Propylene oxide (PO)

LONDON (ICIS)–The largest propylene oxide/styrene monomer (POSM) production complex in Europe is expected to close in October, union FNV said on Tuesday, after an agreement was reached between operator LyondellBasell and employees at the site. The Maasvlakte, Netherlands, plant, which has been offline for most of the last 12 months, will close on 1 October, according to an FNV representative, after the majority of union members at the site backed a deal on severance pay. “The plant at Maasvlakte will close definitely at October 1st,” the representative said. “A vast majority of our union members at Lyondell has voted in favor of a social plan in which the company and the trade unions have come to an agreement on a severance pay and outplacement,” the representative added. LyondellBasell declined to comment on the plans, with a spokesperson stating that no definitive decisions have been made at any of their operations. Joint venture partner Covestro also declined to comment. The unit was taken down for economic reasons between July and October 2024, before being brought down again in December. With a production capacity of 315,000 tonnes/year of PO and 680,000 tonnes/year of SM, the complex is the largest production facility of its type in Europe, but has faced increasing challenges as global capacities have grown and energy costs increased. The Netherlands site is among six in Europe that LyondellBasell placed under strategic review late last year, with the rest centered in the company’s core olefins and polyolefins (O&P) business. The five O&P sites under scrutiny in Europe are in Berre, France; Muenchmuenster, Germany; Brindisi, Italy; Tarragona, Spain; Carrington, UK; and Maasvlakte, Netherlands. Including Maasvlakte, around 15.1 million tonnes/year of chemicals production capacity is currently being rationalised, with the wave of closures rocking the industry increasingly rippling out to other regions, particularly Asia. Thumbnail photo: The Maasvlakte site (Source: LyondellBasell) Additional reporting by Fergus Jensen

11-Mar-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 7 March. LyondellBasell to build metathesis unit to make propylene LyondellBasell has approved plans to build a metathesis unit in Channelview, Texas, that will convert ethylene into propylene, the producer said on Monday. INSIGHT: US to export more chem feedstocks amid drought of US cracker projects US production of ethane, propane and other natural gas liquids (NGLs) will continue to grow while domestic demand for these chemical feedstocks will likely remain flat, a trend that is contributing to a surge in new terminal projects that will export these products to growing markets overseas. Chem shares plunge as US proceeds with 25% Canadian, Mexican tariffs US-listed shares of chemical companies fell sharply – many by more than 5% – on Monday as the US proceeds with plans to impose tariffs on Canada, Mexico and China, its three biggest trading partners. INSIGHT: Retaliatory tariffs to compound pain for US chemicals and key end markets The US ramping up additional tariffs on China to 20% and kicking off 25% tariffs on Mexico and Canada (10% on energy) as of 4 March will hit chemical and key end markets and products as players rush to reconfigure supply chains. US to delay automobile tariffs for one month The US will grant a one-month tariff exemption for the nation's automobile industry, the government said on Wednesday. US to delay tariffs on USMCA-compliant goods from Mexico for one month – Trump The US will delay until 2 April imposing tariffs on Mexican goods that fall under the US-Mexico-Canada Agreement (USMCA), President Donald Trump said on Thursday, 6 March in a post on Truth Social. Wall Street turns more bearish on US chemicals on tariff uncertainty Wall Street analysts are turning more negative on the earnings outlook for chemical companies on increasing US tariff uncertainty. Canada delays second phase of retaliatory tariffs, Ontario plans electricity export tax Canada is delaying its second phase of retaliatory tariffs on goods imported from the US to 2 April, a minister announced on Thursday evening. INSIGHT: US tariffs may persist as they become policy pillar The US government is coming to embrace tariffs as a central part of its economic and fiscal policies, a development that could see such measures persist and threaten margins for the nation's chemical producers.

10-Mar-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 7 March. China Feb manufacturing activity rebounds on seasonality By Fanny Zhang 03-Mar-25 11:47 SINGAPORE (ICIS)–China's official manufacturing purchasing managers' index (PMI) in February marked a return to expansion territory after a soft January reading as factories resumed operations after the Lunar New Year (LNY) holiday. INSIGHT: China set to maintain "around 5%" growth target By Nurluqman Suratman 04-Mar-25 11:00 SINGAPORE (ICIS)–China's "Two Sessions" this week will be closely watched as the government work report is released, outlining the country's policy priorities for the year amid escalating trade tensions with the US. UPDATE: ADNOC, OMV agree on polyolefins JV worth $60 billion By Jonathan Yee 04-Mar-25 16:45 SINGAPORE (ICIS)–Austria’s OMV and the UAE’s Abu Dhabi National Oil Co (ADNOC) on Tuesday agreed to form a $60 billion joint venture (JV) by combining polyolefins businesses Borouge and Borealis following two-year talks. Asia acetic acid market softens on easing supply, downstream turnarounds By Hwee Hwee Tan 05-Mar-25 14:05 SINGAPORE (ICIS)–Asian spot prices for acetic acid imports and exports are being dampened by lengthening supply and softening demand tied to a downstream sector. China targets record 2025 budget deficit to rev up economy By Fanny Zhang 05-Mar-25 14:50 SINGAPORE (ICIS)–China has set its 2025 fiscal deficit target at a record yuan (CNY) 5.66 trillion ($780 billion), equivalent to around 4% of GDP, to fund the government’s stimulus measures and ensure the world’s second-biggest economy would post a 5% growth. Thai central bank lowers interest on slower economic growth, global trade tensions By Jonathan Yee 05-Mar-25 15:34 SINGAPORE (ICIS)–Slower than expected economic growth and downside risks such as escalating global trade tensions spurred by US trade policy led Thailand’s central bank to cut its key interest rate by 0.25 percentage points to 2.00 on 26 February, the Bank of Thailand (BOT) said. PODCAST: Asia propylene demand curbed by weaker PO margins By Damini Dabholkar 06-Mar-25 00:07 SINGAPORE (ICIS)–The northeast Asian propylene import markets have been weighed down by lengthening supply amid restarts at propane dehydrogenation (PDH) units. However, lower affordability levels from derivatives such as propylene oxide (PO) have also curbed import demand. China PP suppliers persist with export end goal amid margin challenges By Jackie Wong 06-Mar-25 11:08 SINGAPORE (ICIS)–Despite poor margins for polypropylene (PP), suppliers in China are expected to continue to persevere with their plans to expand their export sales network and win market shares in southeast Asia. South Korea Feb inflation eases amid growing economic headwinds By Nurluqman Suratman 06-Mar-25 13:50 SINGAPORE (ICIS)–South Korea's headline inflation eased in February, giving the central bank flexibility to loosen monetary policy to boost economic activity amid a slowdown. Thai PTTGC hopes to snap out of losses; eyes US ethane feed for crackers By Nurluqman Suratman 07-Mar-25 14:46 SINGAPORE (ICIS)–Imports of US ethane feedstock will be a key component of Thai producer PTT Global Chemical's (PTTGC) broader strategy to recover from recent losses, alongside initiatives to enhance competitiveness and expand into high-value businesses.

10-Mar-2025

SINGAPORE (ICIS)–The northeast Asian propylene import markets have been weighed down by lengthening supply amid restarts at propane dehydrogenation (PDH) units. However, lower affordability levels from derivatives such as propylene oxide (PO) have also curbed import demand. NE Asia propylene prices cool on weaker demand amid lower affordability levels Oversupply a central issue in northeast Asia for PO makers Tight SE Asia propylene supply likely to continue amid shutdowns In this latest podcast, ICIS senior editor Julia Tan speaks with markets editor Shannen Ng to discuss market conditions and expectations for the near future.

05-Mar-2025

HOUSTON (ICIS)–US production of ethane, propane and other natural gas liquids (NGLs) will continue to grow while domestic demand for these chemical feedstocks will likely remain flat, a trend that is contributing to a surge in new terminal projects that will export these products to growing markets overseas. Targa is expanding its terminal at Galena Park, Texas, so it could export a total of 19 million bbl/month of liquefied petroleum gas (LPG). MPLX and ONEOK plan to develop a terminal in Texas City, Texas, that can export 400,000 bbl/day of LPG. Chemical companies have announced no final investment decisions on any crackers or propane dehydrogenation (PDH) units in the US that would consume the nation's growing supplies of NGLs. Crackers can use NGLs to produce ethylene. PDH units use propane to make propylene. US ETHANE, PROPANE PRODUCTION TO CONTINUE RISINGMidstream companies continue to announce new projects, which would increase US production of ethane and LPG. These projects are on top of the ones that are already under construction and that will start up in the upcoming months. Targa alone is starting up four natural gas processing plants in west Texas in 2026, and it has picked out multiple sites for future processing plants in the region's Delaware and Midland basins. The following table shows the ICIS forecast for US NGL supplies in the next couple of years. Figures are in millions of bbl/day, and they include imports as well as production from gas processing plants and refineries. million bbl/day 2024 2025 2026 Ethane 2.821 2.874 3.099 Propane 2.526 2.619 2.684 Butanes 1.235 1.292 1.347 Source: ICIS US supplies of NGLs are rising because of increased production of crude oil and natural gas. The following table shows forecasts for US production of oil and dry natural gas from the short term energy outlook of the Energy Information Administration (EIA). Oil figures are in millions of barrels/day. Gas production is in billion of cubic feet/day. 2023 2024 2025 2026 Crude oil 12.93 13.21 13.59 13.73 Dry natgas 103.57 103.08 104.60 107.29 Source: EIA As shale reservoirs mature and reservoir pressures decline, the ratio of gas to oil increases. This raises gas production and further increases NGL supplies. NO NEW CRACKER OR PDH CAPACITYThe US has had a drought of new cracker announcements, with 2025 being the first year since 2010 that the country will add no new ethylene capacity. Chevron Phillips Chemical and QatarEnergy will break the drought in 2026 when their Golden Polymer joint venture project starts up. But that's it. ExxonMobil Chemical and Shintech have early plans for crackers, but neither have announced final investment decisions (FID). Westlake has expressed openness into possibly expanding the joint venture cracker that it owns with Lotte Chemical in Louisiana. But any decision would have to follow a review of costs. FG LA LLC, a subsidiary of Formosa Plastics Group, has said little about a two-phased proposed project called Sunshine that would produce ethylene and downstream derivatives. Thailand's PTT Global Chemical (PTTGC) has been considering a cracker in Ohio that would supply ethylene for new PE capacity. The project hit a snag in July 2020, when the company's joint venture partner left. Meanwhile, no company has announced plans to consider any propane dehydrogenation (PDH) units in the US, which convert propane into propylene. Rising costs for labor and material have made capacity expansions less attractive. In addition, the world has an oversupply of many plastics and chemicals, which is providing producers with another reason to forego capacity expansions. Because of the dearth in new chemical projects, demand for NGLs will remain steady in the next couple of years, according to the latest short term energy outlook from the EIA, as shown in the following table. Figures are in millions of barrels per day. million bbl/day 2023 2024 2025 2026 Ethane 2.16 2.30 2.27 2.35 Propane 0.78 0.74 0.78 0.76 Butanes 0.30 0.30 0.27 0.27 US NGLS BOUND FOR OVERSEA MARKETSOutside of the US, companies continue to add capacity despite the supply glut. By 2029, capacity in northeastern Asia will be nearly 43% larger than in 2024 according to the ICIS Supply & Demand Database. For Asia and Pacific, capacity will grow by more than 10% over the same period. In India, GAIL (India) and Nayara Energy have each proposed building 1.5 million tonne/year ethane crackers. In Vietnam, Siam Cement Group (SCG) plans to build Vietnam's first integrated petrochemical complex that will use ethane from the US as a feedstock. For propylene, capacity in northeastern Asia will be nearly 28% larger in 2029 versus 2024. For Asia and Pacific, capacity will be grow by nearly 25% over the same period. In addition, demand for LPG continues to grow because consumers are using it to replace wood and other sources biomass-based fuel. Rising supplies of chemical feedstock in the US and rising demand in the rest of the world are creating an opportunity for midstream companies to connect the producers with the customers by expanding export capacity. DETAILS ON TERMINAL PROJECTS MPLX and ONEOK created the Texas City Logistics joint venture to develop their LPG terminal. Operations should start in early 2028. ONEOK and MPLX are each reserving 200,000 bbl/day for their customers. Targa should complete its 650,000 bbl/month expansion project at its LPG terminal in Galena Park, Texas, in Q4 2025. Another expansion project by Targa should start operations in the third quarter of 2027. The company did not disclose the size of this subsequent. However, it will raise the total LPG export capacity at Galena Park to 19 million bbl/month Enterprise Products is proceeding with its previously announced ethane and propane Neches River Terminal. Phase 1 should start in Q3 2025 and Phase 2 should start in the first half of 2026. Enterprise is expanding LPG loading capacity under a previously announced project at its Enterprise Hydrocarbons Terminal (EHT). That project should be completed by the end of 2026. Enterprise is enhancing its ethane terminal at Morgan's Point, which should be completed in the fourth quarter of 2025. Energy Transfer is adding up to 250,000 bbl/day of NGL export capacity at its terminal in Nederland, Texas. Initial phases should start up in mid-2025. In Q4 2025, the terminal should start exporting ethylene. Energy Transfer has started work on building a 900,000 bbl ethane storage tank at its export terminal in Marcus Hook, Pennsylvania. It is also adding about 20,000 bbl/day of incremental ethane chilling capacity. MIDSTREAM PROJECTSThe following table lists some of the major midstream projects. Company Project Type Capacity Units Location Startup Brazos Midstream Sundance I Gas Plant 200 million cubic feet/day Martin County 24-Oct Brazos Midstream Unnamed Gas plant 300 million cubic feet/day Martin County H2 2025 Delek Unnamed Gas Plant 110 million cubic feet/day Delaware H1 2025 Durango Midstream Kings Landing, Phase II Gas Plant 200 million cubic feet/day Eddy County, NM na Durango Midstream Kings Landing, Phase I Gas Plant 200 million cubic feet/day Eddy County, NM Q4 24 Energy Transfer Frac IX Fractionator 165,000 bbl/day Mont Belvieu Q4 26 Energy Transfer Red Lake III Gas Plant 200 million cubic feet/day Permian Basin completed Energy Transfer Expansion of Orla East Gas Plant 50 million cubic feet/day Orla, Texas completed Energy Transfer Expansion of Grey Wolf Gas Plant 50 million cubic feet/day west Texas completed Energy Transfer Mustang Draw Gas Plant 275 million cubic feet/day Midland Basin H1 26 Energy Transfer Badger Gas Plant 200 million cubic feet/day Delaware mid 25 Energy Transfer Expansion of Arrowhead II Gas Plant 50 million cubic feet/day west Texas Q1 25 Energy Transfer Expansion of Arrowhead III Gas Plant 50 million cubic feet/day west Texas Q1 25 Energy Transfer Red Lake IV Gas Plant 200 million cubic feet/day Permian Basin Q3 25 Energy Transfer Marcus Hook Optimization Terminal 900,000 bbl ethane storage/20,000 bbl/day ethane chilling capacity Marcus Hook, Pennsylvania Construction Underway Energy Transfer Expansion of Nederland NGL terminal Terminal Up to 250,000 bbl/day Nederland, Texas mid 25 Enterprise Fractionator 14 Fractionator 195,000 bbl/day Mont Belvieu Q3 25 Enterprise Mentone West 2 Gas Plant 300 million cubic feet/day Delaware H1 26 Enterprise Mentone West Gas Plant 300 million cubic feet/day Delaware Q3 25 Enterprise Orion Gas Plant 300 million cubic feet/day Midland Q3 25 Enterprise Neches River Terminal (NRT), phase 2 Terminal add 60,000 ethane to raise total to 180,000, Propane 360,000 H1 26 Enterprise Neches River Terminal (NRT), phase 1 Terminal 120,000 ethane, 900,000 refrigerated tank Q3 25 Enterprise, Navigator Ethylene Export Expansion Terminal 550,000/ 1,500,000 tonnes/year Q4 24 & Q4 25 Enterprise Enterprise Hydrocarbons Terminal (EHT) LPG expansion Terminal 300,000 bl/day Houston Ship Channel end 2026 Gulf Coast Fractionators JV * GCF Fractionator Fractionator 135,000 bbl/day Mont Belvieu 24-Nov Moss Lake Hackberry NGL Project Fractionator 300,000 bbl/day Calcesieu Ship Channel NA Moss Lake Hackberry NGL Project Terminal 315,000 bbl/day Calcesieu Ship Channel NA MPLX Harmon Creek III De-ethanizer 40,000 bbl/day Marcellus H2 26 MPLX na Fractionator 150,000 bbl/day Galveston Bay Refinery 2028 MPLX na Fractionator 150,000 bbl/day Galveston Bay Refinery 2029 MPLX Harmon Creek III Gas plant 300 million cubic feet/day Marcellus H2 26 MPLX Secretariat Gas Plant 200 million cubic feet/day Delaware Q4 25 ONEOK Medford Fractionator rebuild Fractionator 210,000 bbl/day Medord, Oklahoma Q4 26, Q1 27 Phillips 66 EPIC NGL Fractionator 110,000 bbl/day Robbstown, Texas proposed Targa Train 11 Fractionator Fractionator 150,000 bbl/day Mont Belvieu Q3 26 Targa Train 12 Fractionator Fractionator 150,000 bbl/day Mont Belvieu Q1 27 Targa Bull Moose Gas Plant 275 million cubic feet/day Delaware completed Targa Falcon II Gas Plant 275 million cubic feet/day Delaware Q2 26 Targa Greenwood Gas Plant 275 million cubic feet/day Midland Q4 23 Targa Pembrook II Gas Plant 275 million cubic feet/day Midland Q4 25 Targa Bull Moose II Gas Plant 275 million cubic feet/day Delaware Q1 26 Targa East Pembroke Gas Plant 275 million cubic feet/day Midland Q2 26 Targa East Driver Gas Plant 275 million cubic feet/day Delaware Q3 26 Targa Galena Park LPG terminal expansion Terminal 650,000 bbl/month Galena Park, Texas Q4 25 Targa Galena Park LPG terminal expansion Terminal total capacity raised to 19,000,000 bbl/month Galena Park, Texas Q3 27 Targa LPG Export Expansion Terminal 1,000,000 bbl/month Galena Park, Texas started up Texas City Logistics LPG terminal Terminal 400000 LPG bbl/day Texas City early 2028 * GCF is restarting after being idled in January 2021. The JV is made up of Targa, Phillips 66 and Devon Energy Insight article by Al Greenwood (Thumbnail shows an ethane carrier)

03-Mar-2025

HOUSTON (ICIS)–LyondellBasell has approved plans to build a metathesis unit in Channelview, Texas, that will convert ethylene into propylene, the producer said on Monday. Construction should start in the third quarter of 2025, and operations should begin in late 2028, LyondellBasell said. The metathesis unit will produce 400,000 tonnes/year of propylene, the company said. LyondellBasell plans to use the propylene in its internal polypropylene (PP) and propylene oxide (PO) units. The company started up its new PO/tertiary butyl alcohol (PO/TBA) plant in Channelview in 2023. By producing its own propylene, LyondellBasell limits its exposure to volatile feedstock prices, said Kim Foley, executive vice president, Global Olefins & Polyolefins and Refining. “This capacity expansion strengthens our ability to meet increasing customer demand and improve our self-sufficiency as we grow and upgrade a core business line for LyondellBasell.” Thumbnail shows PP, which is made from propylene. Image by Shutterstock.

03-Mar-2025

BARCELONA (ICIS)–Europe’s petrochemical sector will need to see bold moves in the EU’s Clean Industrial Deal to help reverse its decline. May be a conflict between aim of making Europe more competitive and environmental goals Europe is in the “last chance saloon” to halt deindustrialisation Europe industry burdened by high cost of energy, CO2 Improved connectivity for renewable power will be essential for chemicals Reform of Carbon Border Adjustment Mechanism (CBAM) welcome if it really protects local manufacturing Huge investment needed to make a low carbon future a reality ICIS forecasts depressed operating rates for global ethylene, propylene to 2035 EU should focus on increasing tariff barriers, defence spending Clean Industrial Deal should be welcomed as a direct response to Antwerp Declaration Deal will be published on Wednesday, 26 February In this Think Tank podcast, Will Beacham interviews Nigel Davis and John Richardson from the ICIS market development team and Paul Hodges, chairman of New Normal Consulting. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

25-Feb-2025

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Last week, something unusual happened: my contact outdid me in pessimism about the chemical markets' recovery. And if you know me, you know that’s not easy. Some call it doom and gloom—I prefer realism. The Developing World’s Potential For months, I’ve argued that sometime in the late 2020s, the Developing World ex-China could become the biggest driver of global chemicals demand. That’s a big could. The key assumption? That this region capitalizes on its youthful population. More babies = bigger working-age populations = more demand. Meanwhile, China and the West are moving in the opposite direction. Fewer babies = shrinking workforces. ICIS Data: By the end of this year, China will account for 41% of global demand for nine major synthetic resins—despite making up just 18% of the global population. The Developing World ex-China will account for only 32% of demand, despite representing 68% of the population. But population alone doesn’t dictate economic destiny. What if the 1992-2021 Chemicals Supercycle was a one-off event? Challenges on the Horizon Climate Change & Migration: The UN’s International Organization for Migration estimates up to 1.5 billion environmental migrants within the next 30 years. In Vietnam, a study suggests six provinces home to 37% of the population could be underwater by 2050. The Rise of AI & Regionalization: Will AI enable the U.S. and other developed markets to reshore manufacturing? If so, what happens to the traditional export-driven growth model that fueled China’s chemical boom? Sustainability & Localized Supply Chains: Will the "less is more" movement in the West curb demand for new products? Could plastics recycling become the starting point for more localized supply chains? The One Certainty: Supply Adjustments Propylene market insights from ICIS: Returning to the 1992-2024 global propylene operating rate average of 80% would require: Capacity growth of ~2M tonnes per year (instead of the projected 5M tonnes per year). Potential capacity closures elsewhere to offset growth in China and the Middle East. Three Critical Actions for 2025 Track Supply Adjustments – Stay ahead of plant shutdowns, delays, and cancellations. Regional market tightening could present opportunities even in a subdued demand environment. Prepare for Trade Protectionism – If you don’t already have a trade data analysis team, build one. The surge in antidumping investigations into Chinese chemicals and polymers in 2024 is just the beginning. Integrate AI Into Workflows – AI isn’t just a buzzword. It’s already cutting costs and streamlining forecasting in increasingly complex markets. The next step? Using AI to refine predictive analytics. The post-Chemicals Supercycle world isn’t easy. It’s complex, volatile, and data driven. But for those who adapt, it’s also full of opportunities. Stay sharp. Stay informed. Let’s navigate this together. 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.

24-Feb-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 21 February. China PC import prices fall on ample supply; outlook bleak By Li Peng Seng 17-Feb-25 14:02 SINGAPORE (ICIS)–Import prices of moulding-grade and extrusion-grade polycarbonate (PC) in China have fallen to a three-week low recently amid ample supplies and weak demand as buyers would only purchase on a need-to basis. Thailand Q4 GDP grows 2.5%, US trade policy uncertainty weighs on outlook By Nurluqman Suratman 17-Feb-25 16:44 SINGAPORE (ICIS)–Thailand's economy grew 2.5% year on year in 2024, boosted by a 3.2% expansion in the fourth quarter on the back of robust exports and private consumption. However, headwinds from global trade disputes threaten its growth outlook for 2025, official data showed on Monday. Reduced SE Asia PP supply opens door wider for China exports By Lucy Shuai 18-Feb-25 15:44 SINGAPORE (ICIS)–Polypropylene (PP) plant shutdowns in southeast Asia open up more export opportunities for China, which is currently beset with oversupply. Asia ethyl acetate, butyl acetate find support from modest demand pick-up By Melanie Wee 18-Feb-25 15:58 SINGAPORE (ICIS)–Asia-Pacific ethyl acetate (etac) markets are seeing improved demand, which is helping to absorb regional supply. Asia's naphtha seen firm short term on supply concerns By Li Peng Seng 19-Feb-25 12:37 SINGAPORE (ICIS)–Asia's naphtha sentiment has further strengthened as supplies arriving in March from the west, namely Europe, Africa, the Americas and the Mediterranean, are lower than expected due to reasons which include gasoline demand and ongoing geopolitical conflicts. US potential 25% tariffs on auto imports could hurt Japan, S Korea By Nurluqman Suratman 19-Feb-25 14:21 SINGAPORE (ICIS)–US President Donald Trump's plan to impose tariffs of around 25% on vehicle imports places South Korea and Japan in the line of fire, as they are the top sources of automobiles outside of North America. S Korea’s S-Oil earmarks W3.5 trillion for Shaheen project in 2025 By Pearl Bantillo 19-Feb-25 16:29 SINGAPORE (ICIS)–S-Oil plans to spend about South Korean won (W) 3.5 trillion ($2.4 billion) in its Shaheen crude-to-chemical project in Ulsan, which accounts for the bulk of the refiner’s capital expenditure (capex) set for the year. Asia fatty alcohols capacity expansions in Q2 to curb spot interest for mid-cuts C12-14 By Helen Yan 20-Feb-25 10:25 SINGAPORE (ICIS)–Expectations of expanded fatty alcohols supply in southeast Asia are likely to dampen buyers’ sentiment and curtail spot interest in the second quarter. Indonesia central bank keeps policy interest rate at 5.75%, for now By Nurluqman Suratman 20-Feb-25 14:28 SINGAPORE (ICIS)–Indonesia's central bank left its policy interest rate unchanged at 5.75% on 19 February, citing elevated global uncertainty, but sees room for monetary policy easing down the road. INSIGHT: Production outages to support Feb Asia petchems price rebound By Joey Zhou 20-Feb-25 19:11 SINGAPORE (ICIS)–Asia petrochemical prices are expected to rise in February from the previous month, mainly due to production outages in oversea markets (excluding China). However, the magnitude of price gains will be limited by new capacities and sluggish demand. Mideast polyols hold steady; prices balanced by cost push, oversupply By Isaac Tan 21-Feb-25 13:48 SINGAPORE (ICIS)–Polyols prices in the Middle East held steady in the week ended 20 February as oversupply conditions outweighed a cost push from rebounding feedstock propylene oxide (PO).

24-Feb-2025

MUMBAI (ICIS)–India’s state-owned Oil and Natural Gas Corp (ONGC) plans to import ethane, which will be used as feedstock for its the dual-feed cracker in Dahej in the western Gujarat state and is seeking shipping partners to facilitate transport of the gas. “ONGC plans to source and supply 800,000 tonnes/year of ethane to secure the feedstock for OPaL [ONGC Petro additions Ltd] [from May 2028 onwards,” the company said on 18 February. OPaL, which is 95%-owned by ONGC, operates the dual-feed cracker, which can produce 1.1m tonnes/year of ethylene and 400,000 tonnes/year of propylene in Dahej.  The cracker runs on a mix of naphtha and C2 (ethane), C3 (propane) & C4 (butane) feedstock. The complex also has a 340,000 tonne/year polypropylene (PP) line; a 340,000 high density polyethylene (HDPE) unit; and two linear low density PE (LLDPE)/HDPE swing plants with a combined capacity of 720,000 tonnes/year. ONGC on 18 February issued an expression of interest (EOI) to partner with firms that will operate and manage very large ethane carriers (VLEC), very large gas carriers and liquefied natural gas carriers in the global market. VLECs are designed to carry up to 1 million barrels of ethane on intercontinental routes. ONGC plans to set up a joint venture company that will be responsible for securing funding and for the construction of the VLECs. It will charter the VLECs from the joint venture company for the transport of its ethane requirement. Interested parties have until 27 March to submit proposals.

21-Feb-2025