Water shortage shutters Venezuela resin plants

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The cyclical weather phenomenon known as El Niño has brought drought and worsened the energy crisis by limiting hydroelectric production. (Image source: ArwinJ/Wikimedia.com)

HOUSTON (ICIS)–Water shortages have shut down Venezuela’s high density polyethylene (HDPE) and linear low density (LLDPE) plants, a source familiar with the matter said on Monday.

However, the low density (LDPE) plant is operating normally, the source added.  

The plants are located at the Ana Maria Campos petrochemical complex, along the east coast of Lake Maracaibo, in Zulia state, a few miles north of Altagracia port.

Venezuela has faced problems with its power services for years, but the cyclical weather phenomenon known as El Niño has brought drought and worsened the energy crisis by limiting hydroelectric production.

The government has mandated rationing of water and energy throughout the country. By March 12, President Nicolas Maduro decreed that companies must shut down activities during the Easter week to avoid a collapse of the country’s electrical infrastructure. 

Maduro then moved public employees to a four-day workweek for the next 60 days, aimed at reducing electricity consumption by 20%.

Recently, some petrochemical processing companies said they face constant power outages, which affect production and cause losses, as the power outages occur with little or no notice.

According to the market source, this situation should not impact the domestic supply of PE, because there is enough inventory to meet current needs.

In fact, in a press release dated 21 April, Pequiven said that it has recorded positive results in the production of raw materials during the first quarter of 2016.

According to JuanCarlo Depablos, president of Pequiven, more than 275,000/tonnes of vinyls, olefins and chlorine soda were produced at the Ana Maria Campos petrochemical complex.

The olefin plants produced more than 167,000 tonnes of chemicals, including about 104,000 tonnes of ethylene and 46,000 tonnes of propylene, according to Depablos.  

Polinter exceeded its production target in the first quarter at 111%, equivalent to more than 77,000 tonnes of polyethylene. Polinter is controlled by Pequiven, which also supplies the feedstock ethylene for the PE production.

Meanwhile, Propilven produced almost 30,000 tonnes of polypropylene, the release says.