Dow restarts olefins units at Tarragona, Spain

Dow Inc.’s steam cracker at Tarragona, Spain came back online on May 22 following a total shutdown at the end of April, according to various market sources on May 28, as per Chemweek.

The initial shutdown was caused by a nationwide power outage in Spain on April 28, resulting in the facility halting production. The company’s press office had not responded to a request for comment as of May 28.

The outage has had a limited impact on European ethylene markets, which are currently oversupplied and facing weak demand from derivative markets.

Platts, part of S&P Global Commodity Insights, assessed ethylene CIF MED at $771 per metric ton on May 27, down 50 euro cent/metric ton from May 23.

The European propylene market has seen overall balanced demand and supply fundamentals. Activity has been limited as buyers continued to hold off purchasing volumes unless they can obtain wider discounts to the monthly industry-settled contract price.

Platts assessed propylene polymer-grade free delivered Northwest Europe at €801 per metric ton on May 27, down 50 euro cent/metric ton from May 23.

Sources in the European polyethylene market had cited volume delays expected from the site despite the unit’s resumption. One converter said their volumes have been pushed back to delivery in June but faced no trouble finding alternative supplies.

The cracker at Tarragona has an annual nameplate capacity for 675,000 metric tons of ethylene and 340,000 metric tons of propylene.

We remind, Dow has postponed its major Canadian project to produce zero-emission ethylene and polyethylene. The Path2Zero project, announced in 2021, involves building a new facility and upgrading an existing plant. The facility was expected to add 1.8 million tonnes of ethylene production capacity by 2030, with total capacity increasing to 3.2 million tonnes of polyethylene and ethylene. The project was expected to reduce CO2 emissions by 1 million tonnes.

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Alpek SAB de CV (Monterrey, Mexico) plans to shut down its Cedar Creek facility in Fayetteville, North Carolina, by the end of July, as per Chemweek.

Alpek said the move is part of a long-term strategy to optimize its global footprint, and that closure of the facility, which manufactures polyethylene terephthalate (PET), will yield about $20 million in annualized savings by 2026.

Alpek acquired the Cedar Creek facility in 2001. It has capacity to produce 170,000 metric tons per year of polyethylene terephthalate (PET) resin and about 35,000 metric tons per year of recycled PET flake.

Alpek in 2023 indefinitely idled a 170,000 metric tons per year PET plant at its Cooper River facility in Charleston, South Carolina.

Following the closure of Cedar Creek, Alpek’s global PET resin capacity will total 3.09 million metric tons per year. The company has 725,000 metric tons per year of PET resin capacity in Columbia, South Carolina, and 430,000 metric tons per year of PET resin capacity in Bay St. Louis, Mississippi. The balance of the company’s PET capacity is at facilities in Canada, Mexico, Brazil, Argentina, the UK and Oman.

We remind, the Canadian International Trade Tribunal has found that there is reasonable cause to believe that the alleged dumping and subsidization of polyethylene terephthalate (PET) from China and Pakistan has adversely affected domestic producers, Chemanalyst reports. The trade investigation was initiated by Compagnie Alpek Polyester Canada (Alpek), which filed a complaint with the Canada Border Services Agency.

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The State Oil Fund of the Azerbaijani Republic (SOFAZ) has invested $50 million in ADNOC Gas Pipeline Assets LLC (AGPA, a subsidiary of Abu Dhabi National Oil Company, ADNOC), which operates the UAE's gas pipeline network, as per Interfax.

The investment aligns with the fund's strategy to diversify its portfolio through investment in sustainable and profitable infrastructure assets, while also expanding economic ties with the Gulf Cooperation Council (GCC) region, SOFAZ's press service said.

AGPA's 982 km network comprises 38 pipelines, including 12 for commercial gas transportation, 15 for gas injection and 11 for liquefied gas transportation.

ADNOC Gas Pipeline Assets is one of the UAE's most critical energy infrastructure facilities, playing a key role in the country's sustainable energy ecosystem, the press service said. A long-term operating agreement between AGPA and ADNOC ensures stable, predictable revenue based on established gas transportation volumes, it said.

"Even during periods of volatility in global energy markets, AGPA has maintained strong financial and operational performance," it said.

SOFAZ made the investment in AGPA through a specialized infrastructure fund managed by Lunate Capital, an Abu Dhabi-based alternative investment manager.

"AGPA represents a high-quality, strategically important infrastructure asset with strong long-term return potential. We are pleased to partner with Lunate and welcome this investment opportunity that expands our presence in the Gulf region," Farhad Zeynalov, the head of SOFAZ's Investment Department, was quoted as saying.

The State Oil Fund of the Azerbaijani Republic accumulates the state's revenues from oil contracts, particularly from the sale of profitable oil and gas, from tariffs on oil and gas transportation across the country, and from state property rentals.

As of Q1 2025, SOFAZ's assets totaled $62.740 billion, up 4.5% from the start of the year. Its investment portfolio is valued at $62.45 billion. The Gulf Cooperation Council, established in May 1981, includes Bahrain, Qatar, Kuwait, the UAE, Oman and Saudi Arabia. Its primary goal is coordinating economic, financial, social, legislative and administrative integration among member states.

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The OPEC Secretariat will present proposals to amend the methodology for determining reference production levels which would be the basis for determining production for 2027, Kazakh Deputy Energy Minister Alibek Zhamauov told reporters, as per Interfax.

Zhamauov said that the reasons for amending the methodology are not yet clear. "It was said that this would be for a fair distribution of quotas," he said. The OPEC Secretariat presented Proposals on this during yesterday's meeting of OPEC+ ministers.

The Secretariat must present the new methodology by the end of July.

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William Lacobie, managing director of Chevron's strategic business unit in South Africa, will head Tengizchevroil (TCO), which develops Kazakhstan's Tengiz oil field, effective June 10, TCO said, as per Interfax.

"I am honored to join TCO as General Director at such a pivotal moment in its history. The Tengiz field is one of the most technically challenging fields in the world, and our company will remain focused on safe and reliable operations and supporting Kazakhstan's economic development," Lacobie said.

Lacobie will replace Kevin Lyon, who has served as TCO's CEO since 2021. Lyon will take on a new executive role at Chevron Corporate headquarters, the company said.

With 31 years of experience at Chevron, William Lacobie has held multiple operational and leadership positions across the company's business units in the United States, Angola, and Indonesia. Since 2021, he has served as Managing Director of Chevron's Southern Africa Strategic Business Unit, with responsibility for oil and gas production assets in Angola and the Republic of Congo, including oversight of the Angola LNG facility, one of Africa's largest liquefied natural gas projects.

TCO's ownership structure includes Chevron (50%), ExxonMobil Kazakhstan Ventures Inc (25%), Kazakhstan's national company KazMunayGas (20%), and Lukoil (5%).

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