Oman Polypropylene unit outage tightens PP market

06 December 2007 12:36  [Source: ICIS news]

SINGAPORE (ICIS news)--Oman Polypropylene shut down its polypropylene (PP) plant in Sohar on Wednesday, a month earlier than expected, due to an outage at its feedstock provider, Sohar Refinery, and will hit Middle East supplies, sources close to the companies said on Thursday.

  

Around 30,000 tonnes of PP would be lost during the shutdown, tightening the already restricted supply of PP in the region, the sources said.

 

During the month-long shutdown, the 340,000 tonne/year plant will undergo a maintenance turnaround – which was earlier scheduled to start in January 

 

“The Sohar Refinery, which provides propylene feedstock to the PP plant, will only be restarted by 25 December. It will take a week longer for propylene to be made available to Oman Polypropylene,” one of the sources said.

 

Oman Polypropylene officials were not available for comment.

 

“The company is not expected to export any PP cargoes in December due to the shutdown,” a second source said.

 

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 service ICIS pricing.

 

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% share.

 


By: Prema Viswanathan
+65 6780 4359



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