17 May 2012 07:52 [Source: ICIS news]
By Becky Zhang
Farsa runs a 445,000 tonne/year MEG plant at Asaluyeh, while Marun operates a 400,000 tonne/year MEG unit at Bandar Imam.
“They have to shut [production] because they cannot find vessel to ship out the material. Ship owners would not like to take the huge risks to move these cargoes without insurance,” an industry source said at the sidelines of the 34th annual Asia Petrochemical Industry Conference (APIC) in
Farsa Petrochemical and Marun Petrochemical were not immediately available for comment.
Effective 1 May, the EU banned the issuance of protection and indemnity (P&I) insurance to major ship owners that deal with large quantities of Iranian liquid chemicals, including
“The insurance ban could last for a certain period of time,” the source said, adding that this ban could be prolonged until after
International sanctions on Iran have been tightening on the country's suspected development of nuclear weapons.
MEG supply from
“Some Chinese ship owners can deliver Iranian material as they are able to get insurance from
Early this week, China-based commodities trader Sinochem has been working out on shipping issues and is likely to ship out Iranian material soon, a company source said.
Only the smallest MEG producer in
“They can sell to
Irak can still transport small MEG quantities of container and drummed cargoes, said a company source.
The two-day APIC 2012 runs from 17-18 May.
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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