Malaysia’s EMSB, Optimal cut cracker runs on feedstock shortfall

13 December 2010 08:16  [Source: ICIS news]

SINGAPORE (ICIS)--State-run Ethylene Malaysia (EMSB) and Optimal Olefins are running their two ethane crackers at Kerteh in Terengganu state at reduced rates of around 70-80% due to lower feedstock supply, a source close to both companies said on Monday.

A planned maintenance at one of the Malaysian offshore gas fields had drained off ethane supply to the crackers, he added. Details about the gas field were not immediately available.

The turnaround, which started in mid-November, would end by late December, the source said.

“There is a shortage of ethane,” he said. “Prior to that, the crackers operated at full capacity.”

EMSB runs a 400,000 tonne/year ethane cracker at the site, while the Optimal Olefins cracker has a nameplate capacity of 600,000 tonnes/year.

Meanwhile, ethylene prices were assessed $30/tonne (€23/tonne) higher at $1,060-1,100/tonne CFR (cost & freight) SE (southeast) Asia in the week ended 10 December, amid strong demand in the region, ICIS data showed.

($1 = €0.76)

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By: Felicia Loo

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