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Total aims to avoid fuel shortage as strike escalates

November 11/2019

MOSCOW (MRC) -- French energy major Total said it was taking measures to avoid fuel and other products shortages after striking workers blocked distribution from its 110,000 barrels-per-day Feyzin refinery, reported Reuters.

CGT union workers at the refinery near the city of Lyon have been on strike since early October over potential job cuts, prompting a halt in production. On Friday, the workers decided to block distribution from the refinery.

"Total is making every effort to ensure that the strike affecting the Feyzin platform does not have any impact on the supply of its customers in the Lyon region," the company said in a statement.

It added that there were no planned job cuts but it intends to halt a heavy fuels production unit by 2021 due to falling demand for the product.

It said the ongoing strike had led to the shutdown of nearly all refining units and only the steam cracker was operating at minimum capacity.

As MRC informed earlier, Total has disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

Total is also developing a USD1.4-billion propane dehydrogenation and PP complex at Arzew, Algeria, in partnership with Algerias state-owned oil company Sonatrach. The facilities will be designed to produce 600,000 metric tons/year each of propylene and PP. The project is in FEED phase with FID due in 2021.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year.  Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
Author:Margaret Volkova
Tags:PP, PE, PP block copolymer, homopolymer PP, propylene, ethylene, Hanwha Corporation, Total Petrochemicals, Algeria, Russia, France, South Korea.
Category:General News
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