South Korean chemicals companies are racing to tap new markets after racking up hundreds of millions of dollars in losses in the face of a deluge of capacity from China, their biggest market. Reliant on exports, firms including LG Chem Ltd. and Lotte Chemical Corp. are feeling the pinch as new plants in Asia’s biggest economy exacerbate a global glut and squeeze margins. And it looks like more pain is set to come for the Korean petrochemicals sector, which saw exports drop more than 15% in 2023 before rebounding modestly last year. The fortunes of these chemical and plastics makers have turned in recent years. Where once they rode the coattails of China’s explosive growth and insatiable appetite for imports, pushing aside rivals from Japan, they now face an oversupplied market and collapsing production margins as Beijing builds out its own industry.  “China is rapidly expanding its production of polyethylene and polypropylene, reducing its reliance on Korean imports and even exporting to other countries in Asia and South America,” said Paul Joo, executive director of olefins and olefin derivatives research at S&P Global Commodity Insights. “Korea risks being left behind unless decisive restructuring occurs.” Global production capacity for chemicals such as ethylene and propylene — precursors in plastics production — is set to grow by near-record levels this year, with the vast majority being built in China, according to BloombergNEF analyst Philip Geurts. The net growth in facilities will far outpace increases in demand, he said in a report released in January. Some companies have started to adapt, with LG Chem shutting plants in Daesan and Yeosu as it pulled out of the market for another common type of chemical, styrene monomers, used in plastics and rubber production. Lotte Chemical, meanwhile, is in the process of selling its stake in

The Wall Street JournalMarch 20, 2025“The Biden LNG ‘Pause’ Deception”By The Editorial Board “The Energy Department on Wednesday approved the Venture Global CP2 liquefied natural gas export project that became a cri de coeur for climate activists. Good call. Meantime, we are learning more about how the Biden team deceived Americans about its 2024 LNG export “pause.” “President Biden, prodded by climate adviser John Podesta, announced a supposedly temporary suspension of LNG project approvals in January of the election year. The stated purpose was so Energy could do a study to determine if increased exports are in the “public interest.” It turns out that DOE career staff had already completed such a study by autumn 2023. “A draft of that study, which was shared with us, shows that increased U.S. LNG exports would have negligible effects on domestic prices while modestly reducing global greenhouse gas emissions. The latter is largely because U.S. LNG exports would displace coal in power production and gas exports from other countries such as Russia.“The majority of the additional U.S. natural gas substitutes for other global sources of natural gas,” the study notes. “Global and U.S. GHG emissions do not change appreciably” across various scenarios that DOE staff modeled. . . . “The climate lobby also says more LNG exports will increase U.S. energy costs. But the study forecast that wholesale gas prices in the U.S. would rise less than in the “study DOE commissioned on the economic impacts from U.S. LNG exports in 2018.” Residential gas prices would increase by a mere 4% by 2050. “DOE staff and lawyers rigorously reviewed the models and findings because these conclusions “are going to receive a lot of scrutiny” and we “need to be able to explain why the model shows reduced emissions,” as one commented in the

Oil steadied after a lackluster session as traders continued to weigh diverging signals over supply and demand. West Texas Intermediate edged up 0.3% to settle above $68 a barrel, notching its second weekly gain. The US penalized a small Chinese refinery and its chief executive officer for allegedly buying Iranian oil, as well as a terminal operator. The market structure for Middle Eastern barrels strengthened after the news, with traders bracing for disruption to global flows. RBC Capital Markets LLC analysts said the “risk premium here is taken more seriously.” Still, crude was weighed down by macroeconomic concerns over slower economic growth and its impact on oil demand, reflecting an increasingly bearish long-term outlook that also dragged on equities. The specter of more OPEC+ supply hikes starting next month also limited this week’s gains. Several of the cartel’s members have pledged additional cutbacks to compensate for exceeding quotas. The reductions by countries including Kazakhstan, Iraq and Russia should — in theory — offset the plans to revive halted output through to the end of next year, according to a statement on OPEC’s website. Oil Prices: WTI for May delivery added 0.3% to settle at $68.28 a barrel in New York. Brent for May settlement advanced 0.2% to settle at $72.16 a barrel. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy. MORE FROM THIS AUTHOR Bloomberg

Alberta Premier Danielle Smith rejected any constraints on oil and gas exports to the US in her first meeting with new Prime Minister Mark Carney, renewing her criticism of Canada’s Liberal government as the country prepares for an election. Some Canadian leaders have suggested cutting or taxing energy exports to the US to strike back at President Donald Trump’s threatened tariffs. Smith leads the province that produces the vast majority of Canada’s more than 5 million barrels of daily oil output, nearly all of which goes to the US.   Smith said in an emailed statement that she made clear during her meeting with Carney, who succeeded Justin Trudeau as leader of the Liberal Party and was sworn in as prime minister last week, that she won’t “accept an export tax or restriction of Alberta’s oil and gas to the United States.” “Our province is no longer agreeable to subsidizing other large provinces who are fully capable of funding themselves,” she said. Smith also presented Carney with a list of demands, including oil and gas corridors to the north, east, and west, the repeal of legislation that she says hinders pipeline development and the lifting of a tanker ban off British Columbia’s coast. Smith also demanded the ends of an oil and gas industry emissions cap, clean energy regulations, a federal prohibition on single-use plastics and a net-zero car mandate. She also pressed for provinces to oversee the industrial carbon tax and sought the end of “federal censorship of energy companies.” The next prime minister, who will be chosen in an election that’s expected to be called within days, must address the list in the first six months of their term “to avoid an unprecedented national unity crisis,” she said. Carney, speaking at a press conference in which he was asked about

Tracy Wilson-Long has been appointed to Teesside-based PX Group as its new managing director for power and renewables. Originally from Teesside, Wilson-Long brings a wealth of experience to the role, having previously held strategic leadership positions at BP, working on global large-scale projects across North America, Europe, Asia, and Africa. Most recently she has worked in the Canadian clean technology space, helping start-ups advance to commercialisation, with a key focus and expertise in the developing hydrogen market. Tracy succeeds Neil Grimley, who has been with PX Group for over three decades and has shown outstanding, dedication and contribution, most recently in his leadership role building the power and renewables portfolio. He will now transition to the role of group business development director, where he will leverage his extensive experience to drive growth in fuels, terminals, and major net zero projects. Wilson-Long said: “PX Group’s vision, strategy and culture are a fantastic fit for me, I’m really looking forward to getting out to all our sites, meeting our people and customers, whilst learning all about the diverse operations in our business. I’m looking forward to working with PX Group’s talented team to unlock new possibilities.” PX Group recently scored a major contract win as it landed an operations and maintenance deal for the Tees Renewable Energy Plant (Tees REP). © Supplied by EnerMechEnerMech head of regional management in the Asia Pacific region Jason Jeow. Jason Jeow has been promoted to head Aberdeen-based EnerMech’s regional management in the Asia Pacific region. Jeow joined EnerMech in February as vice-president for Asia Pacific and will take on responsibility for managing relationships with regulatory bodies and environmental agencies as well as collaborate with business lines and local leaders to ensure adherence to high HSE standards and the safety of EnerMech personnel. EnerMech CEO Charles ‘Chuck’

U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve (SPR), increased by 1.7 million barrels from the week ending March 7 to the week ending March 14, the U.S. Energy Information Administration (EIA) highlighted in its latest weekly petroleum status report. That report was released on March 19 and included data for the week ending March 14. This EIA report showed that crude oil stocks, not including the SPR, stood at 437.0 million barrels on March 14, 435.2 million barrels on March 7, and 445.0 million barrels on March 15, 2024. Crude oil in the SPR stood at 395.9 million barrels on March 14, 395.6 million barrels on March 7, and 362.3 million barrels on March 15, 2024, the report outlined. The EIA report highlighted that data may not add up to totals due to independent rounding. Total petroleum stocks – including crude oil, total motor gasoline, fuel ethanol, kerosene type jet fuel, distillate fuel oil, residual fuel oil, propane/propylene, and other oils – stood at 1.596 billion barrels on March 14, the report showed. Total petroleum stocks were up 1.9 million barrels week on week and up 22.5 million barrels year on year, the report revealed. “At 437.0 million barrels, U.S. crude oil inventories are about five percent below the five year average for this time of year,” the EIA said in its latest weekly petroleum status report. “Total motor gasoline inventories decreased by 0.5 million barrels from last week and are two percent above the five year average for this time of year. Finished gasoline inventories and blending components inventories both decreased last week,” it added. “Distillate fuel inventories decreased by 2.8 million barrels last week and are about six percent below the five year average for this time of year. Propane/propylene inventories decreased by