Tricon buys Australian polymers distributor eXsource

Houston-based trading and logistics firm Tricon Energy has acquired Australian polymers distributor eXsource for an undisclosed sum.

Australia's sole polyethylene (PE) producer Qenos set up its distribution arm eXsource in 2017, with eXsource later expanding its distribution business to New Zealand in 2019. Qenos entered into voluntary administration earlier this year following a cash liquidity crunch, with eXsource continuing to operate normally. It supplies a range of polymers manufactured by Qenos, Bluestar, LyondellBasell and others within the domestic Australian market.

The closure and mothballing of Qenos' PE plants in Altona in 2021 and in Botany in 2023 has reduced domestic resin supplies in Australia over the past three years, allowing international exporters to target exports to Australia.

Australia imported 108,000t of linear low-density polyethylene in 2023, up by 44,000t or 69pc compared with the previous year. It also imported 49,000t of low-density polyethylene, up by 22,000t or 81pc. But its high-density polyethylene imports fell by 48,000t or 16pc to 245,000t in 2023, possibly because of weakening downstream consumption.

By Yee Ying Ang