UpdateIke sparks LyondellBasell VAM FM

16 September 2008 20:29  [Source: ICIS news]

(Adds background, details)

HOUSTON (ICIS news)--LyondellBasell has declared force majeure (FM) on vinyl acetate monomer (VAM) due to the shutdown of its LaPorte plant in Texas, a buyer said on Tuesday.

The company’s 380,000 tonne/year La Porte plant accounts for about 22% of US VAM production, according information from ICIS plants and projects.

The buyer said LyondellBasell had sent a letter to customers, but it did not provide details on allocation levels or when the plant would restart. The company would not comment.

The La Porte plant, with a 380,000 tonne/year capacity, was closed last week along with many other petrochemical plants in the Houston area due to Hurricane Ike. 

The buyer said Lyondell had issued several FMs, on ethylene and ethylene glycol ethers as well as VAM.

LyondellBasell spokesman David Harpole said the company would not discuss letters to customers.

The entire US VAM production, totalling close to 1.7m tonnes/year, comes from five plants in the Houston area, owned by LyondellBasell, DuPont, Dow Chemical and Celanese, according ICIS plants and projects.

Harpole said 13 of LyondellBasell’s 14 Texas plants had been shut down due to Ike, with the lone facility in operation at Corpus Christi.

Harpole said the company was still inspecting plants for damage and had not yet found any serious damage.

LyondellBasell expected to have the plants running “in the fairly near future”,  Harpole said, but he said he could not be more specific.

The latest US VAM third-quarter contract prices were assessed at 67-71 cents/lb ($1,477-1,566/tonne,  €1,034-1,096/tonne), according to global chemical marketing intelligence service ICIS pricing.

($1 = €0.70)

For more on vinyl acetate monomer visit ICIS chemicals intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Lane Kelley
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly