Communicator

Dutch TTF Gas March 25 (TGH25) Price Chart (€/MWh)

Yara's Hull Plant Mothballing Highlights Europe's Ongoing Energy Challenges

The recent announcement (on 7 February 2025) of Yara International's decision to mothball its Hull ammonia plant in the UK, which has an annual capacity of 300,000 metric tons represents a striking example of how Europe's energy crisis continues to impact industrial production.

This decision is part of a broader strategy to reduce European ammonia production by 1 million metric tons due to high natural gas feedstock costs and the impact of European carbon policies.

The Hull plant closure, likely permanent, reflects the challenges faced by energy-intensive industries in Europe, where elevated energy prices and regulatory pressures have significantly eroded competitiveness.

The Natural Gas-Fertilizer Connection

Fertilizer production, particularly nitrogen-based fertilizers, is
inextricably linked to natural gas prices. Natural gas serves not only as an energy source but also as a key raw material in the production process. Through the Haber-Bosch process, natural gas (methane) is converted into hydrogen, which then combines with nitrogen from the air to produce ammonia – the building block of nitrogen fertilizers.

When natural gas prices surge, fertilizer production costs increase dramatically, as gas can represent up to 80% of the production costs for nitrogen fertilizers. This direct relationship makes fertilizer plants particularly vulnerable to gas price volatility.

The Chain of Events: Europe's Energy Market Transformation

The current situation stems from a series of significant changes in Europe's energy landscape:

Europe took the decisive step of sanctioning gas imports from Russia altogether, forcing a dramatic restructuring of its energy supply chains. This led to a rushed transition toward liquefied natural gas (LNG) from distant suppliers like the United States and Qatar. However, LNG proves significantly more expensive than pipeline gas due to the complex processes of liquefaction, oceanic transport, storage and regasification.

Germany's decision to accelerate the dismantling of its nuclear power plants set an early precedent for increased gas dependency in Europe's largest economy. This shift put additional pressure on the continent's gas supplies and grid stability.

The situation intensified when the Baltic states decided to cut
themselves off from the Russian power grid on 9 February 2025, leading to significant spikes in regional electricity prices. This was preceded by Ukraine's decision to halt gas transit through its territory on 1 January 2025, which had been a crucial pipeline route for Russian gas reaching European markets.

New U.K. Tax Rates Are Hammering North Sea Oil And Gas Drilling

In the UK, the situation intensified in October when the UK government raised the Energy Profits Levy (EPL), commonly known as the windfall tax, from 35% to 38%. The United Kingdom currently imposes one of the world's highest tax burdens on offshore oil and gas production, with operators in the North Sea facing a total tax rate of 78% resulting from the combination of standard taxation and the EPL.

The policy has created a challenging environment for the UK's domestic energy production, Britain now paying the highest electricity prices in the World.

Norway's Gas Threat: A New Risk to Europe's Energy Security

Norway, a critical supplier of natural gas to Europe, has recently hinted at potential disruptions to its energy exports due to domestic and geopolitical pressures. Currently providing nearly half of Germany's gas supply, Norway has become indispensable for European energy security following the decline of Russian gas imports.

However, soaring electricity prices in Norway—six times the EU average—have sparked domestic backlash, with political parties advocating for reduced energy exports to prioritize national affordability. Additionally, technical failures, such as the January 2025 shutdown of Norway's Hammerfest LNG plant, have already tightened Europe's strained energy supply.

These developments highlight Europe’s vulnerability to disruptions in Norwegian gas flows, further exacerbating its ongoing energy crisis.

European Decarbonization Policies

Both the EU and the UK are undergoing significant transformations in their energy landscapes as part of ambitious decarbonization policies aimed at achieving net zero emissions by 2050. The EU’s European Green Deal and legally binding Climate Law, alongside the UK’s Clean Power 2030 Action Plan and Emissions Trading Scheme (ETS), have driven renewable energy adoption and reduced reliance on fossil fuels.

The measures have significantly impacted energy prices across Europe. Investments in green technologies, carbon pricing, and restrictions on fossil fuel use have increased costs for industries and households alike.

In the UK, phasing out coal power and limiting new oil and gas licenses have heightened dependency on renewables and imported energy, raising concerns about energy security.

Deindustrialization in Europe: The Impact of Surging Energy and Gas Prices

These rising costs are placing heavy financial pressure on energy-intensive industries across Europe and the UK, accelerating trends of deindustrialization, exacerbated by geopolitical tensions, net zero energy policy decisions, and the reduction of Russian gas supplies.

Energy-intensive industries, such as chemicals, steel, and aluminum, have been particularly affected, with many companies curbing production or relocating to regions with lower energy costs like the U.S. or Asia. Yara's decision to close its Hull ammonia plant is only the latest in a long list of industrial failures across Europe.

#naturalgas  #deindustrialization  #europe  #fertilizer  #ammonia  #lng #ttf

Mixed feed cracker with KBR SCORE technology has been created and its productions have been added.



#kbr  #score  #mfc  #steamcracker  #olefinplant  #yeosu  #korea  #gscaltex 

The description of the Yeosu plant of GS Caltex has been updated. 

 

#gscaltex #yeosu  #refinery  #southkorea 

July 2, 2018 | KBR SCORE™ Technology Selected for GS Caltex Grassroots Olefins Plant in South Korea
KBR, Inc. announced today that it has been awarded a contract to supply its proprietary SCORE™ Ethylene Technology to GS Caltex Corporation for a grassroots mixed feed cracker (MFC) for its project in Yeosu, South Korea.  Under the terms of the contract, KBR will provide its innovative Selective Cracking Optimum Recovery (SCORE™) technology license and basic engineering design services for a 700 KTA ethylene mixed feed cracker to be built by GS Caltex, a company owned by GS Energy and U.S. based Chevron Corp. The new plant will use naphtha, liquefied petroleum gas and refinery off-gases as its main feedstocks. It will be constructed in the South Korean southern city of Yeosu where GS Caltex's 790,000 barrels-per-day refinery is located. The project will use KBR's highly selective SC-1 furnaces for the highest yield and flexibility. (Source)

29^th Aug 2018 | GS Caltex to Build Olefin Plant in Yeosu for 2.6 Tln Won
GS Caltex said on Aug. 7 (2018) that the company decided to build an olefin production facility capable of producing 700,000 tons of ethylene per year and 500,000 tons of polyethylene annually by investing about 2 trillion won ($1.8 billion) in a 430,000-square-meter site near its second plant in Yeosu, South Jeolla Province.

11^th Nov 2022 | GS Caltex completes construction of $2 billion petrochemicals manufacturing plant.
GS Caltex completed the construction of its 2.7-trillion-won ($2 billion) petrochemicals manufacturing plant in Yeosu, South Jeolla.
The newly-built production plant, a mixed feed cracker (MFC), will mainly produce olefins such as ethylene and polyethylene. Olefins are widely used as raw materials for plastics, rubbers and chemical products.
The MFC will annually produce 750,000 tons of ethylene, 500,000 tons of polyethylene, 410,000 tons of propylene, 240,000 tons of mixed C4 raffinate and 410,000 tons of pyrolysis gasoline, according to GS Caltex.
Unlike naphtha crackers, which uses only naphtha for petrochemicals production, MFCs can use not only naphtha but other feedstock such as liquid petroleum gas and refinery off-gas, which are crude refining byproducts. The facility can also produce hydrogen using naphtha and refinery off-gas, replacing the previously-used liquefied natural gas, and therefore cut carbon emissions by 76,000 tons a year, said GS Caltex.

4^th Jul 2024 | Korea’s GS Caltex to debottleneck Yeosu cracker in Sep
The cracker will undergo a turnaround and debottlenecking from 23 September to 25 November, according to sources at the company. GS Caltex's mixed-feed cracker currently has a nameplate capacity of 750,000 t/yr of ethylene and 410,000 t/yr of propylene. Its ethylene capacity will increase by 150,000 t/yr to 900,000 t/yr after the debottlenecking process, while propylene capacity will rise by 60,000 t/yr to 470,000 t/yr.
The debottlenecking process will also raise GS Caltex's crude C4s output from the existing 250,000 t/yr to 300,000 t/yr. The company now feeds its crude C4s to a 90,000 t/yr butadiene extraction unit, a joint venture (JV) plant between GS Caltex's parent company GS Energy and fellow producer Lotte Chemical.
GS Caltex also owns two polymers units at the same site — a 500,000 t/yr high density polyethylene (HDPE) and a 180,000 t/yr polypropylene (PP) plant. The PP unit takes in propylene from GS Caltex's existing refinery fluid catalytic crackers (FCC).
The debottlenecking will raise olefins output, resulting in a surplus of 400,000 t/yr of ethylene for domestic sales and exports after supplying its HDPE plant. The propylene surplus will be 800,000 t/yr after factoring in GS Caltex's 500,000 t/yr propylene output from existing FCCs and its PP consumption.
This will also mark the first turnaround of GS Caltex's cracker since it was commissioned in 2021. GS Caltex's mixed feed cracker can take in a combination of naphtha, liquefied petroleum gas and off-gas from its FCC.

#olefinsplan  #mixedfeedcracker  #steamcracker  #yeosun  #gscaltex  #southkorea 

Grand view of Yarlung Zangbo River in Xizang | Credit: CGTN

China is advancing plans to construct a dam on the Yarlung Zangbo River (known as the Brahmaputra in India), which has raised regional concerns. The project, part of China's renewable energy development, aims to harness hydropower in Tibet. However, downstream countries like India and Bangladesh have expressed concerns over potential impacts on water flow, ecosystems, and livelihoods. China has assured that the project will consider transboundary effects and adhere to international water-sharing norms. The dam is part of China's broader strategy to boost clean energy and reduce carbon emissions, but geopolitical tensions and environmental risks remain key challenges.

As of now, specific details regarding the exact power capacity and startup date for the dam on the Yarlung Zangbo River have not been officially confirmed by Chinese authorities. However, reports suggest that the project is part of China's ambitious plans to significantly expand its hydropower capacity in Tibet, potentially generating tens of gigawatts of electricity. The Yarlung Zangbo River, with its steep gradients and high flow volume, offers substantial hydropower potential.

The project is still in the planning and feasibility study stages, and its timeline for construction and operation remains unclear. Given the scale and complexity of such a project, as well as the need for environmental and geopolitical considerations, it may take several years before construction begins and the dam becomes operational.

China has emphasized that the project will prioritize sustainable development and consider the interests of downstream countries. However, the lack of detailed information has fueled concerns among neighboring nations and environmental groups. Further updates are expected as the project progresses through planning and approval stages.


News content generated by DeepSeek A.I.

#dam  #hydroelectric  #powerplant  #china  #y arlungzangboriver #tibet  #hydropower

Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project with 1 million tonnes steam cracker begins construction, receives environmental impact assessment.

7th Sep 2024 | Source: DT New Materials, via Sohu.com

Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project

On August 30, 2024, the Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project officially began construction. The project investment is approximately 9.142 billion yuan, with downstream new materials projects totaling about 25.652 billion yuan. The project
includes construction of three process units and supporting facilities:

° One 1 million tons/year ethylene steam cracking unit
° One 500,000 tons/year gasoline hydrogenation unit
° One 620,000 tons/year aromatics extraction unit

The project is constructed and operated by Nanjing Yangzi-BASF Olefins Co., Ltd., which was newly established on October 24, 2023. The company was formed as a 50-50 joint venture between Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.


15th Nov 2023 16:25 | Petrochemical Federation Chemical New Materials Committee | via WeChat.

With a total investment of over 10.3 billion yuan, Nanjing Yangzi-BASF Olefins Co., Ltd. will build a 1 million tons/year steam cracking ethylene plant

On November 13, 2023, the Jiangsu Environmental Protection Public Network released the second public announcement of the environmental impact assessment of the light hydrocarbon comprehensive utilization project of Nanjing Yangzi BASF Olefin Co., Ltd. and put forward suggestions and opinions on the project construction content to all sectors of society.

° Construction unit: Nanjing Yangzi-Yanba Olefins Co., Ltd.
° Project name: Light hydrocarbon comprehensive utilization project
° Construction location: The project area is located in the inspection and safety area of Yangzi Petrochemical; the product tank area is located in the Henghai area of Yangzi Petrochemical; the flare is arranged in the BASF-YPC-Yunnan land.
° Project type: Greenfield project.
° Total investment: 1,030,513 million yuan, with additional environmental protection investment of 262 million yuan;
° Land area: The total land area is 43.3 hectares (33 hectares for Jianan area and 10.3 hectares for Henghai area).
° Number of employees: The labor quota for this project is 207 people.
° Project Overview: The project includes a 1 million tons/year steam cracking ethylene production unit and 4 downstream chemical units; supporting public engineering systems include raw materials, intermediate raw materials, product tank farms, air compressor stations, circulating water fields, power supply systems, flare systems, etc.; and the transformation of existing facilities of Yangzi and BASF-YPC.

It is reported that Yangzi Petrochemical's existing "refinery structure adjustment project" will be completed and put into production before this project is put into production.

After the project is put into production, the refining sector of Yangzi Petrochemical will supply raw materials for the "ethylene cracking unit of this project" and "Yangzi Petrochemical's existing 800,000-ton ethylene cracking unit."

#basf  #ypc  #lighthydrocarbon  #petrochemical  #yangzi  #ethylene  #steamcracking  #gasoline  #aromatics 

7th Sep 2024 | Source: DT New Materials, via Sohu.com

On April 7, the environmental impact assessment for the Phase III C4 Value Chain Optimization Project of BASF-YPC Company Limited was publicly announced for the first time. Previously, on May 29, 2023, the environmental impact assessment for the Phase III C2 Value Chain Expansion Project was announced. This project mainly involves the construction of a new 300,000 tons/year photovoltaic-grade EVA facility. The earlier Phase 2.8 mainly expanded the production capacity of Propionic Acid (PA), Propionaldehyde (PALD), Ethylene Amines (EEA), Ethanolamines (EOA), and Purified Ethylene Oxide (PEO), and built a new Tert-Butyl Acrylate (TBA) unit, which was commissioned in November last year.

#basf  #ypc  #c4valuechain  #yangzi  #eva  #c4  #mixedc4  #crudeC4  #raf 

24 Sep 2024: The construction preparation of the project is progressing in an orderly manner, and the general layout of the construction, construction infrastructure planning, and standardized construction site construction have been completed. The site leveling of Changling North New District has been completed by about 75% , and it is planned to meet the conditions for handover by the end of October 2024. The site clearing and earthwork transportation of the refinery supporting renovation project site are currently being organized. The site leveling of Hunan Petrochemical District 2 has been started, and it is planned to meet the conditions for handover by the end of this year; the construction of three supporting first-class highways related to the project has started. Credit

Sinopec Hunan Petrochemical (Yueyang) ethylene refining and chemical integration project

12 Jul 2024, Sinopec Yueyang ethylene refining and chemical integration project starts trial operation

Recently, with the rise and fall of the 67-ton tamping hammer, Sinopec Yueyang Region (Hunan Petrochemical) 1 million tons/year ethylene refining and chemical integration project started the trial tamping in the Changling North main plant area.

Hunan Petrochemical's 1 million tons/year ethylene refining and chemical integration project is located in Yueyang Green Chemical High-tech Industrial Development Zone and started construction on January 3 this year.

19 Sep 2024, Total investment of 35.68 billion yuan! This million-ton ethylene refining and chemical integration project has made new progress

Hunan Petrochemical's 1 million tons/year ethylene refining project is being accelerated, with a total investment of 35.68 billion yuan and an estimated output value of over 100 billion yuan, which will drive downstream investment of over 150 billion yuan. The project is located in Yueyang Green Chemical High-tech Zone and has completed a number of construction preparations and safety management planning.

◾️ Project name: Sinopec Yueyang 1 million tons/year ethylene refining and chemical integration project

◾️ Project type: Greenfield Construction Project

◾️ Project location: Hunan Yueyang Green Chemical High-tech Industrial Development Zone. This project is distributed in the Changling and Baling areas of the park.
▪️ The Changling section is located in the northeast of the Changling area of the park, referred to as the Xinchang New District, with a land area of 201.05 hectares, all of which are newly acquired land.
▪️ The Baling section is located on the south side of the Baling's refining department, with a total land area of approximately 46.4 hectares, of which 27.26 hectares are newly acquired land; the expansion of the cogeneration unit is located in the thermal power department, with a land area of approximately 19.14 hectares, and does not involve additional land acquisition.

In addition, the off-site project covers an area of 90.57 hectares, involving the acquisition of 25.4 hectares of new land and the use of 65.17 hectares of existing land.

Construction content: This project will build:

◾️ a new 1 million tons/year ethylene unit

◾️ a total of 14 downstream units, including:
▪️ an ethylene unit,
▪️ an EVA unit,
▪️ an HDPE unit,
▪️ an LLDPE unit,
▪️ an aromatics-to-benzene unit,
▪️ a butadiene extraction unit,
▪️ an MTBE/butene-1 unit,
▪️ a pyrolysis gasoline hydrogenation unit,
▪️ an aromatics extraction unit,
▪️ a styrene extraction unit,
▪️ a C5 separation unit,
▪️ a CHPPO unit,
▪️ a phenol/acetone unit,
▪️ a bisphenol A unit.

At the same time, necessary storage and transportation projects, public works, auxiliary facilities and off-site projects will be constructed.

#sinopec  #hunanpetrochemical  #hunan  #yueyang  #ethylene  #refining  #chemicalintegration  #china  #steamcracker

Changling Refinery information details have been updated and its crude oil processing capacity adjusted to 8 million tonnes per year.


#hunanpetrochemical  #sinopec  #hunan  #yueyang  #changling  #refinery  #china  #crudeoil  #refining  

Hunan Baling complex has been assigned to Sinopec Hunan Petrochemical Company and information details updated.


#hunanpetrochemical  #sinopec  #baling  #china  #yueyang  #hunan 

Shaanxi Beiyuan Chemical Group Co. Chemical Branch (Jinyuan Chemical) and Shenmu site have been created.


#beiyuangroup  #beiyuanchemical  #jinyuanchemical  #yulin  #shaanxi

#shaanxi

Fuyou Technology, from top left to bottom right: a corner of the factory, office building, satellite view, 170 kta coal tar full fraction hydrogenation unit, 500 kta coal tar full fraction hydrogenation unit, 80 kta light hydrocarbon fraction separation unit.

Fuyou Technology has developed combined coal-based process technologies such as coal pyrolysis, hydrogenation of medium and low temperature coal tar full fractions to produce more intermediate distillate oil, efficient impurity removal and aromatics saturation of naphtha to produce cycloalkane chemicals. The company is the leading producer of methylcyclohexane, light white oil, transformer oil and aerospace special oils obtained from medium and low temperature coal tar.

Low-grade coal, which accounts for about 55% of the total coal resources in Shaanxi, Inner Mongolia, Xinjiang, has low carbon content and calorific value, and relatively high tar yield and hydrogen and oxygen content. The characteristics of the feedstock is conducive to efficient transformation and utilization through medium and low temperature pyrolysis.

Fuyou Technology's pyrolysis process product is separated into three substances: gas (coal gas), liquid (coal tar), and solid (semi-coke), and further converted to obtain clean fuels such as oil, gas, and electricity, as well as high value-added chemical products. The company has built and put into use China's first 170,000 tons/year medium and low temperature coal tar full-fraction hydrogenation high-yield intermediate distillate oil industrial demonstration unit and a 500,000 tons/year coal tar full-fraction hydrogenation production cycloalkane oil unit, promoting the high-end transformation of coal tar and realizing the transformation of coal from a single fuel to diversified products.

The naphtha separation unit now produces 80,000 tpy naphtha, which is converted mainly into cyclohexane, methylcyclohexane, and dimethylcyclohexane. Fuyou Technology is the largest methylcyclohexane producer in China, with an annual output of 30,000 tonnes, accounting for 85% of the market share. The company has also laid out industrial chain extension projects to produce high value-added products such as ethylcyclohexane.

Li Zhuoran, 10 Oct 2024, Focus on the high-quality development of Shaanxi's energy and chemical industry, West China Network.

#coal  #coalgasification  #coaltar  #cycloalcane  #naphtha  #distillate  #pyrolysis  #fuyou  #fuyoutechnology  #shaanxi  #yulin  #china 

Shenmu Fuyou Energy Technology Co., Ltd. and production site in Yulin City, Shaanxi Province, have been added. It is a coal to chemical producer and a subsidiary of Shaanxi Coal Group.


#fuyoutechnology  #shaanxi  #yulin  #china  #coaltochemical  #pyrolysis  #coaltar  #shaanxicoalgroup 

Shaanxi Yanchang Coal Yulin Energy and Chemical and Jingbian production site have been added.


#jingbian  #shaanxi  #yulin  #china  #chinacoal  #yulinenergy  #yulinenergychemical  #mto  #methanoltoolefins  #pollyethylene  #polypropylene  #methanol  #fdd  #catalyticcracking 

Shaanxi Yulin Energy Group Co., Ltd. has been added.
 

#shaanxi #yulin  #yulinenergygroup  #china  #coal  #coaltochemical 

Shaanxi Yulin Energy Chemical New Materials Co., Ltd. and manufacturing site created. Project is co-located with Yulin Energy Fine Chemicals Co., Ltd.

Coal-to-chemical site is in a project phase.


#shaanxi  #yulinenergy  #newmaterials  #coaltochemical  #epoxyresin  #chloralkali
 

Shaanxi Coal Group Yulin Chemical and the two-phases of the coal-to-chemical projects in Shenmu have been added.

#shaanicoalgroup  #yulinchemical  #coaltochemical  #coaltoolefins  #coaltoaromatics  #china 

Yulin Energy Fine Chemicals Co., Ltd. and manufacturing site created. Details about actual activities of the site are not clear.

Project is co-located with Shaanxi Yulin Energy Chemical New Materials Co., Ltd.

#yulinenergy  #china  #shaanxi  #coaltochemical  #finechemicals 

Styrene plant with production capacity has been added.

#shandong #heze  #yuhuanchemical  #styrene  #ruihua  #china 

Shandong Heze Yuhuang Chemical Co., Ltd. has been added.

#shandong #heze  #china  #yuhuangchemicals 

Yasref

#Yasref is jointly evaluating biofuels and plastic co-processing with Saudi Aramco (R&D) and SABIC for future refined products. This comes In liaison with our commitment to sustainability and decarbonization. Yasref remains steadfast to contribute to a #greenerfuture and economic growth.