French strikes impact ethylene, propylene, BD output – sources

Nel Weddle

20-May-2016

LONDON (ICIS)–Some cracker operators have declared force majeures on deliveries of ethylene, propylene and butadiene (BD) from sites in France because of strike action, players said on Friday.

Force majeures have been issued from Feyzin, Gonfreville and Lavera, according to sources – confirmation from the operators at these sites has not so far been forthcoming and their policy is usually not to comment about production.

“A few sites have declared force majeure on their ethylene, propylene supply,” a source said.

It added, “this is because they cannot ship product outside of the site [and] production has been reduced.”

While the force majeures at the Feyzin and Gonfreville sites – both owned by Total – were said a direct result of the strike action, there was some comment that technical issues at Lavera – a Total, INEOS joint venture – were also at play.

“Other sites are in trouble,” the source added.

A wave of strikes across France in protest of new labour laws started earlier in the week and has led to restrictions to rail, road and air travel around the country.

Refining, road transport, civil aviation and railway unions mobilised to strike in protest at reforms to the country’s labour laws, forced through by French President Francois Hollande without the assent of a parliament. The reform bill was approved through a bypass of parliamentary vote.

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