Blast-hit Stavrolen PP unit faces long shutdown

Source: ICIS News

2008/04/25

MOSCOW (ICIS news)--A 120,000 tonne/year polypropylene (PP) unit at the Stavrolen petrochemical plant is set to remain shutdown until September following an explosion on 4 April, a source from parent company Lukoil-Neftekhim said on Friday.

Earlier this week, Russia's industrial safety watchdog Rostechnadzor announced the results of its probe into the blast at the PP unit in Budyennovsk, which killed four workers, and said it was caused by human error.

The watchdog estimated the damaged caused by the incident would cost the company roubles (Rb) 226m ($9.5m/€6.1m).

Following the unplanned shutdown at the Stavrolen PP unit and against a backdrop of regular maintenance at other producers’ plants, Russian domestic PP prices faced upward pressure, said industry sources.

($1 = €0.64/$1 = Rb23.58)