20 January 2012 18:58 [Source: ICIS news]
HOUSTON (ICIS)--LyondellBasell on Friday would not provide an update on the shutdown of its Equistar Chemicals ethylene oxide (EO) plant in Bayport, Texas.
The plant was shut down on Thursday night after a temporary repair on a recycle drum kickback line failed, releasing 30,000 gal (114,000 litres) of water, according to a filing with the Texas Commission on Environmental Quality (TCEQ).
“The unit was shut down and all equipment was bottled up to prevent further releases,” the filing said. “The water line is currently being repaired.”
The shutdown could further tighten the EO market, according to market players.
Talk of tightness in the EO market began about two weeks ago.
The tightening is due to a problem with BASF’s EO unit in Geismar, Louisiana, according to market players.
Sources in Europe and the US said the company declared a force majeure on EO through February.
BASF did not respond to inquiries for information.
"We have had to reduce ethylene glycol [EG] rates because of the problems with the BASF EO production," an EG producer said. "Further shutdowns would obviously cause the market to tighten further."
EO is a main feedstock in the production of EG.
Additional reporting by Leela Landress
For more on EO visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|