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    Home > Chemial News > Company News > Dow and other manufacturers have a long way to restart their petrochemical equip

    Dow and other manufacturers have a long way to restart their petrochemical equip

    Echemi 2021-02-22

    On February 19, the frost on the Gulf Coast of the United States began to ease. Frost weather has caused the region to have the lowest temperature in more than a century, but petrochemical producers still need to spend a longer time assessing the potential damage to the device.

    A source said that factories in the area can withstand hurricanes, but because there are millions of open pipes, they cannot withstand sub-zero temperatures.

    On February 19, a large-scale plant shutdown caused the prices of propylene and ethylene to hit new highs, and several cracking plants and three propane dehydrogenation plants were shut down. The price of derivative polymers has not been greatly affected. However, sources predict that the already tight supply before the frost will be tightened sharply due to the shutdown of the device, and the prices of polyethylene, polypropylene and polyvinyl chloride, which are already high, will rise further.

    The Texas Power Reliability Commission stated on February 19 that the power shortage caused by the frost will end that day. A total of about 34 gigawatts of power generation units were shut down, of which 20 gigawatts were thermal power generation, and the rest were wind and solar power generation. During the most severe period of frost, power plants of up to 40 gigawatts were shut down.

    The following lists the impact of this frost:

     

     

    Force majeure statement

     

    ** Westlake Chemical Company: announced on February 19 that its caustic soda, chlorine, polyvinyl chloride and vinyl chloride monomer plants in the United States have encountered force majeure. The company has a caustic soda production capacity of 2.9 million tons/year, a polyvinyl chloride production capacity of more than 2 million tons/year, and a vinyl chloride monomer production capacity of 2.6 million tons/year; the chlorine production capacity of the five affected production bases exceeds 2.26 million tons/year year.

    ** Vestolit: announced on February 16 that due to the lack of vinyl chloride monomer raw materials from US suppliers, its Colombia and Mexico plants encountered force majeure. The total production capacity of the factory is 1.8 million tons/year.

    ** Formosa Plastics USA: On February 18, it announced that the 1.3 million tons/year PVC plants in Port Comfort, Texas and Baton Rouge, Louisiana had encountered force majeure. It was announced on February 17 that the production of all chlor-alkali products had encountered force majeure.

    ** Dow Chemical: February 18 announced the production of multiple intermediate chemicals in Deer Park, Freeport, Texas City and Bayport, Texas, and Harnville, Louisiana and Louisville, Kentucky Encountered force majeure. Products include vinyl acetate monomer (VAM), methyl methacrylate (MMA), glacier methacrylic acid (GMAA), butyl methacrylate (BMA), glycidyl methacrylate (GMA), 2-ethyl acrylate Base hexyl ester (2EHA), butyl acrylate (BA), etc. Dow has notified South American customers of the situation.

    ** Celanese: announced on February 18 that the production of a variety of intermediate chemicals sold to customers in the United States, Europe and the Middle East has encountered force majeure, including acetic acid, vinyl acetate monomer, ethyl acetate and ethylene-vinyl acetate copolymer.

    ** Total: It was announced on February 17 that its 1.15 million tons/year polypropylene plant in La Porte, Texas had encountered force majeure.

    ** Lyondell Basel: announced on February 15 that its polyethylene/polypropylene production in the United States has encountered force majeure.

    ** Flint Hills Resources Inc.: announced on February 15 that its polypropylene production in Longview, Texas has encountered force majeure.

    **Olin Corporation: announced on February 16 that the production of chlorine, caustic soda, dichloroethane, epoxy resin, hydrochloric acid and other products at its Freeport, Texas complex has encountered force majeure.

    ** OxyChem: announced on February 15 that its production of chlorine, caustic soda, EDC, vinyl chloride monomer and polyvinyl chloride in the United States has encountered force majeure.

    ** Ineos Olefins and Polymers America Inc.: announced on February 15 that its polypropylene production has encountered force majeure.

    ** OQ Chemicals: announced on February 15 that its production of carbonyl alcohols, aldehydes, acids and esters at its Bay City plant in Texas has encountered force majeure.

     

     

    Factory shutdown

     

    ** Dow Chemical: 750,000 tons/year PDH plant in Freeport, Texas

    ** Universal Glycol: 750,000 t/y ethylene glycol plant in Freeport, Texas

    ** Total: 1.15 million tons/year polypropylene plant in La Porte, Texas

    ** Lotte Chemical: 700,000 tons/year ethylene glycol plant in Lake Charles, Louisiana

    ** Sasol: 380,000 tons/year EO/MEG unit in Lake Charles, Louisiana

    ** Blasco: 360,000-ton/year polypropylene production facility in Freeport, Texas; 475,000-ton/year polypropylene production facility in Laporte, Texas; Texas A 225,000-ton/year polypropylene production plant in Sidlift, Sri Lanka.

    **Exxon Mobil: Three sets of polyethylene plants (high-density polyethylene and linear low-density polyethylene) in Monte Bellevue, Texas, with a combined production capacity of 1.53 million tons/year.

    **Indorama: 235,867 tons/year cracking unit in Port Neches, Texas, 1 million tons/year ethylene oxide/ethylene glycol unit, 238,135 tons/year propylene oxide unit, 988,000 Tons/year MTBE plant; 435,000 tons/year ethylene oxide plant in Clear Lake, Texas, 358,000 tons/year ethylene glycol plant.

    ** Olin Company: A combined plant in Freeport, Texas, including 3 million tons/year of caustic soda, 2.73 million tons/year of chlorine, and 748,000 tons/year of dichloroethane.

    **Western Chemicals: Ingleside, Texas with a 544,000-ton/year cracking unit, a 248,000-ton/year chlor-alkali unit, and a 680,000-ton/year dichloroethane unit, and Texa The 1.27 million tons/year polyvinyl chloride plants, 1.79 million tons/year vinyl chloride monomer plants and 580,000 tons/year chlor-alkali plants in Deer Park and Pasadena.

    ** Shin-Etsu Technology: 1.45 million tons/year PVC plant in Freeport, Texas.

    ** Formosa Plastics United States: The combined plant in Port Comfort, Texas, including three sets of crackers with a combined capacity of 2.76 million tons/year, a high-density polyethylene plant with 875,000 tons/year, and 400,000 tons/year LDPE plant, 465,000 tons/year linear low-density polyethylene plant, two sets of polypropylene plants with a combined production capacity of 1.7 million tons/year, 798,000 tons/year polyvinyl chloride plant, 1 million tons/year Annual caustic soda and 910,000 tons/year chlorine plant, 753,000 tons/year vinyl chloride monomer plant, 1.478 million tons/year dichloroethane plant, and the total production capacity operated by the brother company Nanya Plastics Co., Ltd. reached 1.17 million Tons/year of ethylene glycol plant.

    ** Exxon Mobil: Refining and chemical complex in Bay City, Texas, including three cracking units with a total capacity of 3.8 million tons/year and a polypropylene unit with 800,000 tons/year

    ** Exxon Mobil: Refining and chemical complex in Beaumont, Texas, including a 826,000-ton/year cracking unit, 225,000-ton/year high-density polyethylene unit, and 240,000-ton/year Low-density polyethylene device, 1.19 million tons/year linear low-density polyethylene device (also capable of producing a small amount of high-density polyethylene).

    ** Dow Chemical: Some of the company's production facilities in the Gulf Coast region of the United States have been shut down, but the company did not specify. Dow’s operations in the Gulf Coast region include a combined plant in Freeport, Texas, which includes three crackers with a combined production capacity of 3.2 million tons/year, and two sets of combined production capacity of 552,000 tons/year Low-density polyethylene equipment and 186,000 tons/year high-density polyethylene equipment. Dow’s combined plant in Seadrift, Texas includes a 490,000 tons/year LLDPE device and a 390,000 tons/year high-density polyethylene device. Dow told South American customers in a letter on February 16 that the company is evaluating the impact of frost on polyethylene equipment. The company said: "We know that our ability to supply various products may be affected."

    ** TPC Group: Due to the lack of steam in the boiler, the Houston plant was shut down, including a set of 544,310 tons/year butadiene plant.

    ** Motiva Chemicals: 635,000 tons/year mixed feed cracker in Port Arthur.

    ** Shell: The refining and chemical complex in Deer Park, Texas, including two cracking units with a total capacity of 961,000 tons/year.

    ** Shell: The refining and chemical complex in Norco, Texas, including two cracking units with a total capacity of 1.42 million tons per year

    ** Chevron Phillips Chemicals: 998,000 tons/year HDPE plant in Pasadena, Texas.

     

     

    price

     

    ** The spot price of polymer-grade propylene in the United States hit a record high on February 19, reaching $1.0525 per pound, exceeding the historical high of 98 cents per pound set on February 9-11. All three PDH installations in the United States were shut down, one of which was shut down due to planned maintenance, and the other two were due to frost.

    ** The MTBE spot FOB price of the Gulf of America soared to a nearly a year high of 188.31 cents/gallon on February 19, an increase of 9.1 cents/gallon, slightly lower than the high of 193.30 cents set on February 25, 2020 /gallon.

    ** Due to the shortage of supply due to the cracker shutdown, the spot price of ethylene in the United States has been rising in the previous week. On February 19, the price of FD Mont Belvieu closed at 45.25 cents per pound, an increase of 5.25 cents since February 16. FD Choctaw prices closed at 40.25 cents/lb, up 3.25 cents/lb over the same period.

    ** During the power outage, the market was deserted and US polymer prices remained stable.

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