Sources say that Shell-CNOOC China's joint venture will close its steam cracker because of disruption in feedstock.
Shell's petrochemical complex in south China, a joint venture with China's CNOOC plans to shut down a steam breaker "soon". It has also informed domestic customers that it is unable to provide certain products.
CNOOC & Shell 'Petrochemicals Company Ltd, or CSPC plans to close a 1.2 metric ton per year (tpy), cracker located?in Huizhou City?of Guangdong Province, one of their two crackers, with a total capacity of 2.2 mtpy due to disruptions of feedstock supplies., the sources stated.
In a letter sent to a local 'customer,' CSPC'said that supplies of polyethylene would be suspended a period not specified?from?March?5 due a "facility shut down", citing Middle East - conflict and feedstock -supplies.
A spokesperson for Shell in China declined to comment. Reporting by Chen Aizhu, Trixie Yap and Ellie Hardcastle.
(source: Reuters)
