BP declares 'force majeure' on UK ethanol and ethyl acetate

30 October 2000 15:55  [Source: ICIS news]

LONDON (CNI)--BP has declared force majeure on its supplies of ethanol and ethyl acetate in the UK after last week advising customers of allocation restrictions on both products.

The force majeure emerged from ongoing problems with catalysts at the ethanol plants at Grangemouth in Scotland and Baglan Bay in Wales. BP was already suffering reduced stocks of the chemicals after production problems at Grangemouth earlier in the year.

The latest Grangemouth problems followed a maintenance shutdown of the 200 000 tonne/year ethanol plant, which is due to be restarted later this week. Grangemouth supplies ethanol to BP's ethyl acetate units at Hull in northeast England.

No shutdowns had taken place at Baglan Bay prior to the catalyst problems, but it is understood that BP is now looking to take down the 150 000 tonne/year unit for around two weeks during November. Details were not available.

A spokesman for BP confirmed to CNI on Monday that the ethanol and ethyl acetate supply problems had worsened from last week's 60% allocation status to force majeure being declared on Friday (27 October). BP officials were unable Friday to formally confirm CNI's information then on force majeure from informed sources close to the company.

Last Thursday (26 October) BP confirmed to CNI that its UK customers were facing 60% allocation restriction on supplies of ethanol and ethyl acetate. BP said then that the restriction in supply was expected to last until around early December.

By: Patrick Reynolds
+44 208 652 3214

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