Shell puts US propylene on FM after Enterprise fire

18 February 2011 23:22  [Source: ICIS news]

HOUSTON (ICIS)--Shell has declared force majeure (FM) on US propylene, market sources said on Friday, citing storage restrictions.

The company said it was having problems accessing its wells in Mont Belvieu, Texas, following the recent fire at Enterprise Products’ natural gas liquids (NGL) plant.

The restriction is the second since December 2010, when Shell issued an FM on the monomer following an outage at its 558,000 tonne/year GO-1 Norco cracker in Louisiana.

The cracker was shut down in the last week of November 2010 and was off line for four weeks.

That restriction, which had been set at 85%, was lifted on 1 February.

Shell produces chemical-grade propylene (CGP) in the US.

Enterprise this week issued an FM on NGL deliveries and receipts for storage in its underground salt domes as a result of the fire, market sources said, citing a notice sent by the company.

The notice said the Mont Belvieu facility would be able to accept and deliver limited amounts of product, but provided no further details.

Neither Shell nor Enterprise immediately responded to requests for comment.

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By: William Lemos
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