Aekyung Chemical to expand surfactant plant in Vietnam

Aekyung Chemical plans to expand its surfactant plant in Vietnam, with the aim of targeting global markets in Southeast Asia, said Kedglobal.

The expansion of the plant, operated by the company's subsidiary AK VINA, will include the addition of high-value-added production lines for eco-friendly, low-stimulus, and natural surfactants.

The plant is expected to begin mass production in 2024, and the company aims to increase its overseas market share by increasing its production from 16,000 tons to 39,000 tons. The company cited growing demand from multinational companies operating in Vietnam for locally sourced surfactants.

"As the only synthetic surfactant production plant in Vietnam, we aim to establish a strong presence and respond to customer demands by offering high-value-added products," said Kim Joon-hyung, head of Aekyung Chemical's Living Chemical Business Division.

We remind, Aekyung Chemical, an affiliate of South Korea's Aekyung Group, has begun mass-producing eco-friendly plasticizers derived from recycled waste plastics, marking a first in South Korea. The company succeeded in developing the plasticizers and built specialized production facilities.

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U.S. environmental regulators conditionally approved plans for the owners of an idled refinery in the U.S. Virgin Islands to remove chemicals that the watchdog argued present serious health consequences if accidentally released, said Hydrocarbonprocessing.

The idled St. Croix refinery, formerly the largest in the Western Hemisphere, was expected to boost overall supply in the Caribbean, a key transit point for petroleum shipments, but the EPA shut it after a few months of operation in May 2021 after chemical releases sickened neighboring residents.

Equipment corrosion at the refinery, formerly called Limetree Bay, presents a risk of fire, explosion or other "catastrophic" releases of hazardous substances, the U.S. Environmental Protection Agency said last year. Regulators inspected the facility following an August 2022 fire within the petroleum coke conveyor loading system that burned for two weeks.

The refinery was sold for USD62 million in December 2021 to West Indies Petroleum and Port Hamilton Refining and Transportation, following the bankruptcy of its former private equity owners. The plant owners intended to restart the facility but the EPA said they let it fall into disrepair.

The EPA was particularly concerned about equipment containing ammonia, which can irritate or burn the eyes and skin, and liquefied petroleum gas (LPG), which can cause nausea and headaches. The chemicals, they say, present "serious health consequences" to facility workers and the public if released.

In December, the EPA entered into a binding agreement with Port Hamilton Refining and Transportation to begin removing the ammonia, LPG and amine solution in early March and finish in the summer of 2023. Port Hamilton contractors will remove the anhydrous ammonia by transferring it to specially designed shipping container for sale or disposal, regulators said.

Contractors will transfer the LPG into shipping containers for off-island sale as useable products or for proper disposal, the EPA said. The EPA said it will display real time results from "around-the-clock" air monitoring during the removal process.

U.S. regulators say the new owners cannot restart the plant unless they obtain a Clean Air Act permit, which could cost hundreds of millions of dollars and take three years or more. The owners are appealing the decision, according to court filings.

We remind, U.S. Environmental Protection Agency proposed increases in the amount of ethanol and other biofuels oil refiners must blend into their fuel over the next three years. The agency is also proposing incorporating electricity made from renewable biomass and used for electric vehicle into the program for the first time. The agency's long-awaited proposal will call for overall blending mandates of 20.82 B gallons in 2023, 21.87 B gallons in 2024 and 22.68 B gallons in 2025.

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China's February gasoline exports may fall a second straight month to his their lowest in eight nyears as domestic consumption rebounds after the nation emerged from COVID lockdowns, industry and market sources said, likely buoying Asian refining margins, said Hydrocarbonprocessing.

Refiners in the world's No. 2 oil consumer began scaling back refined fuel exports in January as local demand rebounded, reversing a surge in exports in the fourth quarter of 2022. Lower gasoline exports from China will likely tighten regional supplies ahead of the peak summer driving season in northern hemisphere countries, driving refining margins in Asia upwards as buyers pay higher prices to secure cargoes.

China's February gasoline exports were estimated at between 285,000 tonnes and 360,000 tonnes, down from an estimated 840,000 tonnes for January, according to two China-based consultancies and two trade sources. This would be the lowest since gasoline exports of 224,000 tonnes in February 2015, Chinese customs data showed.

The exports have declined as road traffic in major Chinese cities recovered or surpassed year-ago levels, with migrant flows over the Lunar New Year festival period hitting a five-year high, real-time traffic data from Baidu showed. “Traffic is normal and there are no more restrictions, so domestic consumption of gasoline has been high during the annual Chinese New Year travel season,” said Vortexa's China oil market analyst, Emma Li.

Post-holiday commercial storage levels are also likely low, limiting export shipments, Li said. Asia's benchmark gasoline cracks have been trading above USD10 a barrel since mid-January - a six-month high - mainly because of the drop in Chinese supplies and some opportunistic arbitrage demand from the United States.

China's jet fuel seaborne exports may also fall in February to 400,000 tonnes versus around 500,000 tonnes in January, two other Singapore-based traders estimated. Domestic demand is increasing with weekly air passenger figures exceeding 10 million from late January, the highest in at least 10 months, according to flight data provider VariFlight.

Last week, domestic air passenger numbers were at 86% of pre-pandemic levels, VariFlight said. The resumption of international flights, however, will push up demand for refuelling airplanes at Chinese airports - counted as exports - lifting total February jet fuel exports to 1.83 million tonnes from 1.2 million last month, according to consultancy JLC.

We remind, Linde Engineering (Pullach, Germany) has signed an agreement with BASF SE (Ludwigshafen, Germany) for the engineering, procurement and construction (EPC) of a synthesis gas (syngas) plant in Zhanjiang, China.

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In Germany, Symrise Cosmetic Ingredients has acquired a minority stake in Synergio, an Israeli producer of plant-based antimicrobial solutions, said the company.

Financial terms were not disclosed. Founded in 2009, Synergio uses biochemistry and a computational platform to develop bioactives for healthier and more sustainable personal care and cosmetic products.

Dr. Joern Andreas, President Scent & Care at Symrise, says in a press statement that Synergio’s bioactives fit seamlessly into Symrise’s Product Protection portfolio. “It allows us to offer customers the newest and most innovative sustainable plant-based beauty solutions. The partnership will accelerate the development of broad-spectrum antimicrobial solutions. They will help our customers to create sustainable personal care products.”

We remind, Symrise, a Germany-based flavours and fragrances producer, has launched new application, development, and sensory laboratories in Dubai, UAE. The EUR 1-M centre will decode, deliver, and design taste solutions for top food and beverages brands. It had recently transferred to the iconic 'Gold Tower Building' in the Dubai Multi Commodities Center (DMCC), the region's dedicated hub for global trade, specialist, and business sectors in Jumeirah Lake Towers (JLT) free zone. The units at the new centre are made to back the development of taste solutions and consumer-led winning concepts for high-growth categories, culinary, confectionery, dairy, beverages, and snacks.

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U.S. diesel prices have dropped this month and could go lower, analysts said, an unexpected swoon that coincided with the start of a British and European Union ban on Russian fuel imports, said Hydrocarbonprocessing.

The falling demand behind the price drop has allowed the United States to rebuild stocks, especially along the East Coast where scarce supplies six months ago raised prospects of curbs on U.S. exports. Lower prices could ease inflation worries that have occupied investors.

Distillate fuels – including heating oil, jet fuel and diesel – were in short supply during much of 2022 as refinery closures and strong demand combined to lift prices. Heating oil futures had hit USD5.14 per gallon in late April and mostly remained above USD3 per gallon until this month.

In part, European buyers had increased purchases of Russian distillates ahead of the import ban that took effect on Feb. 4. A relatively warm winter across the United States and Europe and lower commercial trucking activity lowered demand. Those factors helped push up U.S. inventories this week to 120.5 million barrels, the highest level in a year.

“This week was supposed to be when diesel prices blew out to the moon, but that’s not close to what happened,” said Bob Yawger, director of energy futures at Mizuho. Diesel demand by truckers fell off at the end of this year as high inflation impacted U.S. demand for goods. The Cass Freight Index for December, which measures cross-country shipments, showed a 3.9% year-on-year decline in shipments.

The closely watched Cowen/AFS Freight Index also showed a 13.7% year-on-year drop in truckload volumes for the fourth quarter of 2022. Demand for one type of distillate - jet fuel - is expected to rise ahead of the summer vacation, according to Patrick DeHaan, petroleum analyst at GasBuddy. Refiners also have a heavy slate of planned downtime at their facilities, which has the potential to send inventories tightening again in the next two months.

We remind, Solvay in advanced negotiations to divest its stake in Rusvinyl. The company confirms it is in advanced negotiations to divest its stake in Rusvinyl, an independent 50/50 joint venture in Russia, to its joint venture partner, Sibur, said the company. In addition to the recently obtained preliminary clearance from Russian governmental authorities, the potential transaction is still subject to several other regulatory approvals. Solvay will keep the market informed if and when appropriate, in accordance with applicable law.

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