Oman Polypropylene plans shutdown at PP plant

26 November 2007 11:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Oman Polypropylene plans to shut down its polypropylene (PP) plant in Sohar for maintenance for a month in January, a source close to the company said on Monday.

 

The turnaround at the 340,000 tonne/year unit would coincide with a shutdown at the adjoining Sohar refiner, which provides propylene feedstock to the PP plant, the source added.

 

Oman Polypropylene officials were not available for comment.

 

“The company is not expected to export any PP cargoes in January due to the turnaround,” the source added.

 

“Markets [Middle East/south Asia] are currently facing supply constraints, causing [PP] prices to rise sharply,” a trader said. “Oman Polypropylene shutdown will intensify this tightness.”

 

Prices rose by up to $30/tonne in the Middle East and south Asia on Friday from a week earlier on the back of limited availability and strong demand, according to global market intelligence agency ICIS pricing.

 

Oman Polypropylene did not offer PP cargoes to the Middle East and south Asia in August, when shortage of feedstock propylene prompted it to shut down its plant.

 

Oman Polypropylene is co-owned by Oman Oil with a 40% stake, LG International with 20%, Gulf Investment with 20% and International Petroleum Investment holding a 20%.

By: Prema Viswanathan
+65 6780 4359

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