05 September 2006 17:46 [Source: ICIS news]
TORONTO (ICIS news)--Canada's Imperial Oil said on Tuesday its Ontario-based chemicals operations will not - unlike Dow Chemical’s - be impacted by the loss of ethylene feedstock through the Cochin pipeline.
“We have the ability to get sufficient ethylene feedstock from within the ExxonMobil network,” Imperial spokeswoman Janet Maaten told ICIS news.
Dow Chemical announced last week it would shut down all its chemicals plants at Sarnia by the end of 2008 due to the lack of ethylene feedstock following the suspension of ethylene shipments through the Cochin pipeline.
The 1,900-mile, 12-inch-diameter Cochin pipeline has moved petrochemicals from Alberta, through the US Upper Midwest, into Ontario. BP, which operates the pipeline via two subsidiaries, earlier this year suspended ethylene shipments, citing stress corrosion cracking.
Maaten said that Imperial in the past procured part of the feedstock requirements for its 450,000 tonnes/year polyethylene plant at Ontario’s petrochemicals hub in Sarnia via the Cochin line. Imperial's own cracker in Sarnia supplies only some 70% of the PE plant’s feedstock requirements, she added.
Calgary, Alberta-based Imperial Oil is majority-owned by ExxonMobil. The company is primarily an oil and gas firm but it also has a cracker and a polyethylene plant in Sarnia. Imperial’s Toronto-listed shares were priced at Can$41.71, down 0.97% in early Tuesday afternoon trading.
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