15 May 2008 16:29 [Source: ICIS news]
By Nigel Davis
LONDON (ICIS news)--?xml:namespace>
Yet the devastation wrought in the province has hit the sector hard bringing major logistics and production problems.
As the human tragedy unfolds the speed at which survivors can be rescued and infrastructure links restored has proved to be of paramount imortance.
ICIS news has reported this week on the on-going crisis.
But rail, road and telecommunications links to neighbouring provinces have been cut. The status of chemicals production in some locations is uncertain after earlier shutdowns. The earthquake has hit
Two fertilizer plants operated by Ying Feng Co and Chuan Xin Yun Fang collapsed in the quake trapping workers and releasing deadly ammonia.
A company spokesman said that PetroChina’s operations in the area, including its chemicals plants, had all faced disruption.
Aftershocks have continued to cause great concern leading to production plant closures as a precautionary measure.
Telecommunications links, however, between the county and the rest of
Production is slowly being resumed at refineries and chemicals plants across the province but it is bound to take time before vital transport links are repaired and product and raw materials are able to flow freely again.
Initial reports have suggested considerable impact on some local
Polymers supply has tightened across
Melamine prices were expected to soar following the disaster as major Chinese producers Sichuan Chemicals and Sichuan Meifeng were forced to halt production.
A $20bn price tag has already been put on the disaster, and that is likely to rise.
Yet economists and others see little in the way of a macro or long-term impact.
Most (economic) concerns remain focused on the continued weakening of
That having been said, however, there are the first indications that producers might be re-assessing project plans for
On Thursday, a PetroChina official said the company may scrap plans to build a 10m tonne/year refinery and 800,000 tonne/year ethylene plant in the province. It signed a framework agreement with the
Other plans for this vulnerable area, and possibly for other parts of
It has been suggested that project approvals in earthquake prone areas might be more difficult to obtain in future. Enforcement is down to
There is no indication, as yet, that some plants in the earthquake zone might have been more vulnerable than others, but a longer-term tightening of construction and safety rules can be expected.
Have you personally or your business been impacted by the earthquake in
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