The downsizing of Europe’s petrochemical sector continues
where the energy firm Eni plans to shutter two ethylene crackers—in Brindisi and Priolo Gargallo—as part of an overhaul of its struggling Versalis chemical business
the Italian firm joins a growing list of companies closing European olefin and polyolefin facilities that are older
and have higher operating costs than newer facilities built in the US
ExxonMobil and Sabic both announced similar closures earlier this year
LyondellBasell Industries is reviewing its European fleet
“This is a necessary response to the structural disadvantage European basic chemicals manufacturing faces versus other regions,” Francesco Gattei
Eni’s chief transition and financial officer
The business has lost $3.2 billion over the past 5 years and $7.6 billion over the past 15
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ExxonMobil and Sabic both announced similar closures earlier this year
LyondellBasell Industries is reviewing its European fleet
“This is a necessary response to the structural disadvantage European basic chemicals manufacturing faces versus other regions,” Francesco Gattei, Eni’s chief transition and financial officer, said in an earnings call
The site in Brindisi, on Italy’s Adriatic coast, was established in the 1960s to make olefins and chlor-alkali. The cracker in Priolo Gargallo, in Sicily, is on a site that has been making chemicals since the 1950s
According to the industry group Petrochemicals Europe
the Brindisi cracker has 440,000 metric tons (t) per year of ethylene capacity; Priolo has 530,000 t
Eni will close a polyethylene plant in Ragusa
and plans to sell some or all of its ethylene cracker in Dunkerque
The firm had announced plans to convert the Dunkerque cracker from naphtha feedstock to lower-cost ethane imported from the US but didn’t follow through
vice president of global olefins and derivatives at Chemical Market Analytics by OPIS
says he is not surprised by Eni’s announcement
as the company has been telegraphing a shift in focus to specialty materials
with the recent announcements of plant closures
some 2.5 million t of ethylene capacity is likely to close in Europe
This would amount to roughly 10% of the continent’s total compared with Petrochemicals Europe’s figures
If Ineos builds a 1.5 million t cracker in Belgium as planned
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