Enterprise declares force majeure on propylene

28-Apr-11

Enterprise Products Partners declared force majeure on polymer-grade propylene due to feedstock concerns stemming from recent refinery outages in Texas, as per Platts. The declaration could last through May, although no allocations were presently in effect. Power outages idled the BP, Marathon, and Valero refineries in Texas City, Texas, on Monday night and early Tuesday morning, triggering a shelter-in-place declaration that lasted through mid-day Tuesday. At least two refineries - Valero's and Marathon's - were reported to be in restart mode as of Tuesday afternoon, but it was unclear when all three would be running at full speeds. Such uncertainty prompted Enterprise to declare the force majeure. Enterprise's declaration could provide further upward pressure to already record-high spot and contract propylene values, as RGP has been in very short supply.