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BP declared force majeure on US acetic acid

May 05/2011

(ICIS) -- BP declared force majeure (FM) on US acetic acid earlier this week because of problems stemming from a recent power outage at a plant in Texas City, Texas, sources said on Wednesday.

BP markets all of the acetic acid produced by a 545 KTa Sterling Chemicals plant in Texas City, in a deal that expires in 2031, according to Sterlings website. The power outage had disrupted operations at the Sterling plant, sources said.

Allocation levels and details on whether the plant is still running were unknown.

BP and Sterling Chemicals have not responded to calls seeking comment.

The acetic acid FM stemmed from a power outage on 25 April  that knocked out petrochemical and refinery operations in Texas City, sources said.

The power outage disrupted Texas City operations at a Dow Chemical complex, an INEOS styrene plant and Marathon, BP and Valero refineries.

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