BP raises acetic acid sales allocations after Texas plant restart

31 August 2012 19:43  [Source: ICIS news]

HOUSTON (ICIS)--A Texas acetic acid plant is back up following a July shutdown on production issues, and customer sales allocations have been raised, BP said on Friday.

However, a force majeure on the material produced by the plant was still in effect, BP said.

BP spokesman Scott Dean said the 590,000 tonne/year Texas City plant restarted almost two weeks ago.

“We are still in force majeure,” he said, “but have raised the allocation to customers.”

Dean did not provide details on allocation levels.

BP sells acetic acid produced by the Eastman Chemical plant in Texas City.

BP has an agreement to buy all of the acetic acid produced by the Eastman plant through December 2031.

BP said in a late July customer letter that the plant shut down because of a problem with a carbon monoxide unit. 

US acetic acid spot prices have jumped by an average of 16% to $615-715/tonne (€492-572/tonne) since BP declared the force majeure.

Acetic acid is a major raw material for vinyl acetate monomer (VAM), which is an ingredient in paints and coatings.

Major US acetic acid sellers include BP, Eastman Chemical and Celanese.

($1 = €0.80)

By: Lane Kelley
+1 713 525 2653

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