Iran’s Jam trims cracker operating rate on feedstock woes

22 April 2010 12:59  [Source: ICIS news]

SINGAPORE (ICIS news)--Iran’s Jam Petrochemical has reduced production at its 1.32m tonne/year cracker at Assaluyeh due to feedstock issues, a source close to the company said on Thursday.

“The cracker has been running at close to 50% since two to three days ago and this situation may last seven to 10 days,” the source said.

Jam – the largest cracker in the country – was earlier operating at above 60% of its capacity.

The source said derivative plants at the same site were also affected by the lower ethylene output and had also cut production.

Jam’s downstream units include a 300,000 tonne/year linear low density polyethylene (LLDPE)/high density PE (HDPE) swing plant and a 300,000 tonne/year HDPE plant.

The cutbacks at Jam are expected to exacerbate the tight supply situation in Iran as another 1m tonne/year cracker operated by Arya Sasol Petrochemical began two to three weeks of maintenance in mid-April.

Ethylene exports from Iran could be reduced to around two cargoes this month, down from five cargoes in March, the source said. The typical size of each cargo is around 5,000 tonnes.

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By: Peh Soo Hwee
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