Ike delays some Motiva, Shell turnarounds

26 September 2008 18:30  [Source: ICIS news]

HOUSTON (ICIS news)--The largest base oil plant in the US has delayed its planned 45-day turnaround to early next year due to interruptions following hurricanes Gustav and Ike, market sources said on Friday.

“Motiva’s scheduled shutdown, which was supposed to begin on 25 September, is postponed until January,” said a buyer who received the news in a letter. “This means the allocation on lubes could get worse and maybe last on into February.”

The 40,300 bbl/day base oil supplier declared force majeure (FM) on Monday. The company had already been on an 85% sales allocation plan for several months, and has now revised its programme to 50% for all Group II and II+ grades, a buyer said.

A company spokesperson was unable to give exact dates for the turnaround, but did confirm its would delay maintenance at some Shell and Motiva US Gulf sites due to the effects of Hurricanes Gustav and Ike.

“Shell and Motiva have decided to defer certain turnaround maintenance activities planned for third quarter 2008 at some Gulf coast manufacturing sites,” the company said in a statement. “It also will help address customer demand as we rebuild finished product inventories.”

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By: Heather McGuire Doyle
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