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Singapore eases monetary policy; trims 2025 inflation forecast
SINGAPORE (ICIS)–Singapore’s central bank effectively loosened its monetary policy  on Friday – by allowing a more gradual appreciation of the Singapore dollar (S$) – as inflationary pressures have eased. The Monetary Authority of Singapore (MAS), which utilizes foreign exchange as its primary policy tool, reduced slightly the slope of the Singapore dollar (S$) nominal effective exchange rate (NEER) policy band to “ensure medium-term stability”, it said in a statement. The NEER refers to the value of Singapore dollar against a basket of currencies of its major trading partners. The monetary policy easing on Friday was the first since March 2020. The width of the S$NEER policy band and the level at which it is centered were left unchanged, the central bank said. “Overall, the pace of consumer price increases has moderated across a broad range of goods and services, and core inflation is presently low and stable,” MAS said. Singapore’s average core inflation in Q4 2024 fell to 1.9% from 2.7% in Q3. MAS reduced its average core inflation forecast for 2025 to 1.0-2.0%, down from 1.5-2.5% previously. Business cost- and demand-driven inflationary pressures are expected to remain contained. However, imported costs should stay moderate amid projected global oil price declines and favorable supply conditions in key food commodity markets. Singapore possesses no hydrocarbon resources and imports crude oil for its refining and petrochemical industries. More than 100 global chemical firms, including energy majors ExxonMobil and Shell, are housed at its petrochemical hub Jurong Island. Singapore’s GDP growth is forecast to moderate to 1.0-3.0% in 2025, on global trade policy changes, which could weigh on the domestic manufacturing and trade-related services sectors, said MAS. As a trade-dependent economy, Singapore has a reliance on global commerce, meaning changes are likely to weigh on its domestic economy. “Global economic policy uncertainty has risen since the October [2024] monetary policy review, mainly reflecting expectations of increasing trade policy frictions,” MAS added. Following a period of frontloading of exports amid fears of Donald Trump’s America First administration imposing tariffs on foreign goods, manufacturing and trade activity globally is anticipated to normalize. Still-strong wage growth amid supportive labor market conditions should support steady consumer spending in advanced economies, though global growth could slow over 2025. ($1 = S$1.35)
INSIGHT: Trump’s moratorium on federal wind projects may have little effect on epoxy
HOUSTON (ICIS)–The moratorium on federal permits for wind projects will likely have little effect on the US industry and on the epoxy resins it consumes because most turbines are built on private land. Wind turbines make up a fast-growing market for epoxy resins. They also consume unsaturated polyester resins (UPR) and lubricants. The moratorium on federal wind permits was among the numerous orders that US President Donald Trump issued on his first day in office. The effect on the moratorium will likely be small, since only 5% of utility-scale wind capacity is generated by turbines on federal land, according to the US Department of the Interior. Some of this may be attributed to the share of wind power installed in Texas, most of which is private and not owned by the federal government. Out of the 150 gigawatts (GW) of installed US wind energy, more than 41GW was in Texas as of 2023, according to a report issued by the Ernest Orlando Lawrence Berkeley National Laboratory. Out of the new wind capacity installed in 2023, 1.3GW out of 6.5GW was installed in Texas, the report said. Expansion of wind energy has been supported by a federal production tax credit, according to the report, and Trump did not rescind that tax credit in his executive order. State policies also support wind energy, and those policies should continue regardless of the executive orders. The trend that is slowing down the wind industry is high interest rates. Those, as well as interconnection and siting, helped make 2023 the lowest in terms of installed capacity since 2014, according to the report. LARGE PIPELINE FOR OFFSHORE WIND PROJECTSThe US has a large pipeline of possible offshore wind projects, with 932 megawatts (MW) under construction, according to a 2023 report from the Department of Energy. Another 1,100MW off capacity have received local permits and federal approval of its construction and operational plan. Nearly 21GW are in the permitting stage, but it is unclear whether these offshore projects will need any federal permits. State jurisdiction of submerged lands can extend out to three or nine nautical miles, depending on whether the land is under the Atlantic or Pacific ocean or whether it is under the Gulf of Mexico. Offshore wind capacity totaled only 42MW, making up a tiny share of total US capacity, according to the 2023 report. TRADE GROUP OPPOSES MORATORIUMDespite the small number of wind projects on federal land, the American Clean Power Association (ACP) spoke out against the moratorium. “ACP strongly opposes blanket measures to halt or impede development of domestic wind energy on federal lands and waters. The contradiction between the energy-focused executive orders is stark: while on one hand the administration seeks to reduce bureaucracy and unleash energy production, on the other it increases bureaucratic barriers, undermining domestic energy development and harming American businesses and workers,” the group said. “For too long, we have witnessed careening policy restrictions on the development of energy resources on our nation’s vast federal lands. Regardless of administration, ’some of the above’ strategies are not good energy policy. No nation can achieve energy dominance absent consistent policy that moves beyond the idea that energy systems have partisan character,” the ACP said. The paltry amount of wind power installed on federal land hides its potential. Federal lands have the potential to produce 875GW of land-based wind energy, according to a report issued in 2025 by the National Renewable Energy Laboratory (NREL). If the most stringent siting constraints are assumed, then federal land could produce 70GW of land-based wind. Europe provides another illustration of the potential growth for wind power. It has 278GW of power capacity, with 243GW onshore, according to Wind Power, a trade group. Capacity should grow by 22GW/year from 2024-2030. The trade group Epoxy Europe estimates that wind energy consumes 40,000 tonnes/year of the epoxy resins produced by its members. DETAILS ON THE MORATORIUMUnder one of his executive orders, Trump requested that the government conduct a review of federal wind leasing and permitting policies. Until the government completes that review, no new or renewed approvals, rights of way, permits, leases or loans will be issued for onshore or offshore federal wind projects by the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Energy, the administrator of the Environmental Protection Agency (EPA) and the heads of all other relevant government agencies. Moreover, the government will not lease the Outer Continental Shelf (OCS) for wind projects. Existing wind leases in the OCS will be reviewed to determine if they should be amended or terminated because of ecological, economic and environmental reasons. The government will review the future of defunct and idle wind turbines and issue a report that require their removal. Trump also ordered that the Secretary of the Interior impose a temporary moratorium on the Lava Ridge wind project, which is being developed by Magic Valley Energy in the state of Idaho. It would have up to 400 turbines and produce more than 1GW. Magic Valley Energy is a subsidiary of LS Power. Insight article by Al Greenwood (Thumbnail shows wind turbines. Image by Jon Santa Cruz/Shutterstock)
Wacker Chemie expands Asia specialty silicones output with new Japan, South Korea plants
LONDON (ICIS)–Wacker Chemie has started up two new specialty silicones plants in Japan and South Korea to meet growing demand in Asia, it said on Thursday. The facilities in Tsukuba, Japan and Jincheon, South Korea, will meet rising demand from the automotive and construction industries. The Germany-based chemicals producer said it invested an amount in the “double-digit million euro range” in the expansion. It did not disclose specific capacity figures. Wacker said its’ Tsukuba site in Japan would focus on the automotive sector, particularly electric vehicles. At Jincheon in South Korea, it aims to increase the output of silicone sealants for the construction industry. As well as automotive and construction, specialty silicones are used in the chemicals, cosmetics, medical technology, energy, electronics, paper and textiles sectors.

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PODCAST: Major new Cefic report models paths to net zero carbon emissions by 2050
BARCELONA (ICIS)–Detailed modeling by Europe’s principal chemicals trade association analyzes different potential routes and technologies as the industry moves towards its aim of carbon neutrality by 2050. Report aims to guide chemicals to 2050 EU Green Deal goal of climate neutrality Covers Scope 1, 2, 3 including embedded carbon and end of life emissions Modeling covers many types of technologies Industry will compete with other sectors for access to scarce resources Report models the huge level of investment required Click here to download Cefic’s report “The Carbon Managers: Modelling Possible Pathways for the EU Chemical Sector’s Transition Towards Climate Neutrality and Circularity with iC2050.” In this Think Tank podcast, Will Beacham interviews Florie Gonsolin, director industrial transformation projects at Cefic, 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.
Liquid markets key to Romanian electricity, gas expansion – energy minister
Ministry of energy working with ministry of finance to ease taxation regime Romania developing renewables, nuclear, gas and biomethane production by 2030 Priority is to improve interconnections with Republic of Moldova LONDON (ICIS)–Romania needs to develop liquid markets and reduce taxes as it seeks to expand its varied energy mix by the end of the decade, the Romanian energy minister Sebastian-Ioan Burduja told ICIS in an exclusive interview. The minister said his priority is the development of competitive markets, with the ministry expected to submit a final proposal for liberalization this month. “It will be a gradual, cautious liberalization which will ensure end consumers are protected while also guaranteeing market liquidity and competition,” he said. Romania, one of the EU’s growing economies and its largest gas producer, will grow even further in importance with its domestic gas production set to double once the Neptun Deep offshore gas output reaches markets in 2027. The renewable capacity target in Romania is to add 10GW, build large and small-scale nuclear generation, alongside the potential to develop 2 billion cubic meters of biomethane annually. However, despite its resources and strategic position, it has not been able to harness its full potential because of an unpredictable regulatory environment and a burdensome tax regime. Nevertheless, the minister whose mandate has now been renewed following recent parliamentary elections, is determined to address all challenges. MARKET AND TAX CHALLENGES The ministry will work closely with the regulator ANRE and the electricity exchange OPCOM to remove barriers to free trading, he said. Another instrument the ministry is keen to promote are contracts for difference (CfD) to offer long-term stability for investors. The CfD scheme in Romania has mobilized €3bn for solar and wind projects, with 1.5GW of capacity successfully tendered in 2024, the minister said. Another 3.5GW will be tendered in 2025. On taxation, the ministry of energy is working with the ministry of finance to streamline regulations affecting  the energy sector. He also stressed the importance of removing legal barriers that have been slowing access to electricity or gas networks and insisted on the need to build new capacity required to encourage the energy transition, as well as digitalize networks to bring more flexibility to markets. The ministry intends to support startups in the energy sector through dedicated financing schemes or public-private partnerships similar to the Unicorn Factory Lisboa, a project envisioned by Lisbon city council to expand the entrepreneurial ecosystem from startups to scaleups. REGIONAL ROLE Regionally, Romania intends to advance new projects or develop existing ones, that would enhance market integration and security of supply. “Our priority is to improve our interconnections with the Republic of Moldova. Projects include gas and electricity interconnections, storing gas in Romania and the completion of the 400kV Suceava-Balti overhead power transmission line,” he said. Romania’s partnership with Moldova and the region could be consolidated via the Vertical Gas Corridor, which could bring natural gas sourced primarily as regasified LNG in Greece and shipped in reverse to Bulgaria, and further north into Romania, Moldova and Ukraine. One of the biggest challenges in developing this corridor is the high transmission costs charged by Romania’s gas grid operator Transgaz. Companies active regionally say it costs €15.46/MWh/day to ship gas along the full route, with the Romanian transmission tariff alone covering a third of the full fee. “We work closely with ANRE and transmission and distribution system operators to analyze the actual tariff structure and means to optimize them,” Burduja told ICIS. “We’re also focusing on […] upgrading and digitalizing the infrastructure. These investments could lead to reducing operating expenses and implicitly lead to  tariff adjustments,” he said. Furthermore, the ministry is working on the establishment of a ‘green corridor’ connecting Azerbaijan to Hungary via Georgia, a subsea section of the Black Sea and Romania, he added. BLACK SEA GAS The most critical project for Romania and the region, however, is the increase in domestic gas production once output at the Neptun Deep offshore bloc comes onstream in 2027. The project, jointly developed by the Romanian incumbent Romgaz and Austrian-Romanian OMV Petrom, aims to bring up to 10bcm/year to the market, boosting Romania’s annual production to 20bcm. There were recent reports that OMV Petrom had auctioned off small volumes as part of the company’s strategy. However, the minister said the bulk of gas would be for internal use, as the country would be looking to  develop  petrochemical or pharmaceutical production. Nevertheless, he said surplus volumes could be considered for exports. Finally, he noted the importance of taking advantage of Romania’s significant agricultural potential and develop a national biomethane sector. Companies say the country could produce as much as 2bcm of biomethane annually. “The ministry of energy recognizes this opportunity and has initiated for the first time ever in Romania the development of a new financing instrument dedicated to advanced biofuels, including biomethane through a modernization fund,” he said, noting that at least 5% of the final energy consumption in the transport sector could come from biofuels by 2030.
ExxonMobil to invest in Indonesia CCS facilities, petrochemical complex
SINGAPORE (ICIS)–ExxonMobil has committed to invest in carbon capture and storage (CCS) facilities as well as a new petrochemical complex in Indonesia, the biggest economy in southeast Asia. A memorandum of understanding (MoU) was signed between Indonesia’s Coordinating Ministry for the Economy and ExxonMobil on the prospective projects, the ministry said on 22 January. The MoU aims to explore ExxonMobil’s “investment potential in the construction of a world-class petrochemical complex in Indonesia, with an estimated investment value of $10 billion”, it said. “ExxonMobil will build a project related to CCS,” Indonesia’s coordinating minister for economic affairs Airlangga Hartarto said in a post on social media platform X on 22 January, adding that the US oil and gas company will also build a petrochemical plant. “This MoU not only strengthens the national petrochemical sector but also brings Indonesia closer to its vision as a pioneer of green technology at the global level,” Hartarto said. ExxonMobil has yet to reply to ICIS queries on the projects at the time of writing. In November 2023, then Indonesian President Joko Widodo had said that ExxonMobil is planning to invest up to $15 billion in a petrochemical project and CCS facilities in Indonesia. Indonesia is heavily reliant on imports of petrochemicals, including polymers, amid limited domestic production. Its current sole integrated petrochemical complex located in Cilegon, Banten province, is operated by Chandra Asri Petrochemical ExxonMobil and Indonesia’s state-owned energy company Pertamina had announced plans last May to do preliminary works to develop and build a CCS hub in the Sunda-Asri basins in the Java Sea, in northern coast of Java Island. A preliminary study by the two companies indicates the basin has the potential to store up to 3 gigatonnes of carbon dioxide (CO2). The project is estimated to require a $2 billion investment. Thumbnail image: A transport ferry sailing toward the sea port in Merak, on Java Island, from Sumatra island, in Indonesia, on 17 July 2024. (Adriana Adie/NurPhoto/Shutterstock)
SHIPPING: Container vessel ops at US Port Houston to resume today
HOUSTON (ICIS)–Container vessel operations will begin at Port Houston at 19:00 local time on Wednesday, while all Port Houston facilities will begin normal operations on Thursday. Port Houston closed all facilities on Tuesday, and they will remain closed through Wednesday because of a winter storm that brought snow and icy conditions to the region. Container terminal truck gates closed Monday afternoon and vessel operations were suspended later that evening. At the Port of New Orleans in Louisiana, both Ports America and New Orleans Terminal will remain closed through Thursday. Ports America and New Orleans Terminal will run gate operations on Saturday, 25 January.
UPDATE: US freeze shuts numerous chem plants, major ports
HOUSTON (ICIS)–Winter storm Enzo, which caused a hard freeze along the US Gulf Coast, led to widespread shutdowns among chemical plants and refineries. Companies shut down at least five ethylene glycol (EG) units and at least eight crackers because of bad weather. Other plants, such as a propane dehydrogenation (PDH) unit, also shut down. Pre-emptive shutdowns and operational disruptions reported so far include: BASF idles Geismar, Louisiana, EO operations following winter weather BASF TotalEnergies cracker shuts down due to weather Dow’s Plaquemine, Louisiana, glycol ethers site down following winter weather Dow’s Taft, Louisiana, glycol ethers site down following winter weather Dow idles Taft, Louisiana, EO site following winter weather Dow’s Taft, Louisiana, ethanolamines site down following winter weather Enterprise’s PDH1 unit in Texas has unplanned shutdown Formosa shuts Louisiana PVC unit ahead of freeze GCGV Portland, Texas, EG site down ahead of freezing temperatures Indorama’s Clear Lake, Texas, EG site down for winter weather Indorama Lake Charles cracker shut due to weather Indorama shuts Port Neches, Texas, cracker ahead of winter storm Indorama’s Port Neches, Texas, ethanolamines unit down due to winter weather Indorama’s Port Neches, Texas, EG unit down ahead of winter weather Ingleside, Texas, cracker shut before winter storm LACC Lotte/Westlake Louisiana cracker and EG unit down ahead of winter weather Lyondell Channelview, Texas, crackers flaring on operations issues Lyondell La Porte, Texas, cracker shutting due to weather Shell’s Geismar, Louisiana, EO, EG site down following winter weather SHUTDOWNS AT REFINERIES AND BIOFUELSMotiva’s refinery in Port Arthur, Texas, experienced unexpected interruptions and shutdowns of several critical pieces of equipment, it said in a filing with the Texas Commission on Environmental Quality (TCEQ). The disruptions caused emissions at a catalytic reformer, a fluid catalytic cracking (FCC) unit and a delayed coker unit. Renewable Biofuels conducted a planned shutdown at its biodiesel plant in Port Neches, Texas, for freeze protection, according to a filing with the TCEQ. MIDSTREAM DISRUPTIONSIn some cases, midstream companies reported freeze offs and hydrates forming. If these happen on a wide enough scale, they could interrupt the supply of natural gas. Chemical plants and refineries burn natural gas to produce process heat, and power plants use it to produce electricity. PORTSPorts in Houston and New Orleans were closed through Wednesday because of cold weather. Container vessel operations will begin at Port Houston at 19:00 local time on Wednesday, while all Port Houston facilities will begin normal operations on Thursday. NO WIDESPREAD POWER OUTAGES Texas avoided the widespread power outages that had led to several plant shutdowns during winter storm Uri in 2021. FREEZING TEMPERATURES TO END BY FRIDAYTemperatures rose above freezing during Wednesday, and daily highs should continue to rise as the week progresses. Lows should be just below freezing on Wednesday and Thursday, according to meteorologists. (Thumbnail shows snow, which can precipitate in the type of cold weather that can disrupt plant operations. Image by Michael Ainsworth/AP/Shutterstock)
Brazil’s grain harvest expected at record 322 million tonnes, up 8%
SAO PAULO (ICIS)–Brazil’s fertilizers-intensive agricultural sector is expected to produce 322.3 million of grains, pulses, and oilseeds in the 2024-2025 harvest, up 8.2% year on year, according to the National Supply Company (Conab). Soybean production will continue dominating Brazil’s agro sector as exports are expected to keep rising, with a sharp recovery in output after a lower-than-expected harvest in the previous period. In 2024-2025, Brazil’s is expected to produce more than 166 million tonnes of soybean, up by more than 11% from the prior harvest. The country’s warm weather and its fertile land allows for two harvests a year in some grains, such as corn for which total production is expected at 119.6 million tonnes in 2024/2025, up 3.3%. Rice output is also expected to rise sharply in the current cycle, up 13.2% to 11.99 million. The 2023-2024 cycle was greatly disrupted by weather events such the historic floods in Rio Grande do Sul state in May 2024 as well as high temperatures and a severe drought in other parts of the country. In 2024, Brazil’s harvest stood at 292.7 million tonnes, down 7.2% from 2023. “After a year of crop failure, the current cycle tends to recover the average productivity of crops. For this season, an average yield of 3,509 kilograms per hectare (kg/ha) is expected, compared to 3,201 kg/ha recorded in 2023/2024,” said Conab. “The planting of the oilseed occurred in a concentrated manner, mainly from the end of October. As a result, the harvest should also occur, for the most part, from the end of January. The weather conditions, in the period analyzed, have been favorable for the crop so far.” WORLD BREADBASKETAfter dips in the previous cycle, Brazil’s grain exports, which have made it a key breadbasket for the world’s markets, are expected to regain much of the ground lost. In 2024-2025, soybean exports are expected at 105.47 million tonnes, up from the prior cycle’s 98.6 million tonnes. Among others, China is one of the key consumers of Brazilian soybean, which the country uses mostly to feed livestock. Corn exports are expected to fall as domestic consumption rises, said Conab, with shipments overseas expected at 34 million tonnes, down from 38.5 million tonnes – the result of a higher, 86.4 million tonnes consumption by Brazilian consumers, up from 83.57 million tonnes in the previous cycle. “An important addition to rice on Brazilians’ plates, total bean production is also expected to grow by 4.9%, estimated at 3.4 million tonnes, the second largest harvest in the last 15 years, behind only the 2013/2014 season,” said Conab. “The result reflects both the increase in area and productivity. In the first legume harvest alone, the harvest is expected to increase by 15.5%, estimated at just over 1 million tonnes. The harvest of this first cycle of the crop is underway, with 19.4% completed in the first week of January.”
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