UpdateShell sets allocation on US ethylene at 90% - sources

01 December 2010 19:53  [Source: ICIS news]

Shell ethylene plant in Norco, Louisiana(adds updates throughout)

HOUSTON (ICIS)--Shell will restrict US ethylene deliveries to 90% in December following the shutdown of one of its Norco crackers in Louisiana, market sources said on Wednesday.

The company said the cracker was taken off line on 27 November because of a ruptured steam line.

The duration of the outage was not yet known, a Shell spokesperson said.

Shell has two crackers at the site with a combined ethylene capacity of 1.4m tonnes/year.

Market participants said the unit affected was the smaller cracker, GO-1, which has 558,000 tonnes/year of capacity.

One market source estimated the unit could be down for 4-6 weeks, depending on the extent of the damage.

Shell did not provide details except to say that more information would be available after an inspection of the unit is completed.

US ethylene prices remained steady on Wednesday despite news of the outage.

Ethylene financial swaps for December traded at 50.00 cents/lb ($1,102/tonne, €848/tonne), in line with December deals done at 50.00 and 51.00 cents/lb on Tuesday.

“It seems the market does not think it [the outage] is a big deal,” one market participant said.

A 10% reduction from just one supplier is relatively small, the source said, referring to the Shell restriction.

($1 = €0.77)

For more on ethylene visit ICIS chemical intelligence
For more on Shell’s plants, visit ICIS plants and projects
To discuss issues facing the chemical industry go to ICIS connect

By: William Lemos
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index