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NOVA Chemicals declares FM on PE supplies from its plants in Canada

May 05/2021

MOSCOW (MRC) -- NOVA Chemicals declared force majeure (FM) on all its polyethylene (PE) resins produced in the Sarnia region of Ontario, Canada, because of mechanical failures, reported S&P Global with reference to the company's letter to its customers as of April 27.

"NOVA Chemicals has experienced a mechanical failure beyond our control at our Corunna ethylene cracker in the Sarnia, ON, region, which supplies ethylene to our polyethylene facilities in that region," it said in the letter.

"As a result of the estimated repair timing and current inventory levels, we must declare a force majeure/excuse for nonperformance event for all polyethylene resins produced in the Sarnia region ... effective April 27, 2021," the letter said.

The FM does not affect any of its other PE products, it said. In addition, the letter stated there is no firm indication as to what extent they would be able to supply for customers during the force majeure.

The PE plants affected include Mooretown high density polyethylene (HDPE) at 210,000 mt/year, Mooretown low density polyethylene (LDPE) capacity at 170,000 mt/year, and St. Clair HDPE capacity at 209,000 mt/year.

As MRC informed before, in late 2013, NOVA Chemicals announced plans to expand ethylene production capacity by 20% at its cracker in Corunna, Ontario, from the capacity of about 839,000 tpy. The expansion was to occur between 2014 and 2018, as part of a wave of expansions and upgrades to NOVA's existing facilities near Sarnia, Ontario.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. LDPE and HDPE shipments increased.  

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.
Author:Margaret Volkova
Tags:PE, LLDPE, propylene, LDPE, HDPE, ethylene, Nova Chemicals, Canada, Russia.
Category:General News
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