Recent developments
UAE downstream build‑out
In the UAE, TA’ZIZ executed $28.5bn multi‑year offtake and feedstock agreements across methanol, PVC chain products and natural gas, anchoring a 4.7 mtpa complex by 2028. ADNOC’s Industrial Resilience Program will localize priority items and it announced AED200 billion in project awards for 2026–2028. Borouge International formation was completed, with Borouge assuming Borouge 4 operational control.
Gas supply shifts
European gas feedstock outlook improved as Equinor began Eirin gas production via Gina Krog, while OMV Petrom and ROMGAZ advanced Neptun Deep pipelaying toward 2027 first gas. In Brazil, Petrobras started Búzios 8 (P‑79) and reported a 1Q26 production record; added gas export via Rota 3 supports domestic supply.
Portfolio realignment
Producers adjusted portfolios: LyondellBasell sold select European olefins and polyolefins assets to AEQUITA, bp agreed to sell the Gelsenkirchen refinery, and SABIC announced petrochemicals divestments in Europe alongside cost measures. OMV reported stronger polyolefin margins and moved Borouge International to equity accounting.
Lower‑carbon and tech
INEOS Acetyls and Sandpiper planned a 1.1 MTPA blue methanol project in Texas City. Dow’s Path2Zero cogeneration FEED advanced with post‑combustion CCS. Clariant launched the CATOFIN 1000 PDH catalyst; Sinopec introduced the Fenghuo industrial AI agent; and BASF’s Verbund analysis underscored energy‑price vulnerability.
Markets and logistics
Supply chains faced volatility around the Strait of Hormuz. Borouge rerouted shipments and held volumes for expected higher Q2 pricing. Neste cited extreme price volatility without direct disruption. FUCHS flagged bottlenecks and increased working capital, and OMV recorded one‑off operational hedging losses from disrupted crude flows.