NextDecade files to allow TotalEnergies to exit LNG stake

NextDecade has filed for a shelf registration that would allow TotalEnergies to sell its 17.5% stake in the U.S. LNG company over time, said Hydrocarbonprocessing.

A unit of French oil major TotalEnergies currently holds 44.9 million shares of NextDecade, bought for $219 million in June as part of a broader deal to develop NextDecade's Rio Grande LNG export project in south Texas that has faced repeated delays.

NextDecade, which signed a contract to supply 5.4 million tons of LNG per year to TotalEnergies, said in a filing dated Dec. 22 it would not receive any proceeds from any such future offerings.

The prospectus with the U.S. Securities and Exchange Commission registers the shares owned by TotalEnergies and enables them to sell them in the future, said NextDecade spokesperson Susan Richardson.

"There is no current offering of shares. While we cannot control the actions of our shareholders...we view them as a long-term strategic partner," Richardson said. TotalEnergies' decision is likely a reflection that, having helped get the LNG facility to a final investment decision, an equity position was no longer required, said Rapidan Energy Group Research Director Alex Munton.

"The equity investment in Next Decade may have been needed to help Rio Grande being financed, and that now the project the under construction TotalEnergies may have decided that there is little value in holding onto its position, as the overriding interest is in the offtake volumes, which it was able to secure at low cost", Munton said.

We remind, Diesel supply in Asia is set to jump in 2024 fueled by new refineries in the Middle East and robust exports from China, and is likely to outpace the region's world-leading demand growth, analysts and trade sources said. As a result, diesel prices are expected to fall, meaning Asia's refiners face a second consecutive year of sliding profit margins for the fuel used in cars, trucks and power generators.

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Finland's Industrial Union said on Thursday it planned two days of labor strike action at Neste's Porvoo oil refinery, likely shutting the plant's production unless the government agrees to change its proposed labor market reforms, said Hydrocarbonprocessing.

Finnish unions have protested in recent months against the right-wing government's plan to favor local work agreements over centralized bargains, limit political strikes and make it easier to terminate work contracts.

"We hope that the suspension of oil refining will make the government realize that it cannot put the entire burden of public finances on the shoulders of workers," shop steward Sami Ryynanen at the Porvoo refinery said in a statement.

A strike at Porvoo is scheduled for Feb. 1-2 of 2024, the Industrial Union said. "If the strike were to take place, it would lead to the shutdown of Neste's Porvoo refinery which must be carried out in an orderly and safe manner," a Neste spokesperson said in an emailed statement.

We remind, Companies across many sectors on Wednesday signed initial investment pacts totaling $18.75 B for projects they will build in India's western state of Gujarat, according to a government statement. As part of the deals, an arm of Welspun Enterprises will invest $5.11 B, partly to build green hydrogen and green ammonia facilities, documents reviewed by Reuters showed.

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In the Arabian Recycled Linear Low-Density Polyethylene (R-LLDPE) market, an ongoing trend of declining prices persists, driven by challenges related to the diminishing price support for scrap LLDPE materials and the increasing rates of post-consumer product collection, said Chemanalyst.

These factors pose obstacles to the sustainable growth of R-LLDPE recyclers. The market landscape is further complicated by a marginal weakening in the Purchasing Managers' Index (PMI). On the supply side, an oversupply situation of R-LLDPE, coupled with ample inventories, and subdued procurement activities from overseas markets during the current seasonal phase, contribute to weakened export dynamics. Suppliers are responding with consistent discount offerings to incentivize larger volume purchases. However, the downstream industry is grappling with heightened freight rates with increased shipping cost, prompted by security concerns following attacks by Yemen’s Houthi militants on commercial vessels in the Red Sea. Consequently, the European R-LLDPE market remains stable, reflecting the impact of elevated import costs for the product.

The Arabian market is grappling with an oversupply scenario, sustained by an unaltered production capacity of R-LLDPE material, which has established a bearish sentiment. This situation poses a challenge for suppliers in effectively managing excess inventory. The R-LLDPE market faces downward price pressure attributed to weakened product procurement activities during the Christmas holidays, influenced by reduced downstream industrial production and manufacturing activities for the final finished product with fewer staff members available during the holiday season. Enterprises are leaning towards immediate stock procurement rather than engaging in bulk purchases, contributing to subdued trading activities and the persistence of oversupply. The intricate interplay of these factors presents challenges for R-LLDPE suppliers, navigating a market influenced by both oversupply and specific weaknesses within certain sectors.

In the European market, the R-LLDPE sector is experiencing the impact of reduced demand from major recycling industries such as Packaging and automotive parts manufacturing industries. However, during the third week of December R-LLDPE prices remained steady due to rising import cost, but at its lower end. This influence has set off a series of reactions within the market. The reduction in industrial production and manufacturing activities has led to a decline in R-LLDPE demand from these pivotal sectors. These intricate market dynamics present considerable challenges for recyclers striving to achieve sustainable growth in the market. Furthermore, the absence of changes in the Purchasing Managers' Index (PMI) has cast a shadow over the overall growth prospects of the market, introducing an additional layer of complexity to the market landscape.

We remind, Recycled Linear Low-Density Polyethylene (R-LLDPE) market showcased a downward trend in the European market in the third week of June 2023. According to sources, the price of R-LLDPE translucent pellets decreased by (0.7%) in Germany when compared with the previous week. Overall consumption of R-LLDPE showed a deep contraction from the downstream packaging and plastic industries and failed to regain momentum in the European region.

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In November this year, China's vinyl acetate monomer (VAM) exports took a sharp nosedive, recording a staggering 81.7% drop compared to the preceding month, said Chemanalyst.

The export volume for the said month barely touched 1.88 thousand tons, an alarming contrast when set against the 10.26 thousand tons documented in October.

When analyzing the data on a year-on-year basis for November, the picture that emerges is equally disconcerting. China's exports of VAM registered a significant drop of 49.4%, boiling down to a total of 3.71 thousand tons. This downturn was accompanied by a cumulative decline of 23.1% in exports from January to November 2023, which amounted to 72.03 thousand tons. This figure represents a sizable reduction when compared to the same period in the preceding year.

Earlier in the year, June also bore witness to a similar trend in China's VAM exports. When compared to May, the VAM supplies exported to global markets contracted by 52.6%. A total of 4.38 thousand tons were exported in June, marking a considerable decrease from the 9.24 thousand tons reported in May. The year-on-year data for June further emphasized this downward trend, with exports decreasing by 25.6% and totaling 5.88 thousand tons.

The unwavering reductions in VAM exports, observed both on a monthly and yearly basis, suggest a trend possibly driven by various factors. These may include disruptions in the supply chain, alterations in market preferences, and economic instability. Stakeholders involved in the international chemical trade and industry are likely to closely monitor these developments, in a bid to comprehend the underlying causes and potential implications on the broader market.

The significant reduction in China's export of Vinyl Acetate Monomer (VAM) is an issue of concern for all stakeholders involved. The reasons behind this drastic drop need to be identified and addressed promptly to prevent further losses. The global market dynamics are constantly changing, and it is essential for businesses to stay abreast of these changes to maintain their competitive edge. The decrease in VAM exports from China is a clear indication of the volatile nature of the global trade environment.

The sharp decrease in China's VAM exports in November of this year is a concerning trend that needs immediate attention. Stakeholders in the international chemical trade and industry must closely monitor these developments and take necessary actions to mitigate the impact on the global market. To navigate the complexities of the global trade environment successfully, a keen understanding of the market dynamics and a proactive approach to addressing issues are crucial.

We remind, Vinyl Acetate Monomer (VAM) prices have surged globally due to consistent force majeure events impacting acetic acid and VAM prices. VAM prices had previously dropped by 33% YTD as the supply chain relaxed when the US Fed aggressively increased interest rates to control inflation, ranging between 5.25% and 5.5%. Another development included the US Fed hinting at 3 rate cuts in FY24, contributing to bullish markets and factoring in the subsequent price surge.

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CD Bioparticles has introduced a groundbreaking series of Functional Polystyrene Particles, catering to the diverse requirements of the pharmaceutical and life science sectors, said Chemanalyst.

With a wealth of experience in these industries, the company's latest offering includes Functional Polystyrene Particles spanning diameters from 25 nm to 750 µm. This versatile range empowers researchers across various applications, including protein adsorption, immunoassays, bio separations, and drug delivery.

The synthesis of polystyrene particles involves both emulsion and emulsion-free polymerization processes. These particles can be further enhanced through coating or conjugation achieved by passive adsorption or covalent coupling. Functionalized polystyrene nanoparticles and particles find applications in drug delivery materials, bioimaging, markers, immunoassays, and provide a flexible platform for diagnostic and bio separation applications. Various methods, such as adsorption onto plain polystyrene particles, covalent attachment onto surface-functionalized particles, and adsorption onto pre-coated particles with binding proteins, are employed for ligand adsorption.

CD Bioparticles now presents an array of Plain Polystyrene Particles with diameters ranging from 25 nm to 750 µm, exemplified by products like DiagPoly™ Plain Polystyrene Particles, 0.025 ?m (Cat. No. DMP-L001). These particles serve as standards or markers and find utility in immunoassays, latex agglutination assays, solid-phase enzyme immunoassays, and research and diagnostic tests. The meticulous control exercised by the company's skilled chemists ensures a precise monodisperse particle size distribution during the synthesis process.

Polystyrene particles possess a slight negative charge due to the surface charge resulting from initiator fragments employed in the polymerization reaction. Referred to as plain or neutral particles, these monodisperse polystyrene particles, also known as latex microspheres, serve diverse purposes such as immunodiagnostic assays, size standards for instrument calibration, and applications in cell biology.

The proprietary formulation and process technology employed by CD Bioparticles contribute to the production of microspheres with exceptional size uniformity. These polystyrene microspheres offer a flexible platform for diagnostic and bio separation applications, allowing for coating with recognition molecules such as antigens, antibodies, or peptides. Additionally, they can be loaded with hydrophobic dyes and other compounds.

The Plain Polystyrene Particles from CD Bioparticles boast a winning combination of versatility and performance. Beyond being non-toxic, odorless, and highly transparent, these microspheres exhibit a range of sizes, impressive stiffness, chemical resistance, and a remarkably uniform surface conducive to passive adsorption. Applications span from protein adsorption and diagnostic assays to electron microscopy, instrument calibration, and coating materials for contrast agents and anti-cancer drugs. The introduction of CD Bioparticles' Plain Polystyrene Particles caters to a spectrum of research needs, offering scientists a reliable and adaptable tool for diverse applications in the field.

We remind, the US Polystyrene market confronts challenges marked by a weekly dip in FAS Houston, driven by dwindling interest from its major downstream sectors. A cautious atmosphere prevails due to reduced production and surplus inventories. Drought-related export disruptions in Panama prompt stock clearance discounts. Meanwhile, the European and Chinese Polystyrene markets are undergoing a notable shift, moving from prolonged price declines to a stabilized scenario.
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