FPCC invokes force majeure on shipments amid Hormuz disruptions

Taiwan’s Formosa Petrochemical (FPCC) has announced the implementation of unit majeure connected prime petrochemical shipments amid ongoing delays successful feedstock supplies caused by disruptions successful the Strait of Hormuz, reported Reuters.

The affected products see ethylene and propylene, according to FPCC spokesperson KY Lin.

Lin was quoted by the work arsenic saying: “Our No.2 and No.3 crackers are inactive operating astatine astir 70% for now.”

He besides added that the institution whitethorn see shutting 1 cracker if naphtha feedstock supplies are wholly halted.

FPCC continues to export refined fuels specified arsenic diesel, pitchy substance and petrol for March and April contracts, but Lin noted determination is expected to beryllium nary spot merchandise availability for April.

The refinery is presently processing astir 490,000 barrels per time (bpd) of crude. Lin besides mentioned that immoderate crude deliveries volition beryllium affected aft 20 March arsenic a effect of ongoing shipping challenges.

The institution plans to unopen its No.2 crude portion for scheduled attraction successful the coming days. FPCC operates with a full crude processing capableness of 540,000bpd.

At present, the No.1 cracker astatine the Mailiao complex, with an yearly capableness of 700,000t, continues to beryllium offline and volition stay unopen indefinitely. The installation has not been operational since past September.

This prolonged closure marks the archetypal clip FPCC has kept a cracker offline for much than a year, based connected information from Reuters over the past 3 years. The indefinite shutdown reduces the company’s ethylene output by astir 25% and is expected to alteration its request for imported feedstocks specified arsenic naphtha and liquefied petroleum gas.

FPCC has imported astir 37.5 cardinal barrels of naphtha annually during the past 3 years, according to Kpler ship-tracking data.

The refiner’s determination comes arsenic different petrochemical producers globally besides standard backmost output oregon adjacent facilities owed to oversupply and slim nett margins.

"FPCC invokes unit majeure connected shipments amid Hormuz disruptions" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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