Freezing Weather Conditions in the Gulf Coast Suspend Production of Polyolefins
Several Texas-based olefin/polyolefin production facilities shuttered.
Force majeure type actions reportedly are being taken by several major key olefin and polyolefin suppliers due to the unprecedented freezing weather conditions in Texas and other areas of the Gulf Coast, that have led to significant power outages. Health and safety of employees are cited as the primary contributing factor.
At least three suppliers have officially notified customers of such actions, including Formosa Plastics at it Point Comfort, Texas site, which reported that the majoring of its complex has discontinued operations for PE, PP and olefins production.
Both Ineos Olefins & Polymers and LyondellBasell have notified customers of force majeure declarations for PP. An ExxonMobil Chemical source has confirmed that due to the freezing weather conditions coupled by the curtailment of natural gas supplies throughout Texas, the company has safely shut down its Beaumont and Baytown area polyolefin production facilities.
Other suppliers, including Dow, Westlake and CP Chem are reported to have production issues.
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