LyondellBasell declares PP force majeure at US Lake Charles plant

Lane Kelley

04-Mar-2015

LyondellBasell declares force majeure at Lake Charles PP plantHOUSTON (ICIS)–LyondellBasell has declared force majeure on the polypropylene (PP) line at its Equistar unit in Lake Charles, Louisiana, because of a machinery breakdown last week, according to a letter from the company obtained on Wednesday.

The letter said the force majeure was declared on 26 February and applied to “affected products” at the 460,000 tonne/year plant. The letter did not state any allocation as a result of the force majeure.

“Additional information will be provided once we have assessed our ability to supply,” the letter stated.

A buyer said the company was telling customers the line would be down for about three weeks and might not affect customer allocations.

LyondellBasell’s declaration now puts four US PP units on force majeure, the others owned by Pinnacle Polymers, Phillips 66 and INEOS. Most of the other producers have begun restarting their units, though there has been no word that the force majeures have been lifted.

US PP contracts rose by 1 cent/lb ($22/tonne) in February, partly on tight supply stemming from the force majeures. The February increase ended a string of three straight monthly declines in contract prices because of plunging oil prices late last year.

Major North American PP producers include LyondellBasell, ExxonMobil, INEOS, Total, Formosa, Braskem Americas, Pinnacle Polymers, Phillips 66 and Flint Hills Resources.

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