ExxonMobil and Sabic to mothball ethylene crackers in Europe

International petrochemical giants – ExxonMobil and Sabic have outlined plans to mothball their ethylene crackers in Europe as the rising energy costs in the region coupled with a buildup in global ethylene capacity, severely erode profitability. 

ExxonMobil plans to close its 400,000 tons/year steam cracker together with downstream PP and PE units at the Gravenchon site in Port-Jérôme-sur-Seine, France within 2024. By 2025, about 677 jobs at the plant will be eliminated. 

In an official statement, the company said, “Despite efforts to reduce costs and improve the site’s economics, it is not competitive. The configuration of the steam cracker, its small size compared to newer units, high operating costs in Europe and higher energy prices make it uncompetitive.” 

Since 2018, the plant made an accumulated loss of more than $530 million.

On the other hand, Sabic is taking six units at the Geleen complex, in the Netherlands offline for routine maintenance. However, the company has no plan to restart the Olefin 3 unit and it will be disconnected from the facility. 

Sabic’s Olefin 3 was constructed in the early 1970s with an expanded ethylene capacity of 550,000 tons/year. The plant is now facing dual challenges of Europe’s decarbonisation of ageing infrastructure as well as economic factors. 

The company will be operating the Olefin 4 plant with an ethylene output of 675,000 tons/year normally following the overhaul. The Geleen complex houses nearly 800,000 tons/year of PE and 600,000 tons/year of PP.