Borealis Antwerp splitter, PDH to shut for repairs by end of week

20 July 2011 11:50  [Source: ICIS news]

LONDON (ICIS)--Borealis will take its propane dehydrogenation (PDH) reactor at Kallo, near Antwerp in Belgium, off line for repair by the end of this week, a source at the Austrian polyolefins company said on Wednesday.

Its 480,000 tonne/year splitter will be shut down at the same time, the Borealis source said.

The nature of the technical problems was not disclosed, but the shutdowns are expected to last for approximately two weeks.

The PDH reactor has the capacity to produce 240,000 tonnes/year of propylene from propane feedstock.

Both the PDH reactor and the splitter were shut down for planned maintenance in January.

The shutdowns are expected to have little impact on propylene supply in Europe, other than help counteract a very long situation.

Spot propylene prices have been under tremendous downwards pressure as a result of the oversupply. Distressed trade was heard last week at €850/tonne ($1,197/tonne) CIF (cost, insurance and freight) Mediterranean. This compares with the prevailing July contract price of €1,130/tonne FD (free delivered) NWE (northwest Europe).

August contract price discussions are expected to get underway towards the end of this week. Sources have said that the direction of the settlement is much less obvious than in previous months. Naphtha feedstock prices have firmed, but downstream performance looks less than positive.

($1 = €0.71)

For more on propylene visit ICIS chemical intelligence
For more on Borealis visit ICIS company intelligence
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Click here to find out more on the European margin reports


By: Nel Weddle
+44 20 8652 3214



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