LyondellBasell declares force majeure on US BD following Harvey

Source: ICIS News


HOUSTON (ICIS)--LyondellBasell declared force majeure on US butadiene (BD) due to production lost in the wake of Hurricane Harvey, the company said in a Monday letter to customers.

LyondellBasell has shut down or partially shut down BD production at its facility in Channelview, Texas, due to effects from Hurricane Harvey, it said in the customer letter.

Channelview is located just east of Houston in Texas, near the US Gulf Coast.

Hurricane Harvey made landfall on the Texas coast on Friday and was downgraded to a tropical storm over the next two days as it meandered through southeast Texas. The storm has caused historic flooding in the Houston area.

The extent of the impact on BD production and supply has not yet been defined, LyondellBasell said in the letter.

"We are currently evaluating the impact of this event on our production capability," the letter said.

The Channelview facility has a BD capacity of 390,000 tonnes/year.

It is unknown if production of other products at the facility have been affected. The Channelview cracker has an ethylene capacity of about 1.9m tonnes/year and a propylene capacity of about 1.5m tonnes/year.