Laleh delays Iran LDPE start-up to Jan 2008

06 December 2007 03:50  [Source: ICIS news]

SINGAPORE (ICIS news)--Laleh Petrochemical has further delayed the start-up its 300,000 tonne/year low-density polyethylene (LDPE) project at Bandar Imam, Iran, by a month to January 2008, a source close to the project said on Thursday.

The main reason for the latest delay was a problem relating to its compressor, the source said.

"The problem is expected to be resolved by January," he added.

This is the second LDPE project to be delayed in Iran. The start-up of Arya Sasol’s 300,000 tonne/year LDPE project has also been deferred to January 2008.

The start-up of the two plants was expected to slightly ease the current tightness in LDPE markets across all regions, traders said.

Laleh will source its ethylene feedstock from Marun Petrochemical's 1.1m tonnes/year cracker, also located at Bandar Imam.

"The cracker is currently running at 80% operating rate," the source said.

Laleh, a joint venture between Iran’s National Petrochemical Co, Saudi Basic Industries Corp Europe (SABIC) and Poushineh, was originally expected to go on stream in 2005.

The start-up date was later postponed to the first quarter of 2006, and then to late 2006 due to various factors, including slow progress in the construction of the cracker and utilities, and delays in the shipping of equipment.

Compressor problems prompted the company to then delay the start-up by a year to early December 2007.

By: Prema Viswanathan
+65 6780 4359

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