Taiwan's Formosa Petrochemical plans to shut a fluid catalytic cracker (FCC) at its Mailiao complex from mid-August for an extended period after last week's refinery fire.
Its upstream residual desulphurizer (RDS), which supplies low-sulphur residuals to the FCC, will need an extended period for repairs following the 15 July fire. Formosa estimates the shutdown at the RDS could last about half a year.
The company has so far maintained a 90pc operating rate at its two FCCs, each with a nameplate production capacity of 375,000 t/yr of propylene, using residual stocks that will last for another three weeks.
Formosa will cut export volumes by around 30,000 t/month from August onwards to its affiliate company in China's Ningbo that produces polypropylene, acrylic acid and phenol/acetone. These plants require 700,000 t/month of propylene at full capacity with the majority supplied by Formosa from Mailiao.
Formosa will also reduce operations at its Mailiao—based propylene derivative units, including acrylonitrile and n-butanol, to balance out its propylene production losses.
Asia may face a tighter supply balance during August-September with the FCC disruption at Mailiao. Formosa has also scheduled in mid-August for 40 days a turnaround at its No.3 naphtha cracker with 1.2mn t/yr of ethylene and 600,000 t/yr of propylene production capacity.
