FPCC runs No 1 cracker at full rates after hitch

27 July 2007 10:15  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s largest cracker operator Formosa Petrochemicals Corp (FPCC) is running its No 1 naphtha cracker at full rates and has no plans to shut the unit after experiencing a minor compressor problem two weeks ago, a company source said on Friday.

 

The unit situated in Mailiao, on the east coast of Taiwan, was operating at 97-98% capacity last week after a compressor problem brought down its operating rates to 80% two weeks ago.

 

The company’s smallest unit was ramped up to full production in the middle of this week, he said.

 

Meanwhile, FPCC has sold a total of 18 lots, or 27,000 tonnes, of spot propylene parcel in the past three weeks for August delivery, from its newest and largest No 3 cracker. It has a propylene capacity of 600,000 tonnes/year.

 

The producer is expecting to sell more spot parcels for August and September with prices of about $1,100/tonne FOB (free on board) Mailiao and above.

 

Moreover, as the company prepares for the start-up of a unit in November run by subsidiary Ningbo Polypropylene, it has plans to start delivering propylene to Ningbo from its Mailiao inventory from the middle of October.

 

The company’s No 2 900,000 tonne/year cracker will be shut down for maintenance on 3 September.

 

In related news, FPCC’s new metathesis unit, also known as an olefins conversion unit (OCU), is currently operating at only 50-60% capacity due to unstable production. All of propylene produced from this unit is channelled to its downstream acrylonitrile plant also situated in Mailiao.

By: Gina Myung
+65 6780 4359

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