Repsol's petrochemical complex shut down after power supply failure

Repsol is working to restart a petrochemical complex in central Spain after it had to shut it down due to an external power supply failure, a spokesperson said, as per Reuters.

"Today (Monday) at 6 a.m. there has been an interruption in the external power supply of the Puertollano industrial complex, for reasons beyond the control of the center".

The spokesperson said safety systems kicked in and worked correctly, declining further comment.

A spokesperson for grid operator REE said that the problem was not connected to the transmission grid it managed and it had not detected any issues.

Spain is still reeling from the worst blackout to hit the Iberian peninsula, which in April left around 60 million people without power.

While the cause has yet to be determined, energy companies, industry experts and lobby groups said that several power glitches in the days before the outage pointed to the instability of the country's power grid.

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Ascend Performance Materials (Houston) plans to shut down its new hexamethylenediamine (HMDA) production facility in Lianyungang, China, “over the next few months” as part of its bankruptcy restructuring, the company said on June 17, as per Chemweek.

Ascend filed for Chapter 11 bankruptcy protection in April. HMDA is a key feedstock for the engineering resin nylon 6,6.

"In April, with the support of our lenders, we initiated a financial restructuring process to reduce our debt and position Ascend for the future," Phil McDivitt, President and CEO of Ascend, explained. "As we evaluated the market conditions and ongoing trade disputes, we determined that the Lianyungang production facility is no longer the best way to support our customers in the region. Accordingly, we have made the decision to wind down the facility."

The Lianyungang facility, which has 200,000 metric tons per year of HMDA capacity, went online in October 2024. Ascend has another 505,000 metric tons per year of HMDA capacity divided between its US sites in Decatur, Alabama, and Pensacola, Florida.

"This decision follows a comprehensive evaluation of the facility's long-term viability amid evolving market dynamics and regulatory landscapes," Ascend said. "The rest of the company’s Chinese operations, including the Suzhou compounding facility, will continue to operate as usual."

Market participants expect the impact of the closure of to be minimal, as overcapacity and weak demand have long plagued the Chinese HMDA market. "HMDA [capacity] is too much," a buyer told Platts, part of S&P Global Commodity Insights. “This won't affect the market.”

Platts last assessed hexamethylenediamine, FCA East China, at Yuan 18,750 per metric ton on June 11, down Yuan 50 on the week.

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INEOS Phenol, the world's largest producer of phenol and acetone, announced its intention to permanently stop production at their site in Gladbeck, Germany, as per Hydrocarbonprocessing.

Sky high European energy costs alongside Europe’s punitive CO2 tax policy have combined to leave Europe uncompetitive against imported Chinese production and a global oversupply.

After carrying out a detailed strategic review, the business intends to permanently exit the Gladbeck site at a date to be confirmed. Europe’s lack of competitiveness has already led to the exit of several downstream consumers of phenol and acetone to such an extent that local demand no longer supports the operation of the Gladbeck site which dates from 1954 and requires significant future investment.

Commenting, Sir Jim Ratcliffe, Chairman of INEOS said, “This is the consequence of Europe’s total lack of energy competitiveness and the blind devotion to carbon taxation which is leading to a mass deindustrialisation across the continent. Gladbeck is not the first and will definitely not be the last unless the regulators wake up and take action.”

INEOS Phenol will now enter into consultation with the works council, employees, customers and suppliers to exit the site in a safe, responsible and compliant manner.

We remind, British multinational chemicals group Ineos will sell its subsidiary Ineos Hygienics to Middle Eastern company SKG Capital Partners. The company did not disclose details of the deal.

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Propylene prices fell in Korea, while they remained stable in China on Monday, as per Polymerupdate.

On Monday, FOB Korea propylene prices were assessed at the USD 705-715/mt levels, a drop of USD (-10/mt) from Friday?s assessed levels. An industry source in Asia informed a Polymerupdate team member, " Prices were assessed lower due to bearish regional buying sentiments.

Meanwhile, CFR China propylene prices on Monday were assessed at the USD 755-765/mt levels, unchanged from Friday.

In plant news, Wanhua Petrochemical has shut down its cracker around June 15, 2025 owing to technical issues. Further details on the duration of the shutdown could not be ascertained. Located in Yantai, China, the cracker has a propylene production capacity of 500,000 mt/year.

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Brazilian state-run oil firm Petrobras announced on Monday it signed contracts worth approximately 4.9 bn reais (USD892.3 mln) for the completion of a new refining unit at its RNEST refinery, as per Hydrocarbonprocessing.

The agreements, signed with engineering firm Consag, include the construction of associated infrastructure, such as a diesel hydrotreatment unit, Petrobras said in a statement.

This initiative is part of Petrobras' strategy to build "Train 2" at RNEST, a new refining unit projected to double the refinery's current installed capacity. The new facilities are expected to become operational in 2029, according to Petrobras.

With an approximate value of R$ 4.9 billion, the agreements include the implementation of the Delayed Coking Unit (UCR), the Diesel Hydrotreating Unit S10 (UHDT-D), and the Atmospheric Distillation Unit (UDA), in line with the guidelines of the 2025-2029 Business Plan. The contracts were signed with the company Consag Engenharia SA.

According to Petrobras CEO Magda Chambriard, “RNEST is strategic for Brazil, as it is Petrobras’ hub in the North and Northeast regions. The contracts to resume construction on the refinery’s Train 2 demonstrate the company’s commitment to the country’s development, representing the expansion of our refining capacity and enabling the increase in the production of derivatives to meet the demands of society and the market.”

The UCR will have the potential to process up to 75,000 barrels/day of cargo, while the UHDT-D will be able to operate with up to 82,000 barrels/day. The UDA will have a capacity of 130,000 barrels/day. The volumes reinforce the relevance of RNEST in expanding the production of higher value-added derivatives in Petrobras’ refining park, promoting productivity gains and contributing to the supply of low-sulfur fuels.

Investments to double processing capacity. RNEST began operations in 2014 with its first set of units (Train 1). It is Petrobras' most modern refinery and contributes to meeting the national demand for petroleum derivatives. The unit features advanced technologies and has the highest level of automation in the company's refining park.

In March of this year, the modernization works on Train 1 were completed. Previously, in December 2024, RNEST began operating the SNOX unit, the first of its kind in Brazilian refining, responsible for reducing sulfur oxide (SOx) and nitrogen oxide (NOx) emissions and for producing sulfuric acid, a new product sold by the refinery, which, in addition to being profitable, contributed to environmental preservation.

In total, the works on RNEST Train 2 have the potential to generate approximately 30,000 direct and indirect jobs. The units are expected to start operating in 2029, allowing the refinery's installed capacity to double, from the current 130,000 barrels/day to 260,000 barrels/day, making it Petrobras' second largest refinery in terms of oil processing capacity.

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