Mixed plastic waste and pyrolysis oil

SAO PAULO (ICIS)–The Argentinian’s government attempt to turn the economy around has had certain successes in the fiscal front, but high inflation is still challenging the outlook as it continues to eat up on gains elsewhere, according to an economist at Buenos Aires-based Fundacion Capital. Carlos Perez, director at the consultancy, said metaphorically that the Argentinian economy has been released from the intensive care unit but only to be moved on to the general ward of an imaginary hospital, “The economy remains a patient.” Perez, who was an executive at Argentina’s central bank between 2004 and 2013, said he was impressed with the fiscal consolidation in President Javier Milei’s first nine months in office, but added the challenges ahead remain daunting and a change in society’s mindset – a “regime change”, he said – is needed to make the system functional. While at this stage most economists think Milei could go 50/50 to success or failure, Perez said his opinion now would be tilted towards a 60% chance of success, because of the quick progress done so far. ON THE TIGHTROPEHowever, a 40% chance of failure is still painfully high for a society which has been battered by half a century of economic up and downs – in the past two decades, more downs than ups. Many of Milei’s policies are inspired in center-right former President Mauricio Macri (2015-2019), who tried to liberalize one of the closest economies in the world; the experiment worked for a bit, but the return of the center-left Peronists changed course again. All in all, since former President Nestor Kirchner’s first term (2003-2007), who was then to be succeeded by his wife Cristina Fernandez de Kirchner, the economy in Argentina has lived on steroids, with widespread subsidies which Milei has started to withdraw. Printing money to fund that spending became the norm. The result is Argentina’s stratospherically high inflation, still running at annual rate of 237% and with monthly inflation still running at over 4% – bringing monthly price rises below that threshold was one of Milei’s key targets. “The economy has gone into intermediate care, but it is still early to see the light at the end of the tunnel. But considering the fiscal adjustment in these nine months, with respect to the fiscal results that Argentina had in the last 50 years, one has to say that in fiscal terms the government has done a very good job,” said Perez. “When I say very good, what I mean is that not only you have achieved to cover public spending, but also to cover the payment of the interest on the public debt that you were having because of the recurring fiscal deficits, ie they have achieved a primary surplus.” However, the cabinet has been able to achieve a primary surplus with drastic cuts to public spending – the start of subsidies’ withdrawal or putting on hold all public works, for instance – which are denting consumption at the same time. However, Perez says cutting public spending is in a way the healthiest option to achieve a surplus, the other two being by issuing debt or increasing spending, “Both are a little bit bread for today and hunger for tomorrow,” said Perez. “What happens is that you had hyperinflation on the horizon, and the fiscal imbalance was the implicating variable par excellence. The cabinet chose the healthiest way [to achieve a surplus].” While there have not been yet widespread redundancies among civil servants, Perez expects that process to happen gradually in the coming quarters, with public authorities setting up schemes for leavers in which, for example, they give them a period of 12 months to find another employment in the private sector. “The cabinet wants the private sector to be the motor of the economy. That will imply a change in society’s mindset, which has lived in a subsidized system for more than 20 years, accustomed to Nanny State, with a small break during Macri’s term which never amounted to a proper regime change,” said Perez. “Society is asking for radical change, and the certainty of regime change is not yet installed in the economic agents’ minds. It is very different for the business community to take decisions on investments with an installed, stable regime than to take those decisions under rules which may last as little as one cabinet’s term.” LIQUIDITY IMPROVEMENTS STALLArgentina’s fiscal deficits continuously knocked on the door of the non-independent central bank, who kept printing money and ran out of pretty much all its reserves. During Milei’s first five months in office, up to May, the central bank also overturned that situation and bought approximately $3 billion/month, accumulated reserves. “However, from June to now it bought less than $200 million in the past 100 days – practically nothing. What’s happening? The real exchange rate today is very similar to what it was before the devaluation of December 2023, ie what was devaluated has been eaten up by inflation,” said Perez. “The exchange rate between the peso and the dollar is devaluating at around 2% per month, but monthly inflation remains at 4% per month, approximately. And you keep accumulating distortion.” Many other distortions in Argentina’s economy remain, said Perez, such as currency controls which limit the buying or selling of foreign currency. The government wanted to withdraw those quickly, but it found the treasury’s coffers were very much intertwined with the economy system inherited. Another bailout agreement with the IMF may also be necessary, he added, to give breathing space to the administration to implement its plans, which the IMF has endorsed. Like most other bodies, including the IMF, Fundacion Capital is projecting a fall in Argentina’s GDP of 4-5% this year, with a strong rebound in 2025, which will be led by the commodities exports boom coming from both agro and oil and gas. Petrochemicals-intensive manufacturing sectors, however, may still take a while to feel the recovery in earnest, according to sources, as consumers shy away from big-ticket purchases such durable goods – their pockets are expected to remain squeezed still for a few quarters. “If you had asked me in December about the chances of success, I would have also said 60% chance of failure, and 40% of success. As of now, I think those values have reversed and we are looking better. It’s still little optimism, but at least we can see an open ending,” said Perez. “It will depend on how the government succeeds in implementing the cultural change it wants, showing this is not just like the Macri parenthesis but an actual regime change. It has several weaknesses, not least its minority in both Congress and Senate," said Perez. “The cultural change must be adopted by society as well, whom I believe this time can clearly see there is not money in the state coffers. Let's see – but the truth is that society was fed up with the politics of the past years and where they led us.” Interview article by Jonathan Lopez

13-Sep-2024

SITGES, Spain (ICIS)–Chemical companies will find it easier to charge a green premium as the cost of carbon increases, fossil feedstock availability declines and customers realize the true value of the products they are buying. The cost of living crisis and poor profitability down industrial value chains mean that companies are resistant to paying more for low carbon and more sustainable products. But that will change as regulators push up the cost of carbon content in materials while the switch away from fossil fuels will make green alternatives more attractive, according to panel speakers at  the Fecc (European Association of Chemical Distributors) annual congress in Sitges, Spain. They argue that people will be willing to pay a green premium once there is regulatory support for carbon pricing, which will incentivize customers to take account of the savings low carbon products offer. Richard Jenkins, senior vice president for coatings solutions at France’s Arkema said: “The number of carbon credits will reduce, the number of companies seeking them will increase, and this will drive up the value of CO2 avoidance. So when I’m sitting in front of customers, I’m telling them they have to consider the whole cost of carbon – it might cost more per unit but overall you are saving on the costs of CO2.” The EU’s Emission Trading System (ETS) works under the principle of “cap and trade” where  companies are granted allowances for the maximum amount of CO2 they may emit from their facilities. They may buy and sell their allowances but the overall volume is steadily reduced each year in line with the EU’s climate targets. As they become more scarce, the price tends to increase. Georg Winkler, senior partner for consultants McKinsey & Company added: “If you decarbonize polyethylene (PE) packaging and then break down the actual costs, they are tiny – this should only change the price of the product by a cent or so. Also, if we have a single-use-plastics tax in Europe then we can point out the cost saving to our customers.” Ib Jensen, president and CEO of Swedish specialty chemicals group Perstorp said: “I don’t like the term green premium; I prefer the term fossil discount. Consumers are increasingly ready to pay a premium, especially in B2C (business-to-consumer), but also in B2B (business-to-business) they are appreciating [the need for a] green premium.” As the transition to low-carbon transportation accelerates, demand for diesel and petroleum will decrease, leading to the closure of more oil refineries. In turn this will reduce availability of petrochemical feedstocks for chemical production, potentially pushing up the cost of these materials. Arkema’s Jenkins said: “I don’t believe that today’s fossil-based chemistry will remain at the same scale and cost that it is today. We drive a lot less than we used to and some of my suppliers are telling me that some raw materials will be less available in the future. I think the old solutions may start to cost more, and as we get to scale the cost of new solutions will come down.” He added: “There is a lot of focus on energy efficiency so solutions which contribute to an overall cut in the cost of use are important. Now you’re talking about value rather than per unit cost – what it is doing and enabling and solving versus what it is, which is product push.” The Fecc annual congress takes place in Sitges, Spain from 11-13 September 2024. Focus article by Will Beacham Thumbnail photo source: Jeppe Gustafsson/Shutterstock

13-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)–Energy producers have shut in almost 42% of US oil production in the Gulf of Mexico because of Hurricane Francine, a regulator said on Thursday. The following table summarizes the platforms and rigs that were evacuated, and oil and gas output shut in. Total % of US Gulf Platforms evacuated 169 45.55 Rigs evacuated 3 60 Total Shut-in Percentage of GOM Production Oil, barrels/day 730,472 41.74 Gas, million cubic feet/day 991.68 53.32 Source: Bureau of Safety and Environmental Enforcement (BSEE) The US Gulf accounts for 14% of US crude oil production and 5% of total dry gas production, according to the US Energy Information Administration (EIA). Meanwhile, the Louisiana Offshore Oil Port (LOOP) suspended all marine operations on 11 September, according to its website. Francine made landfall on Wednesday evening as a Category 2 hurricane on the US coast of Louisiana. 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

SINGAPORE (ICIS)–Energy giant Saudi Aramco has signed new agreements to advance separate expansion plans with Chinese petrochemical producers Rongsheng and Hengli. Signing conducted during China Premier Li’s state visit to Saudi Arabia Deals with the Chinese firms part of Aramco's downstream expansion Aramco moves closer to acquire 10% of Hengli Petrochemical Chinese Premier Li Qiang and Saudi Crown Prince Mohammed Bin Salman on 11 September discussed cooperation in energy, investment, and trade, according to state news agency Saudi Press Agency (SPA). In a separate meeting with GCC secretary general Jasem Mohamed Albudaiwi in Riyadh, Li called on China and Gulf Cooperation Countries (GCC) countries to align their development strategies and “speed up free trade agreement negotiations”, according to Chinese state media Xinhua. Li is in the Middle East on 10-13 September for state visits to Saudi Arabia and the UAE, both members of GCC. The four other members of GCC are Bahrain, Kuwait, Oman and Qatar. PLANS WITH RONGSHENG The new agreements follow a previously signed framework agreement with Rongsheng Petrochemical for a potential joint-venture expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. SASREF operates a 305,000 barrel/day refinery complex in Al-Jubail, Saudi Arabia with downstream aromatics units that can produce 260,000 tonnes/year of toluene and 275,000 tonnes/year of benzene, according to the ICIS Supply and Demand Database. Aramco now owns 10% of Rongsheng Petrochemical, bought for $3.4 billion, with further plans between the two companies to take stakes in each other’s subsidiaries. Rongsheng Petrochemical manufactures and distributes a range of petrochemical and chemical fiber products, including purified terephthalic acid (PTA), polyester yarns, polyester filaments, and polyethylene terephthalate (PET). The Saudi oil giant intends to acquire 50% of Ningbo Zhongjin Petrochemical (ZJPC), which is fully owned by Rongsheng, with plans to upgrade existing assets and jointly develop a new materials project in Zhoushan. The proposed Chinese yuan (CNY) 67.5 billion Zhoushan new materials project would produce polyethylene (PE), propylene oxide (PO), styrene, ethylene vinyl acetate (EVA), polyolefin elastomer and bisphenol A (BPA). Rongsheng, in turn, would acquire a 50% stake in Aramco’s SASREF, which operates a refinery in Jubail. POTENTIAL DEALS WITH HENGLI With Hengli, talks have advanced relating to Aramco’s potential acquisition of a 10% stake in the Chinese group’s petrochemical arm, subject to due diligence and required regulatory clearances.’ The two companies had signed a memorandum of understanding (MoU) on the proposed transaction in in April 2024. Hengli Group operates across the entire production chain of oil refining, petrochemicals, polyester film, and textiles. It is one of the biggest PTA producers in China. "China is an important country in our global downstream growth strategy," Aramco downstream president Mohammed Al Qahtani said. "These agreements reflect our collective intention to elevate our relationships in vital sectors to advance our downstream objectives." Aramco is targeting a fourfold increase in its crude oil-to-chemicals conversion capacity to four million barrels/day by 2030. Focus article by Nurluqman Suratman Thumbnail image: Chinese Premier Li Qiang meets with Saudi Crown Prince and Prime Minister Mohammed bin Salman Al Saud, and co-chairs the Fourth Meeting of the High-Level Chinese-Saudi Joint Committee with him at Riyadh's al-Yamamah Palace in Saudi Arabia on 11 September 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

SAO PAULO (ICIS)–Petrobras has begun start-up procedures for Brazil's largest natural gas processing unit (UPGN) in Itaborai, near Rio de Janeiro, the state-owned energy major said on Wednesday. The company received authorization from regulator the National Agency of Petroleum, Natural Gas and Biofuels (ANP) for industrial operations on 9 September. The facility will process gas from the pre-salt layer of the Santos Basin, transported via the new Route 3 gas pipeline; the project is strategic for Petrobras, which has said it wants to increase natural gas supply to the Brazilian market profitably. The move comes just days after the government passed new regulations for the natural gas market which are aiming to increase domestic supply; the move was praised by chemicals companies, although analysts concurred that the key players to make the regulation a success will be the oil and gas majors. Currently in its final preparation phase, the UPGN is undergoing process and equipment calibration, and commercial operations are expected to commence in early October. The project will enable the flow of up to 18 million cubic meters per day (cbm)/day) and processing of up to 21 million cbm/day of gas, reducing Brazil's dependence on imports. Petrobras has renamed the complex housing the UPGN to Boaventura Energy Complex, referencing the preserved ruins of Sao Boaventura Convent within the site. Future plans for the complex include two gas-fired thermoelectric plants and additional refining units for fuels and lubricants. Once completed, the facility will have production capacities of 12,000 barrels/day for Group II lubricating oils, 75,000 barrels/day for S-10 diesel, and 20,000 barrels/day for aviation kerosene, operating in synergy with the Duque de Caxias Refinery. Duque de Caxias is also where Brazil’s polymers major Braskem operates some facilities, and the company has repeatedly said it would expand that site if more and cheaper natural gas was available.

11-Sep-2024

SAO PAULO (ICIS)–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. According to a Tuesday morning update from the US’ National Hurricane Center (NHC), the storm is to become a hurricane when it makes landfall later in the day, although it should weaken soon after that as it heads north. On Monday, the NHC already said the storm would develop into a hurricane, but its forecasted trajectory then was to hit central parts of Louisiana – including New Orleans – but not the industrious western part of the state. Louisiana has declared a state of emergency; the state has just commemorated the 19th anniversary of Hurricane Katrina, which brought havoc to New Orleans’ outer and poorer suburbs from which many are still recovering. If the current, Tuesday morning forecast holds, key petrochemicals-heavy municipalities in Louisiana such Plaquemine, Geismar, Baton Rouge, and Taft, among others, could be hit by Francine’s gusts. Companies such as Methanex or CF Industries, with production facilities in the areas, had not responded to a request for comment about their hurricane preparations at the time of writing. “Francine is moving toward the north-northeast near 8 mph (13 km/h).  A turn to the northeast with an increase in forward speed is expected later today or tonight.  On the forecast track, Francine is anticipated to be just offshore of the coasts of northeastern Mexico and southern Texas through this [Tuesday] afternoon, and then move across the northwestern Gulf of Mexico, making landfall in Louisiana on Wednesday,” said the NHC. “After landfall, the center is expected to move into Mississippi on Wednesday night or Thursday. Maximum sustained winds are near 65 mph (100 km/h) with higher gusts. Strengthening is expected through Wednesday morning, and Francine will likely become a hurricane later today or tonight [Tuesday]. Francine is expected to weaken quickly after landfall.” CHEMICALS, OIL, GASLouisiana is home to many large petrochemical hubs that produce polyolefins, polyvinyl chloride (PVC), caustic soda, ethylene oxide (EO), ethylene glycol (EG), isocyanates, polyols, and ammonia among many others. The state has numerous refineries. Several offshore oil wells are off of the coast of Louisiana. Companies will often evacuate them and shut-in oil wells – majors such as Shell or ExxonMobil have announced so. The Gulf of Mexico accounts for about 14% of total US crude production and 5% of dry gas production, according to the country’s Energy Information Administration (EIA). The state is home to the Louisiana Offshore Oil Port (LOOP), the only deepwater oil port in the US. If the port shuts down, then the US would lose an important outlet for oil exports. That could offset some of the shut-in wells. Louisiana is also home to two large terminals that export liquefied natural gas (LNG) in the western part of the state. Sabine Pass LNG is in Sabine, Louisiana, and Cameron LNG is in Hackberry, Louisiana. Any shutdowns could affect domestic natural gas markets if the terminals spend too much time offline. Domestic gas supplies could build up, causing local prices to fall. Prices for ethane, the predominant feedstock for ethylene production, typically follow those for natural gas. Ethane prices could fall further if Francine disrupts operations at any of the crackers in Louisiana. LOUISIANA VS TEXAS IMPACTResidents of the Gulf Coast, from Mexico's Yucatan peninsula to the US' state of Alabama, are well accustomed to living with extreme weather events. In times of storms and hurricanes, many turn to specialized sites such as Space City Weather, which on Tuesday did not seem too worried for the fate of Texas – more so about Louisiana's. Space City Weather's main analyst, Houston-based Eric Berger, reiterated on Tuesday the hurricane will be "no joke" in Louisiana, even if for many Texans it will have looked like more like “a regular late" summer day. “The tropical system will remain well offshore from Texas, and effects for most of our area will be minimal. In fact, I would go so far as to say that by tomorrow [Wednesday] people in Houston will be going, ‘Hurricane? What hurricane. This was a joke.’ Well, people who didn’t know better will be thinking that at least — but not readers of this site,” said Berger. “Francine will not be a joke for southern Louisiana. The tropical storm has sustained winds of 65 mph and is likely to move inland Wednesday afternoon or evening as a Category 2 hurricane. The state’s most populated area, from Baton Rouge to New Orleans, will be directly impacted with winds, rains and storm surge.” The analyst concluded saying that for the most part Houstonians will not be able to tell a hurricane is passing offshore on Tuesday and Wednesday. “Skies will be mostly cloudy, with highs in the mid-80s [degrees Fahrenheit, around 29°C], which is cooler than normal for this time of year,” said Berger. “Perhaps that’s our greatest takeaway from this storm, some slightly cooler days. I’m not complaining.” Source: US National Hurricane Center

10-Sep-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 6 September. EU chemicals production gradually firming, short of recovery levels – Cefic Chemicals production in the EU has continued to firm through 2024, but weak demand is keeping output growth below recovery levels, with energy prices still substantially above US levels in the region, trade body Cefic said. Europe jet fuel prices hit new lows on supply overhang, crude softness Average European jet kerosene spot prices for cargoes fell 6% week-on-week while barge prices dropped 5% from the week prior as supply overhang and lack of demand continues to haunt the market. Europe markets slump on US, China demand worries, commodity shocks Europe chemicals shares and public markets slumped on Wednesday in the wake of sell-offs in Asia and the US on the back of growth fears and a crude oil sell-off. Europe August acetic acid contracts roll over Acetic acid contract pricing for August was assessed at a rollover in Europe amid balanced supply and seasonally low demand. Global spot index up on gains in NE Asia, NW Europe The global spot ICIS Petrochemical Index (IPEX) was up for the first time in four weeks in the week ending 30 August, on the back of increases in northeast Asia and northwest Europe.

09-Sep-2024