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India’s Gail shuts PE unit on feedstock gas shortage

  • Märkte: Natural gas, Petrochemicals
  • 25.09.20

India's state-owned polymer producer Gail has shut its 400,000 t/yr linear low-density polyethylene/high-density polyethylene (LLDPE/HDPE) swing unit in Pata in north India's Uttar Pradesh state because of a shortage of feedstock natural gas.

The shutdown comes after a fire hit state-owned ONGC's Hazira gas-processing plant in Gujarat, western India, yesterday. The subsequent closure of the Hazira plant has affected supply of gas to Gail's petrochemical complex.

The LLDPE/HDPE swing unit shutdown from yesterday is expected to last several days, although the exact timeline is unclear.

The Hazira plant is India's largest gas-processing facility and supplies feedstock for Gail's polymer production in Pata.

Gail also operates a 210,000 t/yr LLDPE/HDPE swing unit that uses Nova Chemicals' Sclairtech technology and two 100,000 t/yr HDPE units that employ Mitsui Chemicals' technology at the petrochemical complex in Pata. The affected 400,000 t/yr LLDPE/HDPE swing unit uses Univation technology.

The producer is assessing the impact of the fire at Hazira's gas-processing facilities on its feedstock supply and it is unclear if its other PE units will also be taken off line because of similar issues.

Argus assessed Indian LLDPE film prices stable since 3 September at $870-890/t cfr and HDPE film prices unchanged since 10 September at $900-920/t cfr yesterday.


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