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MOSCOW (MRC) -- Chevron Phillips
Chemical declared force majeure Sept. 1 on its polyethylene (PE) products after
assessing the impact of Hurricane Laura to its Gulf Coast PE operations, the
company said in a letter seen by S&P
Global.
"Unfortunately, it has become apparent that issues arising in
connection with the hurricane and the associated outages have impacted our
planned production and delivery of polyethylene products," CP Chem
stated.
CP Chem operates a 420,000 mt/year high-density polyethylene
(HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker
in Port Arthur.
The company plans to minimize the impact of the event
and return to full PE deliveries as soon as possible, the letter
said.
Although there was no exact recovery timeline, the letter stated
that it's working to evaluate the duration of the interruption.
The
letter follows a group of force majeure declarations by
other petrochemical producers this
week, including Westlake Polymers, Ineos Olefins & Polymers and Sasol, which
are all recovering from widespread power outages and damage from Laura, which
made landfall on Aug. 27.
As MRC informed earlier,
on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day
(bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable
to the community. We are coordinating with local officials, and working to
resolve the issue as soon as possible," the company reported on August,
19.
We remind that US-based Phillips 66 remains open to developing
another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint
venture, the refiner's CEO said in March 2018.
According to MRC's DataScope report,
PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000
tonnes. High density polyethylene (HDPE) accounted for the main decrease in
imports.
Headquartered in San Ramon, California, Chevron Corporation is
the the second-largest integrated energy company in the United States and among
the largest corporations in the world. Chevron is involved in upstream
activities including exploration and production, downstream activities including
refining, marketing and transportation, and advanced energy technology. Chevron
is also invested in power generation and gasification processes. |
