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Dow to idle one cracker at Terneuzen

  • : LPG, Petrochemicals
  • 25/01/24

Dow is postponing a planned turnaround at one of its three steam crackers in Terneuzen, the Netherlands, "due to continued weakened market conditions in the region". This will result in the cracker being idled when its legal inspection dates are reached, understood to be within the next few months.

"The decision enables Dow to both navigate soft market conditions in the region and reduce expenditures in 2025, while still enabling the company to safely, reliably, and profitably meet contracted customer commitments", Dow said.

Local reports citing workers suggest that the unit in question is the number 3 cracker at Terneuzen. This was expected to have maintenance in 2023, but that was previously postponed to this year and has now been postponed indefinitely.

Cracker 3 is the newest unit at Terneuzen and in common with crackers 1 and 2 has a high degree of flexibility for LPG feedstocks, which Dow has repeatedly cited has supported healthy operating margins relative to naphtha-based crackers. But the site is long on cracker products and placing volumes in the market has been challenging because of overall weak demand in Europe. The length was exacerbated by the closure of local derivatives such as ethylbenzene-styrene production operated by Trinseo and cumene production operated by Olin in 2023.

It has been unclear how hard the three crackers at Terneuzen have been running in the past two years. Dow's internal and contractual demand may be supported by the remaining two crackers. There is no timeline on any restart, but it is likely to be dependent on demand and investment to complete required maintenance.

Terneuzen 3 has nameplate capacities of 600,000 t/yr ethylene and 300,000 t/yr propylene. The other operating crackers have a combined capacity of 1,200,000 t/yr feeding local PE production of 880,000 t/yr. Propylene nameplate capacity of these crackers is 590,000 t/yr, which is shipped to Dow and other customers via vessel or in the northwest European pipeline system.


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25/02/06

BP puts Gelsenkirchen refinery in Germany up for sale

BP puts Gelsenkirchen refinery in Germany up for sale

Hamburg, 6 February (Argus) — BP said today it will begin seeking buyers for its Ruhr Oel business, which includes the 257,800 b/d Gelsenkirchen refinery and an associated petrochemicals plant in western Germany. The UK company hopes to reach a sales agreement in 2025, although the exact timing will depend on approval of local competition authorities, it said. The sale should have no affect on short-term supply of oil products in western Germany as the refinery will keep up normal production in the interim, the company said in a press release. BP had said it planned to downsize Gelsenkirchen , shutting four unitsand reducing its crude capacity by a third. The shutdown of the affected units is scheduled for the end of the 2025 and will go ahead, BP told Argus . Potential buyers are not yet known. BP is the latest in a series of companies looking to sell or reduce their refinery shares in Germany. Shell is still searching for a buyer for its 37.5pc stake in the PCK consortium's 226,000 b/d Schwedt refinery, in eastern Germany, after a sale to UK energy firm Prax fell through in late December. Shell was also in discussions to sell its 32.25pc stake in the Miro's consortium's 310,000 b/d Karlsruhe refinery to czech company MERO CR in 2024, which did not result in a sales agreement. Shell is further on track to shut down the Wesseling plant at its 334,000 b/d Rhineland refinery complex. Russian state-controlled Rosneft intends to sell its German subsidiaries, Rosneft Deutschland and RN Refining & Marketing, which are held under the trusteeship of the Federal Network Agency. These assets include a controlling stake in the PCK joint venture, a 24pc share in the Miro's consortium and a 28.6pc share in the Bayernoil joint venture, operator of the 207,000 b/d Neustadt-Vohburg refinery in Bavaria. ExxonMobil announced its intention to sell its 25pc stake in the Karlsruhe refinery to Austria's Alcmene, a subsidiary of Estonia's Liwathon, in 2023. The sale fell through in July 2024 after a German court upheld a ruling banning the company from selling its stakes in the Miro consortium following an injunction filed by Shell. BP also operates the 95,000 b/d Lingen refinery in western Germany. This is unaffected by the sale plan for Gelsenkirchen. By Natalie Müller Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Beach cuts FY24-25 oil, gas output target


25/02/06
25/02/06

Australia's Beach cuts FY24-25 oil, gas output target

Sydney, 6 February (Argus) — Australian independent Beach Energy has narrowed its oil and gas output guidance for the year to 30 June 2025, given delays in bringing the Western Australian (WA) 250 TJ/d Waitsia gas plant on line. Beach will produce 18.5mn-20.5mn bl of oil equivalent/d (boe/d) in 2024-25, it said in its half-year results to 31 December. It revised the top end of its previous forecast of 17.5mn-21.5mn boe down because of delays at Waitsia, which is operated by joint venture partner Japanese trading house Mitsui. Beach has maintained its guidance for first sales gas at Waitsia in April-June. The Adelaide-based firm last month reported its output at 10.2mn boe in July-December 2024, 15pc higher on the year, leading Beach to raise the bottom end of its guidance. The five Waitsia LNG swap cargoes that Beach has executed to date have brought forward revenue for the firm, which reported A$139mn ($87.1mn) from the two shipped in July-December 2024. A fifth cargo was lifted from Australian independent Woodside Energy's 14.4mn t/yr North West Shelf (NWS) LNG terminal in January, while a possible sixth may occur before the end of June. "We have opportunities for additional swaps in the market and we're looking very closely… I'm hoping to get another [cargo] out before the half-year," chief executive Brett Woods said on 6 February. About 35pc of the gas exported via swap cargoes to date were from Beach's own 20 TJ/d (534,000 m³/d) Xyris gas plant, meaning it will not need to be swapped back, Woods said. Beach expects 8-10 cargoes/yr of Waitsia gas to be shipped until 2028, with scope to further extend the project's LNG exports following the WA government's changes to onshore gas export rules. Waitsia partners hold a gas processing agreement with the NWS JV running until the end of 2028. Beach will start its Offshore Gas Victoria programme in 2025 as part of its ambition to become a major domestic gas supplier. This includes drilling the Hercules gas prospect in Victoria state's offshore Otway basin in April-June, described as a "large scale opportunity" with prospective reserves of 100bn ft³ (280mn m³). No change was made to Beach's 2024-25 capital expenditure guidance of A$700mn-$800mn. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India’s LPG use could contract after record 2024


25/02/04
25/02/04

India’s LPG use could contract after record 2024

Consumption is expected to fall as more households take up piped natural gas and LPG subsidies are unwound, writes Rituparna Ghosh Mumbai, 4 February (Argus) — India's LPG consumption may contract this year after reaching another record high in 2024 unless new demand centres for use as a clean cooking fuel emerge, budget documents show and industry officials say. Urban use of LPG as a cooking fuel in India is likely to be further eroded this year by the development of piped natural gas grids while rural sales could be affected if the government decides to remove subsidies. Households account for over 90pc of India's LPG demand. India's overall LPG consumption rose to a record high of 31mn t in 2024, up by 7pc on the year, according to oil ministry data, on the back of an election year that prompted several LPG incentives from the ruling BJP party. The government's target of adding 7.5mn more low-income households under the Pradhan Mantri Ujjwala Yojana (PMUY) subsidy scheme a year ahead of schedule also supported the growth. A total of 329mn households use LPG as of 1 January, government data show. India's LPG imports increased by 13pc to a new high of 21mn t in 2024 on growing consumption and flat production of about 12.8mn t. LPG use in urban areas is expected to contract as piped natural gas (PNG) becomes increasingly available, with household connections rising by 16pc to nearly 14mn last year, according to the oil ministry. PNG for households is subsidised by the government. Delhi expects the rural sector to drive demand growth as more users switch from harmful solid biomass fuels to LPG for cooking. But households that have switched fuel often return to cheaper firewood — a government survey shows that less than half of India's rural households use LPG for cooking, with the annual cylinder refill rate stagnating at three/yr since 2022. The government also plans to reduce LPG subsidies in its latest budget for 2025-26 beginning in April. Subsidies for low-income households will fall by 28pc to 91bn rupees ($1.04bn) in the next fiscal year from Rs127bn in 2024-25. India's overall LPG subsidy declines to Rs121bn from Rs147bn. The decline in subsidies will hurt LPG demand in price-sensitive areas — nearly 129mn people in India were living in extreme poverty in 2024, according to a World Bank report. No poll pull Elections are a major demand driver for LPG in India as federal and state governments often reduce rates or offer free refills during their campaigns. State-run refiners slashed 14.2kg cylinder prices by Rs100/cylinder in August last year to Rs803/cylinder ($9.20/cylinder) in Delhi, where they have remained since. LPG subsidies of Rs300/cylinder were also extended for low-income households, which is due to expire in March. Several state elections in late 2023 announced free cylinders, boosting demand for LPG throughout 2024. But the government may now look to wind down subsidies with no critical elections to contest in the near future, as it did after the 2019 election. Increasing government repayments due to state-run refiners for lowering prices may also force it to raise cylinder prices again, analysts say. The government made no provision in its budget proposal to compensate the refiners for losses incurred in selling domestic LPG to households at below cost. The losses accrued by refiners IOC, BPCL and HPCL from LPG sales during the April-December 2024 period are estimated to be around Rs285bn combined, according to their company reports. This would equate to Rs390bn for the entire fiscal year 2024-25. The oil ministry meanwhile forecasts India's LPG consumption to grow by 4.7pc on the year to 33mn t in 2025-26. India kept 14kg LPG cylinders at Rs803 in Delhi for a 10th consecutive month for January but cut commercial 19kg cylinder rates after five straight months of hikes by Rs14.50 to Rs1,804, according to state-run refiner IOC. India LPG fundamentals Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Qatar, UAE's LNG ambitions to boost LPG output by 2030


25/02/04
25/02/04

Qatar, UAE's LNG ambitions to boost LPG output by 2030

LPG imports to Asia from the two countries are forecast to rise by around a third by 2030, writes Ieva Paldaviciute Dubai, 4 February (Argus) — LPG output from the Middle East's leading exporters Qatar and the UAE is due to rise significantly by the end of this decade, primarily driven by the development of LNG-related projects in both countries. Qatar produced around 10.7mn t of LPG in 2024, but output is likely to grow by around 75pc to 17.6mn t/yr by 2030, Argus Consulting forecasts. This will be driven by state-owned QatarEnergy's North Field expansion project that intends to gradually boost the state's LNG production capacity to 142mn t/yr by 2030, from the current 77mn t/yr. Even though geared towards boosting LNG output, the North Field expansion will simultaneously increase LPG production as it is a by-product of LNG extraction and processing. The project will be developed in three phases — 32mn t/yr North Field East (NFE), 16mn t/yr North Field South (NFS) and 16mn t/yr North Field West (NFW). The NFE phase is due to start commercial operations by mid-2025 and will yield around 4.2mn t/yr of additional LPG production from 2026, Argus Consulting estimates. NFS will add around 1.96mn t/yr of LPG by 2027, and NFW will add close to 1mn t/yr LPG in 2030 and another 1mn t/yr in 2031. QatarEnergy sells its LPG through spot and term deals, with supplies heading almost exclusively to Asia. Meanwhile, the UAE produced around 12.5mn t of LPG in 2024, with output forecast to grow by around 20pc to 15mn t by 2030, according to Argus Consulting. This growth will primarily stem from three large projects that are now under development by state-owned Adnoc Gas. The 9.6mn t/yr Ruwais LNG project on Das Island will more than double the UAE's LNG capacity of 5.8mn t/yr. The project is scheduled to start operations in the second half of 2028 and it will simultaneously boost LPG production. Adnoc's Meram — maximising ethane recovery and monetisation — project aims to increase ethane extraction from Adnoc Gas' onshore facilities in the Habshan complex by 35-40pc by constructing new gas processing facilities, as well as "enable and optimise feedstock supply" to the Ruwais industrial complex. Adnoc Gas anticipates Meram to be completed in 2026, with Argus Consulting forecasting the project to start yielding close to 700,000 t/yr of LPG from 2026. Adnoc Gas is also nearing completion of the second phase of its integrated gas development expansion project (IDG-E2), which will enable the Habshan plant to process an additional 370mn ft³/d (3.8bn m³/yr) of offshore gas. This expansion, expected to be finalised in the first quarter of this year, could lead to an increase in associated gas products such as LPG. These three projects together will raise both gas and liquids processing capacities by around 30pc by 2029, but Adnoc Gas notes that additional pre-final investment decision projects will further contribute to growth post-2029. All roads lead to Asia These new developments should significantly increase the amount of LPG exports from Qatar and the UAE. Qatar has been exporting around 10mn t/yr of LPG since 2015, while the UAE's exports stood closer to 11mn t/yr in 2023-24, Kpler data show. Almost all LPG exports from the Middle East head to Asian countries, led by India, which took around half of all exports from Qatar and around 70pc from the UAE's exports in 2024. The UAE and Qatar appear to be confident that the growing appetite of Asian importers will provide a home for the increasing LPG supplies. Imports to Asia are likely to rise by around a third to 108mn t by 2030 from 2023, Argus Consulting data show. Rising supplies in the Middle East will allow the region to compete with the US, which may be increasingly important should a new US-China trade war unfold, although the Middle East would be unable to fill the needs of China as well as India. Qatar LPG exports by country Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US delays Canada tariffs by a month: Trudeau


25/02/03
25/02/03

US delays Canada tariffs by a month: Trudeau

Calgary, 3 February (Argus) — US tariffs threatened against Canada will be delayed by 30 days, prime minister Justin Trudeau said this afternoon after talking with US president Donald Trump. "I just had a good call with President Trump," Trudeau posted on X, before describing Canada's plan to send thousands of officials to the US border to police fentanyl trafficking. The two leaders spoke twice on Monday, the eve of sweeping tariffs Trump had proposed against Canada and Mexico . Earlier in the day Mexican tariffs were also delayed by a month after similar promises for more troops on the border. "Nearly 10,000 frontline personnel are and will be working on protecting the border," Trudeau wrote. "In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering." Canada will be putting C$200mn ($139mn) towards tackling organized crime and fentanyl. In light of the US-Canada tariff pause, manufacturing and mineral-heavy Ontario said it would pause retaliation measures of its own announced earlier in the day. That would have banned US companies from provincial contracts, removed American products in liquor stores and cancelled a contract with Elon Musk's Starlink internet services. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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