Taiwan's CPC to double ethylene imports in 2010

14 October 2009 04:41  [Source: ICIS news]

TAIPEI (ICIS news)--Taiwan's state-owned Chinese Petroleum Corp (CPC) plans to double its ethylene imports in 2010 as part of a move to expand its trading business, a source close to the company said on Wednesday.

The company intends to purchase up to 60,000 tonnes of the monomer next year, the source said. CPC's ethylene imports this year were estimated at less than 30,000 tonnes as it had minimised term and spot purchases in the aftermath of the slide in petrochemical prices in the fourth quarter of last year. 

"We have started to source for suppliers of ethylene, including from the Middle East," he said in Mandarin, with regards to the producer’s gradual shift into the trading arena.

The company wants to establish regular sources of supply when it mothballs its 230,000 tonne/year No 3 cracker at Linyuan in early 2012, the source said.

The No 3 Linyuan cracker would be taken off line ahead of the commercial run of CPC's new 600,000 tonne/year No 6 cracker by the first quarter of 2013. The nameplate capacity of the No 6 cracker can eventually be expanded to 800,000 tonnes/year, the source said.

"When the No 3 cracker shuts, we will have an ethylene shortage of 250,000 to 300,000 tonnes/year," he said, as the area was already net short of ethylene as much as 70,000 tonnes/year.

Doubling CPC's ethylene imports in 2010 would also be partly due to scheduled maintenance turnaround at CPC's crackers, the source added.

CPC is expected to shut its 500,000 tonne/year No 5 cracker in Kaohsiung for scheduled maintenance in July-August 2010, while its 385,000 tonne/year No 4 cracker in Linyuan is slated to be taken off line in November-December next year. 

Its No 3 unit will be shut for a maintenance on 28 October this year.

Although CPC does not have its own downstream derivative units, the company supplies ethylene via term contracts to domestic customers in the area, including the diversified USI Far East group and monoethylene glycol maker Oriental Union Chemical Corp.

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By: Peh Soo Hwee
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