Synthetic rubbers

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

SAO PAULO (ICIS)–Argentina’s petrochemicals players are in a wait-and-see mode about the effects a cut to import tariffs announced this week could have in the market and whether it will lower prices which, for many materials, remain higher than global prices. Earlier this week, the Argentinian cabinet said it would cut the so-called PAIS tax from 17.5% to 7.5% from 2 September. Introduced in 2012, the PAIS acronym responds to the name Tax for an Inclusive and Solidary Argentina (Impuesto Para una Argentina Inclusiva y Solidaria) and was presented by the at the time left-leaning administration as a tax on purchases of foreign currency. In practice, given that most imports are priced in dollars, the tax ended being practically an import tariff and contributed to Argentina becoming one of the most closed economies to trade in the world. President Javier Milei, in office since December 2023, has promised to turn the system upside down and make the Argentinian economy a bastion of liberalism. The cabinet’s intention is to end import tariffs altogether. The minister for the economy, Luis Caputo, has been quoted in the Argentinian press as saying the country should be “moving forward in the elimination of all export duties, a perverse tax that we do not like and hinders” Argentina’s economic progress. PETROCHEMICALS MUST WAITThis week, sources in Argentina, who have been reporting higher prices for several materials compared to the rest of the world for months, were sceptical of any quick effect from the cut to the PAIS tax. Some estimated, however, that the lower rates could slash petrochemicals import prices, on average, by $200/tonne. Most sources also mentioned the example of Dow, which is the sole polyethylene (PE) producer in Argentina and has greatly benefited from the closed economy up to now. Petrochemicals and the wider industrial sectors, including construction, remain the hardest hit industries amid the country’s recession, which is trying to digest the ‘shock therapy’ being implemented by the government. Consumers are squeezed and few can afford the luxury of even thinking about purchasing the higher-priced, petrochemicals-intensive durable goods, which are the ones which could revive the beleaguered chemicals industry. Moreover, those with stocks of materials purchased in imports under the previous PAIS rates are unlikely to lower their prices until they sell them – that period could be a few weeks or a few months. “Plastic sales remain weak because people think prices will go down with the tax reduction. But I am not convinced the reduction will be immediate and all at once. Prices could only come down once the new imports under the new regime come into force,” said one source at a large distributor. “It will be slow process, over one or two months – we will have to see how petrochemicals producers react and whether they start lowering prices straight away or do it in phases.” This source and others said Dow announced to its customers in Latin America prices increases of around $100/tonne for most materials, although that increase was not applied in Argentina, said the distribution source. Dow is Argentina’s sole producer of polyethylene. It operates facilities at the Bahia Blanca petrochemicals hub, south of Buenos Aires. According to ICIS Supply & Demand, it has the capacity to produce 730,000 tonnes/year of ethylene, 307,000 tonnes/year of high density polyethylene (HDPE), 329,000 tonnes/year of linear low density polyethylene (LLDPE), and 40,000 tonnes/year propylene. As the sole PE producer in a country locked up to external trade, Dow has greatly benefited in the past two months. Sources reported earlier in the year the company was selling PE at $2,400/tonne, when global prices stood at around $1,200/tonne. The price increase announced earlier in the year added more doubts to the company pricing strategy. Dow had not responded to a request for comment at the time of writing. The source at the large distributor added, “Dow’s $100/tonne increase was not implemented it in Argentina as prices remain higher than global prices. “If the reduction in the PAIS tax brings a reduction of $200/tonne, for example, perhaps Dow first decides to raise prices by $100/tonne and then take the $200/tonne hit and see what the market’s reaction is. Right now, we do not know how it will play out.” STAYING PUTAnother source at a petrochemicals distributor, with decades of experience behind him, described the largest recession it has seen in its career. In such an environment, he went on to say, prices should go down to prop up demand, at least, according to economy theory. But Argentina, it added, has escaped economy theory often in past decades so nothing can be taken for granted. The source even added that it was mulling whether to attend an industry event next week in Buenos Aires, just in case a business opportunity is lost while it attends the conference. On 4 September, the Latin American Petrochemical and Chemical Association (APLA) is holding its annual conference on sustainability, which together with its logistics event and the annual event are the three highlights in the Latin American petrochemicals markets. “There is a strong, very strong recession, and we have to be very attentive to each business that emerges in order to be on the edge of not losing the opportunity or do a bad sale,” said the source. Font page picture source: Shutterstock Focus article by Jonathan Lopez

29-Aug-2024

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. So, you want to just sit back and wait for global chemicals and polymer markets to correct themselves, for the Old Normal to come back? As today’s post on styrene suggests, even assuming thins do eventually return to normal, you will be on for an awful long wait: I estimate that global styrene capacity would have to shrink by an average 174,000 tonnes a year between 2024 and 2030 for operating rates to reach their historic and very healthy long-term average of 88%. The ICIS base case assumes an average 2024-2030 operating rate of 75% as capacity expands by 811,000 tonnes a year. Clearly, and this is same across many other products, the commercial decisions necessary for a turnaround on this scale would take several years. But I anyway see hanging around and waiting for a return to the Old Normal as a waste of precious time, as the global chemicals landscape will never return to the way it was during the 1992-2021 Chemicals Supercycle. The data on styrene underlines the direction of travel including, as mentioned, the scale of global overcapacity and the collapse of Northeast Asian margins since the late 2021 “Evergrande Moment”. Also note the distorting impact of China dominance of global styrene demand. In 1992, China accounted for just 2% of global demand and 22% of the global population, but by the end of this year ICIS expects China to account for 46% of global demand from just 18% of the world’s population. And crucially, China’s demand growth is shrinking as its share of global capacity increase – again just 2% in 1992 rising to a forecast 53% in 2030. The numbers are similar across many other products. It is time for chemicals companies to think long and hard about where their future competitive advantages lie in the light of the ten interconnected forces that I believe are reshaping the global landscape. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

28-Aug-2024

HOUSTON (ICIS)–Canada plans to impose a 100% tariff on all electric vehicles (EVs) made in China, effective on 1 October, and on top of the 6.1% tariff it already imposes on such automobiles, the government said on Monday. The tariff includes electric and certain hybrid passenger automobiles, trucks, buses and delivery vans, the government said. In addition, the government plans to impose a 25% tariff on imports of steel and aluminum products from China, effective on 15 October. The tariffs will not apply to Chinese goods in transit on the day that the duties come into force. Canada could impose more tariffs against other Chinese imports following a 30-day review, it said. Those imports could include batteries and battery parts, semiconductors, solar products and critical minerals. For other countries, Canada plans to limit which ones are eligible to participate in its Incentives for Zero-Emission Vehicles (iZEV), Incentives for Medium and Heavy Duty Zero Emission Vehicles (iMHZEV) and Zero Emission Vehicle Infrastructure Program (ZEVIP). Eligibility would be limited to products made in countries with which Canada has negotiated free trade agreements. CANADA'S EV DUTIES FOLLOW THOSE BY US AND EUEVs made in China have become the target of punitive duties by a growing number of regulators. Earlier in the month, the European Commission announced plans to impose up to 36% countervailing duties on EVs from China. US tariffs on Chinese EVs were scheduled to reach 100% on 1 August. EVs typically consume more plastics on a per unit basis than automobiles powered by internal combustion engines (ICEs). EVs also pose different material challenges, which is increasing demand for different plastics and compounds. Policies that prolong the use of ICE-based vehicles could extend the operating life of the nation's refineries. Companies could be more willing to invest in maintenance and repairs if they are confident that they could recoup their investments. Refineries produce many building block chemicals, such as propylene, benzene, toluene and mixed xylenes (MX). Thumbnail shows an EV charging station. Image by Xinhua/Shutterstock

26-Aug-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 23 August. Aviation fuel prices hit new lows amid growing bearishness European spot jet fuel quotations plunged to 14-month lows towards mid-week, bearing the brunt of tepid demand and ongoing upstream softness, with the short-term outlook unclear as the peak travel season winds down. Europe SAN contract prices increase double digits in August August contract prices have increased €70/tonne in the European styrene acrylonitrile (SAN) market, the first price increase since April 2024, mainly driven by composite costs of the €78/tonne contract price increase for upstream styrene, and the €36/tonne contract price increase for secondary feedstock acrylonitrile (ACN). EU plans up to 36.3% definitive tariffs on EV imports from China The European Commission (EC) has announced a draft decision to impose up to 36.3% definitive countervailing duties on imports of battery electric vehicles (EVs) from China. Quantafuel cancels pyrolysis-based chemical recycling project in Sunderland, UK Quantafuel Sunderland Limited, part of UK recycling major Viridor, has halted the development of its planned pyrolysis-based chemical recycling plant in Sunderland, a company spokesperson confirmed late on Monday. IPEX: Global index down on softer prices in NW Europe, NE Asia Lower chemical prices in northwest Europe and northeast Asia drove the global spot ICIS Petrochemical Index (IPEX) down by 0.2% in the week ending 16 August.

26-Aug-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 23 August 2024. INSIGHT: Asia BD capacity growth to accelerate to 10% in 2025 By Ann Sun 23-Aug-24 10:35 SINGAPORE (ICIS)–The Asian butadiene (BD) market is anticipated to experience large-scale capacity expansion between Q4 this year and end-2025, with nine projects scheduled to begin operations. Asia BDO market demand unable to reduce inventories, oversupply persists By Corey Chew 22-Aug-24 11:16 SINGAPORE (ICIS)–The Asian 1,4-butanediol (BDO) market has been going through a downtrend that started about a month ago, mainly due to the falling domestic China market. INSIGHT: China's EVA capacity expected to exceed 2.6 million tonnes in 2024 By Amy Yu 20-Aug-24 17:12 SINGAPORE (ICIS)–China's EVA capacity is forecast to exceed 2.6 million tonnes in 2024, a year-on-year growth rate of 17%, considering Jiangsu Hongjing New Material a new plant with 200,000 tonnes/year is scheduled to come on stream in Q4. INSIGHT: China plasticizer alcohols' supply growth accelerating By Lina Xu 19-Aug-24 17:08 SINGAPORE (ICIS)–China's plasticizer market is diversifying, leading the supply expansion of feedstock alcohols amid high requirements for end-products and growing emphasis on sustainability in operations in recent years. Asia naphtha back in the black within a day; volatility to stay By Li Peng Seng 19-Aug-24 11:06 SINGAPORE (ICIS)–Asia's naphtha intermonth spread returned to the positive zone on 16 August, after slipping into the red the day before for the first time this year, with volatile trades expected to persist amid uncertainties over supply balances. INSIGHT: China’s MEG export market changes amid volatile global fundamentals By Cindy Qiu 22-Aug-24 14:00 SINGAPORE (ICIS)–China’s monoethylene glycol (MEG) exports have been on an uptrend in recent years due to the rapid expansion of domestic capacity. MEG exports totalled around 93,000 tonnes in January-June 2024 and are expected to exceed 150,000 tonnes for the year as a whole. India’s BPCL to invest Rs1.7 trillion on capacity growth over five years By Priya Jestin 20-Aug-24 12:58 MUMBAI (ICIS)–India’s state-owned Bharat Petroleum Corp Ltd (BPCL) plans to invest rupee (Rs) 1.7 trillion ($20.3 billion) over the next five years to grow its refining and fuel marketing business, as well as expand its petrochemicals and green energy businesses.

26-Aug-2024

TORONTO (ICIS)–As the unprecedented work stoppage at both of Canada’s freight railroads began on Thursday at 00:01 Eastern Time, it remains unclear how or when it may end as the government is reluctant to intervene. Long-awaited rail shutdown starts Government reluctant to intervene Industry warns of economic and public health impacts Following lockout and strike notices, more than 9,000 workers at railroads Canadian Pacific Kansas City (CPKC) and Canadian National (CN) were locked out at midnight, labor union Teamsters Canada Rail Conference (TCRC) and the rail companies confirmed. TCRC said that the parties were still far apart in their negotiations but added that it would remain at the bargaining table. CPKC called on the government for binding arbitration to end the dispute, but Canada’s federal labor minister last week already rejected a similar call by CN. Speaking to Canadian public broadcaster CBC/RDI a few hours before the rail shutdown began, minister Steven MacKinnon said that the government would rely on the collective bargaining process to resolve the dispute, which is about wages, benefits, work scheduling and safety issues. Collective bargaining was “a tried-and-true method” that helped create prosperity for Canadian companies and workers and build the country over decades, he said. “It works when people put the work in that is required to get a deal, to make those compromises at the table, and those are the most enduring results, and that’s our plan, that’s the only plan,” the minister said. Asked about using “back-to-work legislation” to end the dispute, he noted that Parliament is currently not sitting. However, the government was "always prepared for any eventuality”, he indicated but did not provide details. INDUSTRY SAYS GOVERNMENT MUST ACT NOW Canadian and US trade groups, including the US Chamber of Commerce, have called on the Canadian government to step in and end the dispute, potentially through binding arbitration, or if need be, back-to-work legislation. The two railroads each day ship goods worth more than Canadian dollar (C$) 1 billion (US$735 million), and the shutdown threatens to shut down the country's entire economy and harm trade with the US, the groups said. Bob Masterson, president of trade group Chemistry Industry Association of Canada (CIAC), said that the rail disruption was no longer an ordinary labor dispute that could be resolved through bargaining between two parties, with the government standing on the sidelines, but rather involved important public safety and health issues. One of the railroads stopped accepting critical chemicals, in particular chlorine and derivatives for use in drinking water, already on 12 August, as it began winding down operations ahead of the work stoppage, and the other railroad stopped accepting those products shortly afterwards, he said. With about 95% of the population relying on treated drinking water, as of 12 August the rail dispute therefore became “the interest of every Canadian across the country”, Masterson said. Due to its dangerous nature, under law chlorine can only be moved by rail, he noted. The country was “on the road to a public health crisis” and municipalities may soon need to issue water boil advisories, “if you don’t interrupt this now and return service on the railways,” he said. “The train towards a crisis is moving, it gets faster and harder to stop every day, and the time to stop it is now, and the only people that have the responsibility and the tools and authority to do so are the government of Canada,” he said. The chemical industry was at the front end of this supply squeeze, “and we want all elected officials to be focused on that”, he added. HARM TO THE ECONOMY In a separate statement to ICIS, trade group CIAC reminded of the impacts of the rail disruption on the overall Canadian economy, the chemical industry, and chemical trade with the US. In Canada, about 80% of chemical production goes into export, with about 80% of those exports going to the US, according to CIAC. At the same time, Canada-based chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail. US-Canada chemical trade, 2023: Canadian exports of industrial chemicals to the US: Canadian dollar C$18.9 billion, according to CIAC data. Canadian imports of industrial chemicals from the US: C$17.5 billion. More than C$76 million of industrial chemical products move on Canada’s rail network daily, which comes to about C$28 billion a year. Industrial chemicals include basic chemicals, synthetic resins, rubbers and synthetic fibers. Chemicals account for nearly 10% of total Canadian freight rail traffic. Furthermore, the chemical industry’s customers in the automobile, forest products, construction, minerals and other industries rely on rail to ship their products. According to estimates by the Conference Board of Canada, a two-week rail shutdown would result in a C$3 billion loss in nominal GDP this year. A four-week shutdown could lower GDP by nearly C$10 billion in 2024 and result in nearly 50,000 job losses, the board said. The lost income would be felt by households, businesses and government, the board said. Canada’s trucking industry was not a viable alternative to rail as it does not have the required capacity or enough drivers, the board noted. Industry commentators said that the government could not allow the rail stoppage to last more than 7-10 days, after which it would likely need to use back-to-work legislation or binding arbitration to end the dispute. However, binding arbitration takes time, and even with Parliament sitting and working at an expedited pace, it would take a couple of days for back-to-work legislation to become law. In another complication, Prime Minister Justin Trudeau’s Liberal-led minority government relies on support from the left-leaning New Democratic Party (NDP) to keep it in power. The NDP, however, is close to labor unions and has warned Trudeau against imposing binding arbitration or back-to-work legislation. While the work stoppage started on 22 August, its negative impacts for chemical producers and other industries kicked in earlier as they needed to rearrange logistics and prepare for potential plant shutdowns. In the chemical industry, it can be costly to ramp down and restart large petrochemical plants as they are in continuous operation and require a reliable, uninterrupted rail service. Depending on how long a rail disruption lasts, it can take weeks, if not months, for the chemical producers to get production rate back to normal. The following table by the American Association of Railroads (AAR) shows Canadian freight rail traffic, including chemicals, for the week ended 17 August and the first 33 weeks of 2024: (US$1 = C$1.36) Thumbnail photo source: CN Focus article by Stefan Baumgarten

22-Aug-2024

TORONTO (ICIS)–Canada’s federal government needs to exercise its authority and act quickly on the complete freight rail stoppage, set to start midnight at 00:01 Eastern Time, trade group Chemistry Industry Association of Canada (CIAC) said. The simultaneous rail disruption at both of the country’s freight railroads, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), has been looming over the chemical and other industries for months. It was apparent that the rail labor dispute could not be resolved through collective bargaining, CIAC told ICIS in an update on Wednesday. The government therefore should impose binding arbitration, with a prohibition on the right to strike/lockout, the group said. Failing that, parliamentarians could be recalled to pass back-to-work legislation, CIAC said. “We believe it is important for the government to act sooner rather than later to mitigate any impacts to the Canadian economy and the workers who support it, and our trading relationships,” it said. It was government’s and parliament’s role to protect the public interest, from both a public safety perspective and in terms of protecting Canadian workers and businesses broadly from the economic harm that was already being caused by the pending rail stoppage, the group said. As for public safety, CIAC noted in particular the continued rail supply of chlorine to municipalities to ensure safe drinking water. LEARNING FROM THE US Compared with Canada, the US under its Railway Labor Act (RLA), 1926, was more adept at ensuring that railways keep operating during labor disputes, CIAC said. The RLA nearly eliminates the risk of shutdowns while allowing for business and labor to negotiate, the group said. In fact, there have been very few rail labor disruptions in the US over the past 100 years, CIAC said, adding: “Just one, lasting one day.” CIAC is advocating that Canada follow the US approach in order to avoid the near-annual disruptions of Canada’s rail and port infrastructure, it said. CHEMICALS AND RAIL In Canada, about 80% of chemical production goes into export, with about 80% of those exports going to the US, according to CIAC. At the same time, Canada-based chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail. US-Canada chemical trade, 2023: Canadian exports of industrial chemicals to the US: Canadian dollar (C$)18.9 billion ($13.9 billion), according to CIAC data. Canadian imports of industrial chemicals from the US: C$17.5 billion in 2023. More than C$76 million of industrial chemical products move on Canada’s rail network daily, which comes to about C$28 billion a year. Industrial chemicals include basic chemicals, synthetic resins, rubbers and synthetic fibers. Chemicals account for nearly 10% of total Canadian freight rail traffic. CIAC members see reliable rail services as a key factor in deciding whether to locate a new facility or expand operations in Canada, the group said. Likewise, investors see rail service as essential when they are "looking to Canada to take advantage of our skilled labor and abundant and well-priced natural resources”, it added. CANADIAN POLITICSAlthough the chemical and other industries have repeatedly warned about the impacts simultaneous disruptions at both railroads could have on Canada's weakening economy and on trade with the US, the federal government under Prime Minister Justin Trudeau has yet to act decisively. While CIAC declined to speculate about the reasons for the government’s hesitation, political commentators noted that Trudeau’s Liberal-led minority government relies on the left-leaning New Democratic Party (NDP) to keep it in power. Earlier this week, the NDP, which is close to labor unions, warned Trudeau against imposing binding arbitration or back-to-work legislation, as this would undermine the rail workers’ right to bargain for collective agreements. If the NDP withdraws its support in parliament, the government would fall. In current opinion polls, the Liberals are well behind the opposition Conservatives. Map by Miguel Rodriguez Fernandez Rail labor union Teamsters Canada Rail Conference (TCRC) on Sunday served the required 72-hour strike notice on CPKC, following CPKC’s earlier lockout notice, and CN served a 72-hour lockout notice on TCRC. The railroads continued to wind down operations on Wednesday ahead of the start of the work stoppage on Thursday. Trudeau said in webcast remarks to media on Wednesday that the government was following the issue "extremely closely", adding that it was in the best interest of the railroads and the union to find a negotiated resolution. Federal labor minister Steven MacKinnon, who met with the railroads and TCRC on Tuesday, continues to press for a negotiated settlement of the labor dispute, which is about wages, benefits, work scheduling and safety issues. “Get a deal at the table. Workers, farmers, businesses and all Canadians are counting on it,” he said on social media. MacKinnon last week rejected CN’s call to refer the dispute to the Canadian Industrial Relations Board (CIRB) for binding arbitration. Industry commentators said that the government could not allow the rail stoppage to last more than 7-10 days, after which it would likely need to use back-to-work legislation or binding arbitration to end the dispute. The following table by the American Association of Railroads (AAR) shows Canadian freight rail traffic, including chemicals, for the week ended 17 August and the first 33 weeks of 2024: ($1=C$1.36) Thumbnail photo source: CPKC

21-Aug-2024

MUMBAI (ICIS)–India’s state-owned Bharat Petroleum Corp Ltd (BPCL) plans to invest rupee (Rs) 1.7 trillion ($20.3 billion) over the next five years to grow its refining and fuel marketing business, as well as expand its petrochemicals and green energy businesses. 44% of total earmarked for refinery, petrochemical capacity growth Bina refinery/petrochemical project due for commissioning in FY2028-29 New refinery project being mulled As part of the investment initiative named ‘Project Aspire’, some Rs750 billion will go to increasing capacity at BPCL’s refineries and expand its petrochemical portfolio, company chairman G Krishnakumar said in the company’s annual report for the fiscal year ending March 2024. “The demand for major petrochemical products is expected to rise by 7-8% annually. This presents a strategic opportunity to expand refining capacity alongside the development of integrated petrochemical complexes,” Krishnakumar said. BPCL’s planned petrochemical expansions include the new petrochemical projects at its Bina refinery in the central Madhya Pradesh state, and the Kochi refinery in the southern Kerala state. The Bina project is a brownfield expansion that will raise the refinery’s capacity by 41% to 11m tonnes/year, to cater to the requirements of upcoming petrochemical plants, which include a 1.2m tonnes/year ethylene cracker and downstream units. The site is expected to produce 1.15m tonnes/year of polyethylene (PE), including high density PE (HDPE) and linear low density PE (LLDPE); 550,000 tonnes/year of polypropylene (PP); and 50,000 tonnes/year of butene-1 The complex will also produce chemicals such as benzene, toluene, xylene, the annual report said. “Technology licensors for all critical packages, and project management consultants for refinery expansion and downstream units have been onboarded and work at the site commenced in the first week of July 2024,” Krishnakumar said. BPCL has chosen US-based Lummus to provide technologies for the new ethylene plant and downstream units at the complex. The refinery will be ready for commissioning by May 2028, while petrochemical operations will begin in the financial year ending March 2029. At Kochi, BPCL’s 400,000 tonne/year PP project is progressing as per schedule and is on track for commissioning in October 2027. It plans to raise its Kochi refinery capacity by 16% over the next five years to 18m tonnes/year, based on data from the company’s latest annual report. https://subscriber.icis.com/news/petchem/news-article-00110958286 The company also plans to set up additional petrochemical capacities over the next few years. “To meet the anticipated demand beyond our planned expansions in Bina and Kochi, we are actively evaluating options for setting up additional integrated refining and petrochemical capacities within the next 5-7 years,” Krishnakumar said BPCL has begun evaluating options to set up a new refinery with a planned capacity of around 9 million to 12 million tonnes/year, a company official said, adding, “we are exploring a new refinery either on the east coast or at other locations”. In Mumbai, the company also plans to expand its refinery capacity by a third to 16m tonnes/year in the next five years, according to its annual report. In the eastern Odisha state, BPCL expects to begin operations at its 200 kilolitre/day ethanol plant at Bargarh by October 2024. Once operational, the integrated refinery is expected to produce both first generation (1G) as well as second generation (2G) ethanol using rice grain and paddy straw as feedstock. Focus article by Priya Jestin ($1 = Rs83.85) Thumbnail image: The Bharat Petroleum import terminal at Haldia in West Bengal on 13 March 2021. (Debajyoti Chakraborty/NurPhoto/Shutterstock)

20-Aug-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 16 August. US may consider VCM, EDC expansions amid global PVC oversupply – ICIS US-based polyvinyl chloride (PVC) producers may consider upstream and cost-advantaged vinyl chloride monomer (VCM) and ethylene dichloride (EDC) expansions rather than going all the way to the polymer as global competitive pressures in PVC should remain intense, an ICIS analyst said. Canada railroads may lock out workers starting 22 August Freight railroads Canadian Pacific Kansas City (CPKC) and Canadian National (CN) may start to lock out workers on 22 August. Weak demographics to prolong effects of chem overcapacity Weak growth in the world's population will slow economic growth, tighten labor markets and likely prolong the global glut in polyolefins, according to ICIS analysts. INSIGHT: US chem feedstock costs hit pandemic lows as midstream buildout continues Prices for ethane, the predominant US feedstock used to make ethylene, have fallen this month to levels not seen since the pandemic, and they will likely remain depressed until colder weather arrives later in the year. Canada rail disruption could shut economy down, harm trade relations with US US and Canadian chemical distributors and other trade groups are warning about potentially “catastrophic” impacts of a rail disruption that could start in Canada next week.

19-Aug-2024