| WTI Crude | $39.12/bbl | +6.0% |
| Brent Crude | $39.78/bbl | +4.7% |
| HH Nat Gas | $1.92/MMBtu | +36.2% |
| MB Propane | $0.51/gal | +4.9% |
| 3:2:1 Crack | $11.62/bbl | +6.2% |
LyondellBasell spends $2 billion on a new JV
Global petrochemical corporation, LyondellBasell, has announced that will be paying Sasol $2 billion to convert some of Sasol's Lake Charles chemical business into a 50/50 joint venture.
Why did Sasol sell?
Sasol has been struggling with high debt (nearly $12 billion) and these lower crude oil prices haven't been helping. In its own words, "This transaction represents a significant step for Sasol in achieving its financial and strategic objectives by reducing net debt,". The assets just sold had been under construction for quite some time and just recently became fully operational (but underwent a $2.3 loss last year).
What's in it for LyondellBasell?
The joint venture (which will be operated by LyondellBasell employees) is technically an integrated polyethylene joint venture. This means that LyondellBasell has a 50% stake in the ethane steam cracker (that produces cost-advantaged ethylene) and the polyethylene units that follow it downstream.
Read the press release here.
Eastman's chemically recycled plastic to become cosmetics bottles
US-based chemical company, Eastman, has announced the first market use of its chemically recycled polymer called Eastman Cristal™ Renew copolyester.
Some context:
Eastman is using methanolysis to break down waste polyethylene terephthalate (PET) into its monomers. Those monomers are then reintroduced to complete the transformation of "waste plastic back into plastic that is indistinguishable from virgin product". In part, this is possible because only half of the monomers Eastman is using are coming from the recycled source.
The details:
Eastman's new polymer will first be marketed by France-based Qualiform (one of the world's largest producers of cosmetics packaging). So now current customers of Qualiform (the cosmetics companies) have the option to use recycled plastics for their packaging.
Read the press release here.
BASF closes the $3.7 billion sale of its construction chemicals
German chemical giant, BASF, has announced the closing of a deal announced at the end of 2019—the sale of its Construction Chemicals business.
What you should know:
BASF sold the business for $3.7 billion to a private equity firm, Lone Star Funds, because it would allow "the Construction Chemicals team [to] focus on a growth path with an industry-specific approach.". The idea is that Lone Star Funds will take the now standalone construction chemicals business and create more value from it than BASF would have been able to.
Anything else?
The announcement today confirmed that the sale went through with no issues, and mentioned the business's new identity as MBCC Group. The company has about 7,500 employees and operates production sites and sales offices in over 60 countries.
Read the press release here.