Japan Energy cuts benzene, PX ops rates further

03 October 2008 09:23  [Source: ICIS news]

SINGAPORE (ICIS news)--Aromatics major Japan Energy has slashed operating rates further at its Chita and Mizushima-based benzene and paraxylene (PX) units on poor economics, said a company source on Friday.

 

The 200,000 tonne/year benzene unit and the two lines producing a total of 400,000 tonnes/year of PX were currently running at 70%, a drop of 10-20% from the levels reported earlier in August, the source said.

 

The company cut operating rates in Chita from September as production economics were poor and would continue to run at lower rates until margins improve, the source added.

 

There were no spot cargoes available and term supplies to customers have been reduced, he added.

 

In Mizushima, the company had implemented a similar cut in production rates at its 100,000 tonnes/year benzene unit.

 

The plant, which used the hydro-dealkylation (HDA) process to produce benzene, was currently running at the minimum level of 30%, the source said.  

 

Meanwhile, the company would restart its Kashima-based lines producing benzene and PX from the end of October after a 50-day long maintenance shutdown, a source said.

 

The company’s Kashima facilities include a 190,000 tonne/year benzene unit and two PX lines each producing 190,000 tonnes/year and 400,000 tonnes/year respectively.

 

Other key benzene and PX producers in Japan include Nippon Oil, Idemitsu Kosan and Taiyo Oil.

 

Bohan Loh contributed to this story

 

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By: Mahua Chakravarty
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