Communicator

Sabic European Head Office in Sittard, The Netherlands

Sabic, the Saudi chemicals giant majority-owned by Aramco, is preparing to exit its European petrochemicals business—a move that underscores the mounting pressures facing the region’s manufacturing sector. The company’s plants and operations, spanning Germany, Spain, and the UK, are now up for sale, with investment banks Lazard and Goldman Sachs overseeing the process. These assets, which generate billions in annual sales, are among the largest of their kind in Europe.

Why Is Sabic Leaving Europe?

Sabic’s planned departure is not simply a business reshuffle but a reflection of deep-rooted challenges in Europe’s chemicals industry. Over the past several years, European producers have been squeezed by a combination of macroeconomic headwinds, persistent overcapacity, and intensifying global competition. The sector has faced years of oversupply and falling prices, with demand for petrochemicals closely tied to sluggish GDP growth. Sabic itself recently cut its 2025 GDP forecast, citing weaker prospects for the industry as a whole.

The economic backdrop is further complicated by Europe’s high energy prices and strict environmental regulations. European producers pay significantly more for natural gas than their US counterparts, and the cost of emitting carbon dioxide continues to rise under the EU’s ambitious climate policies. While American and Middle Eastern producers benefit from cheaper feedstocks and less stringent emissions rules, European plants—many of them older and reliant on naphtha—struggle to compete. The result is a cost gap of up to $300 per tonne for key products like ethylene and propylene, putting relentless pressure on margins.

Industry Consolidation and Rationalization

These structural disadvantages have triggered a wave of rationalization across the continent. Sabic is not alone: ExxonMobil, Dow, and other multinationals are also closing or idling European assets, as high costs and weak demand make it difficult to justify continued investment in aging facilities. In 2024 alone, nearly 1 million tonnes of ethylene capacity is being permanently phased out, with more closures likely as the industry adapts to the “new normal” of lower profitability and higher sustainability standards.

The European Union’s push for emissions reductions-targeting at least a 55% cut from 1990 levels by 2030-adds another layer of complexity. Modernizing old plants to meet these goals is often more expensive than closing them, and the introduction of mechanisms like the carbon border adjustment tax could further deter outside investment.

Who Might Buy Sabic’s Assets?

With Sabic’s portfolio now on the market, potential buyers are weighing both risks and opportunities. European rivals such as BASF and INEOS may see value in expanding their networks, while Middle Eastern energy firms could be interested but wary of Europe’s carbon costs. Private equity investors, particularly those focused on green technology, are also watching closely, drawn by the chance to modernize facilities and tap into EU subsidies for hydrogen and recycling projects.

Global Shifts and the Road Ahead

Sabic’s strategic pivot comes as the global chemicals market is being reshaped by geopolitics and shifting trade flows. Ongoing trade tensions between the US and China, along with the prospect of increased supply from Iran, are pushing more business toward the Middle East and Asia, further eroding Europe’s traditional advantages. Meanwhile, Sabic and Aramco are doubling down on investments in high-growth Asian markets, including a $6.4 billion petrochemical complex in China, betting on robust demand for plastics and chemicals in the region.

#sabic #aramco  #ineos #basf  #dow  #exxonmobil  #recycling  #carbontax

Portfolio Planning PLUS provides a comprehensive overview of refining and petrochemical activities in every world' s country. Screenshot shows Spanish refineries via the platform's refining module.

Portfolio Planning PLUS | April 30, 2025

A massive power outage swept across Spain and Portugal on April 28, forcing all major Spanish refineries and several petrochemical plants into an emergency shutdown. The blackout, which struck at around 12:30 CET, caused an abrupt drop of over 10GW from the Spanish electricity grid, disrupting industrial complexes, halting metro and rail services, and even grounding flights across the region

• All five of Repsol’s Spanish refineries-representing a combined refining capacity of 890,000 barrels of crude oil per day-were compelled to cease operations, alongside the company’s petrochemical plants in Tarragona and Puertollano.
• Moeve, another key Spanish refiner with 464,000 barrels per day of refining capacity, also shut down its Algeciras and Huelva refineries, as well as two petrochemical plants in southern Spain.
• Dow Chemical Spain’s Tarragona industrial complex was similarly affected, and emergency flaring was observed at some sites as part of safety protocols during the shutdown.

Following the restoration of power from late on April 28, refinery operators began the complex process of restarting their facilities. According to Repsol, crude oil crude distillation units require about three days to come back online, while secondary conversion units, including hydrocrackers, may take up to a week to resume normal operations. The company confirmed that its Bilbao refinery was the first to restart, aided by electricity imports from France, and emphasized that no significant damage occurred during the outage.

Moeve and other operators are also in the process of progressively bringing their plants back online, though none have specified when output will return to pre-outage levels.

The outage has prompted Spain’s petroleum reserves corporation Cores to temporarily relax strategic reserve requirements, reducing the obligation by four days to help mitigate potential supply disruptions. Meanwhile, Exolum, the country’s main pipeline and storage operator, reported that its infrastructure is functioning normally and that essential services and airports continued to receive fuel throughout the blackout

While most industrial activity is expected to recover within a week, the incident has highlighted the vulnerability of Spain’s energy infrastructure and the critical importance of grid stability for the country’s refining and petrochemical sectors.


#electricitygrid  #electricity  #poweroutage  #refineryshutdown  #refineryrestart  #refining  #spain  #repsol  #moeve  #petronor  #dowchemical 

Dow Werk Böhle has been created, cracker and production capacities have been added.

#steamcracker #naphthacracker  #dow  #germany  #böhlen

Dow Inc. has announced a significant delay to its highly anticipated Path2Zero project in Fort Saskatchewan, Alberta, while also expanding its review of European assets in response to ongoing market challenges. The Path2Zero initiative, originally slated for phased startup in 2027 and 2029, represents an $8.9 billion investment to build the world’s first net-zero emissions steamcracker (ethylene plant) and polyethylene production facility. This project was designed to decarbonize 20% of Dow’s global ethylene capacity and boost its polyethylene output by about 15%, supplying roughly 3.2 million metric tonnes of low- or zero-carbon plastics annually.

The decision to delay construction comes as Dow faces persistent global economic uncertainty, including unpredictable U.S. trade policies and tariffs that have dampened demand and increased market volatility. According to Dow CEO Jim Fitterling, the pause is intended to preserve cash flow and avoid escalating costs before major construction begins. By delaying the project, Dow expects to save $600 million in 2025, contributing to a $1 billion reduction in capital expenditures for the year. Despite the setback, the company remains committed to the long-term vision of the Path2Zero project, which is seen as crucial for future growth in sectors such as pressure pipes, wiring, cables, and food packaging.

In addition to the Path2Zero delay, Dow is broadening its review of European assets, particularly in light of high feedstock and energy costs, weak demand, and increasingly complex regulatory conditions in the region. This expanded review now includes all value-creating options for its polyurethanes business, as well as three high-cost, energy-intensive upstream assets: the steam cracker in Böhlen, Germany; chlor-alkali and vinyl assets in Schkopau, Germany; and the basics siloxanes plant in Barry, U.K. The company aims to complete this review by mid-2025, with possible outcomes ranging from idling to shutting down these facilities.

Financially, Dow reported a net loss of $290 million in the first quarter of 2025, reversing a profit from the previous year, largely due to lower prices and higher costs. The company has also implemented a global workforce reduction of 1,500 jobs and is targeting approximately $6 billion in near-term cash support through asset sales and legal settlements. Despite these challenges, the Alberta government and other project stakeholders continue to support the Path2Zero initiative, emphasizing its long-term importance for the region’s economy and the global shift toward low-emissions energy.

#dow  #dowchemical  #dowolefins  #steamcracker  #b öhlen #germane  #schkopau  #chloralkali  #netzero   #chloralkali 

Dow Tarragona North has been created  and the cracker plant has been  added as well as ethylene and propylene production.


#dow  #spain  #iberica  #steamcracker  #linde  #ethylene  #propylene 

Dow Chemical Ibérica S.L. has been added.

#dowchemical #spain  #iberica 

DOW Chemical’s industrial complex, in Terneuzen, The Netherlands

24^th Jan 2025

Dow's decision to indefinitely postpone the maintenance of its No. 3 ethylene cracker (LCH-3) at Terneuzen reflects the company's strategy to navigate challenging market conditions in Europe.

Initially planned for 2023 and later rescheduled for 2025, the maintenance has now been deferred indefinitely due to weak regional demand and cost-cutting measures.

The idling of this cracker, which has a nameplate capacity of 680,000 tons per year of ethylene, will help Dow reduce expenditures while maintaining its ability to meet customer commitments through its other two operational crackers (LCH-1, LCH-2) at the site.

This move highlights the broader struggles in Europe's petrochemical sector, where subdued demand and oversupply have pressured margins.

The closure of downstream derivative production facilities at the DOW Chemical’s industrial complex, in Terneuzen, such as Trinseo's ethylbenzene-styrene unit and Olin's cumene unit in 2023, has further exacerbated the challenges in placing cracker products in the market.

Dow's flexibility in feedstock usage at Terneuzen has historically supported profitability, but current conditions necessitate operational adjustments.

The timeline for restarting LCH-3 remains uncertain and will depend on market recovery and investment in required maintenance.

#terneuzen  #netherlands  #dowchemical  #steamcracker 

Dow Polyurethane Technologies

January 30, 2025 | Midland, Michigan (Dow Inc.)

Dow, a global chemical giant, has initiated a comprehensive review of its European assets, focusing primarily on its polyurethane business. This decision comes as the company navigates persistent economic challenges and a complex regulatory environment in the region.

The review will assess the competitiveness of key facilities producing methylene diphenyl diisocyanate (MDI), propylene oxide, and polyether polyols—assets that generated approximately $2.9 billion in annual sales in 2023. Dow aims to optimize value through its "best-owner" strategy, with plans to complete the evaluation by mid-2025.

Jim Fitterling, CEO of Dow, emphasized the importance of adapting to market conditions while maintaining a value-driven approach. He noted that selling assets rather than closing them could align better with the company's long-term objectives.

This move reflects broader industry trends as other chemical companies reevaluate their European operations due to high production costs and stringent regulations.

Despite these challenges, Dow remains committed to strengthening its global portfolio while addressing regional complexities, reporting stable performance globally with its third-quarter 2024 sales rising modestly by 1%.

#dow  #chemicals  #polyurethane  #polyols  #mdi  #europe  #assets 

The Univation UNIGILITY^TM High-Pressure Tubular Reactor process technology has been added.


#dow  #unioncarbide  #univation  #unigility  #highpressure  #tubularreactor  #lowdensitypolyethylene  #ldpe 

DOW petrochemical size in Terneuzen has been added.

#dow #terneuzen  #netherlands  #benelux  #europe  #petrochemicals 

The picture shows the panoramic view of 4# atmospheric and vacuum distillation unit

April 2010: The first million-ton ethylene plant of Zhenhai Refining and Chemical was completed and put into operation. (Source)

2020: China's first 100,000 tons/year bio-jet fuel unit was completed in Zhenhai Refining and Chemical. (Source)

Jan 2022: Zhenhai Refining and Chemical's 1.2 million tons/year ethylene unit produced qualified products. (Source)

28^th June 2021: The first phase of Sinopec Zhenhai Base project was completed in Zhenhai, Ningbo, Zhejiang. The commissioning of this project will add 1.2 million tons of ethylene annual production capacity and 4 million tons of refining annual capacity to Zhenhai Refining and Chemical. (Source)

27^th Sep 2021: The 4# atmospheric and vacuum unit was put into operation. In 2022, the energy (steam) consumption of the unit dropped from 11.51 kg of standard oil/ton at the initial start-up to 9.45 kg of standard oil/ton, with significant energy-saving and consumption-reducing effects.

18^th Nov 2021: The No. 2 coal-coke hydrogen production unit at the Zhenhai base was successfully put into operation. 
Over the past year (2022), the 2# coal-coke hydrogen production unit has supplied more than 100,000 tons of hydrogen and over 700,000 tons of fuel gas . It has successfully achieved 122 days of operation of the III series gasifier burner, more than 3 months of stable operation of the coal mill, and more than 80 days of wastewater stripping operation, creating the first domestic record of dual-unit operation of propylene compressors. (Source)

6^th Jan 2022; The No. 2 propylene oxide styrene (POSM) unit of Zhenhai Base was successfully put into trial operation. 
In the one year since the start of operation, the plant has achieved a stability rate of 99.42% and a product qualification rate of 100% . The plant achieved excellent results in annual PO production of 269,800 tons and SM production of 583,400 tons.  (Source)

2022: The tail oil products produced by the 3# hydrocracking unit are used as the raw materials for the 2# ethylene unit, and desulfurized dry gas is provided as the sulfur injection agent. 
As the largest single-series hydrocracking unit in China, the unit has now (6^th Jan 2023) processed a total of 2.2 million tons of wax oil, 1.64 million tons of diesel, and produced a total of 1.18 million tons of naphtha and 550,000 tons of jet fuel. (Source)

7^th Jan 2023: 
▪️ Today, on the first anniversary of the successful start-up of the ethylene unit, the unit's automatic control rate reached 97% and the stability rate reached 99.5%, the output of ethylene products was 997,500 tons, and the comprehensive energy consumption of the ethylene cracking furnace ranked first in Sinopec.
▪️ As an important downstream unit of ethylene, the 2# ethylene glycol (2# EOEG) unit actively explored the lower limit of the unit's operating load.
▪️ The National Four Units (2# butadiene extraction unit, 3# aromatics extraction unit, 2# MTBE/butene-1 unit, 2# pyrolysis gasoline hydrogenation unit) have made positive contributions to the company's optimization of ethylene production capacity structure, processing C4 to C9 cracking components and integrating them into high value-added economic value products.
(Source)

24^th Nov 2023: The 1.5 million tons/year ethylene and downstream high-end new materials industry cluster project of Zhenhai Refining and Chemical started. The project involves 2*200,000 tons/year of polyolefin elastomer (POE/α-olefin) combination, 400,000 tons/year of low-density polyethylene (LDPE)/ ethylene-vinyl acetate copolymer (EVA) (vinyl acetate (VA)), 200,000 tons/year of adiponitrile and other popular materials. (Source)

18^th Oct 2024: Sinopec Ningbo Project EPC General Contracting, Zhenhai Base Phase II Project Double Hydrogenation Unit Delivery! The 1.5 million tons/year jet fuel hydrogenation and 4 million tons/year wax oil hydrogenation units at Sinopec Zhenhai Base have passed the acceptance inspection. (Source)

21^st October 2024: The mechanical completion of the 11 million tons/year atmospheric and vacuum distillation unit of the second phase of the Zhenhai base was achieved. This project is the leading unit of the second phase of the base's refining project, and it is also the atmospheric and vacuum distillation unit with the largest crude oil processing capacity of Zhenhai Refining and Chemical. (Source)

30^th August 2024: The first batch of main and supporting projects of the Zhenhai Base Phase II - aromatics extraction, catalytic gasoline hydrogenation, and pressure tank area - achieved mechanical completion. So far, the overall schedule of the Zhenhai Base Phase II project has been completed by 95%, and the project construction is stable and orderly. (Source)

23^rd Nov 2024: The 1.5 million tons/year No. 2 aviation kerosene hydrogenation unit of the second phase of Zhenhai Base successfully introduced raw aviation kerosene, marking that the first unit of the second phase of the base has entered the feeding test run stage. (Source)


#ZRCC  #zhejiang  #sinopec  #refining  #chemical  #downstream 

Description of the HPPO process has been update.


#hppo  #propyleneoxide  #propylene  #hydrogenperoxide  #dow  #basf 

Existing FS1 steam cracker technology was developed inhouse by DOW, and the existing three PE trains are Dow solution process according to the Path2NetZero map. Cracker capacity is estimated based on capacity expansion indications.

#dow  #solutionprocess  #polyethylene  #steamcracking  #canada  #fortsaskatchewan 

DOW METEOR Ethylene Oxide process description has been updated.

#dow #ethyleneglycol  #monoethyleneglycol  #deg  #teg  #meg  #mixedglycols  #pet  #polyester  #meteor 

DOW Ethylene Oxide only process (METEOR HEXTEO) description has been updated.

#dow  #hexteo  #ethyleneoxide  #ethylene  #meteor  #ethyleneglycol 

MEGlobal Prentiss site has been added.

#meglobal #dow  #canada  #prentiss  #reddear  #ethyleneglycol  #eoeg 

MEGlobal Canada ULC details have been updated.

#meglobal  #dow  #equate  #eoeg  #ethyleneglycol  #meteor  #canada 

The Mass Balance of the Unipol PE plant is completed.

#dow  #canada  #reddear  #prentiss  #alberta  #unipol  #polyethylene 

The Mass Balance of Joffre chemical site has been completed, which also includes onsite INEOS LAO plant, the onsite DOW-Nova Ethane Cracker E3 JV and ethylene shipment to nearby DOW Prentiss site from the E3 plant.

#dow  #nova  #canada  #steamcracker  #ethylene  #polyethylene  #unipol  #sclairtech  #technip 

DOW Prentiss site in Canada has been added.

#dowchemical  #canada  #reddear  #polyethylene  #ethyleneglycol  #ethylene 

The site has one ethane cracker and its mass balance has been determined.

#steamcracking  #ethane  #ethylene  #dow  #nova 

The Ethylene 3 JV between DOW Chemicals Canada ULC and NOVA Chemicals Corporation has been added ,as well as the corresponding production site in Joffre, Canada. 

#canada  #dow  #nova  #joffre  #e3  #ethylene3  #steamcracker  #ethyleneplant