European Chlorine Production Gains Momentum in November

European Chlorine Production Gains Momentum in November

In November 2023, chlorine production in Europe exhibited a notable increase compared to the corresponding period in the previous year, said Chemanalyst.

Producers across the continent reported an average daily chlorine production of 20.023 thousand tons, representing a significant surge. This figure marked a 6.6% rise compared to October and a substantial 9.9% increase when compared to November 2022.

The dynamics of chlorine production play a crucial role in understanding the state of the chemical industry, and this positive growth trend indicates a robust performance within the European chlorine manufacturing sector. The average daily output serves as a key metric, showcasing the industry's capacity and responsiveness to market demands. The 6.6% month-on-month increase from October underlines the sector's agility in adapting to changing conditions, while the substantial 9.9% boost from November 2022 reflects sustained growth over the year.

In conjunction with the rise in chlorine production, caustic soda inventories in November experienced a slight decline. The inventories were reported to be 0.8% lower than the previous month, demonstrating a shift in storage levels. Furthermore, when compared to the levels recorded in November 2022, caustic soda inventories exhibited a more significant decrease, reaching almost 8%.

This information offers insights into the interplay between chlorine production and caustic soda inventories. The two are intricately connected as chlorine is a key component in the production of caustic soda. The fluctuations in these metrics provide a comprehensive overview of the chemical industry's dynamics in Europe.

The data from September indicated a year-on-year increase in chlorine production, accompanied by a rise in caustic soda stocks. In September 2023, the average daily chlorine production was 19.69 thousand tons, which represented a 2.4% decrease from the preceding month. However, it marked a 2% rise when compared to the corresponding period in September 2022.

The sequential analysis of these key metrics across multiple months allows for a nuanced understanding of the industry's performance trends. While the month-on-month decline in September may suggest a transient adjustment, the consistent year-on-year increases underscore the sector's resilience and sustained growth.

The surge in chlorine production in Europe during November 2023 signifies a robust and responsive chemical industry. The positive growth trend, with a 6.6% increase from October and a notable 9.9% rise compared to November 2022, showcases the sector's adaptability and consistent performance. The slight decrease in caustic soda inventories for the same period adds depth to the analysis, providing valuable insights into the interconnected nature of these chemical metrics. As the industry navigates through various market dynamics, these observations contribute to a comprehensive understanding of the European chemical landscape and its evolving patterns.

We remind, Covestro AG has officially started up a new world-scale production facility in Tarragona, Spain for producing Chlorine. The plant is the first of its kind to utilize the highly innovative and energy efficient ODC (oxygen depolarized cathode) technology developed by Covestro and its partners. This advanced facility will ensure an efficient, sustainable, and independent supply of Chlorine and caustic soda to local MDI production operations – a precursor material used in the making of rigid Polyurethane foam for insulating buildings and refrigeration appliances. Their 200-million-euro investment not only secures their place in leading the industry but also created 50 new jobs on site.

Toyo Seikan & Idemitsu launch test to demo recycling of plastic scraps

Toyo Seikan & Idemitsu launch test to demo recycling of plastic scraps

Toyo Seikan Group Holdings and Idemitsu Kosan have begun a joint demonstration test on the recycling of plastic scrap material into oil for the production of renewable chemicals and renewable fuel oil, said the company.

In the demonstration test, Chemical Recycle Japan, a subsidiary of Idemitsu Kosan, will use its technology to recycle the plastic scrap material that occurs in the process of manufacturing plastic products into oil that will be used as raw material at the plants of Toyo Seikan Group.

Through a series of these initiatives, Idemitsu Kosan will confirm the availability of using generated oil as a raw material for petrochemical products and fuel oils, and verify the feasibility of recycling plastic scrap. In the future, Idemitsu plans to produce renewable chemicals and fuels with its existing oil refining and petrochemical equipment, using the oil derived from plastic scrap materials.

We remind, Toyo Engineering Corp. (Tokyo) has been awarded engineering and procurement contract for an acetylene black project by Denka SCGC Advanced Materials Co., Ltd., a joint venture company of Denka Company Ltd. and SCG Chemicals plc (SCGC; Bangkok, Thailand.

Turkmenneft, Turkmengaz broadening cooperation with ADNOC, Dragon Oil

Turkmenneft, Turkmengaz broadening cooperation with ADNOC, Dragon Oil

Turkmenistan's state oil and gas concerns, Turkmenneft and Turkmengaz, have signed memorandums of cooperation with state companies from the United Arab Emirates, said Interfax.

Turkmengaz and the Abu Dhabi National Oil Company (ADNOC) signed a memorandum regarding the intention of the parties to attract strategic partners for the development of the third stage of the Galkynysh field.

The memorandum also provides for the possible participation of these partners in energy projects, including the construction of gas pipeline infrastructure, to supply natural gas not only to the countries of the region, but also to other states.

The report also said the Turkmenistan-Afghanistan-Pakistan-India or TAPI gas pipeline currently under construction would give a major impetus to the socio-economic development of the entire Asian region. It is expected that in time the third stage of development of the giant Galkynysh field will provide gas for this trunkline.

Turkmengaz and ADNOC also signed a memorandum to explore opportunities for scientific, technical and economic cooperation in reducing methane emissions. Turkmenneft and Dragon Oil (Turkmenistan) Ltd., a subsidiary of Dragon Oil, which is wholly owned by the Dubai government, also signed a memorandum on cooperation.

The documents were signed during a visit by People's Council Chairman Gurbanguly Berdimuhamedov to the UAE.

Berdimuhamedov said at a meeting in Dubai with the Chairman of the Board of Directors of Dragon Oil, Syed Al Tayer that Turkmenistan's oil and gas industry priorities include increasing the volume of oil and gas production and refining as well as the export of Turkmen energy resources and finished products and petrochemical products. Turkmenistan, with its huge hydrocarbon resources, advocates mutually beneficial cooperation with the world's leading companies engaged in their exploration, development and production. They include Dragon Oil, which has a track record as a responsible and reliable partner, he said.

Dragon Oil, headquartered in Dubai, has been operating in Turkmenistan since 2000 under a production sharing agreement to produce hydrocarbons at the Cheleken contract area in the Caspian Sea.

The Galkynysh oil and gas condensate field, which is the second largest in the world, is in pilot

The Galkynysh reserves, including the Yashlar and Garakel fields, are estimated at 27.4 trillion cubic meters of gas. Current production is 20 bcm and projected output 30 bcm. The field will be developed in seven stages, with production increasing by 30 bcm annually during each one.

We remind, Azerbaijan and Turkmenistan are negotiating to continue swap supplies of Turkmen gas to Azerbaijan through Iran. It said gas supplies from Turkmenistan to Azerbaijan had been "temporarily suspended." The Iranian company did not provide details, saying only that the suspension of Turkmen gas supplies to Iran had "disrupted the flow of gas from Iran to Azerbaijan under the trilateral swap agreement." "The gas swap will resume as soon as an agreement is reached by the two countries," NIGC said.

India's ONGC sees oil production rise 11% after east coast block starts output

India's ONGC sees oil production rise 11% after east coast block starts output

India's Oil and Natural Gas Corp said it expected total oil output to climb 11% after its project off the country's east coast started producing oil, said Hydrocarbonprocessing.

The project will also likely increase ONGC's gas output by 15%, the company added.

The state-run company sees production from the rest of the oil and gas fields in the project by mid-2024 and is eyeing peak output of 45,000 barrels of per day and more than 10 million metric standard cubic meters per day of gas from the project.

The company currently contributes to 71% of India's domestic oil production, according to its official website.

Shares of ONGC were up as much as 2%, their highest since May 2015.

We remind, Motiva Enterprises is scheduled to shut the large CDU and large coker at its 626,000 bpd Port Arthur, Texas (U.S.). Motiva will shut the 350,000 bpd VPS-5 CDU and the 110,000-bpd DCU-2 coker for planned overhauls of the units expected to take 45 days to complete, said the three sources.

Shell flags widening Q4 chemical losses

Shell flags widening Q4 chemical losses

Shell flagged impairment charges of up to $4.5 billion for the fourth quarter, mainly related to the Singapore refining and chemicals hub the oil major is looking to sell, said Reuters.

Ahead of fourth-quarter results on Feb. 1, the company also said gas trading would be significantly higher than the previous three-month period, while oil trading results were expected to be significantly lower over the same period.

Shell's liquefied natural gas (LNG) production volumes were expected to come in at 6.9 million to 7.3 million metric tons, a slightly higher range from its previous guidance. That comes after Shell restarted production late last month at its giant Prelude LNG facility offshore Australia following four months of maintenance.

Shell's upstream production is set to come in at 1.83 to 1.93 million barrels of oil equivalent per day in the fourth quarter. Meanwhile, its chemicals and products division is expected to post an adjusted earnings loss for the period, it added.

The changes led analysts at Barclays to lower Shell's forecast fourth-quarter adjusted operating result to $5.9 billion, down 11% from their previous estimates. Shell shares were down by 1.7% at 1242 GMT. Shell said it would take non-cash, post-tax impairments of $2.5 to $4.5 billion in the quarter.

We remind, Shell said it had agreed to sell its 37.5% stake in the PCK Schwedt oil refinery, which supplies most of Berlin's fuel, to Britain's Prax Group, attempting to draw a line under its co-ownership of an asset majority-owned by Russia's Rosneft.