Limited propylene supplies leads to force majeure at PP plants in Europe

25-Mar-15

Limited propylene supply in Europe has led to two force majeures: Borealis declared force majeure on polypropylene deliveries from its plant in Schwehaschat, Austria, due to a force majeure situation at its third-party monomer supplier, a company spokeswoman was reported in Platts. A lack of monomer supply also led to a force majeure declaration on polypropylene production at LyondellBasell's PP unit in Tarragona and Ferrara, Italy. It was still unclear if the plants had emerged from it. At least 15% of European propylene production from crackers is now offline, including the largest of Total's three crackers at its Antwerp complex and its cracker in Feyzin, France; Repsol's cracker in Puertollano, Spain; the largest of Dow's three crackers in Terneuzen, The Netherlands; and Versalis' cracker in Dunkirk, France. Chemical-grade propylene supply, produced at crackers and as a byproduct of refinery operations, saw greater pressure on supply due to production issues across oil refineries in Northwest Europe and the Mediterranean. Among those refineries in maintenance were Germany's largest, Mineraloelraffinerie Oberrhein (MIRO) in Karlsruhe; Shell's in Pernis, The Netherlands; ExxonMobil's in Port Jerome, France; Total's in Lindsey, UK; and Isab, Italy, 80%-owned by Lukoil and 20% owned by ERG.