Sulfolane, used as a solvent in aromatics extraction, has been added.

#sulfolane  #solvent  #aromaticsextraction  #extractivedistilation  #btx 

UOP's ED Sulfolane process for aromatics extraction has been added.

#aromaticsextraction  #aromaticscomplex  #uop  #sulfolane  #extractivedistillation  #edsulfolane  #uop  #toluene  #benzene  #xylene  #btx 

Thrilled to unveil the full ChemOne blueprint: our Singapore-HQ corporate structure, regional subsidiaries (including PT ChemOne Indonesia), and—center stage—the Pengerang Energy Complex Sdn. Bhd. (PEC) in Malaysia. The 150 kb/d condensate-to-aromatics PEC site in Johor integrates a condensate splitter, Naphtha hydrotreater/CCR reformer, Parex™ PX train, hydrogen recovery and clean fuels units. We’ve completed a mass-balanced digital model mapping every technology and material flow, giving partners and regulators 360° transparency from feedstock input to product slate. Exciting milestone for ChemOne’s next-gen petrochemicals journey!

#uop  #aromaticscomplex  #naphtha  #condensate  #hydrotreater  #cleanfuels  #pengerang  #malaysia  #chemone  #pec  #paraxylene  #px 

YPP group created. YPP entered into green hydrogen project.

Joint Venture between Sasol and Topsoe

#Sustainability #saf  #renewable  #refining 

Refined LPG, or sweetened LPG, definition has been updated.

#lpg  #refinedlpg  #sweetenedlpg  #commerciallpg 

Unsweetened LPG has been added.

#lpg  #rawlpg  #ngl  #unsweetenedlpg  #sourlpg 

Pengerang Energy Complex has been added.

#pengerang  #chemone  #malaysia  #pec  #condensatesplitter  #aromaticsplant  #uop  #parex  #pec  #pengerangenergycomplex 
 

#chemone  #ptchemone  #indonesia  

ChemOne Group (Holdings) from Singapore has been added.

#chemone  #singapore 

A description for Axens' MTBE/ETBE technology has been added.

#mtbe  #etbe  #axens  #fueladditives  #gasoline  #etherification 

#renewable  #hydrogen #windfarm  #netzero 

MTBE, ETBE, TAME and TAEE have been added as well as a description of the etherification reaction to produce them.  

#mtbe  #etbe  #tame  #taee  #oxygenates  #gasolineadditives  #gasoline  #etherification 

C5 raffinate stream has been added.

#c5  #c5stream  #c5raffinate  #c5raffinatestream  #pyrolysisgasoline  #pygas  #gasoline 

Tert-amyl ethyl ether (TAEE) has been added.

#taee  #fueladditive  #gasoline  #oxygenate 

Isoamylene has been added.

#isoamylenes  #amylene  #tame  #taee 

TAME, or tert-Amyl methyl ether has been added.

#tame  #gasoline  #fueladditive  #oxygenate 

Ethyl tert-butyl ether (ETBE) has been added.

#etbe  #gasoline  #fueladditive  #oxygenate 

The description of MTBE has been updated.

#mtbe  #fueladditive  #oxygenate  #etherefication  #isobutene  #methanol 

The descripption of the Solvay Anthraquinone Auto-Oxidation process has been developed. 

#solvay  #aoprocess  #anthraquinone  #autooxidation  #riedlplfeiderer  #hydrogenperoxide 

The description of the Riedl-Pfleiderer process for hydrogen peroxide production has been updated.

#riedlpfleiderer  #anthraquinone   #hydrogenperoxide 

A detailed description of the direct oxidation routes for the production of propylene oxide has been added.

#directoxidation  #propyleneoxidation  #propyleneoxide  #hppo 

The chlorohydrin technology type for propylene oxide production has been added.

#chlorohydrin  #hydrogenchloride  #chloralkali  #propyleneoxide 

KOCH Corporate structure related to PA6,6 value chain has been initialized.
View it here.

#koch  #invista  #pa66  #nylon66 

PTT Global Chemical corporate structure has been added.

#ptt  #globalchemical  #thailand 

The description of propylene oxide has been updated.

#propyleneoxide  #propylene  #oxidation  

Sumitomo Propylene Oxide Cumene (POC) method has been added

#propyleneoxide  #sumitomo  #cumene  #cumenehydroperoxide  #cumenemethod  #poc 

Axens Alkyfining selective butadiene hydrogenation technology has been added.

#butadiene  #butenes  #1butene  #C4cuts  #crudeC4  #hydrogenation  #isomerization  #alkyfining  #axens 

Axens Sulfrex technology has been added.

#acidgas  #acidgasremoval  #sweetening  #lpg  #mercaptans  #h2s  #hydrogensulfide  #axens  #sulfrex 

PTT Map Ta Phut Complex has been added.

#ptt  #pttglobalchemical  #thailand  #mataphut  #integratedrefinery  

Efuels (emethanol) producer created

#efuels  #emethanol 

Brashanthan, Sai 

A diagram of the Ludwigshafen's Verbund structure has been added.

#basf  #germany  #ludwigshafen  #verbund  #chemicals  

#megamethanol  #methanol  #airliquide  #methanex  #europe  #delfzijl 

#natgasoline  #beaumont  #methanol  #megamethanol  #airliquide  #lurgi  #methanex 

Beaumont Methanol facility has been added, as well as its ammonia and methanol plants and productions, and details about green methanol production.

#ammonia  #methanol  #beaumont  #methanex  #airliquide  #megamethanol  #topsoe #greenmethanol  #sustainability 

#methanex  #beaumont  #methanol  #ammonia  #usa 

#invista  #texas  #victoria  #adiponitrile  #adn  #adipicacid  #ada  #hexamethylenediamine  #hmd  #hmda 

Invista ADN technology has been added.

#pa66  #polyamide  #polyamide66  #adiponitrile  #butadiene  #hydrocyanation  #invista  #adn 

INVISTA Orange site in Texas has been added.

#invista  #texas  #orange  #hmd  #hmda  #hexamethylenediamine 

#invista  #pa66  #nylon66  #polyamide  #polymamide66  #invista  #lugoff 

The description of the Haber-Bosch process has been updated.

#haberbosch  #haberprocess  #haberboschprocess  #nitrogen  #hydrogenation  #ammonia 

Hydrocyanation of 1,3-Butadiene into Adiponitrile technology type has been added.

#adiponitrile  #butadiene  #hydrocyanation 

Source: Methanex website

VANCOUVER, British Columbia, June 27, 2025 (GLOBE NEWSWIRE) — Methanex Corporation (TSX:MX) (Nasdaq:MEOH) announced today that it has completed the previously announced acquisition of OCI Global’s (“OCI”) international methanol business.

As part of the transaction, first announced in September 2024, Methanex has acquired an interest in i) two world-scale methanol facilities in Beaumont, Texas, which have access to robust North American natural gas feedstock and one of which also produces ammonia, ii) a low-carbon methanol production and marketing business, and iii) a currently idled methanol facility in the Netherlands. The transaction consideration consists of approximately $1.2 billion of cash, excluding adjustments to working capital and cash acquired, the issuance of approximately 9.9 million common shares of Methanex and the assumption of approximately $450 million in debt and leases.

“We are excited to complete this important strategic acquisition and to welcome a talented team to Methanex,” said Rich Sumner, President and CEO of Methanex. “I want to thank the individuals that worked diligently to successfully close this acquisition. As we move forward, our focus is on ensuring a smooth integration, maintaining safe and stable operations, and delivering the strategic benefits of this acquisition.”

AH Salt, formally known as hexamethylenediammonium adipate, is the ionic compound formed by the reaction of adipic acid (a dicarboxylic acid) and hexamethylenediamine (a diamine) with the chemical formula C₆H₁₆N₂.C₆H₁₀O₄. This salt is the essential intermediate for the production of polyamide 6,6 (PA 6,6, or nylon 6,6), a high-performance engineering polymer widely used in automotive, electrical, textile, and industrial applications.

#ahsalt  #examethylenediammoniumadipate  #adipicacid  #hexamethylenediamine  #ada  #hdm  #hdma  #nylon66  #polyamide66 

Acid Rich Feed is a specialized form of nylon (polyamide) salt solution in which the salt is deliberately prepared with an excess of adipic acid (ADA) relative to hexamethylenediamine (HMD | HDMA). 

#hdma  #hdm  #hexamethylenediamine  #adipicacid  #pa66  #nylon66  #nylon  #ahsalt  #arf  #acidrichfeed 

The INVISTA Kingston site receives key intermediates such as adipic acid and hexamethylenediamine (HMD) for nylon salt synthesis. Nylon salt is polymerized to produce nylon 6,6 resin in advanced batch and continuous polymerization technologies. The resin is processed into fibers and technical yarns with state-of-the-art spinning and drawing lines for high-tenacity fibers for end-use in automotive airbags, industrial textiles, and specialty applications.

#invista  #canada  #kingston  #nylon66  #polyamide 

INVISTA Canada Company is the Canadian operating subsidiary of INVISTA, a global leader in the production of chemical intermediates, polymers, and fibers, and part of Koch Industries, Inc. The company is responsible for INVISTA’s manufacturing, research, and supply chain activities in Canada, with a primary focus on nylon 6,6 (PA 6,6) and its key intermediates.

#invista  #canada  #kochindustries  #nylon  #nylon66  #polyamide66  #maitland 

The Invista Camden manufacturing facility in Camden, South Carolina, has been added.

#unitedstates  #southcarolina  #camden  #lugoff  #polyamide  #nylon  #nylon66  #nylonpolymers  #operations 

INV Nylon Polymers Americas, LLC is a U.S.-based limited liability company operating as a key manufacturing and operational entity within the INVISTA group, itself a subsidiary of Koch Industries, Inc. The company specializes in the production of nylon 6,6 polymer and related products for engineering plastics, automotive, electronics, and industrial applications across North America.

#invista  #nylon  #americas  #unitedstates  #nylon  #nylon66  #polyamide 

INVISTA B.V. is a Dutch private limited company (Besloten Vennootschap, B.V.) registered in the Netherlands, forming a key part of the INVISTA and Koch Industries global group. The company functions primarily as a holding or intermediate entity within the group’s European structure, often serving as the immediate parent for various INVISTA operating companies, including INVISTA (Nederland) B.V.

#invista  #invistabv  #kochindustries  #netherland  #polyamide  #nylon  

INVISTA Nylon Chemicals (China) Co. is strategically located at the Shanghai Chemical Industry Park (SCIP) in Shanghai's Jinshan district.

#invista  #china  #operations  #nylon  #polyamide 

INVISTA (China) Investment Co., Ltd. holds 100 percent of the equity in INVISTA Nylon Chemicals (China) Co., Ltd.

#invista  #china  #nylon 

 

#invista  #kochindustries  #fibers  #pollyamide  #nylon 

Kosa UK Limited serves as a Person with Significant Control (PSC) over several INVISTA group subsidiaries in the UK.

#invista  #kosa  #nylon  #unitedkingdom  #england 

#koch  #kochgroup  #kochindustries  #kosa  #luxembourg  #invista  #nylon 

The Invista Rozenburg manufacturing site has been created.

#invista  #rozenburg  #netherland  #pa66  #nylon66 

INVISTA (Netherland) BV serves as the Netherlands-based hub for INVISTA’s nylon, polymer intermediates, and chemical businesses in Europe. 

#invista  #netherland  #rozenburg  #pa66  #nylon66 

The description of Koch Industries has been updated.

#koch  #kochindustries  #kochgroup 

INVISTA PA 6,6 manufacturing technology has been added.

#pa66  #polyamide  #polyamide66  #nylon  #nylon66  #polycondensation  #adipicacid  #hexamethylenediamine  #hda  #hmd  #hmda 

The process for manufacturing polyamide 6,6 ghas been added.

#polyamide  #pa66  #polyamide66  #polycondensation  #adipicacid  #ada  #hexamethylenediamine  #hdm  #hdma  #ahsalt 

#radici  #radicigroup  #polyamide  #pa6  #pa66  #syntheticfibers  #engineeringplastics 

DOMO Chemicals has been added.

#domo  #domochemicals  #technyl  #pa6  #pa66  #polyamide  #solvay 

#invista  #nylon66  #adiponitrile  #adn  #hexamthylenediamine  #hdm  #hdma  #nylonfibers  #butachimie  #cordura  #stainmaster  #lycra  #polyamide 

#Hexamethylenediamine  #hdm  #hdma 

#cumene  #cumenehydroperoxide  #phenolacetone  #hockprocess 

#butachime  #hdma  #adn  #pa66  #polyamide  #nylon  #basf  #invista 

#invista  #nylon  #nylon66  #polyamide  #hdma 

Alsachimie legal entity and manufacturing facility have been added. 

#basf  #alsachimie  #france  #polyamide  #nylon  #hmda  #adipicacid 

#phenol  #acetone  #cumene  #benzene  #alkylation  #badger 

The process of benzene akylation has been updated.

#lab  #ethylbenzene  #cumene  #alkylation  #ethylene  #propylene  #zeolite  #ionicliquid 

Aerial view of Ineos Phenol facility in Gladbeck, Germany

On June 17, 2025, INEOS has announced the permanent closure of its Gladbeck phenol and acetone facility in Germany, citing uncompetitive European energy costs, punitive CO₂ tax policies, and a collapse in local demand as key drivers behind the decision. The Gladbeck plant, operational since 1954 and once the world’s second-largest phenol production site and the largest single-train phenol plant globally, with a capacity of over 650,000 tonnes per year, will cease operations after a strategic review determined the site could no longer compete with cheaper imports and amid global oversupply. The closure will directly impact 279 jobs and affect over 1,500 indirect positions.

Structural Pressures and Market Context

Europe’s chemical industry is facing a severe structural crisis. Surging energy and carbon costs have eroded competitiveness, while sluggish industrial activity and persistent overcapacity have led to weak demand for aromatics and their derivatives. Aromatics have been particularly hard hit: in 2023 and 2024, they accounted for 41% of total chemical plant closures in Europe, the European Chemical Industry Council (Cefic) reports. Margins for key products such as styrene and benzene (a phenol precursor) have been negative since mid-2022, and the European polyester (PET) industry is also under existential threat from high costs and cheaper imports, despite EU anti-dumping measures.

INEOS specifically cited the exit of several downstream consumers of phenol and acetone in Europe, making local demand insufficient to justify continued operation or investment at Gladbeck. The company’s chairman, Jim Ratcliffe, warned that unless European regulators address the cost and policy environment, further deindustrialization is inevitable.

Strategic Shifts: From Closures to Bold Investment Decisions

The Gladbeck shutdown follows other high-profile INEOS moves in Europe. In April 2025, Petroineos—a joint venture between INEOS and PetroChina—halted crude processing at Scotland’s Grangemouth refinery, ending a century of refining at the site. The facility is being converted into an import terminal for finished fuels, a move driven by sustained financial losses and inability to compete with larger, more modern refineries in Asia and the Middle East.

Despite these closures, INEOS is not retreating entirely from the European chemicals sector. The company is pressing ahead with Project ONE, a €4 billion investment in a state-of-the-art ethane cracker in Antwerp, Belgium. Project ONE is billed as the most energy-efficient facility of its kind in Europe and is expected to be operational by 2026. This investment is seen as a bet on the future of high-value, lower-emission petrochemical production in Europe, even as legacy assets are shuttered.

Risk and Renewal in European Chemicals

INEOS’s strategy is increasingly bifurcated: the company is closing older, energy-intensive, and less competitive assets in Western Europe, particularly those exposed to high energy and carbon compliance costs, while simultaneously investing in new, world-scale, energy-efficient plants that can compete globally on cost and sustainability grounds. The closure of Gladbeck reflects broader structural shifts in the European chemicals market, where high costs, regulatory pressures, and weak demand are forcing rationalization and consolidation. INEOS’s willingness to invest in new capacity (Project ONE) while exiting legacy operations signals a long-term commitment to Europe—but only on terms that ensure global competitiveness and regulatory alignment.

The net effect is a European chemical industry in transition: legacy capacity is being eliminated, supply chains are shifting toward Asia, and only the most efficient, modern, and strategically located assets are likely to survive. For INEOS, the path forward is clear—exit where Europe is uncompetitive, invest where innovation and efficiency can deliver a sustainable edge.

#ineos  #phenol  #gladbeck  #facilityclosure  #grangemouth  #projectone  #refining  #aromatics 

 

Attock Refinery Limited Embarks on $600 Million Upgrade to Modernize Operations and Enhance Environmental Compliance

Attock Refinery Limited (ARL), Pakistan’s oldest and one of its most strategically important oil refineries, has taken a major step toward modernization with the signing of a $600 million agreement with Italian engineering firm Studi Tecnologie Progetti S.p.A. (STP). The deal, finalized in June 2025, covers Front End Engineering Design (FEED) and Project Management Consultancy for ARL’s ambitious upgradation project, which is among the largest investments in Pakistan’s refining sector to date.

The project aims to significantly enhance ARL’s product quality and environmental compliance. Central to the upgrade is the integration of a Continuous Catalyst Regeneration (CCR) unit and a revamp of the Diesel Hydro Desulfurization Unit, based on advanced FEED studies conducted with UOP/Honeywell of the United States. These improvements will enable ARL to produce fuels that meet modern international standards, reduce emissions, and support Pakistan’s transition to cleaner energy.

This initiative aligns with the government’s broader $6 billion refinery upgradation policy, which seeks to encourage investment, improve fuel quality, and reduce reliance on imported petroleum products. Recent government actions to resolve longstanding taxation and regulatory issues have helped unlock these investments, providing a more stable environment for refinery modernization across the country.


 Attock Refinery Limited 5-year stock market price (PSE: ATRL)

ARL’s upgrade comes at a time when the company, like other Pakistani refineries, faces challenges from fluctuating crude supplies, evolving environmental standards, and the need for greater operational efficiency. The partnership with STP is expected to accelerate ARL’s shift toward value-added, environmentally friendly fuel production, reinforcing its role as a key supplier to both civilian and defense sectors.

With this investment, ARL is positioning itself as a leader in Pakistan’s energy transition, demonstrating resilience and adaptability amid a changing regulatory and market landscape. The upgrade not only secures ARL’s competitiveness but also supports national energy security and economic growth by ensuring a reliable supply of high-quality, compliant fuels.

#attock  #atr  #atrl  #refinery  #refineryupgrade 

 Lindsey Refinery was placed into insolvency | Photo: Mike Seaman, shutterstock.com

30^th June 2025

Europe’s Industrial Backbone Shattered: Lindsey Refinery Collapse Signals Petrochemical Exodus

A wave of closures is decimating the landscape of Europe’s refining and petrochemical industry. The collapse of the UK’s Lindsey oil refinery—one of the country’s last major refining assets—has thrown 420 jobs into immediate jeopardy and sent shockwaves through the sector. This dramatic shutdown is only the latest in a series of high-profile exits that underscore the existential crisis facing European refining. Just weeks prior, Scotland’s Grangemouth refinery—after a century of operation—ceased crude processing, transitioning to an import terminal and marking the end of oil refining in the country. Meanwhile, SABIC’s decision to shutter its Olefins 6 steam cracker at Wilton, Teesside, after 46 years, has sent further tremors through the sector, with hundreds of jobs in jeopardy.

No Profits, No Future: Lindsey Refinery’s Struggles Under Prax Ownership

The Lindsey Oil Refinery’s descent into insolvency starkly illustrates the vulnerability of small-scale refineries in today’s fiercely competitive market. With a capacity of 113,000 barrels per day, Lindsey is one of the UK’s smallest remaining refineries, and it has struggled to compete against the economies of scale enjoyed by much larger, more modern facilities elsewhere. Persistent financial losses—totaling around £75 million since Prax acquired the site in 2021—ultimately forced the refinery’s owner to seek administration, putting 420 jobs at risk and threatening to deepen the UK’s reliance on imported fuels. The government, left with little time to intervene, has called for an immediate inquiry into the circumstances behind the collapse, underscoring the systemic challenges faced by smaller refineries in an era of global oversupply and razor-thin margins.

The Rationalization Imperative

These closures are not isolated incidents but part of a broader rationalization of Europe’s olefins and refining capacity. The continent’s steam crackers—once the backbone of its chemical industry—are under siege from a perfect storm: high energy and feedstock costs, weak demand, and a global supply glut exacerbated by massive capacity expansions in China. Naphtha, the main feedstock for European crackers, is costly and less efficient compared to ethane, which dominates in the US and Middle East. Naphtha crackers typically achieve only about 50% olefin yield (ethylene, propylene and butenes), while ethane crackers can reach 80% of ethylene alone—a stark difference in a margin-driven business.

 Feedstock-dependent Cracking Yields (in weight-%)

The numbers tell the story. Since April 2024, six European crackers have been closed or marked for closure, including ExxonMobil’s Notre Dame de Gravenchon (France), SABIC’s Geleen (Netherlands), and now Wilton (UK). TotalEnergies is set to shut its oldest Antwerp cracker by 2027, citing a “significant surplus of ethylene expected in Europe”. The cumulative ethylene capacity lost from these moves reaches 4.35 million metric tonnes per year over the 2020 to 2027 time period, representing 17.2% of the 25.3 million metric tonnes installed ethylene capacity according to the Petrochemicals Europe database. Meanwhile, there is only one single project scheduled for start-up in 2026, INEO's Project ONE ethane cracker in Antwerp, Belgium, which will add 2 million tonnes of olefins (ethylene and propylene) annually.

Competitive Pressures and Strategic Failures

Europe’s chemical industry is caught in a vice. On one side, it faces relentless competition from regions with lower feedstock and energy costs. On the other, it suffers from stagnant demand at home, with key downstream sectors like automotive in decline and regulatory changes further eroding traditional markets for naphtha cracker byproducts. The result: margins for naphtha crackers have turned weak or negative, with spreads hovering around $200/ton—a level insufficient to justify reinvestment.

 Historical and forward European steam cracker margins (US $/metric tonne) | Sparta, 29 August 2024 

While Asian and Middle Eastern players have invested in feedstock flexibility and integration—the former converting naphtha crackers to ethane, the latter building up mega scale ethane cracking capacities—Europe has lagged. The region’s fragmented, aging asset base is often poorly integrated, with many sites requiring major capital just to meet new environmental standards. Strategic reviews and divestments are accelerating, with companies like SABIC openly contemplating a full or partial exit from the European market.

Policy Response and the Road Ahead

The European Commission acknowledges the urgency. High-level dialogues are underway to address the competitiveness crisis, with a focus on modernization, simplification, and financing rather than new regulation. Yet, the challenge is formidable. Many of Europe’s steam crackers are over 40 years old—environmentally inefficient and under-performing by global standards. Without bold action, the risk is not just further closures, but the hollowing out of the region’s industrial base and a growing reliance on imports for both fuels and chemicals.

Portfolio Planning PLUS Perspective

For market participants, the implications are clear:

• Asset rationalization will continue: More closures are likely as companies seek to stem losses and reallocate capital.
• Integration and feedstock flexibility are critical: Survivors will be those who can pivot to lower-cost, more sustainable operations—mirroring the successes seen in Asia and the Middle East.
• Import dependence will rise: Europe is expected to import 15–20% of its ethylene needs in the coming years, reversing decades of self-sufficiency.
• Workforce and community impacts are severe: Each closure brings not just economic loss, but social and political fallout, as seen in Grangemouth and Teesside.

Outlook

The European chemical industry stands at a crossroads. Without decisive investment, integration, and policy support, the current wave of closures may prove to be only the beginning of a deeper transformation—one that will redefine Europe’s place in the global petrochemical value chain for years to come.

#prax  #sabic  #totalenergies  #exxonmobil  #lyondellbasell  #ineos  #repsol  #versalis  #refining  #steamcracker  #feedstock 

Air Products Lu’An (Changzhi) gasification site has been added.

#airproducts  #coal  #coalgasification  #syngas  #changhzi  #china 

#airproducts  #luan  #changhzi  #china  #gasification  #coal 

#shell  #netherlands  #chemicals  #pernis  #rotterdam 

#gasification  #syngas  #airproducts  #shell  #sgp  #syngascooled  #bottomquench  #dryfeed  

CECO HT-L Coal Gasification Technology has been added.

#ceco  #aerospace  #chemicalengineering  "htlgasifier #coalgasification  #coaltochemicals  #coaltoolefins 

Aerospace Long March Chemical Engineering Co., Ltd. (CECO) has been added.

#ceco  #aerospace  #longmarch  #chemicalengineering  #china  #gasifier  #gasification  #htl  

#casc  #china  #aerospace  #gasification 

#ningxia  #baofeng  #china  #baofengenergy  #coal  #greenhydrogen  #gasification  #coaltoolefins  #sustainability 

#obm  #cws  #coal  #coalwaterslurry  #gasification  #ecust  #coaltochemicals  #coaltoolefins  #syngas 

#china  #university  #scienceandtechnology  #ecust  #gasification  #coalgasification 

#coalwaterslurry  #coalwaterslurryfuel  #cws  #gasification  #powerplant 

The description of the gasification process has been updated.

#coke  #coal  #petcoke  #gasification  #hydrogen  #syngas  #coaltochemicals 

#tailgas  #clautailgas  #clausprocess  #sulfurrecovery  #tgtu 

#rnes  #petrobras  #brazil  #snox 

Petrobras entity description on Portfolio Planning PLUS

Petróleo Brasileiro S.A. (Petrobras) has signed contracts worth $892 million with São Paulo-based Consag Engenharia to complete construction of Train 2 at its Abreu e Lima Refinery (RNEST) in Pernambuco, marking a significant milestone in Brazil's quest for energy self-sufficiency.

Strategic Investment Framework

The RNEST expansion is part of Petrobras' ambitious 2025-2029 business plan, which allocates $111 billion in total investments, with $19.6 billion specifically dedicated to the Refining, Transportation, Marketing, Petrochemicals and Fertilizers (RTM) segment—a 17% increase from the previous plan. This strategic focus aims to increase Petrobras' total distillation capacity from 1.81 million barrels per day (bpd) to 2.1 million bpd of crude oil.


Abreu eLima refinery | Photo: Brazil de Fato, June 20, 2022.

RNEST Expansion Details

The three awarded contracts cover critical processing units for Train 2:

• Atmospheric Distillation Unit (UDA): 130,000 bpd capacity
• Delayed Coking Unit (UCR): 75,000 bpd processing capability
• Diesel Hydrotreating Unit (UHDT-D): 82,000 bpd capacity for 100% S-10 diesel production

Upon completion in 2029, RNEST's total capacity will double from 130,000 bpd to 260,000 bpd, making it Petrobras' second-largest refinery. The expansion will generate approximately 30,000 direct and indirect jobs during construction and operation.


 Delayed coker at Abreu e Lima refinery | Credit: Petrobras

Technological Leadership

RNEST already demonstrates Petrobras' commitment to advanced refining technology. In December 2024, the refinery commissioned the Americas' first SNOX emissions abatement unit, supplied by Topsoe AS, which converts sulfur oxides and nitrogen oxides into marketable sulfuric acid while improving energy efficiency. This positions RNEST as a benchmark for environmental technology in refining operations.


SNOX technology description on Portfolio Planning PLUS

The refinery currently achieves the highest crude oil-to-diesel conversion rate in Brazil at 70%, and the expansion will enable 100% S-10 diesel production, meeting Brazil's stricter environmental standards.

Strategic Impact

Energy Security Enhancement: The expansion addresses Brazil's growing fuel demand, particularly in the north and northeast regions that traditionally rely on imports. Petrobras plans to increase S-10 diesel production capacity by 290,000 bpd across its refining system.

Economic Rationale: CEO Magda Chambriard emphasized that "RNEST is strategic for Brazil, as it is Petrobras' hub in the North and Northeast regions," highlighting the project's role in national energy security.

Financial Performance Context

Petrobras' strong financial position supports these investments, with the company reporting a 48.6% year-on-year increase in net profit to 35.2 billion reais in Q1 2025, and adjusted EBITDA of 61 billion reais.

Broader Refining Portfolio

Beyond RNEST, Petrobras is implementing refining capacity expansions across multiple facilities, including new units at REPLAN and GASLUB, alongside modernization projects at REDUC, REVAP, and REGAP. The company is also advancing its BioRefining program to produce low-carbon fuels, including R5 diesel and sustainable aviation fuel (SAF).


Petrobras Refineries | Market Intelligence by Portfolio Planning PLUS

Looking Forward: With RNEST's expansion and the comprehensive refining investment program, Petrobras is positioning itself to maintain its dominance in Brazil's energy sector while supporting the country's transition toward cleaner fuels and greater energy independence. The systematic modeling of these developments on platforms like ppPLUS will be crucial for tracking the progress and impact of these strategic investments.

#petrobras  #refinery  #refining  #rnest  #snox  #capacityexpansion 

Wilton International, Teeside, Aerial View

SABIC's Teesside Closure: A Strategic Retreat Amid Europe's Industrial Decline

Saudi Basic Industries Corporation (SABIC) has confirmed the permanent shutdown of its Olefins 6 ethylene cracker at Wilton International, Teesside, ending 46 years of operations and placing approximately 300 jobs at risk. The decision, communicated to employees on June 25, 2025, follows a months-long pause on a £200 million conversion project to shift the plant to gas feedstocks. This move underscores a calculated corporate realignment driven by structural economic pressures rather than isolated financial struggles.

Vetted Motives: Beyond Profitability

• Energy Cost Crisis — SABIC’s closure directly results from Europe’s unsustainable energy economics. UK natural gas prices remain 3–5 times higher than U.S. and Middle Eastern benchmarks, eroding the plant’s competitiveness. Internal sources cited Britain’s "crippling energy prices" as a primary factor, compounded by insufficient government support for energy-intensive industries. The paused conversion—intended to modernize operations—became economically unviable amid these conditions.
• Policy and Regulatory Pressures — The UK’s carbon taxation regime added approximately £50 per ton of CO₂ emissions, disproportionately impacting cracker operations. Tees Valley Mayor Ben Houchen condemned the closure as "another symptom of national policy failure," noting the chemicals sector’s absence from the government’s newly unveiled Industrial Strategy. This regulatory burden, coupled with perceived governmental indifference, accelerated SABIC’s exit calculus.
• Global Market Realignment — SABIC’s retreat reflects a deliberate pivot away from high-cost regions. CEO Abdulrahman al-Fageeh explicitly linked the Teesside closure to a broader "rationalization of [SABIC’s] footprint in Europe," including options for "partial or full exit". The company recently shuttered its Geleen cracker in the Netherlands and is marketing €3 billion in European assets through Lazard and Goldman Sachs. These moves prioritize investment in integrated hubs in Saudi Arabia, Asia, and the U.S., where feedstock and energy advantages bolster margins.

Profitability Paradox and Strategic Reality

While Unite union criticized SABIC’s "disgraceful" closure amid £300 million in 2024 net profits, regional financial data reveals a stark contrast:

• SABIC’s European operations bled SAR 1.89 billion ($504 million) in Q4 2024 alone.
• Profits derived overwhelmingly from Middle Eastern and Asian assets, not European facilities.
• The Teesside plant—idle since 2020—represented stranded capital in a region where ethylene overcapacity and import competition suppressed margins.

Industry Implications

The shutdown intensifies Europe’s ethylene deficit, forcing derivative units like SABIC’s adjacent System 18 LDPE plant to rely on imported feedstocks. It also signals sector-wide vulnerability: BASF, Dow, and LyondellBasell face similar portfolio reviews amid what SABIC termed "sustained pressure on capacity utilization rates". Without intervention on energy costs and carbon leakage protections, Europe risks losing 20–30% of its ethylene capacity by 2030.

Stakeholder Responses

• Unite Union: Demanded government intervention, noting limited alternative employment for skilled workers.
• Tees Valley Mayor Ben Houchen: Urged "urgent intervention" to protect industrial jobs and supply chains.
• UK Government: Faced criticism for excluding chemicals from its Industrial Strategy days before the closure.

Conclusion

SABIC’s Teesside exit is not an anomaly but a bellwether for European heavy industry. The shuttered cracker epitomizes a structural shift: capital is fleeing high-cost, policy-constrained regions for competitive hubs. As SABIC’s al-Fageeh asserted, this closure aligns with "strategic portfolio optimization"—a euphemism for Europe’s industrial decline. Without coherent energy and industrial policies, such retreats will accelerate, eroding the continent’s manufacturing base irreversibly.

#sabic #wilton  #plantclosure  #teeside  #europeanexit 

#petrobas #refining  #refinery  #brazil  #nationaloilcompany  #noc 

The description and project status of the UPM Biomedical Biorefinery in Leuna have been updated.

#biorefining  #leuna  #germany  #upmbiochemicals  #biorefinery  #upm 

The description of UPM Biochemical GmbH, operating as UPM Biochemical, has been updated.

#upm  #upmbiochemical  #sustainability  #biosourcedfeedstock 

Dortmund/Milan | thyssenkrupp nucera | June 24, 2025 — Chemical Marketing and Distribution Company (CMDC), a subsidiary of Basic Chemical Industries (BCI) Group, has awarded a key contract to thyssenkrupp nucera for a major expansion of its chlor-alkali plant in Jubail Industrial City. The contract, valued at approximately EUR 15 million, will see thyssenkrupp nucera supply advanced membrane technology, deliver essential equipment and spare parts, and provide comprehensive engineering services. The project is expected to boost the plant’s production capacity by 40%, significantly increasing output of caustic soda, sodium hypochlorite, hydrochloric acid, and liquid chlorine. Completion is scheduled within 19 months.

This expansion reflects BCI Group’s ongoing commitment to supporting Saudi Arabia’s industrial growth and Vision 2030 goals. Founded in 1973 and headquartered in Dammam, BCI has grown to become the largest privately owned chemical company in the Kingdom, with a strong presence across the GCC region. The group operates through several subsidiaries, with core activities spanning chlor-alkali manufacturing, water treatment solutions, industrial adhesives, polyurethane systems, and specialty chemicals. BCI is recognized as one of the earliest and most innovative chlor-alkali producers in the region, introducing state-of-the-art membrane technology as early as 1983 to ensure high-quality, environmentally responsible production.

BCI’s strategic location in Saudi Arabia’s industrial heartland enables it to efficiently serve major clients in the oil and gas, water treatment, and industrial sectors, both domestically and in neighboring Gulf countries. The Jubail plant’s expanded capacity will further enhance BCI’s ability to supply critical chemical products to local industries and export markets in Bahrain, Kuwait, the UAE, and Oman.

The partnership between CMDC and thyssenkrupp nucera builds on a long-standing relationship, leveraging cutting-edge technology to maintain high standards of safety, efficiency, and environmental performance. This investment underscores BCI Group’s role as a key enabler of Saudi Arabia’s industrial diversification and its ongoing leadership in the regional chemical sector.

#thyssenkrupp  #nucera  #chloralkali  #membranetechnology  #electrolysis  #chlorine  #causticsoda 

Image: Teesside - North Tees Site

BBC:

The Saudi Arabian firm, one of the world's largest petrochemical manufacturers, will shut its Olefins 6 cracker plant in Wilton, Teesside, after 46 years of it operating.

The exact number of job losses is not yet known but the firm currently employs 330 people at the site.

Sabic said its decision was the result of a "thorough analysis aimed at optimising competitiveness", but Unite said the news was a "disgrace" from a profitable company.

#sustainability #aviationfuels  #sustainableaviationfuels  #saf  #biodiesel  #renewablediesel  #bionaphtha 

Polypropylene proprietary technology from ExxonMobil has been added.

#polypropylene  #exxonmobil  #polymerization  #technology 

Polyethylene Polymerization Technology (GPPT) is ExxonMobil's rebranding of Unipol PE technology from Univation.

#gppt  #exxonmobil  #univation  #unipolpe  #polyethylene  #gasphase  #polymerization  

#kmg #rompetrol  #petromidia  #refinery  #romania 

#kmg #rompetrol  #kmgrompetrol  #romania 

A note has been added to KBR Score Steam Cracking technology description accounting for the technology to be jointly owned by KBR and ExxonMobil.

#score  #kbr  #steamcracking  #exxonmobil  #technologyownership 

Bukom Refinery | Business Today, May 2024

Aster Chemicals and Energy has swiftly become a transformative force in Singapore’s energy and chemicals sector, capitalizing on a historic wave of Western divestments from the city-state. The company’s landmark acquisition of Shell’s integrated refining and petrochemical assets on Bukom and Jurong Islands in 2025—one of the largest such transactions in the region’s history—signals a decisive shift in Singapore’s industrial landscape.

Strategic Expansion Amid Western Disengagement

Aster’s rise is directly linked to the broader strategic retreat of Western energy and chemical majors from Singapore, driven primarily by economic imperatives. Shell’s decision to sell its entire Energy and Chemicals Park—including the 237,000-barrel-per-day Bukom refinery and 1.1 million tonne-per-year naphtha cracker—was largely the result of persistent negative margins, regional oversupply, and the need to reallocate capital to more profitable ventures. Similarly, Chevron Phillips Chemical (CPChem) and its partners exited their Singapore HDPE joint venture (CPSC), selling the 400,000-tonne-per-year plant to Aster in 2025 as part of a broader portfolio optimization strategy. These divestments reflect a wider trend of Western companies withdrawing from mature Asian assets due to challenging market conditions, competitive pressures, and a focus on financial performance.

Building a Regional Powerhouse

Aster, backed by Indonesia’s Chandra Asri (80%) and global commodities giant Glencore (20%), has rapidly consolidated these assets into the Aster Energy and Chemicals Park. The company further expanded its portfolio by acquiring the remaining 50% stake in the Bukom Condensate Splitter Unit from Petrochemical Corporation of Singapore (Private) Limited (PCS), giving it full control over a key feedstock processing facility and boosting its Singapore refining capacity to over 300,000 barrels per day.

This integrated platform, spanning refining, petrochemicals, and advanced polymer production, positions Aster as a new regional leader—able to optimize supply chains, reduce reliance on imports, and support Southeast Asia’s growing demand for fuels and chemicals. The company’s strategy is also expected to deliver economic benefits to Indonesia through improved supply security and repatriation of profits.

A New Chapter for Singapore’s Industry

Aster’s bold moves underscore a pivotal moment for Singapore’s energy and chemicals hub. As Western majors pivot away from local manufacturing, Aster is leveraging these strategic exits to build a vertically integrated, regionally focused powerhouse. The company’s leadership has emphasized its commitment to operational excellence, workforce continuity, and innovation, ensuring Singapore remains a critical node in the global energy and chemicals value chain—even as the ownership and strategic direction shift decisively toward Asian and emerging market players.

#singapore  #spc  #asterchemicals  #shell  #chevronphillips  #cpchem  #exxonmobil  #jurong  #bukom 

#exxonmobil #exxonmobilasiapacific  #singapore  #refining  #petrochemicals  #lubricants 

#complex1 #complex2  #essential  #petrochemicals  #pcs  #jurong  #singapore  

#aster #shell  #bukom  #singapore  #condensate  #splitter 

#aster #singapore  #petrochemicals  #shell  #jurong 

#aster #singapore  #refinery  #shell  #bukom 

Ownership of CPSC has been changed to Aster.

#chevronphillips  #cpsc  #singapore  #hdpe  #aster 

#methyldiethanolamine #mdea 

#diisopropanolamine #dipa 

#dga #diglycolamine 

 SRC refinery aerial view | Credit: SRC Facebook page, 23rd Dec 2022

Chevron's move to divest its 50% stake in the Singapore Refining Company (SRC) signals a pivotal strategic recalibration, driven by evolving pressures in Asia's refining landscape. This decision, confirmed in a June 19, 2025 report from Reuters, aligns with a broader industry trend where Western energy giants are streamlining portfolios amid challenging regional economics. The SRC refinery—a 290,000 bpd joint venture with PetroChina—confronts intensifying structural headwinds, including feedstock cost volatility, regional oversupply, and competition from China's integrated refining-petrochemical complexes. These factors, coupled with shrinking margins across Asian refineries, render Chevron's exit both a targeted portfolio optimization and a response to systemic market shifts.

SRC's operational context underscores systemic headwinds. 

SRC’s operational context underscores the depth of structural challenges now facing independent refiners in Asia. While the Jurong Island-based SRC refinery is equipped with advanced units such as residue catalytic crackers and hydrocrackers, it must contend with the formidable scale and integration of China’s new mega-refineries. The economics of feedstock procurement have become increasingly unfavorable: Singapore is wholly reliant on imported crude, while Chinese refiners have gained a significant cost advantage by securing discounted Russian oil in the wake of shifting global trade flows. At the same time, China’s aggressive expansion in petrochemical capacity—evidenced by a 25% surge in ethylene output since 2023—has saturated regional markets with olefins, driving down margins for less-integrated players like SRC. These pressures mirror the earlier exit of CPChem—a Chevron group's subsidiary—from its Singapore HDPE joint venture, sold to Aster in 2024 amid similar margin erosion.

Market intelligence signals deeper regional strains. 

Recent ppPLUS analyses (Communications #3754, #3812, #3854, , #3879, #3881 and #3885, ) highlight Asia's refining overcapacity, where utilization rates remain below 75% despite regional demand growth. China's export-oriented model exacerbates this; its chemical exports surged 18% year-on-year in Q1 2025, undercutting Singapore-based producers. Meanwhile, SRC's niche—producing ultra-low-sulfur diesel and high-octane gasoline—faces competition from China's integrated refining-chemical complexes, which achieve cost synergies unavailable to smaller players. Chevron's retreat thus exemplifies a strategic pivot away from assets vulnerable to state-subsidized competition.


 SRC Refinery Assets | Market Intelligence by ppPLUS

Potential buyers face complex calculus.

PetroChina, as JV partner, holds first-right options but may resist full ownership given SRC's exposure to Chinese oversupply. Private equity firms could pursue carve-outs of SRC's infrastructure (e.g., cogeneration plants or VLCC-capable berths), though regulatory hurdles loom. Alternatively, regional players like Thailand's PTTEP may leverage SRC for feedstock diversification, albeit amid persistent margin uncertainties. The divestment process will test appetite for assets requiring capital-intensive decarbonization upgrades to remain competitive beyond 2030.

This move underscores a broader industry inflection point.

As Chevron joins ExxonMobil and Shell in scaling back Asian downstream exposure, the region's refining model increasingly favors integrated national champions over international operators. SRC's fate will signal whether niche capabilities can offset structural disadvantages against China's cost-advantaged giants.

#chevron  #chevronphillips  #exxonmobil  #shell  #src  #singapore  #refinery  #refining  #petrochina  #pttep  #china  #thailand 

#olefins #alphaolefins  #propene  #butenes  #hexenes  #linearalphaolefins  #dimerization  #oligomerization 

Uruguayan dairy farm projected as feedstock provider for SAF project.

#SAF 

From website: 

Located in Durazno, Uruguay, NovaSAF 1 will produce over 350,000 gallons of ASTM Certified SAF annually, marking a breakthrough in cost-effective, scalable clean fuel. The project is backed by long-term feedstock and site agreements with Estancias del Lago (EDL), one of Uruguay's largest dairy and agri-energy operations. Permitting and equipment sourcing is ongoing alongside front-end engineering work led by Kent, a world leader in SAF project development and execution.

Worley, the company, has been added.

#worley  #australia  #engineering 

The description of Technip Energies has been updated.

#technip  #technipenergies  #stoneandwebster  #shwgroup  #rfcc  #fcc  #ethyleneplant  #steamcracking 

The description of the reactive distillation method for producing MTBE has been developed.

#mtbe  #etbe  #reactivedistillation  #catalyticdistillation  #gasolineadditive  #oxygeneatedadditive  #highoctanegasoline  
#lummus  #axens  #honeywell  #uop  #energyandsustainabilitysolutions  #indoramaventures 

#lummus #mtbe  #catalyticreforming  #cdmtbe  #cdtech  #catalyticdistillation  #highoctanegasoline 

The description of the Catalytic Reforming process has been updated.

#catalyticreforming  #catalyticreformer  #naphthareforming  #highoctanegasoline #reformate 

Description of Kem One has been updated.

#kemone  #pvc  #vcm  #electrolysis 

#uop #reliance  #dta  #refinery  #merox  #causticprocess 

Satellite View of the Daesan Petrochemical Complex with Manufacturing Sites from 롯데케미칼 (Lotte Chemical) | LG화학 (LG Chem) | 한화토탈에너지스 (Hanwha TotalEnergies) | HD현대케미칼 (HD Hyundai Chemical) | HD현대오일뱅크 (HD Hyundai Oilbank) | 코오롱인더스트리 (Kolon Industries) | 한화솔루션 (Hanwha Solutions) | 현대OCI (Hyundai OCI) | via Goggle Maps

South Korea’s petrochemical sector is undergoing a pivotal transformation as Lotte Chemical and Hyundai Chemical advance plans to integrate their naphtha cracking facilities at the Daesan Petrochemical Complex. This consolidation is a direct response to China’s overwhelming ethylene overcapacity—a structural market shift that has eroded profitability across Asia. By merging operations, the companies aim to fortify competitiveness through operational synergies and strategic realignment, setting a precedent for industry-wide adaptation.

China’s Ethylene Oversupply: The Imperative for Restructuring

China’s aggressive petrochemical expansion has created a global supply glut, with ethylene capacity in 2025 is forecast to be 121% more than local demand. This surplus has flooded international markets, compressing margins for producers reliant on naphtha feedstock, like those in Korea. Lotte Chemical’s 64% operating profit decline and HD Hyundai’s 58% drop reflect the severity of this pressure. The Daesan integration addresses this crisis by targeting ₩70–100 billion in annual savings through shared infrastructure, streamlined management, and optimized feedstock procurement.


 Daesan Petrochemical Complex Aerial View | Hyundai Engineering & Construction (Accessed 14^th June 2025)

The Daesan Integration: Scope and Strategic Rationale

The merger centers on combining Lotte Chemical’s 1.1 million-ton ethylene facility with HD Hyundai Chemical’s 850,000-ton unit at Daesan—a joint venture already co-owned by both entities. This consolidation will unify control over naphtha cracking technologies and derivative production, including polyethylene, propylene, and aromatics. Critically, it leverages the Daesan complex’s proximity to Chinese markets while mitigating the cost disadvantages Korean players face against Middle Eastern and North American rivals.


 Lotte Chemical's domestic petrochemical complex in Daesan, South Chungcheong province (Courtesy of Lotte Chemical) | via The Korea Economic Daily, 7^th Feb 2022 

Beyond Cost Savings: Portfolio Diversification and Innovation

While cost savings are vital, the merger’s strategic value lies in enabling portfolio diversification. The integrated entity can redirect capital from commoditized products toward high-value sectors, such as advanced materials and feedstock innovation, including exploration of crude-to-chemicals (TC2C) processes to bypass naphtha volatility. This shift aligns with Korea’s broader industrial policy, which now incentivizes specialization over volume-driven growth.


 TC2C Block Flow Diagram - © portfolio planning PLUS

Industry-Wide Implications and Policy Support

The Lotte-Hyundai initiative transcends bilateral cooperation—it signals a necessary evolution for Korea’s petrochemical industry. As China’s overcapacity persists, further consolidation is inevitable. The Korea Chemical Industry Association, supported by government and consulting reports, advocates reducing generic capacity by as much as 50%, particularly in hubs like Daesan and Yeosu where overlapping facilities are most concentrated. Legislative proposals now offer tax incentives for coordinated output cuts, and the government is expected to use a “carrot and stick” approach to accelerate reform, rewarding active participants in restructuring while withholding support from those that resist.

Conclusion: A Template for Resilience in the Asian Petrochemical Sector

China’s ethylene oversupply has irrevocably altered the petrochemical landscape, making the Lotte-HD Hyundai integration a tactical imperative rather than an optional efficiency play. By transforming Daesan into a hub of optimized production and innovation, the partnership offers a template for Korean industry resilience. Success will depend on sustained commitment to high-value differentiation and policy-supported restructuring—a path that may define Asia’s chemical sector for decades.

#lotte  #lottechemical  #hyundai  #hyundaichemical  #daesan  #korea  #petrochemicalcomplex  #naphthacracker  #ethylene  #oversupply  #consolidation

A generic technology with many details has been added.

#aminetreating  #aminesweetening  #acidgas  #sourgas  #acidgasremoval 

#acetone #phenol  #condensation  #bisphenola  #bpa 

The description of bisphenol A (main product) has been updated.

#bisphenola  #bpa  #polycarbonate  #epoxy 

#lgchem #korea 

#so2 #sulfudioxide 

Sulfur Recovery via the Claus Process has been added.

#sulfur  #elementalsulfur  #sru  #clausprocess  #sulfurrecoveryunit 

From Santos website:

Santos Limited (ASX:STO) (Santos) announces that on 13 June 2025 it received a non-binding indicative proposal from a consortium led by XRG P.J.S.C., a subsidiary of Abu Dhabi National Oil Company and including Abu Dhabi Development Holding Company (ADQ) and Carlyle (the XRG Consortium).

Investor news from Santos website:

Santos Limited (ASX:STO) (Santos) announces that on 13 June 2025 it received a non-binding indicative proposal from a consortium led by XRG P.J.S.C., a subsidiary of Abu Dhabi National Oil Company and including Abu Dhabi Development Holding Company (ADQ) and Carlyle (the XRG Consortium).

 #Sustainability #hydrogen 

#Sustainability #renewable  #SAF 

The description of the UOP Isomar process for xylenes isomerization has been developed.

#uop  #honeywell  #isomar  #xylenes  #mixedxylenes  #orthoxylene  #paraxylene  #metaxylene  #isomerization  #aromaticscomplex 

Description of the UOP FCC technology has been updated.

#uop  #honeywell  #fcc  #uop  #catalyticcracking 

Oct 28, 2005 -- ORLEN completed its biggest petrochemical investment

• PKN ORLEN officially completed the Olefin II revamping, an investment which has allowed the company to double its ethylene and propylene streams.
• The Olefin II plant ../.. was constructed in 1977-1980 based on Lummus technology. Initially, the plant capacity equaled 300,000 tonnes of ethylene and 125,000 tonnes of propylene per annum.
• Between 1994-1995 the plant was revamped and annual volumes increased to 360,000 tonnes of ethylene and 135,000 tonnes of propylene.
• The revamping of the Olefin II plant has marked the end of the Olefin I plant, which was constructed in 1971.
• The latest investment translates into increased annual ethylene volumes, from 360,000 to 700,000 tpa, and propylene from 135,000 to 380,000 tpa.

June 2, 2006 -- UOP Selected By Poland's PKN For New Aromatics Project

• PKN Orlen has selected UOP to supply technology, basic engineering services and equipment for an aromatics project to be installed at PKN's Plock Refinery in Poland.
• The new plant will produce 400 kMTA (thousand metric tons per annum) of para-xylene, which is a key ingredient in the production of polyester for fabric and PET (polyethylene terephthalate) chips for carbonated soft drink and water bottles.
• UOP will design a Parex(TM) process unit to extract pure para-xylene, an Isomar(TM) process unit to convert other xylenes to para-xylene, and a Tatoray(TM) process unit to convert toluene and heavy aromatics to xylenes.
• UOP has been working with PKN and its predecessor companies, Petrochemia Plock and MZRiP since 1974 when UOP licensed a hydrofluoric acid (HF) alkylation process unit, which is used in the production of high-octane gasoline.
• Since that time, UOP has licensed two CCR Platforming process units, a Penex process / DIH (deisohexanizer) unit, a Unicracking process unit, and an FCC (Fluid Catalytic Cracking) process unit at the Plock Refinery.

Sept. 13, 2019 -- PKN Orlen lets contract for Plock refinery

• PKN Orlen SA has let a contract to Honeywell UOP LLC to provide process technology designed to increase production of ethylene and aromatics, as well as improve flexibility of gasoline production, at its 327,300-b/d integrated refining and petrochemical complex in Plock, Poland.
• As part of the project, which is currently in the basic engineering stage, Honeywell UOP will license its proprietary MaxEne process, which separates full-range naphtha into a stream of normal paraffins ideal for steam crackers because they produce high yields of light olefins, and a second stream of isoparaffins, naphthenes, and aromatics ideal for catalytic reforming units because they produce high yields of aromatics.

May 13, 2020 -- PKN Orlen lets contract for new petrochemical unit at Plock complex

• PKN Orlen has let a contract to Badger Licensing LLC to provide technology for a new unit to be included as part of a project to expand phenol production capacities at its 327,300-b/d integrated refining and petrochemical complex in Plock, Poland
• As part of the May 12 contract, Badger Licensing will deliver the basic engineering design package as well as licensing of its proprietary technology to make isopropanol from acetone for a grassroots isopropanol unit.

Jan 20, 2022 -- Scientific Design Company awarded EO/EG plant license by PKN Orlen

• Scientific Design Company announces that PKN Orlen has selected Scientific Design’s EO/EG technology for olefins expansion project in Plock, Poland. Scientific Design was awarded the project as part of the Hyundai Engineering and Tecnicas Reunidas EPC consortium.
• The award includes the license of process technology, the provision of a process design package, technical assistance and start up services and the initial charge of Scientific Design’s ethylene oxide catalyst.
• Completion of the project is scheduled for 2024, with production expected to begin early 2025.

Feb 25, 2020 -- PKN ORLEN Licenses Honeywell Technology For New Phenol Complex In Poland

• PKN ORLEN plans to use the UOP Q-Max™ and Phenol 3G technologies to produce 200,000 metric tons per annum of phenol at its facility in Płock, Poland. 
• As part of the project, UOP will provide a cumene unit and a phenol unit with alpha methyl styrene hydrogenation. 
• UOP’s Q-Max process converts benzene and propylene into high-quality cumene at low benzene-to-propylene ratios.
• The UOP 3G Phenol unit converts cumene into phenol.

Feb 27, 2020 -- PKN Orlen approves new unit for Plock refining complex

Hydrocracking, hydrotreating projects

• An upgrade of the refinery’s hydrocracking unit is under way that, once completed, will increase diesel oil production by 100,000 tpy, PKN Orlen said.
• The operator said it is also executing a separate project to modernize a diesel hydrotreater at the refinery as part of a plan to boost diesel oil production by 150,000 tpy.

Aug 14, 2020 -- Plock Refinery Upgrade

Visbreaker

• A new visbreaking unit is being constructed at the Plock facility to improve the operational efficiency of the refinery. With a design capacity of 3,300t of feedstock a day, the unit will increase the overall petrol and diesel yields of the refinery.
• The visbreaking technology for the unit is licensed from Shell and CB&I Nederland B.V.
• The construction of the visbreaking unit was started in July 2020 with its commissioning expected in December 2022. The total investment for the visbreaking unit is approximately £202m ($252m).
• The visbreaking unit is expected to increase the fuel yields from crude processing by 2% while increasing the annual EBITDA of the PKN Orlen’s refinery by £84m ($105m).
• The new unit will process the vacuum residue to produce petrol and diesel. The vacuum residue was earlier processed to produce heavy fuel oils and asphalt.

Power Facility

Power facility upgrade

• The turbine generator set No. 1 (TG1) at PKN ORLEN’s combined heat and power (CHP) plant at Płock will also be replaced as part of the refinery upgrade and modernisation programme. The new turbine generator set, scheduled to come online in September 2021, will have a capacity of 65MW.
• The Plock CHP plant comprises seven turbine generator sets. The existing 55MW-capacity TG1 set, which started operation in 1968, has completed maximum service life of approximately 300,000 hours. The TG2, TG3, TG4, and TG5 sets that are approaching maximum service life are also expected to undergo upgrades and modernisation after the TG1. The TG6 and the TG7 sets were built in 2001 and 2017 respectively.
• The Płock CHP plant is claimed to be the largest industrial unit of its kind in Poland. The plant’s electrical capacity is 413.6MW and thermal capacity is 2,149MWt. The plant supplies electricity and heat to the refinery as well as outside customers. The new TG1 will increase the CHP plant’s heat and power cogeneration efficiency by 10%.
• GE Steam Power, a unit of General Electric (GE), was contracted to supply a new steam turbine generator set for the Plock CHP plant in August 2019. The contract also includes providing Predix Asset Performance Management (APM) cloud-based software, as well as a 10-year service agreement. The steam turbine and the generator will be manufactured at the GE plants in Elbląg and Wrocław respectively.

Vacuum-Resid Hydrodesulfurization

• Axens entered into an agreement with PKN Orlen to provide a license and the basic engineering design for the vacuum residue hydro desulphurisation (HOG) unit upgrade at Plock refinery in May 2020.

Jul 27, 2021 -- KBR Awarded Multiple Technology Contracts by PKN ORLEN

• KBR, Inc. announced that it has been awarded technology licensing contracts by PKN ORLEN (PKN) for KBR’s leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN’s Bottom-of-the-Barrel project for its Plock Refinery in Poland.
• Tthe SDA unit will be based on KBR’s market-leading supercritical solvent recovery ROSE® technology and will help PKN ORLEN achieve its operating objectives, producing cleaner upgraded feedstock for the new RFCC unit. 
• For the RFCC unit, KBR will provide its innovative, dual-riser MAXOFIN℠ technology, which uses conventional FCC operating conditions, KBR’s proprietary catalyst additives and state-of-the-art equipment to help PKN ORLEN maximize propylene production from traditional FCC feedstocks and naphtha streams.

Aug 9, 2021 -- KBR Awarded Ethylene Technology Contract by Hyundai Engineering and Técnicas Reunidas for PKN ORLEN Olefins Complex

• Under the terms of the contract, KBR will provide technology license, basic engineering design, and proprietary equipment for its leading ethylene technology, Selective Cracking Optimum Recovery (SCORE™), for PKN ORLEN’s Olefins Complex III Project.

#warsaw #poland  #warsawstockexchange  #wse  #gpw 

The detailed description of the UOP Parex technology for para-xylene separation has been completed.

#px  #paraxylene  #pxseparation  #parex  #uop  #honeywell  #mixedxylenes 

Aerial view of the Jiangyin Port City Economic Zone | Baidu, Feb 9, 2025

The Petrochemical Revolution: How Fujian Zhongjiang's Backward Integration Across the C₃ Value Chain Exemplifies Strategic Transformation in Global Petrochemicals

The global petrochemical industry is undergoing a fundamental transformation as companies across the plastic conversion sector embark on unprecedented backward integration strategies, fundamentally reshaping the traditional boundaries between refining, chemicals production, and downstream processing. This strategic shift represents more than incremental expansion; it signals a complete reimagining of how value chains operate in an era of supply chain volatility, margin compression, and the relentless pursuit of operational efficiency.

The Economics of Scale and Integration

The modern petrochemical landscape has become defined by the economics of mega-scale operations, where companies are discovering that vertical integration offers compelling advantages over traditional market-based transactions. Already, more than 30% of the world's refineries are now integrated with commodity petrochemicals, creating sites that benefit from both diversified product portfolios and enhanced operational synergies. This integration trend has been particularly pronounced in Asia, where approximately 70% of polypropylene plants by capacity are now integrated back to steam cracking or propane dehydrogenation sources of propylene.



Fuzhou Wanjing PDH3 began operation on May 15, 2025 | Shaanxi Chemical Construction, via oil.in-en.com

The financial rationale driving this integration is clear when examining the transaction cost economics that govern petrochemical operations. Companies are finding that the coordination efficiency gained through vertical integration significantly reduces the transaction costs associated with intermediary relationships, while simultaneously providing greater control over quality standards and supply chain reliability. The scale advantages are particularly evident in propane dehydrogenation operations, where single-unit capacities have expanded dramatically, with most recent facilities now reaching the impressive nameplate capacity of 900 thousand tonnes per year of propane.

China's Strategic Transformation and Global Implications

China's chemical industry expansion has become the defining force reshaping global petrochemical dynamics, with the country pursuing aggressive backward integration strategies that extend from plastic conversion all the way to crude oil refining. Chinese enterprises in the polyester value chain, including companies like Hengli, Shenghong, and Hengyi Petrochemical, have established massive refinery and integrated petrochemical complex projects that demonstrate the strategic imperative of securing upstream feedstock sources. This transformation is exemplified by companies that initially established themselves as textile manufacturers but have systematically integrated backward through purified terephthalic acid (PTA) production, paraxylene (PX) manufacturing, and ultimately into crude oil refining.



Ethylene production map centered on Eurasia | Source: portfolio planning PLUS

The scale of China's capacity expansion defies traditional market logic, with ethylene nameplate capacity increasing from approximately 26 million tonnes per year in 2019 to 54 million tonnes by 2024, more than doubling over the six-year period, with a further capacity increase expected to reach 66 million tonnes by 2025 according to industry estimates. China's ethylene and propylene capacity in 2025 is forecast to be 121% and 179% more than local demand respectively, creating structural oversupply that forces Chinese producers to seek international markets for their excess production. This capacity buildup has been facilitated by China's demonstrated ability to construct petrochemical facilities approximately 40% faster than international competitors, with paraxylene plants being completed in around 30 months compared to 48 months elsewhere, while also maintaining capital costs that are approximately 20% lower than the rest of Asia.

The Fujian Zhongjiang Model: From BOPP to Integrated Petrochemicals

The evolution of Fujian Zhongjiang Petrochemicals Group represents a paradigmatic case study in strategic backward integration within the C₃ value chain. The company's transformation from its origins as a biaxially oriented polypropylene film producer to a fully integrated propane-to-polypropylene operator demonstrates how specialized downstream companies can achieve remarkable operational synergies through systematic upstream expansion. Beginning as "the world's film king" in the BOPP sector, China Flexible Packaging Group recognized the vulnerability inherent in depending on volatile propylene markets and embarked on a methodical integration strategy that now spans from LPG import terminals through propane dehydrogenation to polypropylene production and finally to BOPP film manufacturing.



Fuzhou Propane Cryogenic Tank Storage | Seatao, May 29, 2023 

This integration model has enabled the company to achieve unique operational advantages, including circular hydrogen utilization where byproduct hydrogen from propane dehydrogenation fuels adjacent chemical units, reducing operational costs by approximately 15%. The company's current integrated structure encompasses:

• LPG import terminals with 1 million cubic meter storage capacity and an annual throughput capacity of 4 million tonnes
• Propane dehydrogenation plants with 2.5 million tonnes per year propylene capacity using Lummus CATOFIN and Honeywell UOP Oleflex technologies
• Polypropylene plants with 2.2 million tonnes per year capacity via LyondellBasell's Spheripol and SINOPEC ST-PP technologies
• BOPP film lines with 900,000 thousand tonnes per year capacity.

This level of integration allows the company to maintain 40% captive BOPP consumption while simultaneously supplying regional injection molding clusters, demonstrating how backward integration can create both supply security and market flexibility.

Technology and Process Innovation Driving Integration

The technological foundation enabling these massive integration projects has evolved significantly, with process innovations making large-scale operations both technically feasible and economically attractive. In polyethylene production, the latest advances exemplified by Univation's 800,000 tonnes per year UNIPOL PE Process and Chevron Phillips Chemical's MarTech single-loop slurry process deploying 1,000,000 tonnes per year HDPE lines demonstrate how reactor engineering and process optimization have redefined the limits of scale and flexibility. These technological advances are not merely incremental improvements but represent fundamental breakthroughs in managing the intense heat and mixing requirements of high-throughput polymerization while maintaining operational reliability and efficiency. Polypropylene production has witnessed comparable scale expansions, with Fujian Zhongjiang's integrated facilities demonstrating the progression from initial 500,000 tonnes per year production lines to the current world-scale 600,000 tonnes per year units utilizing LyondellBasell's Spheripol technology.



Fujian Meide Petrochemical Fuzhou complex - running Oleflex plant in the foreground, Catofin plant to be started up later in 2025 behind it | Baidu, Nov 2023

More dramatic scale increases are now seen at the origin of the C₂ and C₃ value chains. As we previously reported, ethane cracking facilities are now reaching ethylene production capacities of 2.1 million tonnes per year. The propane dehydrogenation sector is experiencing a similar technological evolution, with catalyst systems lying at the heart of process economics. The scale of PDH operations has now reached unprecedented levels, with individual units achieving 900,000 tonnes per year capacity, as demonstrated by Fujian Meide's facility that commenced operations in May 2025 and Fuzhou Wanjing's unit scheduled for startup later in 2025, both utilizing Lummus CATOFIN technology with specialized Clariant catalysts. Advanced PDH technologies now routinely operate at temperatures between 480-600°C under low pressure conditions, achieving propylene yields and selectivity that make large-scale operations economically viable even in regions with higher feedstock costs. The development of these technologies has been crucial in enabling companies to pursue backward integration strategies, as the improved economics of PDH operations make it feasible for downstream plastic producers to justify the substantial capital investments required for upstream expansion.

Strategic Implications and Future Trajectory

The acceleration of vertical integration in the petrochemical sector reflects broader strategic imperatives that extend beyond simple cost optimization. Companies are recognizing that integration provides critical protection against supply chain disruptions, market volatility, and competitive pressures that have intensified in recent years. The consolidation dynamics within different specialty chemical segments are driving companies to focus their portfolios while simultaneously optimizing their business models through strategic integration.



Zhongjing Petrochemical Group facilities in Jiangyin Industrial Zone | Chenhr

The implications of this integration trend extend to global trade patterns and competitive dynamics, as integrated producers gain significant advantages over standalone operations. The economic benefits of integration become particularly pronounced during market downturns, when integrated refinery-petrochemical sites consistently outperform their fuels-only peers due to their diversified revenue streams and operational flexibility. This performance differential is driving further consolidation as companies recognize that scale and integration have become essential requirements for long-term competitiveness in the evolving petrochemical landscape.

The future trajectory of the industry suggests that this integration trend will continue to accelerate, driven by the fundamental economics of large-scale operations and the strategic advantages of supply chain control. As companies like Fujian Zhongjiang demonstrate, successful integration requires not merely the ability to execute large capital projects, but the strategic vision to create synergistic value across the entire value chain while maintaining operational excellence at each stage of production. The companies that master this integration challenge will likely emerge as the dominant players in the next phase of global petrochemical industry evolution.


This article includes market data from WoodMckenzie, S&P Global, ICIS, Argus Media and other sources.

#refinerieintegration  #backwardintegration  #ethylene  #propylene  #valuechain  #lyondellbasell  #lummus  #uop  #honeywell  #sinopec  #technip 

The Korean Economic Daily

South Korea’s leading petrochemical firms are reeling from Chinese oversupply amid an industry slump.

Image: Lotte Website

Lotte Chemical Corp. and HD Hyundai Co. are in talks to consolidate their naphtha cracking operations in South Korea’s Daesan petrochemical complex – marking the first significant self-initiated restructuring move among domestic players facing intense pressure from Chinese oversupply.

According to multiple investment banking sources familiar with the matter on Wednesday, the two companies began negotiations to merge their respective naphtha cracking center (NCC) assets in Daesan, South Chungcheong Province.

The companies are currently working with a major accounting firm to assess the value of the assets and determine the fair value of a prospective joint venture, sources said.

The Lotte-HD Hyundai negotiations began earlier this year, following failed attempts by Lotte Chemical to explore similar consolidation efforts with other domestic producers such as LG Chem Ltd. and DL Chemical Co.

The description of Irving Oil (the company) and of its Saint John refinery have been updated.

#irving   #irvingoil   #saintjohn   #refinery   #saintjohnrefinery   #fccu