US Chevron Phillips declares FM on PE

HOUSTON (ICIS)–Chevron Phillips Chemical declared force majeure on polyethylene (PE), following a power outage at a unit in Orange, Texas, earlier this year, according to a letter to customers obtained on Tuesday.

The letter, dated 13 March, said the declaration stemmed from a widespread power outage that struck Orange and surrounding cities on 26-27 January.

The letter, signed by senior vice president of polymers, David Morgan, said the producer’s ability to produce PE from the gas-phase unit is currently limited.

“Therefore,” the letter added, “effective immediately and until further notice, Chevron Phillips Chemical is declaring force majeure on polyethylene produced at our Orange gas-phase unit.”

The unit has a capacity of 440,000 tonnes/year of high-density PE (HDPE), according to ICIS plants and projects.

Morgan and other officials at Chevron Phillips Chemical did not immediately respond to requests for comment.

Above image: HDPE is often used to make plastic milk bottles. Source: Steve Meddle/REX/Shutterstock