MOSCOW (MRC) -- Italian energy group Eni has made no decision or announcement about a potential closure of the Milazzo refinery in Sicily, reported Reuters with reference to an Eni spokeswoman's statement on Thursday.
A media report earlier on Thursday, citing Eni officials, said Milazzo would close as a result of air quality requirements that the plant was unable to meet in time. The report said closure was planned by Jan. 1, 2022.
"Milazzo Refinery itself, together with the other Sicilian refining operators, has formally appealed against the new environmental limits," Eni said.
In 2018, the Sicilian regional government approved an air quality plan which laid down, among other things, emission targets for refiners operating in the area.
Some operators called the targets technically unachievable and trade unions expressed concern over possible job losses.
"As of today, the discussion with the (regional) authorities is in progress about both future limits and implications," Eni said.
Milazzo refinery, which has an output of around 10 million tons per year, is operated through a joint-venture of Eni and Kuwait Petroleum Italy.
As MRC informed earlier, Versalis, the petrochemical division of Italy's Eni SpA, shut is cracker in Priolo, Sicily, for repairs in the last days of December, 2019. The capacity of the cracking unit at this complex is 490,000 tonnes of ethylene and 130,000 tonnes of propylene per year. The maintenance works lasted until February 2020.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).