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French oil major TotalEnergies has announced its decision to permanently shut down two ethylene-producing flexible steam crackers at its integrated refining and petrochemical platform in Antwerp, Belgium, by 2027, according to a company statement. The combined capacity of these ethylene crackers is 338,000 barrels per day (bpd).
This decision follows the non-renewal of an offtake agreement for the unit's ethylene production by a long-term third-party customer, effective at the end of 2027, leaving no market for the crackers' ethylene output. The company stated that the decision was made in its best business interest, in light of mounting pressure from the cancelled offtake agreement and ongoing projections of a sustained oversupply of ethylene in the European market.
The closure of the older steam crackers at Antwerp aligns with TotalEnergies’ strategy to concentrate on the operation of the site's newer cracker. This facility currently produces ethylene feedstock for the company's existing Belgian petrochemical plants located in Antwerp and Feluy. The Feluy site utilizes ethylene to manufacture high-performance polymers and operates production units for polypropylene, polyethylene, and expanded polystyrene.
Employees’ representation
The company proposes to begin the legally required employee consultation and notification process towards the end of April with representatives of the Antwerp platform’s employees regarding the proposed cracker shutdown. The reconfiguration project is expected to proceed without any layoffs of the 253 potentially impacted employees, according to the operator. The existing 253 employees of the affected plant will be offered either a retirement package or an internal transfer.
Each affected employee will be “offered a solution aligned with their personal situation: retirement or an internal transfer to another position based at the Antwerp site,” TotalEnergies stated. The older of the Antwerp platform’s two steam crackers, which was upgraded in 2017 to flexibly process ethane, butane, or naphtha as feedstock, has a combined capacity to produce 1.1 million tonnes per year (tpy) of ethylene.
Long-term strategy
The planned unit closure aligns with TotalEnergies’ long-term transformational strategy of gradually transitioning its operations away from its traditional oil and gas focus, in line with its goal to achieve carbon neutrality across all its businesses by 2050.
“By adapting and regularly investing in our Antwerp site, we are securing its long-term future and ensuring that this integrated refining and petrochemicals platform remains TotalEnergies’ most efficient in Europe. Whether the goal is to meet market challenges or contribute to decarbonization and the energy transition, the platform can be reconfigured to remain competitive and continue providing jobs well into the future,” said Ann Veraverbeke, managing director of TotalEnergies Antwerp.
Weak demand
The chemical industry across Europe has been grappling with weak demand and high input costs in recent years, prompting several firms to close or repurpose units. Energy costs have become unbearable in Europe since Russia’s invasion of Ukraine in February 2022, followed by sanctions on Russian energy supplies to the European Union.
Recently, ExxonMobil Chemical France closed its steam cracker and petrochemical production facility at Port Jerome in the country’s north, while last week, chemical firms LyondellBasell and Covestro announced the permanent shutdown of some production units in the Netherlands. TotalEnergies stated that the cracker set to be closed had historically produced most of its ethylene for a single major client, who declined to renew a contract expiring in 2027.
Configuration of operations
TotalEnergies’ Antwerp platform has provided an update on its future investments and announced plans to reconfigure its petrochemical operations to enhance competitiveness. A key industrial site for TotalEnergies for more than 75 years, the Antwerp platform operates on an integrated business model, ensuring the resilience of its operations.
The Antwerp platform is accelerating its de-carbonization efforts through the adoption of green hydrogen. As part of a 200 MW Air Liquide electrolyzer project, TotalEnergies has signed a tolling agreement for 130 MW, dedicated to the annual production of 15,000 tons of green hydrogen for its Antwerp platform. Upstream of the electrolyzer, TotalEnergies will supply green electricity through its OranjeWind offshore wind project. Scheduled for completion by the end of 2027, the project is expected to reduce carbon dioxide (CO2) emissions at the Antwerp site by up to 150,000 tons per year and contribute to the European Union's renewable energy targets (RED III) for transport.
Energy transition
Antwerp is contributing to its aviation customers’ energy transition by helping them meet the challenge of reducing their carbon footprint through the production of sustainable aviation fuel (SAF). An initial project to produce 50,000 tonnes of SAF annually via co-processing will be implemented at the Antwerp platform in 2025. Co-processing is a SAF production method that enables the simultaneous treatment of hydrocarbons and biomass in a conventional refining unit.
For process electrification and battery-based energy storage, the platform is contributing to the de-carbonization of its industrial operations and addressing the growing need to balance Belgian and European high-voltage transmission grids. With a power rating of 25 MW and a capacity of 75 MWh, Antwerp’s battery storage system is TotalEnergies’ largest in Europe. Commissioned last year, it helps offset the intermittency of renewable energy sources, encouraging their development.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
