Petronas declares force majeure on Labuan methanol supply

20 July 2010 04:02  [Source: ICIS news]

SINGAPORE (ICIS news)--Malaysian state-owned oil major Petronas declared a force majeure at its 2.36m tonne/year methanol production facility in Labuan on 16 July, after its supply of feedstock natural gas was cut, a company source said on Tuesday.

The feedstock supplier of the facility – Murphy Oil – suffered some technical problems at its Kikeh field, said Gilbert Tan, an operations and planning manager at the Labuan facility.

"We've stoppped production at the two lines... and expect the gas supply to resume by Friday," Tan said.

Petronas has a 1.7m tonne/year and a 660,000 tonne/year methanol lines at the site.

With additional reporting by Heng Hui

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