24 June 2011 23:13 [Source: ICIS news]
HOUSTON (ICIS)--Full production of purified terephthalic acid (PTA) has been restored at BP’s plants in Decatur, Alabama, a company source said on Friday.
BP’s US supply allocation on PTA was accordingly raised to 70% on 22 June, and this will probably be increased further during the week beginning 27 June.
Problems at the producer’s PTA facility at Cooper River, South Carolina, have also been resolved, the source said, and production of commercial grade tonnes was expected by the end of Friday.
The PTA allocation will not be removed until BP is certain that all plants are fully operational and able to supply the necessary quantities of PTA to polyethylene terephthalate (PET) manufacturers.
BP’s 1.1m tonne/year paraxylene (PX) plant and 1.15m tonne/year PTA plant at Decatur went down on 28 April, following a storm-related power outage. A PTA unit at the company’s 750,000–800,000 tonne/year Cooper River site did not restart on schedule after planned maintenance work.
The UK-based company declared force majeure on US PTA on 28 April, initially imposing a supply allocation of 50%. On 1 June, this was cut to 25%. BP did not declare force majeure on PX supply.
The June contract price for PTA, which is formula-linked to the contract price for upstream PX, was settled this week at 64.50 cents/lb ($1,422/tone, €995/tonne) DEL (delivered).
PTA is the principal feedstock for PET, which used in the manufacture of plastic bottles.
BP Chemicals and US-headquartered DAK Americas are the only PTA producers in the US.
($1 = €0.70)
For more on PTA and PET, visit ICIS chemical intelligence
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections