Closures, disposals reshaping the global petrochemical sector
The European Union is being hit the hardest by the rationalisation, while the United States and the Middle East are considered relatively immune. Petrochemical makers in Asia are also reducing capacity but at a slower pace compared with the EU.
Here is a list of some of the major closures, divestment and portfolio reviews:
** U.S.-based LyondellBasell (LYB.N), opens new tab in June said it had started exclusive talks to sell four olefin and polyolefin plants in Europe to Munich-based investment firm AEQUITA.
The sites to be sold are in France, Germany, Britain and Spain. The company has also said it is evaluating options for its factories in the Netherlands and Italy.
** U.S. chemical giant Dow Inc (DOW.N), opens new tab said at the beginning of July it would shut down three upstream sites in Europe: an ethylene cracker in Böhlen, Germany and chlor-alkali & vinyl assets in Schkopau, Germany, and its siloxanes plant in Barry, Britain. The company also announced in January that it would idle a cracker in the Netherlands.
** U.S. oil major ExxonMobil (XOM.N), opens new tab said last year it would shut down the steam cracker and close chemical production at Gravenchon in France, adding that the site had lost more than 500 million euros ($582.75 million) since 2018 and remains uncompetitive.
** British oil company Shell (SHEL.L), opens new tab in April completed the sale of its energy and chemicals park in Singapore, which includes a refinery, an ethylene cracker and other petrochemical assets.
The group's top executives told a post-results conference call in May that the group was undertaking a review of its chemical business, including in Europe. Shell hired Morgan Stanley to conduct the strategic review of its chemicals operations in Europe and the United States, the Wall Street Journal reported in March, citing sources.
** BP (BP.L), opens new tab said in February it was looking for potential buyers for its Ruhr Oel refinery, cracker and downstream assets at Gelsenkirchen in Germany.
** French oil major TotalEnergies (TTEF.PA), opens new tab said in April it would shut its oldest steam cracker in Antwerp, Belgium, by end-2027, citing a "significant surplus of ethylene expected in Europe".
** Eni (ENI.MI), opens new tab will complete the closure of Italy's two last steam crackers by the end of this year. One is in Brindisi, Apulia, and the second in Priolo, Sicily. It also closed a polyethylene plant in Ragusa, Sicily.
** Poland's Orlen (PKN.WA), opens new tab said at the end of 2024 it would scale back plans for its olefins petrochemical project, pushing back output until at least 2030 and aiming to cut its estimated cost by as much as a third.
** U.S. chemical group Huntsman Corp (HUN.N), opens new tab announced the closure of its polyurethanes facility in Deggendorf, Germany, and the reduction of some of its other sites and facilities around Europe.
The company will close a facility located in Moers, Germany. The closure is expected to be complete by the end of the current quarter.
** Japan's largest oil refiner, Eneos (5020.T), opens new tab, said in February that it would consider partially halting an ethylene production facility at its Kawasaki refinery at the end of 2027 due to falling demand. It said in March that it would gradually halt production of lubricants and some petroleum products at its Yokohama plant near Tokyo by March 2028, but will consider relocating lubricants' output to other facilities.
** Saudi Petrochemical Group SABIC said last year it planned to permanently shut one of its two naphtha-fed crackers at its plant in Geleen, the Netherlands.
($1 = 0.8580 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Shoppers spot new Nestle chocolate pouches on shelves of major supermarket
A NEW Nestle product has left chocolate-lovers overjoyed as it lands on the shelves of a major supermarket. Shoppers shared their excitement on social media as they were desperate to get their hands on the new product. An eagle-eyed shopper spotted the Milkybar Buttons Crispy Cookie White Chocolate Sharing Bag at their local Sainsburys. With hundreds of comments flooding in, the sharing bag is clearly a hit among chocolate lovers. And for just £2 it's the perfect opportunity to try out the sweet treat with friends and family. The new crispy cookie flavour is described as "white chocolate pieces with crispy cocoa flavoured rice inclusions". It includes their beloved " smooth white chocolate". A description from Milkybar adds: "No wonder we are the nation's favourite white chocolate brand." Inspired by a bakery, the new flavour offers an exciting texture with the rice inclusions. For those looking to stick to the classic flavours, Sainsburys also sell the Milkybar White Chocolate Giant buttons for £2, You can even get a supersized bag for just £2.50 with Nectar. It's part of a wider range of white chocolate products sold by the brand. Shoppers can enjoy the Milkybar White Chocolate mousse for a refreshing chilled snack, or individual bars for the perfect lunchbox filler. Nestle offer a plethora of sharing pouches across their range of chocolates. For those looking for milk chocolate, the Aero Melts Milk Chocolate might be a good choice. Or for those after something a bit more exciting, Sainsburys also sell bags of Munchies. Earlier this week it was revealed that the brand would be bringing back a popular Quality Street chocolate - to the delight of fans. Shoppers spotted the Green Triangle-inspired sharing bar at Asda. It costs just £3.50 for an 84 gram bar, and features all of the delicious flavours of the iconic Green Triangle. The Green Triangle is described as having a "smooth, silky praline filling coated in a milk chocolate shell". Of course, it has a distinctive triangle shape and comes wrapped in a green foil. Nestle spokesperson said: "Quality Street is launching a new Green Triangle-inspired sharing bar, due to hit shelves over the next few weeks. "Inspired by our iconic Green Triangle, we've created a bar filled with Hazelnut flavour filling so that fans don't have to wait until Christmas to enjoy sharing the taste of one of their favourite Quality Street sweets as a delicious treat!" 2
The Guardian
2 hours ago
- The Guardian
Feeling flush? Americans can Venmo government to help pay off US debt
John F Kennedy's sage words from his inaugural address are forever seared into America's political consciousness: 'Ask not what your country can do for you – ask what you can do for your country.' Six decades and some change later, the United States Treasury is keeping Kennedy's spirit alive by offering Americans with a few dollars collecting dust in their Venmo balance a chance to fulfill a new patriotic duty: helping pay off the national debt. The US treasury department has long had a 'Gifts to Reduce the Public Debt' page available for those that dislike traditional charity, feel like they don't pay enough in taxes, or simply want to help the country stay No 1 in an eclectic list of superlatives that includes military spending, Olympic gold medals, prison population, corn subsidies, and healthcare costs. But the new-age, Gen Z-friendly method of payment is a recent addition, first flagged on Twitter by Planet Money's Jack Corbett. A bipartisan punching bag that trades sides of the aisle depending on who's in office and who needs funds earmarked for projects in their state, concern over the national debt is one of few issues that Democrats and Republicans can unite on. Also bipartisan is the debt's growth, which has increased every year since 2001, when it sat at $10.28tn. As of this writing, the debt has ballooned to $36.72tn. America is on track to continue the trend, with the Congressional Budget Office estimating that Trump's Big Beautiful Bill will add $3.4tn to the debt over the coming decade. It is unclear how much money Trump and Elon Musk's 'Doge' saved, although analysis estimates the number at under the advertised $180bn, and a far cry short of the initially advertised $2tn. The federal government spent $6.75tn in Fiscal Year 2024 while collecting $4.92tn in revenue. Highlights of past and present government spending include the $151bn procurement process for the Trump administration's Golden Dome missile defense project, over $2tn on Lockheed Martin's long delayed F-35 fighter jet, and roughly $800bn in annual spending on the Pentagon, which recently failed its seventh audit in a row. Kind-hearted Americans have gone above and beyond their regular tax-paying duties contributing around $67.3m since 1996. That's enough to fund 20 minutes of the US government's spending habit. If Americans could dig into their couch cushions, eat less takeout, and tighten their belts, they might be able to tackle the problem once and for all. It would only take about $107,000 per person, payable via ACH, Paypal, credit or debit card, and now, Venmo.
Telegraph
2 hours ago
- Telegraph
Households at risk of £12.7bn bill for switching off turbines on windy days
Households and businesses risk facing a £12.7bn-a-year bill to cover the cost of switching off wind turbines and solar farms under net zero plans. The grid operator has warned that the cost of paying energy firms to shut down renewables could surge by more than fivefold by the end of the decade. But it also said the Government could avoid the payments by abandoning its climate targets and prolonging the use of gas. Critics said that the latest net zero costs would come as a 'slap in the face to hard-pressed consumers struggling to pay their energy bills'. The payouts will be sparked by the huge expansion of intermittent renewable power sources under Mr Miliband's plan to decarbonise the energy grid. When the wind blows strongly and the sun shines, turbines and solar farms produce more electricity in a short period than the network can cope with. To stop the system being overwhelmed, potentially triggering widespread blackouts, the grid operator has to step in and tell firms to switch them off. Energy companies are then handed payments, known as 'constraint costs', to compensate them for the electricity those sites would have generated. Ministers said they would 'minimise' the increase in costs by fast-tracking new infrastructure such as pylons to connect offshore wind farms to the grid, despite opposition in areas where these are likely to be built. It comes after Ed Miliband was forced to increase subsidies for new wind farms to 'eye-watering' levels to get developers to build them. The Energy Secretary is already under pressure from No 10 over when his green electricity drive will deliver promised lower bills for households. In a new report the National Energy System Operator (NESO) warned that such subsidies could increase by more than fivefold by the end of the decade. It found that in the worst case scenario, compensation payouts could surge from £2.5bn a year at present to a high of £12.7bn a year in 2030. That would occur if the Government fails to force through any major upgrades to the grid, such as new pylon routes, over the next five years. In the report, the NESO said: 'Connection dates for new network build remain uncertain and changes to delivery timelines could significantly impact balancing costs, particularly around 2030. 'If no further network reinforcement takes place (current transmission network remains unchanged) constraint costs could peak at £12.7bn in 2030.' The NESO also projected a surge in the total rebalancing costs – including constraint costs – that taxpayers will face to fund the switch to net zero. If current policies work out, including 'strong consumer engagement' in reducing electricity usage, those total costs are still likely to rise by £8bn a year. The operator found that the best case net zero compliant scenario involved a rapid switch to hydrogen, reducing the financial burden to just over £6bn. But the cheapest option for households was a 'counterfactual' scenario in which Mr Miliband abandoned plans to phase out gas use and petrol cars. In that instance the NESO calculated that total rebalancing costs would rise only slightly, to just over £3bn a year at the end of the decade. The operator expects payouts to fall back after 2030, though only in the counterfactual scenario would they drop below current levels by 2035. Mike Foster, the chief executive of the Energy and Utilities Alliance, said the report showed that ministers should be focussing on a switch to hydrogen. He said: 'So-called constraint payments are a slap in the face to hard-pressed consumers struggling to pay their energy bills. 'The warning from the system operator, that they could reach £13bn by 2030, over £400 a year for the average bill, cannot be justified. 'What is worse, is all that surplus wind and solar power generation wasted could be used to produce green hydrogen – the holy grail in reaching net zero.' Octopus Energy, one of the country's leading providers, said that taxpayers have already forked out £700m on constraint costs this year. The business said that was already £250m more than at the same time last year, adding that the projected £8bn cost by 2030 was 'staggering'. It had previously calculated that subsidies would hit the £6bn mark by the end of the decade, at a cost of £200 per household in the UK. A spokesman for the net zero department said: 'These claims are fundamentally misleading, and wrongly assume that no network infrastructure will be built over the next five years. 'Through our clean power mission, we are working at pace to deliver the biggest upgrade in Great Britain's electricity network in decades, which will minimise constraint costs.'
