Communicator

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

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

Fujian Zhongjing Petrochemical Co. created, propane terrminal and production site have also been added as well as polypropylene production plants and capacities.

#fujian #fujianzhongjing #china #polypropylene #spheripol #lyondellbasell #bopp #propane #cryogenictank #pdh #propylene

Polytama Propindo has been created and its mass balance completed.

#polytama #propindo #tubanpetro #pertamina #indonesia #java #polypropylene #spheripol #lyondellbasell

The Berre petrochemical plant is one of the sites involved in exclusive sales negotiations between LyondellBasell and Aequita | PHOTO: Frédéric SPEICH, La Provence

LyondellBasell’s (LYB) agreement to divest four major European production sites to AEQUITA marks a pivotal moment not only for the company but for the continent’s entire petrochemical sector. The transaction, encompassing plants in France (Berre), Germany (Münchsmünster), the UK (Carrington), and Spain (Tarragona), is emblematic of a broader industry shift as producers grapple with persistent overcapacity, high costs, and the need for structural transformation.



LyondellBasell Transaction Footprint | Jun 5, 2025 | LyondellBasell Investors Presentation

Strategic Rationale: From Rationalization to Refocus

LYB’s decision to sell these assets is rooted in a deliberate strategy to sharpen its operational focus and enhance profitability. The divested sites, which together account for roughly 1.4 million tonnes per year of polyolefins and olefins output, have delivered only modest returns while consuming significant capital—averaging €110 million in annual capex from 2020 to 2024. By transferring these facilities to AEQUITA, LYB expects to reduce its fixed costs by approximately €400 million per year and reallocate capital toward its most competitive and sustainable European operations.

Notably, this move is not an isolated event. LYB’s review initially spanned six sites, including Brindisi (Italy)—where one polypropylene plant has already been shuttered—and Maasvlakte (Netherlands), a joint venture (with Covestro) asset not included in the AEQUITA deal. This highlights the depth of LYB’s strategic review and underscores the scale of rationalization underway across the region.

Industry Context: A Wave of Closures and Consolidation

LYB’s asset sale is part of a much larger trend. European petrochemical producers are facing unprecedented headwinds: high energy costs, aging infrastructure, tightening environmental regulations, and lackluster demand. Other industry leaders, such as ExxonMobil, Sabic, and Indorama Ventures, have also closed or downsized European operations in the past year. Ultimately, up to half of the continent’s ethylene crackers could ultimately face closure, as the economics of small, old plants become increasingly untenable.

This rationalization wave is not simply a response to cyclical weakness but a recognition of structural change. Freight disruptions and temporary supply shocks have only delayed the inevitable need for consolidation and transformation.


LyondellBasell' Assets for Sale | Jun 5, 2025 | LyondellBasell Investors Presentation

Deal Structure and Financial Terms

The transaction with AEQUITA is structured to enable a smooth transition:

• LYB will contribute €265 million (of a €275 million carve-out support fund) to facilitate the separation, with AEQUITA providing €10 million.
• LYB stands to receive up to €100 million in earnouts over three years.
• AEQUITA will assume approximately €150 million in pension and employee liabilities, as well as all environmental obligations.
• The deal is expected to close in the first half of 2026, subject to regulatory and works council approvals.

Importantly, LYB’s exit from these sites will also spare it from the need to invest hundreds of millions in decarbonization upgrades, particularly at Berre and Münchsmünster, where meeting 2030 emissions targets would have required major capital outlays.

LYB’s European Commitment: Core Sites and Circular Ambitions

Despite the high-profile asset sale, LYB has made clear that Europe remains a core region. The company’s retained portfolio includes technologically advanced and economically advantaged sites in Ferrara, Frankfurt, Ludwigshafen, and Rotterdam, as well as integrated supply hubs in Cologne and specialty operations in APS. These facilities are positioned to support LYB’s ambitions in circular and low-carbon solutions, including advanced recycling (MoReTec) and the CirculenRecover product line.

LYB’s future European footprint will be more focused, with a higher share of capacity in cost-advantaged regions (U.S. and Middle East), rising from 61% to 68% post-transaction. The company is also stepping up investment in recycling and circular economy initiatives at its core sites, aiming to deliver 2 million tonnes per year of recycled and renewable polymers by 2030.

Market Implications and Competitive Dynamics

LYB’s withdrawal from these European assets will reshape the regional supply landscape, opening opportunities for Middle Eastern and Asian exporters to increase their market share. The move also contrasts with the strategies of some competitors, such as SABIC, which is expanding its footprint in Asia. For LYB, the divestment enables a sharper focus on direct customers, brand owners, and high-growth segments, while freeing up resources for innovation and portfolio upgrades.

Berre Petrochemical Cluster Process Flow Diagram | ppPLUS Interactive Visualization Tool

Outlook: More Closures Ahead

The European petrochemical sector is entering a “new normal” characterized by ongoing rationalization. With many crackers and polymer plants facing existential threats due to age, size, and economics, further closures are likely. LYB’s asset sale could be a bellwether for additional portfolio actions across the industry.

How ppPLUS Can Help

For investors and stakeholders evaluating LyondellBasell’s divested assets, Portfolio Planning PLUS (ppPLUS) offers tailored economic modelling capabilities to assess risks, opportunities, and transaction value. ppPLUS specializes in developing site-specific models that integrate:

Asset configurations: Detailed analysis of production units, technologies (e.g., Steam Crackers at Berre and Münchmünster, Novolen Gas-Phase PP at Tarragona, Hostalen ACP HDPE at Münchsmünster, Lupotech T LDPE and Spheripol Bulk-Slurry PP at Berre), and feedstock flexibility.
Capacity utilization: Scenario-based projections accounting for market demand, regulatory constraints, and operational synergies.
Financial and operational metrics: Capex/opex forecasting, decarbonization cost avoidance, and liability assumptions (e.g., pensions, environmental obligations).

Using ppPLUS’s interactive platform, users can:

• Generate gross margin models for individual sites or combined portfolios.
• Simulate the impact of energy price volatility, carbon pricing, and feedstock availability.
• Benchmark asset performance against industry standards and regional competitors.

ppPLUS’s tools align with global best practices in economic modelling, including compliance with frameworks like the UK’s TAG M5.3 supplementary economic modelling guidelines for rigorous validation and scenario testing.

Explore ppPLUS’s asset-specific insights:

• Berre, France
• Münchsmünster, Germany
• Carrington, UK
• Tarragona, Spain

Contact ppPLUS to leverage its expertise in petrochemical asset valuation, strategic due diligence, and regulatory risk assessment for informed decision-making in this transformative transaction.

#portfolioplanningplus #ppplus #transactions #divestment #marginanalysis #economicmodelling #capacityutilization #opex #capex #lyondellbasell #sabic #indorama #ineos #exxonmobil #aequita #aramco

Mass Balance has been completed.
Asset capacities and technologies have been identified.

#lyondellbasell #munchmunster #germany #hostalen #acp #hdpe

Mass Balance has been completed.

#lyondellbasell #carrington #polypropylene

Mass Balance has been completed.
Asset capacities and technologies have been identified.

#lyondellbasell #berre #france #lupotecht #spheripol

Mass Balance has been completed.
Asset capacities and technologies have been identified.

#lyondellbasell #tarragona #spain #novolen #polypropylene

AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde #univation #lyondellbasell #chevronphillips #cpchem #sibur #amurgcc #sinopec
#steamcracker #ethyleneplant #amur #russia #unipolpe #martech #slurryloop #gasphasepe #spheripol #polyethylene #polypropylene #ethane #lpg

PE and PP Plants with their technologies and capacities have been added.


#petronas #saudiaramco #prefchem #pengerang #lyondellbasell #ineos #spheripol #spherizone #innovene #hostalen

#lotte #lottechemical #malaysia #unipolpe #univation #lyondellbasell #spheripol

Polyethylene plants with technologies and capacities have been added.


#lyondellbasell #spheripol #mitsui #mitsuicx #hdpe #ldpe #lottechemical #malaysia

The Ceyhan PP production site has been created and technologies identified and added.


#ceyhan #turkiye #sonatrach #propane #pdh #dehydrogenation #uop #oleflex #lyondellbasell #spheripol

#russia #sibur #tomskneftekhim #lyondellbasell #spheripol #lupotech

Saudi Arabia, 27 Feb 2025 - Saudi International Petrochemical Company (Sipchem) and global chemical giant LyondellBasell have announced a significant partnership to explore the development of a world-scale mixed-feed cracker in Saudi Arabia, bolstered by their successful securing of feedstock allocation from the Saudi government.

The two companies have signed a memorandum of understanding (MoU) to conduct a joint feasibility study for the proposed facility, which would utilize both ethane and refinery off-gases as feedstock. This mixed-feed approach offers greater flexibility in raw material sourcing while potentially improving the economics of the operation.

The proposed cracker would be integrated with downstream units to produce a range of high-value petrochemical products, including polyethylene, polypropylene, and various specialty chemicals. Industry analysts estimate the total investment could exceed $5 billion, though the companies have not confirmed specific figures pending the feasibility study's completion.

For LyondellBasell, the partnership represents a strategic move to expand its presence in the Middle East, a region that offers competitive feedstock advantages and growing domestic markets. The company has been actively restructuring its global portfolio, seeking opportunities in regions with favorable economics while potentially divesting from higher-cost locations.

The Saudi government has strongly supported the development of domestic petrochemical capacity through initiatives like Vision 2030, which aims to reduce the country's dependence on crude oil exports by developing downstream industries, aligning with national priorities to capture more value from the country's natural resources.

If the feasibility study yields positive results, construction could begin as early as 2026, with production potentially starting by 2029. The facility would likely be located in Jubail Industrial City, where Sipchem already operates several petrochemical plants and where existing infrastructure could support the new development.

The project faces competition from similar large-scale petrochemical developments in the region, including those being pursued by Saudi Aramco and SABIC. However, industry experts believe growing global demand for petrochemical products, particularly in emerging Asian markets, provides room for multiple new facilities.

The announcement comes as part of a broader wave of petrochemical investments in Saudi Arabia and the wider Gulf region, as producers seek to capitalize on competitive feedstock costs while meeting growing global demand for plastics and other petrochemical derivatives.

#aramco #sabic #sipchem #lyondellbasell #steamcracker #ethane #rog #polyethylene #polypropylene #saudirabia

The POSM process from Lyondellbasell for the co-production of propylene oxide and styrene from ethylbenzene and propylene has been added.


#posm #smpo #ethylenzene #styrene #propylene #propyleneoxide #smpo #posm #lyondellbasell

#kbr #phenolacetone #cumene #badger #lyondellbasell #spheripol #lupotech #isopropylbenzene #cumene #badger #bisphenol #phenol #polycarbonate #asahikasei #steamcracker #gascracker #eoeg #ethyleneglycol #meg #scientificdesign #hostalen #hdpe

#polyethylene #polypropylene #ethyleneglycol #hpeo #meg #hdpe #lldpe #pp #ineos #lupotech #spheripol #spherizone #univation #unipolpe #master #lyondellbasell #shell #cnooc #china #cspc

Polyolefin technologies, glycol process and their capacities have been identified.


#lyondellbasell #novachemicals #scientific design #spheripol #hostalen #sclairtech #india #panipat #refinery #iocl

Rotterdam, January 28, 2025 – LyondellBasell (LYB), the world's largest licensor of polyolefin technologies, today announced that Indian Oil Corporation Ltd. (IOCL) has selected its Hostalen Advanced Cascade Process (Hostalen ACP) technology for a new 500 kiloton per year (kta) high-density polyethylene (HDPE) facility in Paradip, India.

The new HDPE plant will be integrated into IOCL's Paradip complex, one of India's largest integrated refinery-petrochemical complexes. Located on the eastern coast of India in the state of Odisha, the Paradip facility plays a strategic role in serving the growing polymer market in the Indian subcontinent. The complex, which includes a 15 million tonnes per year refinery, will benefit from the addition of this state-of-the-art HDPE unit to its existing petrochemical operations.


#paradip #india #hostalen #acp #lyondellbasell #hdpe

Liwa Plastics Industries Complex (LIPC) has been added, the main technologies have been identified and the mass balance halfway developed.

#lummus #lyondellbasell #univation #unipolpe #spheripol #srtsteamcracking #ethyleneplant #oman #oq

Layoffs of up to 400 employees at the refinery are scheduled to begin two months after the shutdown begins, the sources said.


#lyondellbasell #houston #usa #refinery

Some assumptions haven been made based on technologies reported in 2009. .

There is a lack of reported information details about what happens between the ADUs and the two FCC plants, the technologies employed in the Lube plant (which also has at least one VDU) and the fuel blending plant making 7 million tonnes of the total 10.5 million tonnes of crude oil processing capacity .

The mass balance is also not matching as far as feedstock going into the FCCs is concerned. In case of the aromatics plant, this is a suite of many technologies, with reforming, alkylation, separation, etc but no details are available excepted it is known to be from Axens (formerly HRI).

There is double counting of polypropylene capacity with PP fed into a PP compounding plant (JPP's technology).


#axens #sinopec #linde #lummus #uop #lyondellbasell #kbr #jpp

Credit: Gunvor, Rotterdam refinery

By Jack Wittels and Alex Longley, November 22, 2024, Bloomberg

Gunvor Group is temporarily halting its Rotterdam oil refinery because it’s not making enough money, the latest sign that the continent’s plants are struggling to compete with upstarts in other parts of the world.

Effective Nov. 25, the so-called economic halt is due to a lack of prompt availability of commercially viable feedstock, the company said in a statement. Gunvor said it will “continue to monitor the situation and assess future resupply for the refinery in due course.”

With a processing capacity of 75,000 barrels a day, the plant is relatively tiny. Still, it joins a growing list of European refineries with plans to either halt or downsize, including the Wesseling and Gelsenkirchen plants in Germany and the Grangemouth facility in Scotland.

Europe’s refineries are under pressure from large, new plants, including in the Middle East and Africa, such as Nigeria’s giant new Dangote refinery. The rival fuelmakers can send what they make to Europe, and also compete for market share elsewhere in the world.

#gunvor #refinery #europe #rotterdam #wesseling #gelsenkirchen #grangemounth #petroineos #lyondellbasell #ineos #nigeria #dangote #crudeoil #bp

On Oct. 23, Bora LyondellBasell Petrochemical Co., Ltd. (BLYB) celebrated producing 5 million tonnes of polyolefins since its commissioning, LyondellBasell reports on Linkedin. This news triggered us into creating a model of the Panjin site with a good level of details (illustration above), although some information is still lacking, especially on specific technologies employed. BLYB, a joint venture between LYB and Jincheng Petrochemical, operates one of China’s largest polyolefin production sites in Panjin, Liaoning, with an annual capacity of 1.1 million tons of ethylene and related products.

#lyondellbasell #jincheng #petrochemicals #polyolefins #china #blyb #boralyndellbasell #ethylene

BLYB, a joint venture between LYB and Jincheng Petrochemical, operates one of China’s largest polyolefin production sites in Panjin, Liaoning, with an annual capacity of 1.1 million tons of ethylene and related products.

Source: 24^th Oct 2024, Lyondellbasell on Linkedin

#bora #lyondellbasell #jincheng #petrochemical #china #liaoning #panjin #polyolefins

Bora LyondellBasell Petrochemical Co., Ltd. company and petrochemical site in Panjin have been added.

#bora #lyondellbasell #blyb #jincheng #shangdong #panjin #petrochemical

Alterra closes investment round with the expectation to accelerate the commercialisation of its plastics pyrolysis technology

Investors Infinity Recycling, Chevron Phillips Chemical, LyondellBasell, and Neste, along with long-term support from Potenza Capital, have successfully closed their latest round of equity funding in Alterra Energy (formerly Vadxx Energy). This investment round is expected to accelerate the commercialization of Alterra’s plastics pyrolysis technology, designed to transform discarded plastic into valuable raw materials.

Alterra's advanced recycling technology has been modeled on ppPLUS and the mass balance of the company's demo plant in Akron has been created. One main product the technology is producing is plastics pyoil, which may be fractionnated to separate naphtha, which can be used as a feedstock returned to the cracker to produce ethylene among other products. The feedstock the technology is accepting is mostly clean polyolefin waste.

Source: Alterra, 22^nd Oct 2024 & portfolio planning PLUS.

#alterra #lyondellbasell #neste #cpchem #pyrolysis #plasticwaste #advancedrecycling #molecularrecycling #chemicalrecycling #pyoil #steamcracking #naphtha #ethylene #polyethylene

LyondellBasell Spherizone technology model has been updated with PFD and technology units.

#polypropylene #spherizone #lyondellbasell #multizone

Several technologies and production capacities have been added to HMEL's Guru Gobind Singh Refinery.

#lummus #lyondellbasell #chevronphillipschemical #cpchem #p örner #bituros #asphaltblowing #steamcracker #dualfeed #martech #novolen #unipol #spheripol #univation #asphaltblowing

#lyondellbasell #spheripol #technology #polypropylene