CNOOC-Kings to run reduced rates at Huizhou PX unit to Feb’11

09 December 2010 11:15  [Source: ICIS news]

ZHUHAI, China (ICIS)--CNOOC-Kings will maintain reduced operating rates of around 70-80% at its 900,000 tonne/year Huizhou paraxylene (PX) facility until February 2011, a company source said on Thursday.

“We continue to have PX purity issues at the plant and this is likely to last until the Chinese New Year,” he said.

CNOOC-Kings ran into production problems at the end of September and had previously reduced contractual molecules to downstream purified terephathalic acid (PTA) makers – Xianglu Petrochemical and BP.

The company has been operating the facility at around 70-80% since, producing 99.5% purity PX, said the source.

Standard traded cargoes of PX in Asia is of 99.7% purity but downstream end-users can generally accept parcels of 99.5% purity for PTA production.

Meanwhile, the company remains in negotiations for 2011 term molecules with its buyers on a 50% Asia Contract Price/50% spot average of published CFR (cost and freight) Taiwan prices, minus small discounts to parity.

A Middle East-based PX maker has finalised most of its term contracts for 2011 at parity to 50% ACP/50% spot average of published CFR Taiwan prices for cargoes delivered to China and south Korea. Molecules delivered to Pakistan were said to have been sold at small discounts.

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By: Bohan Loh
+65 6780 4359



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