26 May 2006 17:15 [Source: ICIS news]
TORONTO (ICIS news)--The suspension of ethylene (C2) shipments on the Cochin pipeline from Alberta is leaving Ontario's Sarnia petrochemicals hub with a C2 deficit of some 92,000 tonne/year, a top Canadian petrochemicals analyst said on Friday.
BP announced in March it was suspending ?xml:namespace>
The 1,900-mile, 12-inch-diameter pipeline moves petrochemicals from Alberta, through the US Upper Midwest, and into Ontario.
Pipeline pressure has been limited to about 900 pounds/square inch to ensure an appropriate safety margin and thus ehylene, which has a higher vapour pressure than the products shipped on the pipeline, is not being transported.
The situation is squeezing Dow's and Imperial Oil’s downstream operations at
According to Cummings’ calculations, Dow, Imperial and Nova require C2 feedstock of some 1.228m tonne/year to feed their downstream units in southern
However, following the
This has Dow and Imperial Oil “in the unfortunate position of having to compete with each other for Nova’s spare C2,” Cummings said.
While Imperial can at least supply part of its C2 requirements from its own Sarnia cracker, Dow is totally dependent on C2 from either
One option may be for Dow to temporarily shut down its low-density polyethylene plant at
On the other hand,
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