Colombia’s Ecopetrol cuts PE output on C2 squeeze

02 February 2007 22:56  [Source: ICIS news]

HOUSTON (ICIS news)--Columbia’s Ecopetrol reduced its production of low density polyethylene (LDPE) in half because of ethylene (C2) shortages, a company source said on Friday.

 

A heavier crude diet in Colombian refineries is favouring production of heavy ends, to the detriment of cuts that favour ethylene production, the source said.

 

This has forced Ecopetrol to cut polyethylene production by slightly over 50%.

 

Ecopetrol produced less than 2,000 tonnes of LDPE in January and expects production to be around 2,000 tonnes in February as well.

 

The company’s plant in Barrancabermeja has a nominal capacity of 60,000 tonnes/year, or 5,000 tonnes/month.

 

Last year, production was around 4,000 tonnes/month until September, when technical difficulties arose.

 

To compensate for lost production and keep key customers supplied, Ecopetrol imported LDPE from Mexico.

 

The equipment has since been repaired and the plant is ready to resume production at full capacity, but the raw material shortages have created a new obstacle for Ecopetrol.

 

Currently, the company is looking for alternatives in the US Gulf and other regional countries to keep its customers supplied.

 

However, congestion in Colombia’s Cartagena port was delaying the flow of products from the port into the country, Ecopetrol said.

By: George Martin
+1 713 525 2653

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