Shell Singapore declares force majeure on base chemicals
Nurluqman Suratman
02-Dec-2015
By Yeow Pei Lin and Nurluqman Suratman
(adds details throughout)
SINGAPORE (ICIS)–Shell confirmed on Wednesday that it
declared a force majeure on supply of base chemical
products from its Singapore site effective 1 December,
because of a technical issue at its cracker complex in Pulau
Bukom.
It was the second time since mid-October that
Shell had to disrupt supply of base chemicals to
customers from its Bukom site.
“Our manufacturing and supply chain teams are working to
resume normal operations and supply as soon as possible, so
as to minimise the potential impact on our customers and we
are keeping our customers updated,” a company spokesperson
said in an e-mailed statement to ICIS on Wednesday.
Market sources said that the cracker was shut last weekend
and could remain down for up to three weeks since
Shell has been seen seeking December cargoes of
ethylene and propylene from the spot import markets.
The company’s cracker in Bukom has an ethylene capacity of
960,000 tonnes/year and a propylene capacity of 450,000
tonnes/year. It is part of the Shell Eastern Petrochemicals
Complex (SEPC), a fully-integrated refinery and
petrochemicals hub across the Bukom and Jurong Islands in
Singapore (please see table below).
Shell had said on 27 November that its Pulau Bukom
manufacturing site in Singapore would experience some
controlled flaring over a few days
due to maintenance works, but provided no details on
the operational status of the different units at the
complex.
Market players said that the cracker outage would support the
spot prices of propylene and ethylene in southeast Asia, with
Shell currently in the market for prompt cargoes.
Shell was heard to have purchased a prompt first-half
December arrival propylene cargo this week after making
similar bookings in the previous week.
The company is also understood to be sourcing for ethylene
cargoes for December arrival, after it earlier covered a
portion of its requirements via pipelines from other
Singapore-based producers.
A southeast Asia-based polyols buyer said that it has been
informed by Shell Singapore that its polyols shipment will be
delayed for two weeks.
Meanwhile, Shell
may cut production at its 750,000 tonne/year
monoethylene glycol (MEG) plant in Singapore this month
on reduced supply of feedstock ethylene, market sources
said.
The bulk of the company’s ethylene output in Bukom goes into
its own downstream MEG production.
The current run rates of the MEG unit could not be
immediately identified.
Product | Company | Country | Location | Capacity | Unit |
Ethylene oxide | Shell | Singapore | Jurong Island | 140,000 | tonne/year |
Benzene | Shell Eastern Petrochemicals Complex – (SEPC) | Singapore | Bukom | 230,000 | tonne/year |
Butadiene | (SEPC) | Singapore | Bukom | 155,000 | tonne/year |
Ethylene | (SEPC) | Singapore | Bukom | 960,000 | tonne/year |
Propylene | (SEPC) | Singapore | Bukom | 450,000 | tonne/year |
Ethylene Glycol, Mono | (SEPC) | Singapore | Jurong | 750,000 | tonne/year |
Ethylene oxide | (SEPC) | Singapore | Jurong | 550,000 | tonne/year |
Isopropanol | (SEPC) | Singapore | Bukom | 75,000 | tonne/year |
Propylene | (SEPC) | Singapore | Bukom | 90,000 | tonne/year |
Xylene, mixed | (SEPC) | Singapore | Bukom | 60,000 | tonne/year |
Propylene glycol | (SEPC) | Singapore | Seraya | 90,000 | tonne/year |
Source: ICIS
Additional reporting by Michelle Lim, Clive Ong, Matthew
Chong and Eric Su
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