Dow says 'force majeure' on TEG, Tetra may last weeks
29 September 2005 22:41 [Source: ICIS news]
HOUSTON (ICIS news)--Dow Chemical’s force majeure declarations on all grades of triethylene glycol (TEG) and tetraethylene glycol (Tetra) may last for several weeks, the company said on Thursday.
Dow declared a force majeure situation on the chemicals after the precautionary shutdown of its St Charles Operations (SCO) in advance of Hurricane Katrina and subsequent disruptions to transportation, natural gas, raw materials and supply in the storm’s aftermath.
In addition, Dow said, transportation infrastructure on the US Gulf Coast had been shut down in advance of Hurricane Rita, worsening conditions and constraining supply capabilities.
“Production of these products at the SCO location has partially resumed,” said John Smith, commercial manager, ethylene oxide and higher glycols. “Over the next several weeks, we will be working to ramp up our production at the site to normal levels, as swiftly as it is safe to do so.”
“However, even after normal operations have resumed, disruptions in natural gas, feedstocks and transportation logistics throughout the US Gulf Coast area, caused by both hurricanes, may continue to constrain supply,” Smith added. “As a result of these circumstances, Dow will be forced to continue its force majeure and product allocation for TEG and Tetra for the time being.
“Based on current assessments, the collateral effect of the storms could prolong this situation by several weeks,” Smith said.
Dow is allocating TEG to its customers at 80% of average monthly volumes and Tetra at 100%. Changes to original timing estimates and allocation levels as announced following Hurricane Katrina may yet be revised, Dow said.
St Charles Operations is owned by Dow subsidiary Union Carbide.
Dow has a total global production capacity of 1.9m tonne/year for ethylene oxide (EO) and 1.77m tonne/year for ethylene glycol.
By: Brian Ford
+1 713 525 2653
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
Related Articles
- 24 Feb 06 17:25 Tetra Technologies Q4 op income doubles to $17m
- 21 Feb 06 21:51 Tetra Technologies to expand fluids business
- 13 Dec 05 23:19 Union Carbide identifies causes of EO plant shutdown
- 27 Sep 05 21:53 'Force majeures' multiply in wake of Hurricane
- 04 Oct 05 16:31 BASF declares 'force majeure' on Mexico styrenics
- 30 Sep 05 22:43 Rita: Cabot tallies $5m in costs to carbon black plants
- 30 Sep 05 21:21 Rita: BASF issues 'force majeure' on ethylene
- 29 Sep 05 21:04 US natgas prices surge 9.6 cents on tight supplies
- 29 Sep 05 19:34 Double hurricane blows to affect US economy into 2006
- 26 Sep 05 22:56 Rita: Aftermath to intensify commodity chem tightness
- 26 Sep 05 22:36 Rita: More Gulf Coast chem plants in start-up
- 26 Sep 05 00:00 Katrina whips up PE, PP, PET prices.
- 25 Sep 05 23:50 Rita: Dow, BASF to begin restart operations
Latest News
- 30 Nov 09 22:38 Initial US Dec benzene contract settles at $2.98/gal
- 30 Nov 09 22:36 US biofuels sector awaits key federal ruling on E-15
- 30 Nov 09 22:31 US corn harvest remains behind schedule, more than 20% left
- 30 Nov 09 22:11 Brazil’s plastics industry sees 5% growth in 2010
- 30 Nov 09 21:12 ExxonMobil strikes deal with Albemarle for polyalphaolefins
Paul Hodges goes to the junction of Wall St and the chemical industry.
ICIS Chemicals and the Economy