Indian Oil runs PE, PP units below 50% on feedstock shortage

07 July 2011 11:02  [Source: ICIS news]

SINGAPORE (ICIS)--State-owned Indian Oil is running both its polyethylene (PE) and polypropylene (PP) plants at Panipat at below 50% because of a lack of ethylene and propylene supplies, a company source said on Thursday.

Indian Oil is currently operating only one out of two lines at each of the PE and PP plants.

The lack of feedstock was because of an oil shortage at its 657,000 tonne/year naphtha cracker, according to another source close to the company. The first company source did not confirm this, however.

The total nameplate capacity of the PP facility is 600,000 tonnes/year, while the high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing unit can produce 650,000 tonnes/year, the company source said.

Previously, the polymer units were operating at 70% after they were restarted following a brief turnaround.

“Until we can solve the problem at our cracker, only one line of each PE and PP facility will run,” he added.

“We will start to offer [material] for exports from next week, after a clearer price trend emerges,” he said.

Domestic sales were heard to be slow as the producer, which was facing inventory pressure, is no longer in a hurry to sell, local market players said.

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By: Ong Sheau Ling
+65 6780 4359

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