Ineos reported an upset with a demethanizer tower in the olefins unit 1

(Bloomberg) -- Ineos Group Holdings Plc reported an upset with a demethanizer tower in the olefins unit 1 at its Chocolate Bayou chemical site in Alvin, Texas, according to a filing with state regulators. Emissions associated with the flaring began today at 5 a.m. local time and lasted for seven hours, the Lyndhurst, U.K.-based company said in the report to the Texas Commission on Environmental Quality.

Ineos was ⌠stabilizing the unit to bring ethylene product back on spec and decreased feed to the furnaces, according to the filing.

⌠Operations are normal at Chocolate Bayou, Charles Saunders, a company spokesman based in League City, Texas, said in an e-mail.

The Chocolate Bayou plant includes two olefins units and has one of the largest hydrocarbon crackers in the U.S., according to the company website. The plant is about 45 miles (72 kilometers) south of Houston.

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(Southeast Texas Record) -- Texas Petrochemicals has filed a motion to dismiss in a lawsuit claiming its pipelines were damaged when another pipeline ruptured and started a fire. As previously reported, Texas Petrochemicals filed a lawsuit April 20, 2009, in Jefferson County District Court against UCAR Pipeline Inc., Dow Chemical Co. and Union Carbide Corp.

Court records show an ethylene pipeline in Port Arthur owned by UCAR ruptured around 2 a.m., Oct. 18, 2007, resulting in an uncontrolled released of ethylene. The ruptured pipeline, which was located near Main B Canal in Port Arthur, caused an explosion and fire. An hour later, Texas Petrochemicals' pipeline also ruptured and caught fire. According to the suit, the fire was caused by metal fatigue that occurred because of flames from the burning UCAR pipeline.

On Jan. 10 Texas Petrochemicals filed a motion to dismiss with prejudice, requesting Judge Donald Floyd, 172nd District Court, to dismiss all claims.

Texas Petrochemicals was seeking actual damages, cost of repair and replacement, unspecified exemplary damages, pre- and post-judgment interest at the legal rate, court costs and other relief to which they may be entitled.

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(ICIS) -- US petrochemical, chemical and refining interests on Tuesday welcomed a federal government decision to postpone the 31 March deadline for industrial reporting of greenhouse gas (GHG) emissions. The Environmental Protection Agency (EPA) said earlier on Tuesday that it would put back the original 31 March reporting deadline to an unspecified date in mid-2011.

Under the agency's May 2010 reporting mandate, large emitters of greenhouse gases such as carbon dioxide (CO2) - basically industrial sites, manufacturers such as chemical plants and refiners - were to begin reporting the volume of their GHG emissions beginning the end of this month.

EPA said it was putting the deadline back so that it could further test the online reporting system that would be used by industry. The agency said that it would announce a new deadline later this year.

American Chemistry Council (ACC) President Cal Dooley welcomed the delay. ⌠Reporting done right requires a thorough understanding of the new rules, ample time for feedback and sufficient testing to ensure a high-quality database, he said.

The National Petrochemical & Refiners Association (NPRA) also hailed the delay, saying it was ⌠a sensible step.

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(ICIS) -- Crude futures are close to a two-and-a-half year high on Wednesday on supply worries triggered by the ongoing turmoil in Libya and an unexpected fall in US crude inventories. At 05:58 GMT, April Brent on London's ICE futures was trading at $115.89/bbl, up 47 cents/bbl from the previous close after earlier hitting a session high of $116.36/bbl. The Tuesday North Sea benchmark settled at $115.42/bbl, the highest level since 27 August 2008.

Crude prices stayed high amid mounting concerns that continued instability in Libya, which has drastically reduced output from the OPEC member, could spread to other nations in the Middle East and North Africa and threaten the global supply of crude oil.

Other countries in the region also recently experienced unrest including Oman, Bahrain and Iran in recent weeks since the overthrow of Egypt's President Hosni Mubarak.

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(ICIS) -- French specialty chemicals firm Arkema said on Wednesday it plans to start up its two new plants in Changsu, China, and is eyeing new projects to expand its presence in Asia. "Two new plants will be brought on stream in China, the first in March for fluoropolymers and the second in mid-year for specialty acrylic polymers," Arkema said in a statement. The capacity of the plants were not disclosed.

Meanwhile, the company said that among its priorities this year would be building an emulsions plant and expanding its capacity in polyamides and fluoropolymers in Asia.

Arkema said it would also prepare longer-term projects in the thiochemicals and acrylic monomers sectors in Asia.

Arkema reported a record net profit of ┬347m ($475m) last year, with sales jumping 32.9% to ┬5.91bn. In the fourth quarter of 2010, it swung to a net profit of ┬58m on the back of a 32.4% year-on-year surge in sales to ┬1.43bn.

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