Here's a look at consolidation moves by major producers sumitacross the globe.
EXXON MOBIL 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
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
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
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
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 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)
SABIC, 70% owned by oil giant Aramco, 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
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.
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
Saudi Aramco has agreed to buy from Japan's Sumitomo Chemical a 22.5% stake in their petrochemical joint venture Petro Rabigh 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%.
(Reuters, August 09, 2024)