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VOLUME XXI
September 14, 2023
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February 15, 2021
Sub-freezing temps in US Gulf could disrupt plant operations, logistics
Author: Adam Yanelli
2021/02/12
HOUSTON (ICIS)–A cold front making its way across the US this weekend could disrupt plant operations or impact logistics if temperatures spend enough time below freezing.
But the impact on chemical plants along the US Gulf Coast, where sub-freezing weather is rare, could be limited if daytime highs rise above freezing.
Forecasts from the National Weather Service show overnight temperatures in some areas along the US Gulf could fall as low as 14 degrees Fahrenheit (-10 degrees Celsius) on Sunday and Monday nights.
The NWS forecast for Deer Park, Texas, calls for temperatures to drop below freezing on Sunday night and to stay there until Tuesday morning.
Forecasts can still change, and the daily highs could be warm enough to prevent plant shutdowns, said Brian Pruett, senior vice president of polyethylene (PE) and polypropylene (PP) with CDI.
Generally, plants are designed to run within a set range of temperatures, said James Wilson, senior analyst at ICIS. Below that range, some pieces of equipment may not run well and some lines can freeze.
In places such as Russia, companies design plants with cold temperatures in mind, Wilson said. Process lines are heavily insulated or even heat traced.
Such frigid temperatures are rare on the Gulf Coast. It is unlikely that chemical companies adopted such extra steps in the new units that they built during the past decade, said Kimberly Haberkost, director of olefins at CDI.
Idled plants could be more at risk of damage, a producer told ICIS, because they are not generating heat and they could have water in the pipes that could freeze and cause issues.
LOGISTICS, POWER LOSS
Even without any plant shutdowns, icy roads could slow down deliveries and keep workers from getting to the plants.
Freezing rain or sleet could weigh on trees, causing them to fall and possibly take down power lines.
The NWS forecast includes a 60% chance of snow or sleet overnight on Sunday through Monday.
Bitterly cold temperatures are causing logistical issues, as rivers connecting chemical production in the US Gulf with the Midwest region of the country begin to freeze.
PAST COLD-WEATHER SHUTDOWNS
The last time that frigid weather shut down plants on the Gulf Coast was in mid-January 2018.
On 17 January 2018, the temperatures ranged from 20-37 degrees Fahrenheit in Houston, according to the Weather Underground. On 18 January 2018, the range was 26-38 degrees Fahrenheit.
Before that, cold temperatures disrupted operations in 2011, when temperatures were 24-34 degrees Fahrenheit from 2-4 February.
Additional reporting by Al Greenwood and Antoinette Smith
February 15, 2021
Sub-freezing temps in US Gulf could disrupt plant operations, logistics
Author: Adam Yanelli
2021/02/12
HOUSTON (ICIS)–A cold front making its way across the US this weekend could disrupt plant operations or impact logistics if temperatures spend enough time below freezing.
But the impact on chemical plants along the US Gulf Coast, where sub-freezing weather is rare, could be limited if daytime highs rise above freezing.
Forecasts from the National Weather Service show overnight temperatures in some areas along the US Gulf could fall as low as 14 degrees Fahrenheit (-10 degrees Celsius) on Sunday and Monday nights.
The NWS forecast for Deer Park, Texas, calls for temperatures to drop below freezing on Sunday night and to stay there until Tuesday morning.
Forecasts can still change, and the daily highs could be warm enough to prevent plant shutdowns, said Brian Pruett, senior vice president of polyethylene (PE) and polypropylene (PP) with CDI.
Generally, plants are designed to run within a set range of temperatures, said James Wilson, senior analyst at ICIS. Below that range, some pieces of equipment may not run well and some lines can freeze.
In places such as Russia, companies design plants with cold temperatures in mind, Wilson said. Process lines are heavily insulated or even heat traced.
Such frigid temperatures are rare on the Gulf Coast. It is unlikely that chemical companies adopted such extra steps in the new units that they built during the past decade, said Kimberly Haberkost, director of olefins at CDI.
Idled plants could be more at risk of damage, a producer told ICIS, because they are not generating heat and they could have water in the pipes that could freeze and cause issues.
LOGISTICS, POWER LOSS
Even without any plant shutdowns, icy roads could slow down deliveries and keep workers from getting to the plants.
Freezing rain or sleet could weigh on trees, causing them to fall and possibly take down power lines.
The NWS forecast includes a 60% chance of snow or sleet overnight on Sunday through Monday.
Bitterly cold temperatures are causing logistical issues, as rivers connecting chemical production in the US Gulf with the Midwest region of the country begin to freeze.
PAST COLD-WEATHER SHUTDOWNS
The last time that frigid weather shut down plants on the Gulf Coast was in mid-January 2018.
On 17 January 2018, the temperatures ranged from 20-37 degrees Fahrenheit in Houston, according to the Weather Underground. On 18 January 2018, the range was 26-38 degrees Fahrenheit.
Before that, cold temperatures disrupted operations in 2011, when temperatures were 24-34 degrees Fahrenheit from 2-4 February.
Additional reporting by Al Greenwood and Antoinette Smith
February 15, 2021
LyondellBasell, Covestro declare force majeure on styrene from Maasvlakte POSM unit
12:24 PM | February 15, 2021 | Fahima Mathe, OPIS
Mechanical failure caused shutdown on 10 February; unit produces 680,000 metric tons/year of styrene, 313,000 metric tons/year of propylene oxide.
February 15, 2021
LyondellBasell, Covestro declare force majeure on styrene from Maasvlakte POSM unit
12:24 PM | February 15, 2021 | Fahima Mathe, OPIS
Mechanical failure caused shutdown on 10 February; unit produces 680,000 metric tons/year of styrene, 313,000 metric tons/year of propylene oxide.
February 15, 2021
S-Oil expected to continue recovery this year
신문5면 1단 기사입력 2021.02.14. 오후 4:42 최종수정 2021.02.14. 오후 4:45 기사원문스크랩 좋아요 좋아요 평가하기 2 댓글 글자 크기 변경하기인쇄하기 보내기 
S-Oil’s residue upgrading facility (S-Oil)
S-Oil, South Korea’s No. 3 refiner, is expected to see an improvement in profits this year, continuing a recovery momentum from the final quarter of 2020, according to the industry sources Sunday.
S-Oil said the company expects a recovery based on the increasing profitability of the company’s petrochemical products, including propylene oxide and polypropylene.
S-Oil noted the company plans to increase production capacity for propylene oxide through which the company managed to offset the weak refining margin in the last quarter.
During the October-December period, S-Oil’s refining business posted an operating loss of 89.7 billion won. However, the company’s petrochemical and lube oil units posted 72.7 billion won and 110 billion won of operating profits.
S-Oil was the only refiner — among four local refiners in the nation — that avoided plunging into the red.
Increasing profitability of propylene oxide, in particular, helped the company, the firm said.
The price of propylene oxide per metric ton in the fourth quarter last year reached an all-time high since December 2014, increasing 85 percent to reach $1,098 from $595 in the previous quarter.
The refiner said it plans to add its production capacity for propylene oxide by 30,000-40,000 tons to maximize profits from the petrochemical product.
The company also anticipated a recovery in refining margins in the wake of the global rollout of COVID-19 vaccines, which will boost travel demand worldwide.
According to Meritz Securities here, S-Oil’s operating profit this year is expected to hit 1.02 trillion won, turning around from the operating loss of 1.08 trillion won in 2020.
By Shim Woo-hyun (ws@heraldcorp.com)
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