UpdateFormosa mulls delay in No 2 cracker turnaround after Mailiao blast

07 July 2010 10:47  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan's Formosa Petrochemical Corp (FPC) is considering to push back the scheduled August turnaround at its 1.03m tonne/year No 2 cracker in Mailiao, after an explosion on Wednesday shut down its 700,000 tonne/year  No 1 cracker at the site, a company official said.

“We are evaluating to postpone the shutdown of our No 2 cracker,” said Lin Ke Yan of Formosa, adding it was too early to decide whether the postponement would take place.

No one was injured at the explosion at FPC’s Mailiao site which occurred around noon on 7 July, a company official told ICIS news.

The explosion occurred at the facility’s BTX (benzene, toluene, xylene) hydrogen compressor and the fire spread to the No 1 cracker, market sources said.

News of the explosion sent Asian naphtha inter-month price spreads tumbling, traders said.

The spread between second-half August and second-half September contracts widened to a discount of $3/tonne from $2/tonne on Tuesday, according to ICIS data.

“The impact will be huge. Already, the naphtha market is facing huge pressure from surplus,” a trader said.

With additional reporting from Felicia Loo and Steve Tan

To discuss issues facing the chemical industry go to ICIS connect

By: Peh Soo Hwee
+65 6780 4359

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