Equate to resume normal output at Kuwait PE

17 July 2008 06:04  [Source: ICIS news]

By Prema Viswanathan 

SINGAPORE (ICIS news)--Equate Petrochemical Co expects to resume normal production at its polyethylene (PE) plant at Shuaiba in Kuwait by 10 August, a source close to the company said on Thursday.

The 550,000 tonne/year high density PE (HDPE)/linear low density PE (LLDPE) swing plant had been running at 50% operating rate since the end of June, causing its PE allocations for July and August shipments to be halved.

"The reason for the cut in production is the shortage of ethylene feedstock, caused by low availability of gas," the source said.

Gas supply has been curtailed due to a debottlenecking exercise being undertaken ahead of the start-up of Equate’s Olefins II project at the same site, due in September.

The company had also delayed its PE expansion to September due to shortage of ethylene feedstock.

Another reason for the reduction in PE operating rates was the diversion of existing ethylene supply to the new 600,000 tonne/year monoethylene glycol (MEG) plant, expected to start up later this month, the source said.

Equate is a joint venture of Kuwait’s Petrochemical Industries Co (PIC) and Dow Chemical.

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Author: Prema Viswanathan
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