SABIC to shut Geleen butadiene unit next week

21 January 2011 11:02  [Source: ICIS news]

LONDON (ICIS)--SABIC Europe is planning to take its butadiene (BD) extraction unit at Geleen in the Netherlands offline next week for maintenance, a company source said on Friday.

The source said that they had “decided to go down at the beginning of week 4 [24 January]” because of  some minor technical problems and that the outage would last a week.

“This is a minor issue and we are confident we can fix it,” the source said, adding that they would be able to manage supply without any impact to customers.

The BD extraction unit has the capacity to produce 130,000 tonnes/year of butadiene, according to ICIS data.

Negotiations for the February monthly contract price (MCP) were beginning to get under way on Friday.

Although no specific figures were mentioned, many sources anticipated an increase from the January MCP of €1,340/tonne ($1,811/tonne) FD (free delivered) NWE (northwest Europe) based on a firm supply and demand balance as well as the ongoing strength in the US and Asian BD markets.

Spot levels were pegged around €1,400-1,450/tonne FD NWE.

($1 = €0.74)

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By: Nel Weddle
+44 20 8652 3214



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