% Abiquim Other styrene polymers, in primary forms 12.60% 20% Abiquim Other styrene polymers, in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by suspension process 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Alpek Polyester Pernambuco SA Other unsaturated polyethers, in primary forms 12.60% 20% Abiquim Ex – Surfactant polymer class preparation, silicone free 12.60% 12.60% Abiquim Ex – Solvent-free modified polyester class preparation 12.60% 12.60% Abiquim White mineral oils (vaseline or paraffin oils) 3.60% 35% Abiquim Silicon dioxide obtained by chemical precipitation 9% 18% Abiquim Silicon dioxide obtained by chemical precipitation 9% 17% Rhodia Brasil SA Other silicon dioxides 0% 18% Abiquim Commercial ammonium carbonates and other ammonium carbonates 9% 18% Abiquim Styrene 9% 18% Abiquim Styrene 9% 18% Unigel Holdings Inc. Butan-1-ol (n-butyl alcohol) 10.80% 20% Abiquim Butan-1-ol (n-butyl alcohol) 10.80% 20% Elekeiroz Inc. Propylene glycol (propane-1, 2-diol) 10.80% 20% Abiquim Dipropylene glycol 12.60% 20% Abiquim Triacetin 10.80% 20% Abiquim Triacetin 10.80% 20% Denver Specialty Chemicals 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Abiquim 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Elekeiroz Inc. Salts and esters of adipic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Elekeiroz Inc. Phthalic anhydride 10.80% 20% Abiquim Phthalic anhydride 10.80% 20% Petrom Petrochemicals Mogi das Cruzes S/A Ammonium nitrate, even in aqueous solution 0% 15% Abiquim Pigments and preparations based on these pigments 12.60% 20% Abiquim Linear alkylbenzene sulfonic acids and their salts 12.60% 23% Abiquim Organic surface-active agents, non-ionic 12.60% 23% Abiquim Alkylbenzene mixtures 10.80% 20% Abiquim Stearic acid (industrial monocarboxylic fatty acid) 5.40% 35% Abiquim Stearic alcohol (industrial fatty alcohol) 12.60% 20% Abiquim Sodium methylate in methanol 12.60% 20% Abiquim Other ethylene polymers, in primary forms 12.60% 20% Abiquim Filled polypropylene, in primary form 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by emulsion process 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Unigel Holdings Inc. Other polyether polyols, in primary forms 12.60% 20% Abiquim Other polyesters in liquids and pastes 12.60% 20% Abiquim Other polyurethanes in liquids and pastes 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Denver Specialty Chemicals Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms 10.80% 22% Abiquim Acrylonitrile-butadiene rubber in sheets, plates, etc. 10.80% 35% Abiquim Latex of other synthetic or artificial rubbers 10.80% 35% Abiquim  

19-Sep-2024

NEW YORK (ICIS)–It has been a long time coming and there is plenty more time before the chemical industry finally sees a meaningful upturn in the durable goods cycle, in turn giving a much-needed boost to commodity chemicals, according to Jefferies. “We expect demand stabilization in 2025, with a restock cycle and a rate-driven durables goods cycle in 2026-2027 to set the stage for the next period of tight commodity chemical supply/demand balances – MDI (methylene diphenyl diisocyanate) and methanol first, in our view, then acetyls, then olefins,” said Laurence Alexander, analyst at Jefferies, in a research note. In his base case scenario, the analyst sees US durable goods demand flat to down 3% in 2025 and up around 10% in 2026. The anticipated turn in the cycle for housing and durable goods would be a strong catalyst for shares of Eastman, Huntsman, Avient and DuPont, he pointed out. For chemicals in the near term, Alexander expects Q3 2024 to show a return to “normal seasonality” and Q4 volume outlooks to be trimmed 1-2% on more caution on the Christmas spending season – especially in Europe – as well as automotive production this winter. TRIMMING OUTLOOK FOR CELANESEGiven the softer near-term outlook, the Jefferies analyst also trimmed his earnings per share (EPS) estimates on Celanese for Q3 (by $0.06 to $2.84), Q4 (by $0.05 to $3.09) and for 2025 (by $0.10 to $10.40). “Credit easing is likely needed to trigger a demand rebound, and any tailwind from an improved credit environment will likely not be evident until mid-2025 at the earliest,” said Alexander. “Although destocking has faded, demand trends remain broadly sluggish with few signs of a recovery. European demand has yet to trough, North America is flattish and the recovery in Asia has been muted,” he added. By end-market, he sees electronics likely rebounding but at a slower pace until consumer confidence improves and automotive production accelerates. Consumer durables and construction demand is likely to remain soft into next summer. And automotive demand is muted overall, with headwinds to production schedules likely in the near term. Longer term, he expects better momentum in electric vehicle (EV) sales in China. Focus article by Joseph Chang

16-Sep-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 13 September. INSIGHT: Wall Street reaction to Methanex/OCI deal negative on valuation, leverage Methanex’s announcement that it will acquire OCI Global’s international methanol business for $2.05 billion drew a swift negative initial reaction, with its stock price plunging 7.9% at the close of its first day of trading after the announcement. Storm Francine veers path, could potentially hit petchems hubs in west Louisiana Storm Francine continues strengthening into a hurricane as it approaches the southern costs of the US, but its path could veer slightly west and potentially hit key petrochemicals sites in Louisiana which border with Texas. US chem, oil operations begin shutting ahead of storm Francine Some chemical and upstream oil and gas companies are shutting down operations ahead of Tropical Storm Francine, which is expected to strengthen into a hurricane on Tuesday night and make landfall along the US coast of Louisiana on Wednesday or Wednesday night. Francine strengthens into hurricane, heads for US Gulf Coast Francine has strengthened into a hurricane and is moving northeastward across the Gulf of Mexico, with landfall expected in Louisiana, US, on Wednesday afternoon or evening. Louisiana chemical plants shut down as Hurricane Francine nears landfall, major capacities at risk Several chemical companies are shutting down plants in Louisiana, with others taking other precautionary measures as the eye of Francine – now a Category 2 hurricane – approaches the coast for imminent landfall. Hurricane Francine passes over Louisiana parish with many chem plants Ascension parish, home to Geismar and its many chemical plants, was among the regions hardest hit by Hurricane Francine, which has caused hundreds of thousands of power outages. SHIPPING: Asia-USEC container rates plunge by 20% as shippers avoid possible ILA strike Average global rates for shipping containers fell significantly this week, including a 21% decrease from Shanghai to New York, as shippers are shifting cargo deliveries to the US West Coast to avoid the planned strike on 1 October.

16-Sep-2024

HOUSTON (ICIS)–Chemical companies continue to assess the impact from Hurricane Francine on Thursday after the storm made landfall on Wednesday as a Category 2 hurricane on the Louisiana coast. Ascension parish, home to Geismar and its many chemical plants, was among the regions hardest hit by Hurricane Francine, which has caused hundreds of thousands of power outages. Meteorologists at the National Hurricane Center (NHC) have downgraded Francine to a post-tropical cyclone that is continuing to produce heavy rainfall across parts of Tennessee, Mississippi, Alabama, Georgia and the Florida panhandle, as shown in the following image. Source: National Hurricane Center (NHC) CHEMICAL OPERATIONS Several chemical companies shut down their plants ahead of Francine's landfall on Wednesday evening and are assessing damage on Thursday, while some are in the process of restarting. Shell's refinery and chemical sites in Louisiana do not appear to have serious damage from Hurricane Francine, the producer said "at this early stage" on Thursday. Shell is conducting a thorough post-hurricane damage assessment at Geismar and Norco to ensure the integrity of its equipment, systems and processes. Downstream issues have caused Shell to curtail oil and gas production at Appomattox, Mars, Vito, Ursa and Olympus following Hurricane Francine, it said Thursday morning. Shell did not specify the downstream issues. Dow said its sites in Louisiana are safely resuming normal operations. It is unclear what steps it took in preparation for the storm and whether those steps had any effect on operations or production. BASF is assessing the impacts from Hurricane Francine at facilities located in the path of the storm, the company told ICIS in an update on Thursday. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene (EB), styrene and low density polyethylene (LDPE). UTILITIES More than 262,000 customers in Louisiana were without power as of Thursday afternoon, according to the website poweroutage.us. The total was higher than 350,000 earlier in the day. There were more than 38,000 without power in Alabama, 13,000 in Mississippi and 11,000 in Tennessee. Ascension and Assumption parishes as well as the coastal parts of Lafourche and Terrebonne parishes appear to be among the hardest hit, said Entergy, a power company. OIL AND GAS The Louisiana Offshore Oil Port (LOOP) suspended all marine operations on 11 September, according to its website. An estimated 41.74% of current US oil production and 53.32% of US natural gas production in the Gulf of Mexico was shut in as of Thursday, according to the Bureau of Safety and Environmental Enforcement (BSEE). PORTS The US Coast Guard has not yet activated Port Condition Recovery at the Port of New Orleans, but pilots are understood to be ready and able to start moving traffic once cleared. Lake Charles is also currently closed awaiting the Coast Guard to survey the channel, which may happen early on Friday. Operations at Pascagoula, Florida, and Mobile, Alabama, have also been suspended due to adverse weather, according to GAC Hot Port News. RAILROADS Railroads are telling customers to expect delays as they assess damage from the storm. BNSF issued an embargo impacting traffic between Beaumont, Texas, and New Orleans, Louisiana, including Amelia, Texas. The embargo affects interchanges at Amelia, Beaumont and New Orleans. While the embargo is in effect, permits may not be issued until the storm’s impact has been assessed. CSX is closely monitoring the remnants of Hurricane Francine as it moves north-northwest, potentially affecting the CSX network. While no service areas are currently impacted, customers with shipments through the CSX Southeast and Southwest regions could experience potential delays. Leading up to the storm, CSX implemented measures to protect its employees, customers and communities. "Our team is working diligently to ensure minimal service disruptions while maintaining the highest safety standards," CSX said. Norfolk Southern is operating as scheduled and a market participant told ICIS the railroad said it will work with connecting carriers to utilize alternative gateways where possible. The New Orleans Public Belt Railroad said on Thursday that it resumed operations at 14:00 local time (19:00 GMT) following damage assessments. With the Port of New Orleans shut down, railroad companies warned customers of delays as traffic will be diverted following the port's flood-gate closure. Additional reporting by Tracy Dang, Al Greenwood, Stefan Baumgarten, Emily Burleson, Bryan Campbell and Melissa Wheeler Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024.

12-Sep-2024

HOUSTON (ICIS)–Ascension parish, home to Geismar and its many chemical plants, was among the regions hardest hit by Hurricane Francine, which has caused hundreds of thousands of power outages. UTILITIESNearly 350,000 power outages were reported in Louisiana, according to the website poweroutage.us. Ascension and Assumption parishes as well as the coastal parts of Lafourche and Terrebonne parishes appear to be among the hardest hit, said Entergy, a power company. CHEMICAL OPERATIONS Several chemical companies shut down their plants ahead of Francine's landfall on Wednesday evening. On Wednesday, BASF idled operations at Geismar, North Geismar and Vidalia, it said. The company is conducting safety assessments, and operations will resume once those are completed. Roehm is taking its methyl methacrylate (MMA) plant in Fortier, Louisiana, offline. Meanwhile, Dow said its sites in Louisiana are safely resuming normal operations. It is unclear what steps it took in preparation for the storm and whether those steps had any effect on operations or production. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene (EB), styrene and low density polyethylene (LDPE). Upstream, an estimated 38.56% of current US oil production and 48.77% of US natural gas production in the Gulf of Mexico was shut in as of Wednesday, according to the Bureau of Safety and Environmental Enforcement (BSEE). OIL AND GASHurricane Francine caused liquefied natural gas (LNG) loadings to drop 22% this week. If disruptions to LNG loadings last long enough, it could cause an increase in domestic gas supplies, which could cause prices to fall. That, in turn could lead to a decline in prices for ethane, the predominant feedstock that US crackers use to produce ethylene. The ports of Cameron and Lake Charles in Louisiana remained closed, according to the US Coast Guard. That halted access to the Cameron LNG plant and Venture Global’s Calcasieu Pass LNG. The Sabine channel near US Sabine Pass LNG, however, was open, though no cargoes have departed the plant since 10 September. Oil future prices rose by more than a dollar in late morning trading. LOGISTICSThe New Orleans Public Belt Railroad said on Thursday that it will resume operations at 14:00 local time (19:00 GMT) following damage assessments. The Port of New Orleans has shut down, and railroad companies warned customers of delays as traffic will be diverted following the port's flood-gate closure. BNSF has issued a temporary permit embargo affecting all traffic originating or destined to move through the area. STORM UPDATEFrancine has weakened into a tropical depression, with maximum sustained wind speeds of 35 miles/h (55km/h), according to the National Hurricane Center (NHC). The following map shows Francine's projected path. Source: National Hurricane Center Earlier, the storm made landfall on Wednesday evening as a Category 2 hurricane, with maximum sustained wind speeds of about 100 miles/h, according to the NHC. Additional reporting by Emily Burleson, Bryan Campbell and Joseph Chang Thumbnail shows Francine. Image by National Hurricane Center Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024.

12-Sep-2024

HOUSTON (ICIS)–Several chemical companies are shutting down plants in Louisiana, with others taking other precautionary measures as the eye of Francine – now a Category 2 hurricane – approaches the coast for imminent landfall. Roehm is taking its methyl methacrylate (MMA) plant in Fortier, Louisiana offline. BASF earlier on 10 September started procedures to idle operations in Geismar, North Geismar and Vidalia, Louisiana. Shell has shut in oil and gas production in the Gulf of Mexico at its Perdido, Auger and Enchilada/Salsa assets, but its chemical production sites in Geismar and Norco, Louisiana, and Deer Park, Texas, were operating normally as of Shell's latest update on 10 September. Operations were continuing at ExxonMobil's Baton Rouge, Louisiana plant as of 10 September. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene, styrene and low density polyethylene (LDPE). Upstream, an estimated 38.56% of current US oil production and 48.77% of US natural gas production in the Gulf of Mexico was shut in, according to the Bureau of Safety and Environmental Enforcement (BSEE). The Port of New Orleans has shut down, and railroad companies are warning customers of delays as traffic will be diverted following the port's flood-gate closure. Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024. Thumbnail shows wind speed probabilities of Hurricane Francine from the US National Hurricane Center Focus article by Joseph Chang

11-Sep-2024

SINGAPORE (ICIS)–Saudi Arabian producer Methanol Chemicals Co's (Chemanol) specialty chemicals subsidiary Madarat Al-Dhara Chemicals Co has signed an agreement to secure a long-term supply of ethylene oxide (EO) from Sadara Chemical Company. The EO supply is intended for Madarat Al-Dhara's methyl diethanolamine (MDEA) and choline chloride projects, Chemanol said in a filing to the Saudi bourse, Tadawul, on 29 August. Details on cost and volume of the EO supply deal were not disclosed. "Chemanol aims to become one of the largest producers of specialty petrochemicals in the region given that all targeted products would be the first of their kind in the region," the company said. Financial and capacity details of the MDEA and chlorine chloride projects were not disclosed. "Such products would be used in many vital and strategic industries such as oil and gas Industry, nutrition additives industry, extraction of environmental harmful gases, carbon capture and storage technologies and others." MDEA is crucial for gas purification, while choline chloride plays roles in animal nutrition, chemical processes, and industrial applications. In May, Chemanol completed its Saudi riyal (SR) 80 million ($21 million) acquisition of an 80% stake in Global Company for Chemical Industries (GCI), a specialty and fine chemicals manufacturer. The company is aiming to expand its specialty chemicals market share and diversify its product offerings.

30-Aug-2024