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Mitsui Chemicals shuts Chiba cracker on technical issue

  • : Oil products
  • 24/08/15

Japanese petrochemical producer Mitsui Chemicals shut its Chiba-based cracker this week because of a technical issue, a few Japan-based naphtha traders said, without identifying what happened.

The restart schedule for the 612,000 t/yr ethylene cracker in Chiba isn't known yet, but it could take about a week, market participants said.

The Japanese firm on 2 August said that it was extending the shutdown of its Osaka ethylene cracker for another 2-3 months. Mitsui Chemicals halted the naphtha-fed 455,000 t/yr Osaka cracker in west Japan's Osaka prefecture from the start of June for planned maintenance, initially aiming to finish it at the end of July. But the company identified a technical issue on 23 July with the steam supply system when it was restarting the cracker after completing the turnaround.

A series of technical issues have forced Japanese cracker operators to shut their units or delay restarts. Idemitsu shut its 623,000 t/yr Tokuyama cracker on 15 July because of a gas leak. Maruzen Petrochemical also delayed the restart of its 525,000 t/yr Chiba cracker, which it shut on 15 May and was supposed to restart by mid-July. The shutdown was extended to the end of July, according to market participants.


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Unplanned shutdown at Czech Litvinov refinery


24/08/15
24/08/15

Unplanned shutdown at Czech Litvinov refinery

London, 15 August (Argus) — The 108,000 b/d Litvinov refinery in the Czech Republic was shut down on 15 August following an energy supply issue, according to market sources. The refinery will be down for at least five days, the sources said. The refinery's operator, Orlen Unipetrol, has yet to respond to a request for comment. Litvinov receives Russian Urals crude through the Druzhba pipeline system and produces multiple refined products and petrochemicals including transport fuels and bitumen. The shutdown will significantly disrupt transport fuel supply in the Czech Republic, requiring increased imports from neighbouring countries. On 29 July, Orlen Unipetrol declared force majeure on petrochemical products polyethylene and polypropylene because of a cooling system malfunction at Litvinov. The company said an outage at a cooling water system supplying its ethylene cracker had resulted in an emergency shutdown of the unit. The company subsequently lifted the force majeure on 7 August as the cracker outage was short-lived. It is unclear if today's refinery shutdown will have any impact on the company's petrochemical operations. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK to exclude SAF from China biodiesel investigation


24/08/15
24/08/15

UK to exclude SAF from China biodiesel investigation

London, 15 August (Argus) — The UK has proposed revising the scope of its an anti-dumping investigation into China-origin biodiesel and hydrotreated vegetable oil (HVO) to explicitly exclude sustainable aviation fuel (SAF). The investigation, which was launched on 5 June, was never intended to include SAF, but the UK's Trade Remedies Authority (TRA) subsequently asked interested parties for feedback on whether it should be included after it was brought to its attention that SAF could be considered to fit the description in the initial notice. That notice stated that the inquiry would cover "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin, in pure form or as included in a blend" in the period from 1 April 2023 to 31 March 2024. The TRA has now proposed amending the description to explicitly exclude "sustainable aviation fuel, in pure form or as included in a blend". But there will be no change to the commodity codes as a result of the revision. The written scope of the investigation is the primary focus at this stage, with the commodity codes serving merely as reference points and not binding criteria, according to the TRA. SAF should be excluded from the investigation because it has distinct production processes and raw materials compared to HVO and fatty acid methyl esters (Fame), limited interchangeability with road transport fuels, a higher selling price and a different regulatory framework under the UK's SAF mandate starting in January 2025 , the TRA said. SAF also benefits from a tax rebate for aviation use, making it economically unviable for road transport use, and has a different customer base, it said. Interested parties have until 21 August to submit any comments, after which the TRA will make a final decision on the scope of the investigation. The investigation follows an application by the Renewable Transport Fuel Association (RTFA) on behalf of UK biofuels producers Argent Energy and Olleco, which alleged that exports from China to the UK were below market value, adversely affecting the UK biofuels industry. The RTFA advocated for including SAF, HVO and Fame in the investigation, citing their potential interchangeability and the minimal amount of investment needed to increase production of HVO and SAF in the UK. But Chinese biofuels producer Ecoceres argued that SAF should be excluded, arguing that it is not interchangeable with Fame and there is limited supply-side substitutability. Ecoceres also pointed out that the UK did not have a domestic SAF industry during the period under investigation, which means that imports from China could not have caused injury. The airline group IAG also supported excluding SAF, emphasising the aviation industry's reliance on imports due to limited global production capacity. The UK government officially confirmed last month that subject to parliamentary approval it will introduce a SAF mandate starting next year. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply", the government said. Under the mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

В аэропортах Центральной Азии подорожал авиакеросин


24/08/15
24/08/15

В аэропортах Центральной Азии подорожал авиакеросин

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Recession pressures Argentina asphalt demand


24/08/14
24/08/14

Recession pressures Argentina asphalt demand

Sao Paulo, 14 August (Argus) — Demand for asphalt in Argentina remained weak in the first half of 2024 as high inflation and austerity cuts plagued the country. Asphalt sales in Argentina fell by almost 60pc in the first half from a year earlier, according to energy ministry data, driven mainly by economic uncertainty tied to spending cuts promoted by President Javier Milei. At the end of last year Milei implemented nearly 35pc in government spending cuts with the intention of reducing the country's persistent deficit. Part of the strategy included halting public works projects for a year, which has cut construction sector GDP by almost 20pc in the first quarter of 2024. Containing the country's deficits is a strategy to curb Argentina's persistent inflation, which registered an annual rate of 271.5pc in June — almost three times the figure recorded in the same month last year. Accelerated inflation caused the Argentine peso to quickly lose value, making the purchase of dollars the only effective means of doing business abroad. The country's current official exchange rate is Ps940.78 to $1, making the price of importing US Gulf asphalt approximately 367,000 pesos/st. Market participants have also reported little or no chance of purchasing on credit, which has made asphalt imports difficult. Imports decreased by 80pc in the first half of the year, according to official data. Once Argentina gets its inflation under control, asphalt imports to the country should increase as demand returns. Argentina's increasing reliance on its Vaca Muerta shale has resulted in reduced asphalt production because of the lighter quality of crude from the formation, leading to higher imports in recent years. Prior to the recession, asphalt imports were on the rise and reached nearly 200,000 metric tonnes (t) in 2022, according to data from Kpler. By Julio Viana Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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