Global petrochemical firms shape up in oversupply crisis
By Mohi Narayan and Joyce Lee
NEW DELHI, Aug 9 (Reuters) -Petrochemical producers in Europe and Asia are in survival mode as years of capacity build-up in top market China and high energy costs in Europe have depressed margins for three consecutive years, forcing firms to consolidate.
Here's a look at consolidation moves by major producers sumitacross the globe.
EXXON MOBIL XOM.N
ExxonMobil Chemical France announced in April it would shut down the steam cracker and close chemical production at Gravenchon this year, adding that the site has lost more than 500 million euros since 2018 and remains uncompetitive.
FORMOSA PETROCHEMICAL 6505.TW
The Taiwanese petrochemical giant has been operating only one out its three naphtha crackers for a year. The company has kept the other two crackers offline due to poor demand and unhealthy margins, spokesperson KY Lin said.
The company is not looking to make any new investments in the near term due to challenging market conditions, a company official said.
INEOS [RIC:RIC:E.UL]
The UK-based company acquired TotalEnergies' 50% share of the Naphtachimie, Appryl, Gexaro businesses in April, making Ineos the sole owner of the units at Lavera in southern France.
The deal includes a 720,000 metric ton per year (tpy) steam cracker, 270,000 tpy of aromatics and 300,000 tpy of polypropylene production capacity.
LYONDELLBASELL LYB.N
The U.S.-based producer of plastics raw materials said in May it has launched a strategic review of the European assets of two of its business units. The company sold its Bayport, Texas ethylene oxide unit and associated business to chemical maker INEOS Oxide for $700 million in May.
MITSUI CHEMICALS 4183.T
The Japanese firm announced in April its decision to close the phenol plant at its Ichihara Works by fiscal year 2026, it said in a statement.
In October 2024, it will shut its polyethylene terephthalate (PET) plant at its Iwakuni-Ohtake Works. In Chiba, the company has reached an agreement with Idemitsu Kosan to consider aggregating ethylene equipment, it said in annual results released in May.
It plans to downsize Omuta Work's toluene diisocyanate (TDI) plant by fiscal year 2025 and is considering shutting Anegasaki plant by 2027.
PENGERANG PETROCHEMICAL CO (PREFCHEM)
The 50-50 joint venture between Petronas and Saudi Aramco 2222.SE has kept its 1.2 million tons per year naphtha cracker shut since it was closed for maintenance earlier this year. The office of the chief executive officer said they have no update on the restart of the cracker.
SAUDI BASIC INDUSTRIES CORP (SABIC) 2010.SE
SABIC, 70% owned by oil giant Aramco 2223.SE, announced in April plans to permanently shut the No. 3 naphtha-fed cracker at its plant in Geleen, the Netherlands after routine maintenance at the site.
SHELL SHEL.L
The European energy major in May sold its refinery and petrochemical assets in Singapore, Asia's main oil hub, to a joint venture between Indonesian chemicals firm Chandra Asri and Swiss miner and commodities trader Glencore GLEN.L.
The sale is part of Shell CEO Wael Sawan's plan to reduce the company's carbon footprint and focus its operations on the most profitable businesses.
SUMITOMO CHEMICAL 4005.T
Saudi Aramco 2223.SE has agreed to buy from Japan's Sumitomo Chemical a 22.5% stake in their petrochemical joint venture Petro Rabigh 2380.SE for $702 million, the companies said in a joint statement on Wednesday.
The deal shrinks Sumitomo Chemical's stake in the joint venture to 15% while increasing Aramco's share to 60%.
Reporting by Mohi Narayan, Joyce Lee and Haridas; Editing by Florence Tan and Sonali Paul
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.