Latest news with #propylene
Reuters
21-07-2025
- Business
- Reuters
Europe's chemical industry seeks a lifeboat to stay in business
MILAN/NEW DELHI/HOUSTON, July 21 (Reuters) - Europe's petrochemical industry is unravelling under a wave of plant closures after years of losses and a rapid expansion of global capacity led by China. High production costs and ageing plants have left European producers struggling, making the region increasingly dependent on imports of primary chemicals such as ethylene and propylene, the building blocks for plastics, pharmaceuticals and countless industrial goods. "While the rest of the world is building over 20 new crackers, Europe is sleepwalking into industrial decline," Jim Ratcliffe, founder of INEOS said during a recent event, referring to a unit in petrochemical plants. The billionaire made his money buying up petrochemical plants from BP (BP.L), opens new tab and others, and along with other industry leaders has criticised a lack of political action. The European Commission responded this month with a pledge to support domestic production of chemicals deemed strategic for its industries, such as ethylene and propylene. It plans to expand state aid to modernise plants and require public tenders give preference to goods made in Europe - similar to the EU's 2023 legislation for metals and minerals. But the move may be too late to reverse the damage. "It's like being on the Titanic — you can't stay in denial. You must go and find a lifeboat," said Giuseppe Ricci, head of industrial transformation at Italian energy group Eni. Eni's ( opens new tab chemical business Versalis accumulated over 3 billion euros ($3.5 billion) in losses in the last five years, Ricci said, as the firm shuts down Italy's last two steam crackers and invests 2 billion euros in bio-refineries and chemical recycling. Other global groups Dow (DOW.N), opens new tab, ExxonMobil (XOM.N), opens new tab, TotalEnergies ( opens new tab, and Shell (SHEL.L), opens new tab are also closing or reviewing their European chemical assets. Most of the planned closures target crackers - a unit that turns hydrocarbons into ethylene, propylene or other primary chemical materials. A document issued by eight EU countries on petrochemicals in March said that 50,000 jobs could be at risk due to potential closures of more crackers in Europe by 2035. The EU's plants are mainly small and mid-sized and have been running at an average utilisation rate below 80% - a level considered uneconomical. Up to 40% of the EU's ethylene capacity — which totals 24.5 million metric tons — is at high or medium risk of closure, including shutdowns announced since late 2024, according to consultancy Wood Mackenzie. "The proportion of European crackers at risk is much higher than in other regions," said Robert Gilfillan, head of plastics and recycling markets at Wood Mackenzie. While older European plants use naphtha as a raw material, the United States and the Middle East use cheaper feedstocks like ethane — a by-product of shale gas. North America's ethylene capacity will grow to 58 million metric tons by 2030 from 54 million currently, according to consulting firm ADI Analytics. China, meanwhile, will add 6.5% to its ethylene capacity every year between 2025 and 2030, when it will produce nearly 87 million metric tons of ethylene annually, China National Chemical Information Centre CEO Huang Yinguo said in May. That's more than triple the EU's current capacity. Chinese producers are also building outposts in Southeast Asia to export to Europe and North America to bypass carbon taxes and Western tariffs on China-made goods. Japanese and South Korean firms, unable to compete, have kept utilization rates low since 2023, the countries' petrochemical industry bodies said in reports in May. European policymakers now face a stark choice: intervene decisively or watch the continent's chemical backbone erode. In their March document, countries including France, Italy and Spain called for a "Critical Chemicals Act", as latest EU data shows the region was a net importer of ethylene and propylene each year in the period 2019-2023. EU Industry Commissioner Stéphane Séjourné said Brussels will identify strategic supplies and production sites. "First and foremost, this is about sovereignty — keeping our steam crackers," he told reporters this month. But sovereignty comes at a cost. Most European crackers are over 40 years old, compared to just 11 years in China, according to Citi analyst Sebastian Satz. And ethylene production in Europe using naphtha costs $800 a metric ton, versus less than $400 a metric ton in the U.S. if ethane is used, and around $200 a metric ton in the Middle East with ethane, Eni said in a presentation published in March. Some companies are betting big on survival. INEOS, which operates one of Europe's most advanced petrochemical facilities in Cologne, is building a 4 billion euro ethane cracker in Antwerp — the first new cracker in Europe in roughly 30 years, with production capacity of 1.45 million metric tons a year of ethylene. The plant, due online in 2026, aims to rival Chinese production and meet local demand with a lower carbon footprint. In the Middle East, consolidation is creating new global giants. A $60 billion merger between Abu Dhabi National Oil Company and Austria's OMV ( opens new tab will form Borouge Group, the world's fourth-largest polyolefins producer. The company plans to export polymers to Europe, competing directly with U.S. and Asian firms. Analysts say Europe's petrochemical production won't disappear entirely but will become the domain of a few dominant players. "Only major European companies with the market share to set competitive prices will continue to produce ethylene," said Enzo Baglieri, professor of operations and technology management at SDA Bocconi School of Management in Milan. ($1 = 0.8604 euros)
Zawya
14-07-2025
- Business
- Zawya
Saudi's Advanced starts operations at Jubail petchem plants
Advanced Petrochemical Co. has completed construction and commenced operations at its propane dehydrogenation (propylene) plant in Jubail Industrial City, which has a nameplate production capacity of 843,000 tonnes. Operations also started at two polypropylene (PP) Plants, with a combined nameplate capacity of 800,000 tonnes annually, the petrochemical major said in a statement to the Saudi stock exchange on Monday. The plants are operated by Advanced Polyolefins Industry Company, a joint venture, 85 per cent owned by Advanced Global Investment Co. (AGIC) and 15 per cent by Singapore-based SK Gas Petrochemical. The cost of the complex, which includes three plants for processing propane gas, propylene, and isopropanol in Jubail Industrial City, is estimated at 7 billion Saudi riyals ($1.87 billion). In 2022, Advanced Polyolefins secured financing of SAR 6.1 billion for the project. (Editing by Anoop Menon) (
Argaam
14-07-2025
- Business
- Argaam
Advanced announces start-up of propylene, PP plants in Jubail
Advanced Petrochemical Co. completed the construction and started operations at Propane Dehydrogenation plant (Propylene Plant), which has a designed production capacity of 843,000 tons of propylene per year. The petrochemicals producer also started operations at two Polypropylene (PP) Plants, with a combined designed capacity of 800,000 tons annually, according to a statement to Tadawul. The plants, operated through Advanced Polyolefins Industry Co. (Advanced Polyolefins), are located in Jubail Industrial City. Advanced noted that the financial impact of Advanced Polyolefins will be shown in its consolidated financial statements starting from the third quarter of 2025. Advanced Polyolefins is a joint venture, with 85% owned by Advanced Global Investment Co. (AGIC) and 15% by SK Gas Petrochemical Pte. Ltd. (SKGP). According to data compiled by Argaam, Advanced Polyolefins secured financing from several banks in 2022 totaling SAR 6.1 billion to establish a complex in Jubail Industrial City. The complex includes three plants for processing propane gas, propylene, and isopropanol, with a total project cost estimated at approximately SAR 7.05 billion.
Yahoo
09-06-2025
- Business
- Yahoo
Propylene Industry Outlook Report 2025: Capacity to Grow by More than 30% to 2030 - Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants
Global propylene capacity is expected to surge by over 30% from 2024 to 2030, with Asia leading the expansion due to high demand across sectors like construction and packaging. China and India are pivotal, adding 32.79 million tonnes annually by 2030. Explore planned enhancements and capital expenditure trends. Dublin, June 09, 2025 (GLOBE NEWSWIRE) -- The "Propylene Industry Outlook to 2030 - Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants" report has been added to propylene capacity is poised to grow considerably by more than 30% during 2024 to 2030. Asia is set to dominate this growth due to heavy demand for propylene and its derivative chemicals from various sectors such as construction, packaging, fuel, and refrigeration. A total capacity of 32.79 million tonnes per annum (mtpa) is likely to be added by 2030 in Asia, with China and India being central to the capacity expansion in the Global propylene capacity outlook by region from 2025 to 2030 Propylene planned and announced capacity additions by region, key countries, and key companies Planned and announced capital expenditure outlook by region, and key countries Key details of the propylene plants globally (capacity from 2020 to 2030) Reasons to Buy Obtain the most up-to-date information available on all active, planned, and announced propylene plants globally Identify opportunities in the global propylene industry with the help of upcoming projects and capital expenditure outlook Facilitate decision-making based on strong historical and outlook of propylene capacity data Assess key project data of your peers and competitors Key Topics Covered: 01. Global Propylene Capacity and Capital Expenditure Outlook by Region Key Highlights Global Propylene Capacity Contribution by Region Global Propylene Industry, Capacity Contributions by Key Feedstocks Global Propylene Industry, Feedstock Capacity Contributions by Region Global Planned and Announced Capacity Propylene Additions Global Capex Spending on Planned and Announced Propylene Plants by Region New Projects Announcements Global Top 10 Planned and Announced Propylene Plants 02. Global Propylene Capacity and Capital Expenditure Outlook by Country Global Propylene Capacity Contributions by Key Countries, 2020-2030 Global Propylene Capacity Contribution by Key Countries, 2024 Propylene Capacity Additions from Planned and Announced Plants by Key Countries Propylene Capex Spending on Planned and Announced Projects by Key Countries 03. Global Propylene Capacity and Capital Expenditure Outlook by Company Global Propylene Capacity Contribution by Key Companies, 2024 Global Propylene Capacity Additions from Planned and Announced Projects by Top 10 Companies 04. Propylene Capacity and Capex Outlook in Asia Propylene Capacity in Asia by Key Countries, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in Asia 05. Propylene Capacity Outlook in the Middle East Propylene Capacity in the Middle East by Key Countries, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in the Middle East 06. Propylene Capacity Outlook in Africa Propylene Capacity in Africa by Country, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in Africa 07. Propylene Capacity Outlook in FSU Propylene Capacity in FSU by Country, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in FSU by Country 08. Propylene Capacity Outlook in North America Propylene Capacity in North America by Country, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in North America 09. Propylene Capacity Outlook in Europe Propylene Capacity in Europe by Key Countries, 2020-2030 Annual Capital Expenditure Outlook for Planned and Announced Propylene Projects in FSU by Country 10. Propylene Capacity Outlook in Other Regions Propylene Capacity in South America by Country, 2020-2030 Propylene Capacity in Oceania by Country, 2020-2030 11. Appendix For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
02-06-2025
- Business
- The Hindu
Good news very soon on India-Oman trade agreement: Piyush Goyal
Commerce and Industry Minister Piyush Goyal has said that negotiations between India and Oman for the proposed free trade agreement (FTA) are progressing, and some "good news" may come "very soon" on that. The negotiations received a much-needed impetus after the visit of Mr. Goyal to Muscat in January this year. The talks for the agreement, officially dubbed as the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023. "I think you will see some good news very soon on the Oman FTA," the Minister told reporters in Paris when asked whether the FTA talks with Oman can be concluded this year. Mr. Goyal is in Paris on an official visit to hold talks with French leaders and businesses to boost trade and investments. He will also attend a mini-ministerial meeting of the World Trade Organisation (WTO) on June 3. In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments. Oman is the third-largest export destination among the Gulf Cooperation Council (GCC) countries for India. India already has a similar agreement with another GCC member UAE which came into effect in May 2022. The bilateral trade was about $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25. India's key imports are petroleum products and urea. These account for over 70% of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel. Talking about such agreements, the Minister said these FTAs not just promote trade in goods and services, but also strengthen supply chain, bring confidence in businesses of both sides about stable polices, and predictability. "So in a way, it's a big message when you conclude an FTA," he added. When asked if India could see further domestic reforms as a result of these agreements, the Minister said FTA stands on their own footing and have no relationship to "our own" domestic efforts to make the country more attractive. "These agreements are more towards opening markets on both sides which lead to greater competitiveness, improved productivity and efficiency in all processes," he said. Mr. Goyal said the National Manufacturing Mission, announced in the Budget, may come up soon. It will further bring an "orderly shape" to how States and the Centre work together in the direction of promoting manufacturing in India, he added.
